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Friday, 27 December 2013

The Founding Father

Today, China celebrates the 120th birthdate of the founding father of the People’s Republic — Chairman Mao Zedong. No one looms larger in the narrative of modern China. As the nation continues its ascendency to reclaim its position as a great power, Mao’s legacy is central to its perception in the eyes of the world. The ultimate judgment rendered by history, if such a thing is possible for a man of his significance and complexity, remains far into the horizon. But to understand the state of contemporary China and its relations to the world, some fundamental misconceptions need to be addressed.


Eric Li The Founding Father

Eric Li



The standard narrative in the West is that the first 30 years of the People’s Republic under Mao’s leadership was an unmitigated disaster and the party-state was only able to save itself by repudiating his ideological rule and taking the country in an opposite direction.


But this is false. Many segregate the party’s 64-year leadership into two thirty-year periods: the first from 1949 to 1979, mostly under Mao, and the second from 1979 to the present, starting with Deng Xiaoping’s dramatic reforms. No doubt Deng’s reforms corrected many previous policy mistakes and delivered enormous successes. Some 650 million people have been lifted out of poverty in one generation and the country went from a poor agrarian economy to one of the world’s preeminent industrial powerhouses.


But without the foundation built in the first 30 years the accomplishments of the second 30 years would not have been possible. In the former, the Chinese Communist Party under Mao’s helm used its centralized political authority to mobilize limited national resources and built the basic industrial and human infrastructures of a modern nation. A few statistics demonstrate the significance of that period. In 1949, industrial infrastructure was negligible. Electricity availability outside small urban areas was near zero. Literacy rate was below 20 percent. Immunization rate was virtually non-existent and average life expectancy 41 years old.


At the eve of Deng’s reforms in 1979, China had built the framework of basic industrial infrastructures, though still very limited. Extensive national and local grids with about 10,000 newly built hydroelectric dams increased electricity coverage to over 60 percent even in the poorest rural areas (it is now near 100 percent). Literacy rate reached an astonishing 66 percent, meaning well over 80 percent of youth — among the highest among poor developing nations (now 92 percent). Hundreds of millions of people were immunized, nearly 100 percent of children at the age of one, and average life expectancy reached 65 (now 74). In fact, by 1978, China’s human development index was already closing in on much richer developed nations (UNDP Human Development Report 1990).


A still poor but relatively educated and healthy population with basic infrastructure set the stage for the country’s miraculous takeoff. And all this was achieved with very little resource under an international embargo. Certainly, unmitigated disasters did occur, such as the Great Leap Forward and the Cultural Revolution, but to define the entire period as such would be grossly mistaken.


Mao’s most significant political legacy was Chinese national independence. After a century of endless civil conflicts and dismemberments in the hands of foreign aggressors, the establishment and consolidation of the People’s Republic under Mao’s leadership at last firmly placed the destiny of the nation into the hands of the Chinese themselves. This ability enabled China to then engage the post Cold War globalization on its own terms. Many developing countries were not so fortunate and were swallowed by globalization instead of taking advantage of it. It should not be denied that the Chinese people paid a heavy price for this independence as Mao’s catastrophic blunders caused deep suffering and severe crises. But the People’s Republic survived. The post-Mao dividends have been significant and in all likelihood will continue for generations to come.


Last but not least, the characterization of Mao as an extreme ideologue is misplaced. The widely accepted narrative in the West, and inside China — to some extent, is that the first 30 years under Mao was ideological and the second 30 years launched by Deng is pragmatic. And this transition from an ideologue to a reformer put China on the road to success.


No doubt China came under destructive spells of ideological fervor at several points during Mao’s rule. But the fact is Mao was a pragmatist through and through. The world should not forget it was Mao who led China out of Soviet domination as early as in the late fifties. To decisively walk away from a newborn nation’s ideological mentor who was at the zenith of its superpower era was daring, to say the least. But Mao didn’t stop there. At the height of the Cold War, he reached across the ideological divide and built a de facto alliance with the United States to counter the Soviets. This in turn paved the way for China’s engagement with the West, which was one of the strongest propellers of Deng’s economic reforms.


All men of great historical impact were complex and their legacies mixed. Yet we yearn for judgments that are simple and unequivocal. As Thomas Carlyle once said, “the history of the world is but biography of great men.” Then to misjudge them is to misjudge history and risk misguiding the future. Mao Zedong, whose life left indelible marks on the lives of more than a billion people and changed the trajectory of the world, is to be studied with care and thoughtfulness, not to be judged with moral expediency.


Eric X. Li is a venture capitalist and political scientist in Shanghai. This article was published in the South China Morning Post on December 26, 2013.






Eric X. Li, a venture capitalist and political scientist in Shanghai via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/AjLjZ-Wc3GQ/

Sunday, 22 December 2013

Apple inks iPhone deal with China Mobile

Apple says it has reached a deal to bring the iPhone to China Mobile, the world’s biggest phone carrier.


The deal could boost sales of the iPhone in China. Demand for iPhones, once hugely popular in China, have slumped there as lower-priced rival smartphones from Samsung and Chinese companies entered the market.


The iPhone 5s and 5c will go on sale in Apple stores and China Mobile stores beginning Friday, January 17. Customers can register for phones starting Wednesday December 25.


The companies didn’t announce pricing or the terms of their agreement.


The iPhone, while popular around the world, has faced tough competition in recent years from cheaper smartphones running Google’s Android software. Collectively, Android phones far outsell Apple’s iPhone.


State-owned China Mobile has more than 750 million mobile accounts.






China Daily via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/QnAoMhrfvGM/

Mainland, Taiwan press vow to raise global competitiveness through cooperation

Media organizations from the Chinese mainland and Taiwan on Sunday pledged to increase the global competitiveness of Chinese press through deepened cooperation and increased exchanges.


Media organizations attending a cross-Strait press forum said in a joint proposal that their reports will reflect the mainstream public opinion on both sides of the Taiwan Strait and they will create a media atmosphere conducive to cross-Strait peaceful development.


Yu Zhengsheng, chairman of the National Committee of the Chinese People’s Political Consultative Conference, spoke highly of the media’s role in improving cross-Strait relations and increasing mutual understanding of people on both sides of the Taiwan Strait.


He called on media organizations from the mainland and Taiwan to strengthen communication and cooperation and fulfill their social responsibilities.


The forum, attended by representatives from 70 newspapers, news agencies, television and radio stations, was sponsored by China Central Television.


According to the proposal, which was released after the forum, media organizations pushed for the exchange of media’s permanent offices on both sides of the Taiwan Strait and the establishment of a friendship association that will serve as a platform for regular media exchange.


The press also promised to embrace innovation and further cooperation in the spheres of new media.


During the forum, the Chinese mainland’s chief of Taiwan affairs office called on the media to post more “positive and objective” reports and pool “positive energy” to boost the peaceful development of cross-Strait relations.


Zhang Zhijun, director of the Taiwan Work Office of the Communist Party of China Central Committee, urged the press to seek common points while reserving differences and give more coverage to traditional Chinese culture.


Zhang, also director of the Taiwan Affairs Office of the State Council,said the mainland will adhere to its fundamental policies toward Taiwan and comprehensively promote the peaceful development of cross-Strait relations.


Nie Chenxi, deputy director of the State General Administration of Press, Publication, Radio, Film and Television, encouraged press from both sides of the Taiwan Strait to increase dialogue and cope with challenges brought about by the ongoing information technology revolution.


Speaking on behalf of the event sponsor, CCTV president Hu Zhanfan advocated the exchange of permanent offices for media organizations and “pragmatic collaborations” on programs, advertisements and academic cooperation.


Hu also proposed joint promotion of Chinese culture and cooperation in new media.






Xinhua News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/j1rN6YGf5mw/

CIPR courts ‘would be helpful’

Judges with specialized knowledge in growing need as caseloads increase


China is moving in the right direction by pledging to set up dedicated courts for intellectual property rights cases, a senior United Nations official has said.


Proper legislation for IPR protection is already in place, and specialized courts will help judges become more proficient in handling complex cases, Johannes Christian Wichard, deputy director-general of the World Intellectual Property Organization, said in an interview in Singapore.


