Hong Kong 15th aniversary on return to China

 Maintaining a China identity

Hong Kong SAR chief executive-elect Leung Chun-ying takes over the reins of government tomorrow and throws a challenge to the city to really call China its home.

TOMORROW, the people of Hong Kong and the mainland Chinese will celebrate the 15th anniversary of the return of Hong Kong to China.

Days ahead of the momentous celebration that will be attended by Chinese President Hu Jintao and featuring fireworks, military parade and parachute jumps, Hong Kong Special Administrative Region (HKSAR) chief executive-elect Leung Chun-ying threw a challenge to the city to really call China its home.



During an interview with the Chinese media late last month, Leung said that since the handover in 1997, the city dwellers had developed a sense of belonging with their motherland but it would take a little longer before remnants of the British influence disappear entirely.

New leader: Leung speaking to a group of low-income families at the rooftop of an old residential building in Sham Shui Po District, Hong Kong, in this file photo.

 

“There are two meanings of the handover. First, Hong Kong was legally returned to China and the Chinese government retained the administrative power of Hong Kong by establishing the HKSAR and passing the Basic Law for the ‘one country, two systems’ and ‘Hong Kong run by Hong Kong people’ model,” the People’s Daily quoted Leung.

“On the other hand, Hong Kong was under British control for 100 years. More needs to be done to rid that influence on people.”

For instance, he said, some Hong Kong people would still say that they were “leaving for China” instead of “going to the mainland”.

He cited an example where a Hong Kong saleswoman told her friend on the mainland that she had visited Beijing on her friend’s National Day, instead of referring to the celebration as hers, too.

“These people may not have any political stance when they speak that way. This is probably due to decades of British rule. We will keep on educating our people so that they can better understand the country. But we cannot rush it; it has to be done step by step,” he said.

Leung will begin his tenure as the new boss of the city for a five-year term starting tomorrow, along with his government line-up of Carrie Lam Cheng Yuet-ngor, John Tsang and 18 others.

Besides working on better interaction between Hong Kong and mainland Chinese people, the new HKSAR government has to tackle social problems such as the influx of mainlanders which puts a strain on the city’s healthcare and housing resources.

On the economy, Hong Kong will have to work around the central government’s supporting policies to maintain its competitiveness and improve its people’s livelihood.

In its editorial, the Hong Kong-based Sing Pao daily said the people of Hong Kong had mixed emotions and experienced ups and downs in the last 15 years, but the city was heading in the right direction under the “one country, two systems” policy.

“It was unavoidable that we had to ‘cross the river by touching the stones’. In the past 15 years, we have seen numerous conflict of opinions, political hostility and delayed reforms. No matter how many protests and demonstrations were staged, the majority of residents remain united in steering this boat named Hong Kong forward,” it said.

Oriental Daily hoped that Leung would “clean up the mess” left behind by his predecessors Tung Chee-hwa and Donald Tsang, and, turn around the economy and stabilise the social situation.

“During elections, Leung Chun-ying pledged to introduce a financial development unit if he was elected. Now he has walked the talk by setting up a committee headed by executive council member Laura M. Cha to form the objectives, functions and operations of the unit.

“Leung should invite financial advisers and economics experts to give their input on how to solidify Hong Kong’s status as the world financial centre and to counter future financial crises. Let us see if the Leung administration can lead Hong Kong on a new path of development,” the newspaper said.

Recently, Beijing announced a package of supporting policies such as issuing bourse-traded funds listed on both the Hong Kong and mainland stock markets, encouraging foreign investors to use the yuan for trade settlement in the city and easing restrictions on small businesses run by Hong Kong residents in the mainland.

Peng Qinghua, director of the liaison office of the central government in HKSAR, told China Daily that Beijing had played a key role in maintaining Hong Kong’s prosperity by keeping its promise of autonomy for the HKSAR government.

“The economic achievement in Hong Kong today is the result of its people’s ability to take the opportunities, and their flexibility and diligence. However, it could not have happened without the support of its motherland,” he said.

Peng hoped that the people from both sides would continue to respect their differences, improve communications and deepen cooperation in order to achieve real unity.

MADE IN CHINA By CHOW HOW BAN
hbchow@thestar.com.my

PLA gaining trust in HK

Shortly after being stationed in Hong Kong, Brigadier Zhang Jie said he was asked by a city official why were his soldiers "so invisible".

Soldiers of People's liberation Army pose for photograghs at teh Stanley barracks in Hong Kong earlier this month. Edmong Tang/China Daily

The People's Liberation Army troops had been at the garrison for a month, following the return of Hong Kong to China on July 1, 1997, and many residents expected them to have a high-profile presence.

"I told the official that the reason we were invisible was because we only leave the base when necessary, to not disturb residents," Zhang said ahead of the 15th anniversary of the handover.

This is a policy that stayed unchanged for 15 years.

The garrison, which has roughly 8,000 troops spread over battalions of infantry, engineers, airborne staff and navy personnel, is housed in several bases across the special administrative region.

Due to some differences between the mainland and Hong Kong, which the United Kingdom controlled for more than a century, and the "one country, two systems" policy, PLA troops stationed adhere to stricter rules than those in other parts of China.

"We have to be committed to strict discipline to gain the trust of Hong Kong citizens," said Zhang, who heads the garrison's infantry division.

Liang Yuejia, deputy director of the garrison's political department, explained that there was a lot of suspicion among residents at first that soldiers would get involved in local affairs, such as reacting to street protests.

"But we didn't. Unless the protesters illegally entered our barracks or threatened our lives, we did not resort to contacting the police," he said, adding that they respected such activities according to local regulations.

