China ‘resolutely opposes’ U.S. sanctions on missile parts supplier

Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran.  Credit: Reuters/Morteza Nikoubazl

Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran.
Credit: Reuters/Morteza Nikoubazl

China said on Wednesday it “resolutely opposes” U.S. sanctions that could harm non-proliferation work between the two countries after Washington laid charges against a Chinese businessman accused of allegedly procuring missile parts for Iran.

In a signal Washington would keep pressure on Iran over its nuclear program, the U.S. State Department also offered up to $5 million for information leading to businessman Li Fangwei’s arrest or conviction.

Federal prosecutors also seized $6.9 million in funds that had been traced to Li.

“China resolutely opposes the United States citing domestic law to unilaterally impose sanctions on Chinese companies or individuals. We believe that what the United States has done will not help resolve the issue and will harm bilateral cooperation on counter proliferation, China’s Foreign Ministry spokesman Qin Gang said.

China pays great attention to anti-proliferation export controls and will “seriously deal” with any violations of its laws, Qin told reporters at a regular press briefing.

“China urges the United States to stop these wrong acts of putting sanctions on Chinese companies and individuals and return to the correct path of anti-proliferation cooperation,” Qin said.

Li has been the target of U.S. sanctions in the past for his alleged role as a supplier to Iran’s ballistic missile program.

In 2009, he was charged with selling restricted materials to Iran by the Manhattan District Attorney and Treasury banned him and his company, LIMMT, from conducting business in the United States without a license or authorization.

The latest actions further limit Li’s ability to conduct business worldwide.

Contacted by Reuters on Feb 4, 2013, for an earlier story about his business, Li said he continued to get commercial inquiries from Iran but only for legitimate merchandise. Li said his metals company, LIMMT, had stopped selling to Iran once the United States began sanctioning the firm several years ago.

Reuters has been unable to contact him since.

Calls to multiple telephone numbers of LIMMT, based in the northeastern Chinese city of Dalian, either went unanswered, or the person answering hung up when asked for Li.

Described as a “known proliferator” and a “principal supplier” to Iran’s ballistic missile program, Li has also been accused of trying to buy materials from the United States, China and other countries that could be used by Iran to produce or deliver weapons of mass destruction.

Iran and a group of world powers reached a temporary agreement in November under which Tehran would get about $7 billion in sanctions relief in return for steps to restrain its nuclear activities.

In March, a U.S. official said Iran had pursued buying banned components for its nuclear and missile programs, even while it was striking the interim deal to limit its disputed nuclear program.

Vann Van Diepen, principal deputy assistant secretary of state for international security and non-proliferation, said Li had continued to supply such items despite U.S. pressure on China to tighten export controls.

Source: Reuters “China ‘resolutely opposes’ U.S. sanctions on missile parts supplier”

Related posts:

  • The beginning of a new Cold War: On Putin’s Beijing visit dated June 6, 2012
  • Chinese Dream and China’s Arms Race with the US dated January 8, 2013
  • China-Russia Arms Deals Are Political for Cold War Partnership dated March 31, 2013
  • Breakthrough in the Establishment of Cold War Partnership between China and Russia dated June 26, 2013
  • China ramps up military spending for arms race with the US dated March 5, 2014
  • Chinese Admiral and NPC Spokeswoman Justifies Arm Race with the US dated March 5, 2014

China to conduct naval drills with Russia in East China Sea

Russia's President Vladimir Putin (right) shakes hands with his Chinese counterpart Xi Jinping. Photo: AFP

Russia’s President Vladimir Putin (right) shakes hands with his Chinese counterpart Xi Jinping. Photo: AFP

China said on Wednesday it would conduct joint naval drills with Russia in the East China Sea off Shanghai in late May, in what it called a bid to deepen military cooperation.

China’s defense ministry did not give an exact location in the East China Sea, where Beijing is locked in an increasingly bitter dispute with Japan over the ownership of a group of uninhabited islets.

“These drills are regular exercises held by China and Russia’s navies, and the purpose is to deepen practical cooperation between the two militaries, to raise the ability to jointly deal with maritime security threats,” the ministry said on its website.

It provided no other details.

China alarmed Japan, South Korea and the United States last year when it announced an air defense identification zone for the East China Sea, covering the islands.

