Change of Reigns in China: Xi Jinping Takes Over as Country’s President, Military Commission Chief; Li Keqiang Becomes Nation’s Premier

Xi Jinping emerged as China's most powerful leader in decades after he was named President and head of the powerful Military Commission on March 14. He was also named chief of the ruling Communist Party, smoothly completing a 10-yearly transition of power in the world's second-largest economy. Officially, Xi is being elected for a five-year term, but barring extraordinary events the 59-year-old president will hold the position for a decade.

In addition to being the general secretary of the Communist Party of China (CPC), which effectively rules the country, Xi has been appointed as the chairman of the powerful Military Commission, when he was elected as the new leader of the party in November 2012.

According to an official announcement here, Xi was elected as president by 3,000-strong National People’s Congress, which also endorsed his appointment as the chairman of the Military Commission.

The Military Commission supervises 2.3 million-strong and the world’s largest standing army called People’s Liberation Army (PLA), incorporating Army, Navy and Air Force.

Xi’s election a formality as the NPC, dominated by the CPC functionaries completed the once-in-a-decade power transfer from the administration headed by Hu, 70, who along with team of leaders including premier Wen Jiabao formally retires.

With today’s election Xi has emerged as the most powerful leader in China as heads the country, CPC and the Military.

The NPC also elected Li Yuanchao, a reformist and Politburo member of the CPC, as vice president. Yi who was reportedly picked by Xi ignoring pressures within the factions to energize the economic reform process to revitalize slowing economy.

Widely regarded as smooth transfer of power, Xi along with seven member standing committee of the CPC which virtually rules the country completed over 100 days in the leadership running various public campaigns against corruption, austerity both in the government and military and revamping the administration by cutting down size of cabinet.

Election of New Prime Minister

China’s annual Parliament confirmed Li Keqiang as the country’s new prime minister to replace Wen Jiabao on March 15, who retires after a decade in the post. Approximately 3,000 delegates to the National People’s Congress, the ruling Communist Party’s nominal state Parliament, endorsed Li’s recommendation by the party.

Li was nominated to the Congress by state president. He won 99.7 per cent of the 2,949 votes counted, with just three votes against him and six abstentions

Profile of New President

Xi is the son of one of China's most esteemed generals and known as a "princeling", the name given to relations of China's first generation of Communist leaders, who grew up immersed in the ruling party's upper echelons. But he has threatened to target not only lowly "flies" but also top-ranking "tigers" in corruption crackdowns, warning that graft could "kill the party".

Born in Beijing in 1953, Xi Jinping is the son of revolutionary veteran Xi Zhongxun, one of the Communist Party's founding fathers.

Xi Zhongxun was purged from the post of vice-premier in 1962 prior to the Cultural Revolution and eventually imprisoned.

The younger Xi was then sent aged 15 to work in the remote village of Liangjiahe for seven years, like most other "intellectual youth" of the time.

A local village official who knew Xi at that time described him as "very sincere and honest", adding that he was just like one of them "so everybody liked him very much".

Xi has acknowledged that this time spent working alongside villagers was a key experience for him.

He went on to study chemical engineering at Tsinghua University in Beijing, which has produced many of China's current top leaders, including Hu Jintao.

Accepted into the party in 1974, Xi served as a local party secretary in Hebei province and then went on to ever more senior roles in Fujian and then Zhejiang provinces.

He was named party chief of Shanghai in 2007 when its former chief, Chen Liangyu, was sacked over corruption charges. Shortly after, he was promoted to the party's Standing Committee and became vice-president in 2008.

Challenges Ahead

In November 2012, in his first speech to the Communist Party’s elite Politburo,.Xi denounced the prevalence of corruption and said officials needed to guard against its spread or it would “doom the party and the state.”

In following month of the same,. Xi made his first trip outside of Beijing with a visit to special economic zone of Shenzhen in south China that has stood as a symbol of the nation’s embrace of a state-led form of capitalism. Xi’s trip was seen as a strong signal of support for greater market-oriented economic policies.

The new Chinese president is well-traveled and intimately familiar with the West. His daughter attends Harvard, and he is said to enjoy Hollywood films about the Second World War.

Hu, a onetime hydroelectric power technician, worked his way up through jobs in China’s hardscrabble interior. The new Chinese president is the son of a Communist Party aristocrat, Xi Zhongxun, who was present at the birth of China’s turn to capitalism and helped develop the special economic zone of Shenzhen.

Assessment

The Presidency coupled with the post of the chairman of the Military Commission which supervises 2.3 million-strong world's largest standing military, People's Liberation Army (PLA), gives him a head start to begin his 10-year stint in power.Hu got the post of head of the military from Jiang Zemin two years after he took over as the president.

While retiring, Hu ensured that the head of the country and the party has single power structure to ensure stability. Seen as having a zero-tolerance attitude towards corrupt officials, Xi has twice been drafted in to trouble-shoot major problems.

In Fujian, he helped to clear up a corruption scandal in the late 1990s which involved the jailed smuggling kingpin Lai Changxing.

Xi takes charge at a time when the public is looking for leadership that can address sputtering economic growth and mounting anger over widespread graft, high-handed officialdom and increasing unfairness. A growth-at-all-costs model that defined the outgoing administration's era has befouled the country's air, waterways and soil, adding another serious threat to social stability.

