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Chinese Military Experts Say U.S. reports on China’s Military Developments Show U.S. Anxiety

On June 6, the U.S. Department of Defense released the "2014 Annual Report on Military and Security Developments Involving China." Chinese military experts commented that the report continued the "China threat theory" platitudes and the "Cold War" mentality from previous years. It reflected the United States’ two-pronged strategy of both "contacting" and "guarding against" China; it was filled with "anxiety" about China’s development of its military defenses. 

Zhao Weibin, Colonel from the Research Center of Sino-U.S. Defense Relations at the Academy of Military Sciences, said that the report reflected the United States’ suspicions about China’s strengthening of its defense forces. The U.S. will also use that as an excuse for its own development of information warfare, cyber warfare, and space warfare. 
Zhao said, "As the development of China’s armed forces becomes more diversified, the United States will go from ‘concern’ and ‘worry’ to a state of ‘anxiety’ about China’s military modernization. Through the publication of the report on Chinese military power, the United States aims to damage China’s international image and even demonize China so as to enhance the international community’s concerns and fears about China. The intention to suppress and contain China as part of its global strategy is very clear.” 
Major General Peng Guangqian, Deputy Secretary of the National Security Policy Committee of the China Association of Policy Science, said that the more irresponsible the remarks the United States makes about China’s national defense, the more China should stay calm, quietly pursue peaceful development, and adhere to a defensive national defense policy. "After all, the U.S. provocations will never have a significant effect." 

Source: People’s Daily, June 9, 2014 
http://military.people.com.cn/n/2014/0609/c1011-25120199.html

State Council Explains One Country, Two systems Policy in Hong Kong

On June 10, 2014, the Information Office of the State Council issued a white paper giving China’s explanation of the "one country, two systems" policy in Hong Kong, titled “The Practice of the ‘One Country, Two Systems’ Policy in the Hong Kong Special Administrative Region.”

The white paper explained that the "two systems" means that, within the "one country" the main body of the country practices socialism, Hong Kong and some other regions practice capitalism. “The ‘one country’ is the premise and basis for the ‘two systems,’ and the ‘two systems’ is subordinate to and derived from ‘one country.’ … The main body of the country must practice socialism and that will not change.” 
The white paper further stated that for Hong Kong to retain its capitalist system and enjoy a high degree of autonomy with the "Hong Kong people governing Hong Kong," “Hong Kong must fully respect the socialist system practiced on the mainland in keeping with the ‘one country’ principle and, in particular, the political system and other systems and principles in practice.” The white paper also warned that it is necessary “to stay alert to the attempts of outside forces to use Hong Kong to interfere in China’s domestic affairs and to prevent and deter attempts by a very small group of people who act in collusion with outside forces to interfere with the implementation of ‘one country, two systems’ in Hong Kong.” 

Source: Xinhua, June 10, 2014 
http://news.xinhuanet.com/gangao/2014-06/10/c_1111067166.htm

Global Times: China Can Use the Gun to Solve Territorial Disputes

Global Times, or Huanqiu Shibao, a state newspaper under People’s Daily with a focus on international news, published an article stating that it is perfectly fine for China to "fire a gunshot" when dealing with territory disputes with its neighbors.

The article argued that peaceful development and regional war coexist in the world. "A country should have the right to development, the right to peace, and the right to have a war." "During China’s peaceful rise, to safeguard the sovereignty of its national territory and its ocean rights," China can "selectively choose to use force or peaceful negotiations." There is no need to tie its hand with the notion of "peaceful development."

"China’s renaissance includes economic development, as well as safeguarding its ocean territory and recapturing its lost islands." When the opportunity for recovering its lost territory comes, China should not hesitate to grab it.

Source: Global Times Online, June 10, 2014
http://mil.huanqiu.com/observation/2014-06/5015795.html

White Paper Expresses Beijing’s Determination for Unquestioned Authority over Hong Kong

According to the South China Morning Post, on June 10, 2014, the State Council of the People’s Republic of China issued an unprecedented white paper on the “one country, two systems” issue in Hong Kong. "The white paper on Hong Kong shows Beijing’s determination to maintain control amid the debate over political reform.” “By issuing the paper, Beijing has sought to establish its unquestioned authority over Hong Kong as residents debate the meaning and the flexibility of the ‘one country, two systems’ concept.” It stated, "The high degree of autonomy that Hong Kong has enjoyed is subject to the central government’s authorization. There is no such thing called ‘residual power’ for the special administrative region." It also "warned against ‘outside forces’ using the city to interfere in China’s domestic affairs.”

The paper came 10 days before the “Occupy Central” activities, the activists of which are calling for greater democracy, i.e., calling for an unofficial referendum for the 2017 election of the chief executive.

