Archive for ‘China alert’

10/12/2012

* On the brink of gunboat diplomacy

It is truly ironic that China, the nation who suffered from ‘gunboat diplomacy 170 years ago, is apparently adopting the same measures against its smaller and weaker neighbours. If, as a result, we see a resurgence of Japanese militarism, China will only have itself to blame. What is worrying is that amongst leader Xi’s recent pronouncements since becoming head of the Party is the recurrent term ‘nationalism’.  This can mean something innocent such as resuming China’s global pre-eminence which it had until 200 years ago or something more sinister. Let’s hope it is the former.

Inquirer Opinion (Philippines): “The past four weeks saw the swiftest escalation in recent years of tensions over the territorial disputes between China and its neighbors in the Asia-Pacific.

China Gunboat Diplomacy

The tensions spiraled in late November when the province of Hainan, in the southern coastal region of China, issued an imperial-sounding  edict that its so-called lawmaking body had authorized its police patrol boats to board and search foreign ships of any nationality that illegally enter what it considers Chinese territories in the South China Sea. The plan was announced to take effect on short notice: on Jan. 1.

The edict caused considerable alarm among China’s smaller neighbors, including the Philippines, Vietnam, Malaysia, Brunei, and Taiwan, all of whom have overlapping claims on islands in portions of the South China Sea, which China has claimed as exclusively belonging to it on the strength of ancient maps. It also caused consternation among other world powers such as the United States and India, which do not have territorial claims in the South China Sea, which is the shortest route between the Pacific and Indian Oceans and through  which more than half of the globe’s oil tanker traffic passes. The concern of the United States and India, both of which have powerful navies to challenge China’s aggressive assertion of its hegemonic ambitions, involves freedom of navigation and trade routes in the entire China Sea.

The new rules emanating from Hainan will allow its local police—not China’s navy—to seize control of foreign ships that “illegally enter” Chinese waters and order them to change course. The determination of what is illegal is left entirely in the hands of the Hainan authorities. What has affronted the rest of the world is this arbitrary exercise by China to enforce its territorial claims while intimidating its weaker neighbors with threats of its expanding naval power.

The rules shocked China’s neighbors so powerfully because these were issued, not by a democratic political system, but by a provincial government, and was addressed to rival claimants of disputed territories in both the South China Sea and the East China Sea, most of which are democracies. These rival claimants are the Philippines, Vietnam, Malaysia, Brunei, and Taiwan.

The Hainan decision empowering its border police to intercept foreign ships sailing in waters claimed by China as its territory, which also overlaps territories in the South China Sea, affronts other claimants because it is seen as condescending and treating them as vassal states of the suzerain province.

There are now questions raised over whether the new rules were handed down at the instigation of the central Chinese government in Beijing or were initiated by the Hainan provincial government. Whatever is the source of the initiative, the new rules have galvanized countries affected by it to call for a clarification. The rules have accelerated the spiraling of tensions close to a flashpoint, of armed confrontation between Chinese gunboats and those of smaller countries whose ships are being intercepted even in waters claimed by them.

Under the new rules, Hainanese patrols are to prowl the seas far beyond the “baseline” of China’s 12-nautical-mile zone, which is allowed archipelagic countries. The Philippines has joined other nations in a coalition calling for clarification. A report in the Wall Street Journal said experts were unclear how the rules would be applied in practice. According to the report, Wu Sichun, the director of the foreign affairs office of Hainan province, who is also president of the National Institute for South China Sea, gave a narrow interpretation of the regulations.

He said the main purpose was to deal with Vietnamese fishing boats operating in waters near Yonxing Islands in the Paracels, which China calls the Xisha Island.

Wu said the regulations applied to waters around islands which announced “baselines.” He said the baseline is the low-water line along the coast from which countries measure their territorial waters, according to the UN Convention on the Law of the Sea (Unclos).

Wu also said the rules allowed police to check and expel vessels that will enter, or conduct illegal activity  within, the 12 nautical miles of the islands for which China has announced baselines. It is not clear how this rules apply. The problem is that the Chinese are handing down their set of rules, interpreting these at their own convenience, and enforcing these with their own police patrols.

With their unilateral interventions, they have decreed a new law of the sea without the consent of the users of the sea. What worries us is: What happens when the boats they intercept are our gunboats patrolling our own national territory also claimed by China? That can be an act of war. We are on the brink of gunboat diplomacy.

via On the brink of gunboat diplomacy | Inquirer Opinion.

