Posts tagged ‘foreign trade’

Thursday, October 20, 2016

Duterte’s China Visit: We need your Help, Son of a Whore

Guanchazhe quotes “German media” (read: Deutsche Welle‘s (DW) Mandarin website) as reporting that Rodrigo Duterte, president of the Philippines, wants to gain distance from America and become close to China (疏美亲中). The second part quotes extensively from the DW article (with credits), but leaves out the more pointed remarks (“this president”, “closely observing”).

Deutsche Welle, on Wednesday:

Philippines president Duterte said on Wednesday (October 19) that it was time to say Good-bye to America. He told Filipinos living in Beijing that an alliance with America that had lasted for many years had brought the Philippines extremely little profit.


Discussing American criticism of how he had drug dealers executed extrajudicially, Duterte said, “I’m really angry. If you do that, you are insulting the people of a country.” He said that just as he didn’t want American interference, he didn’t want American military exercises. The reason for you to stay in our country is for your own interest, therefore, it’s time to say good-bye, friend,” he ostensibly shouted into Washington D.C.’s direction.


“I won’t go to America again, I would only be insulted there,” said Duterte, as he once again denounced US president Obama as “raised by a whore”.


This Philippines president also said he had enough of foreign-policies arranged by the West and said that “in the past, they made us stay distant from China, but that wasn’t our own wish, and I will open a new road.”


Since the beginning of his presidency in June, Philippine foreign policy has taken a big turn, contrasting with previous president Aquino III policies, distancing the Philippines from Washington, the old ally, and expressing goodwill to China.


Duterte, who is currently in China, has praised the country. According to AFP, he said on Wednesday that China was “good”, and hasn’t invaded any place in our country for generations”; thus hinting at America’s colonial history in the Philippines. “During the Cold War, China was described as the bad guy. At that time, our schoolbooks were full of Western propaganda.”

目前身处中国的杜特尔特对中国大加赞赏。据法新社报道,他在周三说中国”不错”,”世世代代以来,从没有侵略过我们国家的任何地方”,影射美国对菲律宾的殖民历史。 “在冷战时期,中国被描述成坏人。那些年里,我们的教科书中都是西方制造的政治宣传”。

China is closely observing Manila’s expressions of goodwill, of course. Foreign-ministry spokesperson Hua Chunying said in Wednesday’s regular press conference that China “expressed admiration” for Dutertes strikes against drug criminality”, and said that “China supports Dutertes leadership in the construction of his country by the Philippine people, their efforts for economic development, and we are willing to actively participate in economic and social construction. China is willing to cooperate with the Philippines in trade, production capacity, infrastructure building and in other fields.”


There are doubts within the Philippines however, regarding Dutertes position towards China. Richard Heydarian, political scientist of De La Salle University in Manila, told AP that the Philippines’ mainstream media felt that “it can’t be right to be show that much respect for a country that invaded Philippine territory.”

不过,杜特尔特的对华立场在菲律宾国内受到了一些质疑。马尼拉德拉萨大学的政治学教授海德林(Richard Heydarian)对美联社说,菲律宾的主流媒体认为,”对于这个侵占菲律宾领土的国家如此恭敬,这让人感觉不对”。

The initiator of the Hague arbitration case concerning the South China Sea, former foreign minister Albert del Rosario, said that the Philippine’s foreign policy shouldn’t be contemptuous of America as a long-standing ally, or replace it with another country (China).

南海海牙仲裁案的发起者、前菲律宾外长罗萨里奥(Albert del Rosario)也表示,菲律宾的外交政策不应该唾弃长期的盟友美国而取悦另外一个国家(中国)。

That, however, doesn’t appear to be on Duterte’s mind. In a CCTV interview, he said that he wanted to extend a fraternal and friendly hand, ask for Chinese help, and, looking right into the camera, “frankly said, we need your help.”


The DW article comes across as slightly sardonic. Guanchazhe, obviously, ignores that. It does, however, quote “foreign media” as reporting doubts from within the Philippines. Guanchazhe also seeks and finds an answer to such voices of doubts, delivered by foreign-ministry spokesperson Hua Chunying, on the same press conference as quoted further up.

Some reporters at the foreign ministry’s regular press conference on October 19 asked: Western media follow Duterte’s China visit closely, but there are voices among them who “pour cold water” on the enthusiasm. How does the foreign ministry comment on this?

