Asian political parties

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CPC to beef up exchange with Asian political parties, says Chinese vice president

Chinese Vice President Xi Jinping meets with the delegates of the Poverty Alleviation Conference of the International Conference of Asian Political Parties in Beijing, capital of China, July, 19, 2010. (Xinhua/ Li Tao)

Chinese Vice President Xi Jinping on Monday pledged to step up exchanges and cooperation between the Communist Party of China (CPC) and other Asian political parties.

Xi made the pledge in his meeting with delegates attending the Poverty Alleviation Conference of the International Conference of Asian Political Parties (ICAPP) held from July 16 - 18 in Kunming, capital city of southwest China's Yunnan Province.

Xi also noted the CPC successfully hosted the third ICAPP meeting six years ago.

"The Kunming Proposal on Poverty Alleviation adopted at the just-concluded conference will not only boost cooperation between Asian political parties on development issues but also facilitate regional stability, prosperity and harmony," Xi said.

The CPC and Asian political parties share the same responsibilities to promote development in their countries and improve people's livelihoods, the vice president said.

"We would like to further strengthen exchange and cooperation with Asian political parties and contribute to regional development and friendly relations between people."

Sri Lankan Prime Minister D.M. Jayaratne, a senior leader in that country's Freedom Party, extended thanks for China's efforts to ensure the success of the conference on behalf of all participants.

Co-chairman of ICAPP Standing Committee Jose De Venecia said China has made great contributions to the world's poverty alleviation cause, and so holding a conference on poverty alleviation in China was appropriate.

He said the Kunming Proposal adopted in the conference will be submitted to the UN Millennium Development Goals summit scheduled for September.

Later on Monday, Chinese Vice Premier Li Keqiang met with a delegation from the Thai Democrat Party led by Thai Deputy Prime Minister Suthep Thaugsuban.

More than 120 representatives from 57 political parties in 30 countries attended the conference. Some African political parties, the UN and the Asian Parliamentary Assembly sent observers to the meeting.

Source: Xinhua

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China says its ties with Thailand exemplary

China has hailed its relationship with Thailand, calling the bilateral relationship exemplary.

Chinese Vice Premier Li Keqiang made the remarks in a meeting with Thailand's Deputy Prime Minister, Suthep Thuagsuban, in Beijing on Monday.

During the meeting, Li reviewed the 35 years of diplomatic ties between China and Thailand.

Li said the two countries understand and respect each others' core interests.

Calling the bilateral relationship a treasure for both nations, Li said the relationship is "a paradigm for how China and its neighboring countries can exist in harmony and benefit each other."

Li highlighted the soaring trade volume between China and Thailand.

He said China hopes to step up communication and deepen all-round trade cooperation with Thailand, as the China-ASEAN Free Trade Agreement boosts economic engagement.

Suthep said Thailand values its ties with China and that it hopes to expand cooperation with China in all fields.

Source:Xinhua

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China-made planes set to soar onto world market

Chinese planes can make a "significant impact" on the world arms market, said an expert of a leading think tank.

Two JF-17s, co-produced by China and Pakistan, have just made their international debut at an ongoing major international air show.

Gary Li, who analyzes the People's Liberation Army for London-based International Institute for Strategic Studies, also told China Daily that the Chinese air force is already "one of the strongest" in the world.

"Currently China is engaged in a very rapid series of aircraft upgrades and diversification," Li said, noting that the PLA Air Force (PLAAF) is currently strong only in terms of size.

Earlier this month, The Diplomat magazine, based in Tokyo and Sydney, as well as London's Jane's Defence Weekly, almost simultaneously published stories expressing concerns over the buildup of the PLAAF, entitled "China air force steps it up" and "Chinese military aircraft: up and coming".

The Diplomat even said China is "building a force that will be without rival in the Asia-Pacific".

Despite such a rapid upgrade, Li said China should work on "technological choke-points" .

A big problem, he said, is China's heavy reliance on Russian-made engines. Most of the country's latest aircraft, including JF-17s, still use engines bought from its northern neighbor.

"How many aircraft can China produce a year if Russia stops selling its engines to Beijing?" Li asked.

"China needs to solve this problem within 10 years if it wishes to continue the overhaul of the PLAAF and the development of the new generation of fighters".

China has been active in the international aircraft market in recent years.

The total value of China's arms exports from 2005-9, according to Sweden's Stockholm International Peace Research Institute, was $2.73 billion, only about 2.3 percent of the world's total.

But Beijing's aircraft sales - worth up to $815 million - are larger than any other of its weapon exports.

Though Chinese aircrafts are not comparable with US or Russian ones, Li said, "Chinese companies offer very attractive packages."

"The US never sells its latest generation of aircraft, or sell critical technologies," he said. In contrast, "China sells packages", not just the aircraft, but also technology and expertise - such as production licenses for domestic assembly, technical assistance and other after-sales support.

Almost all Chinese aircraft exports go to less developed countries, like Egypt, Venezuela and Myanmar. And Pakistan, China's "all-weathered friend", is the biggest recipient of Chinese planes.

The Pakistan Air Force (PAF) received its first two JF-17 Thunder fighters from China in July 2007. Last year, the PAF started its own assembly line, which saw the first aircraft roll out in November.

In February, the PAF activated its first JF-17 squadron, with 14 aircraft in service and another 24 to be delivered from the initial contract batch. Pakistan's total requirement for this type of single-engine plane is reported to be as high as 250.

Li said the JF-17 is an "excellent aircraft", available at a cheap price (about $15 million each), with a good avionics system and good radar. "It is a successful product of a successful partnership Chinese design really shines."

Significantly, the plane fits into Islamabad's needs, as "countries like Pakistan or Egypt don't need F-22s", Li added.

"If China decides to export its newer aircraft such as the J-11B and J-10, then it will make a significant impact on the world arms market, by offering attractive and cost effective alternatives to Western and Russian planes."

Long March

Also at the show, the China Academy of Launch Vehicle Technology presented China's next-generation heavy-duty launch vehicle, Long March-5, slated to take off in 2014.

The Long March-5 launch vehicle is currently China's largest, designed for transporting heavyweight satellites and space stations. It has entered the test stage.

Source: China Daily

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China's top lawmaker urges cooperation with world's legislatures

Wu Bangguo, China's top legislator, said Tuesday that China is willing to enhance negotiations and coordination with international and regional legislative bodies.

Wu, chairman of the Standing Committee of China's National People's Congress(NPC), made the remarks while addressing a breakfast meeting for some countries' delegates attending the Third World Conference of Speakers of Parliament in Gevena.

