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CRN: U.S. Reshaping Global Strategy Based on Energy Independence

China Review News (CRN) recently published a commentary on the impact of the improved U.S. energy independence. The commentary mentioned that the U.S. energy self-sufficiency rate reached 81% in the first 10 months of 2011. The U.S. has transformed itself from a daily importer of 2.5 million barrels of refined oil to a net exporter of refined oil. Only 17% of U.S. imported oil is from the Middle East. Meanwhile, it is estimated that, in 2013, China will rely on imported oil for nearly 60% of its oil consumption. Today, Iran alone supplies 10% of China’s oil imports. China’s energy suppliers are mostly from the Middle East and Africa. In 2010, China’s share of the world’s energy consumption reached 20.82%. The commentary concluded, based on these numbers, that the highly improved U.S. energy independence offered a great opportunity for the U.S. to reshape its global strategy to focus on the East and to build a U.S.-centered Asia-Pacific order.

Source: China Review News, March 12, 2012
http://gb.chinareviewnews.com/doc/1020/2/4/7/102024759.html?coluid=148&kindid=7550&docid=102024759&mdate=0312000212

International Herald Leader: China Should Be Clear on Its Right to the Seas

The International Herald Leader, a subsidiary of Xinhua News, recently published a commentary on China’s position on its right to the sea. The commentary mentioned that, in the past two months, the Chinese Ministry of Foreign Affairs officially explained China’s position on the East China Sea and the South China Sea. The author said that China is taking steps to clarify its understanding of its rights to the nearby seas. This is to prevent any ambiguity in expressions, which might result in a strategic misjudgment. China’s traditional position was “putting aside disputes with joint development.” It seems the old fashioned position introduced uncertainty and openings that could be exploited. The commentary expressed the belief that China needs a peaceful international environment in which to grow. However, “a certain country” might find a few military conflicts between China and its neighbors to be just right. At least it would be much better (for that "certain country") than having to negotiate with China once China’s GDP surpasses US$10 trillion.

Source: Xinhua, March 12, 2012
http://news.xinhuanet.com/herald/2012-03/12/c_131454815.htm

February Home Prices Dropped in 64% of Middle to Large Cities

On March 18, 2012, the National Bureau of Statistics published its February home sales report on 70 of the middle to large size cities in China.

The prices of newly constructed homes dropped in 45 out of 70 cities, as compared to January 2012; 21 remained flat and 4 cities had a price increase that was less than 0.1 percent. In the same period in 2011, the prices dropped in 27 out of 70 cities and 12 were higher in February than in January.

For existing home sales, in February 2012, the prices in 45 out of 70 cities dropped compared to January, while 14 remained flat and 11 had an increase that was under 0.4 percent. In the same period in 2011, prices dropped in 44 out of 70 cities and were higher in 7 cities in February as compared to January.

Source: China News Review, March 18, 2012
http://finance.chinanews.com/house/2012/03-18/3752023.shtml

Chongqing City Leadership and Judiciary Branches Declare Unity with the Central Administration

On March 15, 2012, the city of Chongqing held a leadership conference and announced the removal of Bo Xilai as the Party chief of Chongqing and the appointment of Zhang Dejiang as his replacement. Zhang Dejiang, the Deputy-Head of the Central Organization Department, made the announcement.

Li Yuanchao, head of the Central Organization Department, spoke at the meeting. Li stated that Wang Lijun’s decision to enter the U.S. Consulate was a serious matter and that the central administration is paying close attention to the investigation. The change in the leadership post in Chongqing was the direct result of Wang’s case. Li requested that the entire Chongqing city leadership unify behind the central administration’s decision and cooperate with the transition in order to guarantee the stability of the political and social environment in Chongqing.

Zhang Dejiang also spoke at the meeting. He expressed his solidarity with the Party’s leadership with Hu Jintao as the head; he also declared his decision to persevere on the path of scientific development and the open and reform policy, and to  fight corruption and promote clean governance.

Following the city leadership meeting, the Chongqing High Court and the People’s Procuratorate immediately held a meeting and repeated the key messages from the city leadership meeting. Both judiciary branches declared their solidarity with the decision that the central administration made. They said they would "maintain a high degree of unity with the central administration and firmly safeguard the stability of Chongqing."

Source: Xinhua, March 16, 2012
http://news.xinhuanet.com/legal/2012-03/16/c_122840891.htm

Chinese Ships Entered Controversial Island Region

According to Kyodonews of Japan, on March 16, 2010, ships from Chinese Marine Surveillance Corps. entered the Japanese area of the Diaoyu Islands (which Japan calls the Senkaku Islands). The Japanese Coast Guard followed with warning signals. The Chinese ships left the area 25 minutes later.