Foreign-ministry spokesperson Hua Chunying said that the Chinese and Philippine people were all very happy and full of hope concerning Duterte’s visit, but in fact, there were also people with anxious, disappointed or complex feelings. The return of Sino-Philippines relations to the tracks of a more healthy and stable development was, however, good news, both for China and the Philippines, and for regional peace and stability. I believe that provided that they hope for peaceful and stable development of the Asia-Pacific region, people will welcome this.



Guanchazhe quotes Mainila Commercial Times as reporting that China Railway Group Ltd was going to invest three billion USD in Philippines infrastructures in the future.

The Guanchazhe article’s effect on the readership, if uncensored, is handsome. The “overjoyed” button was clicked 321 times by 07:15 UTC, 41 clicks went to the button “timely”, and only five clicks hit the “absurd” or “sad” button.

We can sign a contract with Old Du, for step-by-step investment, thus ensuring Chinese interests, but also the stability of Old Du’s political power, how about that,


suggests The Little Venerable, and Clear Spring from a Rock serenely declares:

If you say good-bye to America or not doesn’t matter. what matters is an independent and self-determined foreign policy, without being used by others.


According to Radio Japan‘s Mandarin service, Duterte meets Chinese party and state chairman Xi Jinping on Thursday.

Carrie Gracie, the BBC’s China editor, suggested two days ago that

a clear-cut courtroom win against China, coming just after Mr Duterte took up office, has created opportunities for a new approach. China cannot take that legal victory away. And meanwhile in the nearly four years since the Philippines began its legal case, it has suffered economically as Beijing has frozen Manila out of the benefits of Chinese wealth. China has actively discouraged tourists, investors and importers from looking to the Philippines. With the legal card in his back pocket, Mr Duterte wants that economic chill to end. He sees no reason why the Philippines shouldn’t, just like most other countries in the region, have its cake and eat it – enjoy the economic benefits of China’s growth at the same time as sheltering under the US security umbrella.



Inherent Territory, May 13, 2012



Indonesia detains Taiwan vessel, RTI, Oct 20, 2016


Monday, September 19, 2016

Dalai Lama: there’s a Chinese Constitution

Whereever I go, I do not wish to create trouble for politicians in charge. No worries. Actually, the purpose of my visits isn’t to meet politicians in charge, but to meet the public, or people. I have nothing to tell to the officials. I prefer to talk about happiness.

Should I stay or shoud I go?

Why, surely you aren’t here to stirr trouble?

That’s how French daily Le Monde quoted the Dalai Lama, on September 10. Tibet’s spiritual leader did, however, have something to say to the Chinese leadership:

We don’t seek independence, we demand all the rights that are written down in the Chinese constitution.

It’s funny to be reminded that there is actually such a thing in China – a constitution.

According to Voice of Tibet (VoT), a Norway-based radio station and website, the custodians of the Chinese constitution were kept busy by the Dalai Lama’s visit to France, from September 12 to 18:

His Holiness’, the Dalai Lama’s visit to France received close attention from China. A joint photo with hotel staff and the Dalai Lama, posted by a Hyatt Group Hotel, immediately met with resistance from Chinese netizens who demanded that the hotel remove the online post. Also, students at Sciences Po protested against the recent cancellation of a speech by his Holiness and emphasized “the need to respect free speech”.


Official receptions for the Dalai Lama on overseas trips from his exile in India have increasingly vexed the Chinese government, writes Radio France Internationale (RFI English service). But that is hardly accurate – efforts to isolate Tibet’s paramount monk have been part of Beijing’s policy ever since the beginning of his exile in India. And depending on China’s clout overseas, such efforts are sometimes highly successful.

The Dalai Lama didn’t get a visa to visit South Africa in 2009. A few weeks later, South African foreign minister Maite Nkoana-Mashabane said that the Dalai Lama could visit South Africa anytime he wanted.

Anytime, except October 2014, of course. (Maite Nkoana-Mashabane was still South Africa’s foreign minister.)

As for the protests against the Hyatt hotel welcome for the Dalai Lama in Paris, VoT writes:

There were Chinese netizens unaware of the facts, who used propaganda content that had been directed against the Dalai Lama by the Chinese Communist Party for decades. They demanded that the removal of the online photo and said that if Hyatt wanted to continue business in China, they should not actively be in touch with this “splittist element”.


Today, on September 17, [the hotel] removed the text and photo from its Facebook page.


Apparently, the Collège des Bernadins wasn’t quite that afraid of Beijing. On September 14, they hosted a meeting on inter-religious dialogue with the Dalai Lama.

(Maybe they’ve got a nice auberge for him, too, next time he visits France. He could be in need of one.)