"The exchanges between the legislatures are an important part of relations between various nations and constitute to a major force for deepening political mutual trust, advancing cooperation and promoting friendship," Wu said.

Wu said the most centralized topic at the meeting is to achieve common development and materialize the UN millennium development goals.

"China's NPC is willing to enhance bilateral and multi-facet exchanges with legislatures of other countries and further step up negotiation and coordination with both international and regional legislative bodies, including the Inter-Parliamentary Union (IPU)," the chairman said.

Among the guests at the breakfast were Hee Tae Park, South Korea's speaker of the National Assemble; Takahiro Yokomichi, speaker of Japan's House of Representatives; and Meira Kumar, speaker of India's Lok Sabha (lower house).

The speakers all made positive comments on the friendly cooperation between their countries and China.

The speakers said China is playing an ever more important role on the world stage and because of that, they would like to strengthen cooperation and friendly exchanges between the NPC and their own legislatures.

Wu arrived in Geneva on Sunday afternoon to attend the third World Conference of Speakers of Parliament. Switzerland is Wu's final leg of a three-nation visit that also took him to France and Serbia.

Source: Xinhua

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Top Chinese legislator meets with parliamentary leaders, WHO chief

Wu Bangguo (L), chairman of the Standing Committee of China's National People's Congress (NPC), meets with Max Sisulu, speaker of the National Assembly of South Africa, in Geneva, Switzerland, July 20, 2010. (Xinhua/Ju Peng)

Top Chinese legislator Wu Bangguo held separate talks Tuesday with parliamentary leaders from South Africa, the Democratic People's Republic of Korea (DPRK) and Kazakhstan and the chief of the World Health Organization (WHO).

During talks with Hon Max Vuyisile Sisulu, speaker of South Africa's National Assembly, Wu, chairman of the Standing Committee of the National People's Congress (NPC) of China, said that the peoples of China and South Africa share a deep, traditional friendship.

Wu said the two countries have seen their ties develop in a rapid and all-round way since the establishment of diplomatic relations.

The two nations have carried out frequent high-level exchanges, with their mutual political trust gradually building up, Wu said.

Wu added that the two countries have also shared understanding and support on issues concerning each other's core interests and maintained close coordination and cooperation on significant international affairs.

Noting that economic and trade cooperation continues to expand and that people-to-people exchanges are also gaining momentum, Wu stressed that all those efforts have brought visible and practical benefits to the two countries and their people.

Wu Bangguo (R), chairman of the Standing Committee of China's National People's Congress (NPC), meets with Choe Tae Bok, Chairman of the Supreme People's Assembly of the Democratic People's Republic of Korea (DPRK), in Geneva, Switzerland, July 20, 2010. (Xinhua/Zhang Duo)

China attaches great importance to promoting its relationship with South Africa, and at a time when the international situation is undergoing deep and complex changes, relations between the two big developing countries have transcended the bilateral category and gained increasing global and strategic significance, Wu said.

Expressing hope that the two sides can join hands in enhancing their strategic partnership, Wu emphasized that the NPC is ready to consolidate friendly cooperation with South Africa's National Assembly and deepen their coordination and cooperation in international and regional parliamentary organizations.

The two legislatures should also work together with their counterparts in other developing countries to call for more attention on development and express their resolve to realize the UN Millennium Development Goals (MDGs), Wu said.

For his part, Sisulu said that China is an very important nation on the international stage and an important cooperation partner of South Africa.

South Africa's government, parliament and political parties are committed to promoting ties with China, and are hoping for more friendly exchanges and cooperation with China in more areas, he stressed.

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Sisulu said that a closer relationship with China will benefit South Africa's economic development and enable his country to better cooperate with China in handling global challenges and defending the interests of developing countries.

While meeting Choe Thae Bok, chairman of the Supreme People's Assembly (SPA) of the Democratic People's Republic of Korea (DPRK), Wu said the traditional China-DPRK friendship, which has withstood the changes of international situations, has been treasured by the peoples of the two countries.

China has valued its relations with the DPRK and will firmly carry out the strategy of developing China-DPRK good-neighborly and friendly cooperation, Wu said.

He said China is willing to maintain high-level exchanges, strengthen strategic dialogue, deepen economic and trade cooperation, expand people-to-people and cultural exchanges and advance common interests so as to benefit the two peoples.

Choe said that as China's good friend, the DPRK is happy to witness China's economic and social achievements. Choe added that the SPA hopes to enhance its exchanges with the NPC and to make greater contributions to the DPRK-China friendship.

At his meeting with Kasymzhomart Tokayev, Wu said that China and Kazakhstan are good neighbors, good friends and good partners, whose relations have maintained good momentum of development all the time.

Chinese President Hu Jintao's recent visit to Kazakhstan was a great success and the heads of state of both countries reached broad consensus on the deepening of bilateral strategic cooperation and major international and regional matters of common concern, Wu said.

The two countries signed a chain of agreements on cooperation in energy and non-resources areas, increased political mutual trust, and enhanced trade and economic cooperation, he said.

He said they also expanded cultural and people-to-people exchanges, and conducted close communications and coordination within the United Nations and other multilateral frameworks.

China is willing to work with Kazakhstan to fully implement the consensus reached between the heads of states of both countries and lift bilateral relations to a new height, Wu said.

China's National People's Congress attaches great importance to fostering relations with the Kazakh parliament and is ready to strengthen exchanges and cooperation between the leaders of the two parliaments and their special committees, Wu said.

Tokayev said it is a priority of Kazakh foreign policy to consolidate and develop the country's strategic partnership with China.

Speaking highly of Hu's recent visit to Kazakhstan, he stressed that there are no obstacles for Kazakhstan and China to deepen their cooperation in politics, trade, economy and humanities.

In his meeting with Dr. Margaret Chan, director-general of the World Health Organization, Wu said China and the WHO have had very good cooperation during the past few years in such fields as epidemic control, health education, medical training, public health capacity building and developing traditional medicine.

China appreciates the WHO's guidance concerning the country's medical and health system reform and public health development, Wu said, adding that he expects to cooperate with the WHO in many expanded areas.

Chan said the WHO appreciates China's dual focus on people's health and economic development as it builds a medical and health system that covers both urban and rural residents.

She also thanked China for its active participation and support for the WHO's work, adding that her organization will firmly adhere to the one-China policy.

Wu left for Beijing on Tuesday after concluding his official goodwill visit to Switzerland and attending the Third World Conference of Speakers of Parliament in Geneva. Switzerland was the third leg of Wu's three-nation tour, which also took him to France and Serbia.

