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Saturday, 5 July 2014

Australian 'racist rant woman'; AUD goes down under




Australian police have charged a woman for racially abusing passengers on a train after a video recording her tirade was posted online and went viral, sparking a social media backlash.

The 55-year-old, named by Australian media as Karen Bailey, was arrested late Thursday after allegedly launching an expletive-filled rant at young children and an Asian woman during a Sydney train journey.

New South Wales police said she was charged with offensive language and will appear in court later this month.

Bailey started to scream at two children aged seven and 10 after she boarded the train, telling their mother to "getting your fucking bogan children off the seat", the mother, Jade Marr, told the Newcastle Herald.

"It was unbelievable to think somebody would say those things and act like that," Marr said.

The Australian slang term "bogan" roughly translates as "trashy".

Bailey then turned her attention to other passengers as they filmed her outburst, telling a man beside an Asian woman that "he can't even get a regular girlfriend, he's got to get a gook".

The term gook is a disparaging term to describe Asians. Bailey also mocked the Asian woman's accent and pulled back her eyes to ridicule her features.

The video, which was posted on YouTube by a passenger on Wednesday, had been viewed more than 250,000 times by Friday morning and attracted almost 1,000 comments.

Most of the comments criticised Bailey for her outburst, although several were supportive of her remarks.

Australia's Race Discrimination Commissioner Tim Soutphommasane said on Twitter that "there is no excuse for acts of racial insult, humiliation and intimidation".

"When confronted with such conduct, everyone should consider a response, including reporting it to a relevant authority," he wrote.

Bailey told media group Ninemsn she was having a "really, really rotten day" and "it's awful what I said to that woman, I do agree".

"There's no excuse to rant at people like that," she said. "It's awful and I wouldn't wish it on my worst enemy, regardless of any race."

Bailey initially gave her name as Sue Wilkins to passengers and some media outlets once the video of her rant went viral.

The incident came two years after a French-speaking woman singing on a Melbourne bus was told by a man to "speak English or die" in another video posted on the Internet that went viral.

Two Chinese students were burned, beaten and racially abused on a Sydney train in the same year, sparking an uproar on China's social media sites.

Source: AFP

Australian dollar goes down under
  
Currency in biggest drop since January

Stevens: 'Most measurements would say it is overvalued, and not just by a few cents' - Bloomberg

CANBERRA: Glenn Stevens’ renewed jawboning of the Aussie pushed it toward the biggest two-day drop since January as the central bank governor said investors were underestimating chances of a significant fall in the currency.

“Most measurements would say it is overvalued, and not just by a few cents,” Stevens said in the text of a speech delivered in Hobart.

“We think that investors are underestimating the likelihood of a significant fall in the Australian dollar at some point.”

The Aussie - which has traded as high as about US$1.11 and as low as 77 US cents in the past five years - fell 0.8% on Wednesday, continuing a retreat from an almost eight-month high.

The elevated currency has impeded efforts to stimulate non-mining areas of the economy with record-low interest rates.

“The speech represents the start of a new journey down the road of jawboning,” Stephen Walters, JPMorgan Chase & Co’s chief economist in Australia, wrote in a note. “The gap between AUD and commodity prices remains unusually wide, so the new adventures of jawboning likely will continue.”

Walters said he expects the RBA will hold the benchmark cash rate steady at 2.5 % for at least another year, “but remain of the view that a rate cut in the near term remains more likely than a hike.”

The Reserve Bank of Australia kept its benchmark steady for an 11th month on July 1 and flagged a period of steady borrowing costs.

“Investors in their search for yield and in the very low volatility world that we presently live in where people think that the risk of anything going wrong seems to have completely gone away, I think that’s over optimistic,” Stevens said in response to a question on the currency yesterday.

“And I think part of those are underestimation of the likelihood of the Aussie going down at some point, and possibly quite materially.”

The Australian dollar had gained almost 8% since the RBA moved to a neutral bias in February this year.

It traded at 93.68 US cents at 4:48 pm in Sydney, from 94.30 cents before Stevens’ speech was released.

The comments onthe Aussie are “clear jawboning,” said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. “His comments were taken as noticeably more dovish than what the market was geared up for.”

