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People’s Daily: China Took over Pakistan’s Gwadar Port

People’s Daily recently reported that a Chinese company officially took over Gwadar Port in Pakistan. The agreement between the two countries was based on a 43-year lease for China to operate and develop the port. Gwadar directly faces the Indian Ocean and looks out onto the Arabian Sea. It is only 400 kilometers away from the Strait of Hormuz and is very close to the India-Pakistan border. Indian media expressed their concern after the agreement was made known to the public. The Port of Gwadar has significant value to China in terms of oil supply because it provides an alternate route to bypass the Strait of Malacca and shortens the distance by 85 percent for China to transport Middle-East-sourced oil to Western China. At the same time, all parties are currently downplaying the strategic military value of Gwadar but are instead focusing on its economic impact.
Source: People’s Daily, November 13, 2015
http://paper.people.com.cn/rmrbhwb/html/2015-11/13/content_1632547.htm

BBC Chinese: Indonesia Warns of the Potential of Taking China to Court

BBC Chinese recently reported that Indonesian Security Minister Lu Huth Pandjaitan announced at a press conference that Indonesia may take China to the international court if the territorial sovereignty issue of the South China Sea between China and Indonesia cannot be resolved through dialogue. Indonesia disagrees with China’s position on the sovereignty of a portion of the Natuna Islands. Panjaitan said his government has been trying to get in touch with China. He did not want to see power fights in the region and hoped the conflicts could be resolved peacefully by engaging in dialogue. In the meantime, Chinese Minister of Foreign Affairs Wang Yi commented that the Hague Permanent Court of Arbitration (PCA) ruling on the South China Sea, which was in favor of the Philippines, was the cause of tension between China and the Philippines. 
Source: BBC Chinese, November 11, 2015
http://www.bbc.com/zhongwen/simp/world/2015/11/151111_indonesia_china_dispute

Experts Interpret Xi’s Direction in Sino-U.S. Relations

Following Xi Jinping’s visit to the United States, over a dozen domestic experts on U.S.-China relations gathered at Renmin University of China and discussed the future direction of Sino-U.S. relations. These scholars had the basic consensus that Xi’s U.S. visit exceeded expectations, enhanced mutual trust, and righted the direction. In both the grand scheme as well as the details, Xi made some new statements. Scholars believe that, in the next year, Sino-U.S. relations overall will be manageable. However, long-term structural contradictions will still exist; [China] needs to maintain a strategic focus and have the patience to manage these relations. 

The scholars noticed that Xi made three new points in his statements regarding the new type of relationship between major powers. 
First, on three occasions, Xi expressed that building a new type of relationship between the two major powers of China and U.S. is “a priority for the direction of China’s diplomatic policies.” 
Since the 18th Congress, China has officially stated that the relations with diplomatic priority include Sino-Russian relations, China-E.U. relations, diplomacy with neighboring countries, as well as the relationship between China and other BRIC countries and the Shanghai Cooperation Organization (SCO). As for the importance of Sino-U.S. relations, the most common expression is that "the Sino-U.S. relationship is one of the most important bilateral relations in the 21st century." The "Sino-U.S. relationship is at the top of the most important relations in China’s diplomacy" was also once a consensus among academics, but has rarely been mentioned in recent years. 
This is an important statement of [China’s] foreign policy. Da Wei, Director of the China Institute of Contemporary International Relations, believes that "Chairman Xi reaffirmed the importance of Sino-U.S. relations to the American public." 
Second, some scholars noted that in the summary list of Chairman Xi’s visit, the first item on the "Sino-U.S. new relations between big powers" mentioned that China respects the traditional U.S. influence in the Asia-Pacific region and its real interests and welcomes the U.S. to continue to play a positive and constructive role in regional affairs. Among them, the statement that "China respects the traditional American influence and real interests in the Asia Pacific region" appeared for the first time. 
Wang Dong, Deputy Executive Director of the Sino-U.S. Cultural Exchanges and Research Base at Peking University, pointed out that China often said that "[we] welcome the United States to continue to play an active and constructive role in regional affairs." However, "to respect traditional American influence and real interests in the Asia Pacific region" has, previously, never been clearly stated. He said, "This statement is to confirm China’s strategic intentions. We are reinventing the wheel." 
Third, about the future of Sino-U.S. common interests and responsibilities, President Xi Jinping used the term "unprecedented" on the evening of September 25 at the welcoming banquet that President Obama held in the White House. 
Most noteworthy is that, on the 25th, after the talks with President Obama, when the two heads of state jointly met with reporters, President Xi stated that the two sides have a lot of common interests in the South China Sea. 
Wang Dong believes that using the term "unprecedented" to describe the future of Sino-U.S. common interests and common responsibilities and also stating that China and the U.S. "have a lot of common interests in the South China Sea," appeared for the first time in Sino-U.S. relations. It manifested President Xi’s full understanding and control of the overall direction of future Sino-U.S. relations. To some extent, it will help alleviate the situation of Sino-U.S. tension and confrontation in the South China Sea issue. 
Source: People’s Daily, October 15, 2015 
http://world.people.com.cn/n/2015/1015/c1002-27702943.html