Source: Xinhua

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China respects ASEAN consensus on EAS enlargement: FM spokesman

China attaches importance to and respects the consensus reached among the ASEAN members concerning the enlargement of the East Asia Summit (EAS), Foreign Ministry spokesman Qin Gang said in Beijing Wednesday.

Qin made the remarks when required to comment on the EAS's tendency to bring in the United States and Russia as its new members.

China always advocates that cooperation between East Asian countries should be open and accommodating, and the changing of regional architecture should be able to promote peace, development, cooperation and prosperity of East Asia while in accordance with the region's characteristics of diversity, Qin said.

ASEAN should play a dominant role in the changing process, he said.

China will stay in close contact with related parties till a consensus is reached, said Qin.

Source:Xinhua

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China makes new WTO Gov't Procurement Agreement proposal

China has presented a new proposal to the World Trade Organization in negotiations over its entry into the Government Procurement Agreement (GPA), Ministry of Commerce spokesman Yao Jian said on July 20.

Yao said the Chinese delegation has submitted a revised proposal to the meeting of the Committee on Government Procurement under the WTO. It includes significant improvement over terms of central government entities, threshold values and service departments. The contents of the new proposal haven't been made public, and Yan didn't provide details.

He also said China hopes that other members of the WTO will take into account that China is still a developing economy. Chinese companies currently "face a bottleneck in market opportunities" in the United States, Europe and other overseas markets. Because China is not a part of the agreement, its companies are not eligible for benefits.

The new proposal "got positive comments from relevant parties in (GPA) negotiations," and further negotiations would be conducted, Yao said.

The GPA is one of the four multilateral agreements under the WTO framework. Accession negotiations with GPA members began at the end of 2007 when China presented its initial offer, but there have been no results yet.

The participation in the GPA will open up Chinese multi-billion-dollar government contracts to foreign bidders. At the same time, Chinese firms, products and services will gain access to a much larger government procurement market after China accedes to the GPA and will remain highly competitive in China's domestic government procurement market.

By People's Daily Online

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ASEAN becomes engine of regional economic development


The ASEAN is becoming an engine of the regional economic development, as well as of world economic development, an expert from the East Asian Institute of National University of Singapore said in Singapore on Thursday.

In an exclusive interview with Xinhua, Dr. Zhao Hong said ASEAN member countries not only export goods to other countries, but also become a big market that will also import more goods from other countries.

"In this sense, the ASEAN is very important, and is also a driving force in regional economic integration. So we can say the ASEAN plays a very important role today," Zhao said.

Ministers from ASEAN member countries convened in Vietnam this week. "They have reached a consensus on regional economic cooperation and stressed that all the ASEAN countries will make greater efforts on economic integration in the ASEAN and also in East Asia," He said.

"Apart from this, they also made consensus to improve regional economic integration, and are becoming cooperative with other countries, such as China, Japan and South Korea, so as to make economic recovery more quickly and better in this region," said Zhao.

He said the ministers believe the ASEAN is open, and is willing to accept other countries such as the United States, Russia, Australia, New Zealand, so to make this region more dynamic and more open.

"You can see ten plus one, ten plus three, and some years later, it might be ten plus six, or ten plus eight," Zhao said, noting that this is because the ASEAN is now a kind of driving force, and more and more countries would like to cooperate with it.

The ASEAN is an organization accepted by many countries, and more and more countries are now paying attention to this organization. At ASEAN ministers' conference, ministers agreed the ASEAN summit will include Russia and the United States.

"In this sense, we can see that the ASEAN is becoming more and more important in regional and international affairs," he said.

"Of course, the ASEAN still has some problems, especially some disputes between countries in the region, but the member countries are making efforts to solve these issues. So I believe this organization has a very good future," said Zhao.

He suggested that ASEAN member countries make greater efforts to improve their infrastructure, and expand the exchanges and cooperation not only among the member countries but also with other countries in Asia such as China, Japan and South Korea.

The ASEAN, since its establishment in 1967, has striven to accelerate economic growth, social progress, cultural development among its members, to protect peace and stability in the region, and to provide opportunities for member countries to discuss differences.

Source: Xinhua

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China, Laos pledge to strengthen military ties

Chinese Premier Wen Jiabao (R) meets with Douangchay Phichit, Lao Deputy Prime Minister and Defense Minister in Beijing, China on July 22, 2010. (Xinhua/Pang Xinglei)

China and Laos Thursday pledged to strengthen military ties and promote bilateral relations.

"It is important to both sides to enhance exchange and cooperation in politics, trade, economics, culture and defense," Chinese Premier Wen Jiabao told Douangchay Phichit, Laos's deputy prime minister and defense minister.

During the half-hour meeting in Beijing, both Wen and Douangchay hailed the bilateral relationship and pledged to strengthen ties between the two ruling parties, the two states, and the two military forces.

Chinese Defense Minister Liang Guanglie held talks with Douangchay early Thursday.

"China attaches importance to its bilateral relationship with Laos and its armed forces. The relationship is in the interests of the two peoples and regional security and development," Liang said.

China hopes to work with Laos to strengthen the bilateral friendship and to expand cooperation, Liang said.

Douangchay hailed Laos-China cooperation in recent years.

Douangchay reiterated the Lao government adheres to the one-China policy.

After the talks, the two defense ministers signed a cooperation agreement.

Source: Xinhua

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Chinese President repeats government stance on economic policy

Chinese President Hu Jintao has said that the government should stick to the pro-active fiscal policy and moderately loose monetary policy in the second half of this year to ensure a stable and relatively rapid economic development.

Hu, also general secretary of the Communist Party of China (CPC) Central Committee, made the remarks at a symposium held in Beijing Tuesday, with attendance of people from the non-communists parties and the All-China Federation of Industry and Commerce, as well as celebrities without party affiliations.

Other members of the Standing Committee of the Political Bureau of the CPC Central Committee, including Wen Jiabao, Jia Qinglin, Xi Jinping, Li Keqiang, also attended the symposium.

"We should strengthen our awareness of current risks and challenges the country is facing in economy, and firmly implement the central government's policies to ensure a stable and relatively rapid economic development," Hu said.

Hu said the economy is developing in the right direction under the government's macroeconomic controls and the government would maintain the continuity and stability of its economic policies to make them more targeted and flexible according to new conditions.

Further, more efforts should be made to strengthen economic forecasts and warning systems, as well as in the coordination of economic policies, Hu added.

Hu asked for more efforts in the grain industry to achieve a good harvest this year and to improve control and relief work in combating floods and drought.

The government would also push forward long-term mechanisms for boosting domestic demand, implement consumption measures and increase the influence of consumption in its contribution to the economy, Hu said. It would also encourage more private funding to sectors supported by the government.

