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China’s Reaction to Trump’s Election Win

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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

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Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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Saudi Prince Invested in Beijing Real Estate

Guangming Daily, a national newspaper based in Beijing City, recently reported that Kingdom Holding Company invested $700 million in a Beijing real estate development project called the Jingdong Shopping Center. Saudi Prince Alwaleed Bin Talal owns 95 percent of Kingdom Holding Company. The announcement triggered widespread discussions in China. The Prince himself suggested that the investment “strengthened the strategic relationship between Saudi Arabia and China.” Chinese public opinion seems to agree that this average real estate project has now become much more political. The Prince has a very big investment portfolio, which includes Twitter, Amazon, Apple, Citibank, Coca-Cola, eBay, Ford, McDonalds, P&G, and Disney. 
Source: Guangming Daily, February 18, 2013
http://economy.gmw.cn/biz/2013-02/18/content_6719690.htm
Briefings | | |   Geo-Strategic Trend

Central Politburo Discussed Restructure of the State Council

The Central Politburo held a meeting on February 23, 2013, in which they discussed the draft restructuring plan of the state council. The participants at the meeting also agreed to have the Second Plenary Session of the Party’s 18th Central committee on February 26 to 28. It was reported that the central committee will provide a list of recommended candidates to be the leaders of government agencies as well as candidates for the National Committee of the Chinese People’s Political Consultative Conference.

Source: Xinhua, February 23, 2013
http://news.xinhuanet.com/politics/2013-02/23/c_114777310.htm

Briefings | | |   Government/Politics

International Herald: Why Does the U.S. Keep Harping on the Chinese Hacker Issue?

In an article published in the International Herald, Yuan Peng, a U.S. expert with the China Institute of Contemporary International Relations, listed three reasons why the U.S. keeps harping on the “China Hacker Threat”: 1) The U.S. believes that China has the capability of launching cyber attacks. 2) A few news media and commercial companies continue to malign China because they fear that their own trade secrets will be leaked and they also look at China as their enemy. 3) They deliberately dwell on the cyber threat issue in order to pave the way for the expansion of their cyber team and to build a foundation for possible future cyber wars.

As to how China should react, the article had two suggestions: 1) Stop the rumor at the early stage. 2) Strengthen the development of China’s cyber power in order to build a strong defense and management capability.

Source: International Herald, February 22, 2013
http://ihl.cankaoxiaoxi.com/2013/0222/168494.shtml

Briefings | | |   US-China Relations

Xinhua Commentary: Hillary’s Departure May Benefit US-China Relations

Xinhua carried an article, originally published in Beijing Evening News, which suggested that Hillary’s departure may help to improve the US-China relationship. The article stated that, during her four year term, Hillary shifted the U.S. focus back to the Asia pacific region and upended the U.S. attitude towards China. As Secretary of State, she had a strong influence on the President’s foreign policy. The article said that Hillary belongs to the group that holds hostile feelings toward China. It also suggested that Kerry, as Hillary’s replacement, may be easier to deal with. The article also speculated that U.S. foreign policy toward China may remain unchanged despite how different Kerry’s personality is.

Source: Xinhua, Feb 1, 2013
http://news.xinhuanet.com/world/2013-02/01/c_124312548.htm?prolongation=1

Briefings | | |   US-China Relations

Xinhua: What Are the U.S. Military Hackers Doing?

Xinhua military commentator Zheng Wenhao published an article in response to the cyber attack issue raised in the United States. Zheng observed that recent U.S. media reports declared that Chinese hackers, who were associated with China’s military, had made a large number of vicious attacks against U.S. companies and government entities. He countered that it is the U.S. military that has the world’s most vicious and powerful hacker organization. 

The article asked, “Does the U.S. Army have hackers? The answer is clearly yes. At a hearing of the Senate Armed Services Committee in April 2005, even before the establishment of the U.S. Cyber Warfare Command in 2010, the U.S. Strategic Command’s senior generals acknowledged the existence of a hacker organization, the so-called ‘Joint Command of cyber warfare functional unit (JFCCNW).’ This organization may be the world’s most frightening and powerful hacker organization."
“In public, JFCCNW is responsible for guarding the network security of the Defense Department. At the same time, it also carries out highly classified computer network attack missions.” 
“JFCCNW almost never talks about its actions and results. There is no doubt, however, that a lot of ‘black projects’ that involve U.S. military ‘cyber attacks’ are ongoing.” 
“Backed by the country’s near monopoly status on Internet technology, the U.S. military undoubtedly has the world’s most powerful capabilities to launch cyber-attacks. Moreover, the numerous U.S. hacker organizations, such as ‘LulzSec’ and ‘Anonymous,’ provide a steady stream of ‘hacker’ reserves for the U.S. military.” 
“In a year in which the world is increasingly influenced by the Internet, it is just a matter of time before the U.S. armed forces and hackers team up. [Therefore], in the field of Internet security, how we can keep our ‘virtual space defense capabilities’ without being affected by the American media and public opinion is a long-standing struggle.” 
Source: Xinhua, February 20, 2012 
http://news.xinhuanet.com/mil/2013-02/20/c_124369076.htm
Briefings | | |   US-China Relations