Stevens said language in recent statements about stability of interest rates was intended to clarify that the central bank did not think a higher benchmark was imminent.

“Overall, I judge that language to have served its intended purpose,” he said.

“Present market pricing suggests that market participants expect interest rates to remain low for some time yet.”

Changes in language should be expected to continue over time as more information becomes available, he said.

Long before any rate increase is considered the board would probably “revert to the more normal formulation that the stable policy settings ‘remained appropriate’ or something like that,” he said.

— Bloomberg

Friday, 4 July 2014

Japanese World War II criminals' confessions released

  1. After the end of World War Two, when Japanese war criminals were apprehended and interrogated, they wrote confessions.

    More documents decoded to reveal Japan´s war crimes

    An archive bureau in northeast China is drawing together experts to decode a vast number of document...

    BEIJING, July 3 -- Confessions made by 45 Japanese war criminals tried and convicted by military tribunals in China after World War II (WWII) were published online on Thursday.

    Handwritten confessions, along with Chinese translations and abstracts in both Chinese and English, have been published on the website of the State Archives Administration, said the administration's deputy director Li Minghua at a press conference on Thursday.

    "These archives are hard evidence of the heinous crimes committed by Japanese imperialism against the Chinese," Li said.

    "Japanese Prime Minister Shinzo Abe, disregarding historical justice and human conscience, has been openly talking black into white, misleading the public, and beautifying Japanese aggression and its colonial history since he took office," Li told reporters.

    "This challenges WWII achievements and the post-WWII international order.

    "The administration has made them available online before the 77th anniversary of the July 7 incident to remember history, take history as a mirror, cherish peace... and prevent the replay of such a historical tragedy," Li added.

    The July 7 incident, or the Lugouqiao Incident, in 1937 marked the beginning of China's War of Resistance Against Japanese Aggression, which lasted eight years.

China began publishing "confessions" of 45 convicted Japanese World War II criminals on Thursday, officials said, in Beijing's latest effort to highlight the past amid a territorial dispute between the two.

BEIJING: China began publishing "confessions" of 45 convicted Japanese World War II criminals on Thursday, officials said, in Beijing's latest effort to highlight the past amid a territorial dispute between the two.

The documents, handwritten by Japanese tried and convicted by military courts in China after the war, are being released one a day for 45 days by the State Archives Administration (SAA), it said in a statement on its website.

In the first, dated 1954 and 38 pages long, Keiku Suzuki, described as a lieutenant general and commander of Japan's 117th Division, admitted ordering a Colonel Taisuke to "burn down the houses of about 800 households and slaughter 1,000 Chinese peasants in a mop-up operation" in the Tangshan area, according to the official translation.

Among a litany of other crimes with a total toll in the thousands, he also confessed that he "cruelly killed 235 Chinese peasants seeking refuge in a village near Lujiayu".

He also "ordered the Epidemic Prevention and Water Supply Squad to spread cholera virus in three or four villages".

The document, which is littered with descriptions of "Japanese imperialists", appeared to have been written by someone with native-level command of Japanese, said one Japanese journalist who saw it.

However, some of the sentences were very long and contained multiple clauses, possibly indicating it had gone through several drafts.

It was not clear whether Suzuki's or the other yet-to-be-published confessions -- all of them relating to 45 war criminals put on trial in China in 1956 -- were previously publicly available.

Suzuki was held by Soviet forces at the end of the conflict and transferred to Chinese custody in 1950, earlier Chinese documents said, adding that he was sentenced to 20 years in prison by the court and released in 1963.

The publication of the confessions comes as Tokyo and Beijing are at odds over a territorial dispute in the East China Sea, and as Beijing has argued that a reinterpretation of Japan's pacifist constitution could open the door to remilitarisation of a country it considers insufficiently penitent for its actions in World War II.

China regularly accuses Japan of failing to face up to its history of aggression in Asia, criticism that has intensified since the democratic re-election in December 2012 of Prime Minister Shinzo Abe, who has advocated a more muscular defence and foreign policy stance.

China was outraged in December last year when Abe visited Tokyo's Yasukuni Shrine, where the souls of Japan's war dead, including several high-level officials executed for war crimes after World War II, are enshrined.

