Archive for ‘GeoPolitics’

30/11/2012

* China-backed payment processor to accelerate global expansion

Visa and Mastercard beware!

Reuters: “China’s state-backed electronic payment services giant, China UnionPay, launched an international arm tasked with speeding its expansion overseas, heating up competition with rivals such as Visa Inc (V.N) and Mastercard Inc (MA.N).

The logo of the China UnionPay is seen at a bank in Taiyuan, Shanxi province July 20, 2012. REUTERS/Stringer (CHINA - Tags: BUSINESS)

The move underscores UnionPay’s growing global ambitions, and follows a World Trade Organisation (WTO) ruling that China discriminates against foreign card companies by favoring UnionPay in the home market.

UnionPay, China’s dominant payment card supplier, is looking to expand the number of shops and outlets overseas that will accept its cards and also grow the number of partner banks issuing UnionPay-branded cards. The move would increase its business, assist inbound and outbound travelers and is also aimed at promoting the use of the yuan as a global currency.

“UnionPay’s internationalism provides convenience to Chinese residents and companies going overseas. Also it provides a new payment option for overseas residents and companies,” Liu Shiyu, deputy governor of the People’s Bank of China, said at the opening ceremony of UnionPay’s unit.”

via China-backed payment processor to accelerate global expansion | Reuters.

28/11/2012

* China Looks to Increase India Investments

If India allows China to invest in its under-developed infrastructure, then it will be a truly win-win situation.

WSJ: “China, already India’s largest trading partner, is looking to increase its Indian direct investment, taking a page from the playbook of other East Asian nations such as Japan and South Korea.

Zhang Ping, chairman of China’s National Development Reforms Commission, a key policymaking body, was in the Indian capital this week to hold a China-India strategic economic dialog, focused on increasing investments in each other’s countries. He was accompanied by around 200 representatives from government and corporations.

China’s official news agency Xinhua quoted Mr. Ping as saying China would “push forward cooperation in infrastructure including railway, power, telecommunications” with India.

“Economic co-operation between India and China is of relatively recent vintage and still has great potential to develop further,” said Montek Singh Ahluwalia, deputy chairman of India’s Planning Commission. He said China’s co-operation could be valuable in bridging India’s “enormous infrastructure deficit.”

Infrastructure is a particularly attractive sector for many foreign direct investors: India expects to spend $1 trillion on infrastructure over the next five years.”

via China Looks to Increase India Investments – China Real Time Report – WSJ.

24/11/2012

* The end of the “ASEAN way”

Extracted from Al Jazeera Blogs: “The long-time journalists in this region have joked that it didn’t really matter if they missed out on covering ASEAN summits as nothing ever really happened at them anyway.: ”

The ten-member regional organisation composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Thailand, Singapore, and Vietnam was seen as a bit of a toothless mouse … ineffective, irrelevant, and a trifle useless.

All pomp and ceremony at the best of times – with very little substance. It’s been termed a “loose grouping” with nothing legally binding it together.

The one pronouncement from ASEAN with any kind of general recall was its members’ agreement of “non-interference” in each other’s affairs – which meant that for the most part, there were no condemnations of, or sanctions against, or even reactions to alleged human rights violations amongst them from anyone in the group.

It was the “ASEAN way” to be non-confrontational, put on a united front… and pretty much sweep things under the carpet. Which is likely why most thought the group a “lame” body.

Everything hinged on members’ consensus… and for many years, the only underlying consensus appeared to be making sure everyone played nice, and kept the house clean and presentable at all times. There was to be no “rocking the boat”, as it were.

But if one thing is clear after this series of recently concluded summits in Phnom Penh (ASEAN + Australia, China, India, Japan, New Zealand, Russia, South Korea, and the US) it’s that ASEAN is changing.

But it’s precisely because Cambodia, a nation with deep ties to China, tried to “stifle” that issue that things didn’t quite go as it had planned.

The Philippines, one of the countries embroiled in an increasingly tense dispute with China over overlapping maritime claims, spoke out in public contradiction of Cambodia’s statement that ASEAN members had “agreed” to not “internationalise” the territorial disputes.

“There was no consensus,” Philippine President Benigno Aquino said after the Cambodian leader finished his declaration. And that was only the beginning.

Possibly emboldened by the presence of Obama, (and the seven other non-ASEAN leaders), Aquino took the opportunity to basically “internationalise” the matter by speaking about the need for a “multi-lateral” resolution.

One that involves all those with a stake in the disputed areas’ maintaining its freedom of navigation and over-flight, including the US. A position several other countries agreed with.

And just like that, the subject that wasn’t supposed to be discussed hijacked the discussions. Much of this happened behind closed doors, but there was no way it was going to remain there… whether ASEAN liked it or not.

