Geo-Strategic Trend - 241. page

China Business Network (CBN) recently reported that the East Asia 10+3 Group (the Association of South East Asian Nations plus China, Japan, and Korea) will establish an organization to run the East Asian Foreign Exchange Reserve. The 10+3 Leaders Conference, held at the end of October, made it clear that this process needs to speed up. The new organization will be called the ASEAN+3 Macroeconomic Research Office (AMRO). The primary mission of AMRO includes: (1) studying regional economics, and (2) clarifying the mechanism behind the usage of the Foreign Exchange Reserve.

It has not yet been decided who will lead this new organization. There have been several rounds of negotiations on the ratio of shares that each of the parties should hold. The primary competition is between China and Japan. Singapore was selected to be site of AMRO’s physical location.

Source: China Business Network, November 17, 2010
http://www.yicai.com/news/2010/11/602258.html

The major agenda of the 2010 APEC CEO Summit held in Japan on November 13 and 14 was to promote the formation of the Free Trade Area of the Asia-Pacific (FTAAP). The final memorandum of the summit included the Pan-Pacific Strategic Economic Partnership Agreement (TPP). TPP was not a hotly followed topic until the U.S. developed its “meticulous involvement.”

The U.S. has strategic intentions for being involved in TPP. On the one hand, the U.S. can use TPP to fulfill its plan for the “Asian Pacific free trade region” and ensure its leading position in free investment in Asian Pacific trade. On the other hand, the U.S. can further expand its goal of having a bilateral trade agreement in East Asia, thus dividing cooperative efforts in East Asia.

Qian Liwei, a scholar at the American Institute of the China Institutes of Contemporary International Relations, told the World News Journal reporter, “With the U.S. returning to Asia, China’s leading regional cooperation in Asia is undoubtedly its biggest threat. Therefore, the U.S. will interfere with the progress of trade in East Asia. It’s like China is a developer while the U.S. is a destroyer. The U.S. wants Japan and some Southeast Asian countries to be on its side, forming a new regional network.”

Source: World News Journal, November 16, 2010
http://gb.cri.cn/27824/2010/11/16/5311s3056805.htm

In an article originally published in Outlook, Liu Jianfei, a professor from the Party School of the Chinese Communist Party, commented that other countries, not even the United States, can replace China’s contribution to the economies of its neighbors. There have been some negative elements among China’s neighboring countries, such as a stronger stance against China in territorial disputes, military drills targeting China, and changes in Japan’s policies towards China. However, Liu stated that China’s neighbors have not fundamentally changed. For example, the negative elements are mostly in the east, while the north, west, and south remain stable. Further, the Sino-Russian relationship has improved. Although there may be some negative changes, they are mostly partial, and not comprehensive. “There are more opportunities than challenges,” concluded Liu.

Source: China News Service, reprint from Outlook, November 15, 2010
http://www.chinanews.com.cn/gn/2010/11-15/2656080.shtml

Yang Ruizong, Beijing Branch Director of the Taiwan Strait Travel and Tourism Association, recently estimated that the total number of Mainland tourists going to Taiwan would exceed one million by November 9, 2010. He also called for improving the quality and safety of tourism. Yang suggested that the number of tourists totaled 606,174 in 2009. If business groups were included, the total travelers reached 970,000 in 2009. By November 4, 2010, the number of tourists alone had already reached 978,660. According to the statistics of the Association, the most popular tourist destinations in 2009 included Taroko National Park, Chiufen, Sun Moon Lake, Alishan National Park, and Taipei National Palace Museum. Yang suggested that Taiwan very much welcomes Mainland tourists.

Source: Xinhua, November 8, 2010
http://news.xinhuanet.com/2010-11/08/c_12751405.htm

On November 11, 2010, the Chinese Defense Minister, Liang Guanglie, met with the Romanian Defense Minister, Gabriel Oprea. Liang suggested that, despite international vicissitudes, since the two countries established diplomatic relations 61 years ago, the China-Romania relationship has never had any problems. Liang thought that relations between the two armies have developed rapidly over the past few years. Frequent contact among high ranking military officers of the two countries has been amiable. Oprea said he expects to expand and deepen the practical cooperation between the two armies in various ways.

Source: China News Service, November 11, 2010
http://www.chinanews.com.cn/gn/2010/11-11/2650497.shtml

Commenting on Obama’s visit to India on November 7, 2010, an article in China Youth Daily said that some Indians want to challenge China, with U.S. backing. The U.S. supports India with economic ties and international diplomacy. Some Indians criticize China for using Pakistan to block India’s rise. They feel that it is the right time for India to challenge China for the leadership of South Asia and even for all of Asia. India is using diplomatic and economic means to win other Asian countries’ friendship in order to counter China’s expansion.

However, the article argued that the U.S. just wants to use India to counter China. The U.S wants itself, not India, to be the leader of Asia. Just like its relationship with Japan, the U.S. will never view India as an equal.

Source: China Youth Daily, November 9, 2010
http://zqb.cyol.com/content/2010-11/09/content_3440306.htm

With the 2010 Asian Games kicking off in Guangzhou, China, on November 7, Beijing is sending the largest team in Chinese history, with a total headcount of 1454. Of the 977 athletes participating, 35 are Olympic champions. The athletes are from 31 provinces all across China. Their average age is 24. 261 of them participated in the Beijing Olympic Games, and 322 of them have participated in international events like the Olympics and the Asian Games before. 

Source: Xinhua, October 26, 2010
http://news.xinhuanet.com/sports/2010-10/26/c_12703055.htm

French Le Figaro and Portuguese LUSA interviewed Chinese President Hu Jintao ahead of his visit to France and Portugal. In discussing how to further advance the strategic partner relationship between China and France, Hu said that China and France have major responsibilities in international affairs: The two countries’ relations should be given a new meaning at a time when the international situation is undergoing profound and complicated changes. …What’s important is that the cooperation from both sides should go beyond the simple trade and investment relationship. They should become equal and collaborative partners, fully utilize Chinese and French cultural advantages to enhance cultural exchanges, strengthen strategic cooperation, and work together to face global challenges.

Source: People’s Daily, November 4, 2010
http://politics.people.com.cn/GB/1024/13126551.html