• Thanks for stopping by. Logging in to a registered account will remove all generic ads. Please reach out with any questions or concerns.

Chinese Military,Political and Social Superthread

Sharp rise in China birth defects

_45433356_004689777-2.jpg

The report suggests China's rapid
development has a human cost


A senior family planning official in China has noted an alarming rise in the
number of babies with birth defects, a Chinese media report says.

Jiang Fan, from China's National Population and Family Planning Commission,
said environmental pollution was the cause of the problem. He said a child
was born with physical defects every 30 seconds because of the degrading
environment. The report said China's coal-rich Shanxi province had the
highest rate. The commission blamed emissions from the region's large
chemical industry for the problems there.

'Prevention plan'

Correspondents say the report suggests there is a human cost to China's
rapid economic development. Researchers also blamed exposure to nitrogen
dioxide, carbon monoxide and particulates for the increase.

"The number of newborns with birth defects is constantly increasing in both
urban and rural areas," China Daily newspaper quoted Ms Jiang as saying.
"The rather alarming increase has forced us to kick off a high-level prevention
plan." The commission had introduced a screening programme in the eight
worst-affected provinces, Ms Jiang explained.
 
More evidence that Beijing has been increasing its footprint in Africa:

China’s Unusual Deals Working to Grow African Arms Presence
01-Feb-2009 17:49 EST

In July 2008, “Africa: The Next Defense Market Opportunity?” looked at projected trends, and discussed the reasons behind China’s resurgent status as an arms vendor to those states. UPI Asia’s recent “China expanding African arms sales”  offers additional details.

In 2008, the point was underlined by sales like the deal with Zimbabwe for 12 K-8/JL-8 jet trainers and light attack aircraft, but a number of deals are reportedly pending with various countries. These reportedly include everything from K-8 Karakorum jets and FC-1/JF-17 fighters, to WMZ-551 wheeled APCs, artillery, and of course the usual set of small arms and ammunition deals. One of the challenges that the July 2008 Forecast International report had discussed is the region’s economic weakness, but UPI Asia notes that China has a solution. Zambia has used its copper resources to pay China in a number of military deals, Kenya has been negotiating with China to trade fishing rights for arms, and similar deals are under discussion elsewhere.

While China’s economy has cooled as a result of the global recession, long-term, secure access to the resources needed to supply its growing economy is one of the regime’s top strategic priorities. Africa is poor by policy, but the continent has rich resources of oil and key industrial metals. This Chinese arms thrust looks set to be combined with soft-power approaches, such as the recent launch of a PLAN hospital ship that can serve in diplomatic roles, as well as offering high-capacity medical support for amphibious assaults. If arms sales and naval activities can be combined with economic ties and other forms of local relationship-building and military presence, China will gain the full range of tools for influencing these regimes in favorable ways.

Oddly, none of this was mentioned in a recent SIPRI analysis of China’s stepped-up deployments of peacekeeping troops, which appear to have a strong focus on African operations.
 
Yikes. Another worry for the USN?
China increases sub patrols

Agence France-Presse
First Posted 09:45:00 02/04/2009
Filed Under: Defense, Military, Espionage & Intelligence, Waterway & Maritime Transport

WASHINGTON -- China nearly doubled the number of patrols by its fleet of attack submarines last year, surpassing Russia but still far behind the United States, the Federation of American Scientists reported Tuesday.

The report, based on declassified information provided by US naval intelligence, said Chinese attack submarines conducted 12 patrols in 2008, compared to seven in 2007, two in 2006 and none in 2005.


"While the increase in submarine patrols is important, it has to be seen in comparison with the size of the Chinese submarine fleet," said Hans Kristensen, director of the organization's nuclear information project.

"With approximately 54 submarines, the patrol rate means that each submarine on average goes on patrol once every four and a half years," he said.

The patrols may have been carried out by just the most modern and capable types of submarines in the Chinese fleet, the report said, noting that a new class of nuclear-powered Shang-class attack submarines is replacing the aging Han-class.

In an interview, Kristensen said the information, although sketchy, was a window into how Chinese naval operations are changing as it builds up its forces.

"We don't know where they went or for how long. But it certainly seems to be a new mission. They have been very modest in their patrols in the past," he said.

"The fact that from one year to another they have doubled their patrols seems that they have something new to do," he said.

"It could be, as we've heard for the last four years or so, an attempt to expand their naval defense barrier further eastward into the Pacific," he said.

In comparison with other major navies, a dozen patrols a year "are not much," the report said.

"The patrol rate of the US attack submarine fleet, which is focused on long-range patrols and probably operate regularly near the Chinese coast, is much higher with each submarine conducting at least one extended patrol per year," it said.

"But the Chinese patrol rate is higher than that of the Russian navy, which in 2008 conducted only seven attack submarine patrols, the same as in 2007," it said.

China has yet to conduct a single patrol by a ballistic missile submarine, according to the report.

"The old Xia, China's first SSBN, completed a multi-year overhaul in late-2007 but did not sail on patrol in 2008," it said.

"Neither the Xia-class (Type-092) ballistic missile submarine nor the new Jin-class (Type-094) have ever conducted a deterrent patrol," it said.
 
The Chinese leadership has set very ambitious goals, while the new Administration seems to be looking in the wrong direction. The fly in the ointment is the mismatch between the Chinese goals and the means to achieve them, and the underlying fragility of China itself. How the Chinese deal with the issues at home will determine how they can achieve their goals abroad.

I think it is safe to say for the next four years no one will be answering the phone at 0300; the Administration and Congress has a goal of politicising large portions of the US economy rather than looking outwards:

http://newledger.com/2009/02/its-not-just-generals-who-fight-the-last-war/

It’s Not Just Generals Who Fight the Last War

by Christopher Badeaux

There’s really no rhyme or reason to the conflict between great powers. Sometimes it comes with no real warning: No one in January of 1913 could have reasonably imagined that a mere five years later Europe would be a war-torn mess, with the best and brightest of a generation rotting in graves across France and Germany, Russia at the mouth end of a civil war that would yield the world’s first Marxist regime, and America washing its hands of the whole, sordid mess. By contrast, for a decade, everyone from London to Moscow feared and expected the French Revolution to boil over across the Continent at some point, making the little Corsican’s run from 1799 onward all the more embarrassing to the armies he trounced.

American Presidents from 1948 to 1991 had one advantage that offset the fact that their country faced nuclear annihilation on a daily basis: Their country faced nuclear annihilation on a daily basis, and so identifying their most important foreign policy focus became and remained easy. They lived in a world where, for the most part, the conflicts of their age were relatively well-signaled by the time they took their respective oaths of office, and so they could more reasonably be held to their campaign promises about how they would handle those conflicts.

The demise of the Soviet Empire led to a decade that we in the West thought pretty relaxed, the genocides in the Balkans, Africa, and Asia being the things of campaign rhetoric and gladhanded self-absolution. The 2000 election’s main foreign policy themes revolved around the candidates’ abilities to pronounce foreign leaders’ names and whether we would commit troops to low-intensity, more-or-less permanent “nation-building” exercises abroad.

As everyone noted for about a year after the World Trade Center fell, and some suggest even now, the Nineties were a vacation from reality. The Clinton Administration swept into office determined to enjoy a peace dividend and to manage international crises in such a way as not to spend that peace dividend. The relentless criticism of the first Bush Administration’s approach to the Balkan wars and China turned out, in the end, to be well-intentioned rhetoric backed by boots on the ground only when the worst had passed.

Put differently, the graveyards of Srebenica and Kigali are testaments to a foreign policy determined to manage problems out of the headlines, rather than out of existence.

This is not merely to pick on the Clinton Administration. Bill Clinton’s approach to foreign policy was not merely well-understood by the time he faced re-election, it was endorsed by a plurality of the American electorate and, frankly, George W. Bush’s first eight months in office. As just one example, the Clinton Administration’s feckless response to high-level Chinese espionage and its clearly enunciated intention to supplant America as the regional hegemon was really no different than the Bush Administration’s approach to Han fascism.

