Stem education for life to reach new heights

It is necessary for the nation to embrace Stem education in order to reach new heights.

IT is imperative that schools and educational institutions do their part to emphasise the importance of Science, Technology, Engineering and Mathematics (Stem) to meet the country’s educational objectives for future growth and development and to meet the nation’s 2020 vision.

Universiti Tunku Abdul Rahman vice president (Internationalisation and Academic Development) Prof Dr Ewe Hong Tat

This is especially after Malaysia was ranked in the bottom third of 74 participating countries, in the Programme for International Student Assessment (Pisa) below the international and OECD (Organisation for Economic Co-operation and Development) average.

It is with this in mind that Universiti Tunku Abdul Rahman (UTAR ) is taking the initiative to promote and create awareness on the importance of Stem education among students and the community.

In the series of articles from UTAR, Part 1 and Part 2 (STEM Education for life, part 2) introduces Stem and why such education is necessary for the nation’s development and what the University is doing to promote it.

Engineering gains

During the turn of the century, the National Academy of Engineering of USA (http://www.nae.edu/) did a detailed study and listed the top 20 engineering achievements of the 20th century (www.greatachievements.org) that changed the world.

Of these the prominent ones were computers, aviation, the Internet, air-conditioning and refrigeration, highways, health technologies, laser and fibre optics, water supply and distribution; among many others. Consumers used them daily without realising that these were the results of engineering research and innovation that propelled the world forward.

Therefore, for a nation to continue to develop and grow, it is important to promote and use Stem education as the foundation and propeller of growth.

After all, it is through Stem education that design, discovery and inventions that bring forth life-changing growth and development, have been introduced.

In the 21st century, new innovations have emerged such as renewable energy and resources, Internet of Things (IoT), advanced materials and biotechnology which need new talents to continue to drive growth.

Without a strong foundation in Stem education, these talents will not be groomed to excel.

In the Malaysia Education Blueprint 2013 – 2025 (Chapter 3), Malaysia’s performance in the Trends in International Mathematics and Science Study (Timss) Eighth Grade Mathematics and Science against other countries over three cycles (1999, 2003, 2007), showed that in 2007, there was a marked downturn in both Mathematics and Science scores. In 2003, Malaysia obtained 10th position out of 45 countries for Mathematics and 20th position out of 45 countries for Science.

In 2007, Malaysia obtained 20th position out of 48 countries for Mathematics and 21st position out of 48 countries for Science, thus indicating a declining performance in students’ scores for both subjects.

Malaysia participated in the Pisa assessment for the first time in the Pisa 2009 + exercise and was ranked in the bottom third for Reading, Mathematics and Science, well below the International and OECD average in all the three areas, lower than Thailand.

Therefore, there is a great need to raise the interest and standards in Stem among students, educationists and policy makers in our country to ensure that we remain competitive and relevant in the world market in future.

The National Science Foundation, a leading authority in scientific research and funding in the United States, defines Stem in a broader definition which includes subjects in the fields of engineering, chemistry, computer and information technology science, geosciences, life sciences, mathematical sciences, physics and astronomy, and social sciences (which includes anthropology, economics, psychology and sociology), Stem Education and learning research.

As indicated in the education blueprint, the case for increased emphasis on Stem education would need several initiatives and steps to be taken across schools in the country.

It is imperative that we need to develop strong fundamentals in Stem starting from primary schools and to create and sustain interests in this discipline.

For a start, it would be a good idea to allow a lot more experiments and hands-on projects in Stem subjects.

Experiential learning 

If we want to promote a society with higher order thinking skills, the exam-oriented paper and format-based school exams need to be complemented with more practical and experiential learning.

Learning science subjects through a textbook is nothing compared to the trial and discovery methods of science experiments.

Through the process of experimenting, trials and discovery, students think, analyse and deduce before coming to a solution; all these thinking processes help to develop higher order thinking.

Students need to learn actively to seek creative solutions and applications and to be inquisitive to foster inventions.

The recent announcement by the Education Ministry to reintroduce practical exams for the SPM science subjects of Physics, Chemistry, Biology and Additional Science in 2015, is a move in the right direction.

In addition, the media radio could play a bigger role in promoting Stem.

There could be more focus on Stem and related topics for schoolchildren and even the community, if more films and documentaries on Stem were shown, and how it is important for national growth.

Simple videos could be made on how our everyday resources of food, water, air and energy require qualified engineers, agriculturists, scientists and more to ensure quality, production, convenience and sustainability for the future.

The influence of the internet is pervasive and with Wi-Fi and broadband services increasingly available in many homes and public places, more information can be made available and accessed online.

To promote interest in Stem, perhaps students could be guided towards self-directed learning after school.

