China’s Telephone, Hanging Array for 6000m Deep Sea Communication


Recovery of water telephone-6971 used for deep sea communication alone or in cordination with the acustic hanging array

Recovery of water telephone-6971 used for deep sea communication alone or in cordination with the acustic hanging array

Lifting down the acoustic hanging array used for deep sea communication alone or in cordination with the water telephone

Recoverty of the acoustic hanging array used for deep sea communication alone or in cordination with the water telephone

In its report on what China’s Jiaolong deep sea submersible has achieved in its submerge operations at world deepest Mariana Trench in northern Pacific, huanqiu.com gives no photos of the submersible. As shown on top, four of the six photos posted by the website are water telephone-6971 and acoustic hanging array used for communication between the submersible and the mother ship more than 6,000 meters deep in the trench.

As there are no wire links between the telephone or array and the submersible or between them and the mother ship, there is speculation that the photos show China’s advanced deep sea communication equipment, which certainly can be used for military purposes.

Source: huanqiu.com “Jiaolong’s huge achievements in submerging into world deepest trench” (summary and comment by Chan Kai Yee on the report in Chinese)


China’s reforms not enough to arrest mounting debt: Moody’s


FILE PHOTO: A labourer has his dinner under his shed at a construction site of a residential complex in Hefei, Anhui province, August 1, 2012. REUTERS/Stringer/File Photo

By Yawen Chen and Ryan Woo | BEIJING Fri May 26, 2017 | 7:16am EDT

China’s structural reforms will slow the pace of its debt build-up but will not be enough to arrest it, and another credit rating cut for the country is possible down the road unless it gets its ballooning credit in check, officials at Moody’s said.

The comments came two days after Moody’s downgraded China’s sovereign ratings by one notch to A1, saying it expects the financial strength of the world’s second-largest economy to erode in coming years as growth slows and debt continues to mount.

In announcing the downgrade, Moody’s Investors Service also changed its outlook on China from “negative” to “stable”, suggesting no further ratings changes for some time.

China has strongly criticized the downgrade, asserting it was based on “inappropriate methodology”, exaggerating difficulties facing the economy and underestimating the government’s reform efforts.

In response, senior Moody’s official Marie Diron said on Friday that the ratings agency has been encouraged by the “vast reform agenda” undertaken by the Chinese authorities to contain risks from the rapid rise in debt.

However, while Moody’s believes the reforms may slow the pace at which debt is rising, they will not be enough to arrest the trend and levels will not drop dramatically, Diron said.

Diron said China’s economic recovery since late last year was mainly thanks to policy stimulus, and expects Beijing will continue to rely on pump-priming to meet its official economic growth targets, adding to the debt overhang.

WAITING FOR IMPLEMENTATION

Moody’s also is waiting to see how some of the announced measures, such as reining in local government finances, are actually implemented, Diron, associate managing director of Moody’s Sovereign Risk Group, told reporters in a webcast.

China may no longer get an A1 rating if there are signs that debt is growing at a pace that exceeds Moody’s expectations, Li Xiujun, vice president of credit strategy and standards at the ratings agency, said in the same webcast

“If in the future China’s structural reforms can prevent its leverage from rising more effectively without increasing risks in the banking and shadow banking sector, then it will have a positive impact on China’s rating,” Li said.

But Li added: “If there are signs that China’s debt will keep rising and the rate of growth is beyond our expectations, leading to serious capital misallocation, then it will continue to weigh on economic growth in the medium term and impact the sovereign rating negatively.”

“China may no longer suit the requirement of A1 rating.”

Li did not give a specific target for debt levels nor a timeframe for further assessments.

Moody’s expects China’s growth to slow to around 5 percent in coming years, from 6.7 percent last year, compounding the difficulty of reducing debt. But Diron said the economy will remain robust, and the likelihood of a hard landing is slim.