Cambodian Prime Minister Hun Sen delivered his usual stage-managed, loquacious statement in an attempt to conclude the summits on a “positive” and “graceful” note… but he refused to answer questions (of which there were many!) ostensibly because he was tired and feeling “emotional” about the passing of Cambodia’s former king last month.

But never mind Hun Sen’s neat summary. The media rush, (referred to by one journalist as similar to a dangerous bar-room brawl), to get to the Chinese and Philippine delegates as they exited and looked to make side-line statements taking pot-shots at each other (without directly pointing fingers of course), said more about the region’s state of affairs than can be tidied up and swept under the carpet.

This time around, ASEAN may have found itself with little other choice than to do something more substantial.

via The end of the “ASEAN way” – Al Jazeera Blogs.

24/11/2012

* Palestine envoy says Beijing backs U.N. entry

China backs Palestine. It usually refrains from taking sides in territorial and sovereignty disputes and prefers to be neutral. Is this a policy change? Or another sign of a proactive Foreign Ministry?

Reuters: “Palestinian President Mahmoud Abbas‘ envoy to China said on Friday that Beijing backs their United Nations membership bid, a day after France indicated it would support a diplomatic upgrade for Palestine.

Chinese Foreign Minister Yang Jiechi (R) shakes hands with Bassam Al-Salhi, envoy of Palestinian President Mahmoud Abbas, at China's foreign ministry in Beijing November 23, 2012. REUTERS/China Daily

Bassam al-Salhi, in China on a three-day trip to discuss tensions in Gaza, echoed earlier calls from China’s Foreign Ministry that Beijing would support Palestinian statehood and its entry into the United Nations.

“They (China) support the Palestinian right for ending occupation and building a Palestinian state ..and support the bid of the Palestinian membership in the United Nations,” Salhi told Reuters in an interview after meeting Chinese Foreign Minister Yang Jiechi.

China’s official Xinhua new agency quoted Yang as saying China “supports Palestine’s entry into the United Nations and other international organizations and understands, respects and backs Palestine’s bid for the U.N. observer status”.”

via Palestine envoy says Beijing backs U.N. entry | Reuters.

24/11/2012

* India and China row over new map in passport

This provocative action is most curious as China seemed to have moderated its attitude to territorial disputes at the recent ASEAN summit. Wonder if it is national policy or the over-enthusiastic actions of a newly-appointed Foreign Ministry after the 10-year leadership change?

BBC: “A fresh row has broken out between India and China over territorial claims in the north-eastern Indian state of Arunachal Pradesh and the Aksai Chin area in eastern Kashmir.

A woman holds the new Chinese passport on 23 November 2012

In new passports, China’s maps show the two areas as Chinese territory.

The Indian embassy in Beijing is said to have retaliated by stamping Chinese visas with a map of their own which shows the territories in India.

Several of China’s neighbours have also protested against the new map.

Vietnam, the Philippines, and Taiwan have all objected because it shows disputed islands in the South China Sea and Taiwan to be a part of China.

They have described the new design as a violation of their sovereignty.

Chinese official maps have long shown Taiwan and the South China Sea to be part of its own territory, but the inclusion of such claims on the passport has caused considerable anger.

The potentially oil-rich Paracel Islands, claimed by Vietnam since their troops were forced to leave by China in the 1970s and also claimed by Taiwan, make an appearance on the map, as do the Spratly Islands, part of which are claimed by the Philippines.

The disputed Senkaku or Diaoyu islands, at the centre of recent tension between China and Japan are not included in the new document.

Relations between India and China have been uneasy – the two countries dispute several Himalayan border areas and fought a brief war in 1962.

Delhi is yet to officially take up the row over the map with Beijing.”

via BBC News – India and China row over new map in passport.

See also: https://chindia-alert.org/2012/11/22/5365/

23/11/2012

* Southeast Asian Nations Announce Trade Bloc to Rival U.S. Effort

It is not clear to me what motivates ASEAN nations to try and forma trading bloc that includes China, while Obama had initiated a similar pact to exclude China.  If may be a way of mollifying the strong stance ASEAN had taken regarding the South China Sea disputes. A ‘quid pro quo’ as it were.

NY Times: “Ten Southeast Asian nations said Tuesday that they would begin negotiating a sweeping trade pact that would include China and five of the region’s other major trading partners, but not the United States.

The proposal for the new trade bloc, to be known as the Regional Comprehensive Economic Partnership, is enthusiastically embraced by China. The founding members, who belong to the Association of Southeast Asian Nations, said at the close of the association’s summit meeting here that the bloc would cover nearly half of the world’s population, starting in 2015.

The new grouping is seen as a rival to a trade initiative of the Obama administration, the 11-nation Trans-Pacific Partnership, which includes many of the same countries but excludes China.”

via Southeast Asian Nations Announce Trade Bloc to Rival U.S. Effort – NYTimes.com.

