Chinascope – Page 996

Xinhua: China’s First Oil Contract with Afghanistan

Xinhua cited a report from the Russian Izvestia that China National Petroleum Corporation (CNPC) won a contract with the Afghanistan government for the development of oil blocks in the Amu Darya basin. The CNPC contract will also include construction of oil refineries in northern Afghanistan. Other bidders include companies from the United States, Britain, Australia, and Pakistan. According to the terms of the contract, CNPC will turn 70% of its profits over to Afghanistan. Xinhua reported that, according to a Russian political scientist, Kabul is seeking countries that it can rely on after the withdrawal of NATO troops. “Afghanistan does not want to give its wealth to the NATO countries which made a lot of promises, but have not done anything for the economic development of Afghanistan.” Xinhua reported that the Russian political scientist stated that India and China have filled the void.

Source: Xinhua, December 28, 2011
http://news.xinhuanet.com/world/2011-12/29/c_122503690.htm

Briefings | | December 30, 2011 | Geo-Strategic Trend

Beidou Enables PLA to Get Rid of Dependence on U.S. GPS

According to China News Service, on December 27, China’s second generation of the Beidou satellite navigation system became operational with coverage of China and its neighboring regions. The Beidou system, currently operating as a free trial, offers positioning accuracy to within 25 m (82 ft). Plans include improving accuracy to within 10 m (33ft) next year, at which time six more satellites will be put into orbit and the system will offer services to customers in the Asia-Pacific region. The global system should be finished by 2020 and consist of 35 satellites.

The report said the Beidou system has a very significant military value. With its completion, the PLA will rid itself of its reliance on the U.S. GPS (Global Positioning System). China’s military strength will be greatly enhanced. The report claims that Beidou even outperforms the GPS in certain military functions. For example, Beidou’s short message capability allows the “group call” function that enables accurate commands and coordination. The military commanders can use the Beidou system to control the position of troops at any time and pass relevant orders.

Jin Yinan, a director at China’s National Defense University, said that letting the Beidou system be put into use as early as possible will play a huge role in enhancing national security. It is more significant than manned space flight and the Chang’e lunar exploration program.

Source: China News Service, December 28, 2011
http://www.chinanews.com/hb/2011/12-28/3564478.shtml

Briefings | | December 29, 2011 | Defense/Military

PLA Undergoing Restructuring û Four New Departments Established

Legal Evening News reported that, within a period of one month, the People’s Liberation Army established four new departments. According to the military experts that Legal Evening News interviewed, the move is indicative of further military reform and transformation. On November 22, the PLA established the Strategic Planning Department; on December 12, it established the Research Center for Non-war Military Operations under the Academy of Military Sciences; on December 20, the Research Center for National Policy under the Academy of Military Sciences; and on December 21, the Military Training Department under the PLA’s General Staff Department.

With respect to the two above-mentioned research centers that are under the Academy of Military Sciences, the one on Non-war Military Operations will provide decision-making advisories to the Party’s military leaders, engage in fundamental research on non-war military operations, and establish the related theoretical system. The one for National Policy will participate in the draft of national white papers and prepare annual strategic assessments of the national security environment.

In July 2011, the largest military academy reform in recent years took place when 27 military institutes were consolidated into 14.

Source: Legal Evening News reprinted by Xinhua, December 23, 2011
http://news.xinhuanet.com/mil/2011-12/23/c_122471008.htm

Briefings | | December 29, 2011 | Defense/Military

Ding Yuanhong: The U.S. Should Stop Badmouthing the Euro

Ding Yuanhong, the former Chinese ambassador to the E.U., published an opinion article in Jiefang (PLA) Daily, which Xinhua recently republished, asking the U.S. to stop badmouthing the Euro. The article hinted that the U.S. is plotting to destroy the Euro so that it can further solidify the dominance of the U.S. dollar.

The article said, “Since the European debt crisis started, the involvement and interference of the U.S. has been very obvious. The U.S.’s active involvement with its financial tools, the three big debt rating facilities adding fuel to the fire, and the media spreading and playing up the problems have further aggravated the crisis. The American company Goldman Sachs which is partially responsible for the Greek debt problem came to the front to disseminate the view that it is inevitable that the Euro will collapse within five years. Each time the E.U. Summit discussed how to handle the E.U. debt crisis, the three American debt rating agencies Standard and Poor’s, Fitch, and Moody were unusually active, downgrading the credit ratings of the related E.U countries, in order to shake market confidence in the Euro. Even former Greek Prime Minister Papandreou’s sudden announcement, just before the G20 Summit, that he would call for a referendum on the E.U. bailout program, was rumored to have happened after his U.S. visit. As a matter of fact, every person with clear eyes can see that the actions the U.S. has taken were intended to destroy the Euro and eliminate the Euro’s challenge and threat to the U.S. dollar’s dominant position.”

Source: Xinhua, December 23, 2011
http://news.xinhuanet.com/world/2011-12/23/c_122470547.htm

Briefings | | December 29, 2011 | Geo-Strategic Trend

China Issues Anti-Corruption Report

On December 23, 2011, People’s Daily Online published an article titled, “In China the Corruption of Individual Officials Is Spreading; Now Whole Groups of Officials Are Colluding in Corruption.” This was the conclusion of "China’s Anti-Corruption Report No.1," issued by the Chinese Academy of Social Sciences. According to the report, the means of corruption are more hidden, with many new guises; corrupt officials seek short-term illegal gains such as enjoying the pleasures of consumption, as well as long term ones, such as possessing capital. Corruption can be financial, or involve resources or contracts. The scope of corruption runs from the gamut from the economic, political, and judicial fields to the social, cultural, and educational, and even overseas.

Source: People’s Daily Online, December 23, 2011
http://politics.people.com.cn/GB/99014/16697289.html

Briefings | | December 28, 2011 | Grapevine

China’s Central Bank Chief Criticizes the World’s Three Major Credit Rating Agencies

Zhou Xiaochuan, the Director of the People’s Bank of China, spoke at China’s 3rd Economic Outlook Forum, which was held in Beijing on December 25, 2011. Zhou criticized the world’s three major credit rating agencies, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings, because they lack the capability of making predictions. According to Zhou, these credit rating agencies tend to exaggerate problems or achievements. If a company has a problem, these agencies make it look worse; if a company does well, they flatter it, making it into more than it is. Therefore, Zhou urged that China reduce its dependence on overseas credit rating agencies and support the development of China’s own, home-grown rating agencies.

Source: China National Radio, December 26, 2011
http://www.cnr.cn/jlfw/cj/201112/t20111226_508978096.shtml

Briefings | | December 28, 2011 | Economy/Resources

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