The Beijing government, which is swiftly ramping up military spending, has regularly dispatched patrols to the East China Sea since it established the defense zone.

China was angered last week after U.S. President Barack Obama assured ally Japan that Washington was committed to its defense, including the disputed isles.

Earlier this month, Tokyo announced it would break ground on a new radar base in the area, on a tropical Japanese island close to Taiwan.

The radar station on Yonaguni Island, just 150 km (93 miles) from the disputed islands in the East China Sea, marks Japan’s first military expansion at the western end of its island chain in more than 40 years.

China and Russia have close diplomatic, security and economic ties, and regularly carry out military exercises together.

Source: Reuters “China to conduct naval drills with Russia in East China Sea”

Related posts:

  • China restates opposition to sanctions on Russia over Ukraine dated April 28, 2014
  • China Wins Advantages from All Sides in Ukraine Crisis dated March 16, 2014
  • China: Xi Jinping Skillfully Pleases Russia, US, EU, etc. Concerning Ukraine dated March 11, 2014
  • Cold War Again: Russia Plus China v. US dated March 7, 2014
  • China Is Definitely on Russia’s Side but Refrains from Making Its Stance Clear dated March 5, 2014
  • China paper slams West’s ‘Cold War mentality’ over Ukraine dated February 27, 2014
  • The beginning of a new Cold War: On Putin’s Beijing visit dated June 6, 2012

Philippines says U.S. obligated to help in case of attack

Philippine Foreign Secretary Albert del Rosario delivers a statement during a news conference in Manila March 30, 2014.  Credit: Reuters/Romeo Ranoco

Philippine Foreign Secretary Albert del Rosario delivers a statement during a news conference in Manila March 30, 2014.
Credit: Reuters/Romeo Ranoco

The United States has a treaty obligation to help the Philippines in case of an attack on its territory or armed forces in the South China Sea, the Philippine foreign minister said on Wednesday, rejecting questioning of a security pact.

The United States and the Philippines on Monday signed a 10-year Enhanced Defense Cooperation Agreement allowing U.S. forces wider access to Philippine bases and to position ships, aircraft, equipment and troops for maritime security.

The deal was testimony to an “ironclad” U.S. commitment to defend its oldest Southeast Asian ally, U.S. President Barack Obama told troops from both countries this week while on a visit to Manila.

But Obama did not say categorically the United States would defend the Philippines in its territorial disputes with China in the South China Sea, leading to some questions in the Philippines about the scope of the pact.

Philippine Foreign Secretary Albert del Rosario issued a statement on Wednesday apparently aimed at dispelling doubts about the deal.

“Under the Mutual Defense Treaty, the U.S. will come to the assistance of the Philippines if our metropolitan territory is attacked or if our armed forces are attacked in the Pacific area,” del Rosario said.

“In 1999, in a diplomatic letter, the U.S. affirmed that the South China Sea is considered as part of the Pacific area.”

China claims virtually the whole of the South China Sea and has in the past couple of years been much more assertive in staking its claim.

In 2012, China seized control of a disputed reef known as the Scarborough Shoal, preventing Filipino fishermen from getting near the rocky outcrop.

Last month, the Chinese coastguard blocked two civilian Philippine ships from delivering food and water to soldiers deployed aboard a Philippines navy transport vessel at another disputed spot, Second Thomas Shoal.

They continue to blockade the area.


The Philippines in March lodged a case against China at an arbitration tribunal in The Hague to try and settle the festering territorial dispute.

Brunei, Malaysia, Vietnam and Taiwan also have claims on the South China Sea, where $5 trillion of ship-borne trade passes every year and is believed to have rich deposits of oil and gas.

China’s Foreign Ministry said maintaining peace and stability “accords with all sides’ interest” and would require hard work by all sides.

“The (Chinese) people have reason to demand that any agreement signed by the United States and the Philippines accords with this principle and does not harm mutual trust with other countries in this region and regional peace and stability,” ministry spokesman Qin Gang told reporters at a regular briefing.

Some Philippine legislators and non-government organizations have criticized the security deal with the United States as unconstitutional and said it unfairly favors the United States.

“Through the Enhanced Defense Cooperation Agreement, the Philippine government has surrendered our sovereignty to free-loading U.S. forces,” said Renato Reyes of the left-wing Bayan (Nation) group.