22/11/2012

* China might be moving to ASEAN agreement on S China Seas= dispute

If China does agree to ASEAN multi-lateral agreement on South China Sea dispute, it will probably be the first time. It much prefers to do bilateral deals; conforming tot the old principle of ‘divide and conquer’.

See also:

20/11/2012

* China, India to hold strategic economic dialogue this month

Xinhua: “China and India will hold the second round of strategic economic talks in New Delhi on Nov. 26, a Chinese Foreign Ministry spokesperson confirmed Tuesday.

Zhang Ping, head of China’s National Development and Reform Commission, and Indian Planning Commission Deputy Chairman Montek Singh Ahluwalia will co-chair the dialogue.

At a daily press briefing, Chinese Foreign Ministry spokesperson Hua Chunying briefed reporters on the talks.

Hua said the dialogue constituted an important part of the “Year of China-India Friendship and Cooperation” activities.

The two sides will exchange views to seek broader economic cooperation and promote coordination on macroeconomic policy. They will also strenghten cooperation in areas such as investment, infrastructure, high-technology, energy-saving and energy resources.

China and India held the first round of the strategic economic dialogue in Sept. 2011.

When responding to a question on border issues, Hua said specific information of the new round of meetings between special representatives on China-India border issues will be released at an appropriate time.

China and India experienced a border conflict in 1962.

The two countries launched the mechanism of meetings between special representatives on border issues in 2003. The previous round of meetings on border issues was held in India in January.”

via China, India to hold strategic economic dialogue this month – Xinhua | English.news.cn.

18/11/2012

* Southeast Asia calls for talks with China on sea dispute

S E Asia may be joining hands to call China to the discussion table; but China really dislikes being pressured and much prefers one-to-one dialogue and bi-lateral agreements.

Reuters: “Southeast Asian nations displayed a rare show of unity on Sunday against China’s sweeping maritime claims, calling for the first formal talks with Beijing over a sea dispute that has raised tensions and exposed deep divisions in the region.

(L - R)Singapore Prime Minister Lee Hsien Loong, Thailand Prime Minister Yingluck Shinawatra, Vietnam Prime Minister Nguyen Tan Dung, Cambodia Prime Minister Hun Sen and the Sultan of Brunei Hassanal Bolkiah hold hands during the opening ceremony of the 21st ASEAN (Association of Southeast Asian Nations) and East Asia summits in Phnom Penh November 18, 2012. REUTERS-Samrang Pring

As Chinese Premier Wen Jiabao arrived in Cambodia for meetings with Southeast Asian leaders, the 10-member Association of Southeast Asian Nations (ASEAN) appeared determined to avoid a repeat of an embarrassing breakdown of talks in July over competing claims in the mineral-rich South China Sea, its biggest security challenge.

Cambodia’s Prime Minister Hun Sen will tell Wen that ASEAN wants to begin talks on a binding Code of Conduct, aimed at reducing the chance of naval flashpoints, as soon as possible, ASEAN Secretary General Surin Pitsuwan told reporters.

“Prime Minister Hun Sen himself will be discussing with the PM of China tonight and delivering this consensus on the ASEAN side,” Surin said.

“They would like to see the commencement of the discussion as soon as possible because this is an issue of interest, concern and worry of the international community.”

China’s assertive claims in the South China Sea have sown deep divisions within the bloc at a time when military spending in the region is surging and the United States refocuses attention on Asia – a “pivot” that President Barack Obama will reinforce on his visit to the summit on Monday in Cambodia’s capital, Phnom Penh.

Chinese ally Cambodia has used its powers as ASEAN chair this year to restrict discussion of the issue, in line with Beijing’s view that the disputes should be discussed on a bilateral basis. China has said it is willing to discuss the Code of Conduct when the “time is right.”

Diplomats said the Philippines, a close U.S. ally, had invited fellow Southeast Asian claimant states Vietnam, Brunei, and Malaysia to separate talks in Manila to be held later this year or early next year.

“We are trying to make that happen, hopefully in Manila,” Philippine Foreign Secretary Albert del Rosario told reporters.

The other members of ASEAN include Cambodia, Laos, Myanmar, Thailand, Singapore and Indonesia, none of which have claims on the South China Sea.

One Philippine diplomat said the meeting was aimed at resolving issues among the claimant states, such as overlapping economic zones. He voiced frustration with China for delaying the start of talks with ASEAN over the Code of Conduct.

“ASEAN has done its part,” the diplomat said. “Now it is up to China to also come up with its own because when we formally sit down we will present our position to them. In fact we have already written it.””

via Southeast Asia calls for talks with China on sea dispute | Reuters.

See also: 

 

13/11/2012

* Yuan to surpass Dollar

Inevitably the US dollar will gradually be on a par with the Chinese yuan. And then several decades down the line, it will be relegated to second place.

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