Indeed, Bush deserves more scorn here, because China’s rise as a fairly open and obvious enemy was a recurring feature of the 1990s, all of the blather about low-intensity warfare on Europe’s back porch notwithstanding. From their expedited efforts at military reform, to the espionage at Los Alamos, to their increased posturing over Taiwan and the Senkakus, to the array of various-colored papers China released as part of its endless posturing, China made clear that it intended to assume hegemony over Asia and as much of the Pacific as possible, and that it viewed the United States as an enemy, not a “strategic partner.” Despite this, as one of the last major diplomatic acts of the period between the end of the Cold War and the beginning of the Age of Terror, after the People’s Republic forced down an American plane over international waters, the Bush Administration kowtowed to Beijing, a tacit capitulation in the face of a clearly designed effort by Beijing to test the new administration’s resolve.

In the wake of the September 11 attacks, the Bush Administration’s foreign policy changed significantly, in tone and substance. However, on everything from North Korea policy to trade to regional power conferences, the Bush Administration continued to treat what Michael Ledeen famously, and correctly, identified as the world’s only truly functional fascist state as a legitimate power of nations, and as a regional partner rather than an enemy.

And that’s just China. It doesn’t even touch on the resurgence of a Russia returned from anarchy and a less functional kleptocracy; or on the dissolution of the weak bonds of NATO in Western Europe; or on the final stages of complete nuclear proliferation; or on the growth of a Pacific-centered foreign policy by Australia and many of the nations of Southeast Asia, of which America is frequently treated as a peripheral part. For eight years, the world has become a more chaotic, more dangerous place, with fewer wars and genocides, and more wars and genocides in the offing, than at any time since the fall of the Soviet Union.

For eight years, the world has been trying to teach the United States, and its new President, some vital lessons. President Obama shows no signs of learning them.

An observer who lapsed into a coma in early 1998 and awoke a few days ago could reasonably conclude, if given only the names and curriculum vitae of President Obama’s foreign policy team, that the world had been remarkably static since the end of the Clinton Administration. Such an observer would not be remotely surprised to find that American foreign policy was almost obsessively preoccupied with the Middle East, even beyond Israel and the question of strategic access to oil supplies. That observer would be surprised to find out that Israeli foreign policy has basically yielded on the question of Palestinian control over large parts of Gaza and the West Bank; that the free flow of oil to the West is not really in doubt; and that all of this focus is the result of a war in Iraq to overthrow Saddam Hussein, an unpopular war now basically won and winding down.

The origins of this manic focus — this unrelenting determination to fight yesterday’s foreign policy battles — lie in the eighteen-month rush to war with Iraq. In October of 2002, then-State Senator Barack Obama made a speech on which he would touch, again and again, during the portion of his Presidential campaign that masqueraded as a stint in the United States Senate. Speaking to a friendly, anti-Iraq War crowd, Obama touched on all of the classic anti-war themes of the modern age: Jewish neoconservatives, Karl Rove, oil, and the looming depression that was a booming economy. Snark aside, some variant on that speech, in substance and text, was probably offered by thousands if not millions of people at rallies, in Congress, at coffee houses, and in dorm rooms across the country. During his meteoric rise to the Presidency, that speech became an essential aspect of his political identity, allowing him to position himself on the Left flank of the Democratic Party (where a goldmine of campaign contributions was waiting) and in opposition to the more centrist Democrats who had been backing some sort of conflict with Saddam Hussein for half a decade or more.

Through the weird thaumaturgy of American politics of the last eight years, American politics — and the Democratic Party in particular — grew increasingly obsessed with a war with a casualty rate of staggeringly small proportions, that had been basically won by the time of the 2008 elections. This myopic focus will have eventful consequences in the years ahead.

Most of the countries with whom the United States enjoys extremely tense relations have a view of the world that is considerably more akin to Vatican foreign policy than American: Ordinarily, they think in terms of decades and centuries, where we think in terms of Presidential terms. China, Iran, and Russia, while sharing virtually no other foreign policy views or assumptions, all believe that they have been here before the rise of the West, they will be here after, and their first goal is to identify Western (especially American) weakness and exploit it. Worse for us, each of those countries is facing both an economic collapse — where material well-being was one of the only reasons not to overthrow the regime — and a demographic collapse, both of which leave them keen to find advantage and use it.

President Obama’s first public act of foreign policy was to apologize on behalf of the United States to the Muslim world (apparently for freeing millions of Muslims from tyranny in Iraq, helping seize Kosovo Field from the Serbs, and only repeating the phrase “religion of peace” to describe Islam 2.6 million times the last eight years). Even before taking office, his transition team was reaching out to the Middle East to try to return America to its footing there in the late 1990s. The essential stupidity of these acts is no less for being entirely consistent with both a Clinton-era style of problem management (”I feel your pain”) and the odd, modern Democratic fixation on the Middle East and correcting the policies of the Bush Administration. Obama is pretending that the Middle East is the most important thing going in the world right now, and that the rest of the world can be managed, Clinton style. This is a profound misallocation of political capital and diplomatic resources, and one for which there is no excuse.

Take China. Sino-American relations have been marked for the last two decades by a handful of ironclad assumptions by American foreign policy makers which are both items of faith and largely false. Among these: That China is a highly stable, growing, prosperous society, with no large-scale internal unrest, a booming economy, and a desire to take its place in the world as a friendly, if mercantilist, power. If ever these assumptions were true, they are in serious doubt now. China is a stewpot in serious danger of boiling over.

Most Americans have no idea that somewhere on the order of ten percent (according to official government figures, which in turn probably means closer to fifteen percent) of Chinese are migrant workers, moving from rural homes to work in factories and other blue collar jobs in the coastal cities. In other words, scores of millions of Chinese are basically rootless, and for the last fifteen years have put bread to mouth by moving between the booming areas of China and doing whatever jobs needed to be done. Those people have only not become wandering mobs because of the booming economy, which of course went ka-boom a few months ago.

The results are terrifying. According to official Chinese figures — which are usually only half to three-quarters as bad as the truth — twenty million of the country’s migrant workers “have returned home,” by which they mean, have fled the coastal areas and relocated in the rural areas that could not support them when they left. Given that the number is probably more like thirty million, to put this in perspective for Americans, imagine that the entire population of the Houston Metropolitan Area simply packed up and headed to Nebraska and resettled there. Now imagine that those people generally don’t have cars and instead have to rely on an unreliable train system; that they don’t have the money to buy all of the food and water they need on the way and once they get there; and that even if they did, the infrastructure and the resources to supply them simply don’t exist.

All of this, in the first six months of a global recession which shows no signs of ending soon. Against the backdrop of a rapidly slowing economy — official Chinese estimates put growth down to nine percent per annum, which probably means that China is at or near a recession — China’s internal stability and the cool decision making that come with it are in doubt. This comes well in advance of the demographic bomb awaiting China in less than ten years.

Chinese reaction has been predictable, as, sadly, has been the American response. China released its latest, posturing, military white paper on the day of President Obama’s inauguration, essentially announcing its intent to secure regional hegemony by the end of the next decade. In both what it announced (strategic goals and obstacles) and what it didn’t (specifics of military development and power projection capabilities), the PRC made clear that it intends to constantly expand its sphere of influence through Asia and beyond. In response, the Obama Administration had Hillary Clinton promise no change in the foreign policy of the last twenty years in prepared remarks for her Senate confirmation as Secretary of State.

That’s right: The world’s most populous nation, a nuclear power with dreams of regional hegemony and global preeminence, is extending its military and foreign policy goals and power projection capabilities while its population begins to enter that condition delicately known as “France, 1788,” and the leader of the free world spends his diplomatic capital putting down a crisis that, insofar as it existed, ended a year before he took office. In so doing, he essentially told China that it would have a free hand for the foreseeable future.