Source: Reuters “Philippines says U.S. obligated to help in case of attack”

Related posts:

  • South China Sea Dispute: Lucky China; Unlucky the Philippines dated June 21, 2013
  • South China Sea Dispute: Encirclement of China dated July 6
  • South China Sea Disputes: Chinese Strategy dated July 10, 2013
  • US Not Willing to Be Drawn into War by Japan or Philippines dated February 11, 2014
  • South China Sea Disputes: US Pivot to Asia Has Zero Effect dated February 19, 2014
  • Philippines’ Tremendous Contributions to Human Race March 15, 2014

China poised to pass U.S. as world’s leading economic power this year

China News

Central Shanghai: China is likely to be the world's richest country by next year Central Shanghai: China is likely to be the world’s richest country by next year

The U.S. is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies.

The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.

After extensive research on the prices of goods and services, the ICP concluded that money goes further in poorer countries than it previously thought, prompting it to increase the relative size of emerging market economies.The figures, compiled by the International Comparison Program hosted by the World Bank, are the most authoritative estimates of what money can buy in different countries and are used by most public and private sector organisations, such as the International Monetary Fund

View original post 533 more words

China Rare Busy Appearances of Retired Top leaders Forebode Something Great?

Retired leader Hu Jintao visits Yuelu Academy. Photo: SCMP

Retired leader Hu Jintao visits Yuelu Academy. Photo: SCMP

I describes China’s faction politics in my book “Tiananmen’s Tremendous Achievements” as follows:

China’s Faction Politics
There are always various factions in CCP, but the establishment and development of factions have become vital for Chinese politicians since Mao’s Cultural Revolution because those who were in a faction with substantial strength suffered less persecution and regained their positions sooner during and after the Cultural Revolution.

As mentioned in Chapter 7, a high-ranking official usually appoints and promotes quite a lot of his people to official posts when he is in power. Those people together with the officials appointed and promoted by them are bound together by comradeship, friendship and common interests and aspiration. They become a faction led by the high-ranking official. When the high-ranking official has retired, he still has his faction under his control and thus becomes an elder with great influence. He will interfere for the interests of his faction whenever possible if necessary.

When it comes to the decisions at a Party Congress on candidates for members of Central Committee, Politburo and its Standing Committee, Central Military Commissions and Party Secretariat and other senior posts, all the retired elders who have been dormant, will come out to take part in the bargaining behind the scene because it affects the balance of strength among various factions and concerns the interest of not only them but also the large number of their faction members.

Just as described in the book, before and during the 18th Party Congress, those dormant elders were quite active and made quite a few appearances, but when there is no such grant event as the Party Congress, they all keep a low profile and seldom appear.

Therefore, it is quite unusually that recently quite a few dormant retired elders were busy making appearance.

The most prominent was former general secretary Hu Jintao. He visited Yuelu College and Hu Yaobang’s former residence respectively on April 9 and 11. Then he toured famous scenery spots Zhangjiajie and Fenghuang Ancient City. Finally on April 17, he visited Guizhou Province he was in charge of before rose to the top.

In my post “China’s Powerful Elder Former President Hu Jintao Came Out to Support Xi Jinping” on April 11, I said, “influential politician’s move must have some political intention.”

Hu’s travel obviously aimed to express his support for Xi Jinping’s mass line and anti-corruption campaigns and ambitious reform. Why?

I said, at Yuelu College, “Hu had a small entourage in accordance with Xi Jinping’s regulations and he refused to write an inscription at despite of repeated requests in accordance with Xi’s instruction that leaders shall not write inscription without central authority’s approval. He finally agreed to give his signature”.

“Therefore, the open support for Xi Jinping’s mass line campaign and anti-corruption storm by Hu Jintao, the head of the powerful Youth League faction with 8 Politburo members, gives a clear message to CYL Faction members that it is no use to complain to Hu when they are the targets of Xi’s campaign and storm. They had better behave themselves.”

Jiang Zemin, the core of CCP (Chinese Communist Party) Dynasty, in addition to his praise of Xi when he met Kissinger, has made three appearances recently: He visited his niece in Shengzhen at the end of March, toured Shouxihu Lake in his hometown Yangzhou on April 19 and visited his cousin in Shanghai on April 22.

