Tag Archives: china

China and Russia quit US dollar

Premier Wen Jiabao shakes hands with his Russian counterpart Vladimir Putin on a visit to St. Petersburg on Tuesday.ALEXEY DRUZHININ / AFP

St. Petersburg, Russia – China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.  “About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.  The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said. “That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,” he said.  Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.

The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.

Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China’s Tianwan nuclear power plant, the most advanced nuclear power complex in China.   Putin has called for boosting sales of natural resources – Russia’s main export – to China, but price has proven to be a sticking point.

Russian Deputy Prime Minister Igor Sechin, who holds sway over Russia’s energy sector, said following a meeting with Chinese representatives that Moscow and Beijing are unlikely to agree on the price of Russian gas supplies to China before the middle of next year.  Russia is looking for China to pay prices similar to those Russian gas giant Gazprom charges its European customers, but Beijing wants a discount. The two sides were about $100 per 1,000 cubic meters apart, according to Chinese officials last week.

Wen’s trip follows Russian President Dmitry Medvedev’s three-day visit to China in September, during which he and President Hu Jintao launched a cross-border pipeline linking the world’s biggest energy producer with the largest energy consumer.  Wen said at the press conference that the partnership between Beijing and Moscow has “reached an unprecedented level” and pledged the two countries will “never become each other’s enemy”.

Over the past year, “our strategic cooperative partnership endured strenuous tests and reached an unprecedented level,” Wen said, adding the two nations are now more confident and determined to defend their mutual interests.  “China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power,” he said.

“The modernization of China will not affect other countries’ interests, while a solid and strong Sino-Russian relationship is in line with the fundamental interests of both countries.”  Wen said Beijing is willing to boost cooperation with Moscow in Northeast Asia, Central Asia and the Asia-Pacific region, as well as in major international organizations and on mechanisms in pursuit of a “fair and reasonable new order” in international politics and the economy.

Sun Zhuangzhi, a senior researcher in Central Asian studies at the Chinese Academy of Social Sciences, said the new mode of trade settlement between China and Russia follows a global trend after the financial crisis exposed the faults of a dollar-dominated world financial system.  Pang Zhongying, who specializes in international politics at Renmin University of China, said the proposal is not challenging the dollar, but aimed at avoiding the risks the dollar represents.

Wen arrived in the northern Russian city on Monday evening for a regular meeting between Chinese and Russian heads of government.  He left St. Petersburg for Moscow late on Tuesday and is set to meet with Russian President Dmitry Medvedev on Wednesday.

Agencies and Zhou Wa contributed to this story.


U.S. dollar printing is huge risk – China central bank adviser

BEIJING | Wed Nov 3, 2010 10:33pm EDT Reuters

U.S. dollar printing is huge risk –   China central bank adviser

Nov 4 (Reuters) – Unbridled printing of dollars is the biggest risk to the global economy, an adviser to the Chinese central bank said in comments published on Thursday, a day after the Federal Reserve unveiled a new round of monetary easing.

China must set up a firewall via currency policy and capital controls to cushion itself from external shocks, Xia Bin said in a commentary piece in the Financial News, a Chinese-language newspaper managed by the central bank.

“As long as the world exercises no restraint in issuing global currencies such as the dollar — and this is not easy — then the occurrence of another crisis is inevitable, as quite a few wise Westerners lament,” he said.

As an academic adviser on the central bank’s monetary policy committee, Xia does not have decision-making power but does provide input to the policy-making process.

The Federal Reserve launched a fresh effort on Wednesday to support the struggling U.S. economy, committing to buy $600 billion in government bonds despite concerns the programme could do more harm than good.

Xia said that it will take a long time for the global monetary system to improve and that China must be ready to hold the line on its currency policy and capital controls.

“We must keep a clear mind. We must not lead the world in financial regulation, nor simply follow the deeds of mature economies. We must think ‘what is good for us’,” he said.

China already has a regime of tight capital controls in place, limiting its vulnerability to the wave of liquidity that analysts say U.S. easing could push towards emerging markets.

By closely managing the yuan’s exchange rate, Beijing has also been able to blunt appreciation pressure in the face of a weakening dollar.

