China, Russia sound alarm on world economy at APEC summit

By Timothy Heritage

VLADIVOSTOK, Russia

(Reuters) - China and Russia sounded the alarm about the state of the global economy and urged Asian-Pacific countries at a summit on Saturday to protect themselves by forging deeper regional economic ties.

Chinese President Hu Jintao said Beijing would do all it could to strengthen the 21-member Asia-Pacific Economic Cooperation (APEC) by rebalancing its economy, Asia's biggest, to improve the chances of a global economic recovery.

Russian President Vladimir Putin said trade barriers must be smashed down as he opened the APEC summit which he is hosting on a small island linked to the Pacific port of Vladivostok by a spectacular new bridge that symbolizes Moscow's pivotal turn to Asia away from debt-stricken Europe.

"It's important to build bridges, not walls. We must continue striving for greater integration," Putin told the APEC leaders, seated at a round table in a room with a view of the $1 billion cable-stayed bridge, the largest of its kind.

"The global economic recovery is faltering. We can overcome the negative trends only by increasing the volume of trade in goods and services and enhancing the flow of capital."

Hu told business leaders before the summit the world economy was being hampered by "destabilizing factors and uncertainties" and the crisis that hit in 2008-09 was far from over. China would play its role, he said, in strengthening the recovery.

"We will work to maintain the balance between keeping steady and robust growth, adjusting the economic structure and managing inflation expectations. We will boost domestic demand and maintain steady and robust growth as well as basic price stability," he said.

Hu spelled out plans for China, whose economic growth has slowed as Europe's debt crisis worsened, to pump $157 billion into infrastructure investment in agriculture, energy, railways and roads.

Hu steps down as China's leader in the autumn after a Communist Party congress, but he promised continuity and stability for the economy.

Putin, who has just begun a new six-year term as president, said on Friday Russia would be a stable energy supplier and a gateway to Europe for Asian countries, and also pledged to develop his country's transport network.

RUSSIA LOOKS EAST

The relative strength of China's economy, by far the largest in Asia and second in the world to the United States, is key to Russia's decision to look eastwards as it seeks to develop its economy and Europe battles economic problems.

APEC, which includes the United States, Japan, South Korea, Indonesia and Canada, groups countries around the Pacific Rim which account for 40 percent of the world's population, 54 percent of its economic output and 44 percent of trade.

APEC members are broadly showing relatively strong growth, but boosting trade and growth is vital for the group as it tries to remove the trade barriers that hinder investment.

The European Union has been at odds with both China and Russia over trade practices it regards as limiting free competition. Cooperation in APEC is also hindered by territorial and other disputes among some of the members.

Putin, 59, limped slightly as he greeted leaders at the summit. Aides said he had merely pulled a muscle. Underlining Putin's good health, a spokesman said he had a "very active lifestyle."

Discussions at the two-day meeting will focus on food security and trade liberalization. An agreement was reached before the summit to slash import duties on technologies that can promote economic growth without endangering the environment.

Breakthroughs are not expected on other trade issues at the meeting, which U.S. President Barack Obama is missing. He has been attending the Democratic Party convention and Washington is being represented by Secretary of State Hillary Clinton.

U.S. officials say Clinton's trip is partly intended to assess Russia's push to expand engagement in Asia, which parallels Washington's own turn towards the Asia-Pacific region.

Also missing the summit was Australian Prime Minister Julia Gillard. Putin said she had dropped out because her father had died.

(Additional reporting by Gleb Bryanski, Andrew Quinn, Katya Golubkova, Douglas Busvine, Denis Pinchuk and Andrey Ostroukh; Editing by Janet Lawrence)

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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.
 

Chinese Astronauts return to Earth safely; Success on road to deep space!

Module re-entry process: Shenzhou-9’s journey back to earth CCTV News - CNTV English.



After thirteen days in space, the astronauts aboard the Shenzhou-9 spaceship will return to the Earth.

The first stage of the process is for the re-entry module to separate from the orbital capsule.

The propulsion module will later separate from the re-entry module, after it’s propelled it to a lower altitude of 140 kilometers. The re-entry module will then adjust its position before making its entry into the atmosphere. Well, as we can see, according to accurate calculation, the module is to land at Siziwang Banner, in central Inner Mongolia Autonomous Region.

Let's see this simple illustration. The module will pass through the so-called "black out area". At this stage, communication is impossible, due to high levels of friction with the atmosphere, causing extreme temperatures. When the capsule is out of the black-out area, several parachutes will be released one by one, to gradually slow the module's descent. When the vehicle gets below 10km, the heat shield will be jettisoned. At 1 meter above the ground, 4 small engines will ignite to reduce the speed to a safe range for landing. Once on the ground; the re-entry module will communicate with the control center to show its location, so rescue teams find it as soon as possible.

The completion of the Shenzhou-9 mission will bring China one step closer to building its own fully-fledged space station by 2020. China's permanent space station is expected to weigh about 60 tons, so it require rockets such as Long March 5 rockets to send different parts into space. At the hub of China's future space station will be the Core Module. It will control the station's altitude, propulsion, and life support systems for the astronauts.

At one end of the core module is a small connecting chamber. On each side of this are the two Laboratory Modules. Experiments can be carried out both inside and outside these modules, testing such things as exposure to cosmic rays, a vacuum environment, and solar winds. On the other end of the space station is the cargo delivery module, which will carry supplies, equipment and energy stocks. Back on the other side, attached to the connecting chamber will be the Shenzhou spacecraft which will travel between the space station and the earth. China's space station is an ambitious and complicated structure but it’s still only about one-sixth the size of the International Space Station.