“It is whether you do it in a specific court or do it by assigning IPR cases always to the same one chamber within a court,” he said. “IPR issues concern quite a specific area of the law. They can be quite complex. For example, if you deal with a patent dispute, you don’t have to be a technician but you must have the technical understanding.”


Under the present legal framework, IPR lawsuits are heard by a tribunal for civil trials or by a court’s IPR division.


In a reform blueprint by the Third Plenum of the 18th Central Committee of the Communist Party of China in November, leaders vowed to explore ways of setting up dedicated IPR courts.


The proposal came amid a surge in IPR lawsuits and a growing awareness of intangible assets.


In a white paper released in April, the Supreme People’s Court said courts nationwide handled 83,850 civil lawsuits involving IPR in 2012, up 44.1 percent year-on-year.


There is a clear trend worldwide for judges to be at least specialized in IPR issues, even if a country has not set up a dedicated court, the UN official said.


Germany, for example, has a specialized federal court dealing with validity cases and a limited number of commercial tribunals to handle patent-related infringement disputes.


“They are very popular,” Wichard said, explaining they decide more patent infringement disputes than the courts in the other European Union nations combined.


“Even cases not really involving two German companies, but just having one element in Germany, are tried in the courts because people get good judges and a reasonable price,” he said.


The United States, Japan, Russia and Finland also have courts that handle IPR issues, especially patent disputes, which require profound technical knowledge.


The possibility of China establishing IPR courts has been discussed for several years, but the Supreme People’s Court has not released a timetable on when they may be rolled out, according to Xinhua News Agency.


Legal experts said a special court to handle the rising number of disputes is necessary. However, they also warn that such a move may result in major power shifts between administrative agencies and the Ministry of Justice.


“The courts will be very helpful because at least the court decisions will be more consistent,” said Cyril Chua, a partner of Singapore-based international law firm Bird & Bird.


Ha Si, a lawyer in Beijing who covered the IPR sector for nearly 20 years, said judges in China’s developed areas are more experienced in dealing with IPR cases than those in underdeveloped regions.


“Founding a new court will help unify decisions on key issues for trial, paving the way for proper enforcement,” she said.


China has more than 30 high courts at provincial level that are responsible for dealing with IPR appeals in their regions.


Li Shunde, deputy director of the Chinese Academy of Social Sciences’ Intellectual Property Center, said the ability to enforce decisions can vary considerably.


To reduce the gap, “we proposed creating a special IPR court to handle appeals, something like the US Court of Appeals for the Federal Circuit”, Li said.


However, he added, given the growing number of IPR cases, it could be too much for just one unified court of appeal to deal with cases from around China, so another option is to establish four to five courts in different regions.


By Wang Zhenghua in Singapore and Wang Xin in Beijing ( China Daily )






Mandy Peng via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/_eccwC7Ikco/

Friday, 20 December 2013

China to make new bid to join global procurement pact in 2014

China has agreed to make a revised offer to join a global agreement aimed at creating a level playing field for foreign companies competing for government contracts, senior U.S. and Chinese officials said on Friday.


Lack of access has been a sticking point with trade partners since China joined the World Trade Organisation (WTO) 12 years ago.


Read Full Article HERE






Sui-Lee Wee, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/kn43JDn4QPI/

China to Open More of Government Market to Foreign Firms

For nearly three decades Senator Max Baucus (D., Mont.), soon to be tapped by the White House as the next U.S. envoy to China, has been one of Congress’s most vocal advocates for opening up trade relations with China.


To be sure, the chairman of the Senate Finance Committee, which has jurisdiction over trade issues, has salted his China advocacy with criticism of the country’s economic and human-rights policies. But Mr. Baucus was one of the first U.S. lawmakers to push for normalized trade relations with China, was the chief backer for Beijing’s entry into the World Trade Organization, and was among those who opposed 1992 legislation that would have imposed tough conditions on renewing the country’s “most favored nation” trade status after the 1989 Tiananmen Square crackdown.


Read Full Article HERE






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China to expand presence in Antarctica with new research bases

China will expand its presence in Antarctica by building a fourth research base and finding a site for a fifth, a state-run newspaper said on Thursday, as the country steps up its increasingly far-flung scientific efforts.


Chinese scientists are increasingly looking beyond China for their research, including sending submersibles to explore the bottom of the ocean and last weekend landing the country’s first probe on the moon.


Read Full Article HERE






Ben Blanchard, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/rAqC0fdGYdE/

China’s Guangdong Starts World’s Second-Biggest Carbon Exchange

China’s southern province of Guangdong began trading permits on the world’s second-biggest emissions-trading system at the highest price in the nation.


Seven trades covering 120,029 metric tons of carbon emissions were completed at 60 yuan ($9.90) to 61 yuan a ton on the first day at the China Emissions Exchange, it said yesterday in an e-mailed statement.


Read Full Article HERE






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Thursday, 19 December 2013

Israeli president appreciates China’s role in Mideast peace process

Israeli President Shimon Peres on Thursday appreciated “China’s constructive support” in efforts to bring peace between Israel and the Palestinians.


When meeting with Chinese Foreign Minister Wang Yi, Peres said peace needed to be made through taking initiatives as it would not happen on its own or by waiting.


Wang voiced his hope that at this critical moment of the Israeli-Palestinian peace talks, Israel would make a right decision, push forward the talks and lay a solid foundation for peace in the Middle East.


Commending China’s economic and social development, the Israeli president said the two countries were developing and strengthening relations in various areas.


“China is the greatest model in recent history that millions of people escape poverty with their own hands and minds,” he said. “The Middle East can and should learn from your experience.”


Peres noted that Israel faced not only grave threats but also great opportunity. The threat of a nuclear-armed Iran must be met but the great chance for peace must not be ignored.


As for the Iran nuclear issue, Peres hoped China, as a key player in the global arena, could play a crucial role.


Wang, the first Chinese foreign minister in Israel since 2009, visited the Yad Vashem Holocaust Memorial museum and joined a seminar presented by both Israeli and Palestinian academics on Thursday.


Wang will leave Israel Friday for Algeria to continue his five-nation Middle East trip, which will also take him to Morocco and Saudi Arabia. He has visited Palestine.






Xinhua News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/G6Bh9NGAQSk/

China, U.S. are rivals, not enemies: survey

A joint survey conducted by Chinese and U.S. institutions revealed that people in the two countries believe China and the United States can be rivals and partners at the same time.


Only a small number of respondents — no more than 15 percent on either side — said the two sides are enemies, according to a report in Thursday’s overseas edition of the People’s Daily, the flagship newspaper of the Communist Party of China.


Many Chinese people blamed U.S. arms sales to Taiwan as a major reason for tensions in bilateral relations.


The survey, jointly conducted by Beijing-based China Strategic Culture Promotion Association (CSCPA) and the Carnegie Endowment for International Peace in Washington, polled both the general public and “elite groups” in the two countries.


The “elite groups” included five categories: figures in political, commercial, academic, military and media circles.


Respondents in the two countries showed a low level of trust toward each other — lower than the trust they felt toward other countries. However, most said they believe China-U.S. relations remain “fine,” the newspaper report quoted Luo Yuan, a Chinese expert on international affairs and CSCPA vice president, as saying.


Both sides think the China-U.S. relationship is one of rivals and also partners, or somewhere between the two, while only a small portion of respondents said the two sides are enemies, it said.


The survey revealed that the younger generation of Americans showed more trust toward China than the older generation, but noted that the trust of the country’s entrepreneurs, a group with great weight in the countries’ bilateral ties, has declined over the past five years.


The survey explained that the decline may partly be due to Americans’ fear that market barriers set by the Chinese government will grant unfair advantages to Chinese businesses. Another reason for the decline may be pressure from Chinese enterprises’ ambitions to enter upstream industries, a more lucrative market previously dominated by Western companies.


According to the survey, the two sides did not see eye to eye on the role the two countries are playing and should play on the international stage.


Most Americans surveyed said they think the United States has taken other countries’ interests into account when deciding its foreign policy, but said the Chinese will not do so. The Chinese respondents gave an opposite opinion: China has been considerate in its foreign policy, and the United States has not.


A majority of Americans in the “elite group” said a world led by the U.S. will be more stable, while Chinese elites advocate balanced power to maintain stability.


This discrepancy, the newspaper said, may constitute a serious challenge to China-U.S. ties, especially when it comes to issues in the western Pacific, where China is rapidly increasing its presence.


