SlashAsia » China

China tightens Internet security, Google takes a hit

Alexandra Stevenson — Mon, 22 Jun 2009 04:07:47 +0000

Under the guise of cleaning the Internet, the government suspended Google’s Chinese portal for linking to pornographic sites, and implemented regulation requiring computers sold after July 1 contain Green Dam Internet filter software. Xinhua reports an “army of tens of thousands of volunteers” will be registered officially and tasked with the responsibility of reporting questionable content and “uncivilized behavior”. Several conspiracy stories are afoot as to the severity of Google’s punishment, questioning ties between Baidu, Google’s biggest China competitor, and state run media CCTV, which lambasted Google in three different news programs this week. Baidu has reportedly invested large sums into CCTV ads.

China filters Google in war on “uncivilized behaviour”, Bloomberg

Who profits from Google’s misfortunes?, ChinaStakes

Beijing to recruit tens of thousands of “Internet surveillance volunteers”, Xinhua News

Analysis of the Green Dam Censorware system, University of Michigan

West shuns Myanmar while Asian countries compete for trade deals

Alexandra Stevenson — Mon, 22 Jun 2009 04:04:34 +0000

Western calls for human rights in Myanmar fall on deaf ears while Asian money talks. As Western countries continue to impose trade sanctions on Myanmar and press for the release of Nobel prize winning Aung Sun Suu Kyi, Asian countries have jumped in to trade with the military junta. According to the Wall Street Journal, over the last five years trade with China has more than doubled, and other Asian countries including India, Thailand and Singapore are in competition for Myanmar’s resources. Business is good and the profits are high, as South Korean company Daewoo recently testified to when it forecast a US $10 billion profit over 25 years with a proposed 1100 km natural gas pipeline to be built from Myanmar to southwest China, reports The Irrawaddy. The main buyers of this gas will be state-owned China National Petroleum Corporation. Other countries in the bid included South Korea, India, Thailand and Japan. China continues to press for closer economic ties with the military junta, echoed in Chinese media last week during Burmese Vice Senior General Maung Aye’s visit to China and talks with Chinese Vice President Xi Jinping.

Myanmar second top leader Maung Aye leaves on official visit to China, Xinhua News

Skirting Western sanctions, Myanmar prospers, The Wall Street Journal

Weekly business roundup, The Irrawaddy

China tells Vietnam it has ‘indisputable’ sovereignty over South China seas

Alexandra Stevenson — Sun, 14 Jun 2009 17:26:20 +0000

Over the last few weeks Hanoi has voiced its concern about increased Chinese naval patrols in the South China Sea, and extension of a fishing ban which Vietnam argues is a violation of its territorial rights. According to the Vietnamese foreign ministry Vietnamese fishermen have been fined and arrested in large numbers by Chinese patrols lurking in Vietnamese waters. China has enforced annual fishing moratoriums in the South China Sea since 1999, but this year’s tougher measures are being met with opposition and the conflict has sparked new tension over territory which is already contested. In an official response to a complaint made by the Vietnamese government on June 4, Chinese spokesman for the ministry of foreign affairs claimed that China has ‘indisputable’ sovereignty of the South China Seas.

FM: South China Sea fishing ban ‘indisputable’, Xinhua News Agency

Vietnam asks China not to obstruct fishermens’ normal fishing, VietNamNet

Vietnam protests Chinese fishing ban, UPI

Hanoi protests fishing ban, BBC News

IIF in Beijing, discusses new global financial order

Alexandra Stevenson — Sun, 14 Jun 2009 17:20:11 +0000

All eyes were one China at an international finance association this week in Beijing. The International Institute of Finance held its Spring meeting in the capital where global financial powers gathered to discuss how to reshape the global financial system and define what a new one would look like. Lui Mingkang, China Banking Regulatory Commission Chairman, highlighted the key to China’s development will be the “scientific development” of capital markets. In response to several members’ comments that the financial system has simply detoured at the moment but will return to the old financial blueprint, Lui was blunt: the response to the crisis is not enough, a new road map has to be drawn up. The IIF predicted a more optimistic 7.5 percent GDP growth for China this year, as compared with the World Bank forecast of 6.5 percent.