Even when anti-communist literature was thrown over the walls or staff received harassing calls from political groups, officials said they did not react.

That policy of noninterference has over the years helped the garrison gain a good image among residents.

A poll of 1,006 people by the University of Hong Kong last year found that only about 2 percent of those polled had a negative opinion about the garrison.

"Developing a good relationship with citizens has been the key," said Lieutenant General Zhang Shibo, commander of the garrison. "I think that mission has been accomplished."

Major Wu Qiong, a battalion commander with the garrison's communication station, added: "Before 2000, Hong Kong citizens usually kept their distance. But after years of interaction, many now often say hello. I guess that's because they are aware of our decent style of working and strict discipline."

Increasing openness

Compared with the "invisibility" of the early years, the garrison has greatly increased its openness to the outside world in recent years.

Besides regular training and exercises for army personnel, officials have also been promoting links between Hong Kong and the mainland through various activities, said Lieutenant General Zhang Shibo.

The troops have actively participated in public activities, such as planting more than 50,000 trees, donating 2.5 million milliliters of blood and helping more than 2,600 elderly people and children in care homes.

The garrison has also opened its barracks 23 times to visitors, receiving around 469,000 local people, and held summer camps for children.

The last open day, on May 1, attracted 37,000 visitors, far more than the 28,000 expected and extra free admission tickets had to be distributed. Some people waited in line overnight to get a ticket.

During the open days, guests can view the military facilities and watch soldiers perform combat skills and motorcycling stunts, including drills by the first female special forces of the PLA army.

"One of the reasons why we are gaining increasing recognition in Hong Kong is that the openness of the barracks provides local people with an opportunity to know more about us, as well as a platform for us to serve them," said Lieutenant General Wang Zengbo, political commissar of the garrison.

The activities organized by the garrison also present the PLA, the Communist Party of China and the mainland to Hong Kong residents in a proper way, Wang said. "Their national identity and patriotism have greatly increased," he said.

The garrison has organized seven military summer camps for around 1,200 local teenagers, six exchange activities with 1,600 students from 12 local universities and a military camp for college students. The troops also visited the University of Hong Kong for the first time in 2011 and talked with students.
A total of 215 teenagers participated in the military summer camp in 2011, and the number is expected to reach 260 this year.

"Despite the increase, every school can only send one student, while dozens of others actually want to come, so we'll continue enlarging the camp's scale in future," said Wang.

Tung Chee-hwa, former chief executive of Hong Kong, said the camps influence many families and hundreds of people even though there are only about 200 participants every year, and they also would influence the participants' whole life even they only last for 15 days. 

In 2010, Hong Kong saw an upsurge of young people wanting to enlist in the military. Most of the 4,000 local young people who signed up for enlisting participated in the garrison's exchange activities and military camps.

The summaries written by military camp participants revealed that the 15-day interaction with the garrison provided them with a chance to learn more about the troops, socialism, the Communist Party of China, as well as the strength of the PLA and China, Wang said.

Boosting defenses
With the garrison enjoying a good image in Hong Kong, Zhang Shibo said the focus has shifted from public relations to bolstering military defense.

The mission of the garrison is mainly to exercise China's sovereignty over Hong Kong, safeguard social stability and provide disaster relief and defense campaigns. However, military training is also a priority.

"Since 2007, we have invested millions to upgrade our army's equipment, navy and air force," said the garrison's commander.

Based on Hong Kong's strategic features, the PLA garrison added a special forces unit, an armored battalion and a chemical defense battalion. It has also been equipped with reconnaissance planes, armed helicopters and air defense missiles.

Soldiers receive regular training. More than 20 drills were held in Hong Kong over the past 15 years.
"We aim to test our basic military strength, commanding and organizing capabilities through joint drills," Zhang Shibo said.

The infantry brigade, the garrison's pillar force, has ranked at the top for three years in the military competitions in the adjacent PLA Guangzhou Military Area Command, which has the administrative control of the garrison.

Speaking of the possible challenges the garrison faces, Brigadier Zhang Jie said the garrison "needs to be prepared to tackle possible regional conflicts at all times".

Contact the writer at zhaoshengnan@chinadaily.com.cn

Yu Daimin in Hong Kong contributed to this story.
 

US naval fleet to shift towards Pacific by 2020

New strategy: The US plans to shift the bulk of its naval fleet to the Pacific, as Defence Minister Stephen Smith dismissed fears the move would stoke tensions with China. Picture: AP AP

SHIFTING FOCUS:While the US plans a ‘new strategic focus’ in Asia, China warned that now is not the time to ‘make waves’ in the South China Sea, which it claims

AFP, BEIJING and SINGAPORE

US fighter jets take off from the flight deck of the Nimitz-class USS George Washington for joint military exercises between the US and South Korea in the Sea of Japan (also known as the East Sea) on June 26, 2010.

China’s Xinhua news agency warned yesterday it was no time to “make waves” in the disputed South China Sea, after the US said it would shift the bulk of its naval fleet to the Pacific Ocean by 2020.

“It is advisable for some to refrain from muddying the waters and fishing therein,” said Xinhua, referring to the sea, which is part of the Pacific and the subject of overlapping territorial claims.

China claims the sea in full, and it is also claimed in whole or part by Taiwan, Brunei, Vietnam, Malaysia and the Philippines.

“As regards the South China Sea tensions, it is some other claimants, whether emboldened by the United States’ new posture or not, that sparked the fire and have been stoking the flames,” the agency said.

It was Beijing’s “genuine wish” to turn the South China Sea “into a sea of peace, friendship and cooperation,” Xinhua added.