Currently flying at an orbit of around 400 kilometers above the earth is the International Space Station. The US and Russia have led the design and construction of the ISS, with 16 other countries also contributing to the project. China's main contribution to the ISS is the Alpha Magnetic Spectrometer. It is a particle physics experimental instrument designed to search for anti-matter and dark matter. These two mysteries have been puzzling scientists for decades according to theory, they should exist.  But so far, no direct evidence has been found. It's planned that the ISS will plunge back into the ocean in 2028.

By that time, if China's space program goes according to plan, China's space complex will then be the only space station orbiting the earth.

The Success on road to space!

BEIJING, June 29 (Xinhua) -- The return of the Shenzhou-9 spacecraft to Earth Friday morning marked the end of a 13-day journey through space for three Chinese astronauts.

But it also marked the beginning of a new journey for China as it inches closer to its goal of building a space station.

China's space program has accomplished in 20 years' time the same tasks that took developed nations nearly half a century to accomplish, including manned space flights, space walks and a manned space docking procedure.

The recent successful docking of the Shenzhou-9 and Tiangong-1 lab module marks a new height for Chinese space exploration, as well as a new leap forward for national rejuvenation.

China's space exploration took a long time to ramp up. In 1992, 43 years after the founding of the People's Republic of China, the country decided to establish its manned space program.

Scientific policies have facilitated the program and helped it develop comprehensively and sustainably. The aerospace industry was given a larger role in the country's 12th Five-Year Plan (2011-2015) and authorities have taken pains to implement every step of the manned space program with great care.

The success of the Shenzhou-9 has demonstrated the power of China's collective wisdom and capability. About 110 research institutions have directly participated in the manned space program thus far, with more than 3,000 institutions and units coordinating their efforts.

The mission has also demonstrated the success of socialism, showing that it has the political advantage of accumulating wisdom and resources to achieve great things.

Facing limitless space, China's space program is only just beginning. The country will face challenges on its road to rejuvenation, but the success of the mission has boosted national confidence and shown China's people that the country's space program will have a bright future.- Xinhuat

Touchdown! Chinese Space Capsule With 3 Astronauts Returns to Earth 

by SPACE.com Staff

Date: 28 June 2012 Time: 10:06 PM ET

This photograph of a China CCTV broadcast shows the Shenzhou 9 space capsule lying on its side after landing in an autonomous region of China in Inner Mongolia on June 29, 2012 Beijing time (10 p.m. June 28 EDT) to end a 13-day mission to the Tiangong 1 space lab module.
CREDIT: CCTV

Three Chinese astronauts returned to Earth Thursday (June 28) after 13 days in space on a historic mission that made their country only the third nation ever to successfully dock a manned spacecraft to another in orbit.

China's Shenzhou 9 space capsule landed at about10 p.m. EDT (10 a.m. Friday, June 29 Beijing time) in Inner Mongolia, an autonomous region of the People's Republic of China.  To prepare for their journey home, the space crew — which included China's first female astronaut Liu Yang — separated the Shenzhou 9 capsule its target, the Tiangong 1 prototype space module, on Wednesday (June 27).

Their landing was broadcast live on China's state-run CCTV television network, showing the capsule streaking through the atmosphere like a meteor, deploying its main parachute, then making the final landing and rolling over on its side in a rough touchdown.

"We fulfilled the first manned manual docking," mission commander Jing Haipeng told CCTV reporters after exiting the Shenzhou 9 capsule. His comments in Chinese were translated into English by CCTV. "For the country and people all across the country, thank you for your concerns."  [Photos of China's Shenzhou 9 Mission]

Jing and crewmates Liu Yang and Liu Wang appeared to be in good health after their space mission. The trio wore broad smiles and waved to cameras after leaving their spacecraft, but did sit in reclined chairs to help ease their adaptation back to Earth's gravity after nearly two weeks in weightlessness.

Shortly after the landing, China's Premier Wen Jiabao proclaimed the Shenzhou 9 mission a complete success.

"This manned docking mission of Tiangong 1 and Shenzhou 9 marks a large milestone, a major breakthrough for China to master the space docking technology," Wen said while reading a statement. "And also, it marks a decisive step forward on China's second step on its space strategy."

Chinese astronaut Jing Haipeng, commander of the Shenzhou 9 mission, salutes after exiting the space capsule following landing in Inner Mongolia autonomous mission on June 28, 2012.
CREDIT: China Central Television/CCTV

China's big space leap

China's Shenzhou 9 mission, which included successful displays of manual and automatic dockings, represented an important leap forward for China's space program. In addition to being China's longest space mission to date, it also tested technology vital for the country's goal of building space station in orbit by the year 2020.

"Chinese astronauts have their own home in space now," Jing told China's President Hu Jintao on Tuesday (June 26) during a special call according to the state-run Xinhua news agency. "We are proud of our country!"

And while the orbital linkups are important technological achievements for China, the mission also carried a wider social impact because it included the country's first female astronaut: the 33-year-old Liu Yang.

"It was like a home in Tiangong, and I feel very happy and proud of my country," Liu Yang told reporters after landing.

Jing, the commander, is China's first veteran astronaut to fly in space twice. The third crewmember, Liu Wang, served as the Shenzhou 9 docking pilot.

"It feels really good to feel the ground and to be back home," Liu Wang said.

Shenzhou 9 mission, which launched into space on June 16, accomplished China's first manned space docking, after the spacecraft robotically docked to Tiangong 1 on June 18. Several days later, on June 24, the astronauts backed away from the orbiting module and parked their Shenzhou 9 spacecraft once more, demonstrating manual control over the procedure as well.



