China’s Xi Jinping has cast the die. After weighing up the unappetising choice before him for a year, he has picked the lesser of two poisons.
The balance of evidence is that most powerful Chinese leader since Mao Zedong aims to prick China’s $24 trillion credit bubble early in his 10-year term, rather than putting off the day of reckoning for yet another cycle.
This may be well-advised for China, but the rest of the world seems remarkably nonchalant over the implications. Brazil, Russia, South Africa, and the commodity bloc are already in the cross-hairs. Continue reading
China’s president, Xi Jinping, announced the creation of an Asian Infrastructure Investment Bank (AIIB) just before the October 2013 APEC meeting in Bali. If the new bank is managed professionally to finance commercially viable investments in economic infrastructure, it can begin to correct a very significant failure of global financial markets.
There is room for a new development bank, specialised in financing large-scale economic infrastructure on commercial terms, working alongside existing multilateral development banks, including the World Bank and the ADB. These well-established institutions have the expertise to lend a lot more for infrastructure, but have moved in a different direction. Net lending by multilateral development banks on commercial terms has been negative in five of the last ten years, including 2011 and 2012. The World Bank and the ADB are now focusing on concessional lending and knowledge sharing with low-income countries, leaving an important niche to be filled by a new financial institution. Continue reading
The United States has been quite vocal about its “pivot to Asia,” but as Washington seeks to further its influence in the Asia-Pacific, China has been quietly upping its own importance to Central and Latin America. Now China is making a push to further its engagement with countries in the Western Hemisphere, as evidenced by the announcement of a new dialogue mechanism. The Community of Latin American and Caribbean States (CELAC), which met in Cuba from January 28 to 29, adopted a statement announcing the establishment of a China-CELAC Forum. Continue reading
A Communist Party magazine has revealed the chief concerns President Xi Jinping expressed during his inspection of the country’s first aircraft carrier in August.
“[You should] build up [the carrier’s] combat readiness and logistics and support expeditiously,” the carrier’s captain, Zhang Zheng, said Xi told him before wrapping up his inspection of the Liaoning, according to an account in this month’s issue of Dangjian, or Party Construction, magazine. Continue reading
At this moment, it’s only a matter of time before the Western powers get pushed out, mainly the United States. As the United States becomes more unreliable to their regional partners, expect countries such as Vietnam, Japan, South Korea, etc… to form their own alliance or eventually become enveloped in a regional Asian bloc with China at the helm, as the pressure to join China would be more alluring than going to war against China, with limited or no support from the USA.
The Chinese government has announced that it is strengthening the implementation of police powers in the South China Sea, demanding that all foreign fishermen acquire approval from its authorities prior to operating in regions “belonging to China,” reports our Chinese-language sister paper Want Daily.
China lays claim to 2 million square kilometers, or nearly two-thirds, of the South China Sea, including an area that includes island groups claimed by the Philippines and Vietnam. Continue reading
The large-scale military exercise — dubbed “Mission Action 2013″ — involving 40,000 soldiers of the People’s Liberation Army (PLA) in October was personally approved by Chinese president Xi Jinping to prepare his troops in the event of war, according to a strongly-worded commentary published Saturday on the website of China’s official Xinhua news agency.
During a visit to Guangzhou, the capital of southern Guangdong province, to witness a naval exercise last December, Xi told his troops of his dream of rejuvenating the “great Chinese nation,” which he said cannot be achieved without a powerful army with Chinese characteristics. Continue reading
To answer a question from a previous post: No, China is not afraid of the United States — and this subtle act of capitulation is one such example as to why. China is slowly taking over Asia at America’s expense.
Washington’s reaction to the ADIZ announcement last month was initially strong, with sternly worded statements from US Secretary of State John Kerry and US Secretary of Defense Chuck Hagel, as well as the dispatch of US B-52 bombers into the new zone. Continue reading
Xinhua News Agency on Dec. 10 reported that China and Ukraine on Dec. 5 signed a cooperative agreement which included this article: China, according to the UN Security Council Resolution 984 and the Chinese government statement on providing security guarantees to Ukraine on Dec. 4, 1994, promises unconditionally not to use or threaten to use nuclear weapons against non-nuclear Ukraine, and to provide security guarantees to Ukraine if Ukraine is attacked by nuclear weapons or threatened by such aggression.
Clearly, this is a guarantee for strategic alliance and an unusual nuclear protection umbrella. Ukraine is far from China and in no way affects the latter’s national security. What ,then, is the need for such an agreement? Continue reading
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