"These archives are hard evidence of the heinous crimes committed by Japanese imperialism against the Chinese," the SAA's deputy director Li Minghua was quoted as saying by the official Xinhua news agency.

"Japanese Prime Minister Shinzo Abe, disregarding historical justice and human conscience, has been openly talking black into white, misleading the public, and beautifying Japanese aggression and its colonial history since he took office," Li said.

The SAA said the documents were being released to mark the 77th anniversary Monday of the Marco Polo Bridge incident, a clash between Chinese and Japanese troops near Beijing, commemorated as the start of what is known in China as the War of Resistance Against Japanese Aggression, which ended with Tokyo's World War II defeat in 1945.

Japan's move escalates regional tension, signals fascism emergence: foreign experts Foreign analysts and scholars have harshly ...
The Japanese cabinet's approval Tuesday of the right to collective self-defense is a major shift of Japan's defense policy. J..

Thursday, 3 July 2014

Japan's removal of ban on collective self-defense signals fascism emergence, escalates tension, stirs international unease


Japan's move escalates regional tension, signals fascism emergence: foreign experts

Foreign analysts and scholars have harshly criticized a resolution passed by the Japanese cabinet on Monday to allow it a larger military role in Asia, saying it will escalates regional tensions and is a sign of fascism emergence.

The resolution, which allows Japan to exercise the right to collective self-defense by reinterpreting the pacifist Constitution, greenlights Japan to take military action to defend other countries even though the nation itself is not under attack, marking a major overhaul from Japan' s postwar security policy.

"Japan is changing," warned Shada Islam, the director of Brussels-based Policy, Friends of Europe in a written interview with Xinhua.

The move is part of Japanese Prime Minister Shinzo Abe's drive to transform Japan into a "normal country" when it comes to defence and security, said Islam, adding that he has also pushed through a law to strengthen control of state secrets, created American-style National Security Council, and lifted Japan' s self-imposed restriction on exporting weapons.

Abe's so-called "proactive pacifism" is clearly not popular at home and he has had to abandon his original plan to secure direct constitutional revision -- but this move should reassure the United States that Japan is taking on some responsibility for its own defence, she said.

Public opinion in Japan will continue to act as a brake on some of the Abe's more ambitious plans, so Abe will have to carefully balance his policies, she said, adding that the resolution "will certainly not enhance security and could increase tensions in northeast Asia."

It is absurd for Japan to allows collective self-defense, said Enes Begicevic, a journalist from Bosnia and Herzegovina, adding that Japan's move will lead to regional instability.

"This constitutional change is both historic and worrying as it moves one of the pillars which has maintained the balance of peace in East Asia since the end of the Second World War," said Augusto Soto, professor of ESADE institution of Ramon Llull University and Director of Dialogue with China Project.

This measure could have the effect of destabilizing Asia and the Pacific and this is understood by an important part of public opinion in Japan which is against the Abe administration. However, this opinion does not have the political power to stop the Japanese government's initiative, he said.

In the face of this situation China could launch a political offensive in order to try and convince Japanese public opinion that the announced measure goes against Japanese interests, he advised.

"The new interpretation of the constitution that Japan's cabinet has adopted now may do little good to the security situation in the Asia-Pacific region," Angel Maestro, a Spanish columnist of the Financial World and a expert on asian affairs.

Japan's neighbors may worry this is the sign of a new rise of the fascism in Japan's Political Arena. These countries may strengthen their defense forces as insurance against the possibility that Japan has chosen an expansionist foreign policy as it did during the Second World War, which would raise tensions in the region and escalate conflicts that already exist, he said.

"I think it may increase the historical mistrust that Japan already faces from its neighboring countries, especially China and Korea, about its military intentions," said Piin-Fen Kok, Director of China, East Asia and United States Program with the EastWest Institute.

It' s up to Japan to explain clearly to its neighbors why it is doing this, and why this is good for regional and global security. Japan also needs to provide assurances to its neighbors that it will not revert to its militaristic past, Kok said.

"Collective self-defense is a compromise born from Shinzo Abe's political will, who leads a group of people that don't represent the mainstream of Japanese politics," Professor Axel Berkofsky, senior associate research fellow of Italian Institute for International Political Studies (ISPI) has told Xinhua.

