China is tired of US meddling in the west Pacific. This is one of the steps it is taking to rebalance the power-politics between it and the US. Worthy of Sun Tzu.
Tiny Malta Turns to China, Says Prime Minister – Businessweek
After becoming prime minister of the tiny but strategic Mediterranean island nation of Malta in March, 39-year-old Labor Party leader Joseph Muscat has put a new priority on strengthening relations with China. This marks a major shift for the Maltese government that rules over a population of 418,000. While maintaining good relations with Beijing during their almost 25-year-tenure (apart from a brief 18-month-period in the 1990s, Labor has been out of power since 1987) the conservative Nationalist Party had focused much more on the relationship with the European Union.

PRC-Malta ties have a relatively long history. Malta was one of the first European countries to establish diplomatic relations with the People’s Republic of China in early 1972, then also under a Labor government. And as Malta prepared to close the military bases of its former colonial overlord Britain in the mid 1970s, it also won substantial economic aid from China (the bases were finally shut in 1979). That included providing complete factories to produce glass, textiles, and chocolate, as well as state-owned China Harbour Engineering Corporation, funding and constructing a massive 300,000-ton dry dock that berths supertankers, nicknamed the “Red China Dock,” completed in 1980 and still used today. China is now planning construction of a massive new embassy in Malta, expected to be even bigger than the large U.S. embassy.
Muscat visited China in September where he signed a memorandum of understanding that will see state-owned enterprises, China Power Investment and Shanghai Electric, invest a minority shareholding in Malta’s energy provider, aimed at producing photo-voltaic units for sale in Europe and the Mediterranean. Bloomberg Businessweek sat down for an interview with the Malta prime minister on Sept. 12th, on the sidelines of a World Economic Forum, meeting in Dalian. What follows are edited excerpts from the interview.
via Tiny Malta Turns to China, Says Prime Minister – Businessweek.
See also: https://chindia-alert.org/political-factors/geopolitics-chinese/
China recycling cleanup jolts global industry – Businessweek
China for years has welcomed the world’s trash, creating a roaring business in recycling and livelihoods for tens of thousands. Now authorities are clamping down on an industry that has helped the rich West dispose of its waste but also added to the degradation of China’s environment.
The Chinese campaign is aimed at enforcing standards for waste imports after Beijing decided too many were unusable or even dangerous and would end up in its landfills. Under the crackdown dubbed Green Fence, China has rejected hundreds of containers of waste it said were contaminated or that improperly mixed different types of scrap.
It is abruptly changing a multibillion-dollar global industry in which China is a major processing center for the world’s discarded soft drink bottles, scrap metal, electronics and other materials. Whole villages in China’s southeast are devoted to processing single products, such as electronics. Household workshops break down discarded computers or appliances to recover copper and other metals. Some use crude smelters or burn leftover plastic and other materials, releasing lead and other toxins into the air. Green Fence is in line with the ruling Communist Party’s pledges to make the economy cleaner and more efficient after three decades of breakneck growth that fouled rivers and left China’s cities choking on smog.
Brian Conners, who works for a Philadelphia company that recycles discarded refrigerators, says buyers used to visit every week looking for scrap plastic to ship to China for reprocessing. Then Beijing launched its crackdown in February aimed at cleaning up the thriving but dirty recycling industry.
“Now they’re all gone,” said Conners, president of ARCA Advanced Processing.
American and European recyclers send a significant part of their business to China and say they support higher quality standards. But stricter scrutiny has slowed imports and raised their costs. The decline in the number of traders buying scrap to ship to China has also depressed prices American and European recycling companies can get for their plastic and metals.
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“While we support Green Fence, it has increased our cost of doing business,” said Mike Biddle, founder of MBA Polymers, a plastics recycler with facilities in California, Europe and southern China. “It takes longer and there are more inspections.”
At the same time, people in the industry say recyclers that invest in cleaner technology might be rewarded with more business as dirtier competitors are forced out of the market. The crackdown also might create new opportunities to process material in the United States and Europe instead of shipping it around the globe.
China’s recycling industry has boomed over the past 20 years. Its manufacturers needed the metal, paper and plastic and Beijing was willing to tolerate the environmental cost. Millions of tons of discarded plastic, computers, electronics, newspapers and shredded automobiles and appliances are imported every year from the United States, Europe and Japan.
via China recycling cleanup jolts global industry – Businessweek.
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.
For China, Turkey missile deal a victory even if it doesn’t happen | Reuters
Turkey‘s $4 billion order for a Chinese missile defense system is a breakthrough for China in its bid to become a supplier of advanced weapons, even though opposition from Washington and NATO threatens to derail the deal.
The winning bid from the China Precision Machinery Import and Export Corp (CPMIEC) to deliver its FD-2000 air defense missile system in a joint production agreement with Turkey is the first time a Chinese supplier has won a major order for state-of-the-art equipment from a NATO member. U.S., Russian and Western European manufacturers were also in the fray.
The decision last week to award the contract to CPMIEC, a company that is under U.S. sanctions for dealings with Iran, North Korea and Syria, surprised global arms trade experts and senior NATO officials.
“It is quite significant I would say, if it materializes,” said Oliver Brauner, a researcher on China’s arms exports at the Stockholm International Peace Research Institute (SIPRI).”It would certainly be a landmark deal.”
Turkey signaled on Monday that it could back away from its decision after Washington said it had “serious concerns” about the deal with a sanctioned company for a system that would not be compatible with NATO’s other weapons and networks.
And, in a reminder that Ankara faces stiff opposition from its alliance partners in Europe, a NATO official in Brussels said it was important that equipment ordered by member countries is compatible.
“It is premature at this stage to say whether Turkey’s acquisition will be able to operate with the NATO Integrated Air and Missile Defence System,” the official said.
NATO’s disappointment with Turkey is heightened by the fact that the United States, Germany and the Netherlands each sent two Patriot batteries earlier this year after Ankara asked for help in beefing up its air defenses against the threat of missiles from Syria.
Ankara could call off the air defense deal under pressure, but some Chinese and foreign commentators suggested it would still be a symbolic victory for Beijing.
They say Turkey’s willingness to choose the FD-2000 over established rivals confirms the rapid technical improvement and competitiveness of China’s missile and aerospace sector.
Chinese military experts say the system performed well in live tests for the Turkish Defence Ministry.
It also signals that China’s sprawling defense industry is poised to become a low cost supplier of high technology weaponry alongside its rapidly expanding sales of basic military equipment including small arms, artillery, armored vehicles, general purpose vehicles and older generation missiles.
via For China, Turkey missile deal a victory even if it doesn’t happen | Reuters.
See also:
China’s Synthetic Natural Gas Plants Could Accelerate Climate Change – Businessweek
Northern China’s reliance on burning coal for heat and energy contributes to the heavy haze that shrouds city buildings, especially in winter, and shortens the life spans of northerners as compared with their southern counterparts by as much as five years, according to a recent study (PDF) in the Proceedings of the National Academy of Sciences.