China’s GDP will grow 7.5 % this year, finance association forecasts, The Wall Street Journal

China a new architect for global finance?, Beijing Briefs

China refuses binding caps but pledges higher solar, wind power targets

Alexandra Stevenson — Sun, 14 Jun 2009 17:16:21 +0000

Chinese leaders this week highlighted praise for green policies from visiting US climate change envoy Todd Stern while upping the ante on solar and wind power by pledging to reach the European target for 2020 in solar and wind power. Following Stern’s four-day visit during which the two countries discussed cuts on greenhouse gas emissions, Chinese foreign ministry spokesman Qin Gang announced it would be impossible for China as a developing country to accept any “binding or compulsory target”. The government has pledged, however, to ensure constructive negotiations in December climate policy talks in Copenhagen. Earlier in the week Zhang Xiaoqiang, vice-chairman of China’s national development and reform commission, told The Guardian that Beijing would be capable of surpassing previous targets for wind and solar power, hitting a 20 percent renewable target. The Chinese government has also promised to allocate US $30 billion for low carbon energy projects.

China launches green power revolution to catch up with the west, The Guardian

US envoy speaks highly of China’s measures to contain green house gases, Xinhua News Agency

China says no to greenhouse gas cuts, Agence France-Presse

NKorea increasingly belligerant, UN members increasingly intolerant

Alexandra Stevenson — Mon, 08 Jun 2009 01:03:56 +0000

As North Korea continues to spew provocative threats, members of the UN security council and regional allies are responding with increasingly less tolerance. China’s policy towards North Korea, once favorable, is turning tough as some analysts like Peking University’s Zhu Feng point out that China always believed that the Stalinist state would give up nuclear weapons in exchange for economic and security interests. The US has also taken a stronger stance, with President Obama announcing on the weekend that the administration would take a “very hard look” at how to proceed with North Korea, calling its actions “extraordinarily provocative.” South Korean president Lee Myung-bak has also declared South Korea will not back down. Meanwhile, North Korea is holding two American journalists hostage, for allegedly illegally entering the country, and will use them as bargaining chips. The only glimmer of hope currently is a two Korea discussion next week, to take place in an industrial park they jointly own.

A changing Chinese tune on North Korea?, Pomfret’s China blog

Obama is taking a “hard look” at how to handle North Korea, The Wall Street Journal

S. Korea says no compromise against North’s threats, Reuters

Obama says North Korea has been ‘extraordinarily provocative’, Bloomberg

China, Japan hold bilateral talks

Alexandra Stevenson — Mon, 08 Jun 2009 00:57:04 +0000

The world’s number two and three economies Japan and China met Sunday in a rare show of bilateral cooperation to boost global economic lag. The two rivaling countries agreed to cooperate in 11 areas including agriculture, environment, technology, aid and energy saving policies. China and Japan will jointly launch aid assistance programs to developing countries, and both countries pledged to curb Intellectual Property violations. They will also seek a US leadership role in global trade liberalization talks. This could take place as soon as next month, when the three countries plan to hold the first trilateral policy dialogue on the Asia situation, as well as larger global issues.

Japan, China vow to promote world economic recovery, Kyodo News

China, Japan seek closer cooperation on various economic, trade issues, Xinhua

US, Japan, China trilateral powwow, The Japan Times

China to cut gas mileage 18% by 2015

Alexandra Stevenson — Mon, 08 Jun 2009 00:50:59 +0000

China has drafted rules for tighter control of gas mileage to improve fuel economy 18 percent, or 42.2 miles per gallon by 2015. The regulations, which are stricter than US president Obama’s recently announced standard of 35.5 miles per gallon by 2016, will likely come into effect early next year. China’s average fuel economy is already higher, at 35.8 miles per gallon, because small cars are more common, with only a one percent sales tax to sport utility cars’ 40 percent. The concerns about China’s fuel economy go beyond basic environment ones, ranging from the geopolitical and strategic realities of oil imports dependence, to increasing the competitiveness of car imports. These regulations are set to benefit Chinese car makers most.

China to impose stricter gas mileage rules than the US, EcoGeek

China is said to plan strict mileage rules, The New York Times

China tightening its fuel standards, The Business Insider

Chinese government issues green measures for overseas investment

Alexandra Stevenson — Mon, 01 Jun 2009 00:35:00 +0000

Two government bodies have drafted a list of mandatory environmental measures for Chinese outbound investment, state media reported last week. The Ministry of Environmental Protection and the Ministry of Commerce have outlined a set of requirements that Chinese firms will have to observe, along with international environmental treaties. This comes as the amount of Chinese investment abroad has seen a steep increase; last year overseas investment reached US $40.7 billion. According to state-run China Daily, corporations are expected to uphold Chinese environmental standards in countries where rules are lax.