The successful linkups made China only the third country, after the United States and Russia, to accomplish manned dockings in orbit.

The Shenzhou 9 mission, as well as experiments performed aboard Tiangong 1 throughout the flight, tested technologies that will help China fulfill its goal of building a 60-ton space station in orbit by 2020.

"The data will help us improve technologies for astronauts' future, long-term stays in a space station," said Chen Shanguang, chief commander of the mission's astronaut system, according to Xinhua

China is not a member nation of the $100 billion International Space Station in low-Earth orbit, a roughly 430-ton orbiting outpost that is jointly operated by more than a dozen countries.

But Chinese officials have outlined an ambitious space program for the nation, which includes collecting samples from the moon and robotically returning them to Earth before landing astronauts on the lunar surface.

The Shenzhou 9 mission is China's fourth manned spaceflight. Previous expeditions were launched in 2003, 2005 and 2008.

The Tiangong 1 test module was launched into orbit in September 2011. In November, a robotic spacecraft, called Shenzhou 8, completed the country's first unmanned space docking. According to Chinese officials, Tiangong 1 has performed well, and could play host to another crew in the near future.

"Based on current conditions, the service of Tiangong 1 can be extended," said He Yu, chief commander of the Shenzhou 9 spacecraft, reported Xinhua. "It has consumed less than one-fourth of its fuel and no back-up systems have been used."

Depending on its condition, the module could remain in orbit as China continues its space station construction efforts.

"If Tiangong 1 was in perfect shape, it could work side by side with Tiangong 2, which will be launched in the future," He said.

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Who leads Asia? Can Asia step up to 21st century leadership?

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Can Asia step up to 21st century leadership?

ANALYSIS by Amitay Acharya

IF one had any doubts about the world being in the midst of a huge power shift, recent events should have dispelled those.

From Europeans appealing to China to save the euro to President Barack Obama arriving in Bali to lobby for Asian support, the transformation is evident. Less clear is who will lead the world in the 21st century and how.

There is plenty of talk about the 21st century being an Asian century, featuring China, Japan and India.

These countries certainly seek an enhanced role in world affairs, including a greater share of decision-making authority in the governance of global bodies. But are they doing enough to deserve it?

The intervention in Libya, led by Britain and France, and carried out by Nato, says it all. There is no Nato in Asia, and there’s unlikely to be one.

China and Japan are the world’s second and third largest economies. India is sixth in purchasing-power parity terms. China’s defence spending has experienced double-digit annual growth during the past two decades. India was the world’s largest buyer of conventional weapons in 2010.

A study by the US Congressional Research Service lists Saudi Arabia, India and China as the three biggest arms buyers from 2003 to 2010. India bought nearly US$17bil (RM54.17bil) worth of conventional arms, compared with US$13.2bil (RM42.06bil) for China and some US$29bil (RM92.4bil) for Saudi Arabia.

Chinese, Indian and Japanese foreign policy ideas have evolved. India has abandoned non-alignment. China has moved well past Maoist socialist internationalism. Japan pursues the idea of a “normal state” that can say yes to using force in multilateral operations.

Unfortunately, these shifts have not led to greater leadership in global governance. National power ambitions and regional rivalries have restricted their contributions to global governance.



President Hu Jintao has defined the objective of China’s foreign policy as to “jointly construct a harmonious world”. Chinese leaders and academics invoke the cultural idea of “all under heaven”, or Tianxia. The concept stresses harmony – as opposed to “sameness” – thus signalling that China can be politically non-democratic, but still pursue friendship with other nations.

China has increased its participation in multilateralism and global governance, but not offered leadership. This is sometimes explained as a lingering legacy of Deng Xiaoping’s caution about Chinese leadership on behalf of the developing world. More telling is China’s desire not to sacrifice its sovereignty and independence for the sake of multilateralism and global governance.

Japan’s policy conception of a “normal state”, initially presented as a way of reclaiming Japan’s right to use force, but only in support of UN-sanctioned operations, may sound conducive to greater global leadership.

But it also reflects strategic motivations: to hedge against any drawdown of US forces in the region, to counter the rise of China and the growing threat from North Korea, and to increase Japan’s participation in collective military operations in the Indian Ocean and Persian Gulf regions.

Beset by chronic uncertainty in domestic leadership and a declining economy, Japan has not been a proactive global leader when it comes to crisis management.

Its response to the 2008 global financial crisis was a far cry from that to the 1997 crisis, when it took centre-stage and proposed the creation of a regional monetary fund, a limited version of which materialised eventually within the Chiang Mai Initiative.

In 2005, Indian Prime Minister Manmohan Singh asserted that “the 21st century will be an Indian century”.

Manmohan expressed hope that “the world will once again look at us with regard and respect, not just for the economic progress we make but for the democratic values we cherish and uphold and the principles of pluralism and inclusiveness we have come to represent which is India’s heritage as a centuries old culture and civilisation”.

Yet, the Indian foreign-policy worldview has shifted in the direction of greater realpolitik. Some Indian analysts such as C. Raja Mohan have pointed out that India might be reverting from Gandhi and Nehru to George Curzon, the British governor-general of India in the early 20th century.

Indian power projection in both western and eastern Indian Ocean waters is growing, thereby pursuing a Mahanian approach for dominance of the maritime sphere – named after US Admiral Alfred Thayer Mahan – rather than a Nehruvian approach. It is partly driven by a desire, encouraged by the US and South-East Asian countries, to assume the role of a regional balancer vis-à-vis China.

Asia’s role in global governance cannot be delinked from the question: Who leads Asia?