His appearances were also regarded as aiming at showing not only his support for Xi but also his good health at the advanced age of 87. It gave the signal that that those who have been touched by Xi’s campaigns had better behave themselves.

However, it seems their appearances were not simply expressing their support. There must be something great being planned, perhaps an important meeting of top leaders and powerful elders on some important issues.

Not only the two top elders respectively being the leaders of the most powerful Shanghai and CYL factions, other retired elders including Wu Bangguo, Jia Qinling, Li Changchun, He Guoqiang have all made recent appearances.

Some analysts believe that they appeared to show support for Xi or that they have not been affected Xi’s campaign, but I would rather believe that they want to show that they are healthy and strong able to take part in the coming great meeting or occasion.

Source: Chan Kai Yee “Tiananmen’s Tremendous Achievements”

Source: SCMP “Jia Qinglin joins growing parade of retired leaders”

Source: World Journal “Elders showed support for Xi Jinping: Jiang Zemin appeared in Shanghai”

Related posts:

  • Top Elder Jiang Zeming Healthy, Vital for Xi’s Success in Reform, Fighting Corruption dated April 24, 2014
  • China’s Powerful Elder Former President Hu Jintao Came Out to Support Xi Jinping dated April 11, 2014
  • News Confirms Xi Jinping Chosen by Jiang Zemin as Successor to Jiang as the Core dated August 30, 2013
  • Jiang Zemin, 86, Shows He Remains the Core by Punishing Bo Xilai dated October 2, 2012

New Stealth Coating for China’s New Version of J-20 Stealth Fighter

Photo taken by a netizen of J-20 with new coating. Photo by Gangwa of

Photo taken by a netizen of J-20 with new coating. Photo by Gangwa of

Photo taken by aother netizen of J-20 with new coating. Credit:

Photo taken by aother netizen of J-20 with new coating. Credit:

Photo taken by aother netizen of J-20 with new coating. Credit: baobiao

Photo taken by aother netizen of J-20 with new coating. Credit: baobiao

Photo taken by a netizen of J-20 with new coating. Credit:

Photo taken by a netizen of J-20 with new coating. Credit:

Some new photos of China’s new version of J-20 with new stealth coating have recently been posted on the Internet. The New J-20 no. 2011 shines bright in the photos with silvery coating. Some web users exclaimed that it looked like a sci-fi galaxy fighter jet and simply mad one blind by its brightness. Analysts say that the new coating makes the fighter better undetectable.

Source: “New J-20 with reflecting coating looks like a sci-fi galaxy fighter” (summary by Chan Kai Yee based on the report in Chinse)

Related posts:

  • China’s New J-20 Equipped with EODAS Similar to F-35 Surpasses F-22 dated March 18, 2014
  • China’s J-20 Stealth Fighter Jet to Be Commissioned in 2017 Using Russian Engines dated March 17, 2014
  • China’s New J-20 with More Powerful Engine, Better Undetectability–Major General Zhu Heping dated March 5, 2014
  • Maiden Flight of New-Version J-20 Installed with China-made WS-15 Engine with 18-ton Thrust dated March 1, 2014
  • China Breakthrough in Providing Good Engines for J-20 Stealth Fighter Jet dated February 27, 2014
  • Details of New-Version J-20 Stealth Fighter Jet with Lots of Improvement dated January 19, 2014

China Fields DF-26C New Intermediate-Range Nuclear Missile to Reach Guam

Chinese Internet photos first published Feb. 29, 2012 show China's new DF-26c intermediate-range ballistic missile

Chinese Internet photos first published Feb. 29, 2012 show China’s new DF-26c intermediate-range ballistic missile

U.S. intelligence agencies recently confirmed China’s development of a new intermediate-range nuclear missile (IRBM) called the Dongfeng-26C (DF-26C), U.S. officials said.

The new missile is estimated to have a range of at least 2,200 miles—enough for Chinese military forces to conduct attacks on U.S. military facilities in Guam, a major hub for the Pentagon’s shift of U.S. forces to Asia Pacific.

As part of the force posture changes, several thousand Marines now based in Okinawa will be moved to Guam as part of the Asia pivot.

In April, the Pentagon announced it is deploying one of its newest anti-missile systems, the Theater High Altitude Area Defense (THAAD) to Guam because of growing missile threats to the U.S. island, located in the South Pacific some 1,600 miles southeast of Japan and 4,000 miles from Hawaii.