"It is funny to say that Japan should regain the respect of the world. It was just saying: It's a weak commitment, a political move, a dream, a vision of Abe himself," he added.

- Xinhua (Editor:Wang Xin、Huang Jin)

Japan’s removal of ban on collective self-defense stirs international unease

The Japanese cabinet has approved a resolution that would allow the country to exercise the right of collective self-defense by reinterpreting the Pacifist Constitution.

The resolution sets three conditions that would enable exercise of the right including "clear danger" to the lives of its people due to armed attacks on Japan or "countries with close ties".

The move is an overhaul of Japan’s exclusively defense-oriented security policy after World War II and over half of Japanese are against it.

Chinese Foreign Ministry spokesman Hong Lei said that China is opposed to Japan's pursuit of its domestic political goals by deliberately inventing a "China threat", and urged Japan to respect the legitimate security concerns of its Asian neighbors and deal prudently with relevant issues. He said that Japan must not undermine China's sovereignty and security interests, nor should it harm regional peace and stability.

Japan’s removal of the ban on collective self-defense comes at a time of strained Sino-Japan relations, said Yuan Yang, a researcher with the Academy of Military Sciences of PLA. According to Yuan, China’s rapid economic and military development is the motive behind Japan’s move to constrain China.

Yuan Yang believes that lifting the ban on collective defense would ease certain restrictions on the Japanese military forces and might lead to gradual expansion of its military capability.

Yuan points out that Japan’s emphasis on "countries with close ties", rather than confining itself to its allies, increases the possibility of conflict between China and Japan. There is now the possibiltiy that the two countries might clash over issues related to third parties as well as the Diaoyu Island issue and other issues in the East China Sea.

Zhou Yongsheng, a professor with the China Foreign Affairs University, has also noted that the most serious consequence of removing the ban on collective self-defense might be a military alliance betweeen Japan and countries like the Philippines and Vietnam.

Faced with this situation, China needs to show the world that with peaceful development as its basic state policy, it will never pose any threat to other countries. It should try to unite all peace-loving forces, especially peace forces in Japan, to prevent these Japanese government moves. But China also needs to make it clear to the world that with its own strengthened military forces, it has nothing to fear from the provocative actions of other countries. - (People's Daily Online)

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Wednesday, 2 July 2014

Japan defense shift sets free Tokyo’s militarism !

The Japanese cabinet's approval Tuesday of the right to collective self-defense is a major shift of Japan's defense policy.

Japan's Peace Constitution states the self-defense forces can only adopt an exclusively defense-oriented policy. Japanese Prime Minister Shinzo Abe had intended to overturn the constitution, but due to strong domestic opposition, he reinterpreted the constitution to allow Japan to defend its allies.

Generations of Japanese right-wing politicians have staged a relay race to amend the pacifist constitution. They proclaimed the right to send soldiers overseas, and now it is the right to exercise force. Abe has almost fulfilled this task, and the Peace Constitution will become nothing but a figurehead.
Abe and his followers are eager to free Japan from the restraints imposed by its defeat in World War II. The US aims to contain China by making use of Japan, which provides room for Abe's strategic ambition. Japan's aggression, previously restrained, has gradually awakened. The US has been quite aware of this, but it believes such a Japan suits its interests.

In the near future, Japan will be cautious in exercising the right of collective self-defense, but it's hard to say in a few years' time. Both Tokyo and Washington wish to see more disturbances in Asia, as the US hopes it will hinder China's rise and Japan wants to seek opportunities to realize its rise both politically and militarily.

China needs to expose the Japanese rightists' evil intent. Although South Korea also feels disgusted by Japanese right-wing forces, it will not stand up in opposition to Japan. Seoul is wary of its distance from China, Japan and the US.

We should not be too optimistic about the opinion war between China and Japan. To count on international opinion to press Japan has been proved unpractical, because the US and the West have no intention to stop Japan, despite their awareness of Japan's dirty tricks. China should avoid a worse situation when it has to make strategic compromises with Japan in spite of Japan's wrongdoings.

An aggressive Japan is nothing to be afraid of. China can well manage the security risks an overweeningly ambitious Japan poses. As long as China continues to rise, the US will deploy more forces in Asia. But between Beijing and Tokyo, Beijing has strategic advantage and is able to deter Tokyo.