After World War II, India was seen as an Asian leader by many of its neighbours and was more than willing to lead, but unable to do so due to a lack of resources.

Japan’s case was exactly the opposite; it had the resources from the mid-1960s onwards, but not the legitimacy – thanks to memories of imperialism for which it was deemed insufficiently apologetic by its neighbours.

China has had neither the resources nor the legitimacy, since the communist takeover, nor the political will, at the onset of the reform era to be Asia’s leader.

In Asia today, although Japan, China and India now have the resources, they still suffer from a deficit of regional legitimacy. This might be partly a legacy of the past – Japanese wartime role, Chinese subversion and Indian diplomatic high-handedness. But their mutual rivalry also prevents the Asian powers from assuming regional leadership singly or collectively.

Hence, regional leadership rests with a group of the region’s weaker states: Asean. While Asean is a useful and influential voice in regional affairs, its ability to manage Asia is by no means assured.

Greater engagement with regional forums is useful for the Asian powers to prepare for a more robust role in global governance. So many of the global problems – climate change, energy, pandemics, illegal migration and more – have Asian roots.

By jointly managing them at the regional level, Asian powers can limit their rivalries, secure neighbours’ support, and gain expertise that could facilitate a substantive contribution to global governance from a position of leadership and strength. — The Daily Star/Asia News Network

> The author is the UNESCO chair in Transnational Challenges and Governance at American University and a senior fellow of the Asia Pacific Foundation of Canada. This is based on his article, “Can Asia Lead: Power Ambitions and Global Governance in the 21st Century”, International Affairs, vol. 87, no. 4, 2011.

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 Experts urge Europe to look toward Asia-Pacific

Prepare for combat, China’s Hu urges navy!

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Chinese President Hu Jintao Tuesday urged the navy to prepare for military combat amid growing regional tensions over maritime disputes and a US campaign to assert itself as a Pacific power.

The navy should “accelerate its transformation and modernisation in a sturdy way, and make extended preparations for military combat in order to make greater contributions to safeguard national security,” he said.

Addressing the powerful Central Military Commission, Hu said: “Our work must closely encircle the main theme of national defence and military building.”

His remarks, which were posted on a statement on a government website, come amid growing US and regional concerns over China’s naval ambitions, particularly in the South China Sea.



Chinese President Hu Jintao on Tuesday urged the navy to prepare for military combat, amid growing regional tensions over maritime disputes and a US campaign to assert itself as a Pacific power.

The navy should "accelerate its transformation and modernisation in a sturdy way, and make extended preparations for military combat in order to make greater contributions to safeguard national security," he said.

Addressing the powerful Central Military Commission, Hu said: "Our work must closely encircle the main theme of national defence and military building."

His comments, which were posted in a statement on a government website, come as the United States and Beijing's neighbours have expressed concerns over its naval ambitions, particularly in the South China Sea.

Several Asian nations have competing claims over parts of the South China Sea, believed to encompass huge oil and gas reserves, while China claims it all. One-third of global seaborne trade passes through the region.



Vietnam and the Philippines have accused Chinese forces of increasing aggression there.

In a translation of Hu's comments, the official Xinhua news agency quoted the president as saying China's navy should "make extended preparations for warfare.

The Pentagon however downplayed Hu's speech, saying that Beijing had the right to develop its military, although it should do so transparently.

"They have a right to develop military capabilities and to plan, just as we do," said Pentagon spokesman George Little, but he added, "We have repeatedly called for transparency from the Chinese and that's part of the relationship we're continuing to build with the Chinese military."

"Nobody's looking for a scrap here," insisted another spokesman, Admiral John Kirby. "Certainly we wouldn't begrudge any other nation the opportunity, the right to develop naval forces to be ready.

"Our naval forces are ready and they'll stay ready."

State Department spokesman Mark Toner said: "We want to see stronger military-to-military ties with China and we want to see greater transparency. That helps answer questions we might have about Chinese intentions."

Hu's announcement comes in the wake of trips to Asia by several senior US officials, including President Barack Obama, Defense Secretary Leon Panetta and Secretary of State Hillary Clinton.

US undersecretary of defence Michelle Flournoy is due to meet in Beijing with her Chinese counterparts on Wednesday for military-to-military talks.

Chinese Premier Wen Jiabao last month warned against interference by "external forces" in regional territorial disputes including those in the South China Sea.

And China said late last month it would conduct naval exercises in the Pacific Ocean, after Obama, who has dubbed himself America's first Pacific president, said the US would deploy up to 2,500 Marines to Australia.

China's People's Liberation Army, the largest military in the world, is primarily a land force, but its navy is playing an increasingly important role as Beijing grows more assertive about its territorial claims.

Earlier this year, the Pentagon warned that Beijing was increasingly focused on its naval power and had invested in high-tech weaponry that would extend its reach in the Pacific and beyond.

China's first aircraft carrier began its second sea trial last week after undergoing refurbishments and testing, the government said.

The 300-metre (990-foot) ship, a refitted former Soviet carrier, underwent five days of trials in August that sparked international concern about China's widening naval reach.

Beijing only confirmed this year that it was revamping the old Soviet ship and has repeatedly insisted that the carrier poses no threat to its neighbours and will be used mainly for training and research purposes.

But the August sea trials were met with concern from regional powers including Japan and the United States, which called on Beijing to explain why it needs an aircraft carrier.

China, which publicly announced around 50 separate naval exercises in the seas off its coast over the past two years -- usually after the event -- says its military is only focused on defending the country's territory.

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Pentagon planning Cold War against China - AirSea ...

The role that the US plays in Asia: Containment of China!