And on Feb. 10, the Navy announced the deployment of a fourth nuclear attack submarine to Guam, the USS Topeka.

Chinese military officials said the Topeka deployment is part of the Pentagon’s Air Sea Battle Concept and posed a threat to China.

Disclosure of the new Chinese IRBM follows the announcement this week by Defense Secretary Chuck Hagel that the U.S. military is sharply reducing its military forces.

“How can [U.S. policymakers] possibly justify such reductions in defense spending when American forces as far away as Guam, Korea, and Okinawa are targeted by these nuclear missiles,” said one official familiar with reports of the DF-26C.

It was the first official confirmation of China’s new IRBM, which officials believe is part of the People’s Liberation Army military buildup aimed at controlling the Asia Pacific waters and preventing the U.S. military entry to the two island chains along China’s coasts.

The first island chain extends from Japan’s southern Ryuku Islands southward and east of the Philippines and covers the entire South China Sea. The second island chain stretches more than a thousand miles into the Pacific in an arc from Japan westward and south to western New Guinea.

Few details could be learned about the new missile and a Pentagon spokesman declined to comment, citing a policy of not commenting on intelligence matters.

The missile is said to be on a road-mobile chassis and to use solid fuel. The fuel and mobility allow the missile to be hidden in underground facilities and fired on short notice, making it very difficult to counter in a conflict.

The DF-26C is expected to be mentioned in the Pentagon’s forthcoming annual report on China’s military power, which is due to Congress next month.

Adm. Cecil Haney, commander of the U.S. Strategic Command, told a congressional hearing this week that missile and other nuclear threats from China and Russia continue to grow.

“The current security environment is more complex, dynamic, and uncertain than at any time in recent history,” Haney said in testimony to the Senate Armed Services Committee. “Advances of significant nation state and non-state military capabilities continue across all air, sea, land, and space domains—as well as in cyberspace. This trend has the potential to adversely impact strategic stability.”

Russia and China in particular “are investing in long-term and wide-ranging military modernization programs to include extensive modernization of their strategic capabilities,” Haney said. “Nuclear weapons ambitions and the proliferation of weapon and nuclear technologies continue, increasing risk that countries will resort to nuclear coercion in regional crises or nuclear use in future conflicts.”

Richard Fisher, a China military affairs specialist, said Chinese reports have discussed a DF-26 missile as a medium-range or intermediate-range system. Medium-range is considered between 621 miles and 1,864 miles. Intermediate-range is between 1,864 and 3,418 miles

Online reports of three new types of medium- and intermediate-range missiles have said the weapons could be multi-role systems capable of firing nuclear or conventional warheads, along with maneuvering anti-ship and hypersonic warheads, Fisher said.

According to Fisher, two likely transporter erector launchers (TEL) for the new missiles were displayed last year on Chinese websites. They include two versions from missile TEL manufacturing companies called Sanjiang and Taian.

Three years ago, the state-run Global Times reported that the China Aerospace Science and Industry Corp. (CASIC) was working on a new 2,400-mile range missile that would be deployed by 2015.

That Chinese manufacturer also produced the DF-21 missile, prompting speculation that the DF-26C is a follow-up version of that system.

“China is developing and will soon deploy new longer-range theater missiles as part of its anti-access, area denial strategies, to be part of a combined force of new long-range bombers armed with supersonic anti-ship missiles, plus space weapons and larger numbers of submarines,” Fisher said in an email.

These forces are being deployed to push U.S. forces out of the first island chain and to have the capability to reach the second chain, including Guam, he said.

“China also consistently refuses to consider formal dialogue about its future nuclear forces or to consider any near term limits on them,” Fisher said. “China is giving Washington and its Asian allies no other choice but to pursue an ‘armed peace’ in Asia.”

According to Fisher, the Chinese missile buildup has forced the Navy to redesign its first aircraft carrier-based unmanned combat vehicle into a larger and longer aircraft.

The new Chinese long-range missiles also highlight the urgent need for a new U.S. long-range bomber to replace an aging fleet of strategic bombers.

To counter the Chinese threats, the United States should field its force of anti-ship ballistic missiles on submarines to match Chinese capabilities and deter China from using its naval power against U.S. allies such as Japan and the Philippines, Fisher said.