To better coordinate its policies, China should establish a team in charge of broad economic and financial supervision above its current network of financial regulators, Xia said. (Reporting by Langi Chiang and Simon Rabinovitch; Editing by Ken Wills)

Russian Made Chinese warplanes refuel in Iran and Pakistan, enroute to Turkey.

October 05, 2010 (Hamsayeh.net) – Last Saturday, Iran allowed Chinese warplanes use its airspace to join a military drill with neighboring Turkey before an upcoming visit by Chinese Prime Minister Wen Jiabao to Ankara. The two countries reportedly conducted a military drill in central Anatolian region, last month.

Powerful Turkey is a NATO member and the historic country is strategically located between Asia and Europe. Until last year, Turkish military allowed US, NATO and Israel the opportunity to conduct drills codenamed Anatolian Eagle over Turkish air space.. The joint Turkish – Chinese military exercise would include Turkish US supplied F-16, and Chinese Su-27 and Mig-29 taking part in, ‘mock dogfights during the drills.’ Press TV reported.

Ankara and Beijing have also jointly manufactured missiles and other weapons since 1990.  The government of President Abdullah Gul which enjoys massive support among Turkish population and within the country’s powerful military brass, has increased cooperation with Russia, China, Brazil, Iran and other leading countries outside US’ ever-diminishing sphere of influence. Turkish cooperation with Russia, Iran and Azerbaijan in the field of energy is set to expand substantially when it begins to transit oil and gas from the region though its territory to European consumers in the near future.

Ankara played a pivotal role in establishing peace between the Palestinians and Israelis until Tel Aviv with US backings started to take advantage of Turkey’s patience and goodwill. Following a brutal Israel’s attack on Turkish humanitarian flotilla destined for Gaza, last May, in which nine innocent Turkish civilians were killed inside international waters, Ankara suspended strategic relations with Tel Aviv. Despite plenty of evidence that prove Israeli crime against Turkish flotilla, Washington continues to blindly support Israel and it even ignored the killing of Furkan Dogan, a 19-year-old student who held dual Turkish-American citizenship.

Ever since that incident, the US government has been busy  whitewashing Israel’s atrocities against the international community notably the  killings of innocent Turkish activists aboard Mavi Marmara. The Obama administration has repeatedly turned down Ankara’s demands from US to adhere to international norms by bringing Israeli regime pay for its crimes against humanity.


At the end of 20th century and at the beginning of 2000s, the Gulf War, Bosnia-Herzegovina, Kosovo and Iraq Wars have shown that the Air Forces will play the major role in deterrence and in the determination of the outcomes of the future wars.

Starting from the beginning of the 1980s, with the consciousness of expected duties and with the philosophy of “No matter how modern the weapons are, it is men that use them.”, the Türkish Air Force gave importance to infrastructure, modernization of weapons and training. With the addition of experiences gained from the trainings and maneuvers attended in Internal Security Operation, Bosnia-Herzegovina and Kosovo Wars, the Turkish Air Force, as one of the major Air Forces in its region and in Europe, has come to a level to train Air Forces of other countries. The best example for this is the Anatolian Eagle (AE) trainings which have been performed starting from first Anatolian Eagle (AE) – 01 training carried out at 18-29 June 2001 until present.

As the geopolitical position of Türkiye is evaluated: being close to the energy sources in the world, the political instability and the over-arming in the surrounding countries force the Turkish Air Force to own weapons of the highest technology and to maintain the highest level of training.

The AE trainings are similar to the Red Flag (RF) trainings which have been performed in the Nellis Air Base of USA. The first RF training experience started in 1983 with a crew of 6 people consisting of 4 pilots and 2 WSOs going to this base as observers and flying 2 sorties in USAF aircrafts. The first participation to the RF training is realized at 09-23 August 1997 with the deployment of 6 x F-16s and 57 personnel to Nellis Air Base. Later on with the participation of Turkish and American squadrons in İncirlik, firstly at 02-15 May 1998 and secondly at 21 September – 02 October 1998, the RF-like Anatolian Flag (AF) trainings were performed. At 23 January – 05 February 2000 the second participation to the RF training was realized and in June 2000, and with the directive of Turkish Air Force Command, the preparations for the realization of the AE-01 training were started by TAF Operations Command.