The commentary was a reaction to US Secretary of Defense Leon Panetta telling a summit in Singapore yesterday that the US would shift the bulk of its naval fleet to the Pacific as part of a new strategic focus on Asia,

The decision to deploy more ships to the Pacific Ocean, along with expanding a network of military partnerships, was part of a “steady, deliberate” effort to bolster the US role in an area deemed vital to the US’ future, he said.

He insisted the switch in strategy was not a challenge to China, saying both countries had a common interest in promoting security and trade in the region.

“By 2020, the navy will re-posture its forces from today’s roughly 50/50 percent split between the Pacific and the Atlantic to about a 60/40 split between those oceans,” Panetta said.

“That will include six aircraft carriers in this region, a majority of our cruisers, destroyers, littoral combat ships and submarines,” he added.

The US Navy currently has a fleet of 285 ships, with about half of those vessels deployed or assigned to the Pacific.

Although the total size of the overall fleet might decline in coming years depending on budget pressures, Pentagon officials said the number of US naval ships in the Pacific would rise in absolute terms.

The US also planned to expand military exercises in the Pacific and to conduct more port visits over a wider area extending to the Indian Ocean.

Panetta was speaking to mainly Asian defense officials and officers from 27 countries at the Shangri-la Dialogue, an annual summit organized by the London-based International Institute for Strategic Studies.

VIDEO: US EXPLAINS PACIFIC-FOCUSED MILITARY STRATEGY CCTV News - CNTV English



Unlike previous summits, China chose not to send a high-level delegation to the event, prompting speculation as to what lay behind the move.

Since US President Barack Obama unveiled plans in January to shift toward Asia, the Pentagon has offered up few details about how it intends to achieve that goal.

Yesterday’s announcement on the future of the US fleet provided the clearest evidence yet of a shift to Asia, and the speech appeared designed to reassure allies that Washington would back its much-publicized “pivot” to Asia with tangible action.

In his speech, Panetta said budget woes in Washington would not affect the plan to tilt towards Asia, which he said would take years to fully realize.

The US planned new investments in capabilities needed “to project power and operate in the Asia-Pacific,” including radar-evading fighter jets, a new long-distance bomber, electronic warfare and missile defenses, he said.

“But make no mistake — in a steady, deliberate and sustainable way — the United States military is rebalancing and is bringing an enhanced capability and development to this vital region,” he added.

Military commanders are revising doctrine to take into account new weapons that “could deny our forces access to key sea routes and lines of communication,” Panetta said.

Amid a growing US-China rivalry, US officials privately acknowledge the push for a larger military footprint is meant to reinforce US diplomacy when confronting Beijing’s assertive stance in the South China Sea.

Related posts:
Who owns the South China Sea islets in the eyes of the world?
U.S. designs on South China Sea exposed!
China's warns US of Confrontation over South China Sea

Japan's Politics Favoring a Regional FTA over TPP?

It is easy to misapprehend Japanese politics.  It is hard—to put it mildly—to correctly apprehend them.   I say misapprehend, rather than misunderstand, Japan’s politics because the problem is not so much interpretation of information as of one of limited and biased sources of information.

Sad to say, if you don’t have Japanese and aren’t listening to and reading the Japanese media, you can simply give up thinking that any judgment you make is based on meaningfully representative information.  But even if you do follow matters in Japanese, it is hard to avoid finding one’s judgment biased by the fact that only Japan’s big business community—whose organ is the Nihon Keizai Shimbun—seems to speak on any issue clearly and with one voice.  The trap is allowing oneself to think that the Nikkei’s advocacy—because clear and forceful—holds more sway in the political process than that of a host of other interest groups, or that Japan’s political process is particularly responsive to big business.

I say this by way of apology and no doubt excuse for what I have suggested in the past is the “slam dunk” logic of Japan’s entering the Trans-Pacific Partnership (TPP) negotiations, or of meeting any ostensible deadlines for doing so, or of TTP being one of the highest priorities of the Noda government, and that accession to an agreement is critical to Japan’s future.

During the past month, and for at least the next few weeks, the Noda government—and Prime Minister Noda personally—have been engaged in a raucous and exhausting debate with dissident members of its own ruling Democratic Party of Japan (DPJ) as well as the opposition parties, led by the Liberal Democrats (LDP), over legislation to raise Japan’s consumption tax from 5% to 10%.  Noda has said many times that he is staking his political life on passage of the consumption tax rise, so vital does he believe it is to putting Japan back on a path to fiscal soundness and avoiding a Greece-like crisis.

Noda’s policy stance on the consumption tax is exactly that of Japan’s big business establishment, and the editorial pages of the Nihon Keizai Shimbun.   What about TPP—along with the consumption tax hike, a cause celebre of the Nikkei?  In fact, the trade agreement seems to have slipped completely off the agenda, at least for the time being.  Why—if it is so critical—might this be the case?

In answering this question I am indebted to an exceptionally insightful analysis by Professor Aurelia George Mulgan of the University of New South Wales in Australia recently posted in the East Asian Forum (website: eastasiaforum.org).  Apart from the obvious point that presently Noda has no spare political capital to invest in TPP, Professor Mulgan notes that “Japan’s record on signing Free Trade Agreements (FTAs) is not promising.  As a general rule, Japan prefers signing FTAs with non-agricultural exporting powers, rather than with powerhouses like Australia, New Zealand, and the U.S….  Japan has not signed trade agreements with its major trading partners or with developed countries (except for Switzerland in 2009); and it has preferred developing countries instead because it asks them to accept a lower trade liberalization rate with exceptions for some agricultural product.”