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The role that the US plays in Asia

Comment by XUE LITAI

SINO-US ties were in focus at the recent Asia-Pacific Economic Cooperation (Apec) summit in Honolulu and the just concluded East Asia Summit (EAS) in Bali, especially because of the European economic and political crises.

It was not a good time for US President Barack Obama to attend the EAS, given the unstable state of the American economy, and the Congressional super committee’s failure on the federal budget.

The frictions between the United States and China – from the yuan’s exchange rate to the South China Sea disputes – are nothing new. But the problem now is that the two countries seem unable to narrow their perception gap.

Obama met with Premier Wen Jiabao twice during the EAS to say that China should allow the yuan to revalue more rapidly.

At the Apec summit in Hononulu, Obama had complained to President Hu Jintao that the yuan was undervalued and said it “disadvantages American business; it disadvantages American workers. And we have said to them that this is something that has to change”.

The Chinese leaders responded that the yuan’s exchange rate was not responsible for the US’ high trade deficit with China, instead structural problems in the American economy were to blame for that.

In fact, China has been emphasising the need for a new mechanism for global economic governance to increase “the voice of emerging markets and developing economies”.

Before the summits, US officials had said countries concerned should exercise self-restraint and refrain from taking any action that could escalate or complicate the territorial disputes in the South China Sea. The US remark was directed at China, too.

But before that, Obama had issued an indirect message to China saying: “We want you to play by the rules.”

He warned that “where we see rules being broken, we’ll speak out and, in some cases, we will take action.”

Chinese leaders and people, however, think that the US dragged the South China Sea disputes, an irrelevant issue, to the EAS to fulfil its own agenda.



To them, the US’ intention is clear: It is using the South China Sea disputes to drive a wedge between China and some of its South-East Asian neighbours, which have enjoyed “20 years of steady friendship”.

It is clear that the US is desperate to engage full-time and establish its diversified presence in Asia as part of its global repositioning strategy. Washington is in the process of one of the most important transitions, that is, repositioning and rebalancing its foreign policy priorities.

To that end, it has begun shifting its resources and capabilities from the Middle East and South Asia to East Asia. Recognising that the “American future is in Asia”, the US is hell-bent on establishing a strong presence in Asia.

In the 21st century, as US Secretary of State Hillary Clinton has said, the world’s strategic and economic centre of gravity “will be Asia Pacific”. Clinton said that with the withdrawal of American forces from Iraq and Afghanistan, the US had reached a “pivot point” that should allow it to “lock in a substantially increased investment – diplomatic, economic, strategic and otherwise – in this region”.

Obama soon underscored the shift by stressing: “There is no region in the world that we consider more vital than the Asia-Pacific region; we are going to prioritise this region.”

Such a strategic calculus makes US-China ties the most important and complex relationship Washington has ever established. Thus, the US has to have constructive engagement with China.

But simultaneously, some senior US officials also consider it necessary to continue their China-containment policy. As a result, the US is using the South China Sea disputes to prevent China’s influence from advancing southward
.
Actually, Obama’s decision to attend the EAS is symbolic of Washington’s policy shift towards Asia. In other words, the US’ purpose was to use the EAS to reduce China’s influence in the region.

The Obama administration has demonstrated the US’ established policy on containment of China over the past two years.

Once, Obama even declared: “We’ve brought more enforcement actions against China over the last couple of years than had taken place in many of the preceding years.”

Probably, his declaration was aimed partly at the strategic calculations mentioned above and partly to blunt criticism of his administration by trade unions and Republican rivals, who could accuse him of not taking tougher action against China in the run-up to next year’s presidential election.

The US’ focus on Trans-Pacific Partnership could be interpreted as part of its economic strategy to compete with China’s increasing influence in the region.

In response, China has announced that it would offer its South-East Asian neighbours US$10bil (RM31.8bil) in infrastructure loans and establish a three billion yuan (RM1.5bil) fund to accelerate maritime cooperation with Asean member states.

Among the areas covered by the fund are marine research, navigation safety and combating transnational crimes. Asean member states now look to China for economic revitalisation and seek security guarantee from the US.

But such is the triangular US-China-Asean ties that only after the US and China reach greater agreement over Asia-Pacific affairs can Asean member states overcome the dilemma of choice. — China Daily/Asia News Network

> The author is a research associate at the Center for International Security and Cooperation at Stanford University in California, US.

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Pentagon planning Cold War against China - AirSea Battle concept!

Pentagon planning Cold War against China - AirSea Battle concept!

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Pentagon battle concept has Cold War posture on China ...

By Bill Gertz The Washington Times

** FILE ** A security officer walks on the roof of the Pentagon. (AP Photo/Charles Dharapak)

The Pentagon lifted the veil of secrecy Wednesday on a new battle concept aimed at countering Chinese military efforts to deny access to areas near its territory and in cyberspace.

The Air Sea Battle concept is the start of what defense officials say is the early stage of a new Cold War-style military posture toward China.

The plan calls for preparing the Air Force, Navy and Marine Corps to defeat China's "anti-access, area denial weapons," including anti-satellite weapons, cyberweapons, submarines, stealth aircraft and long-range missiles that can hit aircraft carriers at sea.

Military officials from the three services told reporters during a background briefing that the concept is not directed at a single country. But they did not answer when asked what country other than China has developed advanced anti-access arms.

A senior Obama administration official was more blunt, saying the new concept is a significant milestone signaling a new Cold War-style approach to China.

"Air Sea Battle is to China what the maritime strategy was to the Soviet Union," the official said.

During the Cold War, U.S. naval forces around the world used a strategy of global presence and shows of force to deter Moscow's advances.