According to the survey, most Chinese respondents from both “public” and “elite” categories regard the United States as a major threat to China. However, Americans believe “international financial turbulence,” “Islamic extremism” and the “nuclear programs by Iran and the Democratic People’s Republic of Korea” are more dangerous than a rising China.


The newspaper said one result that surprised many Chinese experts was that although 56 percent of the U.S. public supported a hardline policy in trade with China, the trade issue was not on the priority list of most American elites. Instead, most American business elites and veterans identified Internet attacks, allegedly from China, and intellectual property rights problems as their biggest concerns regarding China.


Meanwhile, Chinese respondents also worried that the United States, which plays a leading role in the Internet realm, might take destructive measures against China’s infrastructure if the two countries were to be involved in a conflict, the report said.


Chinese people also see U.S. arms sales to Taiwan as a major reason leading to tensions between the two countries. This blame is stronger among Chinese officials, according to the survey.


“It is important to recognize the other side’s crucial interests, because although there are still some implacable issues, the two sides may know each other’s ‘bottom line’ and respect it,” the report quoted Shi Yinhong, a Chinese international affairs expert, as saying.


The survey was carried out in China and the United States, with 1,004 adults and 305 members of “elite groups” in the United States, and 2,597 adults and 358 elite members in China polled.






Xinhua News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/ME3g6s6Fx64/

China to invest heavily in air pollution treatment

China needs to invest 1.75 trillion yuan (290 billion U.S. dollars) for its air pollution treatment plan from 2013 to 2017, an environment expert has estimated.


Wang Jinnan, deputy head of the Chinese Academy for Environmental Planning, said at the 4th Caixin Summit in Beijing that the investment would drive up GDP by nearly 2 trillion yuan and create over 2 million jobs.


According to Wang, 36.7 percent of the investment, or 640 billion yuan should go on cleaning up industry, followed by 490 billion yuan (28.2 percent) on cleaner energy sources. Cleaning up motor vehicles will absorb 210 billion yuan.


The State Council issued the Air Pollution Prevention and Control Action Plan in September to control PM2.5 (airborne particles of less than 2.5 microns diameter).


The action plan requires PM2.5 in populated regions and metropolises to be reduced significantly by 2017. The annual average of PM2.5 in Beijing would be expected to drop to 60 micrograms per cubic meter.






Xinhua News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/YcxMi1kqKc8/

Hershey hits sweet spot with deal for Golden Monkey

The Hershey Co, North America’s largest quality chocolate producer, has announced plans to acquire 80 percent of snack producer Shanghai Golden Monkey Food Joint Stock Co Ltd.


The acquisition will be carried out through Hershey Netherlands BV, a wholly owned subsidiary. It’s expected to be completed in the second quarter of next year, subject to approval from Chinese regulators and shareholders.


Terms of the transaction weren’t disclosed, but Hershey said it will make a cash payment for the stake. SGM will operate as a stand-alone business, and its senior management team members will retain their roles.


“SGM is the type of business we’ve been focusing on for potential M&A. It fits Hershey’s acquisition criteria: It is located in our primary international market, China; it is a pure play confectionery and snacks company; and it has distribution into channels where Hershey products have yet to penetrate,” said Humberto Alfonso, president of international operations at Hershey.


“Additionally, the company has a strong history of innovation and product quality as evidenced by the outstanding reputation of its core brand, Golden Monkey, which has been nationally recognized as one of China’s most iconic brands,” he said.


Rumors of the acquisition began to circulate about one year ago.


The acquisition is not expected to affect Hershey’s previously announced adjusted earnings per share-diluted outlooks for 2013 and 2014, which were released on Oct 24. Excluding integration and transition costs, Hershey expects the acquisition to be slightly accretive on an adjusted basis in 2014.


“Hershey and SGM have similar cultures and strategies related to the building and selling of brands, and we’re pleased that a company of Hershey’s stature sees the potential in our great company.


“We look forward to working with Hershey and leveraging the resources that both of us have to offer to the great benefit of Chinese consumers, who will have even more choices for high-quality products after this transaction,” said Zhao Qisan, founder, chairman and general manager of SGM.


Industry insiders said that the acquisition will help SGM integrate its businesses, explore more distribution channels and improve marketing.


Hershey’s sales totaled about $7 billion in 2012. The privately owned SGM has seen double-digit growth in its net sales this year, which may reach $225 million.


Statistics from market research firm Euromonitor International show that Hershey has been selling mainly chocolate products in the Chinese mainland, with just a 2.2 percent market share in 2012. Competitor Mars Inc held a 43 percent market share.


SGM, whose products are mainly offered in second- and third-tier Chinese cities, abandoned a plan to go public in 2008.


By Shi Jing in Shanghai ( China Daily)






China Daily via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/j4-Av5qpuQo/

New envoy ‘must find right mix’

Max Baucus, expected to be nominated as the next US ambassador to China, will have to play a balancing act between implementing Washington’s policies and addressing Beijing’s concerns over its strategic interests, observers said.

Baucus, a long-time Democratic senator who is chairman of the Senate Committee on Finance, is expected to be nominated by US President Barack Obama to replace Gary Locke, who is leaving office early next year.


The news of Baucus’ impending nomination, reported by Politico, came as a surprise to some China watchers, because Baucus’ links with China — including his Senate role in handling trade disputes — seem far less obvious than his predecessor’s.


The Montana native has served in the Senate since 1978 and has been the chairman of the powerful Finance Committee since 2007. He also heads and serves on several other committees, such as taxation, agriculture, transportation and infrastructure, and deficit reduction.


Douglas Paal, vice-president for studies at the Carnegie Endowment for International Peace, said Baucus would bring to the table years of careful stewardship of the US-China trade relationship.


“He brings serious Senate accomplishments, access to the president and to key senators. That is more than most ambassadors have been able to offer. He is a big figure for a big relationship,” Paal said.


Baucus has been a keen advocate for local businesses in Montana, and he has visited China eight times. He hosted trade delegations from China in both Washington and Montana.


Beijing expressed hope on Thursday regarding the possible nomination of Baucus.


“We expect joint efforts with a new US ambassador to push forward the lasting, healthy and stable development of the Sino-US relationship,” said Foreign Ministry spokeswoman Hua Chunying.


Shi Yinhong, a professor of US studies at Renmin University of China in Beijing, said Baucus is a veteran in handling trade and financial issues, but “it remains to be seen” whether he will contribute to eliminating trade disputes between the world’s two largest economies.


The veteran Democrat also led the US effort in the 1990s to establish Permanent Normal Trade Relations between the two countries and to bring China into the World Trade Organization.


But during a trip to China in 2011, he complained about China’s currency policy and intellectual property situation, according to a news release from his office.


The Washington Post described Max Baucus as someone who shares the Obama administration’s views on how to approach delicate relations, such as currency, intellectual property rights, labor, the environment and human rights.


The new top envoy is also expected to be cautious in public remarks, because “the Sino-US relationship is currently going well, but divergence remains in regard to China’s strategic interests”, Shi said.


“Baucus should avoid misunderstandings in the future when it comes to China’s strategic interests, and play a constructive role in developing the Sino-US relationship, not the opposite,” Shi said.


Despite conflicting opinions in trade and maritime interests, the countries “have worked in a proactive manner this year to expand common ground and avoid ruining the big picture of bilateral cooperation”, said Cui Liru, a senior research fellow of US studies at the China Institutes of Contemporary International Relations.


Cui said “the competing side and the cooperative side will definitely continue to co-exist in the bilateral context”.


Politico said Baucus’ expected nomination had been rumored in congressional circles in the past month, but it only became clear in recent days that the White House would make the appointment.


Former US Congressman from Oregon David Wu described Baucus as “low-key”, “very thoughtful,” someone who “does his homework” and “an expert in tax, commercial and business matters”.


“He will be every bit as knowledgeable about China as just about any of our ambassadors to China,” Wu said.


Baucus, who turned 72 on Dec 11, announced on April 23 that he would retire from the Senate at the end of his term in 2015. Last month, Locke, the current US ambassador to China, announced that he would step down early next year, citing personal reasons.


The expected nomination, however, still requires confirmation from the US Senate, but sitting US senators normally don’t face much objections from colleagues.