Green rules eye Chinese firms abroad, China Daily

China-Taiwan cautious detente?

Alexandra Stevenson — Sun, 24 May 2009 16:21:17 +0000

The 15-member Taiwan delegation arrived in Geneva for the World Health Assembly over the weekend, the first time the island has participated in 38 years. This comes just a week after 100,000 Taiwanese protested President Ma Ying-jeou’s China friendly policies. Since the start of his presidency a year ago Ma has made it his priority to ease cross-strait trade relations, encouraging mainland tourism on the island and easing trade barriers for investment. This has not been met well and polls show 85 percent of the Taiwanese population oppose a communist leadership. Democratic Progressive Party official Lai Ching-Te says mainland acceptance of Taiwan’s participation at the WHA is a positive sign, but it has weakened Taiwan’s sovereignty, because the island is attending as an observer rather than a sovereign state. This is a view shared by much of the island. Meanwhile, a recent bid by China Mobile for a 12 percent stake of Taiwan’s Far EasTone Telecommunicatons will likely fall through as officials cite security reasons.

A health turn for Taiwan-China ties, Asia Times

Pres. Ma pledges to push for rapprochement with China, The China Post

Beijing to release new renewable energy projections, announces its stance on climate policy

Alexandra Stevenson — Sun, 24 May 2009 16:12:35 +0000

The Chinese government issued a statement Thursday saying rich nations should cut emissions 40 percent from 1990 levels by 2020, and provide 0.5 to 1 percent of economic wealth to help other countries curb carbon emissions. The statement was issued by the National Development and Reform Commission, and indicates China’s climate stance ahead of the UN Climate Conference in December. About 80 percent of energy power still comes from coal and the government projects greenhouse emissions will keep growing until 2035. But it is also trying to make headway in its own capacity to curb global warming; a new plan for renewable energy is said to have raised targets from a previous 2007 plan in areas such as wind power, biomass power and solar power. For example, a previous target for wind energy of 30 million kilowatts will be raised to 100 or even 150 kilowatts.

China to announce renewable energy blueprint, Caijing Online

China tells rich nations to cut emissions by 40 percent, Planet Ark

Mandarin-speaking Republican governor to be US ambassador to China

Alexandra Stevenson — Mon, 18 May 2009 04:56:13 +0000

US President Barack Obama has nominated a Republican governor of Utah with strong ties to China as ambassador, signaling the importance of improving relations with China above bipartisan politics. Jon Huntsman Jr. is known to be an advocate of strong trade relations with China, and has talked about the need for the two countries to work together on environmental issues. In a message to Chinese leadership, Obama said that there are many issues which both countries have yet to agree upon and improving relations will require “candor and open discussion” so that “our nations play by the rules.” The current relationship between China is precarious for the US; China is one of the largest buyers of American debt, with a record US $767.9 billion. Strained relations could see China pull out of its US Treasury bond purchases, causing Americans to feel serious hikes in interest rates. A former ambassador to Singapore, Hunstman has been described as a “problem-solver, not a dogmatist”. The Utah governor’s family owns chemical company Hunstman Corp, which operates in China, and he has a daughter who was adopted from China.

Obama names Republican governor as envoy to China, Reuters

Potential Obama rival chosen as China envoy, The Washington Post

Obama taps Utah governor as China Ambassador, Wall Street Journal

Speaking out: Zhao Ziyang’s memoir

Alexandra Stevenson — Mon, 18 May 2009 04:34:13 +0000

The memoir of a former head of the Chinese Communist Party who spoke out against 1989 brutality in Tiananmen, entitled ‘Prisoner of the State: The Secret Journal of Zhao Ziyang’, will be released next week, four years after his death. Zhao Ziyang called the CCP’s use of martial law in 1989 during protests in Tiananmen illegal, and wrote that there could have been a peaceful solution. He criticized the conservative ‘old guard’ within the CCP leadership, in particular Deng Xiaoping who is touted as the man who changed the lives of millions ordinary Chinese through his economic reform. During and after the harsh crushing of Tiananmen in 1989, Zhao Ziyang spoke out and was relegated to house arrest where began to audio record his memoir. At the end of his memoir he arrives at some radical conclusions for such a high level official. He argues that the CCP will have to give up it’s tight control on power, that parliamentary democracy is necessary and that China needs a free press, an independent judiciary and the freedom to organize. It remains to be seen when, if ever, his reform agenda and ideas of touming du, or transparency, will resonate in the top echelons of the party.

