Roberto Abraham Scaruffi

Weekly Report from Taiwan Security Research (Oct. 17, 2010)

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

US and China Resume Military Talks

US, China Clash Over Taiwan As Defense Talks Resume
(AFP, Oct. 13, 2010) China and the United States clashed over U.S. arms sales to Taiwan as top defense officials struggled to shore up fragile military relations.

U.S. Alarmed by Harsh Tone of China’s Military By Michael Wines(New York Times, Oct. 12, 2010) Defense Secretary Robert M. Gates met his Chinese counterpart, Liang Guanglie, in Vietnam for the first time since the two militaries suspended talks with each other last winter, calling for the two countries to prevent “mistrust, miscalculations and mistakes.”
U.S. and China Soften Tone Over Disputed Seas By Thom Shanker(New York Times, Oct. 13, 2010) The United States and China sought to defuse tensions over disputed territorial seas, with Defense Secretary Robert M. Gates urging nations to honor historic rights of free transit through international waters and his Chinese counterpart saying the region had nothing to fear from Beijing’s armed forces.
U.S.-China Defense Ties Are Marked by Deep Mutual Distrust By Kenji Minemura and Yusuke Murayama (Asahi Shimbun, Oct. 14, 2010) Despite a recent thaw in defense ties between the United States and China, the relationship continues to be marked by deep mutual distrust--with friction over Asian waters becoming especially serious.

US, China Hold Maritime Security Talks in Hawaii
(AP, Oct. 17, 2010) The US and Chinese militaries have finished two days of talks over security on the high seas, the first such discussions since China broke off contact earlier this year to protest the US sale of arms to Taiwan.

Currency Issues and U.S.-China Engagement

Currency Rift with China Express Shifting Clout By Sewell Chan(New York Times, Oct. 11, 2010) The financial crisis has shifted influence from the richest powers toward Asia and Latin America, whose economies have weathered the recession well.

US Administration Delays China Currency Report
(AP, Oct. 17, 2010) US President Barack Obama’s administration announced it will delay a scheduled report on whether China is manipulating its currency to gain trade advantages until after upcoming meetings with world leaders next month.

And a Pricier Renminbi
(Editorial, New York Times, Oct. 17, 2010) Other developing countries with stronger economies and higher inflation, like Brazil, would be faced with the same choice as China: inflation or letting their currencies rise. That would be painful. But if the United States slips back into recession, it will be devastating for world growth, including their own.

Military Balance and Arms Sales

China Calls for Military Talks with Taiwan ‘in Due Course’
(AFP, Oct. 14, 2010) China called for talks with Taiwan on military issues "in due course", as the self-ruled island and former foe announced it was developing an unmanned surveillance aircraft.

Taiwan Deflects China’s Offer to Hold Military Talks
(CNN, Oct. 15, 2010) Taiwan responded coolly to China's offer to hold military talks, saying that Beijing should offer to remove its military deployment targeting Taiwan.

State Department Says US Won’t Stop Taiwan Arms Sales
(Taipei Times, Oct. 14, 2010) US State Department spokesman Philip Crowley has confirmed that despite major objections from China, US President Barack Obama is not considering ending arms sales to Taiwan.

Taiwan to Continue to Buy, Develop Arms: Ma
(AFP, Oct. 11, 2010) Taiwan will keep buying arms abroad as it cannot rely solely on improving ties with China to ensure its security, President Ma Ying-jeou said.

Taiwan Will Be Able to Track PRC Missiles: MND
(Taipei Times, Oct. 13, 2010) Minister of National Defense Kao Hua-chu assured lawmakers that the military would be able to track Chinese missiles or satellite rockets in motion after the nation’s US$967.4 million long-range early warning radar system is completed.

Taiwan’s Development of Drones Confirmed
(Taipei Times, Oct. 13, 2010) A Ministry of National Defense spokesman confirmed that Taiwan was developing an unmanned surveillance aircraft (UAV), a move that provides further confirmation of a continuing arms race despite closer political and economic ties with China.