Nor is the world merely becoming more dangerous in Zhongguo. The Korean peninsula is marked by a dangerous uncertainty even greater than usual. Is Kim Jong-Il still alive? In power? If not, who is? Relations between the North and the South, so promising (if one finds promise in attempts to treat bloodthirsty Marxist dictatorships as members of the community of nations) just a year ago, have once again entered the dysfunctional stage. Recent phone calls notwithstanding, there is no indication that the Obama Administration plans to handle North Korea and its clearance-aisle approach to nuclear weapons any differently than did the prior two administrations, which is to say, it apparently hopes that this round of talks will turn a paranoid, insular, military dictatorship prone to spontaneous military violence into a well-adjusted nation-state.

But even with all that, who could forget Russia? Russia, with nuclear weapons that may or may not still work. Russia, with a resurgent dictatorship, that has been resurging for eight years. Russia, riding high on oil wealth and adventurous in the Caucuses until oil’s collapse, with the internal political unrest one would expect of an economy whose only real support has collapsed. Russia, expansionist and assertive because that’s the only way it sees out of its economic and demographic trap. Russia, which took the occasion of Barack Obama’s election to the Presidency to announce that America has a nice Poland, it would be a shame if anything happened to it. Russia, whose revanchism and adventurism are directly and knowingly enabled by Germany — the same Germany that gave Obama the best crowds a politician has experienced in Berlin in seventy years.

In the interest of brevity, I’m not even touching on the challenges waiting outside of Eurasia, including the collapse of Brazil’s export market, the effect of cheaper oil on Venezuela, the return of the Islamic Courts to Somalia, the bloodletting in Central Africa, Iran’s nearly complete possession of nuclear missiles … you get the idea. The world is actively becoming a more dangerous, more chaotic place, from forces set in motion decades ago to the recent economic collapse. In response, President Obama plans to use the same toolkit and approach that gave us the world in which we live.

He is fighting the last war, using the old weapons, and seems to believe he’s waging a future peace. Even in this time of hope and change, that’s a recipe for disasters new and old.
 
A response to Russia's recently announced intent to quadruple its nuclear weapons production?

Btw, read any work by such prominent Sinologists such as David Shambaugh and they often cite the focus that the PRC government has put into the a "non-1st strike" policy regarding its nuclear weapons, meaning that they supposedly would only use its nuclear weapons in retaliation for a nuclear strike on their own country.

China's Nuclear Commander Vows Buildup

By wendell minnick
Published: 3 Feb 12:10 EST (17:10 GMT) 

Taipei - The commander of China's strategic missile and nuclear force has vowed to strengthen its nuclear and conventional missile capabilities.

The proclamation was made by Gen. Jing Zhiyuan, commander of the Second Artillery Corps, in an article co-authored with the Corps' political commissar, Gen. Peng Xiaofeng. The article appeared in the Feb. 1 edition of the state-run Quishi [Seeking Truth] Journal (#496), which is affiliated with the Chinese Communist Party's Central Committee.

The article read like old-school Communist rhetoric.


"We must always strive to use the theoretical system of socialism with Chinese characteristics and arm our minds, and unswervingly implement the Party Central Committee and Central Military Commission and President Hu's [Jintao] decision-making instructions for their strategic missile force firmly casting eternal soul," the article said.

Most of the article rehashes the history of the Second Artillery Corps, name-drops important Chinese leaders who helped in the corps' evolution and raves about the outstanding performance of the corps' troops.

However, the Quishi article has invoked a rash of media reports touting China's intent to expand its nuclear and conventional missile arsenal.

"We should deepen the Second Artillery Corps of innovation in military theory, strengthen the use of strategic deterrent and nuclear operations forces," it reads. The authors also called for better training programs and improved combat systems.

Despite the media hype, the comments largely ape the defense white paper released by China in January.

"Most of Jing's quotes closely follow the text of the white paper, and thus add little, though coming in Quishi, his comments gain the weight of Party authority," said John Lewis, author of the book, "Imagined Enemies: China Prepares for Uncertain War."

"U.S. military experts are not especially concerned about growth in the size of the Chinese nuclear arsenal," said Loren Thompson, chief operating officer of the Arlington, Va.-based Lexington Institute.

What concerns U.S. defense circles is the increasingly flexibility and accuracy of China's ballistic missile arsenal, including the introduction of mobile launchers, maneuvering warheads, improved target sensors, and command and control, Thompson said.

"The various improvements to Chinese missile forces means they will be better suited for actual war fighting, for example by targeting U.S. aircraft carriers," he said.

China has been developing an anti-ship ballistic missile (ASBM), but the goal may be beyond its reach. The problems a Chinese ASBM face include targeting and maneuverability, a capability beyond the U.S. military.

The missile, dubbed the Dong Feng 21C (East Wind), is to be based on the road-mobile, 2,500-kilometer Dong Feng 21 medium-range ballistic missile. The development of the missile is part of China's anti-access strategy designed to restrain U.S. aircraft carriers from drawing too close to Taiwan waters during a war. The strategy would force aircraft carriers to keep a safer distance and thus render aircraft sorties useless.
 
Chinese plans for an ambitious industrial policy. Before people start tooting horns or saying "gosh, we should be doing that too", think back to the 1980s. Japan, France and Germany made vast investments in industrial policy in an effort to boost their economies and not coincidentally, drive American firms out of many markets. While they were successful with goal 2, they also had vast amounts of resources locked in the "wrong" sectors of the economy and ended up worse off in terms of economic growth and unemployment by the end of the 1980's. It is also no coincidence that there really is no IT hardware and software sectors in "managed" or regulated economies; things like that don't occur to bureaucrats.

Highlighted is the other flaw in managing economies: attempting to pick winners and losers:

http://features.csmonitor.com/economyrebuild/2009/02/09/china-aims-for-its-own-silicon-valley/

China aims for its own Silicon Valley

Like the 'Asian tigers' before it, China is pushing into higher-end manufacturing and innovation.
By Carol Huang| Staff writer of The Christian Science Monitor/ February 9, 2009 edition

Staff writer Carol Huang

Shenzhen, China

The land of Nike shoes and plastic Christmas trees – and 40 percent of China’s factories – has been battered by falling foreign demand. But that doesn’t mean Guangdong Province is sitting idle. A pioneer in China’s capitalist experiments, it’s using the country’s worst slowdown in seven years to push ahead with a complete economic makeover.

Like Japan and the Asian tigers before it, China is moving to loosen the grip of high-volume, low-end manufacturing on its economy – and transform itself into a corner-office innovator that can dream up an idea and build it to exacting specifications.

Instead of just assembling iPods, in other words, China wants to invent the next “it” music player.

In an unusual silver lining, the economic crisis may be helping: By shaking out low-profit companies, it’s making room for more advanced ones.

The policy is known as “emptying the cage, removing the bird,” says Mei Xinyu, a senior researcher at the Ministry of Commerce in Beijing. The slowdown “sped up the process.”

China’s Silicon Valley?

Last month, the National Development and Reform Commission announced revised plans to transform Guangdong and neighboring Hong Kong and Macau into a “significant innovation center” by 2020.

One hundred R&D labs will be set up over the next three years. By 2012, per-capita output in the region should jump 50 percent from 2007, to 80,000 yuan ($11,700) And by 2020, the study predicts, 30 percent of all industrial output should come from high-tech manufacturing.

“While some traditional competitive industries such as household appliances, textiles and garments, papermaking, and Chinese herbal medicine will be upgraded to increase competence, inefficient energy-consuming sectors will gradually be phased out,” the plan states.

Low-end factories will have to relocate to cheaper provinces or countries.