After Moody’s downgrade, its rating for China is on the same level as that on Fitch Ratings, with Standard & Poor’s still one notch above, with a negative outlook.

On Friday, Fitch said it is maintaining its A+ rating. Andrew Fennel, its direct of sovereign ratings, noted China’s “strong macroeconomic track record”, but said that its growth “has been accompanied by a build-up of imbalances and vulnerabilities that poses risks to its basic economic and financial stability”.

STIMULUS SPREE

Government-led stimulus has been a major driver of China’s economic growth over recent years, but has also been accompanied by runaway credit growth that has created a mountain of debt – now at nearly 300 percent of gross domestic product (GDP).

Some analysts are more worried about the speed at which the debt has accumulated than its absolute level, noting much of the debt and the banking system is controlled by the central government.

UBS estimates that government debt, including explicit and quasi-government debt, rose to 68 percent of GDP in 2016 from 62 percent in 2015, while corporate debt climbed to 164 percent of GDP in 2016 from 153 percent the previous year.

A growing number of economists believe that a massive bank bailout may be inevitable in China as bad loans mount. Last September, the Bank for International Settlements (BIS) warned that excessive credit growth in China signaled an increasing risk of a banking crisis within three years.

IS BEIJING MAKING PROGRESS?

The Moody’s downgrade was seen as largely symbolic because China has relatively little foreign debt and local markets are influenced more by domestic factors, with many companies enjoying stronger credit ratings from home-grown agencies than they would in the West.

Still, the rating demotion highlighted investor worries over whether China has the will and ability to contain rising risks stemming from years of credit-fueled stimulus, without triggering financial shocks or dampening economic growth.

China has vowed to lower debt levels by rolling out measures such as debt-to-equity swaps, reforming state-owned enterprises (SOEs) and reducing excess industrial capacity.

In recent months, regulators have issued a flurry of measures to clamp down on the shadow banking sector while the central bank has gingerly raised short-term interest rates.

But moves so far have been cautious, especially heading into a key political leadership reshuffle later this year.

The autumn’s Communist Party Congress is President Xi Jinping’s most important event of the year, where a new generation of up and coming leaders will be ushered into the Standing Committee, China’s elite ruling inner core.

But party congresses are always tricky affairs, as different power bases compete for influence, so the government will be keen to ensure there are no distractions like financial or economic problems or diplomatic confrontations.

(Additional reporting by Ben Blanchard and Elias Glenn; Editing by Kim Coghill and Richard Borsuk)

Source: Reuters “China’s reforms not enough to arrest mounting debt: Moody’s”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Assembly Shop of China’s Homegrown WS-15 Engine for J-20 Stealth Fighter


China’s homegrown powerful WS-15 engine for its most advanced stealth fighter J-20. Mil.huanqiu.com photo

WS-15 assembly factory. Mil.huanqiu.com photo

WS-15 assembly factory. Mil.huanqiu.com photo

Mil.huanqiu.com has a report today on the progress of the development and assembly of China’s homegrown engine for its most advanced stealth fighter J-20, which is said to lack engines powerful enough to achieve its designed advantages. No one in the world is willing to sell such powerful engine so that China has to develop its homegrown powerful engine for J-20.

According to the report, CCTV reporters have recently visited the assembly factory of AECC Shenyang Liming Group Co., Ltd. that develops and assemblies WS-15 Emei turbofan for J-20. There was report that WS-15 is more powerful than all its foreign counterparts, but its details remain China’s top secret.

However, CCTV has been able to take 15 photos of the top secret engine and its assembly factory, three of which are shown on top of this post.

The report only reveals that the internal workings of an aircraft engine (not specifically WS-15) are very complicated being made up of over 10,000 precision parts and that the quality of the assembly as the final step in producing an aircraft engine (not specifically WS-15) to a major extent affects the quality of the engine.