Zhao’s memoirs revive Tiananmen, CNN

In posthumous memoir, China’s Zhao Ziyang details Tiananmen debate, faults party, The Washington Post

From the inside, out, The Washington Post

Protests in Taiwan could stall China trade

Alexandra Stevenson — Mon, 18 May 2009 04:17:28 +0000

Tens of thousands took to the streets in Taiwan, protesting President Ma Ying-jeou’s recent trade initiatives they see as too China-friendly. They held placards that said “Say No to China! Say Yes to Taiwan”, and voiced their concerns that recent rounds of trade talks with China will compromise Taiwanese sovereignty. The agreements, such as opening of trade barriers for mainland companies to invest in Taiwan, is helping to ease 60 years of tension between Taiwan and China and is boosting a flagging economy. While Ma has promised every cross-strait agreement will be “mutually beneficial”, many Taiwanese see China’s intentions as zero sum.

Taiwanese vent anger at Ma policies, Taipei Times

Taiwan protests target leader’s pro-China policies, Associated Press

On Chinese zero-sum policy, Taipei Times

Mao revival and a return to the iron rice bowl?

enrico — Tue, 12 May 2009 16:03:56 +0000

Economic woes have caused a Maoist revival for little red books and iron rice bowl jobs. The Asia Times quoted Hong Kong daily Ta Kung Pao figures of close to 30,000 visitors flocking to Mao’s hometown on April 2, days before China’s Chenming festival when Chinese worship their ancestors. University students are rethinking economic reforms amidst an extremely tough job market, while hundreds of thousands of graduates are jobless. The Chinese Academy of Social Sciences estimates China’s unemployment rate is 9.4 percent, which is almost double the government’s earlier March figure of urban unemployment.

Tough times breed nostalgia for Mao, Asia Times Online

China can have its Green cake and eat it too

enrico — Tue, 05 May 2009 06:19:03 +0000

Cutting back on greenhouse gases doesn’t have to mean limiting China’s economic development, says a report submitted to Chinese officials this week. The report, written by economists at British Tyndall Center for Climate Development, argues that low carbon development is a realistic goal for China, but that the country needs to focus on energy efficiency. The authors also argue that a limit must be placed on China’s carbon emission peak, at the very latest by 2030, otherwise the world’s largest carbon emitter will have a far greater challenge to deal with. Large investments into renewable energy are urged and foreign countries will have to contribute. The report offers four possible scenarios for a low carbon future, all of which involve nuclear energy. Three involve carbon capture and technology to reduce coal-burning energy.

CO2 need not slow China’s growth , China Dialogue Blog

China can achieve low carbon growth, Tyndall Centre for Climate Change Research

The tightrope act of China-Taiwan relations

enrico — Tue, 05 May 2009 06:19:02 +0000

China’s acceptance of Taiwan’s participation at a WHO meeting, as well this week’s cross-straits trade talks, are the latest in warming relations since Taiwanese leader Ma Ying-jeou took office. It will be the first time since 1972 that Taiwan will participate in a WHO world health assembly. The newest rounds of trade talks included the possibility of a China Mobile purchase of 12 percent stake in Taiwanese Far EasTone Telecommunicatons.The easing of trade barriers for Taiwanese businesses comes as a relief for those already part of the $100 billion invested in mainland sectors. New agreements may be a necessary boost for Taiwan’s economy, which saw big gains in the stock market at the end of the week. The Weighted Price Index of the Taiwan Stock Exchange rose 6.7 percent, the highest rise in nearly 18 years. While all this looks good for now, some analysts question how many Beijing concessions will be ceded before the question of Taiwan independence arises. Some continue to warn, Beijing may offer non-zero sum cooperation in tactical matters, but as a means for a zero sum strategic end.

