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China Review News: American Presence Impacts Sino-US Relations

On December 29, 2010, China Review News published an article titled “American Presence Impacts Sino-US Relations,” stating that the U.S. intention in returning to Asia is to be on guard against and contain China.

According to the article, on the one hand, Asia-Pacific countries are afraid of “Sino-US joint rule.” On the other hand, they do not really want to see a confrontation or even a war between China and the U.S. They would like to see a re-balancing of Sino-US relations, which would make Sino-US relations more complicated. “However, the U.S. and China still share common interests and a willingness to cooperate. In this sense, China should be more proactive in guiding Sino-US relations, prompting China and the United States to find more appropriate and comfortable ways to cooperate in the course of global and regional structural adjustments.”

Source: China Review News, December 29, 2010
http://gb.chinareviewnews.com/doc/1015/5/3/3/101553322.html?coluid=148&kindid=0&docid=101553322&mdate=1229002330

Red Flag Manuscript: Who Is Challenging Western Liberalism?

[Editor’s Note: In this Red Flag Manuscript article, Dou Hanzhang, an Internet commentator at Xinhua Net, expresses his aversion to Western liberalism: “Behind its beautiful words lies a horrific dark side. It can bring injustice, evil, and war.” He admires Singapore’s authoritarian society as China’s role model and cites Singapore’s Prime Minister Lee Hsien Loong: “We preach state supremacy. Our national interests are not only above individual interests. They are also above the interests of any social group.”

In his opinion, the economic success of China and Singapore proves that “Western liberalism is replaceable and unnecessary.” His viewpoints echo the Party line. One Chinese blogger calls him “a 50-cent Party member on regular payroll.”

(The 50-cent Party refers to “fans” of the Communist Party hired to propagate pro government views on the Internet. They get paid about 50 cents (Chinese RMB) for each posting.)

The following is a translation of excerpts from the article] [1]

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International Herald Leader: China’s Foreign Diplomacy Should Reflect Its World Number Two Status

[Editor’s Note: The International Herald Leader published an interview with Yan Xuetong, Dean of the Institute of Contemporary International Relations, Tsinghua University, and one of China’s leading scholars on international relations. In a March interview with the International Herald Leader, Yan made the statement that “the Sino-U.S. relationship is more one of enemies than of friends.”

In this interview, Yan argued that China’s foreign policy should reflect its status as the “number two power in the world.” He outlined three principles to guide China’s foreign policy: 1. Change the focus from economic development to rejuvenating the nation; 2. Change from maintaining a low profile to being a responsible great power; 3. Strategically improve China’s international reputation instead of focusing on a peaceful environment for economic development.] [1]

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Scholar: Government Is a Black Hole That Sucks Up Wealth

Sun Liping, a sociology professor at Tsinghua University, stated that there is an enormous black hole in Chinese society that sucks up wealth. According to Sun, “The crux of the problem is that an enormous black hole has formed in society, and it is sucking up wealth. The black hole absorbs a considerable part of the achievements in social development, leaving a very limited share for the people. Within this limited share, improving one part will hurt another part. There is limited space." How big is the black hole? According to Professor Sun, in 2009 the government raked in, using various means, fiscal revenue of 11,500 bn yuan, about one-third of the GDP.

Source: China Securities Journal reprinted at Soho.com, November 1, 2010
http://business.sohu.com/20101101/n276881426.shtml

Study Times: Overseas Expansion of the Party

Study Times published an article by the Party Committee of the China Civil Engineering Construction Corporation (CCECC) about its practice of maintaining Party control over China’s overseas businesses. The operation of expanding the Party overseas involves following these businesses. “Where there are people, there are Party organizations and Party activities.” “These overseas Party organizations are under the CCECC Party Committee, while accepting the leadership and administration of the Party Committees at our embassies and consulates. … Currently, the overseas offices of the CCECC have formed, horizontally and vertically, a complete Party organization system with 100% coverage.”

Source: Study Times, December 27, 2010
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2010/12/27/08/08_13.htm

Liang Guanglie: Wars Are Unlikely, but Military Friction Can’t Be Excluded

On December 29, 2010, People’s Daily published a December interview of Liang Guanglie, China’s Defense Minister. Li stated in the interview, “Looking at the current world situation, a full-scale war is unlikely, but we cannot exclude the possibility that, in some local areas, unexpected events may occur, or military friction may take place due to a ‘misfire.’” He indicated that, of all the military forces, the navy, air force, and second artillery corps make up a large and growing percentage, while the army is on the decline; that 80% of the officers now have college degrees; and that a modern weaponry system dominated by second generation equipment, with third generation equipment as the backbone has preliminarily been established.

Source: People’s Daily, December 29, 2010
http://paper.people.com.cn/rmrbhwb/html/2010-12/29/content_711023.htm?div=-1

Researcher Suggests Trading in Yuan in Southeast Asia

Yin Jianfeng, Director of the Financial Research Center, Institute of Finance and Banking, Chinese Academy of Social Science, stated that China should avoid the Japanese yen’s mistake when pushing the yuan as an international foreign exchange reserve. Yin argued that the yen failed as an international currency due to Japan’s weak financial system, its high domestic savings rate, and the lack of an offshore trading center.

To push the yuan to go worldwide, Yin suggested using Asian countries, excluding Japan, to break into the international market, since China’s trade with these countries accounts for nearly 50% of its imports and 38% of its exports. “Hong Kong should be the yuan’s offshore international financial center.” “Trade in yuan should first start in Southeast Asia, with Hong Kong as the Southeast Asia yuan investment and trade center.”  

Source: Xinhua, December 20, 2010
http://news.xinhuanet.com/2010-12/20/c_12900744.htm

China’s Government Think Tanks Debate Foreign Policy

On December 21, 2010, the Institute of Asia-Pacific Studies, Chinese Academy of Social Science, published its “2010: Evaluation of China’s Security Situation.” The report stated, “In 2010, China faced intensified security pressure from its neighboring countries and deteriorating relationships with its neighbors.”

Recently China’s government think tanks have been debating the direction of China’s foreign policy. The International Herald Leader reported on a forum held to discuss the security report. Participants expressed two opposing views:

1.  “China should learn how to reduce it neighbors’ fears and worries concerning China’s rise. In other words, make more friends and create zero or few enemies.”

2. “China should learn from Russia. It initially took a soft foreign policy approach, but the Western world’s continued interaction with its neighbors became a threat. After Russia showed its determination to safeguard its interests, [Ed: sending troops to Georgia], the situation stabilized.”

Source: International Herald Leader, December 24, 2010
http://news.xinhuanet.com/herald/2010-12/24/c_13663115.htm