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Global Times: ZTE Faces U.S. Sanctions

Global Times recently reported that the U.S. Department of Commerce sanctioned ZTE, a major Chinese multinational telecommunications equipment and systems company. ZTE’s U.S. suppliers are not allowed to export to ZTE. The sanction was based on ZTE’s violation of the U.S. export control policies against Iran. According to U.S. Department of Commerce investigations, ZTE signed multi-million-dollar contracts with Iran reselling well-known U.S. products from Microsoft, IBM, HP, Oracle and Dell. The U.S. vendors claimed that they were not aware of these deals that violated the U.S. ban on exporting to Iran. ZTE announced four years ago that it would “limit” its relationship with Iran. According to recent media reports, the U.S. Department of Commerce obtained ZTE internal top secret documents which proposed a “break-through” plan and recommendations from ZTE’s legal department on setting up “shell companies” with no ZTE branding to conduct business with Iran. The ZTE Chairman commented that the U.S. investigation was “unfair.” Some Chinese analysts expressed the belief that ZTE is just another victim of the political games among countries.
Source: Global Times, March 7, 2016
http://finance.huanqiu.com/roll/2016-03/8665052.html
Briefings | | |   US-China Relations

Global Times: David Shambaugh Praised Xi Jinping

A year ago, the Wall Street Journal published an article by the renowned American Chinese expert, David Shambaugh, "The Coming Chinese Crackup," in which he stated that the regime under Xi Jinping was going south.

On March 1, Global Times published an exclusive report on the dialogue between Shambaugh and Wang Wen, Executive Director of the Chongyang Finance Institute of Renmin University of China. Shambaugh was much more positive about Xi Jinping.

According to Shambaugh, "In the past year, because of that article, many Chinese friends no longer treated me as an ‘old friend.’ Many Chinese media criticized me. No one invited me to visit China. All of these things upset me. … The title of that article was problematic. It was not from me, but the editor of the Wall Street Journal. They wanted to attract more readers’ eyeballs and create more profit for the newspaper. When I heard the title, I asked them to change it. They replied, ‘Sorry, David. It is too late, we’ve already gone to print.’"

"Another issue was the anti-corruption campaign. I have stated clearly that anti-corruption is good. I am all for it. It is the right thing to do and the public has received it very well. I give a thumbs up to Xi Jinping and Wang Qishan’s anti-corruption fight. Corruption is the cancer that erodes the Party, the government, the economy, and society. It must be taken care of; otherwise it will lead to the downfall of the Chinese Communist Party (CCP)."

"The future reform in China should be reform of the structure, not like what China did 30 years ago. It is no longer an adjustment; rather, it is a systemic reform. For example, the financial area needs a thorough reform. However, there are quite a few people who feel that their interests have been impacted [and therefore, they resist it]. So, I agree, China’s reform needs the present strong leader."

Sources:
1. Global Times Online, March 1, 2016
http://world.huanqiu.com/exclusive/2016-03/8628170.html
2. Wall Street Journal Online, March 6, 2015
http://www.wsj.com/articles/the-coming-chinese-crack-up-1425659198

Briefings | | |   US-China Relations

Huanqiu: Hong Kong Independence Backed by International Anti-China Forces and Financiers