Several educational websites support such learning. Massive Open Online Courses (Mooc) are widely available through the web with unlimited participation and many websites provide course materials such as videos, readings and problem-solving papers, while others have more interactive user forums that allow discussions and networking to build a community for students, teachers, professors, and tutors to seek support.

Among the more reliable websites for online courses for students are three more prominent ones such as www.edx.org, www.khanacademy.org and www.coursera.org. 

EdX offers free online classes and Mooc from the world’s best universities such as Harvard University, the Massachusetts Institute of Technology, the Australian National University and the University of California, Berkeley on subject contents including Computer Science, Mathematics, Sciences, Medicine and more than 200 courses that students could take online and be awarded a certificate.

The support from these reputable universities gives credibility to the courses and is ideal for students at home.

Khan Academy also provides free online materials and resources in mathematics, biology, chemistry, physics and even finance and history; mostly of secondary school level that are easily available to students, teachers and anyone interested in learning about simple educational topics which makes learning more fun.

Another website worth looking up is www.coursera.org which provides free online classes from more than 80 top universities (such as Stanford University, Yale University and Princeton University) and organisations around the world on topics covering a wide range of disciplines including science, engineering, medicine and social sciences.

A host of varied educational information is available on the web and most are on Stem subjects and topics that are taught in our schools.

Many of the topics in these websites also talk about scientific principles which are applied to everyday things like electrical appliances, transportation, automobiles, food cultivation and processing which are not only educational but also thought-provoking.

The colours and visuals used, the video and notes are all captivating; making learning so much more fun and engaging.

Even the teaching of simple Mathematics in schools is presented methodically and simply with good visuals and commentary.

The advantage of these online courses is that students canrepeat any part as often as they like until they get it right.

These online courses could perhaps be introduced as supplementary learning to students who can log on after school to learn more and cultivate their interests in Stem.

Perhaps parents and teachers alike can also guide students which will be more informative and educational than Facebook and Twitter.

Contributed by Prof Dr Ewe Hong Tat The Star/Asia News Network

The writer, an AAET Fellow, is the vice-president of the Internationalisation and Academic Development, Universiti Tunku Abdul Rahman (UTAR). This article is the first of a two-part series on Stem Education.

Universiti Tunku Abdul Rahman (UTAR)
	Dr. Ewe Hong Tat
	QUALIFICATION	BEng(Hons)(Mal), S.M. (MIT), PhD(MMU)
	POSITION	Vice President (Internationalisation and Academic Development) Professor, Faculty of Engineering and Science (FES)
	RESEARCH INTERESTS	Microwave Remote Sensing, Applied Electromagnetics, Satellite Image Processing, Sensing Network and Intelligent Systems
	CONTACT  ADDRESS	Universiti Tunku Abdul Rahman (Petaling Jaya Campus), No. 9, Jalan Bersatu 13/4, 46200 Petaling Jaya, Selangor, MALAYSIA.
	PHONE	+(60)-3-7958-2628 ext 7152
	FAX	+(60)-3-7956-1923
	E-MAIL	eweht@utar.edu.my
	HT Ewe received his First Class Honours Bachelor of Engineering degree in Electrical Engineering from University of Malaya, Malaysia in 1992, and S.M. (Master of Science) degree in EECS (Electrical Engineering and Computer Science) from Massachusetts Institute of Technology, U.S.A. in 1994. He obtained his PhD degree from Faculty of Engineering, Multimedia University, Malaysia in 1999. From September 1994 to April 1997, he was with the Electrical Engineering Department, University of Malaya (Malaysia). In May 1997, he joined Multimedia University (Malaysia) in Melaka Campus and was transferred to the Cyberjaya Campus in January 2000 and worked there until Aug 2008. In Sep 2008, he joined Universiti Tunku Abdul Rahman (UTAR) and is currently a Professor in the Faculty of Engineering and Science (FES). Experience Publication

 
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Is timing right for Bank Negara Malaysia interest rate increased now!?

Bank Negara says going forward, the over all growth momentum is expected to be sustained.

We are actually quite surprised that Bank Negara chose to make this measure this month!

AFTER keeping interest rates low for the past three years to support economic growth, Bank Negara has finally decided that it is the time to “normalise” interest rates.

In response to firm growth prospects and expecting inflationary pressure to continue, the benchmark overnight policy rate (OPR) was raised by 25 basis points (bps) to 3.25% on Thursday.

This is the first hike since May 2011 and the reasons, although not spelled out, were broadly hinted towards containing inflation and curbing rising household debt.

Most economists are unperturbed with the move, as the central bank has hinted of an imminent hike in OPR after the Monetary Policy Committee (MPC) meeting in May.

According to a Bloomberg survey, 15 out of 21 economists estimated a hike.

“Amid firm growth prospects and with inflation remaining above its long-run average, the MPC decided to adjust the degree of monetary accommodation,” Bank Negara says in a statement.

