Posts tagged ‘Asia-Pacific’

07/11/2014

Foreign policy: Showing off to the world | The Economist

THE factories have closed down for a few days, and millions of cars have been ordered off the roads. Clear blue skies appearing over a usually smog-choked Beijing always mean one thing: a big event is about to get under way.

From November 10th President Xi Jinping will welcome world leaders to this year’s Asia-Pacific Economic Co-operation (APEC) summit. Not since the Olympics in 2008 have so many leaders gathered in the capital, and they will include the heads of the United States, Russia and Japan. It is a defining moment for Mr Xi’s foreign policy. Having established himself at home as China’s most powerful leader since Deng Xiaoping, he now seems to want to demand a bigger, more dominant and more respected role for China than his predecessors, Deng included, ever dared ask for.

Respect begins by putting on a good face to guests. Chinese bullying over disputed maritime claims has done much to raise tensions in the region. But now Mr Xi appears to be lowering them. In particular, China’s relations with Japan have been abysmal. The government has treated Japan’s prime minister, Shinzo Abe, with both venom and pettiness, implying he is a closet militarist. The relationship had sunk to such a low that it will count as notable progress if Mr Xi shakes Mr Abe’s hand—even if he does little more—at the summit.

On November 11th and 12th, Mr Xi will host a state visit in Beijing for Barack Obama. It is the second summit with the American president, following one at Sunnylands in California in 2013. It will be a good show, with a scenic walk and all that. But the substance appears less clear. At the time of Sunnylands, there was much Chinese talk of a “new type of great-power relationship” with America. Yet since it implies a diminished role for America, at least in Asia, Mr Obama does not seem inclined to go along. The two men appear likely to co-operate in a few areas, including climate change, trade and investment. They will agree to a bit more communication over respective military movements in and over the seas near China. But hopes that cordiality at Sunnylands might lead the relationship to blossom may come to little.

In truth, Mr Xi does not have much respect left for Mr Obama; the Chinese dismiss him as weak-willed in foreign policy. And so much of Mr Xi’s ambition lies elsewhere. Above all, the dream is to return China to its rightful place in a world in which, according to Bonnie Glaser of the Centre for Strategic and International Studies, a Washington think-tank, “China will be at the centre, and every other nation will have to consider China’s interests.”

This attitude is most familiar to China’s neighbours in the South China Sea and East China Sea. China has upset the Philippines by grabbing a disputed reef; Vietnam, by moving an oil rig into contested waters; Japan, by challenging its control over uninhabited islets; and even South Korea which, though on good terms, was concerned along with others when China declared an “Air Defence Identification Zone” over the East China Sea, demanding that planes inform it when entering it.

Yet Mr Xi has also courted friends under the catchphrase of “peaceful development”. He has pushed multilateral initiatives, including a new Asian Infrastructure Investment Bank, which many of China’s neighbours, including India, have signed up to. A New Development Bank has also been set up with fellow “BRICs”—Brazil, Russia, India and South Africa.

One of Mr Xi’s playmates is President Vladimir Putin. China and Russia have a history of mutual distrust, but Mr Xi’s first trip abroad as president, in March 2013, was to Moscow. Since then the two countries have struck a long-stalled gas deal and, according to Kommersant, a Russian newspaper, a pact on cyber-security. China backs Russia’s pro-Syrian stand in the UN Security Council and has refused to condemn Russia’s territorial incursions in Crimea and eastern Ukraine—though it loves to preach non-interference.

A strong thread that binds the two countries is American dominance in international affairs. “No country”, said Mr Xi at a security summit earlier this year to which Mr Putin was invited, “should attempt to dominate regional security affairs or infringe upon the legitimate rights…of other countries.” Mr Xi did not name America, but a month earlier Mr Obama had in Tokyo emphasised that America’s security pact with Japan extended to the Japan-controlled Senkaku islands, which China claims and calls the Diaoyu.

Is Mr Xi’s foreign policy succeeding? Only in parts. China’s maritime assertiveness has pushed some neighbours closer to Japan and America. But for long China will remain Asian nations’ biggest trading partner. It is busy pursuing regional and bilateral trade agreements while an American-led trade initiative, the Trans-Pacific Partnership, is bogged down. At APEC Mr Xi will seek to build on those economic relationships. And, given China’s heft, by and large he will succeed.

via Foreign policy: Showing off to the world | The Economist.

07/11/2014

China, Japan set aside isle row, paving way for leaders to meet | Reuters

China and Japan agreed on Friday to work on improving ties and signaled willingness to put a bitter row over disputed islands on the back burner, paving the way for their leaders to meet at an Asian-Pacific summit next week.