For provincial officials, whose standing rises with Guangdong’s economic performance, that’s the only way forward. As global recession hit Chinese exports last year, growth in this region dropped to 10.1 percent, from 14.7 percent in 2007.

“Restarting outdated capacities for the sake of growth would just be like drinking poison to quench thirst,” Guangdong’s Communist Party boss Wang Yang, an advocate of upgrading, wrote in a recent opinion piece.

Still, the economic crisis has forced some compromise. To stem the troubling tide of millions of layoffs, officials decided to prop up the struggling companies they’ve sought to run into the ground, by reinstating an export tax rebate to help them cut costs.

“They’re trying to provide enough benefits to companies so they don’t go out of business, while at the same time not backtracking too much,” says Arthur Kroeber, head of Dragonomics, a consultancy based in Beijing.

Stimulus measures aim to balance spurring the economy with not sacrificing hi-tech upgrading. The elimination last month of the value-added tax for capital equipment is a case in point, says Mr. Kroeber.

Greener autos

Another example is an auto-industry aid package that halves sales tax on certain cars and subsidizes owners of high-emission vehicles who exchange them for more fuel-efficient, cleaner ones. It also includes a 10 billion yuan ($1.5 billion) fund to promote new technology, including the mass production of electric vehicles.

The Chinese government has deep pockets to help push manufacturing up the value chain, says the Commerce Ministry’s Mr. Mei – tapping an array of perks from subsidized infrastructure, tax breaks, investment, and generous government contracts.

Favored companies, like Huawei Technologies, China’s leading telecommunications equipmentmaker, got free or low-cost land and utilities, says Kroeber.

It also enjoyed liberal policies on resident permits for workers who had the right skills.

From Beijing’s perspective, the returns are worth the investment. The auto stimulus will benefit companies like BYD (“Build Your Dream”), a battery manufacturer-turned-carmaker that has advanced China’s green-car prospects and won it prestige as a globally recognized brand.

Already the world’s No. 2 batterymaker, it’s now the first company to have mass-produced hybrid, plug-in vehicles; it has also made an electric car.

“BYD is a key player in the world market,” says Duan Chengwu, an auto industry analyst with Global Insight, based in Shanghai.

The company’s international profile soared even higher last September when Warren Buffett bought a 10 percent stake in the company. At the Detroit Auto Show in January, BYD models got space on the main show floor – until then, Chinese carmakers had always been relegated to a basement or foyer.

Needed: workforce upgrade

In addition to putting massive resources into developing the infrastructure of high-tech upgrades, China needs to upgrade its workforce, says Liu Kaiming, head of the Shenzhen-based Institute for Contemporary Observation.

A lavish science park in Dongguan, a nearby factory city, illustrates the mismatch. The expansive campus – complete with apartments, hospital, school, mall, KFC, and a Hyatt hotel, all built around a natural lake and dotted with saplings and flower beds – is meant to impress.

But actually upgrading the “software” of manufacturing takes time. While some A-list companies like Huawei are setting up shop, many of the buildings remain uninhabited.

There are many “empty cages” these days, especially due to the economic crisis, says Mr. Liu. “But they are still waiting for the birds to come.”
 
Would it be fair to say that the PLA got a rude awakening when they invaded Vietnam in 1979, in their first major military operation since the Korean War or even that 1962 border conflict with India? Adept China watchers such as David Shambaugh certainly think so, as expressed in at least one of his books, by emphasizing that the PLA's shift from "People's War" to supposedly more modern doctrines began with events like these.

http://news.bbc.co.uk/2/hi/asia-pacific/7892296.stm?lss

Vietnam tense as China war is marked 

By Nga Pham
BBC News 


Vietnam is marking the anniversary of its border war with China with an uneasy quiet, as official channels avoid mentioning the events of 30 years ago.


Neither Vietnam nor China seem to wish to repeat the bitter events of 1979
But simmering nationalistic emotions are being brought to the surface by painful memories.

Hoang Thi Lich, 72, remembers vividly the morning of 17 February 1979, when she and her family woke to a suffocating sense of panic in the mountains of Cao Bang.

As dawn broke, China launched attacks on a number of positions in Vietnam's northernmost provinces with a staggering display of so-called "human waves" and artillery power.
Mrs Lich's family was quickly evacuated from her small hamlet in Hoa An district, along with a dozen other ethnic Tay families.

She recalls: "We were told to run southwards... I could hear loud gunfire. I was so frightened I froze for a long while, I did not know what to do."

Mrs Lich's family escaped to safety.

Just 18 days later, in the same Hoa An district, retreating Chinese soldiers reportedly hacked to death 43 people - mostly women and children.

Naive hopes

The Chinese attacks caught the Vietnamese off-guard, despite rumours of a war initiated by China's then-leader Deng Xiaoping circulating for months within Vietnamese political circles.

A former top official at Vietnam's embassy in Beijing, Duong Danh Dy, warned from early 1978 that the bilateral relationship between Hanoi and Beijing was worsening by the day.

In July 1978, after what Beijing considered mistreatment of ethnic Chinese living in Vietnam, China halted assistance to its neighbour, prompting Hanoi to sign a "co-operation and friendship" pact with Moscow soon after.

Around the same time Hanoi intensified its efforts to topple Beijing's ally, the Khmer Rouge's ultra-Maoist regime.

The bloody Vietnam-Cambodia conflict marked the first ever war between two communist nations.

Chairman Deng vowed to "teach Vietnam a lesson".

Vietnam's Duong Danh Dy, referring to a televised news briefing by the Chinese leader in December 1978, recalled: "I would never forget his face when he described Vietnam as a 'hooligan'.

"At that stage, we all thought 'that's it, a war is no longer avoidable'," Mr Dy said.

"But deep down inside we still hoped, perhaps naively, that since Vietnam and China had been so close and brotherly, they [the Chinese] wouldn't turn on us so fast and so strongly."

Isolation

Instead, Beijing mobilised hundreds of thousands of troops and volunteers in its largest military operation since the Korean War.

Vietnam, meanwhile, was in a difficult situation having to deal with its Cambodian conflict and reconstructing a near-collapsed economy.

  We have been faithful to our promise not to bring up old events for the sake of the relationship between the two countries

Vietnam's former first deputy foreign minister, who was in office when the border war began, said his country's isolationism had left it vulnerable.

"We were too dependent on our ideological allies, and by that time the only ally we had was the Soviet Union," said Tran Quang Co.

"Being a small country living next to a big country, we needed more friends. We needed to expand our ties and diversify our relations."

China's "pedagogical war" lasted just over a fortnight, with both Vietnam and China claiming victory.

Though disputable, estimates suggest that up to 60,000 lives were lost on both sides.

As well as the loss of life, the trust and fraternity that the two communist parties had struggled to build during the previous half a century suffered a severe blow.

In his memoir Memories and Thoughts, Tran Quang Co cited Vietnam's late leader Vo Van Kiet as saying in 1991 - the year the two countries normalised their relationship - that China "was always a trap".

'Too compromising'

The mutual distrust has lingered through the years, occasionally flaring when bilateral disputes occur.

Vietnam saw mass protests in December 2007, when China reportedly announced plans to establish an administrative unit to govern the Spratly and Paracel islands - territories claimed by Vietnam.

A smaller demonstration took place when the Beijing Olympic torch reached Vietnam's Ho Chi Minh City.


China's actions in the South China Sea sparked protests in Vietnam
However, such protests are uncommon.

Hanoi is trying hard not to jeopardise the warming ties with its giant neighbour. Neither Vietnam nor China seem to wish to repeat the bitter experience of 1979.

With bilateral trade rapidly growing and a land border agreement expected to be finalised soon after 35 years of negotiations, some say relations between the two are the best they have ever been.

The Vietnamese government is therefore keeping a close eye on what the media write about Vietnam-China relations - especially sensitive issues such as border or territorial claims.