Exponential Growth of Privately Owned Cars: Good or Bad?

According to a report released by the Chinese Academy of Social Sciences, the number of privately owned cars will exceed the 100 million mark during the first quarter of 2013. State media Guangming Daily expressed concern about road congestion, air pollution, a shortage of energy, and a scarcity of land. In 2000, China entered into a 10 year boom in the automobile market. In 2010, China became the largest automobile market in the world, 5 years ahead of the original projection of 2015. Guangming further stated that there are over 5.6 million automobiles in Beijing where the roads are designed to carry only 4 million. Traffic congestion is intensifying and pollution is rapidly getting worse. In addition, in 2012 China imported 59% of the crude oil it consumed.

Source: Guangming reprinted by Xinhua, February 20, 2013
http://news.xinhuanet.com/fortune/2013-02/20/c_114730723.htm

Briefings | | |   Economy/Resources

Chinese Military Cyber Attack Unit Recruits Computer Science Students

The Chinese military unit 61398 that, according to the 60 page report by Mandiant, is the source of cyber attacks against the United States, recruits graduates who have a major in computer science. An example of such an effort can be found at the website of the College of Computer Science and Technology, Zhejiang University, Hangzhou City.

A recruitment notice dated May 13, 2004, was titled “Announcement of People’s Liberation Army Unit 61398 to Recruit Directed Graduates.” The notice stated the following: “According to the Graduate School, the People’s Liberation Army Unit 61398 (located in Pudong, Shanghai) will recruit master’s degree candidates from the 2003 class, who have a major in computer science, to be directed graduates. Those students who sign the agreement will be provided with a defense scholarship of 5,000 yuan per year. Upon graduation, the students will be directed and assigned to work in the People’s Liberation Army. Interested students from the 2003 master’s degree class in our college may contact Teacher Peng from the Graduate Office of the college by May 20. …”

Source: iFeng.com, February 20, 2013
http://news.ifeng.com/mainland/detail_2013_02/20/22299410_0.shtml

Briefings | | |   Defense/Military

U.S. and Japan shocked: North Korean Nuclear Explosion Brought China Three Major Benefits

People’s Daily held a Powerful Nation Forum discussing North Korea’s recent nuclear test. One post discussed how China is actually a beneficiary of North Korea’s nuclear test. The test helped China in the following three ways: 

1) It reduced the pressure from Japan in the Southwest. Japan is prepared to fight to the end with China in a military arms race on the Diaoyu Islands issue. In this critical situation, China has been pushed into a corner and has no room to maneuver. North Korea’s (nuclear test) provided China such some space to maneuver! However, if Japan continues its willful course, there will still be no solution to the Diaoyu Islands issue for China! 
2) It shifted some of the U.S.’s attention away (from China). Up to today, China has always been in a defensive counterattack position (against the U.S.). In a sense, North Korea’s nuclear explosion has attracted some attention from the U.S. When the United States feels the threat (from North Korea), its first thought is to ask China to counterbalance North Korea. This way, it may give China a little bit of time and space to breath!  
3) The only one in the neighborhood of North Korea without a voice is Russia! Is Russia trying to serve as a balance or is it weighing the pros and cons so as to achieve some sort of strategic purpose? Using the North Korean nuclear issue may also give Russia and China a rare opportunity to jointly deal with their relationship with the United States and its allies! In summary, China is not afraid of war! That North Korea has nuclear weapons may not be a disaster for China! China can fully leverage its power to play a political Taiji and let the United States know what it feels like to have pain! 
Source: Powerful Nation Forum of People’s Daily, February 19, 2013                                         http://bbs1.people.com.cn/post/2/1/2/127016759.html
Briefings | | |   US-China Relations