The agreement, ahead of an expected ice-breaking chat between Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping at the gathering in Beijing, signals a thaw in ties between the world’s second- and third-biggest economies.

Relations have been soured over the past two years by the territorial row, regional rivalry and the bitter legacy of Japan’s wartime occupation of China.

Abe said the two sides were making final arrangements for one-on-one talks, although neither he nor China’s foreign ministry confirmed that the talks were set.

“Both Japan and China are coming to the view that it would benefit not just the two countries but regional stability if a summit is held,” he told a TV program.

via China, Japan set aside isle row, paving way for leaders to meet | Reuters.

03/10/2014

China Focus: Nation rises after 65 years of development – Xinhua | English.news.cn

One need look no further than China’s railways to see the enormous development of the country since its foundation on Oct. 1, 1949.

At the 65th anniversary of that formative moment, every Chinese citizen has access to a modern train service. In 1949, the nation’s railways extended only 22,000 km, with half the track in poor condition.

In comparison, the mileage had expanded to 100,000 km by 2013. More than 10,000 km was high-speed infrastructure, and another 12,000 km was under construction at that time.

This modernization is transforming the lives of Chinese people. For Tsering Dekyi, for example, his wish to send his children from their remote home to far-off schools for a better education is no longer a wild dream.

“I heard that the trains are very fast and safe. It takes only two hours from here to Lhasa. I really hope that my three kids will be able to attend schools in Lhasa or inland cities by train in the future,” Tsering Dekyi said from Xigaze City, some 200 km west of Lhasa in southwest China’s Tibet.

This is possible after an extension of the Qinghai-Tibet Railway was put into operation in August, linking Xigaze and Lhasa like never before.

Via the Qinghai-Tibet Railway, launched in 2006 as the world’s highest plateau rail track, Xigaze locals can even travel further off to major cities like Beijing and Shanghai.

Train track mileage is not the only data that makes clear the positive changes in China since 1949. In 2010, China overtook Japan to become the world’s second-largest economy. China is the world’s top goods trader. The nation also ranks third in global investment…

Meanwhile, the 2014 APEC Economic Leaders’ Meeting will come to Beijing in November, with leaders gathering in the Chinese capital to discuss important economic issues for the Asia-Pacific region. China will take center stage once more.

Behind the huge economic achievements made especially since the reform and opening-up policy was introduced in 1978, the nation has made huge, unprecedented strides in providing basic education and welfare for its population of 1.3 billion, the world’s largest.

Sixty-five years ago, a shocking 80 percent of the population were illiterate, but by 2008, free nine-year compulsory education programs were fully implemented across the country. This year, 7.27 million university students will graduate, marking a historical high.

Nutritious meals are being provided to students from poor families with billions of yuan budgeted each year by the government.

About 32.29 million rural students have benefited from the 46.23 billion yuan (7.52 billion U.S. dollars) in subsidies the central government has allocated since 2011, when it launched the nutrition improvement program. Also, more than 10 million university students have completed their studies after being granted student loans under programs adopted since 1999.

The 660 million people that China has lifted out of poverty since 1981account for more than 70 percent of the world’s total.

Meanwhile, the Chinese government has worked hard to provide basic healthcare for its people, with over 95 percent of the population covered by different sorts of healthcare programs by 2011.

However, there remain problems among the achievements, and they must be dealt with increasingly urgently. The issues include restraints on future development from the environment and resources, wide gaps between the wealthy and the poor, industrial overcapacity and imbalanced regional development.

Meanwhile, the Chinese economy must also brave challenges imposed from an economic slowdown after a boom over the past decade, as employment and structural control are key agendas for the government.

In order to cope, the Chinese leadership has showed political courage in pushing comprehensive reforms, including fighting corruption. Overhauls of administrative management, fiscal and financial systems are steadily being carried out as well.

There is no doubting the truth of Chinese President Xi Jinping‘s assertion that today’s China is nearer to its great goal of rejuvenation than at any period in history.

via China Focus: Nation rises after 65 years of development – Xinhua | English.news.cn.

12/06/2014

China Minting Millionaires in Global Wealth Surge – Businessweek

Where do the world’s rich live? As has long been true, the U.S. has more millionaires (in U.S. dollars) than any other country, with 7.1 million. But China last year came in second with 2.4 million millionaire households, beating Japan with half as many. The number of millionaire families around the world reached 16.3 million last year, up from 13.7 million the year before.