The economy grew by 6.2% year-on-year in the first quarter with private consumption up 7.1% and private investment expanding by 14.1%.

The prolonged period of low interest rates in Malaysia has been supportive on the domestic economy, hence the recent rate hike has sparked the question whether the time is right for a hike amid a recovery in the global economy.

“Despite higher costs of living, stable income growth and favourable labour-market conditions are expected to buoy private consumption growth,” said CIMB Research in a report.

It expects the country’s economic growth to increase to 5.5% this year and 5.2% in 2015.

Bank Negara remained positive on Malaysia’s growth outlook, riding on the back of recovery in exports, robust investment activity and anchored by private consumption.

Financial imbalances

“Going forward, the overall growth momentum is expected to be sustained.

“Exports will continue to benefit from the recovery in the advanced economies and from regional demand. Investment activity is projected to remain robust, led by the private sector,” says Bank Negara.

There are a lot of factors that could derail the recovery in the world’s economy, including a risk in China’s growth slowing and a slower recovery in Europe and the United States.

“We are actually quite surprised that Bank Negara chose to make this measure this month. The fact that the latest normalisation drive would push the ringgit higher and that puzzles us as export momentum may decelerate in the next few months due to waning competitiveness,” says M&A Securities.

Nonetheless, it believes the economy is capable of absorbing the adjustment.

Prior to the 2008-09 Global Financial Crisis, Malaysia’s OPR stood at 3.5%. The country’s OPR was subsequently cut down to as low as 2% to support the domestic economy during the height of the global downturn in early 2009 before being raised gradually to the present level.

Between November 2008 and February 2009, Bank Negara had cut the OPR by 175 basis points in response to the global economic crisis. “The rise in OPR will likely to improve Malaysia’s attractiveness amongst foreign investors, leading a stronger capital inflows, lower bond yields and appreciating ringgit,” says AllianceDBS Research chief economist Manokaran Mottain in a report.

He says that since the previous MPC meeting in May, the market has been influenced by this expectation.

Year-to-date, the ringgit had rallied to RM3.172 per US dollar on July 9, registering a 2.06% gain. However, at the close yesterday, the ringgit closed lower at RM3.21 against the greenback.

The central bank also highlights that the increase in the OPR is to ease the risk of financial imbalances, which may effect the economy’s growth prospect.

“At the new level of the OPR, the stance of the monetary policy remains supportive of the economy,” Bank Negara says.

The OPR is an overnight interest rate set by Bank Negara. It is the interest rate at which a bank lends to another bank.

A rate hike would have an impact on businesses and consumers, as changes in the OPR would be passed on through changes in the base lending rate (BLR).

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz was reported as saying that signs of financial imbalances would also factor into policy decisions, because a prolonged period of accommodation could encourage investors to misprice risk and misallocate resources.

“Higher interest rates should help to ensure a positive real rate of return for deposit savings and deter households from turning to riskier investments,” says CIMB Research.

The low interest rate environment has resulted in rising household debt level, which reached a record of 86.8% of gross domestic product at the end of last year.

“Although the increase in the OPR will likely have some impact on consumer spending and business activities, it will help to moderate the increase in prices,” says RHB Research Institute.

It expects inflation to moderate but to remain high, hovering above 3%.

Most economists are expecting OPR to remain unchanged at 3.25% for the rest of the year, although price pressures are likely to remain.

They say Bank Negara may resume its interest rate normalisation only next year.

“The price pressure is likely to remain, in view of further subsidy rationalisation (another round of fuel-price hike this year),” CIMB Research says.

Muted impact

“Another 25bps hike will crimp domestic demand,” Manokaran opines, adding that there are other measures that may be taken if household debt continues to grow at a worrying pace.

Malaysia is the first country in the South-East Asia to increase its benchmark rate on the back of improve confidence in exports growth and robust investment activity.

According to CIMB Research, Malaysia’s equity market has already priced in an interest rate hike following the May MPC meeting.

The research house says while the is negative for equities, the impact on the stock market should be muted as the increase is minimal.

“Rate hikes are negative for cyclical sectors such as property and auto, as well as consumer stocks due to lower disposable income,” it says.

In the property sector, rising interest rates would increase mortgage payment and reduce affordability.

However, CIMB opines that the impact of a gradual rise in interest rates will be mitigated as the key drivers of property demand are the overall economy and the stock market.

“But the overall impact should be muted as net gearing for corporate Malaysia is less than 10%,” it adds.

CIMB notes that the banking sector will benefit from the rate hike due to a positive re-pricing gap between lending and deposit rates.

“We estimate that a 25bps rise in OPR could enhance banks’ earnings by 1% to 2%.

