Chinascope – Page 614

Expert: China Needs to Prepare for Military Struggle in the South China Sea

From April 4 to 15, the United States and the Philippines will be holding "shoulder to shoulder" joint military exercises in Philippine territory. Australian troops are also participating in the exercises. Japan is participating as an observer. Military expert Yin Zhuo, in an interview with People’s Daily, thought that the United States is attempting to transform the mechanism of joint exercises into a "quasi-military alliance" to contain China.

Yin Zhuo said the "shoulder to shoulder" military exercise is a stepping stone for U.S. intervention in the South China Sea issue. The U.S. is attempting to hype up the South China Sea issue, thereby curbing the rise of China and undermining the economic ties between China and ASEAN countries. In recent years, America’s economic strength has declined. It hopes that its allies in the Asia-Pacific region will shoulder part of the responsibility to contain China. It also hopes to form a multilateral military alliance against China through the use of the South China Sea issue.

Yin Zhuo said that the United States’ strategic intentions to contain China’s through the South China Sea issue will not change because this is an important component of its "Asia-Pacific rebalancing" strategy. Therefore, China should stick to the principle of being prepared for the unexpected. That is, we will never give in on the issue of sovereignty where the South China Sea islands and reefs are concerned. We should let the United States know this bottom line. This does not mean we have to use military means to solve the problem. China will not strike the first shot, but we must be prepared for a military struggle.

Source: People’s Daily, April 5, 2016

http://military.people.com.cn/n1/2016/0405/c1011-28251022.html

Briefings | | April 8, 2016 | US-China Relations

China Imposes Restrictions on Trade with North Korea

On April 5, 2016, the Ministry of Commerce of China announced that, in order to implement relevant Security Council resolutions [prohibiting nuclear weapons development and ballistic missile activity], it was imposing an immediate ban on imports of North Korean coal, iron ore, gold, titanium, vanadium and rare earths. Some imports for civilian use would be allowed so long as they were not connected to nuclear or missile programs or U.N. Security Council Resolutions 1718 (2006), 1874 (2009), 2087 (2013) and 2094 (2013) and 2270 (2016).

The Ministry of Commerce of China also announced that sales of jet fuel to North Korea were prohibited, but commercial aircraft outside of North Korea would be allowed to refuel for flights to North Korea.

Source: Ministry of Commerce of China, April 5, 2016 http://www.mofcom.gov.cn/article/b/e/201604/20160401289770.shtml

Briefings | | April 6, 2016 | Geo-Strategic Trend

Caijing: How Big Is China’s Debt?

According to the McKinsey Global Institute, in 2015, China’s debt, including the financial industry’s debt, increased to US$28.2 trillion, or 282 percent of its GDP level. Its debt was US$7.4 trillion in 2007, as reported in a Caijing article.

"In a few years, real estate development, local government’s heavy borrowing, and the rapid expansion of "shadow banks" (institutes that function as banks but without a government permit) have turned China into a country of heavy debt. Most worrisome is that much of the money that is owed will never be paid back. Local governments have taken on so many projects that not only are they unable to pay the interest, but they are also unlikely to give back the original principle that was invested."

Source: Caijing, April 1, 2016
http://blog.caijing.com.cn/expert_article-151640-89838.shtml

Briefings | | April 6, 2016 | Economy/Resources

No Solution for China’s Economic Problems

An article that spread widely on the Internet argued that, without human rights and a system of law, there will be no economic prosperity. Therefore, there is no solution for China’s economic problems.

"A mainstream of belief in finance is that currency is created by credit. "How is credit created? ‘Human rights create a market and the rule of law creates credit.’ The foundation of a market economy is equal exchange. Without human rights how can you and I accomplish an equal exchange?

"Only when the king cannot take over your property at will can he be forced to buy it from you. Then a market economy will exist. If there is a super power, not only will the super power not trade with you equally, but neither will anyone in the market. If the king can just confiscate people’s property at will, why should a person try to work hard to make money? Wouldn’t it be faster if that person just flattered the king so he would confiscate some other people’s money instead? Therefore, without human rights, the order of a market economy will be damaged. People will go after power. They will not use the means of fair competition to make money.

"Human rights creates equal trade; trade creates a market. It is just that equal trade is not enough. If people trade with each other equally, then they can cheat each other equally, too. This will make the cost of trade too high. How can they expand credit? They can’t just rely on conscience; they must also rely on the rule of law. The rule of law can create a modern financial system. China’s financial system is not fully developed. The main reason is it lacks the rule law.

"China’s law system is not just unable to support the modern financial system; it is unable to support even basic credit activities."