Malaysia-China Bilateral Cooperation

Chinese Ambassador to Malaysia Liu Jian pointed out that although Malaysia and China have signed a bilateral agreement on higher education cooperation, there were some unresolved issues between the two. These unresolved issues included the mutual recognition of each other's university degrees and academic qualifications. He added that on this issue, China has no problem. China has maintained a positive attitude toward higher education cooperation with Malaysia and hoped that Malaysia could recognize the Chinese universities discussed in a full-fledge manner.
During the media gathering and lunch hosted by Ambassador Liu Jian at his official residence, the Chinese envoy said it was not easy for Malaysia and China to engage in higher education cooperation. However, having a signed agreement could allow both countries to adjust the agreed upon principle and direction to work through it gradually. He said the positive meaning of the signed bilateral agreement on higher education should not be underestimated.
Hopes To Resolve Differences in Stages
Ambassador Liu Jian hoped that on bilateral higher education cooperation issue, both countries could engage more dialogues and exchanges so that the pending problems on higher education issue could be resolved in stages. He hoped that eventually both nations could turn the black and white agreement into action plan.
He added that there were few thousand Malaysian students pursuing higher degrees in China but on the other hand, the number of Chinese students pursuing higher degrees in Malaysian universities was not many. This was because the Chinese students were concerned that their qualifications were not recognized by the Malaysian university authority. This issue has become an obstacle for both countries to pursue higher education cooperation
"The question of how soon the bilateral higher education cooperation agreement can be materialized will depend on the special effort taken by both countries to work doubly hard on resolving the differences. The education authority from both nations should have more contact and more discussion on this bilateral higher education issue because it is an important issue."
Peaceful Negation To Settle Island Territorial Dispute
As for the territorial dispute over the Nansha Islands (Spratly Islands in South China Sea), Ambassador Liu Jean pointed out that China has always advocated the use of peaceful negotiation and consultation method to resolve the maritime territorial conflicts. This would avoid affecting the broader relationship between China and relevant countries, including Malaysia.
He said that China and Malaysia have reached consensus not to take unilateral action to resolve the territorial dispute on these islands besides using negotiation method. He added that such measure could avoid the maritime territorial issue to turn more complicated than necessary.
Important Message at CPPCC/NPC Session
Ambassador Liu Jian also pointed out to the local media who attended the media lunch hosted by him of the four important messages sent out by Prime Minister Wen Jiabao to the local and international media at the press conference held at the end of China's People's Political Consultative Conference (CPPCC) and NPC (National People's Congress) joint session.
He said the most important point of Wen's message was that China would continue to take effective measure to continue coping with global financial crisis to ensure China's economy could continue to grow within this year. Ambassador Liu Jian believed that the assurance of a balanced growth of China's economy would not only benefit China, but also the region and the world. A balanced economic growth in China would also help to further speed up global economic recovery.
At the media dialogue held at the Chinese Ambassador's official residence, Ambassador Liu Jian said China's economy in 2009 has achieved better performance than expected. Such achievement amid global financial crisis was not easy to attain. However, it has also indicated that the strategy and policy taken by China to curb global financial crisis was workable.
"This year, the international financial still consists of many uncertain factors. China will also face with similar problems. Nevertheless, China has already taken effective measure to prepare for it. We will do our best to coordinate economic growth with domestic development and economic restructuring, including the handling of inflation, people's livelihood and social justice issue."
Ambassador Liu Jian said the second message of Premier Wen Jiabao at that press conference was that since the global economic situation in 2009 was unstable, China would continue to take a serious and responsible attitude and work with the international community together to jointly resolve the world's major economic and political issues. China would work with the international community to build a new international economic and political order.
He said that the third message of Premier Wen Jiabao was that although the process of modernization would take China a long period to achieve it, but China would continue to insist to take its own path to move along an open and reformed path.
"Although China's economic development has grown faster than the region. China remains a developing country. The development of China at district areas was uneven. Besides, China has a huge population. There is income disparity in China. The economic base of China remains weak. It will take a lot strength and long period of time for China to fulfill its modernization goal."
Ambassador Liu Jian pointed out that Premier Wen Jaibao's fourth message for the media was that in the future, China would continue to insist carrying out its independent and peaceful emergent diplomatic policy.
"The approach we want to take is peaceful emergence. We want to create opportunities to work with other nations through cooperation. We want to take the win-win path to gain mutual benefit. Such development is very important in the development of China-Malaysia bilateral relationship. As Premier Wen Jiabao said, even when China became strong and developed, China would not want to call itself a superpower. Such assurance will never change. China's emergence would not pose any threat to other country. China would instead bring new benefit to the international society."
Transform Free Trade Area Pressure
Ambassador Liu Jian said that since the official launch of ASEAN-China Free Trade Area on 1 January 2010, some Chinese enterprises, especially the agricultural product businesses have also felt the free trade pressure. He said he could understand that some ASEAN countries and some industries would also feel the free trade pressure. However, he felt such trade pressure was normal.
"For some ASEAN countries and some industries that make similar products as to what Chinese manufacturers produce to have fear and competition pressure is normal. However we should look at the overall situation. When trade pressure appears, the industries should push themselves forward and try to improve their competitiveness and improve productivity structure."
Ambassador Liu Jian believed that after going through a period of adjustment and interaction, these industries could eventually overcome their trade pressure.
Central Bank Monetary Agreement Mutually Beneficial
Ambassador Liu Jian said that in 2009, the central bank of Malaysia and China signed a bilateral monetary agreement that carried a total value of M$ 40 billion ringgit.
Ambassador Liu Jian hoped that the central banks or financial institutions of both nations could further cooperate along this area to create a more favorable environment for bilateral trade.
As for the development of Malaysia-China relationship, he said that the bilateral development between the two countries has set off a new upsurge in more friendly bilateral ties since 2009. He said the good relationship between Malaysia and China was because the national leaders from both countries have attained great importance to it. Besides, the response of the local media and active participation of the local community have contributed to it. At this juncture, Ambassador Liu Jain thanked the Malaysia media for their long-term interest and support for the friendship between Malaysia and China.
Recently, was the year we witnessed speedy bilateral development between the two countries. Malaysia and China made good use of the opportunity of the 35th anniversary celebration of the establishment of bilateral diplomatic ties to realize mutual visits by top national leaders of the two countries. It was during that year that both countries had signed many cooperation agreements to cooperate with each other.
Cooperation in Economic, Trade, Culture and Education
Ambassador Liu Jian said Malaysia and China have deepened cooperation in economics, trade, culture, education cooperation. Despite global financial crisis in 2009, the bilateral trade volume between Malaysia and China has reached an impressive US$52 billion. For the first time, Malaysia said China become Malaysia's largest import country. As for cultural and humanity exchange, especially in tourism field, he said in 2009, as many as 30 million Chinese nationals have traveled abroad but only 1 million of them visited Malaysia. .As such there was room for both countries to develop deeper tourism cooperation.
He also said that China planned to push the exchange of visits and bilateral cooperation between Malaysia and China's political parties, cabinet ministers and parliamentarians to higher level in order to bring more real mutual benefits and for Malaysia-China bilateral ties to attain yet another new milestone.
Chinese Businesses Must Understand Investment Environment in Malaysia. (Sub-heading)
On Chinese investment in Malaysia, Ambassador Liu Jian hoped that the businesses and enterprises in China would not lose confidence to invest in Malaysia because of certain technical problems. He said the biggest problem faced by Chinese investors in Malaysia was the difference in national conditions, difference in national cultural background and large gap between the two countries' legal systems. He hoped that the Malaysian Chinese Chamber of Commerce and local businesses could help the Chinese businesses understand the investment environment in Malaysia objectively, accurately and comprehensively
Mutual Adjustment To Find Win-Win Solution
It is normal for Chinese companies to Malaysia to find incompatible environment or holding different trade opinions. After going through a period of adjustment they should be able to adapt to each other's trade practice. In addition, both parties should also promote more dialogue, exchange and mutual adjustment to find acceptable solution.
Ambassador Liu Jian said that all along, Malaysian investors in China have outnumbered the Chinese investors in Malaysia. However, the new trend now is for more and more Chinese investors wanting to invest overseas. He pointed out that in 2009, China's investment in Malaysia has increased many folds. The total Chinese investment in Malaysia reached $18 million in 2009. The total cumulated investment volume of Chinese in Malaysia was $3.9 billion.
In fact, it is only in recent years that the Chinese enterprises begin to invest in Malaysia. Most of the people I have come into contacts with feel that there is a great development opportunity for Chinese enterprises to invest in Malaysia.

Chinese Prime Minister Visits Nepal

Chinese Prime Minister Wen Jiabao paid a visit to Nepal on January 14. Wen’s trip was conducted in complete secrecy and under heavy security lockdown with police and paramilitary forces deployed in strengths in and around the capital. The security forces had as a precautionary measure detained large number of Tibetan refugees apparently to bar them from holding demonstration. The trip has proven a milestone in the development of friendly ties between the two neighboring nations
Aid To Kathmandu
During his stay, China offered $135 million in aid to Nepal to beef up its infrastructure and security during a brief surprise visit by the Chinese prime minister.
Holding hectic parleys with Nepalese counterpart Baburam Bhattarai, President Ram Baran Yadav, Maoist chief Prachanda and leaders of other parties, Wen inked as many as eight agreements amid a virtual media blackout.

Strengthening Bilateral Ties

Wen's trip was conducted in complete secrecy and under a security lockdown with police and paramilitary forces deployed in and around the capital. The security forces had, as a precautionary measure, detained a large number of Tibetan refugees.The delegation-level talks headed by Bhattarai and Wen were held in a cordial atmosphere and the two sides agreed to strengthen bilateral relations, expanding economic cooperation.Under a series of agreements, Beijing agreed to provide massive assistance for a number of

China's Economic Strategy in ASEAN Countries

Economic relations between China and the Association of Southeast Asian Nations (ASEAN) have clearly become closer as China is now ASEAN's No. 1 trade partner and ASEAN is China's No 4 trade partner with a possibility to surpass Japan to No 3 soon. Not only in trade, investment by China's private sector and state enterprises in ASEAN countries has grown in a big leap. China now tops the investor list in ASEAN countries like Myanmar, Laos, and Cambodia, while ranking fourth for foreign investment in Thailand.
Regional Economic Trend
It is not a matter of coincidence or regional economic trend but the Chinese Government does intend to tighten economic ties with ASEAN under what I would call a "southward strategy." China began with its serious move southward in the year 2000, when Chinese and ASEAN were then fiercely competing in the world market. The China-ASEAN trade volume was not so big at the time. Then came the day when then Chinese Prime Minister Zhu Rongji wooed ASEAN to form ASEAN-China Free Trade Area (FTA). The Chinese Government has been seriously pushing for the FTA since then. The trade cooperation started with a gradual cut of import tax until the rate became zero in January 2010.
Chinese have paid frequent visits to ASEAN countries to pave the way for an army of Chinese investors. Chinese Prime Minister Wen Jiabao has visited almost all ASEAN members. Prospective fifth-generation Chinese top leader Vice President Xi Jinping has also visited Myanmar, Cambodia and Laos.
PBG Program
The Chinese Government has been using every stage, framework and forum available to continuously and seriously promote economic cooperation with ASEAN, including the push for the Pan-Beibu Gulf Economic Cooperation (PBG) program. Chinese Prime Minister Wen Jiabao has been pushing the PBG among ASEAN leaders since 2007.
As a Thai representative invited to join the Joint Expert Group for the PBG since 2008, I made the latest trip to attend the ratification of the feasibility study for the PBG early this month. I would like to cite the PBG as a case study for China's "southward strategy".
The prominence of the PBG is the participation by three key southern Chinese provinces of Guangdong, Guangxi and Hainan. The trade volume that the three provinces have with ASEAN represents one-third of the whole China-ASEAN trade. After the ASEAN-China FTA fully took effect in 2010, the trade between the three provinces and ASEAN has expanded as showed in the table above.
China's 12th Development Plan
For Guangxi in particular, it was designated by the Chinese Government as key player in China-ASEAN relations. Guangxi was officially declared Gate to ASEAN (not Yunnan as many think). It hosts China-ASEAN Expo on yearly basis in Nanning, the principal city of the province, since 2004. With conducing factors and guidance brought about by the government, economic ties between Guangxi and ASEAN have enjoyed a big leap. ASEAN has become Guangxi's No 1 trade partner. Businesspeople from Singapore, Malaysia and Indonesia have flocked to invest in the province. In the latest drive, China's 12th Development Plan targets injecting a mammoth budget of 2.6 trillion yuan in five years into the so-called Guangxi Beibu Gulf Economic Zone (GBEX) covering four key cities of Nanning, Fangcheng, Jinzhou and Beihai.
Some of you may wonder why it must be Beibu, a city bordering the South China Sea. Those who have well followed news on international politics and relations have asked me a hit question what the Chinese Government has in mind for pushing its "southward policy" through the realization of the PBG.
Of course, China does not expect to gain from the PBG only in terms of economy and investment. There are points about military strategies and security involved. China and some ASEAN countries have claimed their rights over overlapping marine territories in the South China Sea. Vietnam's Navy has gone so far as to have conducted a military exercise with live ammunition in the South China Sea recently. Vietnamese people have also staged noisy protests against China over the marine territorial dispute.
Role of Vietnam
Vietnam is sensitive to the issue in every aspect, even in the academic field. We members of the PBG panel of experts had to spend a long time to find a suitable name for the disputed marine border as the Chinese representative preferred the term South China Sea, while the Vietnamese counterpart wanted it changed to East Sea, the official term used by the Vietnamese Government. The Chinese expert would not yield to the Vietnamese counterpart's demand and it took several months for the panel to end up with just the word Sea (LOL) so as not to be biased towards any country.
The South China Sea territorial dispute and the push for the PBG could become boiling regional issues in the future. The Thai Government will have to come up with how to properly handle them. It will be certainly better for all parties concerned to cooperate than fight.