With the increase of Japan's military moves and the intensifying of confrontation between China and Japan, the region will face the pressure and new strategic elements are likely to emerge.

It's almost 70 years since the end of WWII, but Japan has apparently forgotten about its past. The Japanese people have found every reason for their burning nationalistic ambitions.

Japan's victorious past has gradually turned into the policies and actions of the Japanese government. It's hard to say how far it will go, but what we need to do is to be ready in a way that makes Japan feel daunted.

Source: Source:Global Times Published: 2014-7-2 0:13:01

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Malaysia's flight MH370 mistakes reflect stagnant politics; Bad apples in NZ sex crime..

Malaysia is poised to escape the middle-income trap, but also ready to fall back into it.

Normally the middle-income trap refers to countries with per capita GDP ranging from $1,000 to $12,000. GDP per capita in Malaysia already reached $1,000 by 1977, and $11,000 by 2013. After ups and downs over almost four decades, it seems Malaysia could walk out of the middle-income trap very soon.

Nonetheless, according to the Asian Development Bank that created the concept, GDP per capita is only a superficial indicator. The more accurate definition of the middle-income trap is that when a country enters the ranks of middle-income countries, a series of problems emerge, including rising labor costs, a lack of technological innovation, and subsequent economic stagnation.

There are two aspects of the definition: rising productivity and good governance. The essence of governance here means encouraging reasonable competition to maximize the value of talent and give boost to innovation.

Malaysia's poor response following the disappearance of flight MH370 reflected the fact that the country is still way behind in terms of governance. Behind the chaotic information are the flaws in Malaysia's system of governance.

There are both systematic and cultural reasons behind Malaysia's poor governance. But it is more related to the lack of secularization.

One driving force in the rise of Malaysia's GDP per capita has been the export of abundant raw products such as oil and rubber.

Malaysia is a multi-ethnic country, with Malays making up 68 percent of the population, Chinese 24.6 percent, and Indians 7 percent. According to the law, Chinese Malaysians, who were historically dominant in the economy despite their smaller numbers, cannot take positions as top leaders; and Malays must make up two-thirds of ministers and parliamentary members, and three-fourths of civil servants.

Malays also enjoy special policies in other fields such as college admission and civil servant recruitment. Malays even enjoy a higher quota in the issuing of taxi operation licenses.

Some Malays simply acquire the licenses and rent them to Chinese, collecting unearned income.

This rigid system which shows special care for Malays, to a certain extent, helps different ethnic groups to stay in their own places and thus boosts social stability. But this also closes the channel for upward mobility because it fails to provide a reasonable platform for competition.

The special privileges enjoyed by Malays give leeway for corruption. And in terms of governance, these privileges translate into a conservative group with vested interests and a lack of talent.

The modernization of Malaysia's governance is also related to Islamic modernization.

In 2001, then prime minister Mahathir Mohamad announced that Malaysia was a Muslim country. Current Prime Minister Najib Razak also declared in 2007 that Malaysia has never been a secular country.

Even today, some states in Malaysia still maintain elements of Sharia law. Different religious populations have different civil laws, even when living in the same place.

Islam is not a negative element. However, integrating religion with the law and politics rather than separating them may cause social conservatism and isolation.

In fact, this is a misinterpretation that sees Malaysian politics as strictly controlled by the elite. What's dysfunctional is not elite politics itself, but a rigid, dull system that is responsible for selecting the political elite.

Malaysia is determined to enter the ranks of developed countries by 2020. But judging from its handling of the MH370 incident, Malaysia's modernization will take far longer than this.

Source: By Ding Gang Source:Global Times Published: 2014-3-19

Bad apples -Malaysian envoy in NZ sex crime 


Malaysian envoy in NZ sex crime named
A photo of the Malaysian High Commission in Wellington, New Zealand.

KUALA LUMPUR: The Malaysian diplomat who is at the centre of an alleged sexual assault case in New Zealand has been identified as Muhammad Rizalman Ismail.

His identity was allowed to be revealed after media organisations challenged a judge's decision to grant permanent name suppression, The New Zealand Herald reported today.