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10/12/2012

* China’s Great Wall Motor in talks for India entry

China is sensing that India’s time is about to come.  Earlier it offered to support infrastructure projects, now it is hoping to make and sell cars in India.

Reuters: “Great Wall Motor Co, China’s biggest SUV maker, is in talks to set up a wholly-owned business in India, an Indian industry official said on Monday, in what would be the first Chinese car maker to enter the country alone.

People look at cars of Chinese automaker Great Wall Motor Co Ltd displayed during the Sofia Motor Show 2011 in Sofia June 15, 2011. REUTERS/Stoyan Nenov

Great Wall, China’s eighth-largest car maker, sent a delegation to India last week, and targets starting manufacturing of vehicles in India in 2016, Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers (SIAM), told Reuters in an interview.

“They are looking at coming into India to set up manufacturing,” said Mathur. “They are meeting industry, they are meeting government, they are meeting suppliers.”

Great Wall executives met with SIAM representatives last week, Mathur said. He did not provide details of investments planned.

Great Wall representatives could not be reached by Reuters for comment.

India’s car market has attracted billions of dollars in investment from overseas manufacturers, such as General Motors (GM.N), Ford (F.N) and Toyota (7203.T). But Chinese car makers have not yet made significant inroads into the country.”

via China’s Great Wall Motor in talks for India entry: industry official | Reuters.

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09/12/2012

* Canada OK’s foreign energy takeovers, but slams door on any more

China acquires more natural resources.

Reuters: “Canada approved China’s biggest ever foreign takeover on Friday, a $15.1 billion bid by state-controlled CNOOC Ltd for energy company Nexen Inc., but drew a line in the sand against future buys by state-owned enterprises.

A man walks into the Nexen building in downtown Calgary, Alberta, July 23, 2012. REUTERS/Todd Korol

In a fierce defense of a tough, new foreign investment framework, Prime Minister Stephen Harper said Canada would not deliver control of the oil sands – the world’s third-largest proven reserves of crude – to a foreign government.

The ruling, anxiously awaited by investors and politicians alike, followed months of heated debate about how much of Canada’s energy sector could and should be absorbed by companies run by other nations.

The bid triggered unusually open dissent among legislators in the ruling right-of-center Conservatives, many of whom were particularly nervous about the idea of allowing China to gain control of the oil sands.

Canada said yes to this deal, but will not do so next time.

“To be blunt, Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead,” Harper told reporters after Ottawa gave the deal the green light, along with approval for the less controversial takeover of gas company Progress Energy Resources Corp by another state-owned energy company, Petronas of Malaysia.

“Foreign state control of oil sands development has reached the point at which further such foreign state control would not be of net benefit to Canada,” he added.”

via Canada OK’s foreign energy takeovers, but slams door on any more | Reuters.

See also: https://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/

09/12/2012

* China to Flatten 700 Mountains to Build a City

Is there anything the Chinese won’t attempt?

Times: “Last month China made news with the surprising announcement that a firm in the city of Changsha would attempt to build the world’s tallest skyscraper in 90 days. Now, the country is making headlines with another ambitious challenge — flattening 700 mountains in order to build a city.

Lanzhou, China

The so-called “mountain-moving project,” was actually launched in October, and not only is the scale gargantuan, but the costs are astronomical. As much as $3.5 billion will be used to blow up 700 mountains, the Guardian reports, to make room for a full-fledged city in a poor, mountainous province in northwestern China. The country’s state council approved the plan in August after years of preparation, according to China Economic Weekly magazine.

The future city, called the Lanzhou New Area, will be built on the outskirts of Lanzhou, the capital of Gansu province with a population of 3.6 million. The company behind the proposal, China Pacific Construction Group,  promises to build an urban paradise, 10 square miles in size and capable of generating as much as $43 billion in GDP by 2030, China Daily reports.

The promotional video shows the new metropolis, which will cost another $11 billion to build, will be filled with high-rises, lakes, beaches and gardens.

It sounds grand — except for the fact that Lanzhou has some of the worst pollution in China, according to World Health Organization. Factories producing textiles, fertilizer and chemicals have clogged the air with smoke and particulates, while their waste has discolored the Yellow River, which runs through the province.

Experts have raised concerns about whether the project is environmentally viable. Gansu is an arid province, surrounded by deserts and scoured by sandstorms. But China Pacific Construction Group, one of the nation’s biggest construction companies, said there is no need to worry.

“Lanzhou’s environment is already really poor, it’s all desolate mountains which are extremely short of water,” a spokesperson told the Guardian via email. “Our protective style of development will divert water to the area, achieve reforestation and make things better than before.””

via China to Flatten 700 Mountains to Build a City | TIME.com.