Sources: South China Morning Post, June 10, 2014
http://www.scmp.com/news/hong-kong/article/1529300/beijing-reasserts-its-total-control-over-hong-kong-white-paper
http://www.scmp.com/news/hong-kong/article/1529528/beijing-issues-white-paper-prove-its-control-amid-reform-debate-hong

Study Times: Hide Our Capabilities and Bide Our Time. No Need to Challenge U.S. Leadership.

On June 9, 2014, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article commenting on President Barack Obama’s recent speech at the U.S. West Point Military Academy in which he discussed the U.S. global leadership role. The article proposed some “soft” strategies in dealing with the U.S. as the world’s leader. Though “China’s national power is increasing rapidly,” “China must remain clear-headed” when facing “flattery.” In the late 1980s and early 1990s, Deng Xiaoping, the former top head of the Chinese Communist Party, said that China should “hide its capabilities and bide its time” and “never take the lead” because it would be too expensive to take the responsibility for the whole world. Today, it is still unnecessary for China to challenge the U.S.’s global leadership position. The United States already has difficulties paying for the huge cost of its international moral responsibilities.

“In this new period of time, China must keep ‘hiding its capabilities and biding its time.’” “When dealing with the United States, China may step back on issues not dealing with principle and use gentleness (or softness) to overcome its power while resolutely defending China’s core interests.”  “For China’s fundamental national interests, China must oppose America’s containment, democratic evolution, and the isolation of China.” China and the U.S. can gain “mutual benefits” economically. In terms of security issues, China can fight against the U.S. without breaking the Sino-US relationship.

Source: Study Times, June 9, 2014

http://www.studytimes.cn/shtml/xxsb/20140609/5194.shtml


 

People’s Daily: Ministry of Commerce Ruled against EU and U.S. Exporters

People’s Daily recently reported that the Chinese Ministry of Commerce announced the results of an anti-dumping investigation it had conducted. The Ministry of Commerce announced that the sale of tetrachloroethene exported to China and originally produced in the European Union and the United States is considered illegal dumping. The ruling was considered final. China’s domestic vendors suffered substantial damage as a result of the dumping. The EU and the U.S. companies named in the Ministry’s ruling will be charged anti-dumping duties based on the scale of their dumping activities. According to the announcement, the case was established on May 31, 2013. And it took a year to reach its conclusion. Tetrachloroethene is a colorless chlorocarbon liquid widely used for dry cleaning of fabrics.
Source: People’s Daily, June 30, 2014
http://finance.people.com.cn/n/2014/0603/c1004-25097799.html

Use of Chinese Currency in the U.S. Significantly Increased

The well-known Chinese news site Sina recently reported that the number of financial settlement activities using the Chinese currency RMB has tripled in the United States. This was based on official numbers released by SWIFT (the Society for Worldwide Interbank Financial Telecommunication) for the first four months of this year. The total number of RMB transactions in the U.S. is now the third largest outside China – after Singapore and Great Britain. Starting in 2009, China lifted the restrictions on using the RMB overseas. The Chinese government has been encouraging the import/export companies to settle in RMB instead of the US dollar. According to SWIFT, between January and April, 2.6 percent of global RMB transactions were settled in the United States, making the U.S. a bigger RMB settlement center than Taiwan. SWIFT also reported that the Chinese RMB ranks seventh among all currencies in the world. 
Source: Sina Finance, June 3, 2014
http://finance.sina.com.cn/stock/usstock/c/20140603/153919300724.shtml

BBC Chinese: China’s Official List of Evil Cults Does Not Include Falun Gong

BBC Chinese recently reported that many Chinese netizens were surprised by the fact that Falun Gong is not in the official list of “evil cults” when, since 1999, the media has told everybody in China that Falun Gong was being persecuted because it is an “evil cult.” In the past few weeks, a wide range of key Chinese news agencies reported on the illegal activities related to “evil cults.” However, in the list that the media published, neither the Ministry of Public Safety nor the State Council had Falun Gong on their official list of “evil cults.” This triggered a large discussion online and many people, including lawyers, asked why the biggest so-called “evil cult,” Falun Gong, is not even on the list. For fifteen years, the popular spiritual movement (also known as Falun Dafa) has suffered the most brutal crack-down in China because it was named a so-called “evil cult.” Court rulings in China have frequently referenced Falun Gong as an evil cult. Some netizens suggested that the government “was just unable to wipe out Falun Gong and that Falun Gong had not really hurt society.” [Editor’s note: Falun Gong is a spiritual movement promoting the belief in Truthfulness, Compassion and Forbearance. Hundreds of thousands are believed to practice Falun Gong freely and legally outside of China in over 70 countries.]
Source: BBC Chinese, June 3, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/06/140603_china_cult_list_falungong.shtml