Xinhua: Northeast China’s Peak Air Pollution Level Reached Record High

Xinhua recently reported that Shenyang, the capital city of Liaoning Province in Northeast China, suffered several days of severe air pollution, along with over ten other cities in the region. On November 8, Shenyang’s PM2.5 pollution level went above 1400, which was the highest number on record. [Editor’s note: The World Health Organization defines the safe PM2.5 level as 25 or below. New York’s PM2.5 peak level was 68 on October 5, 2013. Greenpeace reported the highest PMI ever previously recorded as 900 in Beijing on January 13, 2013.] 

The City of Shenyang’s air pollution emergency response team set the Emergency Level to the Top Level, when the entire downtown was covered with gray smog. However, hours after the issuance of the emergency alert, no information was available on any of the websites of the government branches that are members of the emergency response team. In the meantime, the Shenyang Bureau of Environment Protection’s official website went offline and the city’s Environment Protection Hotline was not even aware of the Top Level emergency status until late at night. Several hospitals told the media that the respiratory outpatient volume doubled in two days. PM2.5 particles are air pollutants with a diameter of 2.5 micrometers or less, small enough to invade even the smallest airways. 
Source: Xinhua, November 8, 2015
http://news.xinhuanet.com/politics/2015-11/08/c_128405980.htm

People’s Daily – Campaign against Senior Corrupt Officials Intensifies

On November 12, 2015, People’s Daily published a commentary regarding Lv Xiwen, a senior official in the Beijing municipal government who was taken into custody for corruption investigation on November 11, 2015. The commentary stated that, with Lv’s arrest, the full coverage (“tigers,” or senior corrupt officials, have now been taken into custody in every one of the 31 jurisdictional regions) is not the end but the beginning for more investigations. 

The commentary stated that most of these tigers’ corrupt activities occurred while they were the top leaders of their departments. Therefore, three groups will continue to be the focus of investigations: those who, since the 18th National Congress of the Communist Party of China in November 2012, have not stopped their wrongdoing; those who the public has complained about the most; those who are currently in very important positions with a high potential for promotion. 
“Facts have proved that the Party’s Central Committee has not changed its commitment to the anti-corruption campaign. As long as there are facts to substantiate the charges of corruption, whoever it may involve, they will not escape punishment.” 
Source: People’s Daily reprinted by Xinhua, November 12, 2015 
http://news.xinhuanet.com/legal/2015-11/12/c_128420128.htm

TPP’s Biggest Impact on China Is Reconstruction of the Industrial Chain

Following the U.S.-led formation of the Trans-Pacific Partnership (TPP), a People’s Daily article discussed what impact the TPP might have on China’s industrial chain. Below is an excerpt from the article: 