The identity of Muhammad Rizalman, 38, who worked at the Malaysian High Commission in Wellington, was previously concealed due to a immunity order imposed by a Wellington District Court judge on May 30.

However, the High Court at Wellington today held an emergency hearing to overturn the immunityruling and it was successful.

Meanwhile, the Malaysian Foreign Affairs Ministry said it will not waive Muhammad Rizalman's diplomatic immunity just yet. But they are prepared to do so, if necessary, so that the suspect can be prosecuted under the New Zealand law, its Minister Datuk Seri Anifah Aman said.

He said the Malaysian government is committed in ensuring the transparency of the investigation of this case.

"If it is absolutely necessary that we think it is best to (waive his immunity) we will do it without hesitation," he told a press conference in Wisma Putra here today.

Anifah also said, the Malaysian government has confidence with the Defence Ministry's (Mindef) board of inquiry (BOI) that they will communicate with the New Zealand authorities, adding that they will not hesitate to take stern action against the suspect.

"Mindef will not hesitate to act under the Armed Forces Act 1972, if it is proven beyond doubt that Muhammad Rizalman is responsible and guilty of the offense as charged," he said.

He said the waiver would be deemed necessary when New Zealand requested for Muhammad Rizalman's return, out of belief that the investigations in Malaysia were not done properly.

However, he informed that it was the New Zealand authorities who had allowed the man to be brought back to Malaysia in May.

Besides that, Muhammad Rizalman has also undergone medical checks at the Mindef Medical Centre on May 29 which include physical and mental tests.

Anifah said blood and urine tests were also conducted and the results were satisfactory. Muhammad Rizalman is now at the Tuanku Mizan Military Hospital to have his mental and emotional health assessed.

On the Malaysian High Commission's website in New Zealand, Muhammad Rizalman, who had previously claimed diplomatic immunity, is listed to be Defence staff assistant, with the rank of a warrant officer II.

The man was arrested after he allegedly followed a 21-year-old woman to her house on May 9 and attacked her.

Sources: Astro/The Star/Asia News Network

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Tuesday, 1 July 2014

Global bank profits hit US$920bil, China accounted for 1/3 total; Globalized RMB to stabilize world economy

LONDON: China's top banks accounted for almost one-third of a record US$920 billion of profits made by the world's top 1000 banks last year, showing their rise in power since the financial crisis, a survey showed on Monday.

China's banks made $292 billion in aggregate pretax profit last year, or 32 percent of the industry's global earnings, according to The Banker magazine's annual rankings of the profits and capital strength of the world's biggest 1,000 banks.

Last year's global profits were up 23 percent from the previous year to their highest ever level, led by profits of $55 billion at Industrial and Commercial Bank of China (ICBC). China Construction Bank, Agriculture Bank of China and Bank of China filled the top four positions.

Banks in the United States made aggregate profits of $183 billion, or 20 percent of the global tally, led by Wells Fargo's earnings of $32 billion.

Banks in the eurozone contributed just 3 percent to the global profit pool, down from 25 percent before the 2008 financial crisis, the study showed. Italian banks lost $35 billion in aggregate last year, the worst performance by any country.

Banks in Japan made $64 billion of profit last year, or 7 percent of the global total, followed by banks in Canada, France and Australia ($39 billion in each country), Brazil ($26 billion) and Britain ($22 billion),The Banker said.

The magazine said ICBC kept its position as the world's strongest bank, based on how much capital they hold - which reflects their ability to lend on a large scale and endure shocks.

China Construction Bank jumped to second from fifth in the rankings of strength and was followed by JPMorgan , Bank of America and HSBC .

ICBC, which took the top position last year for the first time, was one of four Chinese banks in the latest top 10.

Wells Fargo has this year jumped to become the world's biggest bank by market value, after a surge in its share price on the back of sustained earnings growth. Its market value is $275 billion, about $75 billion more than ICBC.

The Banker said African banks made the highest returns on capital last year of 24 percent - double the average in the rest of the world and six times the average return of 4 percent at European lenders.- Reuters

Globalized RMB to stabilize world economy


BEIJING, June 27 (Xinhua) -- The globalization of the yuan, or renminbi (RMB), will not only benefit the Chinese economy, but generate global economic stability, a senior banker has said.

