Geo-Strategic Trend - 254. page

Xinhua reported that some Indian hawks believe that exaggerating “China threat theory” promotes India’s military expansion to be “prepared (for the clash with China).” Xinhua further commented “However, it is completely India’s choice if it wants to put more resources into building ‘cannons’ instead of manufacturing ‘butter.’ … If India still thinks that it needs to create something to justify its decision, it shows that India still lacks the confidence that a strong country should have.”

Source: Xinhua, Aug 3, 2009
http://news.xinhuanet.com/world/2009-08/03/content_11816190.htm

The Hong Kong Regional branch of the China Peaceful Reunification Association was formed on July 30. At the ceremony at the Hong Kong Convention Center, Du Qinglin, Minister of the United Front Work Department of CPC Central Committee, said the Hong Kong Association will build a bridge to promote exchange between the two sides (China and Taiwan); firmly defend national unification and territorial integrity; continuously expand the force to promote reunification and prevent (Taiwan’s) independence.

The President of the Hong Kong Regional Association, Gao Jingde, outlined three areas for the association to focus on: 1. Actively connect with the organizations and individuals in Hong Kong, Taiwan, and overseas to form a peaceful reunification force; 2. Promote trade and exchange of culture, education, technology, media, sports, and tourism; 3. Conduct real and good work for a peaceful relationship between the two sides.

Source: United Front Work Department of CPC Central Committee
http://www.zytzb.org.cn/zytzbwz/newscenter/benwang/200907/t20090731_567248.htm

From July 22 to 25, Deputy Minister Gao Hucheng led a Chinese Commerce and Trade Group to visit Moscow to discuss Russia’s closure of the Moscow market that many Chinese merchants used for small commodity trades. In June, the Russian authorities claimed that the Chinese merchandise did not go properly through Russian customs, so they suddenly closed the market and confiscated over over 15 billion yuan of goods, leaving more than 60,000 Chinese merchants with nothing.

After the negotations, China and Russia reached agreement on three points: 1. Both sides will further develop the strategic partnership with each other. 2. Both sides will further develop the commerce and trade between each other. 3. Both sides will resolve the closure of the large commodity market through friendly negotiation.

Ed – The Chinese merchants imported their goods into Russia through "gray customs," using the common practice of bribing Russian customs officials. There is no material result in the agreement that would help the merchants to get back their confiscated goods.

Source: Embassy of China in Russia
http://ru.china-embassy.org/chn/sgxw/t575204.htm

In its military forum, Global Times, a state newspaper under People’s Daily, published the translation of a South China Morning Post article calling the Russian-China relationship a marriage of convenience. The July 25 SCMP article quoted Andrei Pinkov, editor-in-chief of Kanwa Defense Review, as saying that the relationship between Russia and China is nothing but a marriage of convenience with no solid foundation, in spite of their common interests. "China and Russia will not form the kind of close alliance that the US enjoys with Japan and Australia because Moscow feels uneasy about the rise of China… Some people in Moscow are worried that China may mass-produce Russian weapons." The SCMP also quoted from a military expert in Shanghai that, for the same reason, "the Shanghai Cooperation Organization will not be another NATO."

Source: Global Times, July 27, 2009
http://mil.huanqiu.com/Observation/2009-07/527747.html

Regarding internantional questions of whether China had been enforcing the economic punishment of North Korea according to UN Security Council resolution 1874, China News Agency countered that the reasons of the development of the North Korea issue up to today are comprehensive. It is completely irresponsible to pass the buck to China. According to Chinese experts’ opinions, when China tried to resolve the situation, some countries played a contrary role. “For the situation in North Korea to come to today’s point, the United States has certain responsibilities. Japan announced that North Korea is a hostile country… The Japanese media highly exaggerated the ‘North Korea threat theory.’… Since Lee Myung-Bak, President of South Korea, took office, he has taken a hard-line policy on North Korea… These factors have led to the deterioration of the situation on the Korean Peninsula.” 

Source: China News Agency, June 26, 2009
http://www.chinanews.com.cn/gj/gj-fxpl/news/2009/06-26/1751297.shtml

2009 sees a bigger role for the United States in the South China Sea, said Xinhua. “Vietnam, the Philippines, Malaysia and other countries now view foreign military procurement as a shortcut to quickly upgrading their sea and air combat capability. In 2009 the neighboring countries in the South China Sea have changed their strategy to procure high-performance conventional submarines, long-range fighters, advanced surface ships and other heavy equipment.” As Southeast Asian countries have spoken about opposing China with the help of the United States, "the United States is stepping from ‘behind the scene’ to the ‘front stage’ in the South China Sea."

Source: Xinhua, July 3, 2009
http://news.xinhuanet.com/herald/2009-07/03/content_11644872.htm

China has major strategic interests in the Arctic region and should secure the Arctic’s resources, said Outlook Weekly. “The Arctic has an important impact on temperature and precipitation in China.” “Use of the Arctic waterways for Chinese fleets would shorten the voyage by 40% compared to the current routes through the Suez Canal and the Panama Canal that are plagued with security risks, high cost and schedule delays.” “China should invest in the development of or otherwise secure the Arctic’s resources.”

Source: Outlook Weekly, Issue 27, 2009
http://lw.xinhuanet.com/htm/content_4882.htm

Global Times reported that China National Petroleum Corp and BP jointly won the bidding for the al-Rumeila oil field contract in Iraq. “Despite earning only two U.S. dollars a barrel and facing various risks, China’s oil companies need to get a firm foothold in Iraq as soon as possible and increase their market share of oil and gas exploitation. Income and profit margin are secondary factors.”

Source: Global Times, July 2, 2009
http://finance.huanqiu.com/roll/2009-07/503661.html