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PLA Admiral: Diplomacy Using Incentives and Penalties

Yang Yi, Admiral of the People’s Liberation Army, discussed different means available for Chinese diplomacy. According to his article, there are three major conflicts that China faces. One is the conflict between Chinese-style socialism and the Western cold war mentality; two is resistance to a rising China by monopolistic countries trying to restrain China; and three is conflicts between the accelerated development of China and the interests of other developing countries.

In his opinion, whether the three conflicts can be resolved is the key to China’s ability to maintain stability and to avoid military conflicts. Yang recommends a balanced diplomacy consisting of full participation in international affairs to influence direction, prompt responses without following others, and proactively changing the "rules of the game" by applying incentives and penalties, i.e. using the carrot and stick approach.

Source: Huanqiu, July 28, 2010
http://opinion.huanqiu.com/roll/2010-07/964371.html

Huanqiu: Be Wary of U.S. Moves in East Asia

Huanqiu published that the United States is “quietly moving” to solidify its influence in Southeast Asia using different tactics. The activities, Huanqiu speculated, include trips to Asia by U.S. officials and U.S. scholars, conferences in Asia on economic partnerships and maritime law, as well as visits to China by U.S. scholars. These covert activities provide the base for future actions as well as intelligence support to its policies and open actions, aiming to cut into East Asia for control when the time is ripe. Professor Su Hao, China Foreign Affairs University, affiliated with the Ministry of Foreign Affairs, wrote the article.

Source: Huanqiu, July 21, 2010
http://opinion.huanqiu.com/roll/2010-07/945457.html

Xinhua: Guard Against Foreign Forces in South China Sea

Xinhua published an editorial critical of U.S. Secretary of State Clinton’s remarks at the ASEAN Regional Forum Foreign Ministers Meeting about U.S. interests regarding the disputed South China Sea Islands.  

“These remarks show the interest by foreign forces in intervening in the South China Sea. The underlying motives and the possible impact thereof are worth our attention and alert (toward) the neighboring countries in the South China Sea.”

The editorial warns that whenever there are territorial disputes, western forces will first incite discord in the region and then pose as arbitrators to divide and rule the disputing countries.

Source: Xinhua, July 27, 2010
http://news.xinhuanet.com/2010-07/27/c_12379898.htm

Beijing Think Tank: U.S. Has the Most Powerful and Advanced Internet Attack Capabilities

[Editor’s Note: An article published on Qiushi, the official publication of the Central Committee of the Chinese Communist Party, states, “The U.S. has the most powerful and advanced Internet attack capabilities.” The author, Jiang Yong, is director of the Center for Economic Security Studies under the official think tank, the Institute of Contemporary International Relations. Jiang is also a scholar under the Ministry of State Security. The following are excerpts of Jiang’s article titled “The Internet: the New Invisible Front.”] [1]

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Xinhua: Strategies to Fight the U.S. Aircraft Carrier’s Supremacy

After China’s unusual repeated protests, the U.S. “George Washington” aircraft carrier will not enter the Yellow Sea, but will perform joint exercises with South Korea in the Japanese Sea. China and the US have entered an “aircraft carrier dilemma” era, International Herald reported on July 22. The article listed three strategies for China to deal with the US:
1. Best strategy: A political solution: Define China’s core interest areas along China’s coastal areas and use political and diplomatic approaches to block U.S. carriers from entering it.
2. Mediocre strategy: A political approach plus military preparation such as anti-surveillance preparation, monitoring the U.S. carrier, conducting China’s exercises in certain water areas, etc.
3. Military strategy: If the U.S. carrier arrives at China’s coast despite China’s strong protests, then send a nuclear submarine carrying strategic missiles to the ocean war locations, increase the combat readiness level of the land-based long-range missiles, and apply military pressure against the U.S. carriers battle group, etc.

Source: International Herald, July 22, 2010
http://news.xinhuanet.com/herald/2010-07/22/content_13897790.htm

PLA Established a Centralized Network Warfare Command

According to a South China Morning Post report that was republished by the Global Times, the PLA has established its first network warfare center, called the Information Protection Center. This center is directly under the General Staff Department and will command all the Internet-based strategic information centers throughout all PLA units. It is the first time that the PLA confirmed it has developed a network warfare strategy. Some believe the strategy has shifted from the information protection of the past to developing network warfare.

The PLA also published a rule that prohibits its 2.3 million soldiers from creating web pages and blogs, entering the online community, and using online chatting and dating services, even when on vacation.

Source: Global Times, July 25, 2010
http://china.huanqiu.com/eyes_on_china/economy/2010-07/956140.html

Xu Caihou: Continuing to Develop the Party in the Military

On July 24, the Deputy Chairman of Central Military Committee, Xu Caihou, stressed continuing to improve the level of the party’s development in the military. Xu said the Chinese army is created by the CCP. Upholding the party’s absolute leadership over the military is the fundamental principle and eternal spirit of the PLA. The party development in the military should resolutely follow Hu Jintao’s instructions. Xu made this statement at the Conference on Party Development in the Military.

Source: Xinhua, July 25, 2010
http://news.xinhuanet.com/mil/2010-07/25/content_13913056.htm

CRN: Two Major Strategies for Rebalancing China-US Economy

China Review News (CRN) recently reviewed an article published by China Securities Journal, discussing how to rebalance the China-US trade relationship. The article recommended four policies: (1) invest directly in the US; (2) diversify export markets; (3) adjust the foreign investment structure; (4) acquire international natural resources. The article also suggested four reforms: (1) reform the structure of the economy; (2) reform the mechanism of growth (to be more consumer-driven); (3) reform pricing of the factors of production, such as land; (4) speed up the urbanization process. In conclusion, the article called for implementation of two financial strategies: (1) establish a multilayer capital market system in order to obtain international pricing power for commodities; (2) speed up the process of RMB internationalization.

Source: China Review News, July 14, 2010
http://gb.chinareviewnews.com/doc/1013/8/1/6/101381618.html?coluid=148&kindid=0&docid=101381618&mdate=0715003503