Orville Schell, Arthur Ross Director of the Center on US-China Relations at Asia Society, said: “Although Max Baucus is not extremely well known in popular American lore like Caroline Kennedy, nor is he a China specialist, he is a retiring senior senator with substantial interest and experience in trade and foreign policy issues.”


“Moreover, his long experience in the Senate and Democratic Party politics should give him both the ear of the president and clout with the Congress, which is important,” Schell said.


By Chen Weihua in Washington and Zhang Yunbi in Beijing ( China Daily )






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U.S. to Nominate Sen. Baucus as Ambassador to China

President Barack Obama plans to nominate Sen. Max Baucus, (D., Mont.) to be the U.S. ambassador to China, people familiar with the decision said Wednesday.


Mr. Baucus, who is 72 years old and in his sixth Senate term, has said he won’t seek re-election next year. His post requires Senate confirmation and he isn’t likely to quit his Senate seat before he is confirmed.


Read Full Article HERE






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China says all OK with U.S.-China sea incident

China on Wednesday said an altercation between a U.S. and a Chinese naval vessel on the South China Sea was handled well despite its initial reaction that the United States was harassing its first aircraft carrier.


China’s Ministry of Defense said the Chinese ship was conducting “routine patrols” when it had a near miss incident with the USS Cowpens on Dec. 5. The Pentagon said its guided missile cruiser was forced into evasive action to avoid a collision.


Read Full Article HERE






Calum MacLeod, USA Today via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/aST1-vB_Tvs/

China grants renewed press cards to several Western journalists facing expulsion

Several Western journalists facing expulsion from China were given renewed press cards on Thursday by the Chinese government, allowing them to apply for visas to remain in the country.


The move appears to end a weeks-long standoff between the government and journalists that included a personal appeal by Vice President Biden to China’s president earlier this month.


Read Full Article HERE






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China military ship to help guard Syria chemical weapons destruction

China is to send a military ship to help protect a specially adapted U.S. vessel that will destroy Syria’s chemical weapons arsenal, the Foreign Ministry said on Thursday.


Syria is due to hand over deadly toxins which can be used to make sarin, VX gas and other lethal agents under an international agreement forged after an attack on the outskirts of Damascus killed hundreds in August.


Read Full Article HERE






Ben Blanchard, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/eJXwf0sZ5Vc/

China Building Fourth Antarctic Base

Burgeoning scientific power China is starting construction on its fourth Antarctic research base to enhance work on climate change and other fields.


State media on Thursday say Taishan Station is being built about 500 kilometers (310 miles) inland. It will be staffed by as many as 20 people during the Antarctic summer from December to March.


Read Full Article HERE






The Associated Press via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/3qEphsOu39I/

Wednesday, 18 December 2013

China’s Xi Factor

Before China’s leadership transition earlier this year, experts said that the Chinese Communist Party was intent on preventing a larger-than-life personality from assuming power. The CCP, it was argued, wanted someone more like the bureaucratic outgoing leader, Hu Jintao, rather than a charismatic successor like, say, the former Chongqing provincial governor Bo Xilai.


Yet the new president and CCP leader, Xi Jinping, is hardly dull. He began his term by paying homage to Deng Xiaoping at his statue in Shenzhen, where, more than three decades ago, the former Communist Party leader had launched the campaign to convert a reluctant Party to free-market reforms. In a top-level November meeting, Xi set out the details of a fundamental change in economic direction, overshadowing his colleagues.


Xi now leads a new economic group that will coordinate and impose his reforms on fractious colleagues. And, unlike Hu, he immediately became head of the military and now runs a parallel national security council. At first glance, a new “paramount leader” appears to be emerging.


Recent history explains this re-concentration of power. In 1993, central-government leaders enjoyed relatively limited powers: they did not control the money supply and had difficulty firing provincial governors or relocating top generals. Central government revenue was low; indeed, proportionately smaller than that of central governments in any other major economy.


This changed when then-Party leader Jiang Zemin and his prime minister, Zhu Rongji, centralized authority in order to stave off economic crisis at a time of growing risk to China’s banks. In the process, the labor force of China’s state enterprises declined by 50 million, China lost 25 million manufacturing jobs, and central-government employment was slashed. These measures saved China’s economy, but at the price of widespread social stress, which made Zhu widely disliked when he left office.


Popular reaction against the cosmopolitan, coastal, and market-oriented reforms of Zhu and Jiang brought to power leaders whose formative experiences were in the inland provinces of Gansu and Tibet. Riding a wave of resentment against inequality and social tensions, Hu and his prime minister, Wen Jiabao, promised a “harmonious society,” without the stresses of Zhu’s agenda. They slowed economic reform and ceased political reforms. The bureaucracy expanded from 40 million to 70 million, and power devolved to provinces, bureaucracies, and state-owned enterprises (SOEs).


The somnolent Hu/Wen era, fortunately, did not dampen the economic growth triggered by the earlier reforms undertaken by Jiang and Zhu. But the economic-growth model that those reforms created was running out of steam. Low-cost exports were struggling as labor costs rose. Investment in infrastructure was shifting from growth-enhancing projects, such as inter-city highways, to less productive shopping malls in second- and third-tier cities. Productivity plummeted in SOEs, whose privileged access to financing crowded out private-sector investment. Local-government funding, through the seizure and resale of property, was reaching its limits.


Thus, it became essential to launch a new wave of far-reaching reforms, including liberalization of interest rates, securities markets, and foreign-exchange controls, in order to fund the more productive private sector and reduce excess capacity in SOEs. In particular, the reforms were needed to deflate an emerging property bubble resulting from huge savings and foreign capital inflows that had no other profitable investment outlet.


The government planned to liberalize interest rates and the capital account to encourage investment in modern, high-value industries, rather than continue to subsidize low-value exports. It started to shift the economy’s base from export-oriented industries to domestic growth, and from manufacturing to services. And it announced its intention to slow local governments’ seizures of farmland and excessive borrowing through captive enterprises.


Unsurprisingly, opposition to reform was implacable. SOEs were determined to defend their privileges. Highly leveraged local governments could not tolerate higher interest rates or an appreciating currency, and they were adamant about continuing land sales and opposing property taxes. They feared the financial burden of new requirements to provide social services to urban migrants.


As a result, a new, lean leadership team had to be mobilized. The number of top leaders was cut from nine to seven. The new lineup eliminated the most powerful voice on the left (Bo) and relegated the “extreme reformers” on the right (Li Yuanchao and Wang Yang) to the second tier. To reduce elders’ interference, Hu stepped down as head of the military and Jiang Zemin promised to step back.


Moreover, a leading economic group was established to enforce bureaucratic compliance, as was a national security council (similar to that in the United States) to coordinate foreign policy. Previously, the military often kept the foreign ministry in the dark; and the party’s foreign-affairs office, which handled North Korea, often failed to coordinate its activities with the foreign ministry, which handled South Korea. An anti-corruption campaign weakened opposition, and Zhu re-emerged as a hero. This set the stage for Xi’s arrival.


In short, the new-style leadership, a form of managed charisma, was collectively designed to serve national needs. And it implies that Xi is unlikely to emerge as paramount leader. The Chinese presidency’s authority has certainly increased; but Xi is powerful only when he has the votes. On contentious issues, he has but one of seven.


William H. Overholt is a senior fellow at the Fung Global Institute and the Harvard University Asia Center.






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Chinese Dream vs Indian Dream: Advantages and Constraints

The Chinese dream concept was proposed after the 18th CPC Congress, with the interim objective of creating a well-off society by 2020 and the goal of achieving great rejuvenation of the Chinese nation by 2050. The international community has given much attention and discussed about the favorable conditions and constraints for China to materialize such a vision. Many commentators and analysts have attempted to compare the Chinese dream with the Indian dream.


Ma Jiali Chinese Dream vs Indian Dream: Advantages and Constraints

Ma Jiali



As early as before Indian independence, Jawaharlal Nehru, leader of India’s nationalist movement, talked about India’s lofty ideal in The Discovery of India, a book of far-reaching influence. He wrote, India “cannot play a secondary role in the world…she will either count for a great deal or not count at all.” He also said that “India is a potential great nation and strong country. This is not our ambition but only a fact.” The ideal expressed by Nehru as a national objective constitutes the core of the Indian dream.


