Chinascope – Page 745

Military Expert: China Should Take Major Counter Measures to Deal with U.S. Military Reconnaissance

People’s Daily published an article reporting the comments that two Chinese military experts made about the incident in which a Chinese fighter plane J-11 intercepted the United States Navy P-8A patrol aircraft about 217 km east of Hainan Island while it was conducting "routine surveillance."

Chinese Navy military expert Cao Weidong said, during an interview with CCTV, that the purpose of the United States’ frequent surveillance of China is to gather Chinese military intelligence. The U.S. is deliberately hyping the Sino-U.S. military confrontation in order to increase its bargaining chip in the forthcoming Sino-U.S. Military Maritime Consultation.

Military expert Wang Ming proposed that China should take both offensive and defensive measures to cope with the U.S. military aircraft reconnaissance. First, from the "defensive" perspective, the U.S. reconnaissance is of a strategic reconnaissance nature. It is intended to study China’s air defense system deployment, electronic spectral information, and so on. China must strengthen electronic protection and operational secrecy; it must be strict in separating its wartime military equipment from the peacetime equipment used in training; it must hide its wartime equipment and its enhanced defensive controls. Second from the "offensive" perspective, when the Americans carry out reconnaissance, we should try to extend our defensive area forward, expand the scope of control, and be more active. We should prevent foreign military aircraft from getting close to their intended target area. "This time, the J-11’s active verification of the United States patrol plane was a form of offensive counter-surveillance."

Source: People’s Daily, August 25, 2014

http://military.people.com.cn/n/2014/0825/c1011-25533986.html

Briefings | | August 28, 2014 | US-China Relations

Experts: 2015 Will See Further Decline in China’s Real Estate Industry

According to the Beijing-based media, Caixin, Wang Tao, the chief China economist at the UBS global management firm, predicted that 2015 would see a further decline in China’s real estate market. As a result of fundamental changes in supply and demand patterns that have occurred, even if Chinese decision-makers were to relax government policies, it would hardly change the downward trend.

Although the "Golden September and Silver October," representing the traditional sales season for real estate, are approaching, analysts are not optimistic and believe that sales and new starts will continue to drop sharply towards the end of this year and into 2015. For 2015, Wang Tao expects that real estate sales will likely decline by another five to 10 percent. New housing starts may fall another 10 percent. It is not a matter of another cyclical downturn but the result of fundamental changes in the patterns of supply and demand. Therefore, it is unlikely that any government measures to boost the market would be effective.

Source: caixin.com, August 26, 2014

http://economy.caixin.com/2014-08-26/100721225.html

Briefings | | August 28, 2014 | Economy/Resources

China’s National Security Act to Be Renamed the Counterespionage Law; Overseas Spies to Be Punished

On August 25, 2014, the 12th National People’s Congress Standing Committee in Beijing held its 10th meeting. A bill was submitted for a first reading at the bi-monthly session of the Standing Committee of the National People’s Congress proposing to change the name of the National Security Law to the Counterespionage Law. The main purpose of the current law is to regulate the work of the country’s national security agencies, whose major duty is counterespionage work.

“According to the proposed changes, foreign organizations and individuals conducting espionage activities, or who instigate and sponsor others to do so, will be punished, as will domestic organizations and individuals who spy on the country for foreign organizations and individuals.” “The bill will give national security agencies the authority to ask an organization or individual to stop or change those activities that are considered harmful to national security. If they refuse or fail to do so, the agencies will be authorized to seal and seize related property” or to arrest them so they will be subject to legal punishment.

Source: People’s Daily and people.com.cn/, August 26, 2014
http://world.people.com.cn/n/2014/0826/c1002-25538612.html

Briefings | | August 27, 2014 | Government/Politics

Develop the Capability to Enforce China’s Ocean and Sea Sovereignty

China Review News reported that Chen Qing, Deputy President of the Union for Media Communication in Macao, gave the keynote speech at a conference on ocean and sea sovereignty and on the Chinese nation’s resurrection. In his speech, Chen discussed the development of the advanced ocean and sea sovereignty concept.

Chen proposed that the oceanic and sea defense strategy should change from active offshore defense to deep water military control. The People’s Liberation Army (PLA) should expand its reach to the West Pacific, Australia, and Africa. The PLA should also re-organize its space combat force, network combat force, missile combat force, and remote air and sea attack force so they are placed along the transportation routes that are critical to China. China must have the ability to control and to break other’s control of the ocean channels used for its food and energy supplies.