Pakistan-China Friendship: Gilani Visits Beijing

Reiterating friendship with Pakistan during the recent visit of Pakistan Prime Minister Syed Yousuf Raza Gilani, China warned in clear terms that the international community should respect integrity and sovereignty of Pakistan and should not forget its contribution to the war on terror. China has announced to supply 50 JF-Thunder warplanes to meet Pakistan's defense requirements. It has also announced 700 million yuan as aid for reconstruction of the flood-affected area and 100 million yuan loan on soft terms. It has signed nine memorandums of understanding in banking, trade, industry, agriculture, information technology sectors, and implementation on Saindak projects.
Strained Pakistan-US Relations
The announcement and the agreement that China made during the visit of Prime Minister Gilani, where he met his Chinese counterpart Wen Jiabao regarding Pakistan's defense and economic assistance are the outcome of the everlasting Pakistan-China friendship that has become a strong bond over the past 60 years and it is not in the power of anyone to break or weaken this chain now. The Pakistani prime minister paid visit to China at a critical time when relations between Pakistan and the United States were at their lowest ebb because of the Abbottabad operation and drone attacks. As a result of the US intervention and its strategy to keep Pakistan under constant pressure, and its desire to use the country according to its own will in the so-called war on terror, the Pakistan-US relations have become strained.
Since it was impossible for India to remain silent in this situation, it also started hurling threats to Pakistan. The Indian Air Force chief first issued a statement that his country can launch surgical strikes in Pakistan in self-defense. At the same time, India unleashed a propaganda campaign against Pakistan. In their separate statements, Indian Defense Minister A.K. Anthony and Home Minister P. Chidambaram strongly criticized growing relations between Pakistan and China, China's unilateral announcement about Pakistan's defense, and defense agreements. They announced to counter it by enhancing their (India's) defense preparedness. India's criticism of Pakistan-China relations and announcement to enhance its defense capabilities under the pretext of growing relations between China and Pakistan makes it clear once again that India wants to become mini-super power of the region. It has full support and patronage of the United States in its ambition and the defense and strategic agreements concluded between the United States and India during the visit of the US President Barack Obama to India last year are a clear proof in this regard.
This is a scintillating reality that China is a time-tested friend of Pakistan and Pakistan's integrity and stability is the cornerstone of China's regional strategy. However, as General (retried) Hamid Gul, former chief of the Inter-Services Intelligence, has said, that in spite of being deep and close friend, China will not fight for us because it is against the foreign policy and strategy of China.
Difference between China and the United States is that the Untied States neither follows any principle or international regulation for its interests, nor does it refrain from landing its troops in any region or any country. Similarly, clandestine acts in all the concerned and important countries, through CIA under preplanned objectives and targets, are also an important part of the US policy. On the other hand, China has neither committed flagrant aggression in any part of the world despite all sorts of international pressure and expectations, nor any report about China's clandestine activities came to light. In the backdrop of this clear situation, expectation on the part of the Pakistani rulers that China will physically come to the assistance in case of any possible the US or Indian aggression will be tantamount to committing suicide.
Similarly, China's economic policy is also crystal clear. China does gladly extend technical assistance and manpower to friendly countries but making a country beggar in the name of aid is not part of its economic policy. Since China's economic and political system has its foundations in communism, and since making weak segments and countries economically and financially strong is its prime objective, China always supported Pakistan in such projects that may help it stand on its own feet. According to reports, when Prime Minister Yousuf Raza Gilani requested for immediate financial aid in view of financial deficit and fiscal hardship in the next budget, the Chinese leadership turned down this request with great love and politeness saying giving cash contribution (alms) to friendly countries is not part of China's financial policy. Since the Pakistani rulers have developed the bad habit of getting direct financial aid from the United States, the United Kingdom, World Bank, and the IMF on stringent conditions, and now that these institutions have hinted at stopping aid to Pakistan after the Usama Bin Ladin episode, and some severe conditions are being attached, for further aid, the Pakistani rulers, as usual, tried to steer the drowning boat of country's economy to safety by visiting China. However, like a good and genuine friend, China gave it the recipe of getting rid of the aid once and for all and expressed the desire to assist through investment instead of giving cash aid.
China's Support to Pakistan's Sovereignty and Integrity
It is the impact of the way, in which the Chinese leadership expressed it friendship with Pakistan in clear terms in the current testing time, like the past, that India did not take much time to change its harsh tune against Pakistan. The same change can be seen in the statements of the US leadership. The United States had persistently been talking to Pakistan in threatening tone until clear and emphatic announcement by China but once the Chinese stance came to light, many US officials, including Hillary Clinton, have stated that Pakistan had no knowledge, at official level, about the presence of Usama Bin Ladin in Abbottabad.
Similarly, the visit of Senator John Kerry and Marc Grossman, US special envoy for Pakistan and Afghanistan, to Pakistan immediately after Prime Minister Gilani's visit to China, and formal announcement about launching joint operation in future indicates that the Chinese announcement to declare Pakistan's sovereignty and integrity as cornerstone of its foreign policy played an important role in pacifying the US outrage and anger.
Lesson for Pakistan From China's Progress
Doubtless, China is our time-tested and all-weather friend but it is unfortunate that neither we learnt any lesson from China's progress and everlasting friendship nor did we make any meaningful planning to achieve self reliance. Despite excellent relations with China at official and government-level, attention was never focused to promote people-to-people contacts in t between the two countries.
Since all personal interests of our aristocracy are linked with the West and the United States, we are tied in bonds of friendship with China under strategic compulsion but unfortunately, despite all out friendship and sympathies of China, the hearts of our aristocracy throb in unison with the west and the United States in spite of their threats and deceptions. This is the very basic reason that in spite of all sympathy and sincerity on the part of China, everlasting relation of friendship could not be established between the people of Pakistan and China that should have been established.
Demand of Situation
Time has come for Pakistan to stand on its own feet and break the begging bowl of the West and the United States and make model of China's progress our ideal. By doing so, Pakistan can start journey on the great highway of progress and prosperity.
For this new journey, Pakistan will have to promote our political, defense, economic, and commercial relations with its neighbors and genuine friendly countries like China, India, Iran, and Turkey on priority basis instead of its distant relatives such as the United States and the United Kingdom.

Need for Simultaneous Economic, Political Reform in Vietnam

Bui Tat Thang, Vice Director of the Institute of Development Strategy, Ministry of Planning and Investment, shared the thought with the scientists attending the seminar entitled 'Determine the relationship between economic and political reform' that it was the first time he had attended an open talk on political reform after many years of research.
The seminar was held recently by Tap Chi Cong San (Communist Party of Vietnam Magazine) and attended by many scientists from large academies and institutes of strategic study. They shared the opinion that after more than 20 years of reform, political institutions have not developed in step with economic institutions. The pressing requirement is that economic reform must go along with political reform, and it cannot be avoided due to 'sensitivity.'
Associate professor Vu Van Phuc, editor in chief of Tap Chi Cong San, pointed out that economic and political institutions can obstruct and interfere with each other in the absence of well-balanced, coordinated, and thorough reform.
Cannot Be Avoided
Major General Le Van Cuong, former director of the Security and Science Institute of the Ministry of Public Security, analyzed that inertia, weakness, and deterioration of some officials in the political system has impeded socio-economic development. Therefore strong political reform is to contribute to strengthen the leadership role of the Party.
Thang related the story of reform in China, and observed that it represents a good lesson for Vietnam. He quoted Chinese Prime Minister Wen Jiabao that the achievements of economic reforms will disappear in the absence of political reform.
Former Vice Director of the Academy of Journalism and Communication Duong Xuan Ngoc shared his view that while economic reform has been studied at length, the issue of political reform has rarely been mentioned and is often avoided, while they have a dialectic and symbiotic relationship. According to Ngoc, only by building stable institutions on the basis of the law-governed state can we minimize the influence of some individuals on the general interest.
The scientists also used many analogies in their discussion about the discrepancy in speed between economic and political reform, and agreed that political reform should not be avoided. Everything should be discussed in public. Phuc, editor of the Tap Chi Cong San, said that to define the relationship between economics and politics is to understand and resolve it properly, rather than rely on extreme and one-side views.
Reform From Top Down
Like economic reform, the steps to political reform need to follow a road map and make the right choices. According to Gen Cuong, the first obstacle to overcome is deterioration and weakness of some officials, Party members, and particularly high-ranking officials.
Beyond that, it is to realize the principles in the regulations and resolutions of the Party, which are to develop the people's ownership, and to carry out supervision mechanisms within the Party and the people's supervision of the activities of the Party. 'Power without supervision will deteriorate. That is certain' he said.
The third important point is to carry out social supervision and criticism of all the policies, guidelines, and socioeconomic development plans of public authorities.
Gen Cuong said that the supervisory systems of the Party and the State are performing inefficiently not because of the weakness of the supervision agencies, but rather due to their inappropriate structure and organization.
Duong Phu Hiep, former general secretary of the Central Theoretical Council of the Communist Party of Vietnam, said that the focus should be on officials, since 'this is the face of the Party.' In addition, the political system should meet the demands of the market, and be dynamic and trim. At present, the state apparatus is still cumbersome and intervenes too much in the economy, and operational shortcomings in the administration have not been overcome.
It is important, according to Hiep, for the Party to continue to reform from within, and not to try to do the work that should be done by others.
Requirements of Present Situation
Ngoc affirmed that political reform must start from the top. The Eighth National Party Congress placed 'stability' as the premise, but continuing to focus on the target of stability reflects an attitude of hesitation and fear of reform. It does not meet the requirements of the present situation.
Only political and economic reform can be the premise for development. The reform must start from the high ranks, in the Party and in the society. Although the participants had different points of view on the range of political reform, they all agreed that it is necessary to conduct wider discussions on this subject, and that economic and political reform must be carried out at the same time to achieve a comprehensive reform.