Professor Mulgan elaborates on why TPP is stalled, and may be doomed, in Japan.  I want to relate his many insights in a future post.  Now I will focus on one more; he writes:

“PM Noda has argued that by joining the TPP Japan ‘can absorb the Asia Pacific’s growth power’, but this argument is flawed because…China, South Korea, Thailand, Indonesia, and the Philippines, are not in it.”

While TPP may be going nowhere, Professor Mulgan believes that Japan will “continue to push the Japan-China-South Korea FTA proposal, which was boosted by Noda’s recent trip to Beijing.”  In fact, at the tripartite meeting in Beijing Noda suffered another humiliating snub as Hu Jintao refused to meet one-on-one with him.  Speculation was briefly rife in the Japanese press as to why this happened.  But the buzz quickly passed, as snubs from Beijing seem recently to be the rule rather than the exception.

As readers of this blog know, I believe that the China-centric Asian regional economic and trade integration is an overriding mega-trend shaping and redefining Japan’s future.

Despite the Nikkei’s advocacy, movement toward TPP has stalled.    Very likely, where Japan’s varied political interests are aligning is toward a Japan-China-Korea FTA.

Stephen Harner, Forbes Contributor

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China's Revolutionary New Thinking On Private Capital

In a stunning series of announcements last week, Beijing opened the doors to private capital.  In the process, officials signaled a reversal of a half decade of anti-reform sentiment.

Play Video China has issued new measures on guiding non-governmental capital into the domestic banking sector.

The China Banking Regulatory Commission has stated that private investors will have equal rights with other state-owned banks. Private investors can bid for the establishment and capital increase of a rural bank.



They can now have a larger share of a rural bank, as state-owned financial institutions shareholding has been lowered to 15% from 20%.

In addition, the Chinese banking industry will strengthen its financial support for private investors.

Yesterday, for instance, the China Banking Regulatory Commission announced private capital will have the same entry standards as state capital when it comes to the country’s banks.  Specifically, private companies will be able to buy into banks through private stock placements, new share subscriptions, equity transfers, and mergers and acquisitions.  Moreover, the government will liberalize investment into the rural banks and as well as the trust, financial leasing, and auto financing sectors.

And on the day before, Beijing gave the “all-clear” for the break up of state monopolies.  The State-Owned Assets Supervision and Administration Commission issued guidelines that, among other things, permit private investors to contribute cash or assets like intellectual property to state enterprises in return for equity and discourage these enterprises from placing additional restrictions on private parties when the enterprises sell their stakes in listed companies.  As SASAC noted, “The guideline reflects equal treatment of various kinds of investors and it helps ensure fairness in economic development.”

These two major developments followed a series of other recent indications of liberalization.  The China Securities Regulatory Commission announced it would allow private companies to list on domestic and foreign stock markets and to issue bonds; the National Development and Reform Commission said it is drafting rules to open the electricity, oil, and natural gas sectors to private capital; and the Ministry of Railways talked about opening railroads to private capital.  The State Council itself announced it is looking for private investment in the energy, telecom, education, and health care industries.

China, in short, is open for business, and there is no mystery surrounding the sudden change of attitude.  First, many cite the eroding profitability of state enterprises for these announcements.  In fact, official figures show that their profits fell 8.6% year-on-year in the January-April 2012 period.

Second, other factors include the decline of foreign direct investment—FDI fell for the sixth consecutive month in April—and a dramatic slowdown in economic activity—the economy showed signs of either zero growth or contraction last month.  Initial indications for this month, such as the sinking HSBC Flash PMI, are mostly bearish.

Third, Beijing technocrats realize they will fall far short of reaching their target of 36 trillion yuan of fixed asset investment because the central government can only “channel” 402 billion yuan and state enterprises are sitting on their hands.  The inescapable conclusion is that the only way to make up the difference is private capital.

Despite the country’s economic distress, it’s not clear when we will actually see implementation of the dramatic announcements.  For one thing, it is not an encouraging sign that Beijing issued precious few details.  At the moment, this looks like another instance of Chinese vaporware.

Why?  In the last few years state enterprises have become entrenched and extremely powerful in Chinese political circles.  And provincial and local governments are even more hostile to non-state capital because of the perceived divergence of interests between private investors and Party officials.

Moreover, it’s unlikely that much, if anything, will get done this year as top leaders are now embroiled in disruptive political struggles.  In fact, part of the reason for the accelerating economic slide is that for months they have been distracted by the worsening turmoil in the top reaches of the Party.  Moreover, not much may get done next year either.  Xi Jinping is slated to take over this fall, and new supremos usually take a couple years before they are able to effectively exercise power.

In any event, central government ministries, if they were truly serious about liberalization, would just implement structural changes as opposed to talking about them.  Until there is a sign he is serious this time, many will think Premier Wen Jiabao is borrowing from his 2010 playbook when he had his State Council grandly announced similar reforms that were not put into effect with real rules.

And there is one more factor suggesting private capital will not rescue the Chinese economy this time.  As domestic and foreign investors learn more about both the fundamental and cyclical problems in China, it will be increasingly unlikely that anyone will commit substantial sums to the country.

After all, you don’t see private investors heading for Greece at the moment, and in some important ways China is in far worse shape.  The internal and global narratives on the Chinese economy and political system are changing, and those changes are bound to have a negative effect on investment sentiment.

In short, Beijing’s announcements this month may evidence a welcome change of heart, but they could end up being both too little and too late to stop the country’s accelerating slide.

Gordon G. Chang, Forbes Contributor

I write primarily on China, Asia, and nuclear proliferation.

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U.S. designs on South China Sea exposed!

BEIJING, May 25 (Xinhua) -- U.S. Senator John Kerry's recent statement on the UN Convention on the Law of the Sea has exposed the country's selfish intentions for the South China Sea, an area where the United States has no claims to sovereignty and is not a party in disputes there.

