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People’s Daily Warns Google over Its Gmail Hacking Statement

On June 6, 2011, a tough warning appeared in the overseas edition of People’s Daily, rebutting Google’s statement that Chinese hackers may have organized attacks on U.S. and Asian government officials using the company’s Gmail service. “In fact, it is not the first time that Google has defamed China,” the official newspaper said. Such a statement by Google “strongly insinuates [without evidence] that the Chinese government directed the alleged cyber attacks. As such, for Google to point to China is baseless, with ulterior motives and sinister intent.” People’s Daily further states that Google has fallen into the role of a political tool to vilify others, and warns, “The market may abandon Google and it may become a political victim once the political climate changes.”

Source: People’s Daily, June 6, 2011
http://world.people.com.cn/GB/14837225.html

Red Flag Manuscript: The U.S. Exports Inflation and Political Instability

A researcher on Marxism from the Chinese Academy of Social Sciences wrote an article for Red Flag Manuscript that was the reprinted in Qiushi (both are leading Communist Party publications). The researcher asserted that United States monetary policy “is causing global inflation and leading to political instability” to its own advantage. “In the past two years, food and fuel prices in many countries rose enormously. As the expenditures for the consumption of food and fuel account for a greater share in developing countries, the Federal Reserve’s expansionist monetary policy inevitably has a great impact on developing countries. Volatile international situations stimulate risk aversion and are conducive to maintaining the U.S. dollar’s hegemony.” According to the Red Flag article, that is the reason that, on the one hand, the U.S. is actively exporting its expansionist monetary policy and inflation, and, on the other, is trying to shift off its losses in the financial crisis by promoting "universal values” and exporting color revolutions and political turmoil.

Source: Red Flag Manuscript, reprinted by Qiushi, June 7, 2011
http://www.qstheory.cn/hqwg/2011/201111/201106/t20110607_85300.htm

China Shuts Down 55 Websites

China Internet Network Information Center (CINIC) recently shut down 55 websites that “engage in illegal online promotions.” The operation was based on public tip-offs sent to the China Internet Illegal Information Reporting Centre (CIIRC), a self-claimed non-governmental organization that lists “receiving public reports and complaints about illegal and harmful information on the Internet within the border of China” as one of its key functions. 

The is part of a two-month campaign that the State Internet Information Office, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Administration for Industry and Commerce launched jointly in mid April. The CINIC spokesperson describes “illegal online promotion” as “using improper means against competitors, distorting or fabricating facts for extortion, sensationalizing hot topics to hype up online public opinion, engaging in private transactions to seek illegal profit, causing serious damage to the online environment and the market economy, harming the public interest, and receiving strong dissatisfaction from the people.” 
The Xinhua report lists the names of the websites; some carry the word Weiquan, or civil rights.

Source: Xinhua, June 7, 2011
http://news.xinhuanet.com/2011-06/07/c_121504947.htm

China’s Land Purchases in Brazil

The cheap land in Brazil has attracted massive investment from foreign individuals and companies, including Chinese. By October 2010, China’s state-run Chongqing Grain Group Co., Ltd. had developed 800,000 mu (131,790 acres) of soybean plantation farmland in Brazil. It plans to reclaim one million mu (164,736 acres) more farmland, for a total investment of over 5 billion Chinese yuan (US$771 million), making Brazil China’s largest overseas soybean oil production base. In addition, Zhejiang Province’s Fudi Agricultural Co., Ltd. has invested 200 million yuan (US$31 million) in the purchase of 16,800 hectare of Brazilian land for a soybean plantation. Meanwhile, China National Cereals, Oils and Foodstuffs Corporation (COFCO), China’s largest state-owned food giant, has also shown interest. 

Ye Anping, an official from China’s Ministry of Agriculture, denied that the purchase is a land grab. “Local business enterprises’ land purchases overseas have nothing to do with the policies of the Ministry of Agriculture,” said Ye. At the same time, the Brazilian Embassy in China stated, “We welcome Chinese investment in Brazil.”