Taiwan's Domestic Issues and Foreign Relations

Taiwanese Cheering for Liu, Angry at Ma By Takio Murakami(Asahi Shimbun, Oct. 16, 2010) Taiwan's traditional ambivalence over its relations with mainland China has taken a knock as it struggles to formulate a response to the Nobel Peace Prize awarded to imprisoned pro-democracy activist Liu Xiaobo.
US-Taiwan Relations Still on Course By Dennis Hickey(Taipei Times, Oct. 11, 2010) It appears that a major overhaul in US policy toward Taiwan is not on the horizon. On the one hand, Beijing may take solace in the fact that Washington is not going to upgrade its relations with Taipei or sell the country every weapons system that it wants. On the other hand, however, the PRC must understand that the US has no plans to “sell out” or otherwise “abandon” an old friend.

Taiwan Won’t Negotiate Int’l Space with China: Official
(CNA, Oct. 15, 2010) Taiwan's quest for international space and President Ma Ying-jeou's call for “mutual non-denial” will not be on the agenda of any cross-Taiwan Strait negotiations, a senior official responsible for China policy said.

MOFA Protests Downgrading in Int’l Bodies
(China Post, Oct. 15, 2010) Foreign Minister Timothy Yang said that his ministry has protested against the downgrading of Taiwan's status on two international bodies — apparently at the behest of Beijing.

China's Rise and Domestic Issues

Ex-Chinese Officials Join in Call for Press Freedom By Michael Wines (New York Times, Oct. 14, 2010) A group of retired Communist Party officials and intellectuals issued an unusually blunt demand for total press freedom in China.

China’s Communist Meet in Beijing as Xinhua Decries Widening Wealth Gap (Bloomberg, Oct. 15, 2010) China’s Communist Party Central Committee began its annual meeting in Beijing to discuss economic planning and personnel changes that may decide whether Vice President Xi Jinping will be the nation’s next leader.

Party Meeting Begins in Beijing amid Increasing Dissent Over Human Rights By Keith B. Richburg (Washington Post, Oct. 15, 2010) China's Communist Party Central Committee started its annual closed-door meeting to map the country's economic course for the next five years, amid increasingly bold calls for political reform and a continuing crackdown on human rights activists, dissidents and lawyers.
Once a Winner, China Sees Globalization’s Downside—Part I By David Dapice (YaleGlobal, Oct. 11, 2010) China angered its trade partners: Other nations, distraught about unemployment and eroding export markets, can no longer tolerate China’s rising trade surplus and urge the export giant to lift currency controls.
Once a Winner, China Sees Globalization’s Downside—Part II By Jeffrey Wasserstrom (YaleGlobal, Oct. 13, 2010) Harsh attempts to suppress demands for democracy and human rights may ensure the party’s hold on power, but tarnish China’s image globally.

Regional Issues and Japan Policy

Shared Concern about China Aligns U.S. and Vietnam By Seth Mydans (New York Times, Oct. 11, 2010) A steady progression of careful gestures between the United States and Vietnam has eroded the enmities of the war and turned attention from issues of the past to the present.

Vietnam Calls for Peaceful Resolution of Maritime Disputes as China Balks (Bloomberg, Oct. 12, 2010) Vietnam called for increased efforts to peacefully resolve maritime disputes at a meeting of Asia- Pacific defense ministers after flare-ups in disputed waters off China’s coast last month heightened tensions.

Japan to Consider Relaxing Weapons Export Ban By Chico Harlan(Washington Post, Oct. 15, 2010) Japan will consider relaxing its long-standing ban on weapons exports as the country explores ways to bolster its military capabilities, Foreign Minister Seiji Maehara said in an interview.

China Wants to Maintain Ties After Japanese, Chinese Protests
(Bloomberg, Oct. 16, 2010) China said it wants to maintain ties with Japan after demonstrators in the nations staged protests over a ship collision in contested waters last month that brought relations to their lowest in five years.

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