Kerry, chairman of the Senate Committee on Foreign Relations, said during a hearing on the convention held Wednesday that China and other countries are "staking out illegal claims in the South China Sea and elsewhere."

He added that becoming a party to the treaty would provide an immediate boost to U.S. credibility "as we push back against excessive maritime claims and illegal restrictions on our warships or commercial vessels."

As the United States turns its national security focus toward the Asia-Pacific region, its willingness to join the convention is a means to find a legal framework for the country to interfere with issues in the South China Sea and elsewhere, as well as maximize its strategic interests in political, economic and military fields around the world.

The U.S. is the only major nation that has refused to sign the treaty, which has been endorsed by 160 countries and the European Union.

The hearing was the first one on the treaty in four years, and the Obama administration and the U.S. Armed Forces are now pushing Congress to sign it.

The reason why the U.S. once refused to sign the treaty is that the treaty's provisions will limit the free navigational rights of U.S. warships in other countries' exclusive economic zones.

However, the U.S. attitude toward the convention is now changing.

Dr. Zhang Haiwen, deputy director of the China Institute for Marine Affairs under the State Oceanic Administration, said the U.S. has realized the disadvantages of not signing the convention, which have impaired its role as a leader in global maritime issues.

Kerry said at the hearing that ratifying the treaty will lock down the favorable navigational rights that the U.S. military and shipping interests depend on every single day. It will also strengthen the country's hand against China and others who "stake out claims" in the Pacific, the Arctic or elsewhere.

The treaty will also help U.S. companies' oil and gas investments secure the country's energy future as well as help secure access to rare earth minerals, which the country needs for weapons systems, computers and cell phones, among other products, Kerry added.

Kerry also said that China and other countries are "staking out illegal claims in the South China Sea and elsewhere." However, the truth is that he thought disputes in the South China Sea have affected U.S. companies' rights to gain oil and gas resources in the region and the free navigational rights of its vessels.

Zhang said the convention is the fruit of over a decade of international negotiations and the product of the balance of different interests. It provides fundamental and principled provisions for maritime activities for the whole of mankind.

"But the convention itself cannot solve territorial disputes," said Zhang.

She said China's territorial claims over some islands and shoals in the South China Sea have sufficient historical evidence and legal bases, and have been recognized by the international community over a long period of time.

It is dangerous that some U.S. politicians are expanding U.S. claims and raising its degree of interference. This will aggravate regional tensions and is not conducive to resolving issues.

Related posts/articles/news:

 
Who owns the South China Sea islets in the eyes of the world?

China's warns US of Confrontation over South China Sea

United we stand, divided we fall in South China Sea?

China to handle S China Sea disputes through direct negotiations
BEIJING, May 25 (Xinhua) -- A Foreign Ministry spokesman said Friday that China will negotiate directly with relevant parties in regards to resolving disputes in the South China Sea.
"China has long been committed to safeguarding peace and stability by consulting with ASEAN nations and signing agreements, such as the Declaration on the Conduct of Parties in the South China Sea," Foreign Ministry spokesman Hong Lei said. Full story

Video: China opposes third party involvement in Huangyan Island dispute

•	U.S. top diplomatic, military officials urge Senate to ratify UN sea convention
•	U.S. defense chief urges Congress to ratify UN Sea Convention
•	China to handle S China Sea disputes through direct negotiations
•	China strengthens control in Huangyan Island waters
•	China opposes third party involvement in Huangyan Island dispute

China warns Philippines over Huangyan Island as tension rise

Air Force Flag of the People's Republic of China (Photo credit: Wikipedia)

 China will not allow anyone to take away sovereignty

BEIJING, May 10 (Xinhua) -- The PLA Daily, the official newspaper of the People's Liberation Army (PLA) of China, on Thursday warned the Philippines about the Huangyan Island incident, saying the country's armed forces will not allow anyone to take the sovereignty of the island away from China.

"We want to say that anyone's attempt to take away China's sovereignty over Huangyan Island will not be allowed by the Chinese government, people and armed forces," the newspaper said in a signed article titled "Don't Attempt to Take Away Half an Inch of China's Territory."

Instead, it is wise to give up such attempts and abide by international rules to gain the forgiveness of the Chinese people and the pardon of the international community.

China has exercised restraint on the Huangyan Island incident. "If one mistakes China's kindness for weakness and regards China as a 'paper dragon' as instigated by some onlookers, he is terribly wrong," the article added.

China had suffered too much humiliation as its sovereignty was encroached and territory carved up when the country was poor and weak.

China now pursues an independent foreign policy of peace.

It will not bully the weak by being strong, nor blindly tolerate unreasonable tricks played by others, especially on matters concerning territorial integrity, national dignity and social stability.

It is obvious that the Philippine side has not realized that it is making serious mistakes, although one month has passed since the beginning of the incident, said the article.

Instead, the Philippine side is stepping up efforts to escalate tensions, has continued to send government vessels to the Huangyan Island lagoon and has repeatedly made erroneous remarks which have misled the Philippine public and the international community and provoked public feelings, thus severely damaging bilateral relations.

The situation is not optimistic, the article said.

China's sovereignty over the island is based on both historical and legal grounds. No matter what tricks the Philippines may play, the fact that Huangyan Island belongs to China will never change, the article said.

Even Philippine maps published in 1981, 1984 and 2006, which indicate that Huangyan Island is outside of the Philippines' territory, show how ridiculous the Philippine side is when it attempts to claim sovereignty over the island.