Source: China Review News, June 6, 2011
http://gb.chinareviewnews.com/crn-webapp/doc/docDetailCreate.jsp?coluid=10&kindid=255&docid=101722385&mdate=0606122946

China Rejects Accusation of Violating the Philippines’ Jurisdiction in the South China Sea

On June 7, 2011, Chinese Foreign Ministry spokesman Hong Lei refuted the Philippines’ accusation that Chinese vessels were increasing their activities in the South China Sea and violating the Philippines’ sovereignty. Hong said, “For Chinese vessels to cruise and carry out scientific studies in waters under China’s jurisdiction was proper and legal. China does not accept the Philippines’ groundless accusations.” “China urges that the Philippines stop unilateral actions that harm China’s sovereignty and maritime rights and interests, broadening and complicating the South China Sea disputes, and that the Philippines no longer make irresponsible remarks that do not tally with the facts.”

Source: Xinhua, June 7, 2011
http://news.xinhuanet.com/2011-06/07/c_121505087.htm

PLA and Indonesia Joint Anti-Terrorist Drill

According to Xinhua, on June 6, 2011, in Bandung, Indonesia, China’s People’s Liberation Army (PLA) joined Indonesia’s National Armed Forces (TNI) to conduct a joint special forces drill “Sharp Blade 2011.” The event, the first one in history between the PLA and TNI, is expected to “further consolidate the friendship between the PLA and TNI, improve bilateral mutual understanding and trust, promote pragmatic exchanges and cooperation between the two armies, and enhance the capacity for anti-terrorism.” Sixty-nine commanders and soldiers from the PLA will join all three phases of the training: exchange and exhibition, the composite formation training, and the comprehensive exercise. They will join their counterpart in TNI in an exercise where the background is an assumption that a terrorist organization causes panic by seizing hostages. Zhao Zongqi, Chief of staff of the Jinan Military Region, and Lodewijk F. Paulus, Indonesian TNI special force commander, attended the opening ceremony.

Source: Xinhua, June 6, 2011 
http://news.xinhuanet.com/2011-06/06/c_121500365.htm

China Daily: Google’s Political Farce

In response to Google’s accusations of recent attacks from China’s Jinan City against Gmail users in the U.S. government and elsewhere, the state-run China Daily published an opinion article, “Google’s Political Farce.”

The article says, “This time Google is playing its old tricks at a time when the U.S. government and the public are making a great whoop on the issue of the Internet. One is led to believe that Google has attempted to play a role in a political farce.” Then it goes on to list figures to show that China has also suffered from hackers’ attacks, coming mainly from the U.S. 
“Therefore, if Google has really suffered from ‘Chinese hackers’ attacks,’ it could resort to the judicial cooperation mechanism between China and the U.S. to find solutions. Google, ignores this effective channel, but is ‘loudly shouting’ without offering any evidence. It will only make people believe that Google is not seeking a solution, but has ulterior motives.”
Source: China Daily, June 5, 2011 
http://www.chinadaily.com.cn/hqzx/2011-06/05/content_12643066.htm

Officials Investigated Due to Economic Data Leaks

Radio France International (RFI) reported that multiple Chinese officials have recently been asked to leave their posts in the National Bureau of Statistics and the central bank. The rankings of those sacked are mostly at the bureau-level, but the nature of their work allows access to sensitive economic data. The central government recently noticed frequent leaks of macroeconomic data just before its public announcement. 

As China is the world’s second largest economy, publicly released economic data has an enormous influence on the global financial market. It thus becomes the pursuit of the media and financial agencies. In recent years, the mainland’s macroeconomic data, such as the consumer price index published by the National Bureau of Statistics, is often accurately “predicted” and foreign media and security brokerage firms release it in advance. The domestic stock markets have also reacted before the official releases. 

The responsibilities of involved stock brokerage firms are still being determined. Criminal investigations are under way.

Source: Radio France International, June 4, 2011
http://tinyurl.com/4xnxxzy