07/12/2012

* Apple to return some Mac production to U.S. in 2013

Yet another instance of reverse offshoring or re-onshoring.

Reuters: “Apple Inc plans to move some production of Macintosh computers to the United States from China next year, Chief Executive Tim Cook said in remarks published on Thursday, in what could be a important test of the nascent comeback in U.S. electronics manufacturing.

An Apple logo is seen at the Apple Worldwide Developers Conference 2012 in San Francisco, California June 11, 2012. REUTERS/Stephen Lam

Apple makes the majority of its products, from Macs to the iPhone and iPad, in China, the world’s factory floor for electronics. But like other U.S. corporations, it has come under fire for relying on low-cost Asian labor and contributing to the decline of the U.S. manufacturing sector.

Cook did not say which Macintosh products will be produced in the United States. But the effort is expected to go well beyond simple final assembly of devices, with Apple and unnamed partners building most or all of the components in the United States as well.

The company will spend more than $100 million on the U.S. manufacturing initiative, Cook said in an interview with Bloomberg Businessweek, published on Thursday.”

via Apple to return some Mac production to U.S. in 2013 | Reuters.

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07/12/2012

* PLA signs preliminary deal for 24 Russian Su-35 jet fighters

Rare admission that China’s technology may not be up to it.

South China Morning Post: “A preliminary deal for the sale of 24 advanced Russian Su-35 jet fighters to the People’s Liberation Army indicates the technological hurdles China faces in developing its own J-20, especially in terms of engine technology, military analysts say.

scmp_01dec10_fr_plane3_13_11_08_66_sm_19070747.jpg

Mainland and Russian media reported last month that Beijing might purchase 24 Su-35s, an updated version of the fourth generation Su-27, for US$1.5 billion. The deal was first proposed by Moscow two years ago.

Beijing expressed interest in purchasing only four Su-35s last year, but that was rejected by Moscow, which had originally expected China to buy 48 planes, Moscow’s Vedomosti business daily quoted an official from Russia’s Federal Service for Military and Technical Co-operation as saying.

It also quoted Igor Korotchenko, head of the Russian Defence Ministry’s public council, as saying Moscow also asked Beijing to sign an agreement not to make copies of the Su-35.

A Beijing-based PLA senior colonel, who requested anonymity, said: “We decided to buy the Su-35 because it’s a fact that our home-made engines have failed to measure up to the Russian products.”

He said China was still playing catch-up, despite recent headlines hailing its progress on military modernisation.

“Engines have been the biggest headache and we are still trying to cope with it,” he said. “The purchase of the Su-35s might help our J-20 project, but there are too many deeper problems hiding in our military industrial system that are hindering our research and development.””

via PLA signs preliminary deal for 24 Russian Su-35 jet fighters | South China Morning Post.

07/12/2012

* India Dips a Toe into the South China Sea Dispute

Thoughtful commentary about why India, who has no territorial claims in he area, is getting involved with the South China Sea disputes.

Geopolitical Monitor: “Although the Xi Jinping administration is now secure enough in its transition to power to put nationalist jingoism back in the box from whence it came, recent events suggest that China will continue to tow a hard line in regards to its military and economic rights in the South China Sea.Joint exercises between the Indian Navy and the US Navy

Earlier this week, Chinese media sources reported that police authorities in Hainan province will be authorized to search and seize foreign vessels operating in Chinese waters starting next year. The announcement prompted an immediate response from the Philippine government, which condemned the move and requested a clarification as to what exactly can be considered ‘Chinese territorial waters.’ ASEAN also chimed in over the announcement, with Secretary General Surin Pitsuwan calling it a move that “raises the level of concern and great anxiety [in the dispute].”

Judging by Chinese official statements on the subject, it seems likely that this expansion of search and seizure powers applies to China’s entire territorial claim, which is essentially most of the South China Sea, extending as far south as Brunei. It can be seen as an initial attempt to leverage China’s growing naval power to buttress an ambitious territorial claim that has, up until now, remained largely rhetorical.

If Beijing goes through with the plan, it will ramp up the volatility in an already precarious region. Whenever hard military assets are being deployed and coming into close contact with one another, the risk of a crisis breaking out is substantially heightened. It wouldn’t take much for a relatively small and seemingly insignificant event, much like the standoff between China and the Philippines earlier this year, to spin out of control and set off a regional conflict.