Updates / Related

» China threats after EU Parliament visit, Reuters, Sep 19, 2016

Thursday, August 11, 2016

Greek Cargo Ship collides with Chinese Fishing Boat near Senkakus

A Chinese fishing boat and a Greek cargo ship collided Thursday morning in high seas near Japan’s Senkaku Islands in the East China Sea,

reports Radio Japan:

A Japanese patrol boat rescued six of the fishing boat crewmembers, and is searching for the missing eight. The boat is believed to have sunk. No one on board the cargo ship was hurt.

Thursday, August 11, 2016

Bank of China: Brexit Risks and Opportunities

The following is an article initially published by Pengpai News (澎湃新闻), an internet news portal apparently operated by Oriental Morning Post (or Dongfang Morning Post),  a paper from Shanghai. According to Radio Free Asia (RFA), the paper’s then director Lu Yan (陆炎) and  deputy editor-in-chief Sun Jian (孙鉴) were removed from their posts in summer 2012. According to the Committee to Protect Journalists (CPJ), Yu Zhengsheng (俞正声), Shanghai CCP secretary at the time, had been “unhappy” with Oriental’s stories. Sun Jian apparently re-emerged later, as the name was mentioned as the concurrent director of  Oriental Morning Post’s and Pengpai News’ economy and finance news centers, in a “People’s Daily” article published in 2015, praising the innovative practice at integrating the paper and its internet platform.

Either way, the news portal’s article about the BoC’s meetings with overseas financial administration dignitaries apparently appealed to the Communist central bankers – it was republished on the BoC’s website, two days after its original publication. Here goes.

The last meeting of G-20 finance ministers and central bank governors before the G-20 summit in Hangzhou was held in Chengdu, with [Chinese] central bank governor Zhou Xiaochuan opening intensive meetings with high monetary officials from a number of countries.


According to the People’s Bank of China’s official website, Zhou Xiaochuan, on July 23, met with American treasury secretary Jack Lew, Britain’s newly-appointed chancellor of the exchequer Philip Hammond, Argentine finance minister Alfonso Prat-Gay and Argentine central bank governor Federico Sturzenegger.
That said, this kind of officially issued information is generally rather simple. For example, at the meeting with the British finance minister, the two sides exchanged views on Britain’s withdrawal from the EU, the strengthening of Sino-British financial cooperation and other issues; at the meeting with the US finance minister, the two sides mainly exchanged views on the global financial markets’ situation, about the Chinese and American economies and finances, and policy coordination under the G-20 framework; and at the meeting with the two high Argentine officials, the two sides exchanged views on the international economic and financial situation, the macroeconomic Chinese and Argentine situations, the strengthening of Sino-Argentine financial cooperation and other issues.


Currently, Britain’s withdrawal from the EU is undoubtedly a hot topic, but the central bank didn’t disclose any details. Still, the British finance minister’s time’s itinerary suggests that while withdrawing from the EU, they didn’t forget to to sell themselves.


According to the Bank of China, the “Sino-British Financial Services Round Table Meeting”, organized by the British embassy and co-hosted by the Bank of China, was held in the BoC’s head office’s mansion in Beijing, on July 22. British chancellor of the exchequer Philip Hammond, British deputy chancellor of the exchequer [Mark Bowen?], British Ambassador to China Dame Barbara Woodward and other British government representatives, as well as People’s Bank, the CBRC, the State Administration of Foreign Exchange, and big financial organisations and more than 40 high-ranking officials were guests at this meeting.


Hammond said at the meeting that the British economic fundamentals after the “Brexit” referendum remained fine, that Britain would continue to play an important role in the international arena, that British commerce, financial services and investment would, just as in the past, be open and competitive, and the British government would attach yet more attention to cooperation with China in the financial field.


Chairman of the BoC board Tian Guoli said that Britain’s position in the fields of international politics, economics, and finance was highly influential. As far as Chinese and British investors were concerned, there were interdependent “risks” and “opportunities” in the “Brexit”, with both challenges and opportunities. To safeguard Chinese and British investors’ interests, there should be a continuation of promoting the two countries’ economic and trade development, global financial stability, the suggested common promotion of the building of “one belt, one road”, active participation in China’s supply-side structural reforms, the strengthening of financial cooperation, and the acceleraton of building London as an offshore center for the RMB.


At the meeting, participants discussed the two topics of “Seen from the perspective of the financial industry, Britain after the ‘Brexit’ remains a good destination for overseas investment” and “The important role of Britain as a good partner in the development and opening of the Chinese financial industry”.