Moreover, the repeated tricks by the Philippines have failed to gain support from its own people, the international community and even its allies. It is quite likely the Philippine side will drink as it brewed, said the article.

China issues warnings as Philippines tensions rise

   by Ananth Krishnan

APA placard with drawing of a Philippine warship is displayed during a protest at the Philippines Consulate in Hong Kong on Friday. The Philippine government used this second hand warship from the American aid, its naval personnel had boarded the Chinese fishing boats, inspected their equipment and catch last month.

China has issued a safety advisory to its citizens in the Philippines and suspended travel to the country a day ahead of a large planned demonstration against China over rising tensions in the South China Sea.

The Chinese embassy in Manila in a notice warned that “massive anti-China demonstrations” were scheduled to take place on Friday, advising Chinese nationals to avoid going out and to “keep a low profile”.

The warning came as vessels from both countries remained locked in a stand-off near the disputed Scarborough Shoal or Huangyan Island in the South China Sea, which both sides claim.

Chinese State-run media outlets on Thursday continued issuing stern warnings to the Philippines, not ruling out the use of force. The Foreign Ministry, however, appeared to strike a more moderate tone and suggested a way out through a diplomatic solution, saying it “approved” of recent remarks by officials in the Philippines “to resume diplomatic contact with the Chinese embassy”.

“China remains committed to solving the situation through diplomatic consultation and negotiation,” spokesperson Hong Lei told reporters on Thursday, calling on the Philippines to “come back to the right track of handling the matter”.

He did also hit out at the Philippines government for “encouraging people both home and abroad to launch demonstrations against China”. “We urge the Philippines side to respect China’s sovereignty on the issue of Huangyan Island and not to take actions that will complicate and amplify the situation,” Mr. Hong said.

Reflecting the rising tensions, Chinese travel agencies said on Thursday they had suspended planned trips to the Philippines following an order from central authorities. Ctrip, a popular travel portal, said it suspended travel because “trips to the Philippines have become potential safety risks”, the official China Daily reported.

The newspaper in an editorial warned that while China did not seek a military conflict, the use of arms was not off the table. “No matter how willing we are to discuss the issue, the current Philippine leadership is intent on pressing us into a corner where there is no other option left but the use of arms,” the editorial said.

“We are faithful to our commitment to being a responsible member of the international community, and we pursue peaceful co-existence. But no international law allows a country's sovereignty to be infringed upon, and a responsible nation does not try to seize territory that does not belong to it.”

The People’s Liberation Army (PLA) daily struck a harder tone, saying that “anyone’s attempt to take away China’s sovereignty over Huangyan Island will not be allowed by the Chinese government, people and armed forces”, in a commentary headlined “Don’t attempt to take away half an inch of China’s territory”.

“If one mistakes China’s kindness for weakness and regards China as a ‘paper dragon’ as instigated by some onlookers, he is terribly wrong,” the newspaper said.

Suggesting the stand-off may yet be resolved peacefully, China on Thursday also appeared to respond positively to a Philippines-based mining company’s proposal for joint drilling with the China National Offshore Oil Corporation. Officials said Beijing was willing to talk with the Philippines government over joint development.

The South China Sea, which is disputed by China and at least ten other countries, is estimated to have as much as one-third of China's oil and gas resources and key sea lanes run through its disputed waters.

China’s first deep-water drilling rig in the South China Sea started operations on Wednesday, with calls from officials to speed up drilling projects. Feng Fei, head of the industry department of the Development Research Centre, the official think-tank of the State Council or Cabinet, said more than thousand oil wells had already been sunk by other countries. “China drilling in the South China Sea is of deep significance, and ensures our energy security by reducing dependence on foreign oil,” he said.

Wu Shicun, head of the National Institute for South China Sea Studies, added that joint development of resources could help address conflicts. “Against a backdrop of some countries not responding positively toward China’s proposal of joint development, it is of supreme importance to finally solving sovereignty disputes,” he said.

“Setting aside disputes and embarking on joint development is the most effective way to solve the issue.’’

Related:

China urges Philippines to stop further harming bilateral relations

BEIJING, May 10 (Xinhuanet) -- The spokesman of China’s Ministry of Foreign Affairs Hong Lei condemned Philippines for inciting its people going on to streets for demonstrations against China. Hong says the incident has triggered severe concerns among Chinese people.

He also says China hopes Philippines to stop further harming the bilateral relations. Hong reiterated China’s stance on the dispute and urged Philippines not to taken any actions that may harm the relations between the two countries.  Full story

Commentary: Never test China's will to defend its own sovereignty

BEIJING, May 9 (Xinhua) -- For nearly a month, Manila has not only turned a deaf ear to Beijing's position on resolving the dispute over China's Huangyan Island through diplomacy, but made repeated provocative moves to heighten the tension, severely infringing China's sovereignty in the process.

It is widely accepted Huangyan Island has been an integral part of China since ancient times, both on a historical and a legal basis. The surrounding waters are China's traditional fishing grounds and Chinese fishmen have fished there for generations.  Full story

China is prepared for escalation of Huangyan Island incident

BEIJING, May 8 (Xinhua) -- China's Vice Foreign Minister Fu Ying said China is not optimistic about the situation concerning Huangyan Island, and the country is fully prepared to respond to anything the Philippine side does to escalate the situation.