“The main objective of the U.S. in pushing the TPP is to extend the U.S.-led global trade rules. The TPP will mean an upgrading of the trade rules. Its main role is to reconstruct the global industrial chain through free trade negotiations. This is a core interest of the United States and it will have a possible adverse impact on China’s future position in the global industrial chain.” 
“Tthe TPP’s impact on the global industrial chain may not appear in the short term. Because there are so many developed and developing countries that will participate, each having a production capacity of many products’ raw materials, accessories and core elements, their combination will lead to a change in the global industrial chain in 10 years or longer. By then some of China’s industries with competitive advantages (such as textiles) will inevitably suffer a greater impact.” 
“At present, China’s manufacturing competitiveness comes mainly from its comprehensive, multi-level support capabilities. The United States’ effort to promote the TPP also serves to establish a comprehensive, multi-level supporting industrial chain. The TPP already includes some Asian economies. In the future it is likely that more Asian economies will participate. The existing industrial chain of China and Asian countries will be subject to its impact in varying degrees. The industry chain is very important for the economic integration of China with Asian countries.” 
“The TPP will also affect China’s new ‘one belt, one road’ initiative. Compared with the TPP, ‘one belt, one road’ did not establish a free trade zone; nor does it have trade or investment rules. Even though it may have the effect of reshuffling the global industrial chain, due to the absence of a complete set of rules for the operation of raw materials, processing, exports, tariffs and markets for the entire chain, after their capacity of industrial production is improved, some countries may still consider joining TPP. 
Source: People’s Daily, October 8, 2015 
http://world.people.com.cn/n/2015/1008/c1002-27670983.html

CCTV’s Live Coverage of Meeting Between Xi Jinping and Ma Ying-jeou Draws Criticism

Voice of America (VOA) reported that CCTV, China’s state television, drew criticism from Chinese viewers for its coverage, or the lack thereof, of the November 7 meeting in Singapore between the leaders of Beijing and Taipei. 

In a slightly delayed live broadcast, CCTV edited out Xi Jingping’s addressing Ma as, "Respected Mr. Ma Ying-jeou" at the beginning of his remarks. Also, at the end of Xi’s speech, Ma’s name was again dropped, and Xi’s "Thank you, Mr. Ma!" was turned into, "Thank you!"  
CCTV then returned to its studio when it was Ma Ying-jeou’s turn to address the press. Two hours later, portions of Ma’s speech were broadcast to mainland viewers. 

One Chinese viewer commented on the Internet that the state TV’s failure to broadcast Ma’s speech live "shows that the [Beijing] government lacks confidence." 

 Some believe Ma’s speech was skipped during the live broadcast because propaganda agencies needed time to review his text. 

Taiwan-based Liberty Times Net reported that, before the November 7 meeting, CCTV blurred out the suit lapel of President Ma Ying-jeou during a news report because Ma was wearing a suit lapel pin in the form of a Taiwanese flag. 

Liberty Times Net noted that, after the meeting, when Ma Ying-jeou was holding a press conference after his closed-door session with Xi Jinping, CCTV did not mask out the word "President" on the plaque. On the evening of November 7, CCTV clearly displayed the flag of the Republic of China in its footage showing Ma Ying-jeou giving a speech at his presidential complex. 

Sources: Voice of America, November 8, 2015 
http://www.voachinese.com/content/cctv-xi-ma-20151107/3048659.html 
Liberty Times Net, November 7, 2015 
http://news.ltn.com.tw/news/politics/breakingnews/1501167

Caixin: Crackdown Day Is Coming

On November 5, 2015, Caixin Weekly magazine, a media in Mainland China that is closely related to Xi Jinping’s leadership camp, published a cover report titled “Crackdown Day.” The report asserted that the long-awaited “Crackdown Day,” a national campaign to crack down on market manipulation and to increase the transparency of the stock market, is coming.

On November 10, 2015, Power Apple published an article introducing Caixin’s article titled, “‘Crackdown Day’ Is Approaching, Liu Yunshan Is in Danger.” Liu Yunshan is a follower of Jiang Zemin, the former top leader of the CCP and the People’s Republic of China. Liu is a current member of the Chinese Communist Party Politburo Standing Committee and a leader of the Propaganda and Ideology Leading Group. Liu Lefei, son of Liu Yunshan, is the vice chairman of CITIC Securities International. Among 11 top senior management personnel in CITIC Securities International, eight high-ranking senior officers have been detained for investigation. Liu Lefei has been suspended from his position and is restricted from going abroad. He is expected to confess what he has done.

In addition, Liu Yunshan’s son Liu Lefei, the sons of Zeng Qinghong and Li Changchun (who also belong to Jiang’s faction) and 320 children of the Party leaders have all been placed under control, preventing them from escaping from China.  

Sources: Caixin Weekly, November 5, 2015 & Power Apple, November 10, 2015
http://weekly.caixin.com/2015-11-05/100870579.html
https://www.powerapple.com/news/zhong-gang-tai/2015/11/10/2487260.html