Hu further vowed to advance economic restructuring and accelerate development of new strategic industries, and promote development in the Tibet Autonomous Region, Xinjiang Uygur Autonomous Region and other regions populated by ethnic minority groups.

More efforts should be made on emission cuts and energy savings, as well as on elimination of outdated capacity, Hu said.

The government would also speed up reform of the property market, fiscal and financial systems, prices and social insurance, Hu said.

Further, the government would work to improve people's living standards and endeavor to meet the public's needs in education, health care, employment, social security and housing, Hu said. Post-disaster reconstruction efforts and work safety should also be intensified, Hu added.

Chinese Premier Wen Jiabao said at the symposium that the country would keep policy stability as the theme for its economic regulation in the second half of the year.

Economic polices would be aimed at balancing the goals of containing inflation and ensuring relatively fast growth, while also pushing ahead with economic restructuring, Wen said, adding that steady and relatively fast growth is a precondition for resolving urgent issues and reforming the economy.

China's economic growth cooled to 10.3 percent year on year in the second quarter of this year, from the 11.9 percent in the first quarter, government data showed.

In late 2008, China unveiled a four-trillion-yuan stimulus package and shifted its fiscal policy from a "prudent" to a "pro-active" stance, while easing monetary policy from "tight" to "moderately loose", to counter the global financial crisis.

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China, Singapore to boost co-op to combat cross-border crime, terrorism

Chinese State Councilor Meng Jianzhu met with Singaporean Deputy Prime Minister Wong Kan Seng Thursday and called for closer cooperation between the two nations in the fight against cross-border crime and terrorism.

Meng, also minister of Public Security, praised the increased cooperation between Chinese public security departments and the police of Singapore.

He said the two countries had conducted effective exchange and cooperated well in law enforcement and within the Association of Southeast Asian Nations (ASEAN) and the International Criminal Police Organization (INTERPOL).

Meng also expressed appreciation for Singapore's support in ensuring security at the Shanghai Expo.

Meng hoped both sides would communicate more and expand cooperation in the fields such as crackdown on cross-border crime, maritime law enforcement, personnel training and antiterrorism, and would sign agreements for further cooperation in a timely manner.

Wong, also Singaporean minister for Home Affairs, said his government attaches great importance to cooperation with China.

Wong said Singapore hopes to further cement cooperation between the two countries in law enforcement safety.

Wong is in China to co-chair three meetings with Chinese Vice Premier Wang Qishan.

One of the meetings was about China-Singapore cooperation. The other two dealt with Suzhou Industry Park in east China's Jiangsu Province and the Tianjin Eco-City project, both of which are Chinese and Singaporean joint projects.

Source: Xinhua

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Chinese FM makes five proposals to strengthen regional security

Chinese Foreign Minister Yang Jiechi made five proposals to the 17th ASEAN Regional Forum (ARF) in Hanoi Friday to enhance regional security.

Firstly, Yang said countries should bear in mind the overall situation and interests when dealing with sensitive regional issues, and always safeguard the regional peace and stability.

Secondly, Yang said countries should adopt a new security concept by seeking cooperation instead confrontation, and respecting and taking care of each other's core interest and security.

Thirdly, countries should respect each other, strengthen political mutual trust, improve and develop long-term, healthy and stable relations.

Fourthly, countries should exercise restraint when disputes arise and settle disputes through peaceful means.

Fifthly, countries should make use of multilateral mechanism like Shanghai Cooperation Organization, ASEAN Regional Forum and Six-Party Talks to promote common interest and common security.

Yang said on one hand, the situation in Asia-Pacific region is generally stable. On the other hand, the unstable and uncertain factors are increasing.

Yang said ARF could serve as a security dialogue platform to push for mutual trust among members. Yang also urged ARF members to strengthen cooperation on non-traditional security issues including anti-terrorism, disaster relief, non-proliferation and maritime security.

ARF comprises 27 members including the ten ASEAN member states namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, the 10 ASEAN dialogue partners namely Australia, Canada, China, the European Union, India, Japan, New Zealand, the Republic of Korea, Russia and the United States, and seven other countries in the Asia and Pacific region namely Bangladesh, the Democratic People's Republic of Korea, Pakistan, Mongolia, Sri Lanka, Timor-Leste, and Papua New Guinea.

Source: Xinhua

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Chinese Premier sends congratulatory message to African Union summit

Chinese Premier Wen Jiabao sent a message on Sunday to African leaders, wishing the 15th African Union (AU) summit "a crowning success."

In his congratulatory message, Wen spoke highly of the AU's important role in promoting the realization of peace and stability, economic and social development in Africa. He wished that the AU make constant achievements in leading African countries on the way to rejuvenation.

China will continue to support the efforts of African friends to realize peace, stability and development as well as the AU's organizational building and the continent's integration process, he said.

Wen also said China will cooperate closely with African countries to comprehensively and effectively materialize the achievements made at the fourth Ministerial Conference of the Forum on China-Africa Cooperation so as to take the new type of China-Africa strategic partnership to a higher level.

Source: Xinhua

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Equatorial Guinea hails China-Africa cooperation

Equatorial Guinea's Prime Minister Ignacio Milam Tang hails the cooperation between China and Africa in general, and the Chinese contribution to his country's development in particular.

The prime minister spoke highly of bilateral ties during a meeting with visiting Chinese State Councilor Dai Bingguo on Friday.

"Our two friendly countries have continued to enjoy good relations since the establishment of diplomatic ties and mutual support during difficult times is testimony to this," Milam told his Chinese guest.

"Equato-Guinean authorities are grateful for the Chinese support to the country's long-term socio-economic development," he said.

"Based on the five principles of peaceful co-existence, the Chinese aid has been greatly appreciated in Africa. China has also shown that she is sincere in her cooperation with Africa by following a non-interference policy in African internal matters," he pointed out.

Regarding the current state of commercial and economic exchanges, the prime minister praised Chinese companies for the development of his country's infrastructure.

"This has shown the deep traditional friendship between our two peoples and our government wants to intensify the exchanges with our Chinese friends in order to reinforce this cooperation," he said.

On his part, Dai said the relations between the two countries were in the interest of the two peoples. "China is committed to working together with Equatorial Guinea to promote bilateral relations," he said.

Dai also expressed the gratitude of the Chinese people towards their Equato-Guinean brothers for their precious support on key issues regarding Chinese sovereignty, national security and development interests.

"We are especially touched by the fact that Equatorial Guinea, a developing country with a population of about 1 million people, contributed 1 million euros to help the victims of last year's earthquake in Wenchuan in southwest China," he noted.