Xinhua reported about the same incident and stated that on March 16, Marine Surveillance Corps. ships No. 50 and 66 entered into the Diaoyu Islands (or Senkaku Islands) region to conduct routine surveillance where they encountered the Japan Coast Guard. According to the Xinhua report, they said, “We immediately called for their attention, displayed our identity, inquired about the situation and declared our position.” Xinhua said that they received no response from the Japan Coast Guard which just simply followed after them.

China’s State Oceanic Administration claimed that the routine surveillance was consistent with China’s position on the ownership of the islands and the nearby region. Chinese Marine Surveillance Corps. is an entity that operates under the supervision of State Oceanic Administration.

There have been continuous conflicts between China and Japan over the ownership of Diaoyu (Senkaku) Islands. In September 2010, the Japanese Coast Guard hit a Chinese fishing boat in the region and arrested the boat captain.

[Ed. Media reported in 2010 that the Chinese fishing boat collided with Japanese vessels, after which the Japanese detained the Chinese captain.]  
Source:
Voice of America, March 16, 2012
http://www.voanews.com/chinese/news/20120316-JAPAN-ISLANDS-DISPUTE-142901005.html
Xinhua, March 16, 2012
http://news.xinhuanet.com/mil/2012-03/16/c_122840287.htm
http://news.xinhuanet.com/mil/2012-03/16/c_122840354.htm
New York Times, September 10, 2010
http://kristof.blogs.nytimes.com/2010/09/10/look-out-for-the-diaoyu-islands/

Hu and Xi Met with the Military to Show Solidarity

On March 12, 2012, President Hu Jintao, who is also Chairman of the Central Military Commission, met with the military representatives attending the Fifth Session of the Eleventh National People’s Congress. Vice President Xi Jinping, who is also Vice chairman of the Central Military Commission, was present as well. Hu’s remarks at the meeting emphasized the role that the military plays in maintaining stability. “[The military] should adhere to the overall tone that progress is made amidst stability. … [The military must] pay more attention to safeguarding social stability and the security and stability of the military itself. …” Hu stated that the People’s Liberation Army must unswervingly adhere to the fundamental principle of the Communist Party’s absolute leadership over the armed forces and must ensure, through strict discipline, that all political and military orders are carried out with no impediments.

Source: Huanqiu, March 13, 2012
http://china.huanqiu.com/2012lianghui/news/2012-03/2517693.html

Chinese Scholar: China Needs Quasi-Alliances to Break the U.S. Encirclement

Xinhua published an article written by Wang Haiyun, Deputy Director of the Chinese Association on the History of Sino-Russian Relations. The article discussed how to break the U.S. encirclement of China. It stressed the need to form international alliances to counter how the U.S. encircles China and hinders its rise. The article stated, “The structural conflicts between China and the U.S. have determined that the U.S. strategy to prevent China’s rise will not undergo any fundamental change. … Although the U.S. still mouths many words about developing a cooperative relationship with China, what it does is totally the opposite. This is the serious reality China must face. … [China] cannot continue to maintain the unrealistic illusion of ‘developing a strategic relationship’ with the U.S.”

“Therefore, China must adjust its international strategy as soon as possible. While trying to maintain the stability of the relationship with the U.S. and avoid turning a localized conflict into a large-scale conflict, [China] must actively explore the strategy and means to break the U.S.’ encirclement. One important thought is to change [China’s] ‘non-alliance’ to a ‘quasi-alliance.’ The U.S. targets China in many different ways. We [China] cannot just fight alone.”

“The main points of the ‘quasi-alliance’ strategy include: 1) Continue to state the ‘three-no’-policy of ‘non-alliance, non-confrontation, and not targeting a third country,’ and, in addition, not publicly forming a military alliance for a certain period of time. 2) Strive to create ‘neighboring friendship areas, strategic stability areas, and economic cooperation areas,’ turning them into our neighboring geographic and strategic allies. 3). Form the image of a ‘dependable but unprovokable’ big country, while enhancing our soft power in the neighboring countries.”

Source: Xinhua, March 11, 2012
http://news.xinhuanet.com/world/2012-03/11/c_122815157.htm

What Does China Want in the South China Sea?

Xinhua published a rebuttal to Western comments that China may have softened its stance on the South China Sea issue, which they made in the light of China’s Foreign Affairs spokesperson Hong Lei’s statement that “no countries, including China, have laid claim to the entire South China Sea.” The article holds, “China has never laid claim to the entire South China Sea. Instead China has maintained that it has sovereignty and jurisdiction over the islands in the South China Sea as well as their adjacent waters. This position is consistent and clear. … In fact, [Hong Lei’s] statement is a strong rebuttal to those who, with the ulterior motive to cause confusion, have distorted China’s position on the issue of sovereignty over the South China Sea.” Even countries that have made no claim to sovereignty have taken turns holding joint military exercises or submitting bids for oil and gas in the South China Sea region, thus creating instability.

Source: Xinhua, March 12, 2012
http://news.xinhuanet.com/herald/2012-03/12/c_131454775.htm