Russian officials have cited China’s intermediate-range missiles as one reason Moscow is seeking to jettison the U.S.-Russia Intermediate-Range Nuclear Forces Treaty (INF), which bans medium and intermediate ballistic and cruise missiles.

U.S. officials have said Russia is violating the INF treaty with a new cruise missile and testing its long-range missiles to INF ranges.

“It is time to retire the INF treaty because the United States now requires this class of missiles in order to deter China,” Fisher said.

“The bottom line: We are in an arms race with China and if America falters, so will our strategic position in Asia, which will surely increase the chances of conflict, nuclear proliferation and even nuclear war.”

The Pentagon’s latest report on China’s military forces, published last year, said the PLA is investing in “a series of advanced short- and medium-range conventional ballistic missiles, land-attack and anti-ship cruise missiles, counter-space weapons, and military cyberspace capabilities.”

The weapons “appear designed to enable anti-access/area-denial (A2/AD) missions, what PLA strategists refer to as ‘counter-intervention operations,’” the report said.

The Washington Free Beacon first reported on March 7, 2012, that the Chinese military had revealed online photos of a new intermediate-range nuclear missile.

The new missile is believed by U.S. officials to be the DF-26C.

China’s military frequently uses the Internet to reveal the first photos of new weapons systems.

Analysts said the missile TEL shown in the photo is smaller in size than China’s DF-31 intercontinental missile and larger than the DF-21 missile.

Source: Washington Free Beacon “China Fields New Intermediate-Range Nuclear Missile: DF-26C deployment confirmed”

Related posts

  • China Developing DF-26 Aircraft Carrier Killer Missile with Hypersonic Warhead dated January 30, 2014
  • China challenging U.S. military technological edge: Pentagon official dated January 29, 2014
  • China’s 12 Advanced Weapons to Be Turned out or Developed in 2014 dated January 24, 2014
  • China Tests Mach 10 Hypersonic Weapon: US media dated January 14, 2014
  • China: DF-41 ICBM with Range of 14,000 km, Able to Break Through US Anti-missile Network dated October 8, 2013
  • First Revealing Photo of Simulated Test of China’s Anti-Carrier Missile dated January 24, 2013


In wealthy Chinese city, debt guarantees spark default contagion

Workers look at a ladle pouring molten iron into a container at a steel plant in Hangzhou, Zhejiang province in this May 30, 2012 file photo.  Credit: REUTERS/Lang Lang/Files

Workers look at a ladle pouring molten iron into a container at a steel plant in Hangzhou, Zhejiang province in this May 30, 2012 file photo.
Credit: REUTERS/Lang Lang/Files

A network of loan guarantees set up to improve companies’ access to credit in one of China’s richest districts is creating new risks of default as some debts sour, another sign of how private firms are bearing the brunt of an economic slowdown.

Chinese media have reported on a credit crunch developing among steel and textile manufacturers in Hangzhou city, 175 km (110 miles) south of Shanghai in Zhejiang province, as the failure of some to repay loans pushes their burden onto healthier firms.

Hangzhou is part of the Yangtze River Delta (YRD), an engine of growth during China’s boom years but now the source of a third of non-performing loans in the country.

The government ranks the city’s Xiaoshan district as China’s seventh wealthiest. One of the main drivers of its prosperity — small, private firms — is now a handicap.

“The textile industry is not a big borrower in the banking sector. The problems that we see arise when mutual guarantees go bad and textile firms are dragged in,” said Robert Yang, assistant to the president at the China National Textile & Apparel Council.

Concern about the huge growth in Chinese corporate debt since the global financial crisis has intensified this year as the government allows market forces to play a bigger role in deciding winners and losers.

Private firms often struggle to obtain credit from state-owned banks, which prefer to lend to state-owned firms due to their government backing.

That trend has worsened as economic growth slows, credit conditions tighten, and authorities work to reduce excessive investment and overcapacity in some sectors.

Steel and textile manufacturers in Xiaoshan, like other private firms around the YRD, sought to overcome such obstacles by providing loan guarantees for each other to gain bank credit.

Now defaults by a few companies threaten a chain reaction that could ensnare even profitable firms, as the guarantees have left them on the hook for debts of their bankrupt competitors.