And make no mistake: there will be no shortage of military ships operating in the South China Sea. On the very same day that China announced its intention for expanded search and seizures, the government of Vietnam announced that it was going to begin military patrols of its own territorial claim. This announcement comes on the heels of an incident earlier this week in which a group of Chinese boats cut the cables of a PetroVietnam survey vessel operating off the Gulf of Tonkin.

But by far one of the most interesting recent developments in the South China Sea dispute is the entrance of India into the fray. Earlier this week, Indian Admiral D.K Joshi publically asserted that India will not back off from protecting its maritime and economic interests in the South China Sea.

Although India doesn’t have any direct territorial claim in the area, the waters are strategically important to New Delhi for three reasons. First, like for any trade-dependent country, the South China Sea represents an important global shipping route and freedom of navigation must be maintained. Second, India’s state-run Oil and Natural Gas Corporation (ONGC) owns a stake in waters claimed by Vietnam. And third, and perhaps most importantly, the South China Sea represents an opportunity for an Indian riposte against China’s ‘string of pearls’ naval encirclement of the Indian subcontinent.”

via India Dips a Toe into the South China Sea Dispute – Geopolitical Monitor.

06/12/2012

* Xi unveils foreign policy direction

China Daily: “For German chemist Katharina Kohse-Hoinghaus, it was a huge surprise to get an invitation to a key meeting from newly-elected leader Xi Jinping just 20 days after he assumed his new role.

Xi unveils foreign policy direction

She was even more surprised on Wednesday to find that she was among the first group of foreigners Xi met as leader of the Party.

She was one of 20 foreigners from 16 countries invited to a face-to-face discussion with Xi on China’s development. Kohse-Hoinghaus, a world-renowned specialist in industrial combustion who has worked for about 10 years in China, said the meeting “demonstrates how serious you take the process of transformation and innovation in cooperation with other countries”.

It was the first time that Xi, the newly elected head of the Communist Party of China, met foreigners in this capacity.

Analysts said the meeting conveyed the new leadership’s foreign policy blueprint, and sent a strong signal that China cherishes its ties with foreign countries and people, and will continue on its road of opening up and cooperation with the outside world.

“We are open to the world and we want to learn from the world … We have learned from the past and realize we cannot succeed in our development behind closed doors,” Xi said at the meeting.

Foreigners with expertise in their fields have contributed immensely to national development and are called foreign experts in China. They also bridge China and the outside world.

The number of foreign experts has risen from less than 10,000 at the end of the 1980s to around 530,000 by the end of 2011.”

via Xi unveils foreign policy direction[1]|chinadaily.com.cn.

06/12/2012

* Senior provincial official under investigation

Will this be the first of many such investigations?

Senior provincial official under investigation

China Daily: “Li Chuncheng, deputy secretary of the Sichuan Provincial Committee of the Communist Party of China (CPC) is under investigation for alleged discipline violation, according to the CPC Central Commission for Discipline Inspection.

via Senior provincial official under investigation |Politics |chinadaily.com.cn

06/12/2012

* China pledges $56 billion to cut air pollution

Reuters: “China will spend 350 billion yuan ($56 billion) by 2015 to curb air pollution in major cities, the environmental watchdog said on Wednesday.

Visitors to Tiananmen Square shield themselves from the sun with umbrellas on a hot and hazy day in Beijing July 28, 2010. REUTERS/David Gray

Local governments will fund most of the programs aimed at cutting the level of harmful particles in the air in 117 cities by at least 5 percent between 2011 and 2015, the Ministry of Environmental Protection said in a statement on its website.

Doctors warn that the tiny floating PM 2.5 particles, named for their less than 2.5 micrometer diameter, can settle in the lungs and cause respiratory problems and other illnesses.

China began publishing data on the amount of such pollution earlier this year in an effort to address concerns from residents that pollution readings were grossly understated.

Chinese officials have acknowledged that the thick cocktail of smokestack emissions, vehicle exhaust, dust and aerosols that often fills the air in many cities is a growing concern to increasingly prosperous urban residents.

Many Chinese in Beijing refer to an air pollution index published by the U.S. embassy, a move that has drawn the ire of Chinese officials who have called it unscientific.

Those measurements, based on U.S. standards, appear much grimmer than those of the city government’s and often list pollution levels as hazardous at prolonged exposure.

China has cited its ongoing reliance on heavy industry as the reason it failed to meet some of its 2011 air and water pollution reduction targets.”

via China pledges $56 billion to cut air pollution | Reuters.

See also: https://chindia-alert.org/economic-factors/greening-of-china/

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