Chinascope – Page 1171

Post Crisis Period: Focus on External Political Risks

Xinhua recently published an official report by China Renmin University that talked about risks after the rebalancing of the world economy. The report discussed three changes after the crisis: (1) The U.S. will hold onto the services market while Europe will be marginalized; (2) High end manufacturing, represented by Japan and Germany, will decrease while the low end will increase; (3) U.S. dominance of the global financial system will weaken while East Asia has an opportunity. The report also listed four Chinese risks: (1) Wrong international positioning; (2) The fight for profit; (3) Tightened liquidity; (4) Political risks – non-economic means of re-balancing. The report concluded with three recommendations: (1) Improve the Chinese financial market’s maturity; (2) Promote regional financial cooperation; (3) Improve Chinese export products structure towards the higher end.

Source: Xinhua, March 26, 2010
http://news.xinhuanet.com/fortune/2010-03/26/content_13249430.htm

Briefings | | March 31, 2010 | Economy/Resources

Xinhua: The U.S. is a Master at Exchange Rate Manipulation

Xinhua recently published an article suggesting that the U.S. is the country unloading the financial crisis burden onto other countries by manipulating the dollar exchange rate. During 2005 and 2008, the Chinese currency, the RMB, had an appreciation of 20% against the U.S. dollar, while the trade surplus increased. Then last year, the RMB exchange rate remained stable, while the trade surplus decreased. This was considered proof that a higher RMB exchange rate does not help U.S. exports. The author believes that the U.S. is taking advantage of the dominant position of the U.S. dollar to increase the cost of Chinese exports, thus increasing the competitiveness of U.S. products in the domestic market.

Source: Xinhua, March 26, 2010
http://news.xinhuanet.com/fortune/2010-03/26/content_13249503.htm

Briefings | | March 31, 2010 | US-China Relations

Air Force Colonel Dai Xu on the Chinese Air Force at Its 60th Anniversary

How the Chinese Air Force Ranks at the End of the Second Tier in the World

Moderator: First question, what is our Air Force’s position among the countries with strong air forces in the world? Compared to the United States and other developed countries, what are the gaps? About how long will it take in the future (for the Chinese Air Force) to be able to equal the U.S. Air Force?

Dai Xu: First, our Air Force’s position among the air forces in the world: Among the countries with great and strong air forces, we are basically between the second tier and the third. There is only one country in the first tier; obviously it is the United States. A country’s air force power represents its overall power. Whatever kind of power a nation has, it has that kind of air force. European countries and Russia belong to the second tier; Brazil and India belong to the third tier. We are now in between the second and third tier, at the end of the second tier and at the front of the third tier.

Second, our gaps with the United States and other developed countries: There is a big gap with the second tier, and an even a larger gap with the first tier, the United States. This is mainly reflected in several aspects. The first is the gap in the overall air force shapes and systems. The United States (Air Force) has a considerable amount of space elements and it is one body with space and air. Air forces in European countries and the Russian Air Force are partially one body with space and air. And we only just established the ideology for such a concept. The gap is here, the overall shape and system gap. We are two to three decades behind the United States. It would take us eight to ten years to equip ourselves. From starting to equip to having combat capabilities, to forming a mass scale, it would still take a long period of time, so in general it should be 20 to 30 years. It is probably such a long time gap.

… I think that when our national industrial strength and technological power match that of the United States, our Air Force will match its (Air Force). When we have our own aviation industry, like Boeing, we can expect to own something such as the F22 that the United States has.

Moderator: The second question, Teacher Dai Xu, you have proposed that the Chinese Air Force should have the ability to intercept the enemy 4,000 kilometers away. Do you think we now have this capability? In other words, is the Chinese Air Force capable of defending China’s territorial airspace from invasion? Which parts need to be improved?

Dai Xu: In the Global Times and other series of media, I proposed that the new Chinese Air Force in the future should be able to conduct a war of interception 4,000 kilometers away from our shoreline. This is considered based on the national geographic situation and economic layout. Coastal areas account for only 10% of our country (territory), but produce 70% of our country’s GDP. That is, our country’s economic center and lifeblood are in the coastal areas. But we do not have an in depth defense that makes our coastal areas safe enough. Because our country has pursued a non-aligned foreign policy, we do not have any naval or air bases abroad, and therefore cannot provide our coastal defense from a wide range and great depth. We do not have any aircraft carriers, or any diving defense, so the Air Force must have a remote deterrence. … So I think that a war should not happen in our airspace and territory, because of our cities, and because our coastal zones cannot afford a war. War may happen in the public space, or over the invader’s land or airspace, but must not break out on our soil.