“Currently, Zhejiang’s economic structural adjustment and (industrial) upgrading is at a critical stage. The risk from guarantee chains is still rather large,” the Zhejiang branch of the China Banking Regulatory Commission warned in February.


Unlisted polyester yarn producer Hangzhou Jianjie Chemical Fiber Co Ltd was recently liquidated following the default of another textile firm whose debts Jianjie had guaranteed, China Business News, a national newspaper, reported.

Jianjie’s collapse in turn affected five other textile firms. In all, 3 billion yuan ($480 million) in bank loans to the six firms are at risk, the paper said.

“After (Jianjie Chemical Fiber) went bankrupt and was liquidated, companies with mutual guarantees had to take on more debt,” the paper quoted Zhu Rujiang, director of the Xiaoshan District Funding Chain Risk Prevention and Mitigation Leadership Group, as saying.

“They can still handle this debt, and they will have no trouble surviving, but a key requirement is that banks can’t withdraw their loans,” he said, according to the paper.

Zhu’s group was set up to mediate between banks and companies, according to the district government’s website. Zhu declined to comment when Reuters reached him by phone.

China Business News also reported that Hangzhou Zhongxin Steel Structure Manufacture Co Ltd, which makes scaffolding, had shut down and could place another 1.2 billion yuan in bank loans to four other companies at risk.

Zhongxin, whose website is no longer accessible, couldn’t be reached for comment.

“The crisis of mutual guarantees is very serious and there is no good solution for this problem,” said Zhou Dewen, vice chairman of the China Association of Small and Medium Enterprises in Wenzhou, another prosperous city in Zhejiang.

Source: Reuters “In wealthy Chinese city, debt guarantees spark default contagion

Related posts:

  • China to let banks sell off loans in prelude to possible bailout dated August 11, 2013
  • Loan scheme at Shanghai Pudong branch deepens credit worries dated January 11, 2013

China restates opposition to sanctions on Russia over Ukraine

Chinese Foreign Ministry spokesman Qin Gang

Chinese Foreign Ministry spokesman Qin Gang

China’s foreign ministry on Monday restated its opposition to placing sanctions on Russia over the crisis in Ukraine, after leaders of the Group of Seven (G7) major economies agreed to swiftly impose further punitive measures.

Ministry spokesman Qin Gang said China had “maintained communication” with all sides since the outset of the Ukraine crisis, including the G7 countries, and explained its position.

“On the issue of international relations, China has consistently opposed threatening or imposing sanctions. We believe that sanctions are not conducive to an issue’s resolution, and may worsen tensions,” he told a daily news briefing.

“We call on all sides to keep using dialogue and negotiation to appropriately resolve disagreements, to push for a political resolution to the Ukraine crisis. Sanctions are not in any party’s interests.”

U.S. President Barack Obama, speaking in the Philippines, said Washington would announce new sanctions on Russia later in the day. He said the United States and its allies were keeping in reserve further measures against Moscow.

China has adopted a cautious response to the crisis, not wanting either to alienate key ally Russia or comment directly on the referendum in which Crimea voted overwhelmingly to join Russia, lest it set a precedent for its own restive regions, like Tibet.
But China has also said it would like to continue to develop “friendly cooperation” with Ukraine and that it respects the ex-Soviet state’s independence, sovereignty and territorial integrity.

China said in March, after Crimea’s parliament voted to join Russia, that sanctions were not the best way to resolve the situation.

Ukrainian President Viktor Yanukovich, since ousted after three months of sometimes violent protests, visited China in December in the hope of winning much-needed financial aid, but China did not say it would provide any loans.

Source: Reuters “China restates opposition to sanctions on Russia over Ukraine”

Related posts:

  • China Wins Advantages from All Sides in Ukraine Crisis dated March 16, 2014
  • China: Xi Jinping Skillfully Pleases Russia, US, EU, etc. Concerning Ukraine dated March 11, 2014
  • The Mystery of China’s Support for Putin’s Confrontation the West 2” on March 9, 2014
  • The Mystery of China’s Support for Putin’s Confrontation with the West dated March 8, 2014
  • Cold War Again: Russia Plus China v. US dated March 7, 2014
  • China Is Definitely on Russia’s Side but Refrains from Making Its Stance Clear dated March 5, 2014
  • China paper slams West’s ‘Cold War mentality’ over Ukraine dated February 27, 2014
  • The beginning of a new Cold War: On Putin’s Beijing visit dated June 6, 2012