"It is a very forward-deployed, assertive strategy that says we will not sit back and be punished," the senior official said. "We will initiate."

The concept, according to defense officials, grew out of concerns that China's new precision-strike weapons threaten freedom of navigation in strategic waterways and other global commons.

Defense officials familiar with the concept said among the ideas under consideration are:

• Building a new long-range bomber.

• Conducting joint submarine and stealth aircraft operations.

• New jointly operated, long-range unmanned strike aircraft with up to 1,000-mile ranges.

• Using Air Force forces to protect naval bases and deployed naval forces.

• Conducting joint Navy, Marine Corps and Air Force strikes inside China.

• Using Air Force aircraft to deploy sea mines.

• Joint Air Force and Navy attacks against Chinese anti-satellite missiles inside China.

• Increasing the mobility of satellites to make attacks more difficult.

• Launching joint Navy and Air Force cyber-attacks on Chinese anti-access forces.



Pentagon press secretary George Little said the new office "is a hard-won and significant operational milestone in meeting emerging threats to our global access."

"This office will help guide meaningful integration of our air and naval combat capabilities, strengthening our military deterrent power, and maintaining U.S. advantage against the proliferation of advanced military technologies and capabilities," Mr. Little said.

He noted that it is a Pentagon priority to rebalance joint forces to better deter and defeat aggression in "anti-access environments."

Earlier this month, Defense Secretary Leon E. Panetta said during a visit to Asia that U.S. forces would be reoriented toward Asia as the wars in Iraq and Afghanistan wind down. The new focus will include "enhanced military capabilities," he said without elaborating.

The military officials at the Pentagon on Wednesday did not discuss specifics of the new concept. One exception was an officer who said an example would be the use of Air Force A-10 ground attack jets to defend ships at sea from small-boat "swarm" attacks.

China in recent years has grown more assertive in waters near its shores, harassing Navy surveillance ships in the South China Sea and Yellow Sea.

China also has claimed large portions of the South China Sea as its territory. U.S. officials said the Chinese have asserted that it is "our driveway."

The Pentagon also is concerned about China's new DF-21D anti-ship ballistic missile that can hit aircraft carriers at sea. Carriers are the key power-projection capability in Asia and would be used in defending Japan, South Korea and Taiwan.

"The Air Sea Battle concept will guide the services as they work together to maintain a continued U.S. advantage against the global proliferation of advanced military technology and [anti-access/area denial] capabilities," the Pentagon said in announcing the creation of a program office for the concept.

Although the office was set up in August, the background briefing Wednesday was the first time the Pentagon officially rolled out the concept.

The Army is expected to join the concept office in the future.

One defense official said the Army is involved in cyberwarfare initiatives that would be useful for countering anti-access weapons.

"Simply put, we're talking about freedom of access in the global commons. Increasing ranges of precision fire threaten those global commons in new expanding ways," said a military official speaking on condition of anonymity. "That, in a nutshell, is what's different."

Defense officials said some administration officials opposed the new concept over concerns it would upset China. That resulted in a compromise that required military and defense officials to play down the fact that China is the central focus of the new battle plan.

A second military official said the new concept also is aimed at shifting the current U.S. military emphasis on counterinsurgency to the anti-access threats.

The office was disclosed as President Obama sets off this week on trip to Asia designed to shore up alliances. He is set to meet Chinese President Hu Jintao in Hawaii on Saturday.

The concept grew out of the 2010 Quadrennial Defense Review that, in its early stages, had excluded any mention of China's growing military might.

China was added to the review after intervention by Andrew Marshall, director of the Pentagon's Office of Net Assessment, and Marine Corps Gen. James N. Mattis, at the time head of the Joint Forces Command.

China military specialist Richard Fisher said the new Air Sea Battle office is necessary but may be "late in the game."

"A Pentagon office focused on China's military challenges in Asia or beyond will be insufficient," said Mr. Fisher, of the International Assessment and Strategy Center. "This challenge will require Cold War levels of strategic, political and economic policy integration well beyond the Pentagon's writ."

Said former State Department China specialist John Tkacik: "This new Air Sea Battle concept is evidence that Washington is finally facing up to the real threat that China has become an adversarial military, naval and nuclear power in Asia, and that the only way to balance China is to lend the weight of U.S. air and naval forces to our Asia-Pacific allies' ground forces."

© Copyright 2011 The Washington Times

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Is China still a developing nation?

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Global Trends By MARTIN KHOR

Last week, US President Barack Obama said China has ‘grown up’ and must take on the responsibilities of a developed country. But is China already grown up – or is it still a developing country?

 China’s fight to retain its developing country status is of interest to other developing countries, for they will be next if China loses that fight

IS CHINA still a developing country, or has it joined the ranks of the advanced developed countries? This has become a topical question, especially after US Presi-dent Barack Obama reportedly told Chinese President Hu Jintao last week that China had to act more responsibly now that it has “grown up”.

This interesting conversation took place at the Asia-Pacific Economic Cooperation (Apec) Summit in Hawaii. And when Obama met Chinese premier Wen Jiabao at the East Asia Summit hosted by Asean in Bali last week, he must have said something similar, in between chiding him for not allowing the Chinese currency to shoot up.

By telling China that it has become a grown-up, Obama meant that China should now be treated just like the US or Europe in terms of international obligations – like taking on binding commitments to reduce greenhouse house gas emissions, cutting its tariffs to near zero and giving up its subsidies under the World Trade Organisation, giving aid to poor countries and letting its currency float.

This is what the US has been pressurising China to do in the recent negotiations in climate change, in the WTO’s Doha talks, at various meetings of the United Nations and at the Apec summit.