ASEAN-China Cooperation

Chinese Prime Minister Wen Jiabao's four-day visit to Southeast Asia has ended with success. In his separate meetings with Malaysian and Indonesian top politicians, all leaders had engaged in cordial and intensive communications and reached better mutual understanding and mutual respect. They had also relayed friendly and essential messages to each other. Given the time constraint, he was unable to cover more countries in his trip. However, it is believed that all Association of South East Nations (ASEAN) member states can feel the sincerity of the Chinese government.
The China-ASEAN Free Trade Area (CAFTA) has entered into its second year of implementation and in such a short period, it has made remarkable achievements. As the global economy is plagued by various turbulence and uncertainties, CAFTA has still managed to outperform other regions and maintain an impressive growth. We suppose Wen was impressed during his visit to this region. He will certainly establish more specific and feasible plans for the cooperation between China and ASEAN. Both the governments and private sectors of this region indeed look forward to it.
In the opening ceremony of the Boao Forum for Asia 2011 on 15 April, Chinese President Hu Jintao clearly indicated in his speech that China will strive to unleash the country's spending potential and increase its investment in Asia in addition to boosting its market potential in emerging economies.
Range of Flexibility
The members of CAFTA are virtually the direct targets of his pledge and they are in the forefront. Unleashing spending potential and enlarging investment in the Asian markets are actually the substance of the free trade agreement. Both parties of the free trade agreement will adhere to the agreement of zero or close-to-zero tariff in trade, service industry and investment, and this will naturally provide a wide range of flexibility. In the past one year, it has been proven that the exports of ASEAN countries have risen tremendously and new investment projects have emerged one after another in this region. Now China is going to take one step forward by unleashing its spending potential and enlarging its investment in Asia, it is not difficult to imagine the economic outlook and how it is going to benefit the development of various economies in this region. It is believed that Wen has brought a specific message in his trip to Southeast Asia. Are ASEAN countries ready to seize and fully utilize these opportunities?
Wen chose Malaysia, an ASEAN country that has close ties with China, and Indonesia, the current chair of ASEAN, as the destinations for his first foreign visit in 2011. His 30-hour activity-packed program in Malaysia and his policy speech in Indonesia have left profound impression in people's minds. This year marks the 20th anniversary of the dialogue relationship between ASEAN and China. The timing is commemorative while their success in maintaining such a good working relationship is also among the outstanding around the world. To be more precise, building and maintaining a good relationship and achieving regional economic integration within 20 years are results of highly effective works. With a population of 1.9 billion and $6 trillion Gross Domestic Product (GDP), the implementation of CAFTA will form the bedrock for the emergence of Asia. Is this not valuable?
Lack of Coordination and Unsustainability
CAFTA, which has started its operations for less than two years, is shouldering a tough and important mission of development. All basic member states of ASEAN are developing countries. Each of these economies are under tremendous pressure from the imbalance, lack of coordination and unsustainability in the face of their massive populations, inadequate resources and environmental challenges. They need to undergo tough tests in order to meet the standard and the best solution to overcome these problems is none but close cooperation with a sincere attitude.

The Chinese Government has stressed times and again that they will be 'a good neighbor and good partner to its neighboring countries forever.' Wen stressed to Indonesia, the biggest economy in ASEAN and also the current chair of the ASEAN, that 'We hope Indonesia can play an active and constructive role in the cooperation between China and ASEAN'. This is indeed a well-meaning bid.
12th Five-Year Plan
Investment is an instrument to vitalize economy and strengthen the ties between the two sides. As mentioned earlier, China has confirmed that it is going to increase its investment in Asia and emerging economies in international meetings. During his recent visit to Southeast Asia, Wen brought along the relevant issues or even investment projects that were already confirmed.
However, on the day Wen departed for his official visit, in the 5th Chinese Enterprises Outbound Investment Conference held in Beijing, a number of ministries and commissions under the National Development and Reform Commission announced that they will make joint efforts during the period of the 12th Five-Year Plan by supporting the corporate sector in matters related to finance, taxation, etc. They will amend the opening up strategy from emphasizing the inbound investment to coupling it with the outbound investment to expand the foundation for development. This measure is almost equivalent to a national policy package. It is noteworthy that ASEAN has an additional avenue to attract foreign investment following this development.
Wen Jiabao visited to Southeast Asia along with his concern over regional economic integration. His visit was well received and welcomed the various quarters. This is positive and meaningful to the 'emergence of Asia.' The continuously strengthened economic ties between China and ASEAN have become a valuable bedrock for the modernization of Southeast Asia.

Malaysia-China Bilateral Ties

Chinese Prime Minister Wen Jiabao arrived Malaysia in the afternoon of Wednesday 27 April and began his two-day official visit to Malaysia; with the expectation to push forward Malaysia and China's bilateral cooperation in economic and education, and to promote the friendly exchanges between the people of both countries, thus helping to create a new chapter in the Malaysia-China bilateral ties.
Malaysia established formal diplomatic ties with China 37 years ago. The mutual bilateral exchanges and visits between the government officials and people from both countries have since then maintained a steady growth. Over the years, both countries have also expanded bilateral cooperation in the fields of economy, culture and education. Such development has allowed the relationship between Malaysia and China to become even more stable and robust and thus reaping mutually beneficial mutually advantageous results and gains.
Mutual Benefit, Gain
This is Prime Minister Wen Jiabao's second visit to Malaysia. During Wen's official visit to Malaysia, Wen will hold talk with Malaysian Prime Minister Datuk Seri Najib Razak and Deputy Prime Minister Tan Sri Muhyiddin Yassin, respectively. He will also witness the signing of the Framework Agreement to Facilitate Mutual Recognition in Academic Higher Education Qualifications Between Malaysia and China. He will also witness the signing of an agreement to expand and deepen economic and trade cooperation between the two countries, among others. The signing of these agreements has highlighted the fact that the Chinese Government has attached great importance to its bilateral ties with Malaysia.
Although Wen Jiabao has a very tight visiting schedule, Wen has nevertheless led a Chinese business enterprise delegation to Malaysia to engage dialogue with the Malaysian business enterprises to explore investment and trade cooperation opportunities with Malaysian counterparts in Malaysia. This economic and business enterprise dialogue held during Wen Jiabao's visit to Malaysia can play an important role in strengthening Chinese business enterprises' investment in Malaysia and in pushing forward Malaysia's economic development.
Since China's reforms and opening up have already gained outstanding results and its economic achievement has the tendency to overtake the United States and become the world's largest economy; the further advancement of Malaysia-China trade relationship to a higher level should allow both countries to reap win-win beneficial results. The people from both countries can also gain benefits through the economic growth of both nations.
Creating Business Opportunities
In addition to strengthening the bilateral economic and trade cooperation between Malaysia and China through the visit of Wen Jiabao, the two countries can also strengthen cooperation in higher education, particularly in the mutual recognition of university degrees.

The bilateral cooperation in higher education can lead to the increase of student exchange volume between the students from both nations the cooperation in higher education can also avoid the loss of national talents, and thus create business opportunities in many sectors. Through mutual recognition of university degrees, Malaysia and China can take a further step in the strengthening of academic exchanges between the two countries.
Impact on Regional Stability
Chinese Prime Minister Wen Jiabao's visit to Malaysia is an important event in the Malaysia-China diplomatic history. Wen Jiabao's visit to Malaysia can also bring positive impact on regional stability and regional development. Wen Jiabao's visit can also create new business and trade cooperation opportunities and promises to Malaysia and China. Malaysians at large hope that this round of Wen Jiabao's visit to Malaysia can bring more mutually beneficial good news to both Malaysia and China.