Beijing and other Chinese cities won’t see frequent blue skies until coal burning is dramatically curtailed in adjacent industrial regions. In September, China’s State Council released a significant new environmental target: trimming coal’s contribution to overall energy output from 67 percent in 2012 to 65 percent in 2017, even as the country’s economy and energy demand continue to grow.
STORY: Growing Concerns About Pollution And Public Health In China
Unfortunately, one scheme to limit coal burning by converting China’s plentiful coal supplies into synthetic natural gas (SNG) presents a host of other ecological worries. To date, China’s government has approved construction of nine large SNG plants in northern and western China, which are projected to generate 37 billion cubic meters of gas each year when completed. At least 30 more proposed plants are awaiting approval.
None of these planned plants are located near large Chinese cities, so the emissions generated in producing the gas will not hang directly over metropolises. But that doesn’t mean the coal-to-gas conversion process is clean. According to a new study (PDF) in Nature Climate Change, the entire life cycle of harvesting coal and turning it into gas produces from 36 percent to 82 percent more total greenhouse gas emissions than burning coal directly—depending on whether the gas is used to generate electricity or power vehicles.
While the most-polluting stages of energy generation could be moved farther from China’s population centers—perhaps allowing for more brighter, cleaner days in Beijing—the net effect could be to accelerate global climate change, argue the study’s authors, Chi-Jen Yang and Robert Jackson of the Nicholas School of the Environment at Duke University.
via China’s Synthetic Natural Gas Plants Could Accelerate Climate Change – Businessweek.
See also: https://chindia-alert.org/economic-factors/greening-of-china/
Chinese inspectors uncover widespread corruption in “shock and awe” probe | South China Morning Post
Ten teams of inspectors sent around the nation four months ago as part of the leadership’s anti-graft drive have wrapped up their field trips, finding “corruption problems” in most places they visited.

They inspected units in Chongqing, Inner Mongolia, Jiangxi, Hubei and Guizhou, as well as the Ministry of Water Resources, the Import-Export Bank of China, the China Grain Reserves Corporation, Renmin University and the China Publishing Group.
The teams have provided feedback to the inspected bodies and alerted the Central Commission for Discipline Inspection (CCDI) to signs of possible corruption, according to a statement released on the official website run jointly by the CCDI and the Ministry of Supervision.
The central inspection teams aim to spot corruption and create an atmosphere of “shock and awe” [among officials] to curb rampant corruption, said Wang Qishan, China’s anticorruption tsar, before despatching the teams in mid-May.
The most eye-catching destination was Chongqing, still smarting from the upheavals of the downfall of its former party chief Bo Xilai . Bo was sentenced to life imprisonment for corruption and abuse of power.
In a comment about the new Chongqing municipal government, Xu Guangchun, head of the Fifth Central Inspection Team, said the municipality had failed to impose sufficient checks and supervision over its top leaders, and certain leading cadres did not have firm political beliefs and failed to reach moral standards.
Xu also warned about “corruption risks” in state-owned enterprises in the municipality, pointing to rampant “fly-style” corruption – committed by lower-ranking officials – within the organisations.
via Chinese inspectors uncover widespread corruption in “shock and awe” probe | South China Morning Post.