Fu made the remarks when meeting with Alex Chua, Charge D'affaires of the Philippine Embassy in China, on Monday, China's Foreign Ministry said Tuesday in a press release.  Full story

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Chinese journalist plants national flag on main reef of Huangyan Island

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Xinhua Insight: True story behind Huangyan Island dispute in South China Sea

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Philippine President Aquino plays tough over China's Huangyan Island to revive popularity: author

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It belongs to China: Philippine media

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China urges discussion over Huangyan Island

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Manila provocation blasted; Philippine Newspaper: Huangyan Island belongs to China

Photo taken on May 9, 2012 shows deep-water drilling rig CNOOC 981 in the South China Sea, south China, May 9, 2012. China's first deep-water drilling rig CNOOC 981 started operations in the South China Sea at 9: 38 am on Wednesday, marking "a substantial step" made by the country's deep-sea oil industry. The sixth-generation semi-submersible CNOOC 981 began drilling in a sea area 320 km southeast of Hong Kong at a water depth of 1,500 meters, according to China National Offshore Oil Corp. (CNOOC), the country's largest offshore oil producer. Photo: Xinhua

China Wednesday accused the Philippines of instigating demonstrations against Beijing, urging Manila not to further damage bilateral relations by provoking public sentiment over the two sides' spat in the South China Sea.

"We have noted that the Philippine side has repeatedly made strongly worded remarks about the Huangyan Island standoff, which have provoked public feelings and severely undermined the atmosphere of bilateral relations," foreign ministry spokesman Hong Lei said.

"The Philippine side also instigated demonstrations, both inside and outside the country, against China, which have aroused strong responses and concern among Chinese people living around the world," Hong added.

The spokesman said there is no change in China's position on resolving the current tensions through diplomatic efforts, urging Manila to seriously respond to Beijing's concerns and return to the right track.

Loida Nicolas-Lewis, a Filipino-American businesswoman, has called on all Filipinos around the world to mount demonstrations in front of Chinese embassies and consulates at 12 pm on Friday.

According to Reuters, civil society and political groups with links to Philippine President Benigno Aquino III's political allies plan to take to the streets on Friday to "protest the Chinese presence" in waters near Huangyan Island.

The Chinese embassy in Manila has issued a safety alert, advising Chinese nationals to enhance safety awareness, avoid going out and stay away from protesters.

Ctrip.com International Ltd, a leading online travel service provider in China, decided to suspend trips to the Philippines Wednesday, citing safety risks of tours as tensions over Huangyan Island escalate.

A Global Times correspondent in Manila said the Chinese communities there are calm despite Friday's looming protest.

"Issues concerning sovereignty are non-negotiable for China. The Philippines took China's restraint for granted and kept staging provocations," a researcher surnamed Ma with the Southeast Asian Institute of the Guangxi Academy of Social Sciences, said.

"The planned global protest against Chinese embassies has shown Manila's intention to internationalize and complicate the issue. Beijing will lose its patience if Manila doesn't back off," Ma said.

Shen Shishun, a director of the Department for Asia-Pacific Security and Cooperation under the China Institute of International Studies, told the Global Times that stirring public emotions over Huangyan Island is a scheme by Aquino to shift domestic anger away from a gloomy economy.

"The standoff is caused by the Aquino administration. Further development of the matter depends on moves taken by the Philippine government," Shen said.

According to the Philippine Daily Inquirer, the Philippine military reported that the number of Chinese vessels in the waters off Huangyan Island has increased to 33 from 14 last week, while the Philippines has two vessels in the area.

The paper said the Chinese vessels include three big ships, namely fishery law enforcement ship Yuzheng-310 and maritime surveillance ships Haijian-75 and Haijian-81. It said these ships are denying Filipino fishermen access to waters off Huangyan Island.

Also Wednesday, Philippine Defense Secretary Voltaire Gazmin said he had received assurances during talks in Washington last week that the US would protect Manila from attacks in the South China Sea.

Gazmin said US Secretary of State Hillary Clinton and Defense Secretary Leon Panetta stressed they were not taking sides in the dispute, but assured him the US would honor a 1951 mutual defense treaty.

"The Philippines has always wanted Washington to help it in a conflict with China, but the US won't do so due to its own national interests," Shen said, adding that Manila's attempts to bring Washington on board shows its anxiety and fears over the tensions.

Meanwhile, China's quality watchdog Wednesday ordered intensified quarantines on fruit imports from the Philippines.

The General Administration of Quality Supervision, Inspection and Quarantine said harmful insects or bacteria have been found in pineapples, bananas and other fruit imported from Southeast Asia since last year, and Chinese authorities have asked the Philippine side to make improvements.

The Philippine Daily Inquirer quoted Stephen Antig, president of the Pilipino Banana Growers and Exporters Association, as saying that the tighter rules imposed by the biggest buyer of Philippine Cavendish bananas have sent jitters through the local industry.

"The Philippine economy will worsen if China, a major trade partner, reduces the import of agricultural products," Shen said. "Such an import ban will not hurt China because the Philippine products are not irreplaceable."

Xu Tianran and agencies contributed to this story

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Trust needed for joint oil exploitation 

China is willing to hold talks with the Philippines on joint oil and gas exploitation in the South China Sea if Manila shows due sincerity, the foreign ministry said Wednesday in Beijing.

Peace will be a miracle if provocation lasts
Right now, Manila is keen to stir up the situation with its public opinion showing an overzealous nationalistic tendency, and the current administration is exploiting it to cement its rule. Under the circumstances, the Philippines needs to be taught a lesson for its aggressive nationalism.

Deep-water drilling starts
The nation's first indigenous deep-water drilling rig, the CNOOC 981, will begin operations Wednesday in an area in the South China Sea 320 kilometers southeast of Hong Kong.

Huangyan white paper a needed step
The standoff between China and the Philippines over Huangyan Island is still going on. The Philippines has threatened to internationalize the territorial disputes by bringing international arbitration against China.