For the near-sea strategy, China must first subdue Japan, Vietnam, and the Philippines. It should calm the U.S. and maintain a good relationship with the European Union to cut off its support for its near-sea rivals. It should also occupy key water paths to break the island chain blockade.

Source: China Review News, August 24, 2014
http://hk.crntt.com/doc/1033/5/1/7/103351707.html?coluid=136&kindid=4711&docid=103351707&mdate=0824002538

Briefings | | August 27, 2014 | Defense/Military

China Economic Times: Wield the Carrot and the Stick in South China Sea Oil Development

On August 27, an official from the China Petroleum Enterprise Association published an article on China Economic Times titled, “(China) needs to wield both the carrot and the stick in South China Sea oil development.” In May of 2014, in order to perform oil and gas exploration, China, for the first time, moved its giant oil rig into the South China Sea. The placement was 120 miles from Vietnam’s shore and was within Vietnam’s continental shelf and its Exclusive Economic Zone (EEZ). In the middle of July, China moved its oil rig out of the area. The China Petroleum Enterprise Association official stated in his article that the aggressive and victorious “move in” and “move out” was a declaration of China’s “oath.” That is, China made the statement, “I have the sovereignty.” “This is my place. … I have my reasons for coming and going. Others have no right to point fingers or make any irresponsible remarks.”

The article concluded that, when facing such a complicated dispute, China can, while wielding the stick, also offer some carrots. That is, we can hide our capabilities and bide our time. Using the premise that we have sovereignty over the South China Sea, when we take the initiative to do self-development, China does not need to exclude others from joining us for co-development. By offering opportunities for cooperation, China can force the opponent back to the negotiating table and eventually realize joint development. In some highly disputed areas in the South China sea, China can unite foreign oil companies for co-development. If the conditions permit, China should actively push forward joint venture development between China’s state-owned oil companies and Taiwanese oil companies.

Source: China Economic Times, August 26, 2014
http://www.cet.com.cn/ycpd/sdyd/1291751.shtml

Briefings | | August 27, 2014 | Geo-Strategic Trend

MIIT: Chinese Industrial Economy Still Faces Downward Pressure

China News recently reported that the Ministry of Industry and Information Technology (MIIT) just released The 2014 First Half Year Report on China’s Industrial Economy. According the Report, the large scale industrial output growth rate is 0.5 percent lower year-over-year. The manufacturing investment growth rate slowed by 2.3 percent year-over-year, especially in the private sector. The electronic products export level growth rate is 3.7 percent slower year-over-year. Small and medium scale companies are finding it harder to obtain loans. Their financing costs have increased by 17.5 percent. In the meantime, the inventory of industrial finished goods grew 12.6 percent. The information industry is keeping the rapid growth rate at 11.6 percent. However, a quarter of the companies suffered a loss in the first half of the year. The Eastern provinces are seeing some signs of recovery, but the Midwestern and Northeastern provinces are still experiencing economic slow-downs.

Source: China News, August 22, 2014

http://finance.chinanews.com/cj/2014/08-22/6523273.shtml

MIIT Official Site, August 22, 2014

http://www.miit.gov.cn/n11293472/n11293832/n11293907/n11368223/16114936.html

Briefings | | August 26, 2014 | Economy/Resources

China May Limit Imports of U.S. Sorghum

Well-known Chinese news site Sina recently reported that China is tightening up inspections of U.S. sorghum cargo ships. Very likely Chinese customs plans to limit imports of U.S. sorghum. Last month the Chinese quarantine agency asked Chinese local authorities to increase the inspection level of imported sorghum for pesticide residues, heavy metals, and other toxic substances. Not long ago, China refused the entry of over one million tons of U.S. sorghum. Since the Chinese government started protecting domestic corn farmers, corn prices in China have been on the rise. Sorghum is quickly becoming a less-costly replacement for fodder. Market experts have already decreased the estimate of the level of annual sorghum imports by half. The spokesperson for the National Bureau of Inspection and Quarantine declined to comment on this matter.

Source: Sina, August 21, 2014

http://finance.sina.com.cn/chanjing/cyxw/20140821/171620082019.shtml

Briefings | | August 26, 2014 | US-China Relations

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.”