» Whose Gateway, Nov 24, 2015
» 媒体融合中, “People’s Daily” online, Sept 17, 2015
» Locomotion, Finance, Energy, July 27, 2014


» Propaganda 2.0, The Economist, Dec 13, 2014

Monday, May 30, 2016

Neighborhood: No Vietnamese Communist Party without the Chinese Communist Party?

U.S. President Barack Obama visited Vietnam from May 22 to 25. In news coverage, TTP and the complete lifting of an arms embargo that had been in place since 1984, topped the American-Vietnamese agenda.

On May 23, Xinhua‘s English-language website quoted a Russian official, Anatoly Punchuk, as saying that the lifting of a decades-old U.S. arms embargo on Vietnam wouldn’t affect Russia’s weapons sales to Vietnam.

Also on May 23, Xinhua quoted foreign-ministry spokeswoman Hua Chunying (华春莹) as saying that China was glad to see Vietnam develop normal cooperative relations with all other countries, including the United States. China hoped the lifting of the arms embargo was a product of the Cold War and should not continue to exist.

In more detail, Hua said that

As a neighbor to Vietnam, we are glad to see Vietnam develop normal relations with all countries, including the United States, and we hope that this will benefit regional peace, stability, and development.


Another question concerning Vietnamese-U.S. relations followed up on the topic:

Q: Vietnam is a close neighbor to China. Why has Vietnam, in recent years, kept calling for a lifting of the U.S. arms embargo? What kind of influence will America’s decision have on U.S.-Vietnamese relations?


A: I understand that you are touching on the considerations behind this issue. But you should ask Vietnam this question, not me. I said a moment ago that we are glad to see America and Vietnam develop normal relations, and hoe that this will benefit regional peace and stability.


In October last year, Hua had answered questions about the Trans-Pacific Partnership project, or TPP. Beijing believed that development levels among Asian-Pacific economic entities weren’t entirely the same, Hua said, and that on the basis of special needs, all agreements should help to advance all sides involved. And asked if the American-led TPP could have an effect on China’s promotion of RCEP, she said that

The particular diversity and pluralism of the Asia-Pacific region’s economic development are obvious, and all sides’ bilateral and mutilateral free-trade arrangements are also lively. As long as this is conducive to the Asia-Pacific regional economy’s prosperity and development, we maintain a positive and open attitude. China will continue to work together with countries in the region, based on the spirit of mutual trust, tolerance, cooperation and win-win, and will continiously promote all kinds of free-trade arrangements in the region. At the same time, we hope that both TTP and RCEP will be mutually complementary, mutually promotional, and beneficial for the strengthening of a multilateral trade system that will make a long-term contribution to the prosperity and development of the Asia-Pacific region’s economy.

亚太地区经济发展多样性、多元化的特点十分突出,各种多边、双边自由贸易安排也很活跃。只要是有利于促进亚太地区经济繁荣发展,有利于促进亚太经济一体化 的区域贸易安排,我们都持积极和开放态度。中方将继续与地区国家一道,本着互信、包容、合作、共赢的精神,推动区域内的各种自由贸易安排不断向前发展。同 时,我们也希望无论是TPP也好,RCEP也好,都能够相互补充,相互促进,有利于加强多边贸易体制,为亚太地区经济长期繁荣、发展做出贡献。

In an interview with Guanchazhe (Observer), a privately funded paper and website in Shanghai, Pan Jin’e (潘金娥), a researcher, discussed the future of Vietnam-U.S. relations.

Pan is a vice director at the Marxism Research Institute’s International Communist Movement department. The Marxism Research Institute is part of the Chinese Academy of Social Sciences, CASS. Her doctoral thesis, around 2012, was titled Research on Vietnam’s socialist transition period’s economic and political innovation (越南社会主义过渡时期的经济与政治革新研究).

Zhonghua Net (中华网, republished the Guanchazhe interview on May 25. It was first published by Guanchazhe, apparently one day earlier.

The first question of the Guanchazhe reporter (or reporters) contained the allegation that TPP was “anti-China” (排华的) by motivation. Pan did not comment on the allegation but said that Vietnam was the only country that America had invited on its own initiative. This had made Vietnam very proud of itself. In harder terms, TPP was seen by Vietnam as an opportunity to move its economy forward, to alter the model of economic growth, and to change the structure of the national economy. It was also seen as a way to reduce an excessive dependence on the Chinese economy.