The yuan did not depreciate during the 1997 Asian financial crisis or the 2008 global financial crisis, helping stabilize the global economy, Tian Guoli, chairman of the Bank of China, said at a forum in London last week, according to the Friday edition of the People's Daily.

China's economy ranks second in the world and its trade ranks first, so it is thought that use of the RMB in cross-border trade will be a mutually beneficial move for China and its trade partners.

The yuan has acquired basic conditions to become an international currency as China's gross domestic product took 12.4 percent of the world's total and its foreign trade 11.4 percent of the world's total in 2013, Tian said.

According to the central bank, RMB flow from China hit 340 billion yuan (55.74 billion U.S. dollars) in the first quarter of 2014, replenishing offshore RMB fluidity. The balance of offshore RMB deposits hit 2.4 trillion yuan at the end of March, 1.51 percent of all global offshore deposits. Offshore trade between the yuan and foreign currencies doubled in the first quarter from the fourth quarter of last year.

Analysts widely forecast five steps in RMB internationalization: RMB used and circulated overseas, RMB as a currency of account in trade, RMB used in trade settlement, RMB as a currency for fundraising and investment, and RMB as a global reserve currency.

Already, some neighboring countries and certain regions in developed countries are circulating RMB, indicating the first step has been basically achieved.

Data provider SWIFT's RMB tracker showed that in May, 1.47 percent of global payments were in RMB, a tiny amount compared to the global total but up from 1.43 percent in April. This indicated progress in the second and third steps.

Some countries in southeast Asia, Latin America and Africa have or are ready to take RMB as an official reserve currency. It indicated the fourth and the fifth steps are burgeoning.

Investors are also optimistic about RMB globalization. Bank of China's global customer survey shows that over half of the respondents expect RMB cross-border transactions to rise by 20 to 30 percent in five years. And 61 percent of overseas customers say they plan to use or increase use of RMB as a settlement currency.

Li Daokui, head of the Center for China in the World Economy under Tsinghua University, said RMB internationalization is a long-term process and should be made gradually based on China's financial reforms, including freeing interests and reforms on foreign exchange rates.

Dai Xianglong, former central bank governor of China, forecast that it will take about 10 to 15 years to achieve a high standard of RMB internationalization.

Among the latest moves toward RMB internationalization is the naming of two clearing banks to handle RMB business overseas.

The central bank announced last Wednesday that it has authorized China Construction Bank to be the clearing bank for RMB business in London, and the next day named the Bank of China as clearing bank for RMB business in Frankfurt.- Xindua

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Sunday, 29 June 2014

China wants strong defense; Never seek hegemony on 5 Principles of Peaceful Coexistence; Japan, Philippines using rule of law pretext

Xi Jinping stresses building strong frontier defense

Senior Chinese leaders Xi Jinping, Li Keqiang and Zhang Gaoli meet with representatives attending a national meeting on frontier and coast defense in Beijing, China, June 27, 2014. (Xinhua/Li Gang)

BEIJING, June 28 (Xinhua) -- Chinese President Xi Jinping called for efforts to build a strong and solid frontier defense network for both territorial land and water at a national meeting held here on Friday.

Xi said, upon mentioning frontier defense, one cannot help thinking China's modern history when the country was so weak and destitute that it was for everyone to bully.

Foreign aggressors broke China's land and sea defense for hundreds of times, plunging the Chinese nation into the abysm of calamity, Xi added, calling on the people not to forget the history of humiliation and to build a strong frontier.

Xi urged China's frontier defenders to meticulously monitor over and control the frontier and to mount actions to defend the country's maritime right, while implementing an overall national security outlook.

Furthermore, Xi called for efforts from both the military and civilian communities to strike a balance between frontier defense and economic development, staunchly safeguarding frontier security, stability and prosperity.