“This would outweigh any slowdown in loan growth in an environment of higher interest rates, while asset quality is expected to be unaffected,” it says.

Contributed by Intan Farhana Zainul/The Star/Asia News Network

No justification for interest rate hike: Kenanga

Investment bank research head cites expectations of softer economic growth in H2

 
Adib Rawi Yahya/theSun

KUALA LUMPUR: Kenanga Investment Bank Bhd has taken the contrarian view and believes that an interest rate hike is unlikely to materialise today, saying that it would be unjustified given jittery economic fundamentals that would not be able to take such a hike.

Most analysts opine that Bank Negara is likely to raise the overnight policy rate (OPR) for the first time since May 2011 today, even though they tend to differ on the quantum of increase, between 25 basis points (bps) and 50 bps. The OPR currently stands at 3%.

Bank Negara is scheduled to hold its latest monetary policy committee (MPC) meeting this evening.

Kenanga Investment Bank deputy head of research Wan Suhaimie Saidie (pix) opined that this is not the right time to raise interest rate as economic growth is expected to trend lower in the second half compared with the first half of the year.

"Due to softer external demand and slow down in other parts of the world, I don't think Bank Negara will raise interest rate, unless they revise the gross domestic product (GDP) higher," he told a media briefing here yesterday.

Wan Suhaimie said as Malaysia is an open economy, the interest rate outlook will be externally dependent, whereby it has been observed that Bank Negara would shift towards tightening mode when the global manufacturing PMI breaches 54.0.

"However, it may take at least another three to six months before the index breaches 54.0," he said, adding that there is little reason for Bank Negara to raise the OPR for the rest of the year.

Wan Suhaimie believes with the implementation of the goods and services tax (GST) next year, the local economy may even slow down for at least two quarters, making the case for an interest hike far from compelling.

Kenanga expects GDP in the first half to be close to 6%, while second half is projected to average by 5.2%, with a full year growth rate of 5.5%.

Wan Suhaimie said instead of raising the interest rate, Bank Negara could take additional macroprudential measures to address imbalances in the financial system, such as reducing the loan-to-value ratio and debt-to-income ratio.

According to data compiled by Kenanga, Bank Negara is one of the most conservative central banks in the world, with only 10 rate adjustments made over the past 10 years.

M&A Securities concurred with Kenanga on the unlikelihood of a hike in OPR today albeit for a different reason.

"Policy decisions would need to get the cabinet endorsement first. Being a caring government that would like to avoid political backlash, we think that the government would prefer Bank Negara Malaysia (BNM) to defer that to the September MPC meeting," it said in an economic report yesterday.

It explained that on the back of rising cost of living and the upcoming stress of the goods and services tax, the last thing BNM and hence, the government would want to see is the adjustment be a burden the people.

"As 55% to 60% of Malaysian population, as in the Muslims would be observing the month of Ramadan of which their spending would increase, the government would risk its reputation if it proceeds with a policy hike. There is a small chance that the government would execute this in our opinion," said M&A analyst Rosnani Rasul.

It said impact to the ringgit would also be more conducive if policy rates get adjusted in September and that an adjustment of 25 bps would suffice.

With no hike in the OPR, volatility in the market will continue and is likely to see the ringgit fall back to 3.20 to 3.30, Wan Suhaimie opined.

The ringgit has been rising lately, surging to as high as 3.1860 early this month in anticipation of an interest rate hike.

Contributed by Lee Weng Khuen sunbiz@thesundaily.com 10 July 2014

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China - US candid dialogue aims at easing anxiety

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The sixth round of China-US Strategic and Economic Dialogue and the fifth China-US High-Level Consultation on People-to-People Exchange are being held in Beijing these two days. At a time when this bilateral relationship remains subtle and both have speculated about each other's strategic outlook, such high-level dialogue offers a chance for them to listen to their counterparts to ease anxieties brought by problems between them.

The strategists and public opinion in both countries have made thorough analyses of bilateral ties, yet they still fail to offer grounded conclusions. The fundamental reason is that in the history of international politics, such a big power relationship has never existed before.

The Chinese leadership envisioned the notion of a new type of great power relations, which the US leadership has accepted. The positive attitude of both has injected hope to the 21st century.

There will be more friction between the two. There will be twists and turns as China rises and the US tries to maintain its hegemony. Both can easily highlight a concrete problem, while high-level dialogue is needed to ease the speculation in both societies.

China's rise seems to be the most uncertain factor for the Sino-US relationship and the political pattern of the Asia-Pacific region in the 21st century. A comprehensive understanding of China's rise will help lay the foundation of this bilateral relationship.

The driving forces of China's rise come from the demand of the Chinese people. No one can stop this process. China and the US should build up an open system that can accommodate China's rise and soften the impact of China's rise on the politics of Asia-Pacific and other regions.