Taiwan stocks on fire on China Mobile-Far EasTone deal plan , Market Watch
China Mobile to buy stake in Taiwanese operator , PC World
Regulations on Chinese investment to be released late May, The China Post
On Chinese zero sum diplomacy , The Taipei Times
Taiwan shares end sharply up on China invest hopes,2Q outlook, The Wall Street Journal

New Chinese English paper launches

enrico — Wed, 29 Apr 2009 02:26:44 +0000

Hoping to increase its global news presence, the Chinese government has launched a new English language newspaper, The Global Times. An editorial in the first edition claims it “strive[s] to reveal a complete and true picture” of China, but the paper is published by state-owned People’s Daily. The cover story may say it all; “Chinese call for stronger naval presence” according to 81.7 percent of Chinese polled online who want to see a blue-water navy. The launch came at the start of celebrations for Chinese navy’s 60th anniversary, and over a month after a confrontation between US Navy ship and Chinese vessels in the South China Sea which brought up issues of territorial sovereignty (See: China-US Military Relations Challenged). Without any details, the article claims “experts are also dismissing foreign speculation about China’s intent” to build a strong navy to settle maritime disputes. While unlikely, it remains to be seen if this new publication will push any boundaries in the Chinese media.

Just another media mouthpiece

China lodges first trade complaint against US to WTO

enrico — Sun, 19 Apr 2009 20:45:02 +0000

China’s Ministry of Commerce announced the Chinese government has filed a complaint to the WTO about the nature of a US ban on Chinese poultry. The US Senate Tuesday passed an act which included a ban of chicken parts from China. The Chinese government claims this ban violates global commerce rules and Ministry of Commerce Yao Jian called it “discriminatory”. Trade of poultry resumed in 2004 after a suspension during the bird flu outbreak.

China slashes US measure of banning poultry import, Isria

China hauls US to WTO in 1st case vs. Obama admin, Jakarta Post

China sees 40% drop for iron ore

enrico — Sun, 19 Apr 2009 20:42:26 +0000

Despite global slowdown in demand for iron ore, China has imported 131 million tons in the first quarter, up 18.8% from last year. As Japan, South Korea and China engage in price negotiations with BHP Billiton, Vale and Rio Tinto, it appears that iron ore prices will drop 30%, 50% and 40% respectively. China is now relying mainly on imported iron ore, with 70% of China’s own mining capacity out of commission. Domestic mines that tend to be small scale and produce low grade iron can’t compete with significant price drops in materials and freight cost. Analysts say China could import as much as 100 million additional tons for the current listed price.

China iron-ore imports hit record 51 Mt, Mining Weekly

China increase China may expect iron ore prices to drop 40%, China Stakes

From US economic model to “Asian values” model?

enrico — Sun, 19 Apr 2009 20:38:30 +0000

China flexed its economic muscle this week at the BOAO Forum for Asia, calling on global monetary diversification and pumping $10 billion into a China-ASEAN infrastructure investment fund. Some Chinese officials claim the economy has “touched bottom” and predict growth to reach 7 percent this quarter (Zheng Xinli), but in an opening speech Premier Wen Jiabao explained that China alone won’t save the world economy. Foreign media has questioned the accuracy of statistics like recent 6.1 percent growth, to which the National Bureau of Statistics has promised “true and credible” future figures. Stats aside, it appears China does plan to influence Asian countries to do things with ‘Asian values’. Just two weeks after China voiced concerns about the current global economic order at the G20 and made calls for a new international reserve currency, state media writes “many countries pin hopes on the recovery of the world’s third largest economy.” It remains to be seen just what this recovery will look like.

China announces $10 billion Asian infrastructure investment, Voice of America

China alone unable to save world: official China Daily

Leaders to seek “Asian value” to tackle financial crisis at BOAO Forum for Asia, Xinhua

China says to improve economic statistics, China Daily

China pledges $40 bln to IMF, vies for greater global presence

enrico — Sun, 12 Apr 2009 18:06:22 +0000

At the recent G20 summit in England, China promised $40 bln to IMF’s total $750 bln rescue package. China’s premiere business magazine Caijing points out this sum, 5.3 percent of the entire $750 billion pledged, is well above China’s 3.8 voting share in the IMF. This has left some wondering if China is stepping up to the global economic plate.