Visitors crowd around a luxury yacht on display during the 19th China International Boat Show in Shanghai on April 10

All told, the total value of global private wealth grew far faster than global economic output, up 14.6 percent, to $152 trillion, compared with an 8.6 percent increase in 2012. Much of the new money originated in the Asia-Pacific region (excluding Japan), up by 30.5 percent, to $37 trillion. That put Asia in the No. 3 spot for riches, behind North America and Europe, according to the 14th annual survey on private wealth by Boston Consulting Group.

Driven by rapid GDP growth in China and India, Asia is expected to surpass North America and Europe as the leading source of global wealth in 2018. That year, the global pot of gold will total a bit less than $200 trillion, with the proportion from Asia projected to reach $61 trillion, slightly more than North America, with $59.1 trillion. “The Asia-Pacific region and its new wealth will account for about half of the total growth,” the report predicts.

via China Minting Millionaires in Global Wealth Surge – Businessweek.

22/01/2014

China’s Real-Estate Investment Boom Set to Continue in 2014 – China Real Time Report – WSJ

Chinese real-estate investors made a name for themselves abroad in 2013, picking up big-ticket projects from New York to London, and that momentum is poised to pick up this year.

“In the late 1980s, we noticed every second deal was done by the Japanese, and in the 1990s, it was investors from the Middle East,” said Alastair Hughes, chief executive officer of Asia Pacific at property consultancy Jones Lang LaSalleJLL +1.99%. “We’re seeing the beginning of such a wave in China.”

Chinese outbound commercial real-estate investment is estimated to exceed $10 billion this year, after it doubled to $7.6 billion last year from 2012’s $3.3 billion, according to data from Jones Lang LaSalle. Rival brokerage Colliers International is more bullish, saying it expects Chinese investors to spend at least twice as much on overseas property assets this year as last year.

“Chinese investors are very active in every major market in the world, and part of that has to do with government policy on overseas investment becoming less restrictive,” Mr. Hughes said.

Aside from the stronger yuan, which makes purchases abroad cheaper, Chinese investors also are heeding the old adage don’t put all your eggs in one basket.

via China’s Real-Estate Investment Boom Set to Continue in 2014 – China Real Time Report – WSJ.

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03/12/2013

China’s yuan surpasses euro as 2nd most-used currency in trade finance: SWIFT | Reuters

China\’s yuan currency overtook the euro in October, becoming the second-most used currency in trade finance, global transaction services organization SWIFT said on Tuesday.

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee

The market share of yuan usage in trade finance, or Letters of Credit and Collection, grew to 8.66 percent in October 2013. That improved from 1.89 percent in January 2012.

The yuan, also known as the renminbi, now ranks behind the U.S. dollar, which remains the leading currency with a share of 81.08 percent.

The top five countries using the yuan for trade finance in October were China, Hong Kong, Singapore, Germany and Australia, SWIFT said in a statement.

\”The RMB is clearly a top currency for trade finance globally and even more so in Asia,\” Franck de Praetere, SWIFT\’s Asia Pacific head of payments and trade markets said.

The RMB remained the 12th payments currency of the world, with a slightly decreased share of 0.84 percent compared with 0.86 percent in September.

RMB payments increased in value by 1.5 percent in October, while growth for all payments currencies was at 4.6 percent.

The world\’s second-largest economy is accelerating the pace of financial reform to promote its currency to international players beyond Hong Kong. China aims to lift the yuan\’s global clout and reduce its reliance on the U.S. dollar.

via China’s yuan surpasses euro as 2nd most-used currency in trade finance: SWIFT | Reuters.

26/10/2013

Japan Prime Minister Abe Says Japan Ready to Counter China’s Power – WSJ.com

Japanese Prime Minister Shinzo Abe said he envisions a resurgent Japan taking a more assertive leadership role in Asia to counter China\’s power, seeking to place Tokyo at the helm of countries in the region nervous about Beijing\’s military buildup amid fears of an American pullback.

In an exclusive, wide-ranging interview with The Wall Street Journal, Mr. Abe also defended his program of economic reforms against growing criticism that the package lacks substance—though he offered few details of new programs, or a timetable, that anxious foreign investors have been seeking.

\”I\’ve realized that Japan is expected to exert leadership not just on the economic front, but also in the field of security in the Asia-Pacific,\” Mr. Abe said, referring to his meetings with the region\’s leaders at a series of summits this month.

In his continuing attempt to juggle his desire to enact economic-stimulus policies with the need to pay down Japan\’s massive debt, the prime minister said he was open to reviewing the second stage of a planned increase in the sales tax in 2015 if the economy weakens after the first increase is implemented in the spring.