South China Sea Conflict

Philippine Newspaper: "Huangyan Island belongs to China"

Play Video

The Philippine Newspaper "Manila Standard Today" has released an article titled " It belongs to China" written by author Victor N. Arches II.

The Filipino author looks at evidence and international documents, saying that Huangyan Island has been an integral part of China's territory since ancient times. Recounting his motive in writing the article, Arches says he aims to educate the Philippines on the reality of the situation, versus what the Philippines media is promoting. Let’s take a look.

In the article, the author says that Huangyan Island has been a part of China’s territory since ancient times. Chinese fishermen, from both the Mainland and Taiwan, have used the island for many years.
"The Scarborough Shoal, ( Huangyan Island) does belong to China which discovered it and drew it in a map as early as 1279 during the Yuan Dynasty."



The old maps relied upon by the Philippine Department of Foreign Affairs were drawn up only in 1820, 541 years after China's.

'being relied upon by the Philippine Department of Foreign Affairs in its spurious claim on the same territory were drawn up only in 1820, or 541 years after China’s."

Arches said China organized many scientific expeditions around the island in the late 1970s. In 1980, a stone marker marks China’s scientific expedition was installed by China on the South Rock. However, the Philippines removed it without authority in 1997.

" In the late 1970s, China organized many scientific expeditions in the Shoal and around that area. In fact, in 1980, a stone marker reading “South China Sea Scientific Expedition” was installed by China on the South Rock."

"This Chinese marker was removed, without authority, by the Philippines in 1997. "

He adds that all official maps published by the Philippines until the 1990 excluded Huangyan Island from its territorial boundaries. But an act approved by the Philippine government in 1961 stopped the Philippines from the claim.

"All official maps published by the Philippines until the 1990s excluded both the Spratlys and Scarborough Shoal (Huangyan Island) from its territorial boundaries."

"Republic Act No. 3046, passed by our Congress and approved in 1961, stopped us from our claim."
China holds three international treaties in support of its claim over the territories in question... all limiting Philippine territorial limits to the 118th degree meridian of longitude east of Greenwich.

"1898 Treaty of Paris between the US and Spain, the 1900 Treaty of Washington between Spain and the US, and the 1930 Treaty between Great Britain and the US, all limiting Philippine territorial limits to the 118th degree meridian of longitude east of Greenwich. "

Arches say the basis of the Philippine claim is restricted to proximity, relying solely on the 1982 United Nations Convention on the Law of the Sea. He said that even if it were considered a "law", it cannot be made to take effect retroactively.

"On the other hand, the basis of the Philippine claim is restricted to proximity, relying solely on the 1982 United Nations Convention on the Law of the Sea."

Arches believed there is no need to internationalize the Huangyan Island issue.

He said ASEAN is remaining neutral on the dispute and the US has also declared it will not take sides.

Related stories/post

• Crossover: Analysis on China's Huangyan Island 2012-05-10
• It belongs to China: Philippine media 2012-05-09
• China is prepared for escalation of Huangyan Island incident 2012-05-08
• China again summons Philippine diplomat over Huangyan Island incident 
• Tensions in South China Sea: US won't take sides, US-Philippines Naval drills, students attack US embassy
• Who owns the South China Sea islets in the eyes of the world?
• China's warns US of Confrontation over South China Sea  

Trust deficits - US-China Relations

 

The conductor: At the opening ceremony for the U.S.-China Strategic

and Economic Dialogue, Secretary of State Hillary Clinton introduces

an unnamed U.S. official to China's State Councilor Dai Bingguo. Tense

circumstances due to the case of Chen Guangcheng have put all her

diplomatic skills to the test.

Lack of Mutual Sino-U.S. Military Trust a Major Threat

Is Washington encouraging the Philippines and Vietnam to challenge China’s territorial claims in the South China Sea? In this editorial from the Global Times, which reads like a summary of what the U.S. and China have been discussing since Friday, Beijing warns the U.S. not to try to make up for its economic weakness with what it regards as foolish military adventurism.

The China-U.S. Strategic and Economic Dialogue pertaining to military cooperation and the visit by China Defense Minister Liang Guanglie to America are important events for military exchanges between the countries. These will create a certain degree of relaxation and ease their long-running military confrontation. Such an atmosphere is essential to improving ties, as it reduces the damage and the significance of the friction over specific matters. [referenceto controversy over Chen Guangcheng].

Military trust should be amassed by resolving disputes over China's sea territory [reference to the South China Sea], and through a process of boosting mutual understanding and adapting to circumstances as they arise. This will help build a foundation for the two nations to avoid misinterpreting military maneuvers by the other.

Thus, both nations must have a clear and accurate understanding of one another. It is unwise for the United States to look down on China as a mere land force that can only play a limited regional role. Because China has interests around the world, it is essential for its military to extend its reach further. Neither should China view the presence of the U.S. military in Asia as illegal or ignore America’s special influence over global security. China must accept the truth that the U.S. is an essential power in the region.

The objective of achieving mutual military trust will never be reached if China seeks to squeeze the United States out to lead Asia on its own, nor if the U.S. seeks to constrain the rise in China's military strength. Luckily, neither Beijing nor Washington has such aims.

Now, as their interests and objectives overlap, each country is in a defensive crouch in relation to the other, giving an opening to brief confrontations. Since the United States has announced its return to Asia, the respective bottom lines of both nations concerning the South China Sea have come close to clashing.

Although analysts still see the possibility of a military conflict in the South China Sea as slim, once the two sides enter into an arms race and making displays of military strength, all efforts to build mutual trust will be ruined.

Competing territorial claims in the South China Sea: China sees

the United States meddling, whereas other nations in the region

regard the U.S. as playing a balancing role. 

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