Source: Amazon
https://s3.amazonaws.com/letscorp_archive/archives/103240

Briefings | | April 6, 2016 | Economy/Resources

Global Times: Should We Thank Bin Su?

According to a March 23 press release that the U.S. Department of Justice issued, Bin Su, a Chinese citizen, "admitted to conspiring with two persons in China from October 2008 until March 2014 to gain unauthorized access to protected computer networks in the United States, including computers belonging to the Boeing Company in Orange County, California. The purpose was to obtain sensitive military information and to export that information illegally from the United States to China." Bin’s cyber thefts of U.S. military secrets included the C-17 Globemaster, and the Lockheed F-35 and F-22 stealth fighters. He was arrested in Canada in July 2014.

Global Times published an article that praised Bin Su.

"As a media in China, we can’t tell if Bin Su really stole data on three major U.S. planes and handed the data over to the Chinese authorities. If that is true, we are willing to express our gratitude to him and even salute him. As a real security fight is going on between China and the U.S., China obviously needs those intelligence experts who can deliver the key information from the U.S. Whether China sent him or it was someone who did it for commercial gain, we think they are great.

"If he was wronged and forced to admit guilt under pressure from the U.S. Justice Department, we express our deep sorrow for him. We believe that, as the ‘intelligence war’ between China and the U.S. continues, more people will be wronged, called ‘Chinese spy,’ and put into prison. We hope all Chinese who work in the sensitive fields in the U.S. are careful, so they avoid having the U.S. intelligence agencies target them."

Source: Global Times, March 24, 2016
http://opinion.huanqiu.com/editorial/2016-03/8766854.html

Briefings | | April 6, 2016 | US-China Relations

BBC Chinese: The U.S. Will Not Recognize the South China Sea Air Defense Identification Zone

BBC Chinese recently reported that U.S. Deputy Secretary of Defense Robert Work announced that the United States informed China of its decision not to recognize a South China Sea Air Defense Identification Zone. Some U.S. officials thought earlier that the international court might rule in the next few weeks based on the filings that the Philippines submitted in its South China Sea sovereignty dispute. China may establish a South China Sea Air Defense Identification Zone just like it did in the East China Sea. Mr. Work commented, in an event that the Washington Post organized, that the United States won’t recognize the South China Sea Zone the same way that it did not recognize the one in the East China Sea. He said the move could be baseless according to the international laws and could intensify the tension in the region. China declared earlier that China’s activities in the South China Sea, in essence, are the same as what the U.S. does in Hawaii.

Source: BBC Chinese, March 30, 2016

http://www.bbc.com/zhongwen/simp/china/2016/03/160330_south_sea_china_us

Briefings | | April 5, 2016 | US-China Relations

China Plans to Require International Companies to Register Domain Names in China

The well-known new Chinese news site The Paper recently reported that the Ministry of Industry and Information Technology has released a draft of the amended Internet Domain Name Regulations to the public for comments. Article 37 of the new Regulations caused considerable controversy. It requires the Chinese authorities to service and administer domain names (such as Microsoft.com) that connect to the Internet from within China. If they do not, Chinese Internet Service Providers (ISPs) are prohibited from connecting the domain owner’s computers to the internet. In addition, according to earlier business regulations, all companies conducting business in China must locate server and storage computers in China. In theory, under the new Regulations, international companies such as Apple and Microsoft will have to move their domain names to China to continue doing business in China. China started its amendment work on the Internet Domain Name Regulations in 2013, hoping to strengthen Internet administration, resource management, and “purify” the Internet environment. Chinese technical experts contend that China’s domain administration lacks the level of security protection that matches the current standard that the major foreign providers offer.

Source: The Paper, march 29, 2016

http://www.thepaper.cn/newsDetail_forward_1449565

Briefings | | April 5, 2016 | Information/Technology

BBC Chinese: S&P Downgraded China’s Rating

BBC Chinese recently reported that, at the end of March, Standard and Poor’s (S&P) downgraded its outlook on China’s sovereign bonds from stable to negative. The downgrade reflects concerns over China’s economy in general, as the world’s second largest economy is slowing amid a rebalancing that increasingly brings economic and financial risks. S&P expressed its belief, in an announcement sent to BBC Chinese, that it expects China to see some improvements in the next five years and China’s credit growth will slow. However, S&P also expects the financial leverage situation of the Chinese government and enterprises will worsen. In the meantime, S&P predicts that China’s investment weight in its GDP will remain far above the sustainable 30 to 35 percent.

Source: BBC Chinese, March 31, 2016

http://www.bbc.com/zhongwen/simp/china/2016/03/160331_standard_poors_china_economy_outlook

Briefings | | April 5, 2016 | Economy/Resources

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.”

The CCP’s Performing Arts Troupes in the U.S.