Chinascope – Page 1090

International Herald Leader: China to Diversify Its Foreign Exchange Reserves

The International Herald Leader, a Xinhua publication, reported that, according to a January 11, 2011, release from the Bank of China, China’s foreign exchange reserves had reached US$2.8473 trillion by the end of 2010, an increase of about US$448.1 billion, or 18%, over the previous year. Reports from September 2010 indicate that about 65% of China’s reserves are in US dollars. In 2010, China was active in acquiring government debts in countries such as Japan, Spain, and South Korea, in anticipation of the depreciation of the U.S. dollar. “If investment in government bonds issued by South Korea and Japan demonstrates China’s short-term investment strategy, the purchase of European government bonds indicates China’s long term strategy.”

Source: International Herald Leader, January 17, 2011
http://news.xinhuanet.com/herald/2011-01/17/c_13694069.htmchina’s

Briefings | | January 27, 2011 | Economy/Resources

China and Russia Held Talks on Global Security

China and Russia held their fifth round of strategic security talks in Moscow on January 24, 2011. Led by State Councilor Dai Bingguo and Russian Security Council Secretary Nikolai Patrushev, the parties discussed the global security situation and their bilateral relationship in depth. The two sides acknowledged that the bilateral relationship has achieved unprecedented progress and has firmly supported each country’s core interests. The parties affirmed that the bilateral consultation mechanism is an important channel to communicate and coordinate on major strategic global issues. The next round of consultation will take place in China in 2011.

Source: Xinhua, January 25, 2011
http://news.xinhuanet.com/2011-01/25/c_121019062.htm

Briefings | | January 27, 2011 | Geo-Strategic Trend

China Signed MOU with Zambia on Press and Publications

On January 25, 2011, Xinhua reported that China signed a memorandum of understanding with Zambia in which the two countries agreed to promote cooperation between their respective media industries. Liu Binjie, Director of the General Administration of Press and Publications, told Zambia Minister of Information and Broadcasting Services, Ronnie Shikapwasha, “Zambia can learn from China’s experience of rapid development in traditional media and new media, and can, through cooperation, accelerate the construction of digital media platforms to achieve a quantum leap in development.”

Source: Xinhua, January 25, 2011
http://news.xinhuanet.com/2011-01/25/c_121019115.htm

Briefings | | January 27, 2011 | Geo-Strategic Trend

China Uses Leaders’ Foreign Visits to Obtain Trade Orders

The China Economy website reported that, “Over the past two months, after China’s leaders visited foreign countries, China signed treaties and contracts worth about US$100 billion.” During Hu Jintao’s visit to the U.S., the Ministry of Commerce sent two delegations, in seven groups, to tour the U.S. China (Ed: which directly or indirectly controls all companies in China) signed 14 bilateral treaties and many commercial contracts. The total amount negotiated in the U.S. amounted to about US$60 billion. Last December, Wen Jiabao brought over 400 businessmen to India and Pakistan, where they signed contracts worth US$20 billion. In early January, Vice Premier Li Keqiang’s visited Spain, Germany, and the U.K., and signed contracts with those countries in the amounts of US$7.5 billion, US$8.7 billion, and US$4.7 billion respectively.

Source: China Economy website, January 24, 2011
http://www.ce.cn/cysc/newmain/yc/jsxw/201101/24/t20110124_20755334.shtml

Briefings | | January 26, 2011 | Government/Politics

Executive VP of Bank of China: Advancing the Renminbi on the World Stage

China Review News published an interview with Xie Yonghai, Executive Vice President of the Bank of China and Chairman of the Hong Kong Chinese Securities Association. Xie stated that, “The current international monetary system based on the U.S. dollar is biased. China, given its present economic wherewithal needs to become a greater international power.” Xie pointed out that getting regional adoption of the renminbi is the key to internationalizing the renminbi. China has signed treaties with countries on renminbi exchange and free trade. Agreements about the regional adoption of the renminbi are being made with countries in Southeast Asia, South Asia, North Asia, and possibly Latin America, where China is working with Brazil and Argentina.

“Hong Kong will play a major role as the off-shore renminbi trading center.” Xie predicts that “within five years, Hong Kong’s renminbi trade volume will reach 8 trillion yuan. By then, the renminbi will become the third most popular currency in the world, after the dollar and the euro, and part of the IMF’s SDR.”

Source: China Review News, January 24, 2011
http://gb.chinareviewnews.com/doc/1015/7/8/1/101578140.html?coluid=10&kindid=253&docid=101578140&mdate=0124002018

Briefings | | January 26, 2011 | Economy/Resources

China Youth Online: China Increases Overseas Acquisitions

The “2011 World Economy Analysis and Forecasts” published a report by the World Economy and Politics Center of the China Social Science Academy. The report noted a rapidly increasing trend, which is that Chinese companies are acquiring more assets overseas. State-Owned-Enterprises (SOEs), including Petro China, Sinopec, CNOOC, the Baosteel Group, and CHALCO, were the leaders in these acquisitions. The sectors most coveted are those in the extraction industry. Chinese companies acquired 91 companies with a value of US$32 billion between 2005 and mid-2010. Chinese companies made purchases in other industries: Geely (automaker) bought Volvo for US$1.8 billion and Sany Group (a machinery manufacturer) built plants in Germany. Morgan Stanley’s report showed that, by the first half of 2010, China became the second largest overseas acquirer of assets after the U.S.

“However, more than 50% of the overseas acquisitions were not successful after the acquisition, i.e., they didn’t generate more money for the parent company.”

Source: China Youth Online, January 24, 2011
http://zqb.cyol.com/html/2011-01/24/nw.D110000zgqnb_20110124_2-10.htm

Briefings | | January 26, 2011 | Economy/Resources

Chinese Online Mapping Site Open for Business

On January 18, 2011, the China State Bureau of Surveying and Mapping released its official online mapping system with the English “Map World.” This project seeks to establish a “Chinese Brand” in the online GIS (Geographic Information System) services field. It is considered part of the “Digital China” initiative. The total amount of data in the system is 30TB, which includes 3 billion “tiles” of digital maps. The Bureau admitted that the Map World system still has problems with access, performance, and stability. It also lacks some “subject information.” Satellite images also have precision and foreign supply issues. The government is determined to firmly promote this system.

Source: Xinhua, January 18, 2011
http://news.xinhuanet.com/2011-01/18/c_12995918.htm

Briefings | | January 25, 2011 | Information/Technology

Ministry of Commerce: Continue Promoting the China Brand

Yao Jian, spokesman for the Chinese Ministry of Commerce, recently commented, in a monthly media briefing, that China must improve its national “soft power.” The commercial video currently playing in Times Square in New York is an example of this effort. The Ministry attempted this once before with another “image building” commercial video called “China Made with the World.” China also tried to promote the “China Brand” at the F1 games. Yao suggested that, in the future, China will use various means to continue the propaganda effort. On April 16, 2010, China rolled out a “Made in China” commercial at F1. At the end of 2009, China also aired another “Made in China” commercial on CNN.

Source: Global Times, January 18, 2011
http://world.huanqiu.com/roll/2011-01/1439440.html

Briefings | | January 25, 2011 | Geo-Strategic Trend

China’s Reaction to Trump’s Election Win

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized