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Tuesday, 20 May 2014

Lasting Feud Detrimental to China and Japan

A shrine and a cluster of islets have become major stumbling blocks in the way of China and Japan’s ability to build rapport. No solution has yet been found to these two obstacles. The former signifies the understanding of a piece of history, and the latter represents a territorial dispute – leaving the two neighboring countries helpless as they watch mutual enmity worsen. How long will this enmity last? Five years? Ten years? Or even decades?


Fengzhaokui 1 Lasting Feud Detrimental to China and Japan

Feng Zhaokui



Right now, the most urgent necessities are to abandon the mentality of eyeing only the immediate interests, and to refrain from cornering the rival – which is exactly what Mr. Shinzo Abe has not done. Chinese and Japanese leaders need to be aware of the long-term consequences of their countries being at odds.


The mutual distrust between the Chinese and Japanese government has plummeted to an all-time low since the two countries restored their diplomatic relationship 42 years ago. No one knows how the distrust will develop. A major reason why Chinese leaders declined to meet Abe was that they worried that he would visit the Yasukuni Shrine soon after the summit meeting, which would place Chinese leaders in a predicament. It also seemed impossible to ask Abe to explicitly state that he would not visit the shrine again during his tenure. In regard to the islands disputes, China has repeatedly expressed hope for a settlement through negotiations. Japan however, is suspicious that Chinese military personnel would disguise themselves as fisherman and make sneak raids on the Diaoyu Islands. To deal with this imagined threat, the Japanese armed forces conducted several drills of “taking islands”, which in turn caused the Chinese military to interpret these moves as deliberate provocation. Both sides tend to view every move of the other side with suspicion, leading to a vicious cycle of “one considers the other to be a bad guy and the latter will really become that bad.”


The mutual feelings between Chinese and Japanese people have also reached the nadir since the two countries restored their diplomatic relationship. The gap between the two countries’ younger generations has been widening in their understanding of historical issues. The Chinese public keeps an indelible memory of the Nanking Massacre, the atrocities of the Japanese Army Unit 731 and the Chongqing bombings, which prompted Washington to impose a petroleum embargo against Japan in 1939. Japanese mourn the victims of the Hiroshima and Nagasaki atomic bombings every year, but never reflect on the reason behind the bombings. This is why Japan reacted with “anti-America” and “anti-nuclear” campaigns when the United States offered to help them develop nuclear power during post-war reconstruction.


If the mutual dislike between the two countries keeps growing, it will end in mutual hatred. Chinese leaders used to tell the public to distinguish between Japanese militarists and common people in a bid to prevent the two neighboring nations from becoming mortal foes. A Chinese proverb says, “Better make friends than make enemies.” This understanding is also echoed by some Japanese scholars who say, “Japan’s largest interest is to have no hostile neighbor.” The current enmity is vitally detrimental to both countries.


The military confrontation between the two countries has reached the state of a “quasi war”. At present, neither side wants it to become a real war. However, no one can rule out the possibility of an accidental firing, given the mutual distrust between the two governments and mutual dislike between the Chinese and Japanese people. And no one can guarantee that accidents will not escalate into battles, and battles into a partial war. In fact, as revealed by some Japanese analysts, notorious right-winger Shintaro Ishihara’s purpose in stirring up troubles was to drag the U.S. into the mire and thus turn the “Sino-Japanese war” into a “Sino-U.S. war” – which would weaken both China and the U.S., creating an opportunity to restore the “Great Japanese Empire”.


Japan is highly reliant on foreign trade. It imports 96 percent of its energy and 73 percent of its grains. One cannot help but ask why Japan is making such provocative moves. Doesn’t it fear that “an accident in a peripheral area” could lead to serious consequences, such as a cutoff of its oil or grain supplies? Whatever route the shipment will take, the “last nautical mile” unavoidably falls within the country’s peripheral waters. China faces the same question. It also needs to consider the impact of armed clashes on the safety of its maritime transports. The idea of “non-negotiable sovereignty” should be put aside. The specious prediction that “there must be a war between China and Japan” must be replaced by “there has to be a negotiation” between the two.


Continued tensions between China and Japan will seriously impact the marine and land eco-environment, and even the global climate. Research indicates that emissions of greenhouse gas caused by war and arms buildup far exceed those caused by industrial production and other human activities. Given that we are already suffering from extreme weather, ocean pollution, Fukushima nuclear radiation leaks, smog and sand storms, China and Japan should reflect in a responsible way and realize that an arms race would aggravate ecological disasters. Protecting the eco-environment and alleviating climate change is mankind’s moral responsibility. China and Japan should try to strike a balance between “protecting human justice” and “protecting territorial interests”.


Feng Zhaokui is honorary academician of the Chinese Academy of Social Sciences.






Feng Zhaokui, Honorary Academician of the CASS via CHINA US Focus http://ift.tt/R76Kvo

Beijing denounces U.S. hacking charges against Chinese army officers

China has accused the United States of “hypocrisy” and “double standards” following its decision to charge five Chinese army officers with cybertheft against major American businesses.


The Foreign Ministry in Beijing even took the step of summoning U.S. Ambassador Max Baucus late Monday, the state-run Xinhua news agency reported, as tensions between the two countries threatened to escalate into a full-scale diplomatic incident.


Earlier Monday, U.S. Attorney General Eric Holder announced that the men, all members of the People’s Liberation Army (PLA), “maintained unauthorized access to victim computers to steal information from these entities that would be useful” to the victims’ competitors in China.


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China and Russia Fail to Reach Agreement on Gas Plan

President Xi Jinping of China and the Russian leader, Vladimir V. Putin, were unable to announce an agreement on a natural gas deal on Tuesday, despite high expectations that mutual political interests would help finally push through the project.


Instead, commercial concerns continued to dominate — specifically, the price of the gas, which China and Russia have been haggling over for nearly a decade. After the meeting between the two leaders, Mr. Putin’s spokesman, Dmitri S. Peskov, said that talks were continuing.


According to Xinhua, the Chinese state news agency, after meeting Mr. Xi in Shanghai, Mr. Putin said, “I’m glad to be informed that the two sides have made significant progress in the price negotiation of the east route of the natural gas project.”


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China ‘uses channels’ to warn North Korea against nuclear test: sources

China has used diplomatic channels to warn North Korea against conducting a fourth nuclear test, multiple China-based diplomatic sources told Reuters, after the reclusive state renewed its threat of “counter-measures” against perceived U.S. hostility.


North Korea, which regularly threatens the South and the United States with destruction, is already under heavy sanctions imposed by several U.N. resolutions beginning in 2006 but has defied pressure to abandon its missile and nuclear programs.


It last conducted a nuclear test in February 2013.


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China signals green light for local government bond sales in 2014 to curb debt risks

China’s cabinet signaled on Tuesday it is closer to letting local governments directly sell bonds for the first time and said it would phase out opaque financing vehicles that are thought to have built up trillions of dollars of high-risk debt.


In a sweeping statement, the country’s top economic planner, the National Development and Reform Commission (NDRC), said Beijing would deliver stable economic growth whilst pursuing reforms.


The promise to stay focused on reforms would appease critics who worry China’s enthusiasm for bringing about painful changes may be on the wane as its economy stumbles.


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Monday, 19 May 2014

China suspends cyber working group activities with U.S. to protest cyber theft indictment

China on Monday decided to suspend activities of the China-U.S. Cyber Working Group as U.S. announced indictment against five Chinese military officers on allegation of cyber theft.


“Given the lack of sincerity on the part of the U.S. to solve issues related to cyber security through dialogue and cooperation, China has decided to suspend activities of the China-U.S. Cyber Working Group,” said Foreign Ministry spokesman Qin Gang regarding the U.S. Justice Department’s announcement on Monday.


The US side announced on Monday indictment against five Chinese military officers on allegation of cyber theft. This U.S. move, which is based on intentionally-fabricated facts, grossly violates the basic norms governing international relations and jeopardizes China-U.S. cooperation and mutual trust, Qin said.


China lodged protest with the US side right after the announcement, urging the US side to immediately correct its mistakes and withdraw the “indictment”, he said.


