Roberto Abraham Scaruffi

Weekly Report from Taiwan Security Research (Sep. 19, 2010)

For full text, click on the title or visit the TSR web page at taiwansecurity.org

China-Japan Diplomatic Row Over Boat Collisions

China Scraps Visit to Japan Over Island Row: Media
(AFP, Sep. 14, 2010) China has scrapped a senior legislator's planned Japan visit this week amid a bitter row over the arrest of a Chinese skipper near a disputed island chain last week, a news report said.

China Again Summons Japanese Ambassador in Boat Row
(AFP, Sep. 16, 2010) China said it summoned Japan's ambassador for a fifth time to demand Tokyo release a Chinese fishing boat captain, digging in its heels in the worst diplomatic spat between the regional rivals in years.

Chinese Hold Anti-Japan Protests Over Boat Dispute
(AP, Sep. 19, 2010) Protesters in several cities across China marked a politically sensitive anniversary Saturday with anti-Japan chants and banners, as authorities tried to stop anger over a diplomatic spat between the Asian giants from getting out of control.

Japan to Take Measures Over China Drill
(AFP, Sep. 19, 2010) Japan plans to take "counter-measures" if China starts drilling in a disputed gas field in the East China Sea amid a simmering territorial row, press reports said.

The Other China Sea Flashpoint
(Wall Street Journal, Sep. 13, 2010) The U.S. and Japan are planning exercises later this year to practice retaking islands from an unnamed power. That is a plenty powerful signal to the Chinese navy, and to Beijing to keep its more adventurous junior officers in check. But Tokyo needs to do likewise with its coast guard.
China Ire at Sea Chase Signals Wider Reach By Peter J Brown(Asia Times, Sep. 16, 2010) Beijing’s reaction to the incident in the East China Sea seems overblown, given all available evidence. Yet it signals that Beijing may be preparing to extend the focus of its expression of core maritime interests to beyond the South China Sea.

ECFA and Cross-Strait Issues

2010 Opinion Poll on Cross-Strait Relations
(UDN, Sep. 13, 2010) 51% of Taiwanese people support maintaining the cross-Strait status quo forever.

Cross-Strait Economic Committee to Be Finalized
(CNA, Sep. 13, 2010) The organization and leadership of a proposed cross-Taiwan Strait economic cooperation committee are expected to be determined in two days, Political Vice Economics Minister Lin Sheng-chung said.

China Calls for Faster ECFA Progress
(China Post, Sep. 17, 2010) More work needs to be done by China and Taiwan to improve cross-strait economic relations after the landmark trade pact sealed in June, the head of China's Taiwanese affairs office said.

Three-Stage China Policy, Viable Strategy or Slogan? By Ko Shu-ling (Taipei Times, Sep. 13, 2010) Recent remarks by President Ma Ying-jeou about cross-strait relations reflected the strategic jousting between Taiwan and China as Beijing steps up pressure for political talks, analysts said.

Cross-Strait Comm Cables Could Soon Be a Reality
(CNA, Sep. 14, 2010) The government said that Taiwan's telecommunication companies will be allowed to join with Chinese companies in installing cables under the Taiwan Strait, a move expected to lower the cost of communicating between the two sides.

Stronger Mutual Trust Needed between Taiwan, China: Lai
(CNA, Sep. 16, 2010) Mainland Affairs Council Chairwoman Lai Shin-yuan said at the European Parliament that Taiwan and China must enhance mutual trust before initiating political and military negotiations.

Taiwan, China Hold Biggest Ever Search, Rescue Drill
(AFP, Sep. 17, 2010) Taiwan and China yesterday staged their biggest ever joint maritime search and rescue drill, near waters where the two sides fought fierce battles half a century ago, officials said.

Currency Issue and U.S.-China Engagement

Geithner Says U.S. Examining Ways to Push China on Yuan Rise
(Bloomberg, Sep. 15, 2010) Treasury Secretary Timothy F. Geithner said the U.S. isn’t satisfied with the pace of yuan gains and is considering ways to urge China to let the currency rise faster.

The U.S.-China Exchange Rate Squeeze By Sewell Chan(New York Times, Sep. 19, 2010) Anger over China’s exchange-rate policy nearly boiled over in Congressional hearings last week. Treasury Secretary Timothy F. Geithner accused China of violating international norms. President Obama plans to press the currency issue at the Group of 20 summit meeting.
Strong Yuan: Good for Poor Nations? By Dani Rodrik(Project Syndicate, Sep. 14, 2010) Perhaps we should not hold China responsible for taking care of its own economic interests, even if it has aggravated in the process the costs of other countries’ misguided currency policies.
China’s New Best Partner By Stefan Theil(Newsweek, Sep. 18, 2010) Even as Washington and Beijing slug it out over trade deficits and exchange rates, Europe has quietly overtaken America as China’s No. 1 trade partner. Mutual Trust Called Crucial to U.S.-China Relations By Katrin Bennhold (New York Times, Sep. 13, 2010) As the center of gravity of world affairs moves from the Atlantic to the Pacific, the United States needs to forge ties with China that match in depth, scope and trust those it has with the European Union, senior U.S. officials and strategists said.

Military Balance

Pentagon Changes Pacific Surveillance
(Taipei Times, Sep. 19, 2010) The US will base three Global Hawk drones in Guam to capture information about Chinese missile fields and bases in areas across from Taiwan.

Army Helicopters Make First-Ever Cross-Sea Flight
(China Post, Sep. 18, 2010) Helicopters from the army flew from Taiwan to the outlying island county of Penghu recently in their first-ever cross-the-sea flights, a newspaper reported.

Taiwan's Foreign Relations

MOFA Vows to Peacefully Solve Sovereignty Dispute with Vietnam
(China Post, Sep. 17, 2010) Bau-shuan Ger, deputy director of the Department of East Asian and Pacific Affairs under the MOFA, made the reiteration in response to a report written by Xue Litai that Vietnam might launch military intrusion into the Taiping Island.

China's Rise and Domestic Issues

China Explores a Frontier 2 Miles Deep By William J. Broad(New York Times, Sep. 12, 2010) China has unveiled a submersible designed to go deeper than any other in the world, giving it access to 99.8 percent of the ocean floor and its minerals.
China Shifts Away from Low-Cost Factories By David Barboza(New York Times, Sep. 16, 2010) Companies in China’s industrial heartland are toiling to reinvent their businesses, fearing that the low-cost manufacturing that helped propel the nation’s economic ascent is fast becoming obsolete.
Brzail’s Huge New Port Highlights China’s Drive into South America By Tom Phillips (Guardian, Sep. 15, 2010) This new phase of engagement with Brazil and South America, is part of China's "going out strategy" – an economic and, some say, diplomatic push for Chinese companies.

IMF Seen Hiking Quotas for China, India—Paper
(Reuters, Sep. 18, 2010) The International Monetary Fund will likely raise China's membership quota to as much as 6 percent from 3.9 percent now, putting it in line with Japan.

Japan Policy

Taiwan, Japan Trade Protests Over Stand-Off Near Disputed Islands (DPA, Sep. 14, 2010) Taiwan and Japan traded protests following a stand-off between Taiwan activists and the Japanese coast guard near a disputed chain of islands in the East China Sea.

China to ‘Gain’ from Kan Win By Seima Oki(Yomiuri Shimbun, Sep. 16, 2010) The Chinese government might stiffen its attitude toward Japan over maritime and other matters prone to bilateral disputes as it anticipates an easy relationship with Tokyo after Prime Minister Naoto Kan's win in the Democratic Party of Japan's leadership election, observers say.

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