Many view the territorial disputes between China and its neighboring countries as its ambition for expansion. The US should be able to see that China has no intention to create new geopolitical patterns through these disputes, nor would it make use of the conflicts to expand its strategic space.

Even when China has no intention, its impact has been felt. Meanwhile, US support for Japan, the Philippines and Vietnam has caused some effect on China's neighbors. These two factors should not interact with each other to intensify mutual strategic mistrust.

The significance of the heart-to-heart dialogue is the same as that of establishing a crisis-management mechanism. It may take a while before the two realize great power relations, but China-US relations are fundamentally different from ties between the US and the former Soviet Union.

There will be continuing pessimistic comments from the public in both countries. It is vital that both governments remain determined. It will be a significant political achievement if the two develop a relationship that is different from the one under the Yalta system during the last century.

Source:Global Times Published: 2014-7-9

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Watch Japan's surrender Video; Beware of Japan's evil designs!

China publishes video of Japan´s surrender for first time

Beware of Japan's evil designs

The volatile political situation in Europe (and partly in West Asia) led to the Great War 100 years ago, with the Austro-Hungarian Empire and Germany (or the Central Forces) on one side and Britain, France and Russia (or the Allies) on the other. What started essentially as a "European war" soon turned into a world war with the Ottoman Empire and Bulgaria joining the Central Forces and Italy, the United States and Japan joining the Allies.

The international situation today is radically different from what it was 100 years ago. Regional conflicts do exist, but there is no conflict between two major powers or blocs that seems unlikely to be resolved through talks. The main contradictions and conflicts today are the ones between the sole superpower, the US, and emerging powers like China and Russia. Despite the comparative decline in its power, the US is not willing to yield its self-perceived sphere of influence to China or Russia. But despite being uncomfortable with the idea of seeing a powerful China, the US has agreed to establish a "new type of major-power relationship" with China.

China is surrounded by complicated maritime disputes with Japan, Vietnam and the Philippines, but these countries seem to be acting on the instigation of the US, and are not in a position to engage in a large-scale military conflict or war with China. In fact, these countries' attitude toward China depends on the direction Sino-US relations take.

About 120 years ago, Japan launched an aggressive war against China, which ended in the collapse of the Chinese navy and the signing of the unequal Treaty of Shimonoseki, which forced the Qing Dynasty (1644-1911) rulers to cede some of China's territories and pay reparations to Japan. The main reason China suffered such a fiasco was that, as a weakening feudal country, it was not prepared to fight an asymmetrical war with an emerging capitalist power.

China, along with the rest of the world, has undergone considerable changes since then. Today China is the world's second-largest economy and one of the five permanent members of the United Nations Security Council. Despite that - and despite possessing nuclear weapons - China is still a peace-loving nation striving to build a harmonious world.

After being defeated in World War II, Japan has had to follow a pacifist Constitution, written with the help of Allies, mainly the US. And coupled with the economic downturn since the 1980s and the international community's stipulation that allows it to only develop its Self-Defense Forces - as opposed to a full-fledged military - Japan today is in a position that is totally different from the late 19th century.

Yet Japan has taken a dangerous step toward militarization by reinterpreting Article 9 of the Constitution. Since the move allows Japan to dispatch troops overseas to take part in "conflicts", it should be seen as a warning not only to China but also to the international community as a whole.

With the peaceful rise of China and escalation of Sino-Japanese disputes, Japan has begun shifting its strategic focus southwestward. A series of military moves by Tokyo in recent years, such as the deployment of missiles on its southernmost island, Miyako-jima, which is closest to China's Diaoyu Islands and the stationing of the most advanced missiles on the southern tip of Kyushu Island, indicate that Japan's military policy is targeted mainly at China.

Japan also plans to build military bases on Miyako-jima, Amami-shima and Ishigaki-jima, its three southern islands nearest to the Diaoyu Islands, and deploy outpost forces there. During a recent visit to Miyako-jima, a senior Japanese defense official told local officials that "the local defense vacuum" should be filled in.

Japan's military maneuvers in Miyako-jima, some 2,000 kilometers from Tokyo but only about 200 km from China's Taiwan, are obviously aimed at strengthening its military might to counter China, especially over the Sino-Japanese maritime disputes. This is how a recent Russian TV program summed up the situation.

Japan has also set up a joint land-, air-and sea-based monitoring system over various straits. For example, every time a Chinese ship crosses the Tsugaru Strait, it will be under surveillance of Japanese warships, helicopters and P-3C aircraft.

While deploying its armed forces in its southwestern region, Japan has unashamedly presented a different face to the international community. For example, it has repeatedly complained that "China's warplanes dangerously approach Japan's (planes) " and that "China's warships lock their fire control radar at Japan's (ships) ", to seek sympathy of the international community. By beefing up forces using the "China threat" theory, Japan has exposed its ulterior motive, that is, it is preparing for a possible war with China, even though such a war is not likely to break out.