The position of the Chinese government on cyber security is consistent and clear-cut. China is steadfast in upholding cyber security. The Chinese government, the Chinese military and their relevant personnel have “never engaged or participated” in cyber theft of trade secrets. The U.S. accusation against Chinese personnel is “purely ungrounded and with ulterior purpose,” Qin said.


Qin said it is a fact criticized by other countries and global media that the US government and relevant departments have long been involved in large-scale and organized cyber theft as well as wiretapping and surveillance activities against foreign political leaders, companies and individuals.


China is a victim of severe U.S. cyber theft, wiretapping and surveillance activities. Large amounts of publicly disclosed information show that relevant U.S. institutions have been conducting cyber intrusion, wiretapping and surveillance activities against Chinese government departments, institutions, companies, universities and individuals, according to the spokesman.


China has, on many occasions, made serious representations with the U.S. side, Qin said, “We once again strongly urge the U.S. side to make a clear explanation of what it has done and immediately stop such kind of activities.”


Qin warned that China would react further to the U.S. “indictment” as the situation evolves.






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Russia-China fund puts $1b into deals

Investments in joint projects concentrate on infrastructure, tourism and logistics sectors


The Russia-China Investment Fund has sunk about $1 billion into three infrastructure, tourism and logistics deals, and a senior executive told China Daily that investing in agriculture and natural resources sectors will be next on the agenda.


“China is Russia’s largest trading partner and an important partner of RDIF,” Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said on Monday.


“With deals in infrastructure, tourism and logistics made, we will pay attention to opportunities in sectors including agriculture and natural resources.”


The three deals will be signed during Russian President Vladimir Putin’s working visit to China on Tuesday and Wednesday.


They include the first Russia-China railway bridge across the Heilongjiang River, called the Amur River in Russia; tourism and senior living infrastructure in the two nations; and investment in the Chinese division of leading logistics provider Global Logistic Properties Ltd.


The Russia-China Investment Fund made the first deal last year with the acquisition of an approximately 42 percent stake in Russian Forest Products Group.


Together with China Investment Corp, the Russian Direct Investment Fund set up RCIF in 2012, a private equity fund in which both parties committed $1 billion each, with another $2 billion coming from additional Chinese institutional investors.


In addition to 70 percent of investment in Russia, 30 percent of the fund will go toward China.


According to the infrastructure deal, RCIF will have a joint investment with OJSC Far East and Baikal Region Development Fund to construct the first railway bridge between the two nations.


The bridge will have a capacity of up to 21 million tons per year.


The railway bridge’s construction will create a new export corridor between Russia and China, and alleviate transport constraints between new fields being developed in Russia’s Eastern Siberia and the Far East.


The bridge also will significantly increase the turnover of goods and the competitiveness of Russian producers and exporters, reducing transportation distances to the end consumer by about 700 kilometers, compared with existing rail routes.


“The Russia-China Investment Fund not only builds financial bridges between Russia and China but also invests in the infrastructure to benefit both countries,” said Dmitriev.


“The future development of new natural resource deposits and increased level of traffic over the next 10 years means the region could face a shortage of export transportation capacity.”


The tourism deal between RCIF and Vcanland Holdings Group, a leading developer of tourism infrastructure and senior living communities in China, will create a joint investment fund targeting $800 million with a focus on Hainan province in China and Lake Baikal, Vladivostok and Sochi in Russia.


The Russian travel and tourism industry is expected to grow by 4 percent annually, and tourism between Russia and China is projected to grow even faster. About 3.3 million Chinese tourists visited Russia in 2012 – triple the number from 2007, according to Beijing Daily.


“We are very excited about the opportunity to capture the favorite social and economic trends in both sectors and create significant values for both parties and future investors,” said Li Defu, chairman of Vcanland.


RCIF and Hopu Investment Management Co reached an agreement in principle with Global Logistic Properties Ltd to invest in its Chinese division as part of a consortium.


GLP’s expertise may be highly valuable in the Russian logistics services market because of the increasing trade turnover between Russia and China.


China is Russia’s largest trading partner, with trade volume between the two countries reaching $90 billion in 2013. The two countries aim to raise that volume to $200 billion by 2020.


By Cai Xiao (China Daily)






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