"As a developing country, China stands together with Africa," said the Chinese official.

Dai also held talks with Equatorial Guinea's Deputy Prime Minister Demetrio Elo Ngong Nsefumu.

Heading a Chinese delegation, Dai is making a five-nation African trip which had him to Ethiopia and Algeria before Equatorial Guinea. The other two African countries are the Democratic Republic of Congo and Zambia.

Source: Xinhua

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New Japanese ambassador to China calls for deepening of ties


New Japanese Ambassador to China Uichiro Niwa on Friday called for deepening of Sino-Japanese mutually beneficial strategic relations.

"In recent years the leaders of the two countries have created a conducive environment for the development of bilateral ties. I am very glad to see that," Niwa told Chinese press in Tokyo.

Upon his assignment to China, the Japanese ambassador said China and Japan, as close neighbors, should deal with each other for the upcoming 1,000 or 2,000 years rather than 10 or 20 years. In the long run, both countries share a lot of common interests, and a stable, friendly relationship is the ultimate goal.

The former president of Itochu Corp. said that he aimed to boost communication, strengthen economic cooperation, and build on the mutual trust between the leaders of the two countries.

Niwa also said in the age of multipolarization, no one can conduct diplomacy with knowledge of China alone. So the relations with South Korea, and the United States are also important.

Niwa was appointed by Prime Minister Naoto Kan in June to the key diplomatic post, making him the first ambassador to China from outside the government sector since the two countries normalized ties in 1972. He will leave for Beijing on July 31.

Source: Xinhua

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China South Locomotive agrees 4-bln-yuan contract in Malaysia

China South Locomotive and Rolling Stock Corp. (CSR) Saturday announced one its subsidiaries had secured a 4-billion-yuan (591.9 million U.S. dollars) contract to supply rail vehicles in Malaysia.

The contract agreed by CSR Zhuzhou Electric Locomotive Co. and the Transport Ministry of Malaysia requires the vehicles to be delivered by May 2012, said Dai Binggang, senior manager of the company.

The vehicles, with a top operational speed at 140 km per hour, would replace existing inter-urban vehicles on the south-to-north rail in Kuala Lumpur, and reduce operating costs by 15 percent a year, said Xu Zongxiang, general manager of the company.

Both Dai and Xu refused to give the number of vehicles to be supplied.

CSR is China's biggest maker of rail vehicles, and its first-quarter net profit surged 84.55 percent year on year to hit 355 million yuan.

Source: Xinhua

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An East Asian development fund for North Korea?

July 25th, 2010
Author: Geoffrey K. See, Yale University

During my last visit to Kim Il Sung University in Pyongyang, a student told me that she wanted to be a business leader. I asked her why. She said that she wants to show that ‘women can be good business leaders’. I later quizzed her on politics and she responded by asking me if I was interested in such issues. When I said ‘Yes’, she said ‘Politics are for men only.’

Maybe she has a point. Not so much that ‘politics are for men only’, but rather that in bringing North Korea back into the international system, we should separate politics from business. Encouraging trade and investments in North Korea can only make the country more cooperative on other issues. And the interaction and incentives that trade brings look a lot better when compared against alternative non-solutions.

The United States is short of good ideas on dealing with Pyongyang. One policy that is sometimes advocated is a ‘wait and see’ approach. But those holding their breath waiting for North Korea’s government to collapse should try not to suffocate. Even the 1994 famine that killed an estimated 500,000 to 3 million people did not trigger regime collapse. Perhaps a succession struggle could destabilise the system, but this scenario will not occur soon, and, in any case, it is far from certain that such a struggle would cause the collapse of the North Korean government.

The idea of isolating North Korea through sanctions is another idea that is popular in certain corridors of Washington. But this notion also appears misguided. The North Korean government has shown that a severe famine cannot dislodge it from power. And without China’s support, a full blockade is simply impractical.

Even if China supported debilitating sanctions, a policy of starving a nation into submission is ethically unjustifiable. While international sanctions against trading arms and luxury goods with North Korea are justifiable, they do not amount to a long-term solution. No one knows how effective these sanctions are anyway.

If North Korea’s government will not fall on its own, why not send in the troops? America can scarcely afford another military adventure abroad. Seoul and China are unlikely to join in the action. And Iraq and Afghanistan have shown that conflict, even for a purportedly good cause, is nasty and brutish for both sides.

What, then, is the solution? Some policymakers have an almost allergic reaction to dealing with North Korea. They forget the Cold War is over.

There is no need to be inherently hostile to a communist system. Rather, trust- and incentive-building is needed to coax North Korea out of its shell.

A North Korea development fund (NKDF) should be created to invest in infrastructure and technical training in North Korea, as long as these projects facilitate regional trade. Such a fund can exist alongside current measures to contain North Korea’s nuclear proliferation, but should remain free of political entanglement. The idea is that a North Korea that trades with its neighbours is a country that can be re-integrated into the regional and international system. The fund’s architecture should involve South Korea, China and Japan.

The question may be asked—why these three countries? The answer is because such a fund would bring profound benefits to each of them.

The benefits to South Korea of a cooperative and secure North Korea are so obvious as to need little further explanation. But South Korea cannot carry the full costs of this project on its own. As for Japan, as obnoxious as it might find development aid to North Korea, it is within Japan’s long-term economic and security interests to have a prosperous and internationally integrated neighbour. And as for China, its long-term goals are also best served by a prosperous and stable North Korea. This is the common vision which can serve as the foundation for cooperation in the region.

China should be the key player in the NKDF architecture. It can channel aid through the NKDF and so encourage North Korea to tap this mechanism. While China will trade away direct leverage over North Korea by moving itself into a regional structure, it will be able to apply greater pressure on Pyongyang by tying its aid to conditions imposed by the NKDF. China does not want to keep writing blank checks.

But it cannot stop doing so without coordinating with its Asian neighbours to ensure that North Korea’s economic situation does not further deteriorate under changing political winds. And China’s participation in a regional financial body can only make the NKDF a more attractive option to the US, which is looking for China to become a responsible stakeholder in the international order.

When visiting North Korea, I find that government officials are not inherently hostile towards trading with capitalist ‘heretics’. The Korea Taepung Investment Group, established this year to attract international investments, is an example of North Korean openness to trade. And through trade, North Korea is likely to become more open in other areas. The question is how other countries in the region can encourage and nurture such pragmatism. It helps to have good incentives waiting for North Koreans at the other end.

Geoffrey K. See is University Fellow at Yale University and director of the Choson Exchange, a non-profit organisation dedicated to innovative use of technology and partnerships in delivering training in economics, business and legal fields in North Korea.

