China has claimed the right to take military action against aircraft that enter a newly declared “air defence identification zone” that covers an area contested by Japan, in a move that is likely to escalate an already tense territorial dispute in the East China Sea.
The Defence Ministry released a map and geographical co-ordinates for the zone, which covered areas very close to Japan and South Korea, and included the skies over islands that China claims as Diaoyu, and the Japanese claim as Senkaku. Continue reading
A series of diplomatic moves among the three members of the BRICS group has thrown into relief Beijing’s latest strategy to counter what it perceives as an anti-China containment policy spearheaded by Washington.
Earlier this week, the Indian and Russian prime ministers, respectively Manmohan Singh and Dmitry Medvedev made separate trips to Beijing at the invitation of Premier Li Keqiang. Last week, the Indian leader was in Moscow where he concluded energy and arms-procurement deals in meetings with President Vladimir Putin and Medvedev. Continue reading
China’s leadership will soon usher in bold reforms to support a domestic consumption-driven economic model, and globalizing the renminbi as an alternative store of wealth to the US dollar is at the center of the strategy.
The scathing commentary published by China’s state-owned Xinhua news agency calling for a ‘de-Americanized world’ was undoubtedly music to the ears of many in the developing world. The article – published during the recent fiscal deadlock – accused Washington of abusing its superpower status by engaging in unwarranted military conflicts, engineering regime changes with impunity, and mishandling its status as the issuer of the world reserve currency by exporting risk abroad. Xinhua’s commentary also called for drastic reforms of the IMF and World Bank to reflect the growing muscle of the developing world, and most significantly, “the introduction of a new international reserve currency that is to be created to replace the dominant US dollar.” Continue reading
China is the 10-member ASEAN group’s largest trading partner, with the two-way trade exceeding $400 billion last year
China proposes to build a Maritime Silk Road with Southeast Asia countries where it is locked in a vexed dispute over the South China Sea to boost its foreign trade, state media here reported today.
The Maritime Silk Road (MSR) formed the basis the plans to enhance trade between China and ASEAN countries during the current visit of Chinese President Xi Jinping to Indonesia and Malaysia where he stated the MSR would help turn the “Golden Decade” between China and the region into “Diamond Decade”. 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
The Fed will very likely never ‘taper’. If so, there will be a bond sell off which would quickly spiral out of control. Quantitative easing, or QE, will be permanent until it eventually causes a collapse.
The Fed not tapering is also supported by Egon von Greyerz, the founder of Matterhorn Asset Management in Switzerland, in an interview just two days ago.
The ‘day of reckoning’ is indeed coming. The question is not if, but when.
On Sept. 15, Canadian billionaire Ned Goodman spoke at the Cambridge House regarding the U.S. dollar, and the state of the Western economies. In his nearly eight minute speech, the 75 year old CEO of Dundee Capital Markets and Chancellor of Brock University painted a picture of the upcoming change in reserve currency control by the U.S., and how the dollar will soon be replaced as nations around the world rush to get rid of their currency reserves.
Ned Goodman: In my view, the dollar is about to become dethroned as the world’s de facto currency. I’ll tell you how I came to that conclusion so quickly… the new President of China, Xi Jinping, his first visit on the day of his becoming President, was at his request to meet with Mr. Putin. And he immediately made a deal with Mr. Putin to get all the oil that he needs, which he can buy in Renminbi.
We’re headed to a period of stagflation, maybe serious inflation, but stagflation for sure, and the United States will be losing the privilege to print at its will, the world’s reserve currency. A period that’s going to be very inflationary, and I can tell you that before that happens, it is likely that it is going to get quite ugly. – Ned Goodman, Cambridge House Continue reading
BEIJING, Sept. 8 (Xinhua) — Foreign experts spoke highly of Chinese President Xi Jinping’s speech on China’s foreign policy toward Central Asia, referring to the Silk Road economic belt he proposed as a grand cause benefiting regional countries.
Xi, currently in Kazakhstan for a state visit, proposed that China and Central Asia join hands to build a Silk Road economic belt to boost cooperation, in a speech delivered at Nazarbayev University on Saturday.
The Silk Road boasts a three-billion population and a market that is unparalleled both in scale and potential, said Xi, urging relevant parties to facilitate trade and investment and remove barriers. Continue reading
As China becomes a superpower, so with it comes the need for a stronger military.
President Xi Jinping told the Navy this weekend that he wants his military to train harder, strengthen their defense capabilities and protect the country’s “sovereignty, security and development.”
Last week, President Xi was at the Shenyang military theater of operations where he visited a training session aboard China’s first aircraft carrier, the Liaoning. 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
According to Robert Valencia, China is vying for greater economic influence in Latin America, to include possibly constructing and operating an alternative ‘Panama Canal’ through Nicaragua. One unanticipated consequence of this burgeoning US-China rivalry, Valencia observes, is that it might push Latin American countries closer together.
During the first weekend of June, U.S. President Barack Obama and Chinese President Xi Jinping met in California to discuss cyber espionage and territorial claims in the Pacific Rim. While tension on these topics has hogged the headlines, the fight for influence in another area could be even more important—Latin America. Other emerging markets in Africa, where China has an overwhelming influence due to foreign direct investment in mining and oil, also offer economic opportunities, but Latin America has an abundance of natural resources, greater purchasing power, and geographic proximity to the United States, which has long considered Latin America as its “backyard.” Continue reading
(Reuters) – Major emerging-market economies are paying close attention to “new and complex” developments in global financial markets and want closer coordination of their macroeconomic policies, a diplomatic source briefed on the matter told Reuters on Monday.
Brazilian President Dilma Rousseff and her Chinese counterpart, Xi Jinping, discussed ways to strengthen policy coordination on Monday in a telephone conversation, said the official, who asked not to be identified. Continue reading