Less than a year after taking office, Mr. Abe has already emerged as one of Japan\’s most influential prime ministers in decades. He has shaken up the country\’s economic policy in an attempt to pull Japan out of a two-decade-long slump, and plotted a more active diplomacy for a country whose global leadership has been crimped by a rapid turnover of weak prime ministers.

In the interview, Mr. Abe made a direct link between his quest for a prosperous Japan, and a country wielding greater influence in the region and the world.

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\”Japan shrank too much in the last 15 years,\” the leader said, explaining how people have become \”inward-looking\” with students shunning opportunities to study abroad and the public increasingly becoming critical of Tokyo providing aid to other countries.

\”By regaining a strong economy, Japan will regain confidence as well, and we\’d like to contribute more to making the world a better place.\”

Mr. Abe\’s views expressed in the interview reflect his broader, long-standing nationalistic vision of a more assertive Japan, one he has argued should break free of constraints imposed on Japan\’s military by a postwar pacifist constitution written by the U.S.—and that has also been hampered by economic decline.

Mr. Abe made clear that one important way that Japan would \”contribute\” would be countering China in Asia. \”There are concerns that China is attempting to change the status quo by force, rather than by rule of law. But if China opts to take that path, then it won\’t be able to emerge peacefully,\” Mr. Abe said. \”So it shouldn\’t take that path, and many nations expect Japan to strongly express that view. And they hope that as a result, China will take responsible action in the international community.\”

via Japan Prime Minister Abe Says Japan Ready to Counter China’s Power – WSJ.com.

See also: https://chindia-alert.org/2013/04/03/china-asean-agree-to-develop-code-of-conduct-in-south-china-sea/

02/10/2013

Banyan: One model, two interpretations | The Economist

CHINA has long stressed that its rise as one of the world’s great powers will be “peaceful”. But it is also aware that, historically, peaceful rises are the exception. Speaking on a visit to Washington on September 20th, Wang Yi, China’s foreign minister, referred to a study of 15 different countries. In 11 cases “confrontation and war have broken out between the emerging and established powers.” So the stakes are high when Chinese leaders speak of their hopes for a “new type of great-power relations”, or, in the humbler phrase they now prefer as a translation for the Chinese formulation, “a new model of major-country relations”. American officials echo the “new model” talk. Since neither side wants confrontation and war, they can be assumed to be sincere. Less certain is whether they mean the same thing.

Xi Jinping unveiled the concept on a visit to the American capital last year, before he took over the leadership of the Chinese Communist Party. His informal “Sunnylands” summit with Barack Obama in June was portrayed as the “model” in action. As elaborated by the smooth Mr Wang in Washington, it is an admirable idea, based on Mr Xi’s formula of “no conflict or confrontation”, “mutual respect” and “win-win co-operation”. Nor is there much disagreement about how to achieve this: by reducing strategic mistrust through building habits of co-operation.

Although America and China seem to line up on the opposite sides of so many international issues, optimists can point to progress in some areas of co-operation. The two countries have in recent months avoided the periodic crises that used to test their ties. China has reacted calmly to allegations of American cyber-espionage against it, for example, enjoying the chance to turn the tables thanks to the revelations of Edward Snowden, a disaffected American former security-services contractor.

Military co-operation is also being stepped up. Next year China’s navy is to join those of America and a score of other countries in a big maritime exercise. China is negotiating an investment treaty with America. It also wants to join one American-led free-trade negotiation, the Trade in Services Agreement (TiSA), and has said it is studying another, the Trans-Pacific Partnership, once seen as part of an American effort to contain China.

On some international hotspots, too, China and America find themselves closer than for some time. America will have been pleased that China this week showed its anger with North Korea, banning a long list of items for export there. China has welcomed the agreement between America and Russia on destroying Syria’s weapons. Mr Wang raised Afghanistan, which he predicted might next year overtake Syria as a global concern, as another area with “great potential” for enhanced co-operation. This is true both because co-operation has so far been minimal, but also because, as Mr Wang pointed out, both have an interest in the country’s stability after most foreign troops leave in 2014. China worries about Islamic extremism seeping across the border to infect its own Muslim minorities, and about the security of its massive proposed investment in the Aynak copper mine.

In all these areas, however, co-operation is hampered by strategic distrust and profound differences. Cynics think that China’s interest in the TiSA, for example, is that of a spoiler. The Chinese want the Americans to go back to long-stalled talks with North Korea and regional powers; the Americans want the North first to promise to get rid of its nuclear arsenal. In Syria, China opposes any threat of military action against the Assad regime. And it is unclear just how it hopes to help stabilise Afghanistan. It remains officially wedded to a policy of non-interference, even as its new global weight makes that policy increasingly obsolete.