China party mouthpiece says no Internet freedom without order, as US TV shows pulled

The company logo of Sina Corp is seen atop their headquarters in Beijing, April 17, 2014.  Credit: Reuters/China Daily

The company logo of Sina Corp is seen atop their headquarters in Beijing, April 17, 2014.
Credit: Reuters/China Daily

There can be no Internet freedom without order, China’s top Communist Party newspaper said on Monday after several U.S. television shows were pulled from Chinese video sites, the latest signs of Beijing’s tightening grip on online content.

The removal of the shows coincides with a broad crackdown on online freedom of expression that has intensified since President Xi Jinping came to power last year and drawn criticism from rights advocates at home and abroad.

Authorities last week also stepped up their battle against pornography, revoking some online publication licenses of one of China’s largest Internet firms, Sina Corp, for allowing “lewd and pornographic” content.

“While ordinary people and governments have enjoyed the conveniences brought by the Internet, they have also in turn experienced the Internet’s negative effects and hidden security dangers,” the People’s Daily, the party’s main mouthpiece, said in a commentary.

It was published under the pen name “Zhong Sheng”, meaning “Voice of China”, often used to give views on foreign policy.

“If you don’t have Internet order, how can you have Internet freedom? Anyone enjoying and exercising their Internet rights and freedoms must not harm the public interest and cannot violate laws and regulations and public ethics,” the paper said.

Four U.S. television shows, The Big Bang Theory, The Practice, The Good Wife and NCIS, were ordered removed from video websites at the weekend by the government, the official Xinhua news agency said.

The series are all popular and it was not clear why these particular programs had been singled out.

Searches on Youku Tudou, Sohu and Tencent, which provide the shows, produced messages that the content was temporarily unavailable.

“I believe it’s a standalone event and it doesn’t represent a policy change toward American TV shows,” Sohu CEO Charles Zhang told a conference call with reporters.

The directive, he said, gave no explanation for the take-down notice and he declined to comment further. Youku Tudou and Tencent declined comment on the order.

Earlier on Monday, state broadcaster China Central Television (CCTV) told Reuters it had acquired the exclusive broadcasting rights for The Big Bang Theory, but did not specify whether or not the license was only for TV.


The removal of the shows followed a directive from the State Administration of Press, Publication, Radio, Film and Television (SARFT) last month that tightened the process for broadcasting television programs and short films online.

Programs and films lacking licenses are not permitted to be shown online, according to the SARFT directive. Penalties include a warning and a fine and, in serious cases, a five-year ban on operations and investment in online programming.

But there are no specific regulations governing overseas TV programs licensed by Chinese websites, said one person who works at an online video site, adding that regulation was expected at some point but with a minor impact on the industry.

Nonetheless, the lack of clarity from both the government and the companies involved raises questions about whether foreign programs will be subject to greater scrutiny.

China’s online video market was worth 12.8 billion yuan ($2.05 billion) in 2013, according to Chinese data firm iResearch. Market value is expected to almost triple by 2017.

SARFT has been in discussions with online video sites about greater control of their content since 2009, according to people familiar with the matter.

China maintains tight control over the media. Censorship is widespread, and Internet users cannot access information about many topics without special software to circumvent restrictions.

Online video sites are extremely popular and can act as a lodestone for comment on social issues.

The Communist Party last year renewed a campaign on online interaction, threatening legal action against people whose perceived rumors on microblogs like Sina Weibo, are reposted more than 500 times or seen by more than 5,000 people.

The campaign has muted online demands from advocates of transparency, who see it as a tool to punish Party critics.

($1 = 6.2536 Chinese yuan)

Source: Reuters “China party mouthpiece says no Internet freedom without order, as US TV shows pulled”

Related posts:

  • Man confesses in first public trial in China’s rumor crackdown: Xinhua dated April 11, 2014
  • How rumor sparked panic and three-day bank run in Chinese city dated March 26, 2014
  • China holds two bloggers as it expands crackdown on rumors dated October 18, 2013
  • China experimenting with more ‘subtle’ Internet censorship dated June 2, 2013