However, bilateral Sino-Vietnamese trade amounted to more than 90 billion USD according to Chinese statistics, or over 80 billion USD according to Vietnamese statistics. Vietnam’s bilateral trade with America was only at over 40 billion USD. China was a neighbor that wouldn’t go away.

In an apparent reference to the No-New-China-without-the-Communist-Party propaganda song, Pan said that Vietnam’s Communist Party relied heavily on the Chinese Communist Party, and asked if the Vietnamese Communist Party would still exist without the CCP. No matter how important other Vietnamese considerations were, the only problem that currently existed between the two countries was territorial maritime sovereignty issues.

On the other hand, Hanoi’s political order was continiously challenged by Washington’s “so-called human-rights” issues (所谓的人权问题).

Asked about how far Vietnamese-American cooperation could go, Pan said that while it had been said that Washington had refused Hanoi a comprehensive strategic partnership and kept to a smaller-scale comprehensive partnership only, it was in fact the differences in America’s and Vietnam’s political order that had led to the omission of “strategic”:

… they [Vietnam] are aware that America continiously attacks their political system,even with human-rights issues. During his visit, Obama has, this time, also clearly stated that both sides needed to respect each others’ political systems. That’s to say, America currently respects the socialist road taken by Vietnam. But this doesn’t mean that America would abandon [the concept of] peaceful evolution towards Vietnam. This is something the Vietnamese Communist Party is well aware of.

… 它也知道美国一直是攻击它的政治制度 乃至人权问题的。这一次奥巴马来访时,在发言中也明确指出要彼此尊重政治制度。也就是说,美国尊重目前越南走的社会主义道路。但是并不意味着美国放弃对越 南的和平演变,这一点越南共产党也是心知肚明的。

Concerning the complete lifting of the U.S. arms embargo on Vietnam, Pan said that this was something Voietnam had long waited for. She also touched on the U.S. economic embargo on Vietnam (in force from the 1970s to 1995).

Asked if Russian arms supplies – currently at least eighty per cent of what Vietnam imported – would undergo changes, Pan said that Hanoi was most interested in advanced military technology, not in buying old gear. Imports from Russia would continue, and only a small share of imports would come from the U.S., particularly radar and communications technology, so as to fit into military cooperation with America, Japan, or Australia. However, she didn’t expect that this could lead to a Vietnamese force that would be a match to China’s.



Even worse than TPP,, June 4, 2015
Competing or complementary, Brookings, Febr 14, 2014


Thursday, May 19, 2016

DPP: a Need to Control and to Trust Tsai

Very few things can be taken for granted. Tsai Ing-wen‘s presidency will have to address issues from pension reform and social issues, to relations with China and efforts for economic-cooperation agreements with countries in the region, beyond Singapore and New Zealand.

From tomorrow, many things will be different from preceding presidencies. But one thing will not change at all: Beijing’s latent aggression against the island democracy will stay around.

Tsai will probably try to avoid anything that would, in the eyes of many Taiwanese people and especially in the eyes of Washington or Tokyo, unnecessarily anger Beijing. That in turn may anger some or many of her supporters.

But in tricky times, Tsai needs loyal supporters, who are prepared to believe that she has the best in mind for her country, and that she has the judgment and strength to make the right choices.

There will be disagreement, and there will be debate, which is essential. But underlying these, there needs to be loyalty within the Democratic Progressive Party.

Probably, there will be no loyal opposition – there are no indications, anyway, that the KMT in its current sectarian shape will constitute that kind of democratic balance.

The DPP itself, and maybe the New Power Party, too, will have to take much of that loyal-opposition role – at least until July next year.

Distinguishing between blind faith and loyalty will be a challenge for people who support the president elect. But if Tsai’s supporters expect her to perform well, they themselves will have to play their part, too, in terms of judgment, strength, and faith.

Tuesday, February 16, 2016

Korean Peninsula: no Pain, no Denuclearization

North Korea’s “Historical Moment”

On February 7, North Korea launched a missile. Pyongyang referred ot it as a satellite launch, and that’s how they had registered it with the International Maritime Office in London, a few days earlier.

But the world appeared to be in disbelief. One month earlier, on January 6, North Korea had conducted a nuclear test, and given that space rockets’ and ballistic missiles’ technological platforms are quite similar to each other, it is believed that Pyongyang chose the space option (a three-stufen rocket) rather than a (two-stufen) missile so as to circumvent UN Security Council restrictions on its missile program.

