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Xinhua: As the Number One US Debt Holder, China Should Have a Louder Voice

Xinhua published an article from Security Times, which argues that since China has become the number one debt holder of the US, China should have more say.

The article argued that accumulating US dollars in the short-term by China is unavoidable since other foreign reserves are not as appealing as the US dollar, but this approach may be harmful to China in the long term. As the creditor, China faces two risks: the default risk of the US dollar, which is unlikely, and the exchange rate risk. It was written in the article that China should reduce its foreign reserve and accumulate more raw materials instead.

Source: Securities Times, November 20, 2008
http://www.p5w.net/today/200811/t2018539.htm

Also published on: Xinhua, November 20, 2008
http://news.xinhuanet.com/fortune/2008-11/20/content_10385110_1.htm

Chinese Hackers Have Broken into 103 Countries

The Epoch Times and the Chinese BBC have both coverd the story of a ten-month research study by the Munk Center for International Studies in Toronto, CA. The research reports that in the past two years, a Chinese spy network dubbed "GhostNet" has invaded 1,295 computers in 103 countries, including government agencies. These agencies include foreign affairs ministries, embassies and consulates, international organizations, news agencies, and NGOs. According to the report, there’s a "covert, difficult-to-detect and elaborate cyber-espionage system capable of taking full control of affected systems" that leads back to China.

Researchers at the Oxford University, UK also reported that these Chinese hackers have gathered information for the Chinese police to enable them continue their crackdown in Tibet.

While not claiming absolute proof, their newly-released report "Tracking GhostNet: Investigating a Cyber Espionage Network" says "circumstantial evidence" strongly suggests "this set of high profile targets has been exploited by the Chinese state for military and strategic-intelligence purposes." The Chinese Embassy in London denied any involvement and claimed the reports to be propaganda issuing from the Tibetan Government in Exile.

Source: The Epoch Times, March 31, 2009
http://www.epochtimes.com/gb/9/3/31/n2479769.htm
Source: BBC Chinese, March 30, 2009
http://news.bbc.co.uk/chinese/simp/hi/newsid_7970000/newsid_7973200/7973223.stm
Source: NetworkWorld, April 1, 2009
http://www.networkworld.com/news/2009/040109-cyber-espionage.html?page=1

Xinhua Commentary: China Should not Have a High Tone at the G20

Xinhua published an article suggesting that China should take care of itself before playing a major role in the international financial system. It argued that the governor of the central bank of China, Zhou Xiaochuan’s suggestion of “replacing the US dollar” with a Super Reserve Currency under the IMF is unrealistic. Even if that happens, China may still not get more say at the IMF as it has been single-handedly maneuvered by the US for so long.

It further argued that so far China has been less impacted by the financial crisis not because China has a sound financial system, but rather because China’s financial system has not been fully opened to the world. China’s social and political systems are not yet ready for China to play the role of world financial leader.

So China should continue to remain low key. Its practical approach is to reduce the IMF’s international role by diverting the IMF into other regional financial and economic organizational roles and develop the Renminbi to make it strong enough to stand up to the US dollar and the Euro. Only when China is capable of providing the alternative currency reserve, can China have the ability to establish a just and fair international financial order.

Source: Xinhua, March 30, 2009
http://news.xinhuanet.com/herald/2009-03/30/content_11098132.htm

The Chosun Ilbo: Super-Sovereignty Reserve Currency Triggers US-China Currency War

China recently suggested the creation of a “global currency” to replace the US dollar. The US is firmly against the proposal. US President Obama told the press on the March 24 that “the US dollar is extraordinarily strong.” Primary US economic officials retorted on the same day.

Despite US rebuttal, Mr. Zhou Xiaochuan, Governor of the central bank of China, mentioned this “international reserve currency” issue again on March 25. The new members of the G20 are skeptical about the current international currency system.

The article quoted a Russian official announcement on the necessity of a G20 discussion on a new IMF international currency. The British Prime Minister was also quoted on his dismissal of such a discussion.

Source: The Chosun Ilbo, March 26, 2009
http://chn.chosun.com/site/data/html_dir/2009/03/26/20090326000033.html

130,000 Emergencies Reported in Hebei Province in 2008

According to the Emergency Management Teleconference in Hebei Province, close to 130,000 incidents took place in Hebei in 2008, causing 6308 deaths and economic loses of 10.5 billion Yuan. Examples include coal mine accidents as well as milk poisoning from the San Lu milk powder scandal.

All levels of municipal entities at the district, village, town, and city level are instructed to finalize their emergency plans by the end of March. So far, 165,000 plans are reported in place and subject to provincial review.

Source:  China News, March 25, 2009
http://www.chinanews.com.cn/gn/news/2009/03-25/1616631.shtml

US Vigilant of China’s Challenge to US Dollar

Global Times, under Chinese state daily news, Renmin, reported from New York that the United States responded strongly against China’s call for a new international reserve currency to replace US dollar.

The report referred to an AFP article which quoted President Obama as stating that the“US dollar is extraordinarily strong” on March 24.
 
Earlier, US Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner both agreed that they’ll “unconditionally” refuse the switch to an international currency. The Wall Street Journal reported the story in an article entitled :“China Points the Finger at US Dollar”. The New York Times believes that this demonstrates China’s worry about the safety of its assets in US dollars as well as China’s intent to use this as a playing card in the G20 Summit.

Source: Renmin/Global Times, March 25, 2009
http://world.huanqiu.com/roll/2009-03/414150.html