Since the beginning of the new century, the strategic community in India has been debating more about the country’s position in the world. They argue that India should become at the least “one of the six top power centers in the world”, “join the management team of the international community” or “take a VIP seat in the international community”. In the past two years, some Indians also talked about becoming one of the top three in the world, i.e., India immediately following the US and China.


Honestly, India and China have rather similar basic national conditions and the two are at roughly the same stage of development. India has many unique advantages such as political democracy, legal system, financial management, English education, entrepreneurship, demography and specialized industrial sectors, which are the basis for Indians to desire the status of a big and strong country. However, while seeing India’s advantages, we also need to see China’s comparative advantages. Indian economist and Nobel laureate Amartya Kumar Sen admitted that “China has much higher values of most social indicators of living standards, such as life expectancy, infant mortality rate, mean years of schooling, or the coverage of immunisation” and that “India’s gap with China is widening rather than narrowing down”. Former Indian Navy Chief Admiral Arun Prakash wrote about his visit to Shanghai and claimed that “India is steadily losing ground to China in every index of development and progress, largely due to poor governance.”


In the past decade and more, India has registered remarkable development, with ever-increasing economic strength, markedly stronger military capabilities, greater diplomatic vitality and higher overall strategic status. Nonetheless, India is still confronted with many in-depth constraints and various chronic illnesses and persistent ailments are still plaguing its development process. To realize the Indian dream, a host of constraints and burdens have to be overcome.


In terms of governance, India is a democracy and the great majority of people accept the existing political system albeit with major doubts over the government’s decision-making efficiency. With the many political parties, representing different interest groups and leading to discounted decision-making capability and implementation efficiency. In many cases, the governmant is not able to formulate due development plans. When plans are made, they are difficult to implement due to partisan politics, demonstrating a “functional anarchy” in India.


In the economic field, there are apparent deviations in the Indian industrial structure. The proportion of manufacturing in the overall national economy does not match the development need of a populous country. Industrial sectors do not offer enough jobs for the increasing labor force. Infrastructure construction seriously lags behind. Roads, railways, airports, ports and telecommunication networks cannot satisfy the increasing needs of the people and dampen investor enthusiasm.


In terms of social contraditions, India is severely polarized, with both super rich people and the extremely poor. Homeless wanderers and slums are seen in all Indian cities. According to Indian media, 66% of the Indian population live below poverty line and over 300 million people are in absolute poverty, indicating potential danger of major social unheavals. Furthermore, the caste system, which seriously undermines human value and dignity, remains extensive in the rural areas. There are also fairly serious disputes among different religious sects, with violent clashes from time to time.


China and India are both developing countries with the arduous task of rapidly developing their national economies, improving their people’s livelihood and moving out of poverty. As close neighbors, the two countries should respect and trust each other, stay on friendly terms with and learn from each other and give full play to their complementarity in the pursuit of their respective dreams.


Ma Jiali, Executive Deputy Director & Senior Researcher, Center for Strategic Studies, China Reform Forum.






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Tuesday, 17 December 2013

China starts four-dimensional mode of economic growth

China’s four-dimensional mode of economic growth focusing on safe, balanced, inclusive and green development,proposed at the central government’s just-concluded work meeting, has grabbed global attention.


Experts say the new mode that centers on economic restructuring and seeks urbanization in a resource-conserving and environment-friendly way, will help promote sustainable and effective economic development.


SAFE GROWTH


China’s development will be hindered by the basic issue of food, as fast urbanization and industrialization threaten to reduce the country’s 1.8 billion-mu (1.2 million-square-kilometer) arable land.


Therefore, the four-day central economic work conference, which concluded Friday, elaborated a national food security strategy based on domestic supply and moderate imports, aimed at ensuring production capacity and harnessing science and technology.


Jiang Wenran, who runs the annual Canada-China Energy and Environment Forum, told Xinhua China’s focus on food security amid consecutive rich harvests shows the leadership had strong crisis awareness and attached importance to people’s lives and security.


Ensuring China was self-sufficient in food when global trade and transport systems were heavily blocked was very important for national security, Jiang said.


BALANCED GROWTH


The central economic work meeting emphasized the traditional over-reliance on investment for growth had ended, and also highlighted the balance between consumption, investment and exports to adjust industrial structure and reduce overcapacity.


The country should “make efforts to free up demand, give full play to the fundamental role of consumption, the pivotal role of investment and the supporting role of exports,” said a statement after the meeting.


Jiang said China was expected to adopt specific measures to realize its goals, and one of them was that gross domestic product (GDP) growth was no longer the only criterion for weighing local governments’ performance.


Hassan Raghab, professor of the Chinese Faculty of Egypt’s Ain Shams University, said the conference sent a message that the Chinese government would continue to reform and open up to the world.


Rather than just pursuing the speed of development, Beijing would put more emphasis on economic and social stability. It might moderately slow development speed but make the economic structure more reasonable and the foundation more solid, so as to prevent potential risks, Raghab said.


INCLUSIVE GROWTH


The meeting also highlighted improving people’s lives, employment of university graduates and re-employment of the laid-off, demonstrating China’s aspiration for inclusive growth.


In Raghab’s opinion, China had to balance the growth of big cities and small towns; and it was noteworthy the government, at the meeting, had stressed the importance of narrowing the income gap and protecting the weak, which were crucial in achieving an inclusive growth.


Song Yu, an economist at Goldman Sachs, said the meeting did not ask to “regulate and control” the real estate market, but to “solve” the housing problem, which reflected a greater concern of the government that prioritized increasing supply instead of reducing demand.


GREEN GROWTH


The meeting also proposed enhancing environmental governance, protection, and investment and policies.


Axel Berger, political scientist at the German Development Institute, said, if China managed to green its growth model, it would have a tremendous positive effect globally.


“If … a large economy such as China is able to shift its growth model from a high to low carbon one, this will push more reluctant countries to move as well in such a direction,” said Berger, who identifies managing the rapid urbanization while building a low carbon urban infrastructure as one of the key challenges in terms of green growth.


For his part, Jiang said, if the adjustment of China’s industrial structure went smoothly, it would increase domestic demand and form a sound relationship between the environment and economic growth, which would help boost the development of the Chinese economy and deepen reform and opening-up.






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China’s retail sales growth to top 13%

China’s retail sales of consumer goods will grow by more than 13 percent year on year for 2013, the Ministry of Commerce said on Wednesday.


Improving economic growth and the country’s determination to shift to a domestic demand-driven expansion model has boosted consumers’ confidence. Sales growth is likely to increase for the remainder of the year, ministry spokesman Shen Danyang said at a press conference.


Online shopping and strong sales of telecommunication equipment also boosted retail sales, Shen said.


Shen expected the strong momentum of consumption growth to maintain in the first quarter next year.


In the first 11 months of 2013, retail sales grew 13 percent, according to the National Bureau of Statistics. Retail sales in November alone was up 13.7 percent year on year, the highest rate of increase this year.






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Hukou reforms target 2020: official

New system would extend pension, education and healthcare services


The Ministry of Public Security and 11 other ministries and commissions have drafted reform guidelines for China’s hukou (household registration) system that, if approved by the central government, will take effect immediately and aim to establish a new hukou system by 2020, a senior official said on China Central Television.


Huang Ming, vice-minister of public security, said on Tuesday that the new hukou system will gradually extend pension, education and healthcare services to qualified residents, both urban and rural.


Inequalities brought by the current hukou system have prevented migrants from enjoying equal access to services in cities. This creates a major barrier for the country’s urbanization process, Huang said.


Currently, there are 260 million migrant workers who live in cities but do not enjoy the same benefits as those who hold an urban hukou.


The new hukou system will be based on a person’s place of residence and job, instead of birthplace, and it will be easier for the people to transfer their hukou, Huang said.


The main task of the upcoming reform is to resolve the problems of those who work in cities but don’t have urban hukou, he said, adding that reforms must be based on individual choice. The government should not force residents to change their hukou status, he said.


During the central urbanization work conference last week, the government pledged to make steady moves to promote human-centered urbanization, seeking to balance urban and rural development and to unleash domestic consumer demand.


A statement released after the two-day conference — attended by President Xi Jinping and Premier Li Keqiang — said that urbanization is the road China must follow in its modernization drive, and that it represents one important way of addressing rural problems.