"China is getting stronger so Vietnam needs to learn more [cleverly] how to co-exist with it," said senior diplomat Le Cong Phung.

Last week, the newspaper Saigon Tiep Thi published an article by well-known journalist Huy Duc on the 1979 border war on its website. The story was removed within hours.

"We have been faithful to our promise not to bring up old events for the sake of the relationship between the two countries," said Duong Danh Dy, who is now one of Vietnam's leading China experts.

The official stance has been condemned by the public as too soft and too compromising.

Internet forums and personal blogs are flooded with anti-China comments as the anniversary of the border war approaches.

In the Du Lich newspaper, a recent essay slipped past the state censors, praising the "pure patriotism and proud spirit" of the anti-Chinese protesters in Hanoi and Ho Chi Minh City.

As this nationalistic flame burns, the question of whether it will spread like wildfire depends on both governments' policies towards each other.
 
The benefits of a continued alliance between Moscow and Beijing?

http://news.bbc.co.uk/2/hi/business/7895350.stm

Russian and China sign $25bn deal 

Oil will be pumped from Siberia to China
Russia and China have signed a $25bn (£17.54bn) deal that will see Beijing supplied with oil from Siberian fields in exchange for loans to Russian firms.

China Development Bank will lend $15bn to Russian state oil firm Rosneft, and $10bn to pipeline firm Transneft.

In return Russia will supply 15 million tons - 300,000 barrels a day - of oil annually for 20 years.

China is the world's second biggest oil importer, and has looked to diversify its imports away from the Middle East.

'Lot of funds'

Chinese Premier Wen Jiabao said the deal was one of "political importance".

In recent years China has turned to Russia, Kazakhstan, and countries in Africa and South America, as it seeks new oil supply avenues.

Russia views China and Japan, another huge importer of oil, as key markets for its East Siberian oilfields.

"Rosneft and Transneft can't borrow easily, so China steps in...with a lot of funds to lend because of China's huge wealth funds," said Leo Drollas, deputy director and chief economist at the Centre for Global Energy Studies.

"They have trillions of dollars of reserves and they're saying 'we'll lend you this amount to develop the oil fields and the pipeline infrastructure needed' and it will be paid for by deliveries of oil," Mr Drollas added.
 
Just an update:

Agence France-Presse - 2/21/2009 3:54 AM GMT
Clinton calls for deeper US-China partnership
US Secretary of State Hillary Clinton has called for a deeper partnership between the United States and China, saying the world powers needed to unite to tackle the economy and climate change.

After controversially saying she would avoid the sensitive issue of human rights in her talks with China's leaders, Clinton struck a warm and engaging tone in her first meeting with Chinese Foreign Minister Yang Jiechi.

"As we start the new administration of President (Barack) Obama, we want to deepen and broaden our relationship," Clinton said in introductory remarks in front of the media.

"We believe we have established a solid foundation but there is much work to be done.

"And it is in our view imperative that the United States and China cooperate on a range of issues from the economy to global climate change to development and so much else."

Yang expressed similar sentiments, saying China was looking forward to working with the United States, but he did not go into specifics.

"We have always believed that the world's biggest developing country and biggest developed country... should and can establish a long-term relationship that enjoys sound and steady growth," Yang said.

The pair then went into private talks, with Clinton scheduled to meet President Hu Jintao and Premier Wen Jiabao later on Saturday.

Extending the diplomatic hand of friendship further, Clinton said Obama wanted to meet Hu on the sidelines of the Group of 20 leaders' summit in London in April.

"President Obama looks forward to seeing President Hu in London around the G20 summit," Clinton said.

Obama has not met Hu since becoming US president last month, although the pair spoke on the phone on January 31.


Clinton said ahead of her meetings with China's leaders that she wanted to focus on the most pressing global problems, such as the economic crisis, global warming and security concerns in places such as Pakistan and Afghanistan.

However Clinton triggered an angry reaction from groups critical of communist China's attitude towards human rights when she said she would not allow the issue to block progress on the most pressing global problems.

"Successive administrations and Chinese governments have been poised back and forth on these (rights) issues and we have to continue to press them," Clinton told reporters in Seoul just before leaving for Beijing.

"But our pressing on those issues can't interfere on the global economic crisis, the global climate change crisis and the security crisis."

Human rights groups immediately voiced disappointment at her remarks.


T. Kumar, an advocacy director at Amnesty International USA, said the global rights lobby was "shocked and extremely disappointed."

"The United States is one of the only countries that can meaningfully stand up to China on human rights issues," Kumar said, with his comments echoed by other activist groups.

North Korea was also set to be in focus after Clinton issued a warning to the isolated regime's leaders while in Seoul to stop being provocative and for it not to go ahead with a threatened missile launch.

China, regarded as North Korea's closest ally, is host of the six-nation talks that also involve the United States and are aimed at ending Pyongyang's nuclear ambitions.

Aside from meeting the Chinese leadership, Clinton will visit a General Electric power plant on Saturday that runs on natural gas, to highlight potential cooperation on clean energy.

On Sunday she will attend a church service and meet civil society leaders before flying home.

Clinton began her Asian trip, her first overseas trip as secretary of state, in Japan on Monday, then visited Indonesia and South Korea.
 
This should be stressful for the Chinese government:

http://www.cnn.com/2009/WORLD/asiapcf/02/20/china.economy.family/index.html#cnnSTCText

Road to riches ends for 20 million Chinese poor

By Tomas Etzler and Jaime FlorCruz
CNN

JING SHI, China (CNN) -- Tang Hui and his family prospered as migrant workers during China's economic boom, earning $10,000 a year: enough to build a house, send a cousin to school and pay for his grandmother's medical bills.

Tang Hui lost his manufacturing job in October just days after getting married.

But those good days are over. The family's cash earnings have evaporated, snatched away by a manufacturing crash cascading across China caused by falling global demand for its goods.

The nine people in the Tang family are facing an income of zero; their best hope to survive is to grow rice and raise pigs at home in the Sichuan Mountains.

"Farming is really hard. It needs a lot of hard labor," says 22-year-old Tang Hui, who lost his manufacturing job four months ago. "None of the young people want to farm nowadays. The income is extremely low."

A Chinese proverb says: "Going on the road to Sichuan is as hard as going to heaven." Isolated and mountainous, Sichuan is China's third most populous province; 60 percent of its 87 million residents are poor and live in the countryside, authorities say.

It became the nation's biggest source of the 130 million farmers who migrated into Chinese cities, especially in the south, to provide cheap labor for factories that churned out products, mainly for export to the United States. The province was also rocked last May by a massive earthquake that killed tens of thousands of people.

Five years ago, Tang Hui left for southern Guangdong province to work in a factory producing handbags and backpacks. He had to drop out of high school because his family was so poor.

There, he earned enough to stash away savings for his wedding. But last October, just days after he got married, his factory abruptly closed down. It was receiving no more orders from its American clients.

"I hope the government can help us during this crisis," he says. "I hope it won't be like this for too long. Now, there is not even enough money to celebrate the holidays."

At least he was able to spend the most important Chinese holiday of the year, the Spring Festival, at home in Qingbadong village.

The road uphill to the village was muddy and slippery. The winter rice fields were brown; the slopes were covered in winter fog. "In two, three months," Tang Hui says, "everything will be green and blooming."

And the festive mood -- the first time in six years the whole family celebrated the holiday together -- was short-lived.

Reality is never far away. Many of the villagers are unemployed. The Tang's next-door neighbors, a married couple, lost their jobs in a Guangdong shoe factory after working there for 16 years.

"A few months without jobs would be disastrous for us," Tang Hui frets.

Before they ventured out as migrants, the Tangs lived in a wooden shack. Now, they live in a two-story brick house, with 10 rooms, concrete floors, an open fire pit for cooking. Still, it has no running water and one outdoor latrine.