Given the complicated international security situation, China should remain vigilant against Japan's military designs and continue its efforts to achieve peaceful sustainable development and build a harmonious world in a bid to play a bigger role on the global stage.

By Li Daguang (China Daily)/Asia News Network
The author is a professor at the National Defense University, People's Liberation Army.

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China and Germany will strengthen exchanges in the financial sector and upgrade longstanding cooperation in manufacturing with a slew of deals signed on Monday.

Beijing will grant Berlin an 80 billion yuan ($12.9 billion) quota under the Renminbi Qualified Foreign Institutional Investors plan to accelerate the internationalization of the Chinese currency, reinforcing Frankfurt's status as a yuan clearing center in Europe, in addition to London and Paris.

A high-level financial dialogue will also be set up to boost financial cooperation, Premier Li Keqiang said at a news conference with visiting German Chancellor Angela Merkel.

President Xi Jinping told Merkel during their meeting, "The series of agreements you have signed during your visit to China will bring new impetus to bilateral ties."

Xi suggests the two countries take bigger steps in their cooperation, with manufacturing industry as the core.

Merkel said Germany would improve its investment environment and attract more Chinese investors.

She is accompanied by a high-profile business delegation including executives from Siemens, Volkswagen, Airbus, Luft-hansa and Deutsche Bank.

Apart from the financial deal, the countries also signed deals on automobiles, aviation and telecommunications.

China approved London joining the RQFII plan in October, granting investors the right to use the yuan to buy up to 80 billion yuan worth of mainland stocks, bonds and money market instruments.

It later granted Paris the same quota in March.

Luxembourg is also lobbying Beijing for the same treatment after it signed an agreement with China's central bank for yuan clearing arrangements on June 28.

Li Jianjun, a financial analyst at Bank of China's International Finance Research Institute, said the competition for offshore yuan centers among major European cities is a healthy feature of cooperation.

"The renminbi is still at the initial stage of internationalization. We are expanding the offshore yuan pie and setting up a global network with overseas financial markets. Allowing qualified foreign institutional investors to use the yuan will benefit China and other countries," Li said.

Chinese leaders are likely to take Frankfurt as a core center for renminbi clearing services in continental Europe, while establishing secondary yuan clearing sites in Paris and Luxembourg, Li said.

"We cannot cover a wide range and a large amount of renminbi-related businesses with only one center," Li said. "With Frankfurt as a leading offshore yuan-trading city, we will create a nice layout for renminbi internationalization in Europe."

In the first five months of 2014, Germany's direct investment in China reached $810 million, or 30 percent of the $2.69 billion investment in China by all members of the EU, according to the Ministry of Commerce.

In 2013, two-way trade between the countries reached $161 billion, taking up almost one-third of total China-EU trade.

China is Germany's largest trading partner in the Asia-Pacific region.

Merkel's visit, her seventh trip to China, came only four months after the last meeting between leaders of the two nations. President Xi Jinping visited Germany in March.

Before flying to Beijing, Merkel stopped at Chengdu, capital of Sichuan province.

Merkel said she felt the dynamics and development of southwestern China in Chengdu, where urbanization is urgently needed to catch up with coastal cities.

"China's vigor stays not only on the coastline but also in the central and west area," she said.

Sebastian Heilmann, president of the Mercator Institute for China Studies, said in a recent interview with Deutsche Welle: "Germany provides China with products it needs for industrialization, for example ,machines, specialty chemicals and electronic goods. On the other hand, Chinese consumer goods with very reasonable prices are in high demand in Germany."

Ren Baiming, a researcher at the Chinese Academy of International Trade and Economic Cooperation at the Ministry of Commerce, said Germany, as well as the European Union at large, need a driving force from the outside for growth, and the fast-growing Chinese market meets that need.

Wu Jiao contributed to this story. - By ZHAO YINAN and JIANG XUEQING (China Daily)
/Asia News Network

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Today July 7, remembering Japanese atrocities: China marks 77th anniversary of anti-Japan war 1937

http://www.cngongji.cn/english/

A grand gathering is held to mark the 77th anniversary of the beginning of the Chinese People's War of Resistance Against Japanese Aggressions at the Museum of the Chinese People's War of Resistance Against Japanese Aggressions in Beijing, capital of China, July 7, 2014. (Xinhua/Pang Xinglei)

China marks 77th anniversary of start of anti-Japan war

July 7 incident: String of events leading up to 1937 fight

Next Monday marks the 77th anniversary of the July 7 incident, or the "Lugou Bridge Incident&qu...A grand gathering is held to mark the 77th anniversary of beginning of Chinese People's War of Resistance Against Japanese Aggressions in Beijing, July 7, 2014.

