Geo-Strategic Trend - 310. page

The International Herald, a newspaper under the Xinhua News Agency, published an article on June 22 stating that U.S. didn’t have much hope for a “Green Revolution” in Iran in the first place. “Was the U.S. tired of the games of changing ‘colors’ for other countries? Of course not. The U.S. has other reasons for not starting a ‘Green Revolution’ in Iran.”

First, “Washington has been fully retreating from the Middle East.” “Under the strategy of avoiding conflict and seeking peace, the U.S. would not rashly test the waters in Iran.” “Second, even if Obama wanted to change the color in Iran, he couldn’t make it happen” because “U.S. has no agents in Iran” and “of course, the empty wallet is another reason.” “Third, there is no reason for the U.S. to have confidence in Mousavi and his ‘reformists.’” “The last reason is a conspiracy theory. Actually the U.S. needs Ahmadinejad more than Mousavi … because the U.S. needs an enemy in the Middle East. Where can it find a ‘better’ enemy than Ahmadinejad?”

Source: International Herald, June 22, 2009
http://news.xinhuanet.com/herald/2009-06/22/content_11580320.htm

Outlook Weekly, in the 23rd issue of 2009, published an article by Zhu Kechuan, a researcher in Xinhua Research Center for World Affairs, regarding the current situation of the Korean Peninsula. It criticized the U.S., Japan, and South Korea’s approach to North Korea. Zhu argued that right now, the U.S. is falling into the mire of financial crisis and is also facing the hard-to-clean mess of Iraq and Afghanistan. "The U.S. government should think about that; it is not an easy thing to use hegemonism to ‘fix’ another country no matter how big or small and how rich or poor that country is." Zhu also stated, "Japan should also be clear: You can’t cheat the world to wash off the historical responsibility for Korea or take this opportunity to break through the constraint of ‘Peace Constitution’…South Korea should reflect too: What benefits do the government and people get from its changing the policy of national reconciliation since last year?"

Though China is always a strong backer of North Korea, the article also criticized North Korea: "What is the best way to achieve the dream of a ‘strong big country?’ Using ‘super-tough’ to respond to other countries’ ‘tough’ will get North Korea nowhere. Nuclear weapons can indeed scare people, but they still failed to prevent the collapse of the Soviet Union."

Source: Outlook Weekly, 23 rd issue of 2009
http://lw.xinhuanet.com/htm/content_4768.htm

The International Herald Leader under Xinhua reported an Iranian government release that China National Petroleum Corp. (CNPC) and Iran had signed a $4.7 billion dollar contract on June 3 for the upstream development of phase 11 of the South Pars natural gas field. “The aim in implementing the project will be to produce 50 million cubic meters a day of natural gas and other products.” The implementation will begin in three months. Xinhua states that the agreement with CNPC was in response to the French oil company Total’s delays in finalizing negotiations. “Deputy Oil Minister for Production Affairs Seyfollah Jashnsaz expressed that the concluding the agreement fully demonstrates that the sanctions the West has imposed on the Iranian oil and gas industry has failed and has no effect.”

Source: Xinhua, June 8, 2009
http://news.xinhuanet.com/herald/2009-06/08/content_11506744.htm;
See also Islamic Republic News Agency at
http://www.irna.ir/En/View/FullStory/?NewsId=527336&IdLanguage=3

On June 1, 2009 the Study Times wrote that China should push Reminbi regionalization starting from border trade settlements and direct investment in neighboring countries. Study Times is the journal of the School of the CCPC. The article believes that this step is the key to Asian economy. In doing so, “China should leverage the existing bilateral currency settlement agreements with Korea, Hong Kong and Malaysia to further deepen and expand RMB cooperation in the region. Moreover, China should take advantage of financial markets in Hong Kong in engaging in RMB offshore business, thus making Hong Kong the hub for distribution of RMB to neighboring countries.”