Chinese Prime Minister Wen Jiabao Visits Malaysia

Chinese Prime Minister Wen Jiabao arrived in Kuala Lumpur 27 April to begin his two-day official visit. During his visit to Malaysia, Prime Minister Wen Jiabao will hold talk with Malaysian Prime Minister Najib Razak and Deputy Prime Minister Muhyiddin Yassin, respectively. In addition, Wen Jiabao will witness the signing of the agreement on mutual recognition of academic degrees and diplomas of higher education and the signing of agreement to expand and deepen bilateral economic and trade cooperation. Prime Minister Wen Jiabao will also visit University Malaya and hold dialogue with university students. He will also make widespread contact with Malaysians from different sectors.
Region's Stability and Development
This is Wen Jiabao's second visit to Malaysia in his capacity as the Chinese prime minister. His visit highlights the fact that the Chinese Government has attached great importance in wanting to build bilateral relations with Malaysia. Moreover, Prime Minister Najib Razak and Deputy Prime Minister Muhyiddin Yassin have also visited Beijing in June 2009 and in April 2011, respectively. They also met with Chinese President Hu Jintao and Chinese Prime Minister Wen Jiabao during their respective visit to China. During these visits, both sides have, besides exchanged respective views on regional security, economic and trade relationship, our Prime Minister and Deputy Prime Minister have also specifically stressed on the need for Malaysia and China to strengthen governmental and private sector mutual exchanges and visits. This has allowed the bilateral ties between Malaysia and China to continually be sustained and expanded based on such a good foundation. Both Malaysia and China are important and influential countries in this region. As such, the visit of Chinese Prime Minister Wen Jiabao to Malaysia is not only an important event in the history of Malaysia-China bilateral relationship; Wen's visit to Malaysia will have a positive impact on the region's stability and development.
Malaysia and China have established diplomatic ties for 37 years. 37 years ago, under the joint effort taken by the later former Malaysian Prime Minister Tun Razak, former Chairman Mao Zedong, and former Prime Minister Zhou Enlai, Malaysia and China achieved the common goal in the establishment of diplomatic relationship between the two countries and thus paved a new milestone to bridge the historical bilateral exchanges since Zheng He (an ancient Chinese official) sailed through the West Pacific and visited Malaysia. Overall, during the past 37 years, the various official and non-governmental bilateral exchanges between Malaysia and China can be described as growing along a steady and sustainable path. Although the political and societal system between Malaysia and China is different; and although the point of view and traditional value between the two countries may not necessarily be the same, but such differences do not prevent the two countries from developing mutually beneficial and friendly ties based on the basic principle of peaceful coexistence.
Bilateral Economic and Trade Cooperation
Malaysia was the first country in this region to appoint and send economic and trade officials to visit Beijing after 1989. This indicates that in the formulation of China policy, our Malaysian government has put national interest as top priority and has fully considered the situation in this region objectively. When Prime Minister Najib Razak attended the World Chinese Economic Forum held in Kuala Lumpur in November last year, he commented that the peaceful emergence of China has made China becoming the world most important economic power; China is also one of the most important investment targets in the world community. At that Chinese Economic Forum, Najib has specially mentioned and encouraged Chinese Malaysians to serve as the friendly bridge between Malaysia and China so that Malaysia can benefit from the huge and vast China market.
As a matter of fact, the economic and trade exchange between Malaysia and China is an important factor in the overall bilateral ties between the two countries. Earlier, during the 70's, the trade volume between Malaysia and China was only between $200 million and $300 million. It was very insignificant. However, since China carried out reform and opening up, the bilateral economic and trade ties between Malaysia and China have gradually accelerated. By the end of 1996, the bilateral trade volume between Malaysia and China has gone up beyond the $10 billion mark. In 2010, the bilateral trade volume has reached $74.2 billion. It was an increase of 43 percent as compared with 2009. With the implementation of ASEAN China Free Trade Agreement, more enterprises from China have come to invest in Malaysia. We can expect the bilateral trade volume between Malaysia and China to reach the $100 billion mark very soon. China has accumulated a lot of valuable experience through its own economic development. China's economic development experience can benefit Malaysia's modernization and industrialization process. Today, Malaysia is making effort to accelerate its national goal towards achieving an advanced industrial nation status. What Malaysia can learn from China's economic development experience can continue to increase beyond our expectation.
Overall, Malaysia's investment environment is also improving. The potential of Malaysia's economic development and the potential of Malaysia's trade market are strong and solid. Many intellectuals from China have already pointed out such a trade potential in Malaysia.
In fact, foreign investment in Malaysia coming from China has shown an uprising trend in recent years. With the visit of Wen Jiabao to Malaysia this time, Wen's visit should be able to further increase the confidence and interest of the Malaysian and Chinese business and industrial sectors to mutually invest in each other's country. The bilateral trade ties between Malaysia and China will also usher new prospects in further development.
Working Toward Common Interest
More and more economists now acknowledge that China's reform and opening up has not only allowed China to achieve great economic accomplishment, but that if China continues to grow in accordance with the current pace, China will eventually surpass the United States and become the world's largest economy. At present time, not only China's investment trend along the coastal south China area has continued to grow, the multi-level progressive all-round opening up patterns in China's inner mainland, northeast, northwest and southwest regions are also shaping up. Such development has created good investment opportunity for Malaysia's business and industrial sectors to invest in China. In today's global environment, the rise of regional economic groupings has resulted in the restructuring of global economic map.
The political situation in the Middle East and North Africa has remained restive and while the economic slowdown in Europe and in the United States has led to some political instability, yet on the other hand, Asian region's political stability and economic growth has continued to thrive forward. Under such a situation, the further advancement in Malaysia-China relationship is not only very necessary for both the countries but also for the Asian region. The common interest between Malaysia and China is far greater than their differences. Even if Malaysia and China have any dispute, such dispute can totally find a comprehensive solution to resolve through seeking friendly consultation with each other.
10 Years in 21st century
As Malaysia and China look toward the second Ten Years in the 21st century, we trust the frequency of communication and exchanges between Malaysia and China will definitely be intensified in all aspects. We wish every success of Chinese Prime Minister Wen Jiabao's visit to Malaysia in opening up a new chapter in the promotion of economic cooperation between Malaysia and China and in the promotion of friendly exchanges between the people of both countries.

Russian President Visits India

After the successful back-to-back visit to India by US President Barack Obama and Chinese Prime Minister Wen Jiabao, Russian President Dmitry Medvedev's visit can be termed significant in view of the fact that the two countries have renewed their relations in the light of the global situation. India has specifically conveyed to Russia that its increasing closeness with the United States and China would, in no way hamper or affect India-Russia relations. India further conveyed that it is seriously determined to strengthen and expand their mutual relations.

Important and Significant Agreements
During the Russian president's visit, several important and significant agreements were inked between the two countries. These agreements reflect the deep desire to further strengthen the relations. The statement made by the Russian president on terrorism endorses the Indian stand on the menace and gives a hint of closer ties on this particular issue.

The two countries have set a target to increase bilateral trade up to $20 billion by 2015. It is the manifestation of Russia's acknowledgement that India is a fast emerging economy in the world. It, further, reveals Russia's desire to maintain closer cooperation with India in the economic sector. The two countries have recognized the need of a more inclusive and expansive agreement to carry their economic ties to new heights. The useful discussions the two leaders had on investment in the private sector promise better outcome and greater possibilities in the near future.

Strategic Partnership
The way the two countries have recognized that cooperation in the nuclear energy sector is the significant part of a strategic partnership, reveals that despite having entered into a civil nuclear deal with the United States, India attaches great significance to its trusted and old friend in this sector. India, in fact, wants to keep all options open as far as nuclear energy is concerned and is viewing the nuclear sector as greatly significant in renewing old relations with Russia. Russian expertise in the nuclear sector is globally acknowledged. Though some doubts and apprehensions were being cast prior to the visit by the Russian president but it has become absolutely clear after his visit that the two countries would progress in the field of nuclear cooperation as well.

During Medvedev's visit, India and Russia signed 30 agreements, which include, defense, nuclear cooperation, technology, strengthening diplomatic relations and improved relations in trade and commerce. In view of the increasing defense and security needs of India, an agreement on fighter planes, worth over $30 billion, was also signed. It makes it abundantly clear that Russia continues to be an important and trusted ally of India in the field of defense. The two have also expressed unanimity on development and research on peaceful uses of nuclear energy.

UN Role Against Terrorist
The two countries have also agreed to simplify the procedures for grant of visas so as to further cement their diplomatic relations and bringing the peoples of the two countries closer. Yet another significant agreement was reached on hydrocarbons, pharmaceuticals and gas under which both intend to extend their cooperation in these fields. Though the Russian president did not comment on the issue of India's inclusion in the UN Security Council, Russia had already extended support to India on the issue.

The harsh stand that the Russian president has adopted against terrorism in indeed sweet to ears of Indian leadership. The most significant aspect of it is that the Russian president clearly gave an indication to make UN role against terrorist organizations more effective, imposing stringent sanctions and bans by international organization on terrorist outfits. He even stressed the need of simplifying international procedure on the issue of extradition.