This article is a finalist in the recent EAF Emerging Scholars competition.

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Look-East Meets Look-West as India Hosts Than Shwe
By WAI MOE

India, the world’s largest democracy, has practiced its “Look-East Policy” with respect to Burma since the 1990s, partly in an attempt to counterbalance China's clout with the military regime. On his current trip to India, it appears that junta chief Snr-Gen Than Shwe may be adopting a “Look-West Policy” in his own attempt to offset China's influence.

Than Shwe's five-day visit to India, which kicked off on Sunday, is the second trip the junta leader has made to the South Asian nation since he came into power in 1992. He was accompanied by an entourage of top junta generals, including: Gen Shwe Mann, the joint-chief of staff (Army, Navy, Air Force); Gen Tin Aung Myint Oo, the secretary-1 and quartermaster-general; Lt-Gen Min Aung Hlaing, the chief of bureau of special operations-2 who oversees regional military commands in northeastern and eastern Burma; and Lt-Gen Myint Aung, the adjutant-general.

Following a one-day stopover in Bodhgaya, the Burmese delegation met on Monday with Indian foreign minister S.M. Krishna after they arrived at the Air Force base in New Delhi. Than Shwe and his generals then met Indian President Pratibha Patil and Prime Minister Manmohan Singh on Tuesday to discuss bilateral ties.

Following the 1988 democracy uprising and the 1990 elections in Burma, India championed the country's pro-democracy movement. In 1993, however, New Delhi established its “Look-East Policy,” a realist rather than idealist policy focused on obtaining security along its northeast border region, securing energy resources in Burma, developing an overland route to Southeast Asia and preventing Chinese influence in the Indian Ocean, according to analysts.

More recently, from the perspective of the generals in Naypyidaw, building a strategic relationship with New Delhi has become important in order to counterbalance China’s influence over their own country. If the junta is able to persuade India to defend it in front of the international community and supply resources for it's armed forces—including arms and training—then China's leverage over the regime will be reduced.

Than Shwe’s first visit to India was in late October 2004, and during that trip the two countries signed agreements on security cooperation, a hydro power project and cultural exchanges. Intentionally or not, the 2004 visit came just a few days after the junta’s crackdown on the powerful Directorate of Defense Services Intelligence, also known as the Military Intelligence, headed by Gen Khin Nyunt, who was said to have a good relationship with Beijing.

Although Chinese officials believe their country is the junta's closest ally, Beijing did not know about the removal of Khin Nyunt and his top staff until it was officially announced following the crackdown. In addition, China was reportedly unaware of the Burmese regime's decision to move the capital from Rangoon to the remote area of Naypyidaw until after it was publicly announced.

Moreover, after the Burmese junta's September 2007 crackdown in Rangoon and the August 2009 military offensive against the Kokang ethnic group living on the Sino-Burmese border, Beijing has privately pressured Naypyidaw to maintain internal stability and find a peaceful resolution to ethnic conflicts.

As a result of these events, despite their close strategic and business relationship with the Burmese junta, Chinese officials have reportedly been disappointed with Than Shwe.

Unlike Beijing, the Indian government has not even privately criticized the junta in recent years, possibly in an attempt to gain an advantage over China with respect to their relationship with the Burmese generals, analysts said.

Meanwhile, military sources from Naypyidaw recently leaked a report to The Irrawaddy about meetings Than Shwe had with then Indian President APJ Abdul Kalam during the Indian official's visit to Burma in March 2006.

According to the report, Than Shwe and his delegation talked about Burma's natural resources such as gas, cooper and iron before discussing Burmese political issues such as the junta’s “road map to democracy.”

At the time, Than Shwe told Abdul Kalam that he only wanted to speak briefly about Burma's political developments because of time limitations, adding that although Burma had the seven-step road map, western countries were disturbed about the junta’s proposed path to democracy.

If western countries obstructed Burma, Than Shwe said, Burma’s progress towards becoming a democratic state could be delayed. If there was no obstruction, Burma could reach its democracy goal more quickly. Than Shwe then requested that India attempt to persuade western countries to support the road map.

In response, the Indian leader said he had intended to raise the issue of Burma’s democracy, but since the Burmese leader talked about it on his own, he would not discuss the issue further. He was satisfied to know that Burma had the seven-step road map and assured Than Shwe that India stood together with Burma.

Regarding the insurgencies in India's northeast states, Than Shwe told Abdul Kalam that Burma would eradicate any Indian insurgents that entered Burmese territory. He added that the weapons used by Indian insurgent groups were not from Burma, but from Thailand and Cambodia. He also called on India to assist with road construction along the Indo-Burma border to help combat the insurgents.

Since 2007, when the Burmese junta faced its biggest mass uprising in 19 years, Than Shwe has taken only two officials trip abroad, first to Sri Lanka and now to India.

In November 2009, when Than Shwe and his generals took a four-day trip to Sri Lanka, they visited historic Buddhist temples dressed in traditional Burmese clothes just as they did in Bodhgaya on Sunday. Unlike the junta’s relationship with Sri Lanka, however, New Delhi constitutes a significant strategic partnership for Naypyidaw.

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India steps up engagement with Myanmar, vying with China for influence over military regime
By: Ashok Sharma

NEW DELHI - India welcomed the head of Myanmar's isolated military government Tuesday despite international criticism and extended aid to the regime for railroad and agriculture projects, as New Delhi competes to assert its influence in the region.

India's relationship with Myanmar, considered a pariah in some quarters for its suppression of democracy and human rights, has taken on new importance because of concerns over insurgencies and drug trafficking along their shared border.

India has also grown wary of China's influence in Myanmar, and is in competition with its regional rival for access to the country's large natural gas resources.

Myanmar junta chief Than Shwe held talks with India's Prime Minister Manmohan Singh and officials of the two countries later signed agreements to combat the smuggling of arms, drugs and ammunition across their 1,025-mile (1,650-kilometre) frontier and co-operate in the fields of information, science and technology.

"There are insurgencies on both sides (of the border) and both countries need each other," said G. Parthasarathy, a former Indian ambassador to Myanmar.

The two sides agreed on close co-operation between their security forces in tackling terrorism and that neither side's territory would be used for training, sanctuary and other operations by terrorist and insurgent organizations, a joint statement issued after the talks said. They would strengthen co-operation at their border in fighting insurgency, it said.

India agreed to consider Myanmar's request for assistance in three areas — information technology development, industrial development and infrastructure development in Myanmar, the statement said.
India will give US$10million to Myanmar to procure agricultural machinery from New Delhi, the statement said. India's state-owned EXIM Bank also loaned US$60 million to Myanmar for financing of railroad projects, said Soe Tha, Myanmar's minister of national planning and economic development.