As to the second question, we currently do not have the ability. The Air Force’s future ability that I propose refers to the plane dimension. We also need three-dimensional vertical defense capabilities. Contemporary air forces in a lot of big countries already have the capacity to wage war from space. We advocate peaceful use of space. But we should also have the capability of anti-space warfare, just as we oppose the use of nuclear weapons, but possess nuclear weapons. … The Chinese Air Force can now defend our airspace, but must never engage war in our airspace. We pursue a defensive policy and we are not going to invade any country. However, we must not allow a war to come closer to us. … There is a need to enhance our capacities; one is to strengthen the development of our entire system. We should enhance our long-range strike capability in the vertical direction and with planes.

Moderator: Regarding the air force aircraft engine. We all know that the most advanced Taihang engines have appeared in the picture. Teacher Dai Xu, please introduce the Taihang engine and its significance to our Internet readers.

Dai Xu: In the aviation industry, the engine has always been our worry and also a heart disease for our Air Force. So far, our own people have not developed the engines of our main fighters, and we do not have a single self-developed engine. So this is the direction the Air Force as well as our aviation industry have been working toward. For the time being, we are vigorously doing research and development, and are vigorously catching up. However, by now, this technology cannot be said to be fully mature. It still cannot completely replace the imported ones and some features still need to be further improved. But I believe, with the development of our future aviation industry, we will definitely have our own engines, not only the fighter’s engine, but also large aircraft engines.

Moderator: The Taiwan Air Force is used to claim that it has a quality advantage compared to the mainland. Although cross-strait relations are at ease, the mainland Air Force is undoubtedly the imaginary enemy for the Taiwan Air Force. How do you compare the cross-strait air forces?

Dai Xu: I think we should not focus our energy on the other side of the Strait. The Taiwan issue is a very complex and comprehensive problem. To resolve the Taiwan issue requires superb strategic wisdom, and we should not stare at Taiwan. … We should not limit our development goals and strategic vision to the limited number of specific issues at hand. So I recommend that our vision should jump out of the Taiwan Strait. Look at the world, and pay attention to the world.

Moderator: What kind of concept is the so-called strategic air force? What does it refer to? We have repeatedly proposed to have the Air Force become a strategic air force? Why do we think this way? What is the purpose?

Dai Xu: The so-called strategic air force I understand is to look at the Air Force from the height of our national strategy, rather than to understand the meaning of the Air Force from the military services. The strategic Air Force is to position the Air Force from the height of world war. That is that the Air Force is no longer the Air Force of a type of military service. The so-called military service means that the Air Force is to support the army and navy operations, or accomplish the fight alone. That limits its space within the war. In fact the strategic Air Force should be on national grand strategy to a high degree. That is, the Air Force also involves the country’s relief operations in peacetime, a number of humanitarian relief operations, some anti-terrorism activities, new missions, and other concerns.

It can also play a strategic deterrence capability, which positions the Air Force from the height of our national strategy, instead of understanding the Air Force as a type of military service. Why do we propose a strategic air force at this stage? It mainly considers the current situation of the Air Force. Since our country’s industry and technology have fallen behind and the homeland defense strategy has been implemented for many years, the Air Force’s development has been greatly affected and has basically been a homeland defense type of Air Force, which is different from the nature of the world’s air forces. Therefore, based on this reality and the country’s needs, not only must the Air Force change its equipment, but it must also reconstruct its theory and strategic thinking. So this is one of the reasons why we have recently proposed to build a strategic air force. Its purpose is to enable us to understand the Air Force’s natural attributes ideologically, recognize the security challenges that our country faces, and understand the Air Force’s mission in the future of our national security and development. (Let’s) do our best to use out thoughts, actions and equipment to build a space-air-one-body air force with offensive and defensive capabilities.

Endnote:
[1] http://mil.huanqiu.com/aero_space/2009-11/630757.html

Reports | | March 30, 2010 | Report

Xinhua: CPC Press Spokesman System is important to strengthen Party building.