The Chinese government’s mouthpiece Huanqiu issued a commentary which discussed the court trial of three leaders of the 2014 pro-democracy Umbrella Movement in Hong Kong: Joshua Wong, Alex Chow, and Nathan Law. The charges include inciting others to join an unlawful assembly and taking part in an unlawful assembly.
The commentary referred to the Occupy Central movement as a radical movement; it linked it to the clashes between the police and protesters earlier this year in the Mong Kok district. “The serious bloodshed in Mong Kok on Chinese New Year’s Day this year was the consequence of the ‘Occupy Central’ movement. The event escalated from demonstrations to riots that included brick throwing, arson, car burning, and even club fighting, deliberately endangering the personal safety of front line police officers.”
Huanqiu quoted a member of the Beijing based Chinese Association of Hong Kong & Macao Studies, “Hong Kong is not America’s backyard; Hong Kong affairs are China’s internal affair; and the United States has absolutely no voice.” “If the U.S. attempts to intervene in Hong Kong affairs, there is a suspicion that it has contempt for the Hong Kong courts. The fact that these few defendants could actually get U.S. Congress involved shows that their relationship with the U.S. is not simple. Hong Kong should be wary of outside interference. Black financiers are fostering spokespersons by making investments behind the scenes.”
The comments about “U.S. interference” likely refer to an earlier statement issued by the U.S. Congressional-Executive Commission on China, “CECC Chairs Troubled by Recent Developments in Hong Kong; Say Trial of Joshua Wong and Fellow Protesters Will be Important Bellwether.” The comment continued, "The ‘Hong Kong independence’ can be traced back to the international anti-China hostile forces. By means of education during the British Hong Kong, religion, and the poitical propaganda backed by the so-called core values of Western democracy, they are exerting a subtle influence with the minds of the younger generation."
Source: Huanqiu, March 1, 2016
http://msn.huanqiu.com/mil/observation/2016-03/8628798.html
Briefings | | |   US-China Relations

BBC Chinese: The U.S. Condemned China on Human Rights Lawyer Case

BBC Chinese recently reported that the United States government officially condemned the Chinese authorities for forcing human rights lawyer Zhang Kai to “plead guilty” on national TV. The U.S. pointed out that this move was against legal principles and was against China’s own constitution. Washington also urged China to take immediate action to release the lawyer and the Christians who had been arrested. Human rights lawyer Zhang Kai defended the Christians in Zhejiang Province who had joined the movement to prevent the local authorities from demolishing crosses. In 2014 and 2015, the Zhejiang government removed over 1,300 crosses and demolished over 20 churches. In the same period, they detained over 500 Christians. The Chinese authorities accused Zhang Kai of organizing several recent “illegal religious gatherings.” They arrested Zhang and forced him to “plead guilty” on national public television.
Source: BBC Chinese, February 27, 2016
http://www.bbc.com/zhongwen/simp/china/2016/02/160227_china_church_us_condemn
Briefings | | |   US-China Relations

Xinhua: The U.S. Is the Thief Crying about Theft in the South China Sea

Xinhua recently published a commentary responding to the U.S. accusation about China’s militarization of the South China Sea. The United States mentioned several times recently that China has been deploying missiles on the Island of Yongxing. However, the commentary referred to an old Chinese saying to describe the U.S. as “the thief crying about theft,” meaning the United States has been the one frequently patrolling the region with its military forces. In the past year, the United States sent the P8 reconnaissance aircraft, B52 bombers, the USS Lassen Aegis destroyer, and the USS Curtis Wilbur missile destroyer to the South China Sea. The author expressed the belief that, if there is anyone who is militarizing the South China Sea and is exacerbating regional tensions, it is the United States. The commentary questioned the U.S. by asking why the U.S. has to send military vessels to the South China Sea instead of business vessels if the right the U.S. is trying to exercise is just freedom of navigation? The article ended with a call for an immediate stop to the U.S. saga of “muddying the waters.”
Source: Xinhua, February 19, 2016
http://news.xinhuanet.com/politics/2016-02/19/c_1118102857.htm
Briefings | | |   US-China Relations

BBC Chinese: U.S.-Korean Missile Defense System Threatens China

BBC Chinese recently reported that Wang Yi, China’s Minister of Foreign Affairs, urged the United States to give up its plan to deploy a missile defense system in South Korea. Wang suggested that the system would be a “threat” to China’s national security and it would be “way beyond the need” for defending South Korea. After North Korea’s long range missile test earlier this month, the United States and South Korea announced a joint plan to deploy the U.S. Terminal High Altitude Area Defense (THAAD) system. Both China and Russia complained some time back that the THAAD radar system can penetrate deep into the two countries. The U.S. and South Korea said the the purpose of the THAAD system is to protect South Korea from the threat of the North. It is not against China or any other countries. However, Wang insisted that the United States should reconsider the decision since the THAAD coverage is very wide and even “an average person” can tell that the system does more than just protect South Korea. 
Source: BBC Chinese, February 12, 2016
http://www.bbc.com/zhongwen/simp/world/2016/02/160212_us_skorea_china_missile
Briefings | | |   US-China Relations