The EXIM Bank has so far loaned a total of US$250 million for railways, telecommunications, a refinery, a truck assembly plant and electricity transmission lines.

India also agreed to help restore the renowned Ananda Temple, a noted Buddhist shrine and major tourist attraction, in Myanmar's central Bagan district, said a statement by India's External Affairs Ministry.

After many years of supporting the democratic movement in Myanmar led by Nobel Peace Prize laureate Aung San Suu Kyi, India has switched tracks and reached out to the military regime. It has established deep economic and military ties with Myanmar's generals over the past decade, overlooking the reclusive junta's poor record on political and human rights. New Delhi has said it believes talking quietly is a better approach than sanctions.

"India has long supported the democratic movement in Myanmar. At the same time, however, it has made clear that isolation is not an option with any neighbour," the Indian Express newspaper said in an editorial.

Other than India's interest in Myanmar's energy resources, New Delhi has begun work on an ambitious transport corridor across Myanmar that would give India's remote landlocked northeastern states access to the Bay of Bengal through the Myanmar port city of Sittwe.

Than Shwe is known as a recluse who rarely undertakes diplomatic trips. His visit indicates the importance he places on advancing Myanmar's ties with India.

The military leader is also known to be highly superstitious, which has led to speculation in Myanmar about the timing of his trip, at the auspicious start of Buddhist Lent. Than Shwe marked the day Monday by visiting Bodh Gaya, the town where Buddha attained enlightenment.

But his visit to India has been marked by criticism and protests from pro-democracy activists. Scores of activists belonging to the All Burma Monks Alliance and the All Burma Students' League gathered in a central New Delhi park Tuesday, where they shouted pro-democracy slogans and set fire to posters with the military leader's picture.

Last week, the U.S. State Department said it hoped India would press Myanmar over democratic reform, engaging the opposition and other ethnic groups in the country.
____

Associated Press writer Nirmala George contributed to this report

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Burma, India Sign Wide-ranging Agreements
By ZARNI MANN

NEW DELHI—Despite the criticisms over the welcome of junta leader Snr-Gen Than Shwe to India, President Pratibha Patil said the India-Burma relationship is unique as the two countries signed a range of agreements on finance, technology, arms and border issues.

During the welcoming ceremony at the presidential palace in New Delhi on Tuesday, Patil said that the cooperation between the two countries would bring the region closer.

“As close neighbors, our two countries share deep civilisational bonds of friendships and goodwill reinforced by history, geography and culture. The common heritage of Buddhism, shared experience of colonialism and recent strides in bilateral cooperation have drawn our people closer,” Patil said.

She said that Burma is central to India's “Look East” policy, and it stands as a gateway to the relationship between India and other Asean countries.

Snr-Gen Than Shwe arrived in India on Sunday and visited the Buddhist centers of Bodhigaya and Saranath in Varanasi before he went to New Delhi on Tuesday to meet with the president and Prime Minister Manmohan Singh.

His visit will conclude with a tour of India's high tech city, Hyderabad, to look at pharmaceutical and information technologies.

According to a press release by India's Ministry of External Affairs, the two countries agreed to enhance their economic and defense cooperation, among other areas.

Both signed a treaty for mutual assistance in criminal matters and cooperation in science and technology. The agreements also include three MoUs offering India's assistance in implementation of small developmental projects, as well as cooperation in the conservation and restoration of Ananda Temple in Bagan, a major archeological zone in central Burma.

India will also provide high-speed patrol boats, rifles with night vision devices and armored personnel carriers to help combat Indian insurgent groups operating along the Indo-Burma border.

The EXIM bank of India also agreed to provide a US $60 million line of credit to fund various railway projects, and New Delhi pledged $10 million for the purchase of modern agricultural equipment.

Burma also welcomed a “substantial additional investment” by two Indian oil companies for the development of projects in Burmese offshore blocks A-1 and A-3, including a natural gas pipeline now under construction at Ramree, an island off Burma's Arakan coast, said a joint statement released by MEA.

Under the telecommunication agreement, the official fiber telecommunication link between India and Burma via Moreh and Mandalay will be upgraded to a microwave link which will be financed by a $6 million line of credit from India. A new optical fiber link between Monywa in upper Burma to Rhi-Zawkhathar will also be undertaken with Indian assistance.

Agreements were also signed for direct banking links between the two countries, tourism, human resource development such as language training, a center to enhance IT skills, a scholarship program for officials and the construction of an industrial training center in Pakokku.

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China stimulates world economy

Trade imbalances, namely trade surpluses and deficits, are common between two countries. However, to evaluate the trade between two countries, many factors should be taken into consideration.

In a recent interview, Zheng Huanyu, a researcher of the International Trade Institute of Korea International Trade Association said: "The trade imbalance between China and the United States could not reveal the true picture of their bilateral trade."

China's economic stimulus policies made great contributions to the stability and revival of world economy in 2009 and this year. Zheng said the differences between the added value of commodities cause trade surpluses and deficits. In general, the original intention of trade was to get commodities of better quality for lower prices. Because there are differences between the added value of commodities, trade surpluses and deficits are unavoidable.

Zheng said that international trade becomes more and more complicated as economic globalization speeds up. The service industry has become increasingly important in international trade. Therefore, it is hard to judge the situation of one country's international trade only based on trade surpluses or deficits.

For example, many American scholars admitted that a large proportion of the U.S. trade deficit with China is made up of commodities manufactured in China by subsidiaries of U.S companies. It should also be noted that a large proportion of China's foreign trade comes from subsidiaries of Korean and Japanese companies that export goods manufactured in China to developed countries. As a result, China's trade surplus with the United States does not reveal the whole picture of their bilateral trade.

In Zheng's opinion, because many developed countries have transferred their manufacturing to developing countries, the trade deficit would not disappear. Reducing the trade deficit against China means increasing trade deficits with other developing countries.

Zheng also said that the service industry, especially the financial industry, will account for a larger and larger proportion in international trade. Though trade deficits occurred in the U.S. commodity trade, the U.S. service industry made a great profit.

As for his opinion on the relationship between China's foreign trade and the development of the world economy, Zheng said that China's performance in this financial crisis made a great contribution to the development of the world economy. For example, Korea's exports to China accounted for 21.7 percent of its total in 2008. In 2009, Korea's total exports dropped 13.9 percent. However, its exports to China only decreased 5.1 percent. Therefore, China's economy was a great boost to Korea's economy. After the international financial crisis broke out, China stimulated the revival of the world economy. It should be noted that China's trade surplus has been decreasing gradually. The declining trade surplus means more imports.

