During his visit in Poland, Chinese Foreign Minister Yang Jiechi told the media that China pays close attention to the sovereign debt crisis in Europe. China supports the measures that the European Union and the International Monetary Fund have taken to stabilize the situation. “China continues to have confidence in the Euro zone and the Euro. In recent years, China has increased its holdings of Euro bonds.” Yang said that China will continue to support Europe and the Euro.

Yang also hoped that “the United States adopt a responsible monetary policy,” and that “the U.S. implement practical measures to insure the safety of other countries’ assets in the U.S.”

Source: China News Service, August 5, 2011
http://www.chinanews.com/gn/2011/08-05/3236891.shtml

Xinhua published an article by a scholar from Xiamen University, stating that China should not promise to give up the use of force in the South China Sea conflict. The article says, “The essence of the Philippines and Vietnam asking to sign a binding document with China through ASEAN on peaceful actions on the South China Sea issue is that they are attempting to force China to acknowledge their occupation of the South China Sea islands … and to nullify China’s ability to use armed force.” The article claims, “For a long time, China adopted a friendly policy toward its neighbors so as to win time for its economic development. However, in the South China Sea conflict, there is no win-win outcome. China must be prepared for military action. China is the party whose sovereign rights are violated. If China unilaterally promises to solve the conflict only through peaceful means, it will … allow the de facto occupation of the South China Sea islands by the Philippines and Vietnam. The Philippines and Vietnam will not need to worry about being attacked by armed force. Considering the arrogant attitude of the Philippines and Vietnam, the possibility of regaining the occupied islands in the South China Sea through peaceful means is quite minimal.”

Source: Xinhua, August 3, 2011
http://news.xinhuanet.com/mil/2011-08/03/c_121762183.htm

Xinhua published a commentary blasting Japan’s newly published defense white paper. The article says, “The 2011 defense white paper that the Japanese government released … extensively describes China’s military force in large volumes and even fans the flames to stir up a tense atmosphere. The Japanese action severely damages Sino-Japanese relations.” “This year’s defense white paper not only makes irresponsible remarks about China’s normal development of its national defense but also incites dissension and transmits aggressive and invasive intentions in the text.” “Additionally, what’s ‘new’ in the white paper is the claim that China is starting to show a ‘forceful manner,’ while Japan is starting to display a posture of ‘caring for’ its neighbors.”

The article further states that there are two reasons for Japan to make such comments in the white paper. “First, Japan has been constrained by a cold war mentality for a long time; trapped in the Japan-U.S. ally’s mythology; and embedded in a milieu of ‘China threat’ and ‘containing China.’ Second, Japan has a strong invasive desire to get rid of the restrictions on its defense policy that its peace constitution imposed after the war (World War II).”

Source: Xinhua, August 4, 2011
http://news.xinhuanet.com/mil/2011-08/04/c_121809765.htm