For all America’s constant refrain that it welcomes China’s rise, and has a vested interest in its prosperity, China’s leaders often seem unconvinced. The perpetual bugbear of America’s friendship with Taiwan is seen as an obstacle to “reunification” with the island. Nor do Americans necessarily believe Mr Wang when he says that China respects America’s “traditional influence and immediate interests” in the Asia-Pacific. The new sort of relationship is supposed to ease such suspicions. As John Kerry, the secretary of state, said before meeting Mr Wang, an important part of it is “a commitment to engage in frank discussions on sensitive issues, particularly where we disagree, where misunderstanding could lead to a miscalculation”. That is all to the good.

On the new model itself, however, the two sides often give the impression of talking past each other. Both agree that it is one where America has so far accommodated China’s rise. Where they may differ is over whether China agrees in return to continue to accept America’s role as the predominant military power, even in the Chinese backyard of the western Pacific. Americans find it hard to imagine why China, which has fared so well under the current arrangements, should want to challenge them.

via Banyan: One model, two interpretations | The Economist.

13/02/2013

* The Economic Impact of a War Between Japan & China

From: http://www.onlinemba.com/blog/economic-war-between-china-japan

“Global economists are keeping their eyes glued to the Asia-Pacific region, where a bitter feud is brewing between two of the world’s most powerful nations over a small collectivity of islands in the East China Sea. The Chinese government argues that a treaty signed during the first Sino-Japanese War (1894-95) conferred ownership of the islands to China. Japan has long disputed these claims, and today argues that the islands are integral to its national identity.

English: Japan_China_Peace_Treaty_17_April_1895.

English: Japan_China_Peace_Treaty_17_April_1895. (Photo credit: Wikipedia)

http://www.youtube.com/watch?v=V7SA3p8ys-s&feature=youtu.be 

The argument came to a head last September, when a boycott of Japanese products led Chinese demonstrators to target fellow citizens who owned Japanese cars. Three months later, the situation escalated when when Japanese jets confronted a Chinese plane flying over the islands; no shots were fired, but the act of antagonism has set a troubling precedent between the military forces of both nations.

The conflict between China and Japan has put the United States in a precarious position: if a full-scale war were to erupt, the U.S. would be forced to choose between a long-time ally (Japan) and its largest economic lender (China). Last year, China’s holdings in U.S. securities reached $1.73 trillion and goods exported from the U.S. to China exceeded $100 billion. The two countries also share strong economic ties due to the large number of American companies that outsource jobs to China.

However, the U.S. government may be legally obligated to defend Japan. In November, the U.S. Senate added an amendment to the National Defense Authorization Act that officially recognizes Japan’s claims to the disputed islands; the U.S. and Japan are also committed to a mutual defense treaty that requires either country to step in and defend the other when international disputes occur. Not honoring this treaty could very easily tarnish America’s diplomatic image.

The countries of the Asia-Pacific region are collectively responsible for 55 percent of the global GDP and 44 percent of the world’s trade. A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.”

See also: https://chindia-alert.org/2013/01/25/china-japan-move-to-cool-down-territorial-dispute/

16/01/2013

* Vietnam, US boost defence ties

US takes opportunity to counter-balance Chinese military power in SE Asia.

ANN: “The third Vietnam-US Defence Policy Dialogue at deputy ministerial level took place in Hanoi last week.

Vietnam’s Deputy Minister of Defence Lieutenant General Nguyen Chi Vinh

During the meeting, the two sides focused on ideas and information about issues related to defence cooperation and bilateral ties between Vietnam and the US and exchanged information about security matters in the Asia-Pacific region and the world.

The two sides reviewed their achievements in the five areas which were stated in the MoU on defence cooperation, signed by the two ministries in September 2011.

They agreed that new developments had been made in cooperation in several areas, including the missing-in-action mission; defusing bombs, mines and explosives left by the war; cleaning up dioxin pollution.

The two delegations also discussed cooperation in human resources training, UN peace-keeping missions, military medicine, natural disaster relief and search and rescue.

The delegates expressed their hope that defence cooperation between Vietnam and the US would contribute to enhancing bilateral ties between the two countries, aiming at peace and stability in the Asia-Pacific.

The Vietnamese delegation was led by Senior Lieutenant General Nguyen Chi Vinh, while Deputy Assistant Secretary of Defence for South and Southeast Asia Vikram J. Singh headed the US delegation.”

via Vietnam, US boost defence ties – ANN.

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