In the past months, about 70,000 factories nationwide have closed. Beijing official Chen Xiwen estimates about 20 million migrant workers have lost jobs. Tens of thousands of villages in the countryside depend on migrant workers' income.

China analysts say the spike in unemployment has caught China off guard. "The central government is now telling local governments to provide help and job training, re-employment," says Wenran Jiang, a political science professor and China expert at Canada's University of Alberta.

Vice Minister of Commerce Jiang Zengwei says China is offering "a one-off subsidy of 100-150 yuan ($15 to $22) to 74 million low-income people ... for temporary relief." Still, it will take some time before such measures make a difference.

Some analysts have suggested that a "rural revolution" is imminent amid the economic turmoil. However, Wenran Jiang says such talk is premature. But he also says the central government must do more in the coming months.

"Many migrant workers have lived a very hard and simple life," he says. "They have some savings for a rainy day like this, so in the short-term they may be able to cope -- but if eight or 12 months later things continue to deteriorate, it could turn volatile."

Most farmers like the Tangs do not get social security. So villagers who lost factory jobs have few choices except go back to farming. But it is not easy.

Farming feeds people but brings little cash. Millions of the jobless are second-generation migrant workers, young people who grew up in cities.

"It would be very hard," says Tang Hui. "I have never farmed. I don't know how to do it."

To cope, China is creating training programs in the countryside. One of the pilot centers is in Chongqing municipality. Some 30,000 workers have so far taken classes in farming, farming machinery repairs, tailoring and other vocational skills. The trainees got a one-time incentive of about $45.

But the Tangs have never heard about such programs. When asked about the central government's plan to invest billions of dollars in countryside infrastructure as a part of a huge stimulus package, they expressed anger.

"The central government has good ideas and intentions, but the local officials often ignore them. The road in our village was built by the local government but we had to pay for it. Every family had to pay $100 or more. We get nothing from the government," says Hui's father, Tang Zhong Min.

In the evening, the family huddles around an open wood stove. The stove and a small portable electric heater are the only sources of warmth during the cold winter nights. A flickering fluorescent lightbulb barely lights the room.

Tang Hui's wife, Li Xiaochun, is 21 years old. She used to cut leather in a textile factory, and will soon head back to Guangdong with her husband to search for work.

"I think to be at home is better. I didn't get used to living outside. I didn't get used to Guangdong. It is better at home," she says.

Tang Hui then interrupts. "Of course, I also like it at home, but it is better in other places. Coming home is only good during the Spring Festival," he says.

Despite the uncertainty, they remain optimistic.

"We are young. There must be some factories still open out there. We should be OK to go out and do something," Li Xiaochun says.

But Tang Hui's mother is not so convinced. "Of course I am worried. How can they live without jobs, with no money so far away from home?" asks 46-year-old Hu Xiaoju. "But I will definitely go, too."

For the Tangs and millions of others in China, the road to Guangdong and employment may prove even more difficult then the proverbial road to Sichuan.
 
Another real estate bubble pops. The southern Chinese coast is probably in even worse shape after a decade of frantic building...



Beijing's Olympic building boom becomes a bust

By Barbara Demick
February 22, 2009

Reporting from Beijing -- "Empty," says Jack Rodman, an expert in distressed real estate, as he points from the window of his 40th-floor office toward a silver-skinned prism rising out of the Beijing skyline.

"Beautiful building, but not a single tenant.

"Completely empty.

"Empty."

So goes the refrain as his finger skips from building to building, each flashier than the next, and few of them more than barely occupied.

Beijing went through a building boom before the 2008 Summer Olympics that filled a staid communist capital with angular architectural feats that grace the covers of glossy design magazines.

Now, six months after the Games ended, the city continues to dazzle by night, with neon and floodlights dancing across the skyline. By day, though, it is obvious that many are "see-through" buildings, to use the term coined during the Texas real estate bust of the 1980s.

By Rodman's calculations, 500 million square feet of commercial real estate has been developed in Beijing since 2006, more than all the office space in Manhattan. And that doesn't include huge projects developed by the government. He says 100 million square feet of office space is vacant -- a 14-year supply if it filled up at the same rate as in the best years, 2004 through '06, when about 7 million square feet a year was leased.

"The scale of development was unprecedented anywhere in the world," said Rodman, a Los Angeles native who lives in Beijing, running a firm called Global Distressed Solutions. "It defied logic. It just doesn't make sense."

Construction cranes jut into the skyline, but increasingly they are fixed in place, awaiting fresh financing before work resumes.

Boarded fences advertise coming attractions -- "an iconic landmark" or "international wonderland" -- that are in varying states of half-completion. A retail strip in one development advertised as "La Vibrant shopping street" is empty.

In a country where protests are rare, migrant workers stand in front of several construction projects, voicing their grievances.

"Our boss ran away with the money and he is nowhere to be found," said Li Zirong, a migrant worker from Shaanxi province, who was a supervisor on a stunning building with windows shaped like portholes.

What makes this boom-and-bust cycle different from those in the West is that there is no private ownership of land in China, making local governments de facto partners in the real estate industry, which earn huge fees from leasing and transferring land.

Huang Yasheng, an economist at the Massachusetts Institute of Technology, traces the blame for the bust to the Chinese Communist Party and its reluctance to allow a true market economy.

"The lack of land reform fed into the real estate bubble and now it's coming back to haunt them," said Huang, author of "Capitalism With Chinese Characteristics," published last year. "There should have been more checks and balances on the ability of the government to acquire land."

The government spent $43 billion for the Olympics, nearly three times as much as any other host city. But many of the venues proved too big, too expensive and more photogenic than practical.

The National Stadium, known as the Bird's Nest, has only one event scheduled for this year: a performance of the opera "Turandot" on Aug. 8, the one-year anniversary of the Olympic opening ceremony. China's leading soccer club backed out of a deal to play there, saying it would be an embarrassment to use a 91,000-seat stadium for games that ordinarily attract only 10,000 spectators.

The venue, which costs $9 million a year to maintain, is expected to be turned into a shopping mall in several years, its owners announced last month.

A baseball stadium that opened last spring with an exhibition game between the Dodgers and the San Diego Padres, is being demolished. Its owner says it also will use the land for a shopping mall.

Among the major Olympic venues, only the National Aquatics Center, nicknamed the Water Cube, has had a productive afterlife. It's used for sound-and-light shows, with dancing fountains in the swimming lanes where Michael Phelps won his gold medals.

All around the Olympic complex, there are cavernous empty buildings, such as the main press center for the Games, that still await tenants.

A shopping arcade that stretches for a quarter of a mile across the street from the complex is empty, the storefronts papered over with signs reading "famous stores corridor."

"They wanted to build 'the world's biggest this' and 'the world's biggest that,' but these buildings have almost zero long-term economic benefit," economist Huang said.

Moreover, the makeover of Beijing for the Olympics led to an estimated 1.5 million residents being evicted from their homes, according to the Geneva-based Center on Housing Rights and Evictions.

In this vibrant capital city of 17 million, there is an insatiable demand for housing, yet prices remain far out of reach of most residents. American-style free-standing homes are being advertised for more than $1 million in gated communities with names like Versailles, Provence, Arcadia and Riviera. Within the Fourth Ring Road, a beltway that defines the central part of the city, two- and three-bedroom apartments are offered for $800,000 in compounds named Central Park and Riverside.

"These are like New York prices, but we are Chinese. We don't have that kind of money," said Zhang Huizhan, a 55-year-old businessman who owns a Chinese furniture factory. He has been looking for five years for an apartment for him and his wife within their budget of $150,000.

The average salary in Beijing is less than $6,000 a year.

Louis Kuijs, a senior economist at the World Bank in Beijing, said a lack of government supervision of the real estate industry tempted developers to build only for the luxury market and to ignore the mass market.