The statement promised to fully remove hukou restrictions in towns and small cities, to gradually ease restrictions in mid-sized cities and to set reasonable conditions for settling in big cities, all while strictly controlling the population of megacities.


The populations of Beijing and Guangzhou have each increased more than 400,000 annually over the past decade, putting tremendous pressure on the environment — for example, by dramatically increasing traffic — Huang told CCTV.


Some local governments have initiated pilot projects in hukou reform in past years.


In June 2010, for instance, the government of Guangdong province introduced a scoring system under which migrant workers would qualify for urban household registration once his scores reach a certain level.


Migrants can earn points based on their educational backgrounds, skill levels, social security records and participation in charitable activities, such as blood donations.


But a change of hukou requires them to give up their plots of farmland back in their hometowns, since only those registered as farmers are entitled to the land, Xinhua News Agency reported.


“The hukou reform will put great pressure on local governments since it will increase public expenses for education, health and pension services,” said Yi Peng, a researcher with the China Center for Urban Development under the National Development and Reform Commission.


“The higher cost of public services brought by hukou reform should be jointly paid by the central and local governments, as well as by State-owned enterprises,” Yi said.


By AN BAIJIE ( China Daily )






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China, US communicate effectively over warship encounter

The Chinese and US defense authorities effectively communicated after a recent encounter between warships of the two countries, a Chinese defense ministry statement said.


A Chinese navy warship on a regular patrol mission encountered a naval vessel of the United States in the South China Sea region several days ago. The Chinese warship handled the situation strictly according to relevant operation specifications, according to the ministry statement on Wednesday.


Defense authorities of the two countries have reported relevant information to each other via normal channels and communicated effectively about the matter, the statement said.


It said some media reports about the event are untrue.


Also, the statement stressed that the Chinese and US armed forces have an opportunity to develop their relations and both sides are willing to enhance exchanges, practice closer coordination and make efforts to maintain regional peace and stability.






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Japan Moves to Strengthen Military Amid Rivalry With China

Taking his nation another step further from its postwar pacifism, Prime Minister Shinzo Abe approved a new defense plan on Tuesday that calls for acquiring airborne drones and amphibious assault vehicles to strengthen Japan’s military as it faces the prospect of a prolonged rivalry with China over islands in the East China Sea.


While Mr. Abe described the plan “proactive pacifism,” it reverses a decade of military spending cuts to offset a rapid military buildup by China and the relative decline of American influence.


Read Full Article HERE






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North Korea Execution Confounds China

China’s strategy of encouraging closer economic integration with North Korea has been thrown into confusion by the execution of the uncle of North Korean leader Kim Jong Un, according to diplomats and Chinese experts.


Jang Song Thaek, whose execution was announced by North Korea on Friday, was seen by Beijing as the most pro-China and pro-business figure in the North Korean leadership, the diplomats and experts say.


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Kerry plays down tension with China in maritime disputes

Secretary of State John Kerry on Tuesday played down tension with China over the East China Sea, saying U.S. efforts to strengthen maritime security in South East Asia were part of a normal process to help allies defend themselves better.


Kerry said maritime disputes between countries should be resolved peacefully through arbitration and the United States would speak out when a country, such as China, took unilateral action that raised the potential for conflict.


Read Full Article HERE






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China Bans Payment Companies From Clearing Bitcoin, News Says

Chinese central bank officials told third-party payment service providers to stop offering clearing services to online Bitcoin exchanges, according to China Business News, which is affiliated with the Shanghai government.


Companies currently offering services must end services by the Chinese New Year, a weeklong holiday that begins on Jan. 31, the newspaper cited Zhou Jinhuang, deputy director of payment clearance at the People’s Bank of China, as saying at a meeting with more than 10 third-party payment service providers.


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Unplugged: China Mobile-Apple may be finally upon us

After years of anticipation and speculation, China Mobile is expected to announce a deal with Apple to offer the iPhone to its hundreds of millions of customers.


The announcement could come as early as Wednesday when China Mobile is expected to roll out its Fourth Generation (4G) wireless network, according to The Wall Street Journal.


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Monday, 16 December 2013

China paper says US ship harassed China fleet

An official Chinese newspaper on Monday accused the U.S. Navy of harassing a Chinese squadron earlier this month, shortly before a near collision that marked the two nations’ most serious sea confrontation in years.


There has been no direct comment from China’s Foreign Ministry or defense officials on the Dec. 5 incident in the South China Sea, where the USS Cowpens was operating in international waters. The U.S. ship, a 10,000-ton Ticonderoga-class cruiser, maneuvered to avoid the collision, the U.S. Pacific Fleet has said.


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China plans to launch new lunar probe in 2017

China said Monday its plan to launch its fifth lunar probe in 2017 with the aim of bringing lunar soil and rock samples to Earth was on track after a successful moon landing of another space probe over the weekend.


The Chang’e 5 mission would mark the third and final phase of China’s robotic lunar exploration program and pave the way for possibly landing an astronaut on the moon after 2020.


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China Focusing Graft Inquiry on Ex-Official

Sending tremors across China’s political landscape, President Xi Jinping and other party leaders have authorized a corruption inquiry against the powerful former head of the domestic security apparatus, Zhou Yongkang, according to sources with elite political ties.


It is the first time since the founding of the People’s Republic of China that an official who has held such high office has been the focus of a formal corruption investigation, and in pressing his antigraft crusade to new levels, Mr. Xi has broken a longstanding taboo. Mr. Zhou was once a member of the Communist Party’s top rung of power, the Politburo Standing Committee, and even retired members of that body have always been spared such scrutiny.


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China’s interest rates will have upside bias when freed : central bank chief

China’s borrowing costs will have a tendency to rise once controls on interests rates are lifted due to buoyant demand for funds, Central Bank Governor Zhou Xiaochuan said on Monday.


Zhou said in an interview with Caijing magazine that elevated interest rates will be a “unique trait” of China’s economy as rapid development in the world’s second-largest growth engine keeps borrowing costs high.


Read Full Article HERE






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Coal Demand Growth to Slow in Next Five Years on China, IEA Says

Work for Better Big-Power Relations

– In commemoration of the establishment of Sino-US ties 35 years ago


On December 16 (Dec 15 US time), 1978, China and the United States simultaneously announced that they would formally establish diplomatic relations on January 1, 1979. Since then, the relationship between the two countries of totally different social systems has followed a tortuous course featuring contradiction, collision, compromising, cooperation and mutual adaptation.


Amazing changes have taken place in the past 35 years. Where will the Sino-US relationship head to in the next 35 year? That is a question people of both countries and the world hope to find a satisfactory answer to.


Presidents Xi Jinping and Barack Obama held a historic meeting at the Annenberg Estate, California. They exchanged views and reached consensus on the need to establish a new type of relationship between major powers. That signals the beginning of a new stage of development in the bilateral relations.


“No conflict, no confrontation, mutual respect and mutual benefit” make up the main content of the “new type of relationship”. To put these understandings into practice, both countries have got a slew of tasks to accomplish.


First, work towards a new agreement concerning Sino-US relationship. A series of documents were signed at different stages of the development of bilateral relations. The most prominent are the three Joint Communiqués, which are of over-all significance to the development of the Sino-US relationship. Now time has come for the two countries to sign a fourth joint communiqué, the theme of which will be the newly conceived “new type of major-power relationship”. It will define the significance, content and goals of the new-pattern relationship and how it will be built. It will serve as a roadmap for China and the US to develop their relations in the new epoch.


Second, build up and enhance mutual trust. For too long a time, there has been excessive talk about mutual suspicion between China and the US. That mind-set has to be changed. Instead, the Sino-US relationship should be that of partnership, which is based on contemporary concepts about security and obligation-interests relation. Admittedly, serious distrust exists between the two countries and they have different views on many issues. But mutual suspicion has never been the main consideration in either side’s drafting of policies concerning their relations, otherwise the bilateral relationship could not have achieved so much progress as we see today. And trust and distrust are mutually replaceable. According to declassified audio recordings of Richard Nixon, the late US president said when he decided to establish ties with China that “Sino-US relationship is the key to world peace.” It was thanks to a change of the way of thinking that anti-communist Nixon became a pioneer to turn the Sino-US relationship into one of positive interaction.