Source: mil.huanqiu.com “Official media reveals progress of homegrown engine for J-20” (summary by Chan Kai Yee based on the report in Chinese)


Chinese jets intercept U.S surveillance plane: U.S. officials


Two Chinese fighter jets intercepted a U.S. Navy surveillance plane over the South China Sea on Wednesday, with one coming within 200 yards (180 meters) of the American aircraft, U.S. officials told Reuters.

The officials, speaking on condition of anonymity, said initial reports showed that the U.S. P-3 Orion surveillance plane was 150 miles (240 km) southeast of Hong Kong in international airspace when the Chinese aircraft carried out the unsafe intercept. One Chinese aircraft flew in front of the American plane, restricting its ability to maneuver.

The Pentagon confirmed that two Chinese jets had carried out the intercept, saying it was “unsafe and unprofessional.”

“We continue to review the facts of this incident and will convey our concerns through appropriate channels with the Chinese government,” Pentagon spokesman Navy Commander Gary Ross said in a statement.

A U.S. Navy warship sailed within 12 nautical miles (22 km) of an artificial island built up by China in the South China Sea, U.S. officials said on Wednesday, the first such challenge to Beijing in the strategic waterway since U.S. President Donald Trump took office.

China is deeply suspicious of any U.S. military activity around its coastline, especially in the resource-rich South China Sea, parts of which are disputed by China and its smaller neighbors, including the Philippines, Vietnam and Malaysia.

Incidents such as Wednesday’s interception are not uncommon.

Earlier this month, two Chinese SU-30 aircraft intercepted a U.S. aircraft designed to detect radiation while it was flying in international airspace over the East China Sea.

(Reporting by Idrees Ali; Editing by Jonathan Oatis)

Source: Reuters “Chinese jets intercept U.S surveillance plane: U.S. officials”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Timid US FON Operation Not Affects China’s Control of South China Sea


A China coast guard ship patrolling South China Sea. Photo: Getty Images

I have just reblogged Reuters’ report that showing Western media’s satisfaction at US Navy’s resumption of freedom of navigation (FON) operation in the South China Sea.

Reuters quotes US officials who would not reveal their identities as describing the operation as challenging China. However, Foreign Policy says in its article “In the South China Sea, the U.S. is Struggling to Halt Beijing’s Advance” yesterday, “The Pentagon sought to downplay the significance of the operation, which it described as routine. Adm. John Richardson, the chief of naval operations, described the passage at an event in Washington Thursday as ‘not confrontational,’ and said that the so-called freedom of navigation operations by U.S. ships receive exaggerated scrutiny for the supposed diplomatic messages they convey.”

The US can do nothing to put an end to China’s absolute control of the South China Sea with its artificial islands, therefore Foreign Policy says in its article, “Despite a belated U.S. naval patrol, Beijing’s bid to extend its military power over the South China Sea is moving ahead unchecked.”

As pointed our in my previous posts, such FON operations only give China excuse to militarize its artificial islands in the South China Sea.

Foreign Policy describes the situation by quoting Rapp-Hooper, a senior fellow at the Center for a New American Security, as saying, “They basically succeeded in their construction projects, and are now well on their way to having floating bases out in the Spratly Islands, and there’s been really very little pushback and they’ve had to pay very little cost for doing so….It is, unfortunately, now game over.”

Comment by Chan Kai Yee on Reuters’ report that I have just reblogged and Foreign Policy’s article, full text of which can be viewed at http://foreignpolicy.com/2017/05/25/in-the-south-china-sea-the-u-s-is-struggling-to-halt-beijings-advance/?utm_source=Sailthru&utm_medium=email&utm_campaign=Edpix%205-25&utm_term=%2AEditors%20Picks.