AmCham China Released 2016 Business Climate Survey

The American Chamber of Commerce (AmCham) in China recently released its official annual report of its survey results on the Chinese business climate. The report showed that most of the American companies in China felt their popularity had declined. Only 64 percent of the surveyed member companies reported a profit in 2015, which is the lowest point in five years. Nearly half of the industrial and resource oriented companies reported a decline in profits. Many member companies complained that the regulatory environment remained a challenge. The same laws and rules have been applied differently from time to time and from region to region. Transparency, predictability, and the fairness of the regulations are issues that the companies surveyed value very highly. On the positive side, corruption is no longer among the top five biggest challenges of doing business in China. Around a quarter of the companies admitted that they moved some of their manufacturing capacity out of China. 
Source: AmCham China Official Website, January 20, 2016
http://www.amchamchina.org/about/press-center/amcham-statement/2016BCSCNNEW
Briefings | | |   US-China Relations

Wang Xiangsui: The U.S. Wants to Be the “World Policeman” with Little Liability, Cost, or Criticism

Following U.S. President Barack Obama’s last State of the Union Address, Xinhua interviewed Wang Xiangsui, a Professor at the Beijing University of Aeronautics and Astronautics and Director of the Center for Strategic Studies. Wang thought that the content of Obama’s speech was hollow. Some of the achievements Obama listed could not stand up to detailed scrutiny. America’s China policy will mostly maintain the status quo. Below are some excerpts from the interview: 

Xinhua: On the diplomatic front, Obama listed the "return to Asia," the TPP," the Iran nuclear deal, and the normalization of the United States and Cuba’s relations as part of his performance report. The U.S. media commented that these diplomatic projects may end up being aborted projects. What’s your opinion on these issues? 
Wang Xiangsui: Obama’s list of these diplomatic achievements is very hollow. The reason is that, in the end, whether they are his diplomatic legacy or are remaining issues is still worthy of further discussion. Among his list of those deeds, he has not necessarily achieved any tangible results. For example, on the issue of "returning to Asia," is it an achievement or, ultimately, will is still be a problem? In the past, the Asia-Pacific was only one of the global areas where the U.S. had interests. After its strategic move eastward, it became apparent that whatever global imperial power the United States has is shrinking. Therefore, it is too early to conclude right now whether the "Asia-Pacific rebalancing" will be an example of the success of this strategy. Even whether this strategy is a right one for the United States is debatable. 
The same is also true for the TPP. In October 2015, the governments of the United States and 11 other countries signed the TPP agreement. For it to be implemented, the agreement still needs for all of their Congrsses to passed it. Even if all these countries do give a green light to the TPP agreement, whether the TPP will fulfill its expected role is still unknown. The era in which the United States had the final say over the rules of the Asia-Pacific region is already long gone. It is also unrealistic for the TPP countries to completely exclude outsiders. 
Xinhua: Obama proposed four major problems for the U.S. to solve. One of these is how to protect U.S. security and lead the world but, at the same time, also avoid being the "world’s policeman." How do you see it? Does it mean the United States will reduce its efforts in international affairs? 
Wang Xiangsui: The Iraq war was a turning point. America’s national strength and its intervention style in international affairs do not support the U.S. in continuing to intervene everywhere as the "world’s policeman." 

What the United States wants is to be the "world’s policeman," but with relatively limited liability, relatively low capital costs, and very little criticism. For example, it might create more "police branches" on a global scale, with "regional police" to play a bigger role. This also reflects, from another angle, that American power is in gradual decline and it is no longer suitable for it to take as much direct intervention in the world as it did in the past. 

Source: Xinhua, January 15, 2016 
http://news.xinhuanet.com/world/2016-01/15/c_128629495.htm

Briefings | | |   US-China Relations