Zheng said China's policies of economic stimulus and the increase of its imports made great contributions to the stability and revival of world economy.

By People's Daily Online

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China leads the world in urbanization: blue paper

As China's urban population reached 46 percent of the total population last year, Chinese urban dwellers became the largest such population in the world, according to a 'blue paper' released on Thursday.

By the end of 2009, China's urban population reached 620 million as both the annual birth rate and the total urban population became the world' s largest, according to "City' s Blue Book: China's Urban Development Report No. 3," which has been released by the Chinese Academy of Social Sciences and the Social Sciences Academic Press.

It said China's urban population is twice that of the population of the United States and one quarter more than the total population of 27 countries of the European Union.

By 2015, urban residents in China will make up about 52 percent, and by 2030, 65 percent of the total population in the country, it said.

"A milestone change for urban development will take place when urban people make up more than 50 percent of the population and thus surpass the number of rural people," the paper said.

"The 50-percent point phenomenon will occur in the mid-12th Development Program period (2011-2015) when both the number of urban and rural Chinese will reach 680 million," it said.

The role of the urban economy will be further strengthened by that time, it said, adding that the urban economy would continue to drive the domestic demand.

Source:Xinhua

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Strategy more than commerce: China-New Zealand FTA
Author: Gary Hawke, NZIER

For domestic consumption, the New Zealand government frequently trumpets the success of the China-New Zealand FTA in terms of short-run economic gain. So Foreign Minister McCully told the Foreign Policy School in Dunedin on 25 June 2010, ‘During the darkest economic days of the global downturn, but in the early stages of the implementation of New Zealand’s Free Trade Agreement with China, our exports to China for calendar 2009 increased by a massive 43 per cent.

Prime Minister John Key told his National Party conference last weekend, ‘At the heart of our trade push are living standards and jobs.’

President Obama tells his domestic audiences that he intends to double US exports in 5 years at the same time as he tells Asian audiences that the US is back in Asia. Asians are unlikely to join in a crusade to double US exports or even to see it as part of the building of an Asian community within the global economy. The cognoscenti might realise that the president is talking about deeper engagement with the international economy, increasing imports as well as exports, but that is not what the domestic audience is intended to hear.

The New Zealand government can no more separate domestic and international audiences than can the US even if New Zealand is less likely to attract widespread international interest.

Increased exports to China have been welcome, but the FTA is far more strategic than commercial, and it is regional more than bilateral. The Chinese emphasis on continuing the ‘Four Firsts’ is a better prosaic statement than is the domestic political rhetoric.

New Zealand was first to complete an agreement on the terms of China’s accession to the WTO, first to recognise China as a market economy, the first developed economy to commence free trade negotiations with China, and the first developed economy to complete a free trade agreement. A ‘fifth first’ has been added with the signing of a free trade agreement with Hong Kong, following its conclusion of an economic partnership framework agreement with the Mainland. Such patterns seldom play a role in New Zealand thinking; its familiarity is testimony to accommodation of Chinese styles of thinking.

While the China-New Zealand FTA improves market access for both economies, and this includes bilateral exports in wine and dairy from New Zealand, the important elements of the agreement lie elsewhere.

The New Zealand fishing industry has plans to use increased opportunities to use processing facilities over a wider range of locations in China. China is using the New Zealand agreement and market to test its ability to comply with international standards in areas like product safety in electrical goods. The New Zealand market is not big enough to support the cost to China of implementing standards through central, provincial and local government agencies, but New Zealand is a useful learning-ground for wider international markets.

The agreement also includes clauses which provide for temporary movement of natural persons from China to New Zealand, again an exploration of something which must become more significant internationally. It also brings China within a world of binding investor-state international arbitration.

Most important of all, for New Zealand, the agreement strengthens New Zealand’s claim to participate in the process of East Asian integration. There will surely be a growth in China’s domestic market relative to Chinese exports to Europe and America. Asian economic integration will accompany that process. New Zealand policy is to facilitate integration and liberalisation by all available instruments, including the Trans Pacific Partnership and a Free Trade Area of the Asia Pacific. But there is more momentum in Asian economic integration than in Asia Pacific liberalisation—and the processes are complementary more than rivalrous. The China FTA is an indication of the genuine interest of New Zealand in East Asia.

There has been little concern about competition from Chinese products—they are too familiar and ingrained in the New Zealand psyche. There is concern over Chinese investment in New Zealand land. Conventional convictions about farmer control—which constrain capitalisation of Fonterra—is linked with nostalgia for a closed community. Participation in international supply chains cannot be restricted to only New Zealand ownership of assets overseas.

New Zealand is sometimes accused of being naïve about China. But naivety lies with those who identify Chinese ‘helpfulness’ or China’s participation in contributing to global public goods, with Chinese acceptance of US preferences.

From 2013, rugby sevens, a variant of rugby union, will be played between the provinces of China at China’s National Games. That creates prospects of major changes in world sports—but it is important for the symbolism that New Zealand can be part of the Asian community which is being built.

Gary Hawke is Senior Fellow at the New Zealand Institute of Economic Research, Professor Emeritus and was formerly Head of the School of Government at the Victoria University of Wellington, New Zealand.

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China, Thailand to Take More of Burma’s Energy Resources

Thailand and China are buying more of Burma’s energy. Bangkok’s state-owned PTT oil and gas conglomerate has signed a deal to take most of the 50 billion cubic meters of gas so far discovered in Block M9 of the Zawtika field in the Gulf of Martaban.

PTT will take 80 percent of the M9 gas, with the rest being drawn by the Myanmar Oil and Gas Enterprise.

The gas is scheduled to flow from the end of 2013, according to Thailand's Energy Ministry this week.
No financial details of the deal have been disclosed publicly, but PTT’s exploration and development subsidiary PTTEP has previously said it might have to spend up to US $1 billion to fully develop the M9 site, for which it has a 100 percent license.

Efforts by China to buy into the block failed.

Gas from M9, together with supplies from Burma’s Yadana and Yetagun fields, means that by the middle of this decade about 40 percent of Thailand’s gas needs for electricity generation will come from Burma.

Meanwhile, China has struck a deal to build a 1,050 megawatt hydroelectric plant on the River Ngawchanhka in Kachin State.

No financial details of the agreement were disclosed by Burma’s Ministry of Electric Power, which announced the project this week. Industry sources say all the electricity generated from the project will be pumped into China’s neighboring province of Yunnan.

Most of Burma has no regular access to electricity. The country lacks a national power distribution infrastructure.