U.S. warship drill meant to defy China’s claim over artificial island –officials


The Arleigh Burke-class guided-missile destroyer USS Dewey prepares for a replenishment-at-sea in the South China Sea May 19, 2017. Picture taken May 19, 2017. Kryzentia Weiermann/Courtesy U.S. Navy/Handout via REUTERS

By Idrees Ali and David Brunnstrom | WASHINGTON Thu May 25, 2017 | 4:04pm EDT

A U.S. warship carried out a “maneuvering drill” when it sailed within 12 nautical miles of an artificial island built up by China in the South China Sea, to show Beijing it was not entitled to a territorial sea around it, U.S. officials said on Thursday.
The operation near Mischief Reef on Thursday, Pacific time, among a string of islets, reefs and shoals over which China has disputes with its neighbors, was the boldest U.S. challenge yet to Chinese island-building in the strategic waterway.

It drew an angry response from China, which President Donald Trump has tried to court in recent weeks to persuade it to take a tougher line on North Korea’s nuclear and missile programs. [nL1N1IQ2FH]

Analysts say previous U.S. “freedom-of-navigation operations” in the Spratly archipelago involved “innocent passage,” in which a warship effectively recognized a territorial sea by crossing it speedily, without stopping.

On Thursday, the destroyer USS Dewey conducted a “man overboard” exercise, specifically to show that its passage within 12 nautical miles was not innocent passage, U.S. officials said.

“USS Dewey engaged in normal operations by conducting a maneuvering drill inside 12 nautical miles of Mischief Reef,” one official said, speaking on condition of anonymity.

“The ship’s actions demonstrated that Mischief Reef is not entitled to its own territorial sea regardless of whether an artificial island has been built on top of it.”

It drew an angry response from China, which President Donald Trump has tried to court in recent weeks to persuade it to take a tougher line on North Korea’s nuclear and missile programs. [nL1N1IQ2FH]

Analysts say previous U.S. “freedom-of-navigation operations” in the Spratly archipelago involved “innocent passage,” in which a warship effectively recognized a territorial sea by crossing it speedily, without stopping.

On Thursday, the destroyer USS Dewey conducted a “man overboard” exercise, specifically to show that its passage within 12 nautical miles was not innocent passage, U.S. officials said.

“USS Dewey engaged in normal operations by conducting a maneuvering drill inside 12 nautical miles of Mischief Reef,” one official said, speaking on condition of anonymity.

“The ship’s actions demonstrated that Mischief Reef is not entitled to its own territorial sea regardless of whether an artificial island has been built on top of it.”

Commander Gary Ross, a Pentagon spokesman, said that freedom of navigation operations are not specific to one country and the Defense Department would release summaries of these operations in an annual report and not sooner.

“We are continuing regular FONOPS, as we have routinely done in the past and will continue to do in the future,” Ross said, using an acronym for freedom of navigation operations.

The Pentagon has not confirmed the most recent operation.

China claims nearly all of the South China Sea and Washington has criticized its construction of islands and build-up of military facilities there, concerned they could be used to restrict free movement and broaden Beijing’s strategic reach.

U.S. allies and partners in the region had grown anxious as the Trump administration held off on carrying out South China Sea operations during its first few months in office.

Greg Poling of Washington’s Center for Strategic and International Studies think tank said that under international law, Mischief Reef was not entitled to a territorial sea as it was underwater at high tide before it was built up by China.

“This was a statement to the Chinese,” he said.

“The previous two freedom-of-navigation operations only challenged China’s demand for prior notification for innocent passage through the territorial sea; this one asserted that there is no territorial sea at all.”

The Trump administration vowed to conduct more robust South China Sea operations after President Barack Obama was criticized for potentially reinforcing China’s claims by sticking to innocent passage.

Even so, this was the first freedom-of-navigation operation since October and since Trump took office in January.

It comes ahead of a visit to Singapore next week by U.S. Defense Secretary Jim Mattis to discuss security with regional counterparts.

Beijing said two Chinese guided-missile warships had warned the U.S. vessel to leave the waters and that it had lodged “stern representations” with the United States.