The summary of activities from June 2000 until the beginning of the training are:

  • Presentation of AF Project to the Command (30 June 2000)
  • Publication of AF implementation directive (25 July 2000)
  • Implementation plan for AFP and AF-01 training (22 November 2000)
  • Nellis site survey (10-16 February 2001)
  • Presentation of the briefing to the Turkish Chief of Staff (29 March 2001)
  • NSC briefing (30 March 2001)
  • Publication of NSC resolution number 468 on “Anatolian Eagle (AE) – Turkish Armed Forces Joint Training Center” of date 30 March 2001
  • Publication of EXOPORD (14 May 2001)
  • Completion of Operation Center, White-Red-Blue Headquarters, ACMI and similar infrastructure (12 June 2001)

AE-01 training, under the responsibility of 1st Tactical Air Force Command, realized at 18-29 June 2001 with the participation of Turkish, American and Israel Air Forces and hosted by 3rd Main Jet Base Command. The participation and date information for the following years are shown below:

The summary of activities from June 2000 until the beginning of the training are:
Training Date Participants
AE-01 18-29 June 2001 Türkiye, Israel, USA.
AE-02/1 22 April 3 May 2002 Türkiye, USA.
AE-02/3 14-25 October 2002 Türkiye, UEA, USA.
AE-03/3 03-14 November 2003 Türkiye, Germany, Israel, USA.
AE-04/1 05-16 April 2004 National
AE-04/2 07-18 June 2004 Türkiye, Israel, Jordan, USA.
AE-04/3 27 Sept-08 Oct 2004 Türkiye, Germany, Israel, Italy, Netherlands, Pakistan, USA.
AE-05/1 04-15 April 2005 National
AE-05/3 12-23 September 2005 Türkiye, Italy, France, Netherlands.
AE-05/4 14-25 November 2005 Türkiye, Belgium, Israel, USA.
AE-06/1 24 April-05 May 2006 National
AE-06/2 12-22 June 2006 Türkiye, France, NATO, Pakistan, USA.
AE-06/3 04-15 September 2006 Türkiye, NATO
AE-06/4 06-18 November 2006 Türkiye, NATO, USA.
AE-07/2 11 – 22 Haziran 2007 Türkiye, England, Jordan, NATO, Pakistan, USA.
AE-07/3 03 – 14 September 2007 National.
AE-07/4 05 – 16 November 2007 National.
AE-08/1 05 – 16 May 2008 National.
AE-08/2 09 – 20 June 2008 Türkiye, BAE, Jordan, NATO, USA.
AE-08/3 08 – 19 September 2008 Türkiye, Israel, Italy, USA.
AE-08/4 03 – 14 November 2008 Türkiye, Pakistan.
AE-09/1 27 April – 8 May 2009 National.
AE-09/2 08 – 19 June 2009 Türkiye, BAE, England, NATO, Jordan, USA.
AE-09/3 12 – 23 October 2009 Türkiye, NATO.
AE-09/4 02 – 13 November 2009 Türkiye, Pakistan
The planned AE trainings for the year 2010 are:
AE-10/1 19-30 April 2010
AE-10/2 07-18 June 2010
AE-10/3 11 – 22 October 2010

AE trainings are realized in close-to-real war environment, with a scenario from easy to hard, with the advantage of high technology and by monitoring the quality of the trainings on the computer environment. The aim is to test the knowledge and abilities of all participants, to raise the level of the training by detecting the hitches and deficiencies.

The fundamental of the scenario consists of the attack of BLUE team with Combined Air Operation (COMAO) on the tactical and strategic targets in RED lands which are defended by fighter aircrafts and SAM systems.

The White Headquarters, sort of the brain of AE in which the AE crew works, is the center building in which the trainings are planned and the statistical studies are carried out.

Command Control Center is the headquarters in which the information (location, position and flight information) of aircrafts, which are transferred through ACMI (Air Combat Maneuvering Instrumentation), can be observed in real-time. The tracks detected by AWACS and land radars and real-time searching, locking and shooting images of SAM and anti-aircraft systems can be observed. Also the MASE (Multi Aegis Site Emulator) Operation Center, Anatolian Eagle sorties and daily base flights are controlled and commanded here. The main briefing hall, which is located in the same building with CCC, has a capacity of 450 people and the last briefings before Eagle Sorties and the debriefings after flights are carried out here.

