Chinascope – Page 984

Scholar: China’s Strategic Oil Stockpile Had a Late Start and May Have Lost Opportunities

Xinhua‘s Huanqiu interviewed Lin Boqiang, the Director of the China Center for Energy Economics Research at Xiamen University. In the interview, Lin commented on China’s strategic oil stockpile. He observed, “Unfortunately, our response to the demand to stockpile oil came late. Had we taken action sooner, we would have been in a better position to take advantage of the international oil price dive that occurred in 2008 and to enhance our stockpile capability.”

The China National Petroleum Reserve Center was established on December 18, 2007. The plan was to complete the build-up of China’s reserves within 15 years in three phases. The first phase has been completed and the second phase is scheduled to conclude in 2012. The third phase is in the design stage and is scheduled for completion in 2020. At the present time, China’s strategic oil stockpile will last 50 days. Lin said that after the second phase, China will have 60 days of oil stockpiled, and when the project is completed the oil reserve is to reach 90 days. He estimated that the U.S. may have about 90 to 100 days of strategic oil stockpiled, and can support well over six months. Currently about 55% of the oil that China consumes is imported.

Source: Huanqiu, February 10, 2012
http://mil.huanqiu.com/Observation/2012-02/2426983.html

Briefings | | February 13, 2012 | Economy/Resources

Changes in Chinese Companies’ Overseas Investments

Xinhua published an article which observed three changes have occurred in 2012 in Chinese companies’ overseas investments. First, there was a change in the investment philosophy from the time of start-up to merger and acquisition. If a Chinese company builds a new business in competition with existing traditional industries, clashes with those local businesses will likely occur; the Chinese business often becomes the “enemy” in the local community. Second, the sectors where investments are made appear to be more diversified, moving from the resources sector to the technology, brand name, and distribution sectors. There have been political complexities associated with the acquisition of resources overseas. These acquisitions have tended to occur in Africa and South America, and have brought geo-political risks that cannot be ignored. The acquisition of technology, brand name, and distribution businesses make up for the weakness in manufacturing in China and also can be easily accepted overseas. Thirdly, recent acquisitions have involved private equity (PE), which is viewed as good progress. With PE’s expertise in investment, their participation has enhanced the success rate of China’s acquisitions.

Source: Xinhua, February 12, 2012
http://news.xinhuanet.com/fortune/2012-02/12/c_111515389.htm

Briefings | | February 13, 2012 | Economy/Resources

There is Nothing Remarkable about the U.S. New Military Strategy

Guangzhou Daily published a commentary criticizing the United States’ new military strategy. “The new U.S. military strategy shows that, as its national power is declining, the U.S. is helpless – it has no choice but to adjust it military strategic objectives and downsize its military forces. At the same time the U.S. demonstrates that it is obstinate in maintaining its superior military power and world hegemony. It is attempting to get away from wars it cannot afford to continue, and is aiming its strategic spearhead very unwisely at its so-called ‘potential adversary’ [China] that upholds peaceful development. … Of course, we do not want to be treated this way, but the U.S. insists. Therefore we do not need to cover up for the U.S. Secondly, there is no need to panic. It is nothing more than containment and constraint, to assemble and win over allies, and to compress our strategic space. We have had that experience before and there is nothing remarkable about it.”

Source: Guangzhou Daily reprinted by Xinhua, February 12, 2012
http://news.xinhuanet.com/world/2012-02/12/c_122689185.htm

Briefings | | February 13, 2012 | US-China Relations

Political Sarcasm on the Internet: What Chinese People Really Think and Feel

[Editor’s Note: Political jokes and sarcasm are a good resource for understanding a country’s political realities, public attitudes, and the nature of problems that affect that society’s stability. An article titled “An Outstanding Student’s Letter to Hu Jintao and Wen Jiabao,” which was published on Weibo.com, combined many of the microblog posts published throughout 2011 that exhibited China’s particular affinity for political sarcasm. [1] Some of these postings can also be found on some official websites, such as the public forums for People’s Daily Online. This indicates that it is not just the public that understands the underlying issues; the government officials acknowledge them as well. [2] A translation of a major part of the article follows. The Chinascope editor has added some helpful information so that Western readers may better understand the specific issues, the references, and the subtlety (although sometimes not so subtle) of Chinese humor.]

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Reports | | February 12, 2012 | Report

Chinese Authorities Investigate Chongching Deputy Mayor and Former Police Chief

In a two sentence report, Xinhua said that the Chinese authorities were investigating why Wang Lijun, one of its top police chiefs spent a day at the U.S. Consulate in Chongqing. “In response to questions, a spokesperson from the Ministry of Foreign Affairs stated that Wang Lijun, the Deputy Mayor of Chongqing entered into the U.S. Consulate in Chengdu on February 6. He stayed there overnight and left the following day. The relevant departments are investigating the incident.”

[Editor’s note: The U.S. State Department confirmed that Wang had visited the Consulate, fuelling speculation that he sought asylum. The 52-year-old deputy Mayor and former Police Chief of Chongqing is closely identified with Chongqing Communist Party chief Bo Xilai, so a potential defection might have serious political consequences. In recent years, Wang developed a reputation for being tough on “organized crime” and on defense lawyers. He is known for his participation in “organ harvesting” where Falun Gong practitioners were arrested and their organs harvested for transplant purposes. The apparent euphemism that Wang was receiving "vacation style treatment" inspired countless tweets and messages on China’s microblogs.]

Source: Xinhua, February 9, 2012
http://news.xinhuanet.com/politics/2012-02/09/c_122681189.htm

Briefings | | February 10, 2012 | Government/Politics

China Will Determine Whether the U.S. Military Can Maintain Its Position

The International Herald Tribune published an article on the Xinhua website proposing a more hard-line stance on the U.S. military presence in the Western Pacific Region. The article stated, “There are a number of opinions about the U.S. intention in maintaining a military presence in the West Pacific region. … The fundamental question comes to whether it is indeed targeting China.”

“At the present, analyzing the strategic intention of the U.S.’s military adjustment in the Western Pacific is not the most important task. … To overturn the trend of the U.S. strengthening its military power, the U.S. might meet an invincible counter-threat, forcing it to make a choice between starting a large-scale military confrontation and admitting that the U.S. is not invincible.”

The article concluded, "The key that China must remember is that the way to avoid being threatened is by no means trying to meet the requirements of the threatener. The threatener’s intention always changes and its requirements increase.”

Source: Xinhua, February 6, 2012
http://news.xinhuanet.com/world/2012-02/06/c_122657115.htm

Briefings | | February 10, 2012 | US-China Relations

Radio Free Asia: China to Set up Party Organizations for Mainland Microblogging Sites

Quoting from the Taiwan based United Daily News, Radio Free Asia reported that, immediately after the Chinese New Year holidays, the Communist Party’s propaganda authorities ordered that Party organizations be established for all microblogging sites. The websites involved, including Sina, Tencent, Sohu, and Netease, have already received the relevant instructions. The report quoted sources as saying that, in the future, the Party organizations will be responsible for major microblogging policy guidlines and decision-making, and will resolutely implement the commands of the CCP’s Central Propaganda Department, the State Council, and the provincial and municipal network management offices. At the same time, starting from March 16, the above mentioned four major microblogging sites will implement real-name registration. Anonymous users can only view contents but will not be able to post or forward articles.

Source: Radio Free Asia, February 7, 2012
http://www.rfa.org/mandarin/yataibaodao/ql1-02072012094100.html

Briefings | | February 9, 2012 | Information/Technology

China’s Reaction to Trump’s Election Win

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