In short, the visit by the Russian president can be easily called an attempt to give a new direction to the mutual friendship, and a positive progress in their relations.

Wen Jiabao's India Visit

Prime Minister Dr Manmohan Singh had recently said that one can change one's friends, but one cannot change one's neighbors. He had said this in relation to India's neighbors with common borders, which cannot be changed geographically. He had further said it in connection with strengthening India's relations and creation of an atmosphere of goodwill and friendship with neighboring countries.

Border Dispute
India attaches great importance to its relations with all its neighbors; yet having cordial relations with Pakistan and China, with which we have had wars also, assumes greater significance. It needs sheer grit and wisdom to have cordial relations with these neighbors.

Reports of bitter relations between India and China have appeared during recent couple of years because of the border dispute, violation of India's borders by Chinese troops, China's claim on Tawang District and other places in Arunachal Pradesh, issuance of stapled visas to residents of Indian Kashmir, refusal to issue visas to Indian Army generals and commanders posted in Jammu and Kashmir, construction of dam on Brahmaputra River, presence of Chinese workers and officers in occupied Kashmir, and supply of nuclear reactors to Pakistan. These are issues that have been souring relations at almost regular intervals. At the same time, immediate measures to get these issues addressed through mutual dialogues continued. Leaders of the two countries have also visited each other's country to augment bilateral trade and commerce, and expand their sphere.

Chinese Prime Minister Wen Jiabao's India visit is indication of the efforts in this direction by leadership of the two countries. Fourteen rounds of talks have so far taken place between the sides to resolve all these issues. It is hoped that the two prime ministers would discuss almost all issues, including the Chinese claim on northeastern states.

Fresh Avenues of Trade
The Chinese prime minister is accompanied by a 400-strong group of Chinese traders, which reflects that the main aim of his visit is to explore fresh avenues of trade, and expand and extend existing deals. It was for this purpose that Indian and Chinese companies have inked 48 fresh agreements worth $16 billion. Leading companies of both India and China dealing in electricity, telecommunication, steel, wind energy, food and seafood sectors finalized these deals.

Wen Jiabao has asserted that he did not believe the theory that India-China relations are akin to a competition between a dragon and an elephant. Addressing a meeting of traders, he asserted that China-India relations are not based on business rivalry but on collaboration and cooperative partnership. Wen added that he takes the trade imbalance between the countries seriously, and desires that India's IT and pharmaceuticals sectors have access to Chinese markets.

Creating for Investment
Addressing a meeting of corporate organizations, the Chinese prime minister stressed the need of speeding up approval of investments and easing norms of visits by people, so that a conducive atmosphere may be created for investment. It is expected that current trade between the countries would touch $ 60 billion. During 2009, India's export to China was 2.46 percent of its total exports.

During the current year, Indian imports from China remained at 1.37 percent. China imports consist more of precious stones, jewelry, and machinery and metals, while India imports electronic goods, organic chemicals, iron and steel, coke and fertilizers. The Chinese economy is said to be worth $4.98 trillion while that of India is a mere $1.31 trillion.Meanwhile, no sooner than the Chinese prime minister reached India on a three-day visit, a report appeared that Chinese engineers have succeeded in blowing a hillock with dynamite near Arunachal Pradesh border at a place called Metok located in the autonomous area in Tibet. The hillock has been blown to dig a tunnel to join Metok with the rest of China.

It may be mentioned that Metok is not only the last end of the border, but is also the same place fro m where Brahmaputra River enters India. The Indian Government has already expressed its grave concern at the proposal of construction of a dam by China in this area. China has already spent a huge amount of $20 billion on construction of infrastructure in Tibet. India is worried over this because China can deploy its armed forces in a short time at India's borders. It is yet to be seen how India protects its interest along with strengthening its relations with this neighbor.

India-China Cooperation

The twists and turns in China-India relationship show no signs of disappearing in the near future. It is, however, equally necessary not to let these complications exceed a certain limit. Some progress might be made in this direction with the meeting between Prime Minister Dr Manmohan Singh and his Chinese counterpart Wen Jiabao on the sidelines of the ASEAN Summit in Hanoi on 29 October.

Dr Singh and Jiabao have met 10 times in the last six years, as the Chinese leader observed when the two met. That is a high metric even for top leaders of neighboring countries. On each occasion there has been a degree of feel-good, considering that relations between Asia’s two biggest countries and fastest rising economies -- which also leave a mark on the world stage -- are not wrinkle-free. And yet, it is apparent to all that the frequency of contact hasn’t lent itself to the two countries moving to a stage of easy give-and-take in ties.

Common Interests
The Chinese prime minister will visit India in December. In order to make this visit a success, it is important to reduce the misgivings of the two countries. India and China are neighbors. Both are members of alliances like BRIC (Brazil, Russia, India and China). They have common interests in matters like environment and world trade. They also work together in these fields. At the same time, it is also true that the two countries compete in economic and several foreign affairs, especially in spreading their influence in areas like East Asia and Africa. The old border dispute between India and China is yet to be solved. This often creates bitterness.

Dr Singh went ahead and raised all the troubling questions in the bilateral relationship that have surfaced of late -- China’s adopting a forward position in respect of Pakistan-occupied Kashmir (PoK), its questioning of India’s sovereignty in Kashmir suggested by stapling -- not stamping, which is the international norm -- of visas for Jammu and Kashmir residents, Beijing’s offer of a stapled visa for a general who commands India’s Northern Army, (which had the effect of scuttling the military officer’s visit to China on a goodwill defense visit earlier this year), and the revival by Beijing of its claims over Arunachal Pradesh (after the Indian state had been officially shown as being part of India during the term of Prime Minister Atal Behari Vajpayee).

Exploring Possibilities
India intends to explore these possibilities as much as it can. Such joint efforts will help all countries to overcome poverty and backwardness quickly. Distrust and suspicion between India and China obstruct any progress in this direction. Even the dispute between India and Pakistan has been kept alive to a large extent on China's support.

China certainly completes with India in the economic field, but it also has problems with Indian democracy. Modern China has had a dictatorial form of government for more than 60 years. Having adopted a liberal economy, it is now going through difficulties of introducing a liberal political system. Prime Minister Jiabao had to face severe criticism from conservative forces for advocating such a system.

Lack of Equilibrium
Chinese are afraid that a close friendship with a big democratic country like India might create an urge for democracy in the country. Suppressed dissatisfaction and lack of equilibrium might come out in the open.

The other problem faced by China is that democratic Western countries and Japan pin hopes on India rather than on China's monopolistic economic strength. India is trying not to let these issues come in the way of mutual relationship, but China has its own reasons for being apprehensive.

China-Japan-South Korea Leadership Summit

Chinese Prime Minister Wen Jiabao, Japanese Prime Minister Yukio Hatoyama and South Korean President Lee Myung-bak held a leadership summit at the international convention center at Jeju Island in South Korea recently. It was the third round of two-day China-Japan-South Korea leadership summit. At this summit the three countries passed the '2020 China-Japan-South Korea Cooperation Outlook.' The leaders said they would uphold history, face up to the future and persevere to promote good-neighborly trilateral relationship toward mutual trust, full cooperation among one another and to strive toward common development direction.

Crisis in Korean Peninsula
While the time, place and agenda of the third China-Japan-South Korea leader meeting have already been finalized, but because of the recent Cheonan fleet dispute in the Korean Peninsula, no one could expect in advance whether the meeting would come out with the expected results because the international community and media were watching and showing concern of the eminent crisis in the Korean Peninsula then.

Nevertheless, after the end of the meeting the gestures of cooperation as reflected by the three leaders and the concrete results obtained at the meeting have reflected the fact that the three countries would not let the Koran Peninsula issue to become a stumbling block for their further development and advancement in the triangular relationship.

Objective and Impartial Judgment
In recent years, it is a fact that China and South Korea have developed increasingly closer contact. However, the relationship between China and South Korea can never be compared with the 'clan' type of close relationship between China and North Korea. As such whether China would side North Korea over the Cheonan Incident has become the focus point of the three-leader summit. At the pre leadership summit, Wen Jiabao has already made clear to Lee Myung-bak that China would deal with the Cheonan Incident based on objective and impartial judgment. According to Chinese official news, China would not shelter any guilty party. The pragmatic and rationale attitude expressed by China over the Cheonan Incident was one of the reasons contributed to the successful holding of the meeting, and resulted in fruitful discussion.

The three leaders did not openly condemn North Korea, but agreed that the attacks on Cheonan fleet incident had caused casualties and was a serious incident that could affect Asian peace and stability. They sent their condolences to the victim families. Both the Chinese and Japanese leaders attached importance to joint investigation on the Cheonan Incident conducted by South Korea and other countries and noted the various responses. The leaders said the three countries would maintain communication, to properly deal with this incident, so that regional peace and stability could be maintained.

Free Trade Agreement
On economic cooperation, the three countries also agreed to strive forth that before the end of this year, to come out with the 'China-Japan -South Korea Investment Agreement' and that by 2012 the China-Japan-South Korea Free Trade Agreement can be materialized. In addition, the three countries will also expand and simplify the business environment in their respective countries at the same time establishing a mechanism to facilitate efficient transportation and logistic management. The three countries will also strengthen financial cooperation of financial institutions in one other's financial market.