Third, strengthen the role of economic and trade ties as the stabilizer in the bilateral relationship. It is known to both sides that the two economies are mutually dependent. According to a study hosted by the China-United States Exchange Foundation with participation of specialists and former top-officials from both countries, China and the US will become each other’s largest trade partner 10 years later. By then, the American exports to China will be $450 billion, creating more than 2.5 million jobs for the US. To realize this goal, both sides should work with sincerity and determination and clear away all obstacles to expedite the negotiations for the bilateral investment agreement and explore the possibility of reaching a free-trade agreement.


Fourth, reinforce the security pillar. The Sino-US relationship is like a grand building designed by both countries’ leaders and sustained by the economic foundation. It also needs pillars to ensure safety. These “pillars” are both sides’ mutual trust in the area of security and willingness to increase military exchanges and cooperation. Neither side should take the other as a potential or realistic adversary when drafting the security strategy. They should guard against any third party who, out of its private interests, tries to drag them into disputes over security problems. They should also respect each other’s core interests and major concerns.


It is encouraging that positive signs have emerged in military exchanges between the two countries. To further that momentum, both sides should conduct the security dialogue on higher government levels and explore ways to increase military transparency.


Fifth, create a constructive media environment. Media is the most active part of society. Media’s independence, its influence on society and its role as a watchdog are all necessary. Both China’s and US’ media are playing an indispensable role in the development of bilateral relations. However, there is no denying that the media environment between China and the US is not fair and objective enough. Some media outlets have always fabricated or played up the so-called China threat, US decline and China-US mutual suspicion and confrontation in disregard of facts. Journalists should have conscience and sense of social responsibility. They should play a positive role in protecting sovereignty states’ interests and promote world peace and progress. The new type of major-power relationship between China and the US is in building, during which media is a needed source of positive energy.


There are many things between China and the US that should be done and can be done. But for things that cannot be done or should be prevented, both sides should try to avoid them in tacit agreement.


The first thing that should not be done is exaggerating China’s strength or overstating the US’ decline. China is much weaker than the US, especially in science and technology and in military power. Exaggerating China’s strength will cause China’s growth to be burdened with higher cost, including overdraft of responsibility. Likewise, the media also overstated the weakening of power the US has suffered from the financial crisis and the wars in Iraq and Afghanistan. Such exaggeration is harmful to the US in its effort to revitalize economy. The US has all the conditions for the economic revival. Actually it is on the road to that end. A correct comparison of their strengths is helpful to the building of the new type of relationship between China and the US. China needs to overcome the troubles in its growth; the US needs to get rid of its strategic anxieties.


The second thing they should refrain from doing is finding fault with the other side when handling one’s own problem. Both countries have their own problems. Though many of these problems are correlated and one should have the other’s interests in mind when seeking its own development, the largest challenges for each of the two countries originate in their own concepts and policies and their own motives for development. China and the US should be magnanimous to each other instead of tracing one’s own problem to the other.


Thirdly, neither side should do anything to harm the other side’s sovereignty and safety or interfere in the other’s internal affairs. Regrettably, the US has done too many of this kind of things. American military aircraft frequently carry out reconnaissance flights near China’s airspace; and US Congress often hold hearings on Chinese affairs, where congressmen make irresponsible comments on issues involving China’s core interests. Such acts of interfering in China’s domestic affairs have hurt the feelings of the Chinese people and proved harmful to a healthy development of the bilateral relations.


The fourth thing undesirable is harming the other side’s interests when one tries to develop relations with the other side’s neighbors. Both sides should make their moves more transparent to each other and try not to be hijacked by certain third parties with private motives.


Last but not the least, do not equate “equal treatment” with “equal status”. These are different concepts. The former refers to the attitude and standards one country should follow when dealing with another country. It means all countries, big or small, should treat each other with equality and respect. The latter refers to the two sides’ status on equal footing. China holds that all countries should be respected with regard to the social systems and development models they have chosen and that all countries enjoy equal rights in international affairs, which should be handled with justice and transparency. China does not deny the positive side of the role US has played in shaping and dominating the post-war world order. Some political elites in the US worried that China would seek an equal status as that of the US and share what they think is their country’s exclusive leading role in the world. These worries are groundless. China has neither the need nor the ability to share the US’ status as the leader of the world. What China seeks is justice and equality and a constructive role that is commensurate with its capability.


After 35 years, China-US relationship is entering the stage of maturity. Favorable political, economic, social and cultural conditions are ripe for the two countries to establish a new type of big-power relationship. That’s a great cause. The two peoples will definitely accomplish it.


Chen Yonglong is Director of the US Center of the China Foundation for International Studies.






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Sunday, 15 December 2013

Better dialogue urged after naval incident

Chinese warship, US cruiser came close to collision in South China Sea


The navies of China and the United States should reinforce their communication and cooperation in the Asia-Pacific to reduce the risk of conflict amid Beijing’s maritime buildup and Washington’s rebalancing in the region, observers said.


The comments were made after the US Pacific Fleet said on Friday the guided-missile cruiser USS Cowpens was forced to take evasive action to avoid a collision with a Chinese warship maneuvering nearby, Reuters reported.


China’s amphibious dock ship was less than 500 meters from the US warship when the encounter happened “in international waters” in the South China Sea on Dec 5, a US defense official was quoted as saying.


“Eventually, effective bridge-to-bridge communications occurred between the US and Chinese crews, and both vessels maneuvered to ensure safe passage,” he said.


The USS Cowpens was operating near China’s sole aircraft carrier, the Liaoning. Flanked by escort ships, including two destroyers and two frigates, the Liaoning has been in the South China Sea for exercises since the end of November.


The US raised the latest incident at a “high level” with the Chinese government, according to a State Department official quoted by the US military’s Stars and Stripes newspaper.


The Chinese government has not yet officially commented on the confrontation.


Experts said it was not the first time that US reconnaissance activities in the South China Sea have caused confrontations, and they called for a sound bilateral framework to manage divergences.


Fan Jishe, a US studies expert at the Chinese Academy of Social Sciences, said the incident was very dangerous because any miscalculation would have led to a collision that would in turn have caused a major bilateral crisis.


“It is a relief that both sides exercised restraint this time, as there are channels for maritime consultation between the two sides,” Fan said. He added that previous incidents in the past decades had traumatized Sino-US ties.


Su Hao, a professor of Asia-Pacific studies at China Foreign Affairs University, said China’s action was necessary for protecting its maritime rights and interests, which were seriously violated by the US.


“China has demonstrated its determination and capability to resist any unfriendly moves in the South China Sea. After all, the Chinese took action only after the US vessels refused to comply with warnings,” Su said.


The confrontation was the most significant maritime incident between the two countries in the South China Sea since 2009, when a Chinese submarine collided with an underwater sonar array being towed by the USS John McCain.


Experts said that the risk of clashes between China and the US are high as the “going-out” Chinese navy will inevitably meet its active US counterpart in the region, which it considers subject to its sphere of influence.


Zhang Diancheng, a military commentator, said China needs to develop a strong offshore navy that can conduct combat missions in blue water to safeguard its maritime development and expanding trade.


Su said, through this incident, Washington needs to realize that there have been changes in the power balance between the two countries.


“The US has to acknowledge the fact that Chinese military forces have grown stronger, and re-evaluate its strategies given the overall Sino-US relations, instead of simply imposing containment,” Su said.


On the same day as the incident, US Vice-President Joe Biden was on a two-day visit to Beijing amid high regional tensions in East Asia due to a spat over China’s designation of its Air Force Identification Zone in the East China Sea.


“Washington is willing to manage differences with Beijing in a constructive manner and avoid letting them affect bilateral ties,” Biden said while meeting with President Xi Jinping.


Experts said the US has long been conducting near-shore reconnaissance against the Chinese navy’s normal military exercises and disturbing them under the justification of free navigation in international waters.


Zhang said US surveillance activities regardless of warnings from China aim to accelerate the US military deployment in the region in compliance with its rebalancing strategy.


Fan said Washington’s enthusiasm in collecting China-related intelligence in the South China Sea reflects its growing concern with China’s reinforced military power.


“Meanwhile, these actions have the symbolic meaning that the US is trying to brag about its presence in the region and that it has the ability to enter China’s exclusive economic zone,” he said.