Xinhua reported on February 25, 2010, that Xinhua had an exclusive interview with the CPC Central Committee Propaganda Department’s press spokesman regarding how to “constantly strengthen the Party’s power in creativity, cohesion and combat.”

“The establishment of a CPC Committee Press Spokesman System,” which is very important to strengthen the building of the Party, was first proposed in the Fourth Plenary Session of the 17th CPC Central Committee Conference.

Several CPC Central Committee departments have established their press spokesman systems, such as the CPC Central Commission for Discipline Inspection, the CPC Organization Department, the CPC United Front Work Department, the CPC External Liaison Department, the CPC Party History Research Office, the CPC Literature Research Center, the CPC Taiwan Affairs Office of the State Council, and the CPC State Archives Administration.

Source: Xinhua, February 25, 2010
http://news.xinhuanet.com/politics/2010-02/26/content_13055994.htm

Briefings | | March 30, 2010 | Government/Politics

Global Times: The U.S. will lose, if there is a trade war with China

On March 25, 2010, Global Times, one of China’s official websites, published the article “China advises the U.S. regarding ‘Trade War’: the U.S. will be a loser if it challenges (China).”

The article cited Western news reports to present its point, such as the Washington Post’s article on March 22, 2010, (“China’s commerce minister: U.S. has the most to lose in a trade war”); the Reuters’ article on March 21, 2010, (“China vows to hit back if targeted by U.S. on yuan”); an article from the Boston Globe; and another article from Singapore’s "Lianhe Zaobao".

Yuan Peng, director of the Institute of American Studies at the China Institute of Contemporary International Relations told Global Times that it would be a lose-lose situation if the U.S. launched a trade war with China.

Source: Global Times, March 25, 2010
http://world.huanqiu.com/roll/2010-03/755601.html

Briefings | | March 30, 2010 | US-China Relations

Global Times: Google incident overstated by the West

Global Times, one of China’s official websites, reported on March 25, 2010, that the Google incident is overstated in the West and some Western media such as the “San Francisco Chronicle” and “The Wall Street Journal,” are maliciously discussing “how to deal with China.” Chinese analysts believe that, when conflicts occur, Westerners are united by these media to pressure China.

Global Times also reported that the U.S. government’s attitude is actually backing down on this matter except for Secretary of the State Hillary Clinton’s initial pressure on China’s Internet freedom. Now, the Google incident is only Google’s challenge to the Chinese government. Chinese netizens are now becoming calmer and calmer about the Google incident. Those sympathetic voices toward Google are weakening and the words are not as sharp.

Source: Global Times, March 25, 2010
http://world.huanqiu.com/roll/2010-03/755597.html

Briefings | | March 30, 2010 | US-China Relations

Ministry of Public Security’s Great Intelligence System

At a recent training session for chiefs of nationwide Public Security Bureaus, the Deputy Minister of Public Security, Zhang Xinfeng, called for a “deep understanding of the significance of the ‘great intelligence’ system for facilitating the reform and innovation of public security work.” He instructed to “speed up developing a ‘great intelligence’ system, and comprehensively improving the capabilities to defend national security and social stability.”

Zhang pointed out that “a variety of information and communication infrastructures have been built. By storing rich information on the Internet, the police authorities have adopted information technologies in most key areas.”The “great intelligence” system, part of the “Golden Shield Project,” is an integrated nationwide intelligence sharing platform for all public security workers.

Source: www.gov.cn, March 25, 2010

http://www.gov.cn/gzdt/2010-03/25/content_1564794.htm

Briefings | | March 29, 2010 | Information/Technology

Hu Jintao Ordered Military to Fight Drought

On March 24, the PLA’s General Staff Department and General Political Department issued a joint directive, requiring the army and armed police force to “resolutely implement the important instructions from President Hu Jintao to spare no effort to support local governments in winning the tough battle over drought relief.”

One day before, Hu Jintao, President of China and also Chair of Central Military Commission, instructed, “The local garrisons must think what people think, help people meet their needs, and solve people’s difficulties. (They should) closely cooperate with the local party committees and governments to actively join the fight against drought in order to make greater contributions to winning the tough battle.”

Source: Guangming Daily, March 25, 2010

http://www.gmw.cn/content/2010-03/25/content_1078851.htm

Briefings | | March 29, 2010 | Economy/Resources

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

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”