It is understood that the total gross economic output of China, Japan and South Korea accounted for 70 percent of the total Asian economies. As of 2008, the combined Gross Domestic Product (GDP) in the three countries accounted for about 17 percent of the world economy; and the total value was $4.5 trillion. This accounted for 14 percent of total world trade. The data show that when the three countries further strengthen their economic and trade cooperation, it is not only conducive to economic development in Asia; it will also contribute to world economic recovery and prosperity.

The conclusion of the China-Japan-South Korean leader summit also resulted in the leaders' making a decision to set up the 'China-Japan-South Korea Coordination Secretariat' in South Korea in 2011. With such a permanent Secretariat mechanism in place, the three countries should be able to push their trilateral cooperation to a higher level. When the Secretariat is in place, it will also allow the cooperation among the three countries to become more solid than the current stage. This, in turn, will allow the three countries to face a more future-oriented and all-round cooperative partnership in various fields. Such development will also allow the mutually beneficial cooperation in different fields to become more fruitful. In the process the friendly feelings between the people of the three countries will also become more profound.

Differences and Contradiction
Of course the various historical factors and the contemporary reality factors, coupled with the different national core interest of the three countries will allow the trilateral cooperation mechanism formed by the three countries to become a kind of relationship that: 'amid cooperation, there will be competition, and that among the consensus there will be differences.'

However, just as the Chinese philosopher Confucius said: 'Gentlemen will maintain harmony with others but will not agree to differences, but the opposite kind of people will agree to differences but will not keep harmony.' We trust that no matter how many differences and contradiction exist among China, Japan and South Korea, as long as they can resolve their conflicts and disputes through using the dialogue and non-confrontational channel, the three countries can establish the type of gentleman relationship of 'keeping harmony amid differences.' This kind of trilateral relationship should be strong and can withhold the test of time.

China Reiterates Decision To Retain Autonomy in Currency Policy

Four days before US and China high level officials meet for the highest level China-US Strategic and Economic Dialogue, China once again reiterated its decision to retain autonomy in making own decision on currency policy. China also hinted that China and the United States have reached a 'quiet communication' consensus over the RMB issue.

China's Assistant Finance Minister Zhu Guangyao sent out a clear message about the direction of the Chinese currency Renminbi (RMB) reform direction and time frame. He also reduced observers and outsiders' expectation about the discussion of RMB exchange rate in the coming week's second round of Sino-US Strategic and Economic Dialogue to be held in Beijing. Zhu Guangyao has provided a realistic market view about the possibility of the appreciation of RMB situation in the days to come.

Currency Reform Measure
Citing Chinese national leaders' earlier remarks of upgrading China's currency exchange mechanism to 'acts of national sovereignty level', China's Assistant Finance Minister Zhu Guangyao told the press that 'China's specific reform measure has to be based on the change and development in the overall world economic situation. The Chinese Government will take independent coordination to consider and to push forward currency reform measure.'

'What I want to specifically emphasize is that China will not advance its currency reform in particularly when China is under external pressure. External pressure and noise will do nothing but slow our currency reform process.' Minister Zhu's statements echoed China's Prime Minister Wen Jiabao's warning two months ago when the latter said that putting pressure on China and forcing China to revaluate and appreciate RMB would be counter-productive.

The second round of China-US Strategic and Economic Dialogue will be held in Bejing beginning 24 May. US Secretary of State Hillary Clinton and the US Secretary of Treasury Timothy Geithner will lead the US delegation to this year's high level bilateral dialogue with China. China will be represented by China's Vice Prime Minister Wang Qishan and China's State Councilor Dai Bingguo.

From the beginning of this year until today, a series of trade and strategic issues exacerbated tensions between China and the United States. The coming Dialogue should provide an opportunity for both nations to address these tension issues.

Based on China's Assistant Finance Minister Zhu Guangyao 's introduction, this Second China-US Strategic and Economic Dialogue, co-chaired by Wang Qishan and Timothy Geithner, will discuss the European sovereign debt crisis and its impact on the world economy in order to promote sustainable international fiscal policy; to build an open investment environment; to promote open trade in order to further deepen the reform of international financial institutions; among other related issues.

There are indications to show that at this Second China-US Strategic and Economic Dialogue, in the light of both countries' concern about the present European sovereign debt crisis and the worsening investment climate for Chinese enterprises in Europe, China's RMB issue will not be considered by both countries as a major issue as focus of attention at the Dialogue. At this moment, what we understand is that as far as China's currency exchange rate is concerned, the consensus between China and the US is to deal with this delicate issue in a low profile manner.

China-US Sensitive Issues To Adopt 'Quiet Communication' Strategy
Minister Zhu Guangyao also confirmed that although the RMB exchange rate would be one of the agenda in the Second China-US Strategic and Economic Dialogue, he also said that 'as the overall Sino-US economic relationship, the RMB exchange rate issue is only one of the issues. He said: 'This (exchange rate) is only one of the issues among the many issues in China-US bilateral economic issues. On sensitive bi-lateral economic issues, China and the United States should maintain 'quiet' communication.'

He also said: 'For sensitive issue such as the currency exchange rate, we hope both countries can keep the agreed upon spirit of 'quiet' strategy to engage in communication and dialogue. This should allow the views from both sides to be able to express fully so as to allow both countries to have deeper understanding on the same issue. This should help to push forward and promote the bilateral cooperation in macroeconomic policies between the two countries.'

All along, on resistance of foreign intervention on China's RMB exchange rate, the Chinese Government's policy has adopted the policy to deal with the issue in accordance with the 'autonomy, gradual and controllable' principle. However, from the US perspective, after the US Treasury suffered political pressure coming from the Congress to pressure China on appreciation of RMB, the US Treasury has delayed in submitting its semi-annual currency report to the US Congress since last month. As such, to the United States, the RMB exchange issue is still an outstanding issue for the US Government. However, market analysts have predicted that even without pressure coming from foreign countries, China's RMB will have a minor adjustment to appreciate from between 3 percent to 5 percent this year.

In Europe, the recent Euro crisis caused by the national debt crisis in Greece has led to many observers to opine that China may delay the measure to allow its RMB decoupling with US dollar. Substantial depreciation of the euro this year has led to the RMB exchange rate against the euro to appreciate more than 15 percent. To the Chinese enterprises that rely heavily on the current RMB exchange rate to maintain their market competitiveness, such development in Europe has resulted in significant export costing pressure to China's enterprises. As such since Europe is China's largest export market, the economic growth prospect of the European Union has also caused grave concern to the Chinese government officials.

European Sovereign Debt Crisis
Zhu Guangyao said: 'I hope that the main currency used as major monetary reserve can maintain a basic stability.' Zhu's remarks further implied that the dollar peg of the RMB exchange rate is unlikely to change.

As for the measure to cope with the European sovereign debt crisis, Zhu Guangyao pointed out that: 'Countries including China and the United States should strengthen coordination of macroeconomic policies. Both nations should make the G20 mechanism to become the main platform to play the actual role of governance on world economy. This can strengthen the international community's capacity to respond to this kind of economic crisis and challenge.'

Fiscal Deficit-GDP Ratio
Under the larger backdrop of possible expansion of sovereign debt crisis, Zhu Guangyao acknowledged that China is concerned about the growing US federal budget deficit.

He said: 'We hope that the US fiscal deficit-Gross Domestic Product (GDP) ratio can gradually be reduced in its economic recovery process to attain a sustainable level.'

China is now the largest holder of the US Treasury bonds. According to the US Treasury Department's international capital flows report released on 17 May, for the month of March the China's holdings of US Treasury bonds has increased US$17.7 billion dollars (approximately $24.5 billion), making the total China's holding of US Treasury bonds reaching $895.2 billion dollars. This was the first time China purchased US Treasury bonds since September 2009.

Kim Jong Il's Unofficial Visit to China

Workers Party of Korea General Secretary and concurrently National Defense Commission Chairman Kim Jong Il paid an unofficial visit to China from 3 to 7 May. Some China's international affairs experts said that Hu Jintao's five proposals on strengthening China-North Korea cooperation have set the basic tone for the development of China-North Korea relations in the future.

Viewing from the consensus reached by both sides on the Korean Peninsula's situation, the possibility of restarting the six-party talks has increased, but there are still variable factors on whether the talks can be resumed soon.

Five Proposals
During his stay in China, the North Korean leader put five proposals. They were:

First, is maintaining high-level contacts. Both sides' leaders should maintain close connections by conducting mutual visits, sending special envoys to each other's country, and delivering verbal messages to each other.

Second, is strengthening strategic communication. Both sides should, at any time and on a regular basis, conduct in-depth communication on the two countries' internal and foreign affairs as well as major issues, the international and regional situation, the experience in administering the party and the country, and other issues of mutual concern.

Third, is deepening economic and trade cooperation.

Fourth, is expanding humanistic exchanges.

Fifth, is strengthening coordination between both sides on international and regional issues so as to better safeguard regional peace and stability.

These five proposals have set the basic tone for the development of China-North Korea relations in the future. If these proposals can be implemented step by step through joint efforts, they will have important and positive influence on China-North Korea relations and enable the two countries to open up a new situation on the basis of inheriting their traditional friendship.

