The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.
“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Neither Yi nor Zhou gave a timeframe for any changes. Continue reading
AFP – With deals from London to Singapore, China is seeking a greater role for its yuan currency in global markets to challenge the hegemony of the almighty dollar.
The most attention-grabbing reform planned for Shanghai’s new free trade zone is free convertibility of the yuan — also known as the renminbi, or “people’s money” — an unprecedented change which would allow greater use of the currency. Continue reading
Truthfully, this doesn’t necessarily mark a “true return”. This is nothing short of evidence of a continued practice of Maoism. The CCP’s long-range strategy hasn’t changed one bit since Mao’s departure. With the U.S. in suicidal decline, China can more often openly display its true intentions. This is only but a new chapter in the evolution of Maoism through the employment of Sun Tzu strategy — something still very relevant in China today.
Last week finally saw the epilogue of the eventful Bo Xilai affair. The former high-ranking official of the single-party state, both a member of the Chinese Community Party (CCP) Politburo and the most powerful figure of the Chongqing municipality, was sentenced to life imprisonment by a court in the Shandong province. But this legal and political saga is far from being over, as there are other similar cases that have yet to play out.
It was no coincidence that Bo Xilai’s trial took place in a different province than the one where his clans and networks were based. He operated in the Sichuan province, where he tried to sideline rivals under the cover of a vast anti-corruption campaign, and also in the Shanxi province, where he was born and inherited the network of connections built by his father, the revolutionary and former top party official Bo Yibo. Only in this way can the justice system of a single-party state overcome clan networks. Continue reading
HONG KONG — To understand the attitude of China’s new leadership toward reform, you need to understand “The Chinese Dream.”
Adopted by Xi Jinping as his governing slogan at the end of last year, “The Chinese Dream” has since become ubiquitous in the People’s Republic: it’s featured in newspaper editorials, TV debates and elementary-school textbooks. It’s taught in universities, prisons and work training programs. It’s written on walls and plastered on propaganda billboards.
But what does “The Chinese Dream” mean?
That’s tougher to say. Continue reading
SINGAPORE – China’s strategy to diversify supply routes for its rapidly rising energy imports has just taken a major step forward.
On July 15, natural gas from Myanmar (aka Burma) started to flow along a recently completed pipeline that stretches for 1,100 kilometers from the sea coast, through jungle and mountains, to Kunming in southwest China.
There it will feed into other gas lines supplying homes, industries and power plants generating electricity in the world’s biggest energy user. Continue reading
Blind Chinese dissident Chen Guangcheng has now released a statement concerning his allegations that New York University is severing relations with him to curry favor with China’s oppressive Communist government and assure completion of a gleaming portal campus in Shanghai.
The statement, obtained Sunday night by The Daily Caller, is a humdinger. In addition to squarely accusing NYU of caving to Chinese pressure, the self-taught lawyer and famed human rights activist charges that a large number of American academics and academic institutions have become wrapped in the tentacles of China’s communist government.
“The work of the Chinese Communists within academic circles in the United States is far greater than what people imagine, and some scholars have no option but to hold themselves back,” Chen said. “Academic independence and academic freedom in the United States are being greatly threatened by a totalitarian regime.” Continue reading
TOKYO: Despite Beijing’s fulminations, India and Japan on Wednesday lifted their strategic convergence to a new level by vowing to work together for ensuring stability in the Asia-Pacific region in the face of growing muscle-flexing by China.
As Japan pledged financial assistance for big-ticket projects like the Chennai-Bangalore industrial corridor and third line of Mumbai Metro and displayed willingness for early conclusion of India’s effort for civil nuclear cooperation, Prime Minister Manmohan Singh and his Japanese counterpart Shinzo Abe spoke of a partnership of the two democracies against use of force to change the order in Asia: diplomatic shorthand for Chinese attempt to arm-twist Japan and other nations into making territorial concessions. Continue reading
The Chinese Communist Party has warned officials to combat “dangerous” Western values and other perceived ideological threats, according to accounts of a directive that analysts said reflects the top leader Xi Jinping’s determination to preserve top-down political control even as he considers economic liberalisation. Continue reading
China’s main newspaper said on Wednesday that Beijing is unsure of Japan’s sovereignty over the island of Okinawa—the home of key U.S. military bases.
A long-winded article in the People’s Daily—the mouthpiece of China’s ruling Communist Party—said that Beijing may rightfully own the Ryukyu island chain, which includes Okinawa. The island is home to 1.3 million people, who are much more closely related to Japan than to China in terms of both ethnicity and linguistics. The Ryukyus chain was a sort of vassal state of China before Japan annexed it in 1879, and now the Chinese say it should return to them based on post-World War II measures requiring Japan to return territories that it took from Beijing. Continue reading
Twenty-one men representing China’s most powerful institutions file into a conference room atop the icc Tower looming over Victoria Harbor. The Politburo Standing Committee has mustered the ceos of China’s four largest banks, Sinopec, and several other state-owned multinationals, plus officers from the Central Military Commission and a pair of academics from China’s top technology universities.
The general secretary formally opens the meeting. “As you know, the United States of America continues to manipulate its currency,” he begins. “It is devaluing its dollar, which steals away trade and reduces the value of its debts. The Standing Committee manages the yuan’s value to protect our manufacturing base and support employment.”
The secretary leans back ever so slightly to say what everyone in the room already knows, and the reason why they are here. “Three days ago, the Federal Reserve System announced its sixth quantitative easing policy in the past seven years.”
And now, the marching orders. Continue reading
Believing that Communist China would abide by its no-first-use policy is only wishful thinking in the first place. As the United States continues down the path of suicidal disarmament, along with an almost two decade-old force collecting dust, countries such as China and Russia are modernizing their nuclear strategic forces. Within the next few years, they will likely have first strike capability. One shouldn’t expect them to hold back and leverage their military advantage to extract concessions from the USA.
INTERPRETING any country’s pronouncements about its nuclear weapons can be a study in fine distinctions, but occasionally a state says — or fails to say — something in a clear break from the past. A Chinese white paper on defense, released on Tuesday, falls into this category and now demands our attention, because it omits a promise that China will never use nuclear weapons first.
That explicit pledge had been the cornerstone of Beijing’s stated nuclear policy for the last half-century. The white paper, however, introduces ambiguity. It endorses the use of nuclear weapons in response to a nuclear attack but does not rule out other uses. Continue reading
Chinese hackers “bombard” the Pentagon’s computer systems “by the millions each and every day” searching for a point of entry into the sensitive U.S. computing systems, according to officials speaking at an event on cybersecurity on Tuesday.
Former Attorney General Michael Mukasey and other high-level former U.S. officials warned during a discussion at The American Center for Democracy (ACD) that the U.S. government is woefully underprepared to combat and repel even the most benign type of cyber attack. Continue reading