China Ponies Up Significant Scratch to the IMF
G20 Members to Inject US$750 Bln into IMF, Caijing Magazine

Internet in China becomes a platform for muckracking

enrico — Mon, 06 Apr 2009 04:26:46 +0000

Recently a group of Chinese Internet users went on a witchhunt to expose a local government official at a media watchdog, posting uploaded receipts adding up to nearly $7000 in dining, entertainment and massage expenses. Dubbed the Liuyang Scandal, Internet users started asking how such a lowly public servant could be living such a lavish lifestyle. Analysts point to the Internet as a content firehose that officials will have trouble controlling in the future. An estimated 3000 websites are created daily and while the government can limit some websites by setting up campaigns in the name of ridding pornography, for example, many say online communities are tuned in to updates on new sites before they catch the attention of officials. And the muckracking is not just limited to corruption. In another recent case, the mother of a young man executed for killing six police officers last year has used the Internet as a platform to tell her harrowing story.

China Web users turn keen eye back on government - Reuters
The Story of Cop-Killer Yang Jia’s Mother - Beijing Briefs

Poll: As world views of China decline, China’s own opinion rises

enrico — Mon, 06 Apr 2009 04:23:42 +0000

According to a recent poll by GlobeScan and University of Maryland, views that China’s global influence is negative have risen, for the most part. China’s view of itself has risen to 92% positive of it’s role abroad. In France 70% polled had negative views on the rising power, while Italy showed 68%, Germany 69% and Spain 54%. Meanwhile in Australia, a major trading partner for China, positive attitudes about China decreased to 47% from 60%. Postitive attitudes about China have risen in some areas of the world, mainly in developing countries with resources that China is pouring money into. 75% of people polled in Ghana had positive views of China, Nigeria 72%, those in Central America came to 62%.

Views of China and Russia Decline in Global Poll - BBC World Service Poll
Pomfret’s China: China’s Far Too Rosy Self Image - The Washington Post/Newsweek

Bill Gates gives US $33 million to Chinese government to fight TB

enrico — Mon, 06 Apr 2009 04:21:15 +0000

A WHO conference convened in Beijing this week to discuss international efforts to fight an increasingly virulent strain of tuberculosis in developing countries. The new drug-resistant strain could have a major impact globally, according to WHO director-general Margaret Chan, who calls the situation “potentially explosive”. Currently, 5% of cases of the virulent strain are predicted in China, and less than 3% are treated. Gates announced that China has the scale of patients and a “political commitment to public health” that makes the country a testing lab and potential model for developments. Plans involve treating 20 million people initially, eventually covering 100 million people within 5 years.
Bill Gates joins Chinese government in tackling TB ‘timebomb’ - The Guardian
WHO: World must fight drug-resistant TB threat - AP/Google

Region tense as belligerent North Korea launches possible missile

Alexandra Stevenson — Mon, 06 Apr 2009 03:30:14 +0000

North Korea launched it’s Taepodong-2 satellite on Sunday morning at 11:30 Pyongyang time from the Musandan-ri base. Japan did not intercept the launch with its own missiles, after vowing to do so if the rocket were to threaten Japanese territory. Two booster stages fell into the Pacific and it remains unclear if the satellite was launched into space successfully. America and South Korea, who kept destroyers on close watch near North Korea, said they would not stop the launch but strongly condemned it. China, the Year of DPRK-China Friendship host and a key broker in negotiations with the rogue state, has chosen not to take a strong stance, urging ‘close communication and coordination’ instead. Analysts now wait to see how regional powers and UN Security Council will deal with potential ensuing instability. An emergency meeting convened on Sunday for 3 hours, reaching deadlock as countries like China, Russia, Libya and Vietnam voice concern of alienating the rogue state.

DPRK premier leaves for Beijing for official visit, Xinhua News

Defiant N Korea launches rocket , BBC News
Launch, What Launch?, Analysis from Asia Times
Pyongyang’s account of events according to state propaganda KNCA

China-US military relations challenged

Alexandra Stevenson — Mon, 16 Mar 2009 01:03:55 +0000

China and the US are flirting with military conflict after last week’s confrontation between US Navy Impeccable and Chinese vessels in the South China sea. The Defense department says the US Impeccable was operating legally according to international law, 120 km off China’s Hainan island in international waters. The Chinese Defense Ministry says the vessel was in China’s economic zone and needed permission. The issue here is not just two different definitions of territory, but also an indication of China’s growing military capabilities and willingness to safeguard its national interests, according to an Asia Times article. The US, among other countries, considers the area in the South China Sea to be part of international waters and China claims an economic zone extending 200 nautical miles from its coast. The incident recalls a similar 2001 incident which occurred in the same territory at the start of the Bush presidency when a US spy plane collided with a Chinese fighter. The Chinese claim the US Impeccable was spying, the Americans say the vessel had civilian workers who were surveying the ocean floor. Hainan island has a submarine base where China’s most sophisticated navy vessel rests.