Located in the Red Building, Red Forces plan their tasks and have their briefings here. No one except the Red Forces can enter this building. Also in the same way, the Red Forces personnel cannot enter other building.

The national and foreign squadrons participating in Anatolian Eagle trainings are stationed in Blue-1, Blue-2 and Blue-3 buildings. Each building has briefing rooms for squadrons to have briefings and brain-storming.

With a capacity of 260 rooms and 520 beds, the construction of AE dormitory is completed before 2002 AE trainings and the settlement problem was partially solved. In the following years, in the same region with the dormitory, two dormitories, a restaurant, officer and NCO clubs and other activity centers will be built.

The AE Airspace is expended towards south and reached a dimension of 200 nm. east-west and 150 nm. north-south. The Salt Area, the main operation airspace, is being used from ground level up to 50,000 feet.

During the AE trainings the AWACS gives C2 support to Blue forces and the land radar located on the base gives GCI support to Red forces and the Turkish tanker aircrafts give AAR support to both forces…continue to source.

China to build $2bn railway for Iran

By Malcolm Moore in Shanghai
Published: 6:15AM BST 07 Sep 2010

Tibet train - China to build $2bn railway for Iran

The Chinese have already built a railway line serving Tibet, above, and now plan a modern variant on the old ‘Silk Road’ through Central Asia Photo: AP

China’s railways minister, Liu Zhijun, is expected to visit Tehran this week to seal the deal, according to his Iranian counterpart, Hamid Behbahani.

“The final document of the contract has already been signed with a Chinese company and the Chinese minister will visit Iran on September 12 to ink the agreement,” said Mr Behbahani.

The new line will run from Tehran to the town of Khosravi on the border with Iraq, around 360 miles as the crow flies, passing through Arak, Hamedan and Kermanshah.

Eventually, the Iranian government said, the route could link Iran with Iraq and even Syria as part of a Middle-Eastern corridor. That could also benefit the 5,000 Iranians who make pilgrimages each day to the holy cities of Najaf and Karbala in Iraq.

Nicklas Swanstrom, the executive director of the Central Asia-Caucasus Institute at Johns Hopkins University, said the contract to build the line was the first step for China to build an entire rail infrastructure for central Asia.

“It makes sense that if you build railways in Iran, you then get deals to stretch the lines into central Asia,” he said, referring to a “very concrete plan” to run a railway from Iran through the landlocked countries of Tajikistan, Kyrgyzstan, and eventually to Kashgar in China, in a modern “silk route”.

That line would give the central Asian states vital access to Iran’s port of Chahbahar on the shores of the Persian Gulf, and could also eventually give China a vital overland freight route to Europe.

“For China, it could cut the cost of transporting goods to Europe by 5pc or 6pc,” said Professor Swanstrom.

“It also makes political sense, because while technically the US, Europe or Russia could block China’s sea routes, it would also have a land route. And by tying your neighbour’s infrastructure to you, it brings them closer,” he added. “It decreases Russia’s influence in the region, and definitely decreases the influence of the US and Europe.”

Mahmoud Ahmadinejad, the Iranian president, raised the idea of the new railway earlier this year at a summit in Tehran.

Transport ministers from Tajikistan, Afghanistan and Iran are expected to gather in Dushanbe, the Tajik capital formerly known as Stalinabad, next month to firm up a deal for a 1,225-mile route. The Asian Development Bank is funding a feasibility study for the project.

Iran is determined to forge tighter links with its neighbours, and rebuild itself as a trade hub, in order to build a regional alliance that would support it against Nato countries.

At the beginning of last month, Mr Ahmadinejad said Tajikistan, Afghanistan and Iran should join forces to become “an obstacle” to Western influence in the region.

Iran has pointedly not signed up to European Union plans for a trade corridor through Europe, the Caucasus and Asia, and has instead busied itself with bilateral agreements with its neighbours. Reza Rahimi, the Iranian vice-president, has promised to cut freight times between Europe and China from two months by sea to 11 days by land.