By Pu Zhendong and Zhang Fan ( China Daily )






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Japan’s ‘checkbook diplomacy’ could bounce: observers

Though Japan has signed aid pacts in order to win support from ASEAN countries in its dispute with China, Japanese Prime Minister Shinzo Abe’s “checkbook diplomacy” may fail because his provocative political actions put the region into a difficult situation, observers said.


On Sunday, Abe concluded a three-day Japan-ASEAN summit in Tokyo during which Japan, in what experts called “an unusual gesture”, offered to provide 2 trillion yen ($19.2 billion) in aid for the 10-member bloc.


Japan also pledged fresh aid worth about $610 million in loans to Myanmar, mainly to help the Southeast Asian country’s infrastructure projects.


Despite Japan’s generous aid package, many of Tokyo’s suggestions targeting China were not included in the joint statement released on Saturday, due to opposition by ASEAN, Kyodo News Agency said.


“The word ‘threat’, in alluding to China’s actions in the South China Sea, was not written into the statement, because senior officials from Myanmar, Laos and Cambodia disagreed with the expression suggested by Japan at a pre-summit meeting on Thursday in Tokyo,” the Japanese agency reported.


The phrase “freedom of overflight” in the statement was changed from “freedom of overflight over the high seas” in the draft because the Southeast Asian side indicated that “the words ‘over the high seas’ could be taken as a specific measure focusing on China’s air defense identification zone”, Kyodo reported.


The statement, which said that the two sides promise to cooperate to ensure “freedom of overflight and aviation safety in accordance with universally recognized principles of international law”, is more like a meaningless diplomatic expression, which will not play a substantive influence in regional cooperation, said Yang Xiyu, an expert on international relations studies at the China Institute of International Studies.


“It seems like the statement somehow satisfied Japan’s requirement, but it doesn’t have any practical meaning. ASEAN didn’t play the game of taking sides as Japan wished.”


Abe said at a news conference on Saturday that China’s recent announcement of the air-defense identification zone over the East China Sea is “unjustly violating freedom of aviation over the high seas” and demanded Beijing rescind it.


During a meeting with Indonesian President Susilo Bambang Yudhoyono, Abe explained Japan’s stance on China’s air defense zone, which covers the disputed Diaoyu Islands, but Yudhoyono did not give a definite answer as Abe had hoped.


“When the border negotiations are still ongoing, having an open line of communication is crucial to avoid miscalculation that may occur in and around the disputed area,” Yudhoyono was quoted by Xinhua News Agency as saying, without naming a specific location.


Yudhoyono said, “It is important that Japan’s larger security role is pursued gradually, in a transparent manner and in ways that would strengthen international security, regional order and enhance confidence building.”


Foreign Ministry spokesman Hong Lei expressed China’s anger over Abe’s “malicious slander” of China in the international arena.


“As a defensive measure to safeguard national air security, the establishment of the East China Sea ADIZ is in line with international law and practice,” Hong said on Saturday, stressing that it does not affect aviation freedom.


Wang Ping, a researcher at the Institute of Japanese Studies, Chinese Academy of Social Sciences, said Abe’s Southeast Asian strategy of isolating China is stupid.


“China has become ASEAN’s largest trading partner and the biggest export market since 2011. The free trade zone between ASEAN and China is a good example for regional cooperation. There is no way that Japan can easily buy ASEAN,” she said.


“Abe forcing ASEAN to take sides in the disputes between Japan and China is apparently irresponsible,” she said.


Liu Jiangyong, an expert on Japanese studies at Tsinghua University, said Japan should be clear that the world expects Japan to handle its relations with China well, rather than building alliances against China.


“Japan originally hoped ASEAN countries would make a joint statement over issues like ‘freedom of overflight’, then use China’s ADIZ as one case to criticize China. ASEAN countries were crystal clear about Japan’s intensions,” Liu said.


Abe seems to like to push all visiting leaders in Japan to underwrite his ideas against China, he said.


By Zhao Yanrong in Beijing and Cai Hong in Tokyo ( China Daily )






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China to launch its Chang’e-5 lunar probe

China is scheduled to launch its Chang’e-5 lunar probe in 2017 and the mission will bring back samples collected from the moon, a senior scientist said Monday.


The development of Chang’e 5 is proceeding smoothly, said the administration’s spokesman Wu Zhijian at a press conference on Monday.


The just-concluded Chang’e 3 mission, the third-phase project of China’s lunar probe established in 2011, marked completion of the second phase of the program, which includes orbiting, landing and returning to Earth.


China’s first lunar rover and the lander took pictures of each other near mid-night on Sunday, marking the complete success of Chang’e-3 lunar probe mission.


The lunar program will enter the next stage of unmanned sampling and returning, which will include Chang’e 5 and 6 missions, according to Wu.






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China’s Tianjin to curb car ownership in anti-smog drive

China’s northern municipality of Tianjin will restrict traffic and issue new car license plates via bidding and lottery in a drive to fight traffic jam and air pollution.


The city will impose quota on its new car plates starting next Monday, requiring buyers to join lottery or bid in auctions to win a plate, according to a notice issued by the city government on Sunday evening.


The notice did not give details on the quota or how many plates will go for lottery compared with auction.


Tianjin will also follow Beijing’s step in adopting a similar traffic restriction scheme, which blocks cars from streets depending on the last digit of their plates, with two numbers banned each workday, said Miao Hongwei, head of the city’s traffic management bureau.


The ban, which will take effect on March 1, is expected to take one fifth of the city’s private cars off the road on workdays.


Moreover, the city will ban vehicles with non-local plates from driving into the city’s outer ring road during morning and evening rush hours on workdays, Miao said.


A statement by the municipal government said the move was part of the city’s effort to curb its ballooning car ownership, reduce traffic jams and fight smog.


Tianjin has registered 2.36 million motor vehicles by 2012, up from 1.2 mln in 2006, while the average driving speed on downtown roads during rush hours dropped to 19.5 kilometers per hour in 2011, indicating severe traffic gridlock in the city of 14 mln permanent residents.


Meanwhile, vehicle emissions have been held as a key source of the persistent smog plaguing Tianjin, its neighbor Beijing and other cities in the northern region.


Previously, Beijing, Shanghai and Guangzhou have limited the number of vehicles registered each year.


Shanghai uses a bidding scheme, while Beijing issues plates through a lottery. Guangzhou adopts both systems, half issued through bidding, the other half through a lottery.






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Friday, 13 December 2013

Guess What? The U.S. and China Don’t Trust Each Other Much

And the Chinese trust Americans even less. That’s the conclusion of the U.S.-China Security Perceptions Survey (PDF) released on Dec. 11 by the Carnegie Endowment for International Peace and the Beijing-based research organization China Strategic Culture Promotion Association (CSCPA). “There is a low level of strategic trust between the United States and China, which could make bilateral relations more turbulent,” warns the survey.


Working with the Pew Research Center and the Research Center for Contemporary China at Peking University, as well as the Kissinger Institute on China and the United States at the Woodrow Wilson International Center for Scholars, the Carnegie-CSCPA survey canvassed the general public and elites in government, business, academia, the military, and the media last year. In the U.S., it surveyed 1,004 adults among the general public and 305 elites. In China, it canvassed 2,597 adults in urban areas and 358 elites.


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China Economic Conference Balances Reform, Stable Growth

China closed a key economic conference on its policies for 2014, with the government suggesting a need to press ahead with reforms while maintaining stable economic growth.


After a four-day meeting known as the Central Economic Work Conference that ended Friday, China’s policy makers faced the “core task” of ensuring stable growth amid continuing economic headwinds and troubles with domestic security, according to a statement carried by state media.


The annual conference normally maps out key objectives for the economy in the coming year, though the official statement made no mention of any hard economic targets.


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China’s first lunar probe to land on the moon this weekend

China’s first lunar rover is expected to land on the moon on Saturday, less than two weeks after it blasted off from Earth, according to Chinese media reports.


The landing will make China one of only three nations — after the United States and the former Soviet Union — to “soft-land” on the moon’s surface, and the first to do so in more than three decades.


Chang’e-3, the unmanned spacecraft carrying the rover, is due to touch down on a lava plain named Sinus Iridum, or Bay of Rainbows, shortly after 3 p.m. GMT (10 a.m. ET) on December 14, according to the state-run Xinhua news agency.


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