Beijing, too, expressed disbelief and “regretted” the satellite launch which, as the foreign ministry spokesperson emphasized, had been based on ballistic-missile technology.

Pyongyang’s claim that it had tested a hydrogen bomb was met with skepticism in the West, in Japan, and South Korea, and at least semi-officially – via the world of Chinese science, as usual – Beijing expressed doubt, too.

He wouldn’t rule out that North Korea mastered a bit of hydrogen-bomb technology already, PLA Academy of Military Science researcher Du Wenlong told CCTV, but the available data “didn’t support a ‘hydrogen-bomb test’”.

There were no such doubts about North Korean television’s wonderweapon: “Heaven and earth are shaking because of the historical moment”, announced Ri Chun-hee, a veteran presenter, re-emerged from retirement for the festive occasion.

South Korea’s Reaction

And South Korea’s leadership was steaming with anger. If it was up to the South’s foreign minister, Yun Byung-he, the North Korean leadership would be entering a world of pain:

“I believe it is time for the international community to show zero tolerance to North Korea’s uncontrolled provocations”, he told the Munich Security Conference in Munich on Thursday, and: “it is time now to inflict unbearable pain on Pyongyang, to make them take the right strategic decision, as Iran has done.”

South Korea sees itself affected by Pyongyang’s nuclear test more immediately as other neighbors or opponents taking part in the six-party talks on the Korean peninsula’s denuclearization. Different from the world outside the peninsula, reunification of the two Koreas is on the agenda, even if outside the South Korean government, considerable doubts are expressed concerning the use and feasibility of such unification.

There was a special relationship between South Korea and Germany, because of the painful experience of division, South Korean president Park Geun-hye said during a visit to Berlin, in March 2014.

Her demand that “meticulous preparations” should be made for making Korean unity happen was probably meant seriously then, and still is. Basically, the situation on the Korean peninsula isn’t that different after the North’s fourth nuclear test, anyway: America and China can agree to a common denominator concerning sanctions against Pyongyang, but no sanctions that would call the continuation of the North Korean regime into question.

Besides, flashes of official Korean anger – northern or southern – might be considered a ritual. As German sinologist Oskar Weggel observed decades ago, student protests in [South] Korean cities always took the same shape and followed the same script, while life continued as normal just next to where young people were battling it out with the police. 1)

But for some South Korean companies, life may be anything but normal now. An industrial park jointly run in Kaesong, by North and South Korea, has ceased operation last week. On Thursday, Pyongyang deported all the South Korean employees to the South, after South Korea had stopped production. The South Koreans’ apparent attempt to take their assets and stock across the border to the South reportedly didn’t succeed: according to Radio Japn news on Friday, the North Korean committee for reunification announced that South Korean assets in Kaesong would be frozen, and also on Friday, China Radio International’s Mandarin service reported that the South Koreans had only been allowed to take personal belongings with them. The industrial park had been sealed off as a military zone – chances are that this halt will last longer than a previous one in 2013.

Valued more than 500 million USD in 2015, inter-Korean production in Kaesong may be considered less than decisive, in macro-economic terms. However, according to South Korean broadcaster KBS’ German service, South Korean opposition criticized the production halt in Kaesong as the governing party’s “strategy” for the upcoming parliamentary elections in April. Also according to KBS, Seoul feels compelled to take relief measures for companies invested in Kaesong. All companies residing in the industrial park are granted a moratorium on loan repayments, and companies who took loans from an inter-Korean cooperation fund may also suspend interest payment.

Chinese-North Korean Relations

China had “total control” of North Korea, Donald Trump claimed in a CNN interview – there would be nothing to eat in North Korea without China. If you go by statistics, Trump appears to have a point.

From 2009 to 2011, North Korean exports (imports) to (from) China rose from 348 mn (1.47 bn) USD to 2.5 bn (3.7 bn) USD. In total, North Korea’s exports (imports) reached a value of 3.7 bn (4.3 bn) USD.2) Even after a contraction of North Koran-Chinese trade in 2014 and 2015 to 2.3 bn (2.6 bn) USD by 2015, there’s hardly a way to reject the notion of North Korean dependence on China.

North Korea also depends on China in military terms. An American-led attack on Pyongyang – be it to occupy the North, be it for the sake of “regime change”, is hardly conceivable – directly or indirectly, Beijing’s nuclear umbrella protects the regime.