"If you think demand is endless for anything you build and you have just 200 square meters of land, you will build high-end apartments to make the highest profit," Kuijs said.

To its credit, the government recognized in 2007 that the real estate market was headed toward a bubble, economists say. In an attempt to make real estate more affordable, restrictions were introduced on ownership of second homes and on foreign home buyers. But the measures came too late, accelerating the crash of an already weakening market.

The Beijing Municipal Bureau of Statistics reported this month that housing sales in the city dropped 40% last year. Chinese economists have predicted that housing prices will drop 15% to 20% in Beijing this year. Shanghai has experienced a similar decline.

"You can look at this perhaps as a healthy correction in the market," Kuijs said.

In the longer term, he said, "China's urbanization and overall development is going to lead to a very large additional demand for housing in the city."

Before that happens, the situation could get worse. Most of the real estate has been financed by Chinese banks, which have avoided writing down the loans. Eventually, they will be forced to, and that probably will have a ripple effect throughout the economy.

"At the end, somebody is going to have to pay the piper," real estate expert Rodman said.

barbara.demick@latimes.com

Nicole Liu and Eliot Gao of The Times' Beijing Bureau contributed to this report.
 
Obviously the PRC covets the ability to show the flag with its own warships worldwide, because it is all too aware of its past history when Qing-era China faced a series of humiliations, like the infamous unequal treaties forced upon them as what they saw as "Gunboat diplomacy" of the Western colonial powers from the 1800s to the 1900s.

HONG KONG, Feb. 27 (UPI) -- In the future, wherever Chinese merchant ships go, that area may be taken as China's national interest frontier and the trace of the "Chinese Aegis" class DDG may appear. Moreover, this theory gives the People's Republic of China a more convincing rationale for building its own aircraft carriers.

Clearly, the conventional Western analysis that the People's Liberation Army navy is following a progressive defense path by trying to first secure the waters within the "first island chain" -- the stretch of islands running parallel to China's coast, including Japan's Ryukyu Islands, Taiwan and the northern Philippines -- and then proceeding to the "second island chain" -- bordered by Guam, northern Australia and Indonesia -- is out of date.

Which island chain includes the coastline of Somalia? China's concept of a national interest frontier is not just a theoretical discussion. It is founded on the actual demands of combat operations. The People's Liberation Army Daily carried another article on Dec. 2, 2008, titled "Abandoning the Doctrine of Peaceful Military Build-up and Preparing for Military Confrontation That May Break Out Anytime." This caught the attention of Western military observers.

The belligerent wording in this treatise, at a time when tensions in the Taiwan Strait have greatly eased, has confused and worried analysts. Why did the author openly advocate preparations for military conflict at such a moment? Conflict with whom?

"Unless China is in possession of a credible core capability to win a regional war in the information era, China will not have the fundamental ability to accomplish other military missions," the article warned. "For China, although the possibility of a large-scale foreign invasion can be excluded, the danger of involvement in a regional war, military conflict and the interference of a superior opponent has never decreased," it said.

From the perspective of Chinese military strategists, China no longer has any national interest frontier, because all corners of the planet have established ties with China through trade. Chinese merchant ships are already navigating the waters of the four great oceans and have reached all parts of the five continents. This is an advantage that the Soviet Union did not have in earlier years.

In Africa, China is already the continent's third-largest trading partner, after the United States and France. In 2006 China's trade with Africa broke the $50 billion mark. It is critically important that Africa's natural resources provide a lifeline to China's economy.

China has been providing large quantities of Chinese-made weapons and military equipment to many countries in Africa,
as this writer has described in earlier articles published by United Press International. Many of these were traded for oil.

http://www.upi.com/Security_Industry/2009/02/27/Chinas_navy_to_protect_nations_trade_all_around_the_world/UPI-84621235764864/
 
Beijing continues to express its displeasure.

China: U.S. Shouldn't Sell Arms to Taiwan

By DAN MARTIN, AGENCE FRANCE-PRESSE
Published: 27 Feb 10:57 EST (15:57 GMT) 

BEIJING - China told the United States on Feb. 27 that U.S. arms sales to Taiwan remained a major obstacle to easing military tensions, as the world powers resumed defense contact here after a five-month suspension.

The start of the talks had raised hopes of greater cooperation on security issues and an easing of enduring tensions, after China cut military exchanges in anger over the proposed $6.5 billion U.S. arms package to Taiwan.

China's offer to once again hold the annual talks was widely seen as an olive branch extended to the new administration of U.S. President Barack Obama.

But the head of the Chinese delegation signaled a tough approach in his opening remarks, emphasizing that there were problems between the two sides and it was up to the United States to fix them.

"China-U.S. military relations remain in a difficult period. We expect the U.S. side to take concrete measures for the resumption and development of our military ties," Qian Lihua, co-chair of the talks and defence ministry press director, said in comments quoted by the state-run Xinhua news agency.


Qian emphasised that the two days of talks in Beijing did not mean that the suspended military exchanges - such as more senior-level contacts and disaster relief co-ordination - would automatically resume.

"Frankly speaking, it will take a long time to restore our military exchanges as not a single obstacle in military ties has been removed so far," he said, specifically mentioning arms sales to Taiwan.

The situation of Taiwan, a democratically ruled island claimed by China, has long been one of the most sensitive issues in Sino-U.S. relations.

The planned U.S. arms package that derailed military exchanges could still go ahead, and if it is carried out, Taiwan would receive advanced weaponry, including 30 Apache attack helicopters and 330 Patriot missiles.

The Pentagon has also proposed selling Taiwan 30 AH-64 Apache Longbow attack helicopters and 1,000 Hellfire missiles to beef up its anti-armor capabilities, and for close air support of its ground forces.


The helicopters are worth up to $2.5 billion, according to the Defense Security Cooperation Agency.

Taiwan and the mainland have been governed separately since they split in 1949 at the end of a civil war, but Beijing sees the island as part of its territory that is awaiting reunification, by force if necessary.

Both sides have stationed vast weaponry on their own side of the Taiwan Strait in the event of war between them.

Qian's comments appeared to douse hopes that Taiwan would be less of an obstacle to Sino-U.S. ties now that the island is ruled by a relatively China-friendly president less likely than his predecessor to push for independence.

Deputy Assistant Secretary of Defense David Sedney, who headed the U.S. delegation, told Qian he was looking to deepen dialogue between the sides, according to Xinhua.

"We must increase communications to reduce the chance of strategic misunderstanding," Xinhua quoted Sedney as saying.

Sino-U.S. military relations remain marked by deep tensions over other issues aside from Taiwan.

Mistrust has grown as China has poured money into modernizing its armed forces in recent years, fueling concerns in the United States that it plans to project its power more boldly in the region.

The talks are taking place just days before China unveils its military budget for 2009, likely announcing yet another large increase in defense spending.

The United States and its allies have repeatedly accused China of not being transparent with its military spending.

Aside from Xinhua, there was no foreign media access to the talks. But U.S. officials were to hold a press round table Feb. 28.

Sedney will also meet with Ma Xiaotian, deputy chief of general staff of the Chinese army, before leaving for South Korea, Xinhua said.

The talks, which began in 1997, were last held in February 2008.
 
It seems that China will fare better than others in the current recession, at least according to PRC leaders.

From the AFP:

Agence France-Presse - 3/5/2009 7:05 AM GMT

Wen declares China can ride out economic storm

Premier Wen Jiabao said Thursday that China was facing unprecedented challenges from the global crisis but he was confident the country would still achieve growth of about eight percent this year.

In his annual "state of the nation" address to open parliament, Wen gave the most detailed blueprint yet of a four-trillion-yuan (585-billion-dollar) stimulus plan aimed at steering China through the downturn.

The premier acknowledged the Chinese economy, the third-biggest in the world, was hurting and the climate was not expected to get better soon in the face of a global recession that has weakened demand for Chinese goods.