July 7 is an anniversary that should be remembered by both Chinese and Japanese.

Seventy-seven years ago, at Lugou Bridge, known as Marco Polo Bridge to the Western people, Japanese troops attacked Chinese defenders in the nearby fortress town of Wanping, marking the beginning of the eight-year Anti-Japanese War.

Civilians were killed by gunfire, bombs, gas and biological weapons; women were raped; forced laborers were tortured to death.

It was a devastating tragedy not only for China, but also for Japanese people.

Ignoring objections from peace lovers at home, warmongering fascists initiated the war, leaving Japanese soldiers to shed their blood away from their motherland and women and children deserted back home. Those people who provoked the war marked their own country with humiliation in history.

What's more, 77 years later, the Japanese government still fails to introspect on what it did in the past and cherish the current peace.

Prime Minister Shinzo Abe's cabinet endorsed a reinterpretation of its pacifist Constitution on Tuesday for the right to collective self-defense, the latest move in challenging the international bottom line. A Japanese person even set himself alight in protest.

From the slapstick of the "nationalization" of China's Diaoyu Islands by the former Japanese government, to Abe's ridiculous visit to the Yasukuni Shrine and to the pacifist Constitution reinterpretation, right-wingers in Japan have initiated a series of provocations.

War is hell, but there are always devils who try to spark war and trample peace under foot.

Born in an island country with limited natural resources, Japanese people are respected for their diligence and energy-saving awareness. However, there are always a small number of people who attempt to loot the resources of other countries by way of invasion, bringing catastrophe to neighbors including the Korean Peninsula, India, Vietnam, the Philippines and China.

Decades have passed. With the common efforts of government leaders and civilians who cherish peace, China and Japan have greatly strengthened economic ties and cultural exchanges by putting hatred behind them. But some in Japan are now always trying to disturb the international postwar order by ignoring history, something no peace lover in either country wants to see.

China has a deep-rooted culture of seeking peace and expects the Abe government to stop its provocations. Otherwise, they will have to take their medicine.

Japan frays nerves of neighboring countries



For the Chinese people, July 7, 1937 was a day when one of their worst nightmares began, as it marked the beginning of the eight-year-long China's War of Resistance Against Japanese Aggression.

During the 1930s and 1940s, the Japanese empire, where many reckless militarist policies were born, invaded China and some Southeast Asian countries, causing huge pain to Asian people.

Seventy-seven years later, the psychological wounds of the Chinese people have not been fully healed, as Japanese rightists have repeatedly denied its atrocities of the aggression and taken a provocative approach in addressing ties with its neighboring countries.

Even worse, these wounds are once again touched recently as the cabinet of Prime Minister Shinzo Abe on July 1 approved a resolution that would allow the country to exercise the so-called "collective self-defense right" by reinterpreting its pacifist Constitution, despite strong protests from home and abroad.

According to the war-renouncing Article 9 of the country's Constitution, Japan has been banned to exercise the right to collective self-defense after World War II due to its heinous war crimes to Asian countries.

However, the resolution would enable Tokyo to fight for "countries with close ties" with Japan even though Japan itself is not under attack, which signals that the Japanese government has shifted its previous restrictive postwar security policy to a more proactive one.

It is by no means the first time that the Abe's administration irritates its neighbors and stirs up regional tensions by adopting provocative policies.

In recent years, Tokyo has tried hard to strengthen its military buildup and seek military expansion amid festering historical and territorial disputes with neighboring countries, including the attempt to revise its national defense policy in late December last year.

Right-wing Japanese politicians have repeatedly watered down Japan's history of aggression and visited the notorious Yasukuni Shrine that honors the country's war criminals, which has further alarmed regional countries including China and South Korea.

The Japanese government has played up hard the so-called China-threat theory, and dressed up itself as a victim of Beijing's peaceful development, paving the way for the country to develop its self-defense forces.

However, what Abe has done is equivalent to playing with fire, as he is leading his country down a dangerous path.

As a relatively small island country with scarce natural resources, it is really unwise for Japan to engage in big-power geopolitics and aggressions against its neighbors.

As the provoker and defeated country of the World War II, Japan should learn from the lessons of the wars and give up its attempt for better warships and missiles as its recklessness would affect Asia as a whole.

Beijing always tries to develop a strategic partnership of mutual benefits with its neighboring country, but a dangerous Tokyo has wasted many precious chances to build sound bilateral ties amid its endless provocations.

As one of the important players in Asia and on world arena, it is high time for Japan to face up to its aggression in history and pursue the path of peaceful development instead of angering the region with rounds and rounds of irresponsible words and provocative policies.