Strengthening Bilateral Cooperation
Specifically analyzing the five proposals, they consist of high-level political mutual visits and involve economic and trade cooperation that is conducive to the people's livelihood. In the meantime, these proposals also involve deepening cultural, education, youth, and other civilian exchanges.

Against the background of China-North Korea traditional friendship, promoting humanistic exchanges between the youths of the two countries bears important practical and historic significance.

Six-Party Talks Process
During Kim Jong Il's visit to China, both sides exchanged views on the situation in the Northeast Asian region and the six-party talks. Both sides are of the opinion that the relevant parties involved in the six-party talks should demonstrate sincerity and make positive efforts to push forward the six-party talks process. The North Korea side indicated that its stand on upholding the Korean Peninsula's denuclearization had not changed. The North Korea side is willing to work with all the relevant parties to create favorable conditions for the resumption of the six-party talks.

Chinese leaders have continued to uphold a constructive attitude on the six-party talks. The current consensus, based on the in-depth discussions between both sides during Prime Minister Wen Jiabao's visit to the North Korea last year, shows an explicit commitment to the international community in a very formal manner: The general direction of the Korean Peninsula's denuclearization has not changed.

The North Korea still wishes to strive for the Korean Peninsula's denuclearization on the basis of the current consensus. In this sense, there is greater hope for resuming the six-party talks. But there are still variable factors on whether the talks can restart soon. It does not matter much whether the talks will resume soon, but it is important whether the talks will achieve substantial progress. Through Kim Jong Il's visit to China, we should expect that the six-party talks will achieve important progress; we should also see the complexity and instability of the issue as well as the relevant parties' responses.

Rise of China Triggers External Response Syndrome

In the recent period, international commentaries that discuss the shift in China's foreign policy have increased. These international commentaries opine that with the increased influence of China in the international arena, the attitude of China toward the outside world has also become tough, arrogant, and is gradually giving up its traditional strategy of 'keeping low profile to conserve power.'

The forming of such opinions by international commentaries about China in recent months is based primarily on China's tough stance that was different from the past as reflected in Chinese leaders' handling of the Copenhagen Climate Change Conference, President Obama's meeting with the Dalai Lama, Washington's arms sales to Taiwan, Chinese currency Renminbi (RMB) exchange rate issue and a series of other incidents such as the withdrawal of Google Search Engine portal from China.

However, through this series of recent events, what the writer of this article observed is that China has neither changed its foreign policy nor has China suddenly become tougher in the international arena than in the past. Such perception is formed when the West becomes worry and concern about the speedy emergence of China and with that concern; the West has developed a sense of loss.

Stand Toward International Community
Let us first take a look at China's reaction at the UN Climate Change Conference held in Copenhagen. At the UN Copenhagen Conference, China only insisted on adhering to the 'Kyoto Protocol' and ascertained the Bali roadmap fundamental principles. China did not come out with any new request. On the contrary, it was the United States and European countries that sought to deny the existing global warming negotiation framework and tried to start the negotiation all over again. Therefore, at that Copenhagen Conference, instead of saying China has taken a tough attitude, it is better to say the western countries have kept changing their minds.

As for the so-called incident whereby Chinese Prime Minister Wen Jiabao did not attend the small scale multilateral summit as invited and thus reflected the arrogance of the Chinese leader, such accusation was indeed baseless. For what has transpired on this incident, Prime Minister Wen Jiabao has already given a good explanation at the press conference held during the 'two sessions.'

On US President Barack Obama's meeting with the Dalai Lama, although the Chinese Government did come out with strong words and statement in protest of the US President's meeting with the Dalai Lama, such statement was only limited to diplomatic protest. China in fact did not take any concrete action toward such protest. In the past, when the previous US presidents met with the Dalai Lama, China had always staged strong words to protest such US action. As such, judging China's traditional stand on the Dalai Lama issue, although President Obama has met with the Dalai Lama, China's position on this has been the same in the past. China did not sudden change its attitude over this issue.

Enacting Taiwan Relations Act
Now let us look at the US arms sales to Taiwan. Some US scholars opine that in the past the United States has also sold arms to Taiwan, but the Chinese Government's reaction toward it has not been as strong as the current one. However, they claimed that for this round of arms sale to Taiwan, the protest from Beijing was extraordinary strong. However such claim cannot stand the test of time. Ever since the United States enacted the 'Taiwan Relations Act' with Taiwan, the United States has engaged in arms sales to Taiwan for more than 50 times. But unlike the recent one, all the past arms sales to Taiwan only involved tens of millions of US dollars or hundreds of millions of US dollars. In other words, the amounts of arms sales to Taiwan were relatively small in the past.

Even with such a small amount of arms sale to Taiwan then, the Sino-US ties in the past 30 years have gone through many rounds of confrontation over the arms sale to Taiwan issue. In 2001, the US arms sale to Taiwan and the fleet conflicts between China and the United States along the South China Sea have added together and resulted in massive and strong anti-US protests by the people in China. As such as compared with the Obama administration's approval of arms sales to Taiwan, the protest coming from Beijing cannot be considered as too harsh and tough. Moreover, President Obama's announcement on arms sales to Taiwan was as high as $60 billion dollars. For such a large amount of arms sales to Taiwan, China's reaction and the people's response to it has not been particularly strong as compared with in the past.

Google Controversy
Another issue that has led the West to support the 'China becoming tougher and more arrogance' theory is based on China's reaction to the Google search engine portal. Some US media commentaries opined that China did not make any compromise with Google and that China has taken a tough attitude in handling the Google case. But in fact, the network filtering policy was not made by China when the Google controversial emerged recently. Several years ago when Google decided to enter the Chinese market, Google has already accepted such network filtering request from China. The initiator of the Google controversy was not China but Google. Therefore, if people interpreted that the Google case as China trying to impose stringent and tougher controls of network filtering on Google alone, such presumption is difficult to convince people.

Now let us look at China's currency RMB exchange rate issue. Some US media believed that in the past when the United States bought up China's RMB exchange rate issue, China would make concessions and compromises; but this time, China has stood firm on the currency issue. As a matter of fact, each year the US Congress would raise the RMB exchange rate issue however, it the past the annual US Treasury report released in April had never regarded China as 'currency manipulator.' This year, speculation that the US Treasury report would put China as currency manipulator was stirred very hot; and for the first time the US Treasury has delayed releasing such report but it did not refuse the request of US Congress in wanting to list China as 'currency manipulator.' Therefore, on the Chinese RMB exchange rate issue, it was the United States especially the US Government that has taken the hard-line attitude and not China.

Comprehensive Response to Rise of China
As explained above, it is difficult for us to observe that China has become tough. We also cannot observe that China's foreign policy has gone through major adjustment. Nevertheless, why has the international community, particularly the western nations think that China is becoming more rude and arrogant? I am afraid this is due to the fact that the rapid rise of China has triggered such external comprehensive response syndrome.

Since the outburst of global financial crisis, the emergence of China has become even more obvious। While China's speedy economic recovery was obvious, the western economy on the other hand, has become stagnant. As a kind of psychological sense of loss, the West has shifted blame to others. Even China has not changed its foreign policy; the economic rise of China will inevitably continue to become the target of western anger. To describe this phenomenon figuratively, it is as what the Chinese proverb says: 'when the tree becomes big, it will attract wind.'

Global Financial Crisis
In fact, in the process of China's emergence, the West has always maintained suspicious, jealous or even a resistant attitude. As such, during different period of time, all sorts of theory on the so-called the collapse of China, the threat of China, the stakeholder responsibility of china has come to the surface.

After the global financial crisis, China has shown stronger signs of recovery. Some people in the West have again come out with worry and concern about what direction a rising China will go. Moreover the international community has also become even more concerned about how the emergent China will play its influential role in the international arena. Therefore, regardless of what China does and what China says, the international community would like to put China's words and deeds under spotlight to magnify them and to come out with their own interpretation.

The influence of a strong China and the influence of a weak China in the international arena are of course different. As such the attention and the impact caused by the words and acts of a strong China are different from a weak China. This is like what will happen to our daily life as a human being. When a celebrity's words and deeds will attract attention and result in wanton speculation, but an ordinary people's words and deeds are rarely of any concern to anybody.

Toward International Spotlight
Therefore, to the emerging China that is moving toward the international spotlight and international platform gradually, when the same words and deeds China in the past might not stir strong reaction from the international community, but the similar words and deeds carried out by China this year might suddenly lead to media speculation. This is an inevitable response syndrome that can happen to China during the rise of China. This can further explain the reason why when the Chinese feel that their own words and actions have not changed, but the West feel that China is getting tougher and become more arrogant.

Nevertheless, this is the 'growing pain' of most major powers when they began to emerge in the international arena. To the speedy emerging China, this growing trouble has resulted in China has to deal with the increasingly complex range of domestic issues, and that at the same time, in the international arena, China will always have to be concerned about the reaction and feelings of the international community toward its words and deeds of China now. From analytical perspective, if China can keep adjusting its conduct and behavior during its speedily emerging process, China can make the international community feels that there is indeed no change in China's foreign policy.