China’s claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

(Reporting by David Brunnstrom and Idrees Ali in Washington; Editing by James Dalgleish and Marguerita Choy)

Source: Reuters “U.S. warship drill meant to defy China’s claim over artificial island –officials”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Ukraine to Help China Make Advanced Aircraft Engines


Ukrainian AI-222-25F afterburning turbofan that has already been installed on China’s L-15 prototype. Mil.huanqiu.com photo

In its report “FIRST AIRCRAFT ENGINE ASSEMBLED IN CHINA USING MOTOR SICH TECHNOLOGY COULD BE SHOWN BY LATE 2017 – KUBIV” on May 23, open4business.com.ua says Ukraine and China will set up a joint venture between its PJSC Motor Sich (Zaporizhia) and China’s Beijing Skyrizon Aviation Industry Investment Co. Ltd. to use Ukrainian technology to produce aircraft engines.

China can make advanced fighter jets but cannot equip them with advanced Chinese or imported aircraft engines. It has an urgent need to import engine technology but no one is willing to provide until Ukraine is willing to provide now.

Ukraine on the other hand needs funds to improve its aircraft engine technology. The report says that China will provide US$250 million for PJSC Motor Sich’s modernization.

Mil.huanqiu.com says in its report “Ukrainian first prime minister visit a mystic place: Perhaps very good for Chinese aircraft engine industry” on May 23 that after attending the One Belt One Road summit, Ukrainian First Vice Prime Minister Stepan Kubiv visited a Chinese private aircraft engine producer in Chongqing, China and reached agreement with China for the establishment of an aircraft engine joint venture to provide China with Ukrainian aircraft engine technology.

Ukraine has helped China build aircraft carriers and world largest air-cushioned landing crafts, but refused to provide China with its aircraft engine technology in spite of China’s repeated requests. The establishment of the aircraft engine joint venture means the further strengthening of the strategic relations between Ukraine and China so that Ukraine is now willing to provide China with the best of its military technology.

China has allocated 100 billion yuan (USD160 billion) for development of advanced aircraft engines to meet its urgent need for advanced aircraft engines to equip its stealth fighters J-20 and J-31. The joint venture will greatly facilitate China’s achievement of that goal.

Comment by Chan Kai Yee on open4business.com.ua and mil.huanqiu.com’s reports. Mil.huanqiu.com’s report is in Chinese and a summary translation of it is given in the post. Full text of it in Chinese can be viewed at http://mil.huanqiu.com/observation/2017-05/10717781.html while that of open4business.com.ua’s report is reblogged below:

FIRST AIRCRAFT ENGINE ASSEMBLED IN CHINA USING MOTOR SICH TECHNOLOGY COULD BE SHOWN BY LATE 2017 – KUBIV

23 May , 2017

KYIV. May 23 (Interfax-Ukraine) – The first aircraft engine assembled in China under Ukrainian technologies within the framework of strategic partnership between PJSC Motor Sich (Zaporizhia) and China’s Beijing Skyrizon Aviation Industry Investment Co. Ltd. could be demonstrated by late 2017, Ukraine’s First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said.

During a briefing held in Kyiv and dedicated to the results of a recent visit of the Ukrainian delegation to China to participate in a high-level dialogue within the framework of the “One Belt. One Road” forum, the deputy premier highlighted the agreements achieved on Ukrainian-Chinese cooperation in the aircraft engine industry, saying the creation of aircraft engines production in Chongqing under Ukrainian technologies is “one of the priorities of the government.”

“Skyrizon and Motor Sich will create a joint venture for production of aircraft engines using Ukrainian technologies in China’s Chongqing. We want in 2017 to show the first engine that will be assembled at this plant,” Kubiv said.

He also welcomed the plans of the Chinese side envisaged by the cooperation program to invest $250 million in the modernization of Motor Sich, noting that the implementation of the program of Ukrainian-Chinese strategic cooperation in the field of aircraft engine building will strengthen the positions and influence of the Ukrainian aviation industry in the world market.