In addition, the current sanctions on Iran allow China, which relies on the Persian state for 15pc of its energy needs, to drive a hard bargain on the construction contract for the line.

China is rapidly expanding its own high-speed rail network and has unveiled plans for lines that will connect Beijing with London, both through Russia and through central Asia.

China Railway Group, the largest railway construction company, has also recently revealed it has had “early stage contact” with South African companies about undertaking rail projects in South Africa…continue to original article.

Is US ready to recognize China as world power?

The U.S. government has repeatedly made it clear that it would welcome China’s entrance into the world arena as a power. However, a series of issues since the beginning of this year, particularly Washington’s stance on the U.S.-South Korean joint military exercises and the South China Sea issue, have made the world think: Is the United States ready to recognize China as a power on the world stage?

It is easier said than done for the United States to adapt itself to China’s development. Lip service is far from enough to boost the development of Sino-U.S. relations. If Washington cannot find a way to recognize and accept China’s peaceful rise onto the world stage, bilateral ties will be like a roller coaster full of ups and downs. However, no one would like to see the negative effects rocky relations would bring to China, the United States and possibly to the world as a whole.

U.S. Secretary of State Hillary Clinton has urged China to play a greater role in solving the world’s economic, environmental and political problems. She said global issues could not be solved by the United States or China alone, but without participation of the two countries, no problems would likely be solved. Washington has realized that the United States’ global interest can be maintained only through changing the way it deals with China….go to original article.

China Becomes Worlds Second Biggest Economy.

Published: Friday, 30 Jul 2010 | 6:03 AM ET
China has overtaken Japan to become the world’s second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.  Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.

Altrendo Images | Getty Images

China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China’s chief currency regulator, mentioned the milestone in passing in remarks published on Friday. “China, in fact, is now already the world’s second-largest economy,” he said in an interview with China Reform magazine posted on the website of his agency, the State Administration of Foreign Exchange.

Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan’s or America’s.  “China is still a developing country, and we should be wise enough to know ourselves,” Yi said, when asked whether the time was ripe for the yuan to become an international currency.

Can It Be Sustained?

China’s economy expanded 11.1 percent in the first half of 2010, from a year earlier, and is likely to log growth of more than 9 percent for the whole year, according to Yi.  China has averaged more than 9.5 percent growth annually since it embarked on market reforms in 1978. But that pace was bound to slow over time as a matter of arithmetic, Yi said…go to original article

Huge China oil spill threatens Chinese sea life and water.

By CARA ANNA, Associated Press Writer Cara Anna, Associated Press Writer – 

BEIJING – China’s largest reported oil spill emptied beaches along the Yellow Sea as its size doubled Wednesday, while cleanup efforts included straw mats and frazzled workers with little more than rubber gloves.  An official warned the spill posed a “severe threat” to sea life and water quality as China’s latest environmental crisis spread off the shores of Dalian, once named China’s most livable city.


One cleanup worker has drowned, his body coated in crude. “I’ve been to a few bays today and discovered they were almost entirely covered with dark oil,” said Zhong Yu with environmental group Greenpeace China, who spent the day on a boat inspecting the spill.  “The oil is half-solid and half liquid and is as sticky as asphalt,” she told The Associated Press by telephone.

The oil had spread over 165 square miles (430 square kilometers) of water five days since a pipeline at the busy northeastern port exploded, hurting oil shipments from part of China’s strategic oil reserves to the rest of the country. Shipments remained reduced Wednesday.

State media has said no more oil is leaking into the sea, but the total amount of oil spilled is not yet clear.  Greenpeace China released photos Wednesday of inky beaches and of straw mats about 2 square meters (21 square feet) in size scattered on the sea, meant to absorb the oil.  Fishing in the waters around Dalian has been banned through the end of August, the state-run Xinhua News Agency reported.

“The oil spill will pose a severe threat to marine animals, and water quality, and the sea birds,” Huang Yong, deputy bureau chief for the city’s Maritime Safety Administration, told Dragon TV.  At least one person died during cleanup efforts.  A 25-year-old firefighter, Zhang Liang, drowned Tuesday when a wave threw him from a vessel, Xinhua reported…click here to keep reading.