In fact, most of the important multilateral negotiations are stalled because the US (with Europe and Japan standing behind it) insists that China gives up its developing country status and takes on the obligations of a developed country.

It is not only China, of course. They also want India and Brazil to do likewise. And often also mentioned are South Africa and the wealthier or bigger Asean countries.

The main focus, however, is China. There has been growing respect for – or, rather, fear of – China, that it is growing so fast and has become so big and powerful it might swallow up the Western world in a decade or two.



So, the question is pertinent. Is China a developed country?

The answer depends on what criteria are used. In absolute terms, China is indeed a big economy. Its GNP is second only to that of the United States. It has become the biggest emitter of greenhouse gases, having overtaken the United States.

But this is mainly because China is a big country in terms of population. With 1.3 billion people, it is the world’s most populous country.

However, despite the mighty image it has been given by the world media, China looks like a very ordinary developing country once we look at per capita indicators.

Whether one is a developed or developing country is defined by the UN and by the IMF and World Bank, and the most important criterion is income per capita.

By that yardstick, China is very much a developing country.

The International Monetary Fund, in its latest World Economic Outlook, classifies China as a developing country, with a per capita Gross Domes­­-tic Product last year of US$4,382 (RM13,852), ranked a lowly 91 of 184 countries in the world.

Six African countries (Equatorial Guinea, Gabon, Botswana, Mauritius, South Africa, Namibia) had GDP per capita levels higher than China.

China’s GDP per capita was less than a tenth that of the United States, which had US$46,860 (RM148,129). Luxembourg had the highest ranking, US$108,952 (RM344,408). Ma­­laysia was No. 65 at US$8,423 (RM26,626) and Singapore No. 15 at US$43,117 (RM136,297).

Economists also use the measure of GNP per capita “in gross purchasing power” (GPP). This is to take into account the different costs of living in different countries. People living in countries with a lower cost of living could enjoy a higher li- ving standard than their country’s GNP implies.

Last year, in GDP (at GPP) per capita terms, China was lower still at No. 95 with US$7,544 (RM23,847), just below Ecuador and just above Albania, El Salvador and Guyana.

By contrast, Malaysia was at No. 58 with GPP per capita of US$14,744 (RM46,607) while Singapore was No. 3 with US$56,694 (RM179,295).

The UN Development Programme has a human development index (HDI) that measures quality of life in terms of income, schooling, life expectancy and so on.

The Human Development Report 2011 shows China at No. 101 of 187 countries with a HDI of 0.687 and in a category of “medium human development”.

What about climate change? China, again mainly because of its huge population, is the top greenhouse gas emitting country, with a total of 7,232 megatonnes of CO2 equivalent in 2005. The US is second with 6,914 Mtonnes. India was fifth with 1,859 Mtonnes.

But in per capita terms, China’s emissions level was 5.5 CO2-equivalent per person, ranked 84 in the world. By contrast, the US’ per capita emission was 23.4 CO2 equivalent, Australia’s 27.3, Russia’s 13.7, Ger­many’s 11.9, Japan’s 10.5, Singa­pore’s 11.4, Malaysia’s 9.2, South Africa’s 9.0, Brazil’s 5.4, Indonesia’s 2.7, India’s 1.7 and Rwanda’s 0.4.

Thus, as No. 91 country in the world in GDP per capita, No. 101 in human development index and No. 84 in per capita emissions, China is looking like, and is, a middle-level or even lower-middle level developing country, with not only all the developed countries ahead of it, but also many developing countries, too.

China also shares the same characteristics of many developing countries. More than 700 million of its 1.3 billion people live in the rural areas, and in 2008 there was a large imbalance, with the urban disposable household income 3.3 times bigger on average than in rural areas.

According to China’s own standard, 43 million Chinese are low-income (below US$160 (RM506) a year). By the higher UN standard, 150 million people are poor, living on less than US$1 (RM3.16) a day.

Each year, 12 million people are newly added to the job market, outnumbering the population of Greece, and it is quite a task to find them jobs.

This does not deny the fact that there are high points in China’s development: its big GNP in absolute terms, its high rate of economic growth, the foreign reserves of above US$3 trillion (RM9.5 trillion).

But the fact remains that while China has become a big economic power in absolute terms, it is still a middle-level developing country, with the socio-economic problems that most developing countries have.

And if China is pressurised to take on the duties of a developed country and to forgo its status and benefits of a developing country, then many other developing countries that are ahead of China (at least in per capita terms) may soon be also asked to do the same.

Thus China’s fight to retain its developing country status is of interest to other developing countries, for they will be next if China loses that fight.

Can EU solve its own debt crisis?

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EU can solve its own crisis, no need for China to step in

By TEE LIN SAY linsay@thestar.com.my

SERI KEMBANGAN: China does not need to help in the eurozone debt crisis because Europe has enough money to solve the problem on its own, said Standard Chartered head of research (east global research) Nicholas Kwan.



“It is now politics that is getting in the way,” he said at a discussion on “Building Financial Hubs Rethinking the World of Money” at the 3rd World Chinese Economic Forum.

Kwan said people must not be misled to think that with China stepping in, the eurozone problem could be solved. Europe's economy is US$14 trillion (RM42 trillion), while China's US$3.26 trillion (RM9.78 trillion) in foreign reserves is only a quarter of that figure.

“To ask China to help would be to give China some limelight. Even if China were to help, they cannot expect China to help in a big way. If Germany is not interested to help, then why should China?”

Kwan said China had spent too much money investing, particularly in US treasuries, which were yielding a very low interest rate.