Despite potential for a larger spat, Chinese Foreign Minister Yang Jiechi and US Secretary of State Hillary Clinton met Wednesday, and US President Barack Obama met with Yang on Thursday. Neither side has retracted statements but it seems that both countries value cooperation over confrontation at the moment.

Links and sources:

Naked aggression, The Economist

China-US spat a drop in the ocean , Asia Times

Asia: Markets rally, currencies at 2009 high

Alexandra Stevenson — Mon, 16 Mar 2009 00:01:56 +0000

Asian currencies strengthened this week following an announcement that American banks could stand without government buyout, and optimism about new Chinese and Japanese stimulus packages. Japan’s Nikkei rose 5.15%, South Korea’s Kospi 6.7%, while Singapore’s Strait Times Index rose 5.6%. The Malaysian ringgit increased by 0.3% after the government announced a US $16 billion stimulus plan. The Taiwan dollar rose 0.8%, and the Thai baht 0.4%. Despite a regional rally, the Philippines peso and Vietnam dong were unaffected, and China’s Shanghai Composite actually dropped by 0.2%, after Wen Jiabao expressed concern about the stability of US Treasuries.

The Bank of America Corp., JP Morgan Chase & Co. and Citigroup Inc. announced this week that they do not need government support and may even see profits this year, boosting confidence in the Asia region as well as Europe. While analysts say this is just a temporary respite, things may be looking up in Southeast Asia. Citigroup has indicated it’s confidence that Southeast Asian countries will come out of the crisis soon, announcing plans to start equity brokerage business in Malaysia, Vietnam and Indonesia

Links and sources:

Citigroup to boost Asian equity trade , Gulf Daily News

Nikkei surges 5% as US bank hopes lift Asian markets , CNBC News

Asian stocks lifted , The Straits Times

Asian currencies best of week 2009, led by won, rupiah , Bloomberg

China: One in every four women have abortions

Alexandra Stevenson — Sun, 22 Feb 2009 15:38:43 +0000

The Shanghai Daily has reported findings from an unnamed women’s health conference that took place this week. According to conference findings, 27.3 percent of women in their 20s have abortions in mainland China, and just 2.6 percent of Chinese women use oral contraceptives, indicating a serious gap in education about contraceptives.

The result of China’s one-child policy, abortions and sterilization are common practice in China, raising concerns abroad about the practice, which is often forced. Now may be the right time to consider new education program initiatives; Obama recently agreed to give U.S. funding to the UN Population Fund, which helps countries in Africa, Asia and South America to create family planning programs. Proceeding with this will prove to be tricky, as pro-life advocates in the U.S. criticizes the Chinese method of population control and see UNPFA as forgiving to policies that ignore women’s rights.

Links and sources:

Flap over China’s 1-child policy stirs Washington Times

One in four women in their 20s have abortions, Shanghai Daily

Asia: ASEAN countries to demonstrate self-sufficiency and open trade

Alexandra Stevenson — Sun, 22 Feb 2009 15:35:08 +0000

Finance ministers in the Asia region are holding bilateral talks in the lead up the 14th Association of South-east Asian Nations (Asean) summit, in a show of greater strategic cooperation to prevent trade protectionism. Malaysia held bilateral talks with Indonesian and Chinese finance ministers this weekend, to promote trade. Officials from Japan, China and Korea met Saturday afternoon to discuss counter-measures to economic slowdown. Finance chiefs from Asean countries and Japan, China and South Korea will gather at the summit on February 27 in Thailand to discuss concrete and collective response to financial woes.

Asean will speak out against using trade protectionism as a way to cope with the current financial crisis, Thai Prime Minister Abhisit Vejjajiva has said. Mr. Abhisit has encouraged Asean countries to seek aid from other regions, acknowledging that the IMF ” simply does not have the resources, money and time to look into the various problems in different regions.” The Asia Development Bank will participate in the summit as Asean members determine the details of a foreign reserve fund pool agreed upon last May. Contributing countries will discuss management and size of fund.