Sources: China Daily/Asia News Network

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S. Korea - China ties at best in history

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Xi's visit a new dawn for China-ROK ties

Chinese President Xi Jinping's visit to the Republic of Korea (ROK) could be the beginning of a new era in China-ROK relations.

Agreements reached during his visit include deals for the launch of RMB clearance in Seoul, political and security cooperation, and expanded people-to-people exchanges.

The visit has plotted a clear course for the future of relations, according to Wang Fan of the China Foreign Affairs University.

ECONOMIC COOPERATION

"Many issues that had been idling were discussed, with solid results," said Wang.

On Thursday, China and ROK agreed on direct trading between the RMB and won, the ROK currency, and signed a deal on renminbi (RMB) clearing in Seoul. Eliminating the need to exchange through U.S. dollars will save on transaction fees and hedge against foreign exchange volatility.

Beijing and Seoul also agreed to try to conclude FTA negotiations before the end of this year.

"The positive attitude to a free trade agreement will set a good example for other countries in East Asia," said Wang. Once established, the agreement will contribute to the progress of a China-Japan-ROK FTA and economic integration.

While the achievements in currency and trade are a natural result of increased economic exchange, Wang believes they were facilitated by Xi's visit.

China is already the ROK's largest trading partner and largest market for Korean exports, while ROK is China's third most important trading partner and was the fifth biggest source of foreign investment in 2013. Two-way trade totaled 274 billion U.S. dollars last year, and the leaders have promised a rise to 300 billion U.S. dollars by 2015.

TRUST AND REGIONAL STABILITY

Thursday's joint statement declared denuclearization and peace and stability on the Korean Peninsula to be in the common interests of all countries involved in the six-party talks.

The six-party talks, involving China, the Democratic People's Republic of Korea (DPRK), Japan, the ROK, Russia, and the U.S. have been suspended since late 2008.

Xi told Park that China and ROK should become partners that share common development, commit to regional peace and Asia's revitalization, and boost world prosperity. Beijing and Seoul share an unavoidable responsibility to maintain regional tranquility.

PEOPLE-TO-PEOPLE EXCHANGE

Both sides will celebrate the Year of Chinese Tourism in ROK in 2015 and the Year of South Korean Tourism in China in 2016 and elevate personnel exchanges to 10 million in 2016.

The two sides reached a consensus on waiving visas for service passport holders and decided to gradually expand visa-free coverage.

"People-to-people exchanges are already in a very good phase," said Wang. "These measures ensure the exchange will be continued."

Chinese and South Koreans made a record 8.22 million trips to each other's countries last year. More than 60,000 Chinese students are studying in ROK, which has the same number of students in China.

The two countries also pledged cooperation in such areas as public diplomacy, culture, film production, panda research, protection of cultural heritage and hosting sports events.

"These agreements create a favorable atmosphere for deepening mutual understanding between the two nations," said Wang. - Xinhua

Xi's South Korea trip hailed for boosting ties

Commentators laud prospects of an enhanced bilateral relationship.

President Xi Jinping's just-concluded two-day visit to South Korea has boosted ties and contributed to regional peace and stability, analysts say.

Kim Han-kwon, director of the Center for China Studies at the Asian Institute for Policy Studies in South Korea, said Xi's visit has deepened the two countries' cooperation in such fields as security, economics and culture.

"It is a boost not only to the political trust between leaders of the two countries but also to the friendship between the two peoples," he said.

The director called on both nations to maximize their common core interests, put aside differences and seek common ground.

Cha Jae-bok, a researcher with the Northeast Asian History Foundation of South Korea, said Xi's visit is of great significance to relations, and especially economic ties.

During the visit, the two sides signed a deal on establishing arrangements for the Chinese yuan's clearance in Seoul and agreed to push for the completion of negotiations on a free-trade agreement by year-end.

Those decisions will boost South Korea's financial markets and promote the process of economic integration among Asian countries, Cha said.

Shin Seong-ho, associate dean of the Office of International Affairs at Seoul National University, said Xi's speech at his university gave a broad and in-depth blueprint of the development of Asia and the whole world, rather than solely focusing on South Korea-China ties.

Kyung Hee University professor Ha Young-ae said the visit has bolstered South Korean public confidence in ties.

Japanese political commentator Jiro Honzawa said Xi's visit could serve to contain Japan's right wing. The deepening of ties could help safeguard peace and stability on the Korean Peninsula and all of East Asia, he said.

His views were shared by Qian Feng, vice-director of Thailand's Chinese-language newspaper Asian Daily.

"The two heads of state reached consensus on denuclearization of the Korean Peninsula, which laid a foundation for regional stability," he said.

During his South Korea visit on Thursday and Friday, Xi met with a number of South Korean leaders and politicians, and the two sides confirmed over 90 cooperation programs covering 23 fields.

Source: China Daily/Asia News Network