Tag Archives: Kurt Campbell

China News Update, July 5, 2012 – U.S.–China ties, South China Sea

Chinese Vice Foreign Minister Cui Tiankai speaks at the Asia Society in Hong Kong July 5, 2012.

  • Today’s news opens with a speech July 5 in Hong Kong by Chinese Vice Foreign Minister Cui Tiankai, a key figure in Chinese relations with the United States. The speech calls for “building a new type of relationship between major countries here in the Asia-Pacific,” a key Hu Jintao phrase from the Strategic and Economic Dialogue (S&ED) between the United States and China in May [speech in Chinese / in English]. The Xinhua storyabout the speech also emphasized this new relationship, suggesting that the idea of something like a U.S.–China “special relationship” is gaining traction in Chinese policy circles.

    The remainder of the speech emphasizes the need for expanded mutual trust between the two countries, and the importance of the Asia-Pacific region as a locus for this relationship. None of this is groundbreaking, but I think it’s worth noting that this is one of the highest-level speeches on the United States since the May meetings that coincided with a diplomatic tangle over the fate of Chen Guangcheng, the self-taught lawyer who escaped home detention and entered the U.S. embassy in Beijing, eventually ending up as a special student at New York University Law School. Cui specifically mentions S&ED as a successful development, and calls out U.S. Assistant Secretary of State Kurt Campbell, who, along with Cui, was reportedly at the center of tense negotiations over Chen.

  • The other big news come from U.S. President Barack Obama, whose administration has filed a WTO complaint against China over auto tariffs. The timing had clear political content, as Obama is beginning a campaign trip in the Midwest, where much of the U.S. auto industry makes its home.
  • Meanwhile, the Committee of 100, a group of prominent Chinese Americans, released its 2012 survey of U.S.–China public opinion [pdf] about bilateral ties. The executive summary is worth a skim, as it contains a laundry list of findings.
  • Zhou Yongkang, for one, is not a fan of U.S. opinions on China. According to an AFP story:

    “We will never change in our endeavour to defend the party’s leading role and socialism with Chinese characteristics,” he wrote in the latest edition of a Communist Party publication, “Qiushi”.”We will resolutely resist the attacks of hostile forces on our nation’s political and judicial systems, and we will resolutely resist the influence of mistaken Western political and legal views.”

    Zhou was writing in his position as head of the party’s Politics and Law Commission, which oversees China’s courts, prosecution and police.

  • And the U.S. State Department expressed displeasure with Chinese online censorship after Bloomberg News’ website after its blockbuster story on the family finances of Chinese Vice President Xi Jinping.

As always, there has been movement in the South China Sea

  • The Philippines may ask for U.S. spy plane assistance in areas disputed with China, Philippine President Benigno Aquino said, reportedly referring to P3C Orion aircraft. (July 2)
  • The People’s Daily that day also accused the Philippines of attempting to stir up trouble in the region ahead of the ASEAN Foreign Ministers’ Meeting July 9. (English of full article.)
  • The Philippine military has “no problem” with Chinese patrols near disputed islands, according to a media report, as long as they stay in the “freedom of navigation area”—i.e. international waters where any ship has a right to be. (July 3)
  • The Philippines issued a new “note verbale,” a type of diplomatic communication, objecting to China’s plans with its newly upgraded administrative distinction for the administration of some of the islands it claims in the South China Sea, a Philippine news site reports. “Sansha city” officially includes both an island disputed with Vietnam and the Scarborough Shoal, which China and the Philippines disagree over. (July 4)
  • Chinese Maritime Surveillance ships are patrolling within 1 nautical mile of the Nansha islands, Xinhua reported.
  • The Chinese government announced it would open a research station in the “Zhongsha” islands, part of the controversial Sansha City. A quick check suggests these “islands” are not even above water all of the time, and they have not been part of the recent dust-ups with Vietnam or Philippines. (July 5)
  • An Economist story comes with a nice map that includes oil claims.

Daily Update, June 29, 2012: Rich leading families, NYT China, South China Sea

Today’s links begin with an exhausting-sounding investigation from a team of Bloomberg reporters into relatives of Chinese Vice President Xi Jinping, who is expected to become the country’s top leader this fall. Sometimes through assumed names, holding companies, and other tactics, many of Xi’s relations have significant business and real estate holdings. [READ THE STORY]

China’s “outward direct investment” (ODI) is a “game changer,” says Columbia University’s Jeffrey Sachs. Peking University’s Yiping Huang adds details:

So China is leveraging its ODI to buy natural resources, acquire strategic assets, and set up companies that will facilitate exports. “The single focus of all these activities is to strengthen and improve the competitiveness of [their] factories at home,” he says.

Huang calls this the “Chinese model” of ODI but says it is hardly unique to China. Other rapidly developing economies, such as Korea and Brazil, are pursuing similar strategies, but those countries’ outside initiatives have been overshadowed by China’s massive capital resources, he says. “The difference between China and Korea is that Korea is a small country,” Huang says. [FULL STORY]

There might be a big, non-resource investment coming up: China Development Bank is looking at a $1.7 billion tie-up with a San Francisco real estate developer.

The South China Sea is still keeping things interesting.

  • Philippine officials said their planes spotted Chinese fishing ships back in the area surrounding the disputed Scarborough Shoal on Monday.
  • On Wednesday, a new spat between China and Vietnam over oil exploration in the disputed Paracel Islands added to the recent bilateral dust-up that has seen Vietnam passing a law supporting its claim to the islands and China upgrading the administrative status of three of the islands.

    China National Offshore Oil Corp. said it was offering a new batch of oil-exploration blocks inside the 200-nautical-mile exclusive economic zone granted to Vietnam under the United Nations’ Law of the Sea.

    Vietnam’s government quickly objected, saying the Chinese state oil firm was moving into its territorial waters. On Wednesday, state-run Vietnam Oil & Gas, or PetroVietnam, weighed in, showing how territorial claims in the sea are increasingly being backed up by powerful companies in addition to rival governments, and potentially adding new sources of tension to the conflict. [FULL STORY]

  • On Thursday, a Chinese Defense Ministry spokesman said China is considering setting up a military unit in “Sansha city,” the newly created prefecture-level body that encompasses three islands also claimed by Vietnam. [China Daily report]
  • The official also said China is sending combat-ready patrols to the Spratly Islands.
  • July 2–10, the United States and the Philippines are planning joint military exercises in the South China Sea.

Speaking at a CSIS conference Wednesday, U.S. Assistant Secretary of State Kurt Campbell said the United States wants to work with China on the South China Sea, according to a press report. From the video: “We will have areas of difference, we will have areas where we compete… we want to build a strong, durable partnership with China that works for everyone” to build peace in Southeast Asia.