"We face unprecedented difficulties and challenges. The global financial crisis continues to spread and get worse," Wen told the 3,000 delegates gathered for the Communist Party's showpiece political event of the year.


"Demand continues to shrink on international markets. The trend for global deflation is obvious and trade protectionism is resurgent," he told the lawmakers, who will be gathered for nine days.

But Wen said China's economy was still expected to grow by about 8.0 percent this year -- a rate officials have stressed is needed to prevent social unrest triggered by widescale unemployment.

"We are fully confident that we will overcome difficulties and challenges, and we have the conditions and ability to do so," Wen said.

China's economic growth dipped to 6.8 percent in the final quarter of last year, worrying figures for a government long used to double-digit expansions and marking a dramatic slowdown from 13.0 percent growth in all of 2007.

The slowdown in China's economy, which is reliant on exports to developed economies that are now in recession, has made 20 million rural migrant workers jobless in recent months amid countless factory closures.

China typically sees tens of thousands of protests each year even in economic boom times, and rising unemployment has fuelled fears among the communist leadership of social unrest.

Wen also acknowledged problems that could fuel tensions and had been exacerbated by the crisis, such as an inadequate social safety net and health care system, as well as a wealth gap and corruption.

But he said the 8.0-percent target was achievable and would provide a sound platform for creating millions of jobs and soothing social tensions.


"Maintaining a certain growth rate for the economy is essential for expanding employment for both urban and rural residents, increasing people's incomes and ensuring social stability," he said.

Wen's assessment was more optimistic than that of the International Monetary Fund, which has forecast economic growth for China this year of 6.7 percent.

Highlighting unrest concerns, security was tight around the Great Hall of the People, where parliament was sitting, and dissidents told AFP that authorities had placed new restrictions on their movements.

"There are police stationed outside 24 hours and I can't go anywhere unless I travel in a police car," dissident Gao Hongming told AFP by phone from his Beijing home.

Adding to the sense of unease are tensions surrounding China's 58-year rule of Tibet as a sensitive 50th anniversary of a failed uprising falls on March 10.

Wen gave details of the wide-ranging plan for the four-trillion-yuan stimulus package, which is to be spent over two years and contribute to a record budget deficit of 950 billion yuan (140 billion dollars) in 2009.

This included plans to boost domestic consumption, raise incomes for the nation's roughly 800 million people living in the countryside and give support for the steel, auto and other industries.

Spending to improve the social safety net will increase 17.6 percent this year to 293 billion yuan, Wen said.


The budget for medical and health care will rise 38.2 percent to 118.06 billion yuan, according to budget papers, with Wen pledging that health insurance would cover 90 percent of the population in three years.
 
If their factories receive fewer orders then the PRC will either pay people to do nothing or lay off workers.
 
Seems the Dalai Lama and Beijing will never see eye-to-eye.

Agence France-Presse - 3/10/2009 9:18 PM GMT
Dalai Lama says Chinese-ruled Tibet 'hell on earth'
Tibet's exiled spiritual leader the Dalai Lama Tuesday accused China of having brought "hell on earth" to his homeland, in a speech on the sensitive 50th anniversary of a failed uprising.

As Chinese authorities deployed a massive security force across the Tibetan plateau to prevent protests, he demanded "legitimate and meaningful autonomy" for the region in a speech at his exile base in northern India.

Residents of Tibet's capital, Lhasa, reported no protests Tuesday morning but -- as in other Tibetan areas of China -- it appeared to be partly because armed soldiers and police were patrolling the streets in a show of force.

The state Xinhua news agency reported late Tuesday that "the holy city of Lhasa was quiet and peaceful" amid the security clampdown.

The Dalai Lama said China had brought "untold suffering and destruction" to the Himalayan region in a wave of repressive campaigns since the uprising on March 10, 1959 that forced him to flee.

"These thrust Tibetans into such depths of suffering and hardship that they literally experienced hell on earth," he said, adding they caused the deaths of "hundreds of thousands" of his people.

"Even today Tibetans in Tibet live in constant fear," he said. "Their religion, culture, language, identity are near extinction. The Tibetan people are regarded like criminals, deserving to be put to death."

The anniversary of the failed uprising is being marked by vigils and protests in Dharamshala, as well as in places as far afield as Kathmandu and Canberra.

In Washington, a US lawmaker introduced a resolution to Congress that would urge China to end its "repression" of the Himalayan region.

"The situation in Tibet challenges the conscience of the world," House Speaker Nancy Pelosi, a longtime supporter of Tibet, told Tibetans and their supporters inside the US Capitol.

In Beijing, the foreign ministry called for the measure to be withdrawn and dismissed the Dalai Lama's comments as "lies."

"We believe the US Congress resolution proposed by a few anti-China representatives disregards the history and reality of Tibet," foreign ministry spokesman Ma Zhaoxu told reporters.

"The Dalai Lama clique is confusing right and wrong. They are spreading rumours. The democratic reforms (under Chinese rule) are the widest and most profound reforms in Tibetan history," Ma said.

Late Tuesday, the state Xinhua news agency released two commentaries lambasting the Dalai Lama, saying his comments showed he was "apparently at his wits' ends" and accused him of talking "some gibberish".

"This 'hell on earth' is precisely 'paradise on earth' for the ordinary Tibetans," one of the commentaries said.

China has ruled Tibet since 1951 after sending in troops to "liberate" the region the previous year.

However, the 73-year-old Dalai Lama still retains enormous support among the roughly six million devoutly Buddhist Tibetans who live in China, despite Beijing's efforts to demonise him.

In his speech, the Dalai Lama voiced frustration that repeated rounds of talks between the India-based Tibetan government-in-exile and Chinese officials have yielded no progress.

"And quite apart from the current process of Sino-Tibetan dialogue having achieved no concrete result, there has been a brutal crackdown on the Tibetan protests that shook the whole of Tibet since March last year," he said in his speech, broadcast via the Internet to exiles and supporters worldwide.

The Dalai Lama has resisted pressure to radicalise his campaign against China, sticking to his "middle way" policy of non-violence.

"We Tibetans are looking for legitimate and meaningful autonomy, an arrangement that would enable Tibetans to live within the framework of the People's Republic of China," he said.

Peaceful protests led by Buddhist monks in Lhasa on last year's anniversary of the 1959 uprising erupted four days later into anti-Chinese rioting that swept into other parts of western China with Tibetan populations.

Tibetan exiles say more than 200 people died when Chinese security forces clamped down following the unrest. Authorities deny this, saying that "rioters" were responsible for 21 deaths.

Foreign tourists are banned from visiting Tibet in March, travel agencies have told AFP, and witnesses there reported strict security.

Last year's unrest deeply angered China's leaders as they prepared for the Beijing Olympics in August, and they responded with a huge military crackdown across Tibet that triggered condemnation around the world.
 
Perhaps the USNS Impeccable might run into this ship as well.

China's largest fishery patrol ship starts mission
www.chinaview.cn 2009-03-11 21:34:56

http://news.xinhuanet.com/english/2009-03/11/content_10993996.htm

GUANGZHOU, March 11 (Xinhua) -- China's largest fishery patrol ship has started its way to the Xisha Islands to enhance the fishery protection and maritime surveillance efforts in the South China Sea.

The ship, China Yuzheng 311, sailed at midday Tuesday from Guangzhou, capital of Guangdong Province.

Yang Jian, a Ministry of Agriculture engineer, said given the country's heavy task of maritime rights and interests protection, the vessel would reinforce the fishery administration in the South China Sea.

China Yuzheng 311 was converted from a rescue vessel of Chinese navy. It is 113.5 meters long and 15.5 meters wide and at 4,450 tonnes.

The patrol ship will be in charge of maritime patrol in China's exclusive economic zones, navigation protection and fishery emergencies.
 
Back
Top