Source: Study Times, June 1, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=1&id=2685&nid=9756&bid=4&page=1

According to Outlook Weekly, a Xinhua publication, a Government think tank proposed that China spend 500 to 1, 000 billion yuan of its foreign exchange reserve on Africa. The Director of the Center for Economic Security Studies of China’s Institute of Contemporary International Relations wrote that this funding infusion may be implemented through “direct investment, donations, low or zero interest loans, export financing or the Islamic model of zero interest in exchange for profit sharing.” The proposed primary areas of investment are infrastructure projects, improvement of sanitary conditions, education and manufacturing.

Source: Outlook Weekly, June 1, 2009
http://news.xinhuanet.com/politics/2009-06/01/content_11467829.htm

Lianhe Zaobao in Singapore published an article by He Maochun, an International Relations Professor at Tsinghua University. He argued that neither of China’s hard power, soft power, or smart power is strong enough to make it a super power. Thus it should adopt a smart foreign diplomacy strategy to unify internal forces, align neighboring forces, and borrow far-away forces to counter Western countries’ pressure and containment.

He outlined six steps: 1. Develop a Greater China economic zone covering China, Taiwan, Hong Kong, and Macao. 2. Humbly rejuvenate the Great East Asia Chinese culture zone (China, Korea, and Japan). 3. Strengthen the political and economic power of the Shanghai Cooperation Organization. 4. Expand cooperation with the Association of South East Asian Nations (ASEAN) member countries. 5. Steadily move into Africa and Latin America. 6. Using the opportunity of fighting the global financial crisis with Western countries, try to resolve the following issues: stop arms sales to Taiwan; stop supporting the “separatists”; remove the technology and arms embargo for China; stop the “discrimination” against China’s overseas investments and protect the safety of China’s capital.

Source: Lianhe Zaobao, May 28, 2009
http://www.zaobao.com/special/china/sino_us/pages7/sino_us090528a.shtml

China News published a report that Premier Wen Jiabao would go to Prague, Czech Republic on May 20, 2009 for the eleventh China-EU Summit. It stated that China and the EU are closely embracing each other.

The second China-EU High-level Trade and Economic Dialogue was held in Brussels on May 8, 2009. China sent senior officials from the Ministry of Commerce, Ministry of Foreign Affairs, National Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Housing and Urban-Rural Development, Ministry of Transportation, General Administration of Customs, and General Administration of Quality Supervision, Inspection and Quarantine. The EU representatives were from the fields of business and industry, transportation, internal market, agriculture, consumer protection, customs, environmental protection, information society, and competition. With such a large number of participants, the meeting reached agreements in five areas, including implementation of the general agreement from G-20, anti-protectionism for trade and investment, encouragement for business to participate in each party’s economy development plan, joint support to small to mid-sized business development, and energy development and environmental collaboration.

China is the EU’s second largest trading partner.

Source: China News, May 17
http://www.chinanews.com.cn/gn/news/2009/05-17/1695184.shtml

"After Obama’s smile (during his G20 trip and Europe/Asia tour), if no concrete action follows up, maybe comic cartoons is the only place for his ‘signature smile’." Stated a commentary by the International Herald Leader on April 14.

The article said that Obama’s signature smile was successful but failed to solve problems. "The smiles cover up the embarrassment of the US and its unwillingness to take additional responsibilities," the article commented on the change of the body language of the current president,"… we will expect to see the US to be more modest and self-restrained as well as being flexible and smart… How long can his smiles last under the current domestic situation?" The article asks, "In the eyes of those conservative forces in the US, US interest takes superiority over others. It will not allow its hegemony to be challenged … The attack from the conservatives against Obama’s bow to the King of Saudi Arabia at G20 shows that it is not easy for the US to set down its haughty airs and smile with sincerity to the world."

Source: Xinhua, April 14, 2009
http://news.xinhuanet.com/world/2009-04/14/content_11183659.htm