“I don't think China can cut down anytime soon in US treasuries, but they can do some passive diversification. Moving forward, they can reduce the proportion of new investments in the treasuries,” he said.

Kwan said that one good thing about the financial crisis was that every economy had a share in it. In the case of China, it had invested too much US dollars to a single huge borrower. “As everyone is affected, everybody has an interest for the world to recover,” he said.

IHS senior director and Asia-Pacific chief economist Rajiv Biswas said that growth for Europe in the medium term would be constrained at less than 2% but, at the same time, would not be negative.

Rajix expected moderately positive growth in the United States, with gross domestic product (GDP) expanding at an average of 2% over the next decade.

He said that much of China was moving in the middle-income group. “A large share of GDP to consumption will increase as a result of this. Moving forward, domestic consumption in China will become a lot more important,” he said.

Kwan added that previously, if growth in the United States and Europe were to stop, other economies would follow suit. However, this has now changed, especially in Asia and China, as the emerging economies are now able to create markets among themselves.



“While Asia would still be affected by the slowdown in the West, now they can offset some of the growth that is missing,” he said.

Tembusu Partners Pte Ltd chairman Andy Lim said the four sectors he liked in China were healthcare, resources, clean technology and education.

“When we invest in China, we never ask them to show us their books. We know it is of no use. What we first do is to spend time getting to know these entrepreneurs in the first 12 months. Secondly, we talk to their peers.

“Then thirdly and very importantly, we need to know what the entrepreneur's relationship with the local authorities are. This makes a huge difference to the bottomline. Finally, we look at their books,” said Lim.

Maybank Investment Bank Bhd director and head of dealing, equities, Lok Eng Hong said Malaysia recently made it as China's top 10 investment destinations. The top few destinations were Hong Kong, the United States, South Korea and Australia.

Chinese President Hu delivers speech at G20 Summit

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In French resort city of Cannes, Chinese President Hu Jintao has delivered a speech at the G20 Summit. He pointed out that some major economies are experiencing an economic slowdown, and some countries are facing acute sovereign debt problems. Hu called for greater attention and more concerted efforts to solve these problems.

In his speech, Hu Jintao pointed out that the world economy is facing instability and uncertainty and encountering growing risks and challenges. As the premier forum for international economic cooperation, the G20 must work to address the key problems, boost market confidence, defuse risks and meet challenges, and promote global economic growth and financial stability.

Hu also made five specific proposals. First, ensuring growth while paying attention to balance. He called on different countries to introduce new and strong measures to ensure that the fiscal and monetary policies are fully implemented and that funding is channeled into the real economy to boost production and employment.

Second, he urged pursuit of a win-win outcome through cooperation. Hu said world leaders should strengthen unity and send a strong signal of cooperation to the world so as to boost the confidence of the international community in global economic recovery and development.

Third, improve governance in the course of reform. Hu proposed that the world should advance the reform of the international monetary system in a steady manner and oppose trade and investment protectionism in order to build a fair, equitable and non-discriminatory international trading system.

Hu’s fourth proposal was to strive for progress through innovation. He urged innovative thinking, a system and mode for advancing economic and social development and to bring into full play the basic role of the market in resources allocation while avoiding blind pursuit of profit and malicious competition.

Finally, he called on promoting common prosperity through development. He said that as a developing country, China stands ready to promote mutual assistance with other developing countries and will work with them to advance durable peace and common prosperity.

To further help the least developed countries in their development endeavor, China will, in the context of South-South cooperation, give zero-tariff treatment to 97 percent of tariffed items exported to China from the least developed countries that have diplomatic ties with China.

This year marks the tenth anniversary of China’s accession to the WTO. In the past decade, China’s economy has made significant advances and its contributions to world economic growth. On the other hand, China is confronted with quite a few challenges in its efforts to maintain steady and fast growth. Hu said he was convinced that, through hard work and with the understanding and support of the international community, China’s economy has bright prospects. And continued steady and fast economic growth in China will serve the interest of global economic growth.

Hu calls for joint efforts to promote growth, financial stability
Chinese President Hu Jintao on Thursday urged the world's major economies to work together to promote growth and financial stability. "It is imperative that we stand on a higher plane, transcend differences on specific issues, move beyond short-term considerations, and jointly seek ways to overcome the crisis and sustain development," Hu told the Group of 20 (G20) summit here. <Full Story>

China makes more contributions to world economic growth: Hu
Chinese President Hu Jintao said Thursday that his country is making more contributions to world economic growth as its economy has made strides in the past decade. <Full story>

China pledges more help to other developing countries
Chinese President Hu Jintao said Thursday that his country will provide more help to other developing countries. <Full story>

Chinese President Hu's speech at G20 Summit in Cannes

China's Hu Says Europe Can Solve Crisis On Its Own


(RTTNews) - Chinese President Hu Jintao said on Thursday that Europe has the absolute "wisdom and ability" to solve its debt problems. 

After meeting French President Nicolas Sarkozy at Cannes ahead of the G20 meeting, he said that recent reform package agreed upon by EU leaders during last week's summit demonstrated Europe's determination and will to end the crisis.

According to a statement from the Ministry of Foreign Affairs, Hu said that he expects the implementation of the reforms to solve all the difficulties currently facing the region, and help in its economic recovery.

by RTT Staff Writer

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• Eurozone seeks bailout funds from China Oct 29, 2011
• Q&A: Why China won't ride to Europe's rescue (cnn.com)
• China to Possibly Aid Europe and Invest in Financial Bailout (prweb.com)
• We can't cure Europe's malaise, says China (independent.co.uk)