Premier Li Keqiang and Vice Premier Zhang Gaoli also attended the meeting. - Xindua

Xi pledges China will never seek hegemony

President re-affirms vow at meeting with leaders of Peaceful Coexistence doctrine's founding countries
Xi pledges China will never seek hegemony
Chinese President Xi Jinping on Saturday delivered a keynote speech at a commemoration marking the 60th anniversary of the Five Principles of Peaceful Coexistence at the Great Hall of the People in Beijing.[Photo/Xinhua]

Xi pledges China will never seek hegemony
Chinese President Xi Jinping (front row C), Myanmar President U Thein Sein (front row 4th L) and Indian Vice President Mohammad Hamid Ansari (front row 4th R) together with delegates from China, India and Myanmar attending a conference marking the 60th anniversary of the Five Principles of Peaceful Coexistence pose for a group picture during their meeting in Beijing, capital of China, June 28, 2013. [Photo/Xinhua]

China will never seek hegemony, no matter how strong it becomes, President Xi Jinping said on Saturday at a high-profile meeting to mark the 60th anniversary of the Five Principles of Peaceful Coexistence.

"China does not accept the logic that a strong country is bound to become hegemonic, and neither hegemony nor militarism is in the Chinese DNA," Xi said in a speech, as he played host to leaders from Myanmar and India to commemorate the anniversary.

Citing poems and old sayings from the three countries, Xi called for dialogue based on equality to resolve disputes and joint efforts to preserve regional peace.

He also announced the establishment of a friendship award and an outstanding scholarship related to the Five Principles of Peaceful Coexistence. 

Xi pledges China will never seek hegemony
Myanmar leader hails ties
Observers said Xi's remarks and the first meeting of leaders of all three of the peace code's founding countries since its inception sought to assure the world of China's peaceful development amid simmering tension in the East and South China seas.

It will take time for China, or any growing power, to be fully accepted by the world. But China will prove its intentions with its actions, based on the five principles, which can play a bigger role in the current international community, they added.

In 1954, the leaders of China, India and Myanmar initiated the Five Principles of Peaceful Coexistence. They are mutual respect for sovereignty and territorial integrity; mutual non-aggression; non-interference in each other's internal affairs; equality and mutual benefit; and peaceful coexistence.

The joint commemoration - especially the presence of Myanmar's President U Thein Sein and India's Vice-President Mohammad Hamid Ansari - shows those two countries' efforts to push forward the peace code and their relationship with China, said Zhang Jiuhuan, former director of the Department of Asian Affairs at the Foreign Ministry.

Having guided the rapid development of ties between China and Southeast Asia, the principles could also lead to the resolution of issues between China and some Southeast Asian countries in the South China Sea, said Zhang, who is also a former Chinese ambassador to Singapore and Thailand.

Wang Fan, vice-president of China Foreign Affairs University, said the five principles could be developed to become a mechanism to guarantee the spirit's future implementation.

East Asia - divided by an outdated alliance system - lacks a sound multilateral platform for cooperation. So the five principles under a mechanism could better restrict all concerned parties, he said.

Ansari also called for "a new paradigm for global action", "a framework in which opportunities and challenges for the betterment of our societies coexist".

The five principles "can act as a catalyst", he said in a speech at the meeting.

By Zhao Shengnan (China Daily)

Japan, Philippines using rule of law pretext

BEIJING, June 27 -- A spokesman for China's Foreign Ministry said on Friday said Japan and the Philippines have infringed on other countries' interests under the pretext of rule of law.

"Some countries are provoking and stirring up tensions on the one hand and vilifying other countries under the pretext of rule of law," Qin Gang said at a daily press briefing.

Qin's comments came after Philippine President Benigno Aquino and Japanese Prime Minister Shinzo Abe on Tuesday called for use of "the rule of law" to solve regional disputes, at a time when both countries are embroiled in separate rows with China.

Qin said China has always been committed to working with relevant countries and resolving the disputes on the basis of historical facts and international laws.

He also said China does not accept the international arbitration put forward by some countries, not because it is afraid to do so. The country is only "exercising the legitimate rights of signatories to the UN Convention on the Law of the Sea."

In early June, the Permanent Court of Arbitration asked China to submit evidence on its territorial claims in the South China Sea within six months for a procedural review of the suit filed by the Philippines.

China aims to properly resolve issues and protect regional peace and stability, which is also in line with the Declaration on the Conduct of Parties in the South China Sea , according to Qin.

"Some countries have infringed on the legitimate interests of other countries under the pretext of rule of law," he added, urging Japan and the Philippines to reflect on their acts in accordance with international laws and the norms guiding international relations.

(Xinhua)AFP

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