All the same, it is wrong to believe that Beijing wielded substantial influence over Pyongyang’s behavior. Neither economic nor military support from Beijing has been able to satisfy Pyongyang. Given Chinese reform and opening up “to the West”, or to international markets, since 1978, China’s leaders are considered weaklings by North Korean peers, despite some private-economy tries of their own. To consider oneself an economic or military dwarf, but a giant of ideological purity vis-à-vis China has some tradition in Korea.

That China has joined several initiatives – resolutions and sanctions – against North Korea hasn’t been a confidence-building measure for the neighbor and ally either.

That Pyongyang, under these circumstances, keeps striving for nuclear arms, come what may, is only logical – at least by the regime’s own interest –, and not negotiable, unless the regime falls. There are no conceivable guarantees – be it from Beijing, be it from Washington – that could make the North Korean political class abandon their nuclear goal.

American-Chinese Relations

No matter if there ever was or wasn’t a Western “guarantee” to the former USSR not to expand NATO eastward: a precondition for any feasible arrangement of that kind – in east or west – would be a situation where all parties involved would see themselves in a position to enter a non-aligned status, or to maintain one. There is no way that this could currently be done in East Asia. Even as there is no structure comparable to NATO in East Asia – and South-East Asia, for that matter -, none of China’s neighbors will discard the option to play America and China off against one another, thus increasing its own leeway – neither North Korea as China’s current “ally”, nor any other state within the former Chinese imperial state’s range of influence. And neither America nor China – strategic rivals of one another – would abandon the option to establish or to maintain alliances in Asia, based on partnership or on hegemony.

If the North Korean regime collapsed, there would be no guarantees for China that a North Korean power vacuum wouldn’t be filled by South Korea and the United States. And if China invaded Korea’s north preemptively, it wouldn’t only violate its own attitude of non-interference, but it would risk war, or at least a crash in its economic relations with America and many other countries. Not least, a Chinese invasion would harden an antagonism against China that already exists among former tributary states.

From China’s perspective, there is therefore no convincing alternative to the incumbent North Korean regime. The status quo costs less than any conceivable alternative scenario.

America knows that, too, and a newly lected president Trump would get real very quickly, or America would lose a great deal of influence in the region.


Last week’s developments will be most frustrating for the South Korean government, particularly for president Park. Her public-support rate will hardly depend on national reunification drawing closer, but it will depend on a reasonably relaxed co-existence with the North, including at least a few fields of cooperation, as has been the case in the Kaesong Industrial Park. The South Korean opposition’s accusations against the government to have stopped production carelessly or intentionally, it’s exactly because levelling such accusations can damage the government’s reputation with the electorate.

A phone call between Park and Chinese party and state leader Xi Jinping didn’t provide Park with good news either, let alone progress in her efforts to influence the North through international channels. China was still “not prepared” to change its …. Toward North Korea, an editorialist for South Korea’s Yonhap newsagency stated cautiously, adding a quote from Jonathan Pollack who had emphasized how Park had made efforts for good relations with Beijing, even by attending the Chinese military parade in September, commemorating the end of World War 2.

Pyongyang is hardly at risk to suffer from unbearable pains, as demanded by South Korea’s foreign minister in Munich.

But Beijing, too, can’t be happy with the situation. It offends face-conscious Chinese people to be fooled, on the world stage, by a gang – that’s how many Chinese view North Korea’s “elites”. The effects of North Korea’s behavior also strengthen the hand of the US in the region. Just as Pyongyang helps itself to a Chinese military umbrella without much cost (if any), most other neighbors afford themselves, to varying degrees, an American umbrella. Even Japan and South Korea, facing North Korean nuclear armament, might work to defuse mutual antagonism, as feared by Chinese military professor Zhang Zhaozhong, in 2010. Preparedness to improve Japanese-South Korean relations appears to be on the increase.

Besides the – aggressive indeed – role played by China in the South China sea, North Korea’s attitude remains another strong anchor point for America’s military and political presence in the Far East.



1) Oskar Weggel: “Die Asiaten”, Munich 1989, 1994, 1997 p. 148
2) FAO/WFP Group and Security Assessment Mission to the Democratic People’s Republic of Korea, Rome, Nov 28, 2013, p. 7


Friday, January 8, 2016

Human Rights and Economic Records: Botched Measures and Terrible Occurrences

Before the old (lunar) year leaves and a new comes in, things need to be tidied up in China. However, efforts to calm the stock markets by new management measures appear to have been unsuccessful. And in Hong Kong, where RMB trading, is unrestricted, people pay less for China’s currency, according to the New York Times.

There’s still other bad news, and the indicator in this case, too, is Hong Kong.