Links and sources:

Asean to resist protectionism, Straits Times

China, Indonesia and China trade talks, Malaysia Star

Asea foreign reserve pool, Xinhua

China: Clinton encourages China to buy U.S., China promises security and liquidity when using foreign reserves

Alexandra Stevenson — Sun, 22 Feb 2009 15:20:40 +0000

U.S. secretary of state Hillary Clinton encouraged China to continue investing in U.S. treasury bonds, after meeting with Chinese foreign minister Yang Jiechi on the weekend. Mrs. Clinton maintained that U.S. debt was still a sound investment. The Chinese foreign minister responded with a promise to ensure security and liquidity when investing with foreign reserves. In September 2008 China became the biggest holder of U.S. debt, with a total of 585 billion dollars.

Links and sources:

China stresses security, liquidity when deploying foreign reserves, Xinhua

Clinton urges China to keep buying Treasury bonds, Associated Press

China: Hotel fire caused by state TV firework show, twelve arrested

Alexandra Stevenson — Sun, 15 Feb 2009 14:55:04 +0000

Chinese state news agency Xinhua has confirmed that a massive Beijing hotel fire that erupted Monday night was started by fireworks set off during an illegal light show organized by Chinese state television station CCTV to celebrate the last day of Chinese New Year celebrations. One firefighter died and seven other people were injured. Xinhua has reported the arrest of 12 people - three CCTV workers and eight technicians hired to set the grade A industrial fireworks off. A Beijing government spokesman told Xinhua that CCTV was denied a permit to set the fireworks because they were too powerful to be set off in an urban environment. Policeman were ignored after they tried to stop the show.

The luxury Mandarin Oriental hotel, designed by Rem Koolhaas and Ole Scheeren, is located in the new CCTV complex next to the new CCTV station and was unfinished.

Reporting from Xinhua News Agency

For comments from Chinese public and online community: WSJ China Journal blog

Danwei

Beijing Briefs

Asia: U.S. Secretary of State first trip abroad to Asia

Alexandra Stevenson — Sun, 15 Feb 2009 14:44:07 +0000

Hillary Clinton will travel to Asia on Sunday for her first trip abroad as U.S. Secretary of State, in a diplomatic gesture that shows a shift of priorities in American foreign policy. Speaking at the Asia Society in New York on Friday Clinton announced the Asian region would be a priority for the Obama administration and is “of vital importance” to the U.S. today and in the future. Her first stop will be Tokyo, where local media have claimed, but not verified, Clinton would meet with opposition Democratic Party of Japan leader amidst political tension. Clinton will then travel to Indonesia, South Korea and finally China, where she will push for more engagement and cooperation on economic policies and environmental issues. North Korea will also be a key topic of discussion, as Beijing plays a key role in slowing Pyongyang’s nuclear program.

Links and Sources:

Speech at the Asia Society - State.gov

Japanese papers report Clinton meeting with opposition leader:

Mainichi

Japan Today

China: Government to launch global media network with Chinese characteristics

Alexandra Stevenson — Sun, 01 Feb 2009 14:36:05 +0000

Chinese state run media corporations CCTV, Xinhua news agency and People’s Daily will receive 45 billion yuan (US$6.58 billion) from the central government to expand their news services. It’s part of what party officials call waixuan gongzuo “overseas propaganda”. One project is to develop a 24 hour English news channel modeled on al-Jazeera, providing Western audiences and Asians with the Chinese perspective. Each media entity is set to receive approximately 15 billion yuan each. CCP overseas propaganda division head Chen Wang: “We must strive to set up a top-line global media arm that covers the entire world and which is multi-lingual, enjoys a large viewership, has a large volume of information and is strongly influential.”

Source: Asia Times Online
http://www.atimes.com/

China: Central Bank Warns Against US “Excuses” for Protectionism

Alexandra Stevenson — Sun, 01 Feb 2009 13:54:53 +0000

People’s Bank of China vice governor Su Ning responded to US State Treasury accusations that China is manipulating its currency, warning the new Obama government against trade barriers, reported Chinese news agency Xinhua. “These remarks are not only inconsistent with the facts but they are misleading about the reasons for the financial crisis.” The Chinese government fears American trade barriers amidst already slowing demand for Chinese exports.

Source: Xinhua News Agency