“Something terrible has happened. We are all afraid. We are leaving now,” an employee told me a few hours before locking the doors for the foreseeable future.

That’s how the BBC‘s correspondent in the former British colony, Juliana Liu, concluded an entry in the broadcaster’s China blog on Monday, and the topic, of course, is the case of five Hong Kong citizens, all associated with the Causeway Bay Bookstore, who have gone missing since October last year. The latest case is Paul Lee, and he went missing late in December.

Hong Kong’s SCMP, one of East Asia’s leading English-language papers, but one with an uncertain future, reported on Monday the first precept speech by a Chinese leader since Mao Zedong. The guy who’s imitating the late great dictator is, of course, current party secretary general, state chairman, and the central military commissions’ (CMC) chairman Xi Jinping. The speech is seen as part of Xi’s efforts to reform China’s military, but obviously, the – probably intended – signal goes beyond the armed forces project.

Given that no other former CMC chairman, from Deng Xiaoping to Hu Jintao, had given a military precept, an associate professor at Shanghai University of Political Science and Law concludes that Xi’s power and authority is even higher than them.

This may or may not be true. If  Wang Qishan, rather than Li Keqiang, ranks second in terms of power or influence within the party, the assessement may be correct. But then, maybe Deng Xiaoping, who faced open ideological competition at times by more conservative party veterans like Chen Yun, simply didn’t need to show off his autority by admonishing the military.

Back then, too, the party was corrupted. But that was at a time when – or that’s how it felt, anyway – everyone had a chance to become rich. Now, there’s a two-fold challenge of corruption and slowing growth.

This could mean that Xi has powers because potential rivals do not want to challenge him, so as not to rock the not-so-stable boat.

If China’s regime manages the switch from an export-led economy to a more services-oriented economy successfully, the doubts in Beijing’s macro-economic control of the economy won’t persist – some disappeared people, in China or elsewhere, have never been a great concern to business.

All the Xidadamania aside however, confidence in mainland China, in Hong Kong, and abroad, appears to be slipping, at least currently.

In an interview with German national radio on Thursday, Markus Taube, a professor at a university in Germany’s Ruhr region, stated “a massive loss of confidence” in China:

What we see in China at the moment, definitely, is a massive loss of confidence. All market actors can see that the CCP has clearly lost its former control capacity. Until now, the Chinese market was always a very [unreadable] […]. Now, this ability to lead isn’t in place and that the state has failed several times, on its own promises.

Das, was wir in China momentan definitiv sehen ist ein massiver Vertrauensverlust. Alle Marktakteure sehen, dass die Kommunistische Partei offensichtlich ihre frühere Steuerungskapazität verloren hat. Bislang war der chinesische Markt immer ein sehr [unreadable] … Fundamentaldaten haben da kaum eine Rolle gespielt, und es war das Vertrauen einfach da, dass die Partei, der Staat, im Endeffekt die Richtung vorgibt [unreadable]. Jetzt ist es so, dass diese Führungsfunktion fehlt und dass der Staat mehrfach versagt hat, auf seine eigenen Versprechen hin.

Not least, Taube said, the “anti-corruption campaign” has discouraged Chinese decisionmakers in charge of approving (or delaying) investment projects.

Given that Chinese control mechanisms – concerning the financial markets – are out of order, Taube, with an audible sigh, introduces an old friend from the 2009 tool cabinet:

It sounds unorthodox, but probably, in the current situation, it would be more appropriate to issue another stimulus package, in that the state, again, to a great extent, pumps money into the economy. A classical Keynesian stimulus package to create state-induced demand so as to restore the economic dynamics on a basic level.

Es klingt sehr unorthodox, aber wahrscheinlich ist es in der momentanen Situation tatsächlich eher angesagt, ein klassisches Konjunkturpaket wieder aufzusetzen, einen Stimulus, in dem der Staat einfach in großem Maße wieder Geld in die Volkswirtschaft hineinpumpt. Also ein klassisches keynesianisches Konjunkturprogramm, in dem einfach staatlich induziert Nachfrage geschaffen wird, und damit einfach die volkswirtschaftliche Dynamik auf einem grundlegenden Level wieder stabilisiert wird.

That said, Taube doesn’t judge the situation by standards of five-year plans, or by taking the long view, as recommended by the Lord of the Confucius Institutes. Taube advocates a stimulus because the methods tried more recently haven’t worked and wouldn’t turn the tide for the coming six months.



» Executives Disappearing, HP, Jan 8, 2016


%d bloggers like this: