China's economy close to overtaking USA in PPP measure this year but China don't read the ranking

China may be poised to overtake the United States as the world's top economy sooner than expected, according to one measure, but some underwhelmed Chinese would rather have clean air and political freedoms.

The World Bank on Wednesday published a vast study on the rankings of national wealth creation on the basis of 2011 figures.

It was carried out with several international organisations to compare national production figures in nominal terms, and also to reflect differences in buying power -- or purchasing power parity (PPP).

Gross domestic product (GDP) for the United States in 2011 amounted to $15.533 trillion, more than twice China's $7.321 trillion. As soon as this year.

But after adjusting for PPP, the figure for China rose to $13.495 trillion -- which means that the rapidly growing Asian giant could overtake the United States as soon as this year.

Thursday was a public holiday in China so official reaction was not immediately available. Communist authorities have in the past played down such talk, keen instead to stress that in per capita terms, their people remain a long way behind the world's richest nations.

But there was scepticism, and cynicism, among Chinese social media users.

"They are talking about PPP, not GDP," wrote one of them on Sina Weibo, China's version of Twitter.

"As long as GDP, China is still far behind US," continued the post, which was written in English and was echoed by several others.

Some weibo users suggested they were more interested in tangible indicators directly related to their quality of life.

"Low income, cannot breath freely, no freedom, why should I care even if it's No. 1 in the Universe? Not to mention No. 1 on Earth," wrote a user.

"Is this more important than blue sky and clear water?" posted another.

China's decades-long economic boom has brought rising environmental problems, with large parts of the country repeatedly blanketed in thick smog and both waterways and land polluted.

One user suggested that such rankings were more closely watched overseas than in China.

"No domestic reports about this, only foreign media always talk about it," the post said. - AFP

China don’t read too much into PPP ranking

The International Comparison Program, a project coordinated by the World Bank, released a new report with data suggesting that the size of the Chinese economy, by the measure of purchasing power parity (PPP), will surpass the US to become the biggest sometime this year.

The data, once released, drew keen attention from Western mainstream media, some of which even reported that China, which strongly questioned the accuracy of the report, had tried to stop the World Bank from announcing it for a long time.

PPP is usually employed by economists as a supplementary measure to evaluate the size of economies besides market exchange rate. The size of developing economies will be usually bigger when assessed in PPP terms instead of market exchange rate.

The statement that Chinese economy tops the world is not nonsense, but  such a vision is still too far away from what Chinese people can really feel. Although China has surpassed the US in certain economic spheres, the quality of the Chinese economy is far worse than that of the US.

It is a positive sign that the Chinese government has objected to the PPP-based conclusion, and the Chinese public cares much less than the Western countries about the top economic ranking. The mainstream society is aware of China's real economic conditions. China may lack confidence, but it won't sacrifice sense to acquire it.

The PPP-based statement, announced by Western economists and analysts, does not mean it is a conspiracy, as some alarmists think. What China should do is to keep calm, and know what exactly it means to the Chinese economy.

The report may serve as new catalyst for discussion in Western countries about China overtaking the US. It might be the start that they will discuss it in a serious way. The world will probably take new perspectives toward China's growth.

China also needs to adjust itself to avoid any false pride and self-centeredness. It has to keep a clear mind about what it really is, and minimize the impact caused by external forces.

For now, China cannot decide what image it has in the mind of the West, which still has a big say on this matter. But China has the initiative for its own actions. It doesn't have to wrestle with the West for image, but it must make sure the steps it takes for its own development are not dictated by the West.

China will become the No.1 economic power sooner or later, which is an irreversible trend. But China still needs foresight to guide its moves, and make sure the geopolitical changes in the Asia-Pacific area will generate more positive results.

China being the No.1 economic power is like a double-edged sword, which on the one hand will enhance the nation's confidence, but on the other hand pose great challenges to the improvement of people's wellbeing. Whether the crowning will produce more positive results instead of social problems will be a huge test for the Chinese society.

Source: Global Times Published: 2014-5-5 0:53:01

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Apple's shine starts to fade

iPad boom slows as tablets lose out to smarter phones 

Between the iPad and its rivals, the tablet computer has become one of the most successful consumer electronic products ever. Apple (AAPL) has sold more than 210 million iPads since the device’s 2010 debut, about double the rate of iPhone sales in its first four years. The boom has helped the electronics industry make up for the drop in sales of desktop and laptop PCs. Suddenly, though, the market is slowing down.

Apple reported that iPad sales dropped by one-sixth last quarter from the same period a year earlier, and Microsoft (MSFT) said revenue from its Surface tablet, not robust to begin with, dropped about 40 percent after the holiday season. Amazon.com (AMZN) doesn’t break out sales, but according to researcher Gartner, it hasn’t moved up the market-share charts. Global tablet sales rose 19 percent in the first quarter, propelled by purchases of cheap models in emerging markets, but that’s paltry compared with growth of 83 percent during the same period last year and more than 100 percent during that period in 2012 and 2011, according to researcher Strategy Analytics.

The tablet’s early success has resulted in unrealistic expectations for the long term, says Horace Dediu, the founder of research and consulting firm Asymco. He’s surprised growth is slowing, because only about 40 percent of the U.S. market currently owns a tablet. For hot consumer electronics of previous generations, like color TVs and microwaves, this kind of decline in sales growth doesn’t usually happen until at least half the market has the product, he says. Tablets, Dediu adds, may ultimately prove to be more like game consoles: a large, valuable market that nonetheless cannot match the ubiquity of mobile phones. “It’s a very compelling product,” he says, “but isn’t of the same utility as a phone.”

Story: Apple Sells More iPhones Than Expected, Fewer iPads

As smartphones get bigger and do more, there are fewer good reasons for people to pony up several hundred dollars for a tablet, says Benedict Evans, an analyst and investor with the venture capital firm Andreessen Horowitz. Consumers are perfectly fine using their iPhone or Samsung Galaxy smartphone to browse the Web, play games, or scan e-mail while watching TV or lying in bed, Evans says, and that trend will likely continue as phone screens keep growing.

Demand is still growing for inexpensive tablets, notably some models from Samsung, Lenovo, and Asus, used mostly for watching video. Android tablet purchases grew 48 percent for the quarter, and grocery stores and retail chains, including Tesco (TSCO:LN) in the U.K. and Carrefour (CA:FP) in France, are selling their own branded tablets for less than $200. The gadgets, some as cheap as $50 in Asia, don’t have access to the range of apps or business software that an iPad does, but that’s not why people buy them. In Asia, Dediu says, the typical tablet user loads the device with TV shows, movies, and music: “The tablet is the TV of choice for Asia today.”

Tablets can’t easily replace PCs when it comes to crunching a lot of numbers, writing long reports, or making presentations. Jean-Louis Gassée, an Apple executive during the 1980s, says he’s frustrated by the limitations of the iPad, which doesn’t have a visible filing system that can organize and save documents. The simplicity that makes it easy for a wide audience to use, he says, limits its value for corporate customers or others who want such features. Along with many industry analysts, Gassée, now a general partner at venture capital firm Allegis Capital, says he expects Apple eventually to release an iPad that feels more like a PC.

Story: Microsoft CEO Nadella Pulls the Trigger on Long-Gestating Office Apps for iPad

Like Amazon and Microsoft, Apple, which generated $7.6 billion in iPad sales last quarter, declined to comment for this story. Chief Executive Officer Tim Cook, during an April 23 conference call with analysts, reiterated his belief that tablets will surpass PC sales in the next few years. He added: “Apple will be a major beneficiary of this trend.”

-  Contributed By Adam Satariano Bloomberg

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Better Internet governance, keys for Internet governance: standards and benchmarks

A series of non-obligatory international norms promoted at a recent Internet conference in Brazil will be helpful to the establishment of global Internet governance, but it remains urgent that some specific rules be worked out to ensure cyberspace is not used as a means for some countries to target others.

The United States National Security Agency's PRISM program disclosed by the Edward Snowden has aggravated the concerns of countries worldwide about cyberspace security and accelerated the push for better Internet governance.

In March, the US government announced that it will turn over the Internet Corporation for Assigned Names and Numbers, known as ICANN, which manages the core functions of the Internet, to a "global multi-stakeholder community". This, if implemented, would be a positive step toward improving global Internet governance. Nevertheless, the better management of cyberspace depends more on how to build a safe, open, equitable and orderly network environment for countries across the world, says an online article of People's Daily.

For the better governance of the Internet, the UN Charter and the universally recognized norms of international relations should be abided by, and the cyberspace sovereignty of each country, including the laws, regulations and policies each country has adopted regarding the Web should be respected.

All countries should be empowered to manage their information facilities and conduct Internet activities within their territory in accordance with their laws, and their information resources should be free from any external threats.

An Internet governance framework should also be built on the principles of tolerance, equality and extensive participation from multiple parties. All countries, big or small, rich or poor, should be allowed to participate in Internet governance and equally share the opportunities brought by booming information technologies. The making of relevant Internet standards, rules and policies should be based on openness, transparency and fairness, and developed countries should help developing ones to develop their network technologies.

And while enjoying their own Internet rights and freedom, countries should not compromise the information freedom and privacy of other countries.

To promote better Internet governance, the voices of all countries should be respected and their coordination is needed to make cyberspace rules acceptable to all.

- China Daily

The key for Internet governance: standards and benchmarks

A global Internet governance conference in Brazil concluded last Tuesday with a strong demand for building an effective worldwide legislative framework, while a series of Internet-related optional standards had been drafted.

The Internet has spread its influence into every aspect of life around the world. But while people enjoy the conveniences that the Internet brings, they are also starting to worry about security and privacy issues and the possible negative impacts of the Internet. Last year, revelations about the American “Prism” program triggered global concerns about surveillance, resulting in calls for protecting the individual, and strengthening Internet governance

Last month, the U.S. announced its plans to turn over the Internet Corporation for Assigned Names and Numbers, known as ICANN, to a “global multi-stakeholder community”, which sent a positive message to the world. But the obligations of Internet governance should go beyond IP address allocation into control of Internet technical standards and a focus on how countries can build a secure, open, transparent, and ordered web environment.

Internet governance should admit and respect a self-regulated space free of government interference in all countries, subject to a country’s level of technology, language, and culture, and people’s wishes in terms of relevant legislation. A country should also be able to supervise its information infrastructure, information resources, and online activities in accordance with laws designed to protect the interests of its people.

Internet governance should focus on extensive cooperation among all stakeholders against a backdrop of a tolerant and fair attitude. Any country, big or small, rich or poor, should have both the obligation to participate in Internet governance, and the right to enjoy opportunities created by IT development.

Internet governance should uphold open, transparent, and win-win principles for general cooperation. The decision-making on Internet standards, rules, and policy should be open and transparent; developed countries should be encouraged to help developing countries in improving network techniques and narrowing the information gap.

Internet governance should insist on both rights and obligations. A country should uphold the right to privacy by ensuring the effective implementation of all obligations under human rights law. Everyone should be able to enjoy the right to and freedom of the Internet, subject to not damaging the interests of other people or the country, and not breaking the law or damaging social morality.

The key for global Internet governance is to promote close cooperation among countries, and build a practical network of international Internet-related rules and standards. All opinions and proposals from all countries should be heard with equal importance while defining rules suitable for all countries.

- The article is edited and translated from 《互联网治理，规范和标准是关键》, source: People's Daily

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US hypocritically abuses principles of the United Nations Convention on the Law of the Sea (UNCLOS) !

 Images for US hypocrisy

US hypocritically abuses principles of UNCLOS to benefit itself

The high-profile interventions by the US in the disputes between China and some of its neighbors over some islands or reefs and maritime entitlements in recent years, have seen the US frequent making use of the United Nations Convention on the Law of the Sea (UNCLOS). It seems that according to the US, China has become a violator of UNCLOS.    

Images for US hypocrisy

The fact is that the disputes between China and some of its neighbors over some islands or reefs fall within the scope of territorial disputes, which are not subject to UNCLOS' regulation and adjustment.

Moreover, China, as a state party to UNCLOS, made a declaration in 2006, which excluded disputes on maritime delimitation and historic title or rights from the compulsory dispute settlement procedures, in accordance with relevant UNCLOS provisions concerning optional exceptions.

The US, which keeps on emphasizing the rule of international law, should be well aware of this background. However, the US has repeatedly distorted UNCLOS to negate China's lawful maritime claims and rights. Anyone with common sense can understand what the US acts mean.  

While the US behaves like a state party to UNCLOS and argumentatively invokes UNCLOS to criticize China, it forgets that it has not ratified UNCLOS itself. As the world's top sea power and significant coastal state, the US, under the excuse that UNCLOS has become part of the customary international law, has enjoyed all the rights given by UNCLOS while choosing to evade the related duties at the same time. This clearly demonstrates the selective and utilitarian attitude of the US toward UNCLOS.  

The US misuse of UNCLOS is also well reflected in its self-granted impunity concerning its maritime military maneuvers. The US possesses ultra-strong naval power and the capacity to control all the world's strategically important maritime locations, and its freedom of navigation and maritime entitlements have never been threatened.

With the development of modern naval weaponry particularly the enhancement of the electronic telecommunication and reconnaissance capabilities, the US has for a long time expanded its maritime and aerial reconnaissance and deterrence activities into other countries' exclusive economic zones (EEZ) and the airspace above them, causing disquietude among many developing coastal states, and making the utilization of EEZs for military purposes a highly controversial issue globally.

Washington has made a series of US-style interpretations on UNCLOS' EEZ regime, such as confusing the EEZ with the high seas in its excessive expansion of its naval ships' rights to free movement, misinterpreting the provisions concerning the peaceful use of oceans for an improper assertion that all non-invasive military activities are lawful, arguing that its military ships' close-reconnaissance of other countries' EEZs are hydrological surveys or intelligence collection, and so on.

The self-granted impunity mentioned above fully reveals the unscrupulous US playing with and trampling on UNCLOS.       

And from the perspective of timing, when the US started to put into practice its "pivot to Asia" strategy, it simultaneously began to make an issue of UNCLOS under the circumstances of its not-yet accession into it, and to hype up the East China Sea and South China Sea issues, so as to pave the way for its military "rebalance." 

Rather than adopting a "double standard" in using UNCLOS to realize its selfish interests and "rebalance" other countries, the US, the self-proclaimed defender of regional maritime order and mediator of relevant disputes, should consciously abide by the maritime norms in accordance with the spirit of UNCLOS.

It should  show respect to the joint efforts by China and its neighbors in resolving relevant disputes through consultations and negotiations, and engage more in activities which are conductive to regional peace and stability, maritime cooperation and development.

-  By Shen Yamei Source: Global Times Published: 2014-4-29 21:43:01
The author is an associate research fellow with Center for Maritime Security and Cooperation Studies, China Institute of International Studies. opinion@globaltimes.com.cn

US shows its true colors

 http://www.chinadaily.com.cn/opinion/
 www.chinadaily.com.cn/opinion

Just as many have observed, united States President Barack Obama's Asia visit is essentially about Washington's and its allies' unease about a rising China.

From Tokyo to Manila, Obama has tried to pick his words so as not to antagonize Beijing. But from the US-Japan joint statement to the new US-Philippines defense agreement, it is increasingly obvious that Washington is taking Beijing as an opponent. With Obama reassuring the US' allies of protection in any conflict with China, it is now clear that Washington is no longer bothering to conceal its attempt to contain China's influence in the region. It is even less convincing to say the US pivot to the Asia-Pacific is not targeted against China.

Obama's rhetoric about peace and international law sounds hollow because it contradicts what Washington and himself have been up to. The US-Japan statement, for instance, is a dangerous license for the increasingly rightist Japanese Prime Minister Shinzo Abe to provoke more trouble. Its shameless disregard of historical facts and endorsement of Abe's rightist inclinations will only cause further instability.

For a considerably long period, Chinese have cherished the naive thought that Washington will rein in its unruly allies when they go too far.

Obama's current trip should be a wake-up call that this is just wishful thinking. His sweet promises of a new type of major-country relationship should not blind us to the grim geopolitical reality: Ganging up with its troublemaking allies, the US is presenting itself as a security threat to China.


The foremost threat is not the disputes that estrange China from its neighbors such as Japan and the Philippines. It is rather the threatening image of China that is being projected and marketed by these malicious neighbors and their backstage supporter.

Washington's biased portrayal of China and its legitimate territorial claims is conducive to the US' pivot and stronger bonds with its allies. But if the US wants to benefit from the thriving Asia-Pacific, it should promote good-neighborliness.

The further prosperity of the region calls for closer intra-regional connectivity, to which the current tensions are a threat. Washington should try to ease those tensions, instead of fanning them.

Most important of all, Washington must come to terms with the reality that China will continue to grow, though it will not follow the US' hegemonic path.

Washington's best bet lies in collaborating with, not standing against, Beijing before it is too late. - China Daily

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Obama's Manila visit beefs up Philippines 

 US President Barack Obama is now in Manila, the last stop of his Asia tour, after his visit to Japan, South Korea and Malaysia. This is Obama's first visit to the Philippines in more than six years since he took office in January 2009. He hopes to reiterate and reinforce the US "pivot to Asia" strategy that has been struggling to gain footing.

Against the background of a drastically changing geopolitical landscape in the Asia-Pacific region with growing Chinese influence, the US is keen to rally its Asian allies to maintain and promote its status as an Asia-Pacific country.

The Philippines is among the most aggressive claimants of the South China Sea, and Washington keeps reassuring this state, which is a stronghold on the "first island chain" around China.

Apart from counterbalancing an increasingly assertive China by intensifying strategic cooperation with and pledging economic assistance to China's surrounding countries, Washington also attempts to remold its image in the mind of its Asian allies, in particular when its European allies are losing confidence in the world's greatest power because of the Ukraine crisis.

Now that London is behaving half-heartedly, Paris and Berlin have shown reluctance to impose harsher sanctions against Moscow over its integration of Crimea, Obama intends to exhibit his firm commitment to reassuring all allied nations by aiding the Philippines, a treaty ally that is both economically and militarily backward.

Defense and security issues are dominating Obama's journey in Manila and economic concerns are another area on his agenda.

Philippine Defense Secretary Voltaire Gazmin and US Ambassador Philip Goldberg on Monday morning signed a 10-year deal, allowing a bigger US military presence in the Philippines and better access of US troops to the country's military bases, ports and airfields.

The Philippines was once home to two of the largest US naval and air force bases outside the continental US territory till the early 1990s. Now in light of China's increasing assertiveness in the South China Sea, the White House is sparing no effort to beef up its military presence in one of the critical links around Beijing.

More than 100 left-wing activists demonstrated at the US embassy in Manila to oppose Obama's visit and the military accord on April 23, despite the expectations from the Philippine military, business sector and local media for more US military equipment including advanced ships and aircraft .But it should be noted that the small-scale protest is a routine affair and therefore Aquino's government is unlikely to pay special heed to it.

Also on the agenda for Obama's Manila visit is economic cooperation and financial assistance.

The New York Times commented that given the wide spectrum of security difficulties the US is facing in Asia, promoting trading collaboration might be the best way for Obama to build credibility in his "rebalancing toward Asia" policy.

There is no denying that economic interaction with its Asian partners will help increase the US capital export.

Nevertheless, for the Philippines enmeshed in long-term economic debilitation, the number of cooperation programs the White House will offer may be quite limited.

Manila is in no way comparable to Tokyo or Seoul, the most vital economic pillars among the US' Asian allies, a pragmatic Washington will not invest too much.

Obama's pledges of economic packages, if there are any, will be more a show than substantial assistance.

Consequently, the Philippines will get little practical interests except some psychological comfort from its US ally, since Obama also refrains from drawing another red line on possible military action against Beijing.

Washington has deliberately been scheming to attract Manila to its geopolitical game in the Southeast Asia in a bid to continue the territorial rows over the South China Sea and counterbalance China's rise.

Compiled by Global Times reporter Wang Xiaonan, based on an interview with Ji Qiufeng, professor of international relations at the School of History, Nanjing University.
 

Philippine pact gives US access to air, sea bases

US President Barack Obama chats with Philippine counterpart Benigno Aquino as he signs the guest book at the Malacanang Palace in Manila on Monday.[Photo / Agencies]

Obama backs Manila's decision to seek int'l arbitration of territorial dispute

Washington secured a key part of its pivot to the Asia-Pacific region with a decadelong defense pact with Manila on Monday, as observers said the militarization of the region is playing with fire and makes a diplomatic settlement much harder.

The US-Philippine Enhanced Defense Cooperation Agreement was signed on Monday at the Defense Ministry in Manila shortly before Obama's arrival on the last stop of his four-country Asian tour.

The pact gives US forces temporary access to selected bases and allows them to base fighter jets and ships in the Philippines, as "part of a rebalancing of US resources towards fast-growing Asia and the Pacific", Reuters said.

The US goal in Asia, Obama said on Monday, was not to contain or counter a rising China. However he "backed Manila's efforts" to submit territorial problems with China to adjudication by international arbitration, AFP said.

The rhetoric has been charged recently between Beijing and Manila as the Philippines tried to boost its claims over China's Huangyan Island and Ren'ai Reef in the South China Sea and sought greater involvement from Washington.

"Manila's efforts have dovetailed with Washington's intention to shift to the economically booming Asian region, partly as a counterweight to China's growing clout," Associated Press said.

Rommel Banlaoi, an analyst at Manila's Center for Intelligence and National Security, told Reuters that relations between the Philippines and China will deteriorate further as China "is averse to any Philippine government initiative to involve the US in its security agenda".

"We are strengthening our relationship with the US at the expense of our relationship with China," he said.

Jia Duqiang, a Southeast Asian studies expert at the Chinese Academy of Social Sciences, said the pact serves as a component of "the Obama administration's ongoing plans to militarize issues that are rumbling in the Asia-Pacific region", and this is "actually playing with fire".

"We have seen Obama press the need for defense cooperation with US allies in almost every stop of his Asian trip, which illustrates Washington's unchanged double approach in its dealings with China — dialogue plus coercion," Jia said.

Responding to the pact on Monday, Beijing called for "relevant countries" to build more bridges to facilitate trust, regional peace, stability and prosperity.

"The US has said on different occasions that Washington has no intention of coercive moves against China, and it is necessary to examine the follow-up remarks and actions," Foreign Ministry spokesman Qin Gang said at a news conference in Beijing on Monday.

The defense deal was signed and announced "when tensions between China and its neighbors have been rising" and it is "the biggest policy achievement" of Obama's trip to Asia, the Washington Post commented.

The Philippines was an American colony from 1898 to 1946, and their defense treaty, signed in 1951, is the oldest US treaty alliance in Asia. During the Cold War the US had a large military presence in the Philippines at Clark Air Base and Subic Bay Naval Station.

But a greater US presence in the Philippines is a heated topic. Fiery debates in the Philippine Senate ultimately led to closing Subic Bay Naval Station, the last permanent US base in the country, in 1992.

Qu Xing, president of the China Institute of International Studies, warned that rising tension concerning the South China Sea has radicalized public sentiment in some countries, which makes rational discussion over the issue at the diplomatic table "much harder".

Wu Shicun, president of the National Institute for South China Sea Studies, said a number of China-related remarks made by prominent US figures, including Defense Secretary Chuck Hagel, who visited China earlier this month, have sent a clear signal that "Washington is backing the Philippines".

"These remarks run counter to the official US position that it does not take a position over the South China Sea issue," Wu said.

Obama said at a news conference on Monday, "We welcome China's peaceful rise. We have a constructive relationship with China."

But Jia from the Chinese Academy of Social Sciences, said the Philippines, more so than Japan or Vietnam, has fully endorsed the US strategy of containing China.

"Beijing should never have high expectations of Washington taking a fair approach over the South China Sea issue," Jia said. "The tension in the South China Sea will probably worsen because Washington is determined more than ever to contain China in this regard," Jia said.

- By Zhang Yunbi China Daily

Containment unlikely in Asian geopolitics 

Is it for containing China? This is a question that will be haunting the whole of East Asia during US President Obama's ongoing trip to this area. Tokyo and Manila hope it is, but the facts will prove it is only their wishful thinking.

Obama's four-country visit should have been done last October. But it was delayed because of the debt ceiling crisis and government shutdown. When voices about the US declining are rising dramatically, the top priority of Obama's trip is to reassure its Asian allies to keep their faith in Washington.

Washington keeps declaring that it doesn't pick sides in terms of the Sino-Japanese and Sino-Philippine territorial disputes. But it explicitly shows favor for Tokyo and Manila when frictions in these areas take place.

Washington tries to kill two birds with one stone by supporting its allies while avoiding irritating China, a delicate way to maintain the balance between business profits and political influence.

Obama putting off the October trip has already sent a signal that Asian allies must make way for US domestic affairs.

While in order to revive its declining economy, the US depends much more on China than these allies. Washington cannot bear a strategic confrontation of containment and counter-containment with China.

China's Asia policy keeps holding the strategic initiative with restraint. Washington and its allies' arrangements to contain China will probably end up in vain. They have no chips to bargain with China. In fact, both the US and its allies are calculating how to benefit from China's growth.

China's rise has become the biggest variable in the Asia-Pacific strategic framework. China shows to the world that it is committed to utilizing its power in a peaceful and restrained manner, and the US has also basically recognized a stronger China.

These two new developments are shaping a new Asia-Pacific order during China's rise. There will be a new balance in this area, and no countries are able to break it.

Obama's rebalance toward Asia is a rearrangement of the US presence in this area to maximize its interests. But the US is not powerful or ambitious enough to contain China in this area, or even strangle China before it rises to be a global power.

It is just an illusion for some Asian countries to contain China. In fact, there are many controversies concerning China's rise within the US-led alliance.

Japan and the Philippines want a tough stand against China, but are also worried that Asia might become the victim of a Cold War-like confrontation between the US and China.

Containing China is a plausible option for several Asian countries, but it will be proven impossible in the real Asian geopolitical game.

Obama should know that his actions and remarks during this trip will keep making headlines, but he had better not stir up a situation that is even beyond his own control.

Global Times  2014-4-23 23:53:17

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MaGIC, Malaysian Global Innovation and Creative Centre sign MoUs with Stanford University and UP Global

MaGIC sign MoUs with Stanford U. and UP Global CYBERJAYA: Prime Minister Datuk Seri Najib Tun Razak tonight witnessed the signing of memorandum of understandings between the Malaysian Global Innovation and Creativity Centre (MaGIC) and Stanford University and UP Global to foster and develop a vibrant entrepreneur eco-system in Malaysia.

Strongly backing the MaGIC concept, Najib said he believed in young people for their passion, energy and creativity.

"Hence opportunities and the ecosystem have got to be created for them to succeed.

"This is the just the beginning of a success story. We want to churn out young entrepreneurs who can command the world stage in the future," he said in his speech.

MaGIC, the one-stop centre which will provide all necessary facilities for entrepreneurs, aimed to transform Malaysia into a dynamic entrepreneurial nation by enabling domestic and international entrepreneurs to successfully start and grow their businesses.

Two of Stanford University's world-class schools, the Stanford Graduate School of Business and the Stanford School of Engineering, will collaborate with MaGIC.

Meanwhile, the partnership with UP Global is designed not only to increase the level of entrepreneurial activity and new company creation in Malaysia but also to develop Malaysia as a global startup hub and a center of activity for South East Asia.

Other collaborations that would complement MaGIC's efforts would be between the Malaysian Biotechnology Corporation and the California Institute for Quantitative Biosciences.

The collaboration would serve as a launching pad for the Bio-Entrepreneurship Programme which aimed to create an environment to enhance the commercialisation of bio-based products and services by local biotechnology researchers and entrepreneurs.

In addition, Malaysia Venture Capital Management Bhd (MAVCAP) also marked the kick-off of its third outsourced partner programme (OSPR) with its first OSP3 partner, Elixir Capital Management, a Silicon Valley-based fund manager to launch the ECM Strait Fund.

The Strait Fund would target growth equity investment opportunities in order to help scale up small to medium enterprises in the Asean region.

MAVCAP also signed a limited partnership agreement with a commitment of US$5 million from MAVCAP with 500 Durian LP, a local fund which aimed to invest in startups in the Southeast Asian region.

Durian LP would be managed by a California-based seed accelerator, 500 Startups.

These collaborations would further build entrepreneurship development programmes and accelerate the growth of an entrepreneurial nation while complementing MaGIC's initiatives

After the signing ceremony, Najib toured the MaGIC centre, located in Cyberjaya, a city poised to become the global technology hub.

US President Barack Obama is expected to launch MaGIC on Sunday in conjunction with his three-day visit to Malaysia beginning tomorrow.

Bernama - Astro Awani

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Obama to lend MaGIC touch 

Big role to play: The MaGIC in Cyberjaya will get some sound advice from Obama.

PETALING JAYA: The Malaysian Global Innovation and Creative Centre (MaGIC) in Cyberjaya, which is tasked with transforming Malaysia into a dynamic entrepreneurial nation, will get some sound advice – from President Barack Obama.

The United States leader will stop by in Cyberjaya on Sunday to be briefed and also provide a pep talk.

Special Envoy to the US Datuk Seri Jamaluddin Jarjis said it was a top priority to bring the president to the centre “to provide the inspiration.”

“The Government’s aim is to make Malaysia a high-income nation and to create a knowledge-based economy. MaGIC has a big role to play.

“The United State is all about innovation and there can be no better opportunity than having the president visit the centre,’’ he said.

Prime Minister Datuk Seri Najib Tun Razak, who has allocated RM50mil to MaGIC, is scheduled to accompany Obama to the centre after their talks in Putrajaya.

The president will witness the signing of an MoU between MaGIC and the Stanford Centre for Professional Development (SCPD) from The Leland Stanford Junior University, and with UP Global, a non-profit organisation set up to provide support for entrepreneurs.

The collaboration with SCPD will enable local entrepreneurs to enrol in courses and programmes while they continued with their businesses.

With a long history of creating talent for renowned multinational such as General Electric and Hewlett-Packard, SCPD was founded by Frederick Terman, better known as the “Father of Silicon Valley” who was the university’s Dean of the School of Engineering.

It is learnt that under the arrangement, SCPD faculty members would be brought to the centre to help in the transfer of knowledge with local entrepreneurs sent there to learn and meet with venture capitalists.

The second MoU with UP Global is a result of the 4th Global Entrepreneurship Summit (GES) held in Kuala Lumpur last year with the theme “Empowering and Connecting Entrepreneurs” organised by the Finance Ministry.

US Secretary of State John Kerry, who attended the GES event here, said the US would enter into a partnership to train 500,000 entrepreneurs from Malaysia and around the world over the next few years in 1,000 cities, including Kuala Lumpur.

Contributed by Paul Gabriel and Lim Wing Hooi

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Obama's loss of balance, his Diaoyu Islands vow 'may backfire'

US president barack obama may have congratulated himself in private for apparently pulling off a difficult balancing act, but if so, he is being a little too hasty.

He offered his anxious Japanese host the reassurance Tokyo was so desperately begging for: The confirmation that the territory it stole is covered by the US-Japan security treaty.

Then, so as not to infuriate the attentive owner next door, he stated that this "is not a new position", nor one of his making, as the US-Japan treaty preceded his birth, and he reconfirmed that Washington takes no sides in the sovereignty dispute over the islands.

However, swaying to and fro on the tightrope he was walking, Obama's balancing act was lopsided at best, because it was conspicuously biased in favor of the troublemaking Japanese prime minister.

By deliberately ignoring the Cairo Declaration, the Potsdam Proclamation, and the terms of surrender Japan agreed to at the end of World War II, Obama has betrayed the postwar international order and endorsed Japan's de facto control over the Diaoyu Islands, which should have been returned to China under the terms of these legally binding agreements.

Extending the US-Japan security treaty to those islands is both morally and legally wrong.

Obama should not expect Chinese connivance in his turning a blind eye to Japan's thievery and its claims of innocence.

It was the Japanese government that unilaterally changed the status quo. The dispute over the Diaoyu Islands had cooled down until Japan poured kerosene on it and set a match to it by "nationalizing" the main islands.

Obama's praise of "Japan's long-standing commitment to international peace and security" is grating on the ear - and not just to China - because he once again chose to ignore the elephant in the room, saying nothing about Japan's denial of its militarist past and rightist present. By tacitly endorsing Japan's actions, he is giving Shinzo Abe carte blanche to continue destabilizing the region.

That Obama has cast aside the strategic ambiguity others have tried hard to preserve may be good in one sense - it helps to relieve some of the wishful thinking that Washington doesn't condone the antics of Japan's right-wingers.

But since he has voluntarily bound his country to Abe's war chariot, instead of breathing a sigh of relief that he has completed his balancing act, he might want to start considering how he is going to untie the knots and tame the adventurous Japan under Abe, or prepare to be dragged into an unwanted conflict.

Diaoyu Islands vow 'may backfire'

The PLA is fully capable of safeguarding China's Diaoyu Islands, says spokesman

US President Barack Obama's promise of military cover for Japan's claim on the Diaoyu Islands faces the potential of backfiring, observers said.

Obama stated in a press conference in Tokyo on Thursday that the US-Japan mutual security treaty covers China's Diaoyu Islands.

"We do not believe that they should be subject to change unilaterally, and what is a consistent part of the alliance is that the treaty covers all territories administered by Japan."

The forthright remarks from Obama are widely interpreted as a display of Washington's strong commitment to its Asian allies designed to dispel suspicion of weakening US clout in the region.

Obama is on a four-nation tour that was postponed seven months ago because of the US government shutdown. He faced flak at the time for postponing the trip, both in the US and overseas, amid criticism that the US was preoccupied with domestic affairs at the expense of its international commitments.

Responding to Obama's comments, Defense Ministry spokesman Yang Yujun said that the Chinese army will continue military patrols in "relevant waters" in the East China Sea.

The Chinese military is "fully capable of safeguarding the Diaoyu Islands, and it is unnecessary for other nations to go to extreme lengths to provide a so-called security guarantee," Yang said, adding that China will firmly safeguard territorial sovereignty in the face of provocation from Japan.

Ruan Zongze, vice-president of the China Institute of International Studies, said Obama's remarks may lead to unforeseen problems because the military commitment — directly naming specific islands — could "sabotage US strategic initiatives in the region" and undermine its strategic flexibility.

"As a result, Tokyo is keeping Washington in check in this regard, and, honestly, the ruling Japanese cabinet is very unpredictable," Ruan said.

Ruan noted that Obama's remarks about the islands "also harm the credibility of the US", because instead of taking an honest broker's viewpoint the US is firmly backing one side and this has the potential to cause problems.

With Japanese Prime Minister Shinzo Abe beside him, Obama told reporters that he had not drawn any new "red line" over the islands, and he emphasized the need to resolve maritime disputes peacefully.

"The treaty between the US and Japan preceded my birth, so, obviously, this isn't a red line that I'm drawing," Obama said. Li Haidong, a researcher of US studies at China Foreign Affairs University, said Obama's visit to Japan aimed to boost Japan's status as a "pillar" of Asia-Pacific security and as a key player in containing China.

But, Li said, the two allies have different agendas.

"The US seeks stability in the big picture of its relationship with China, yet Japan is not afraid of fanning the flames of a conflict with China," Li said.

The US-Japan defense treaty requires Washington to come to Japan's defense if it is attacked.

Experts said Washington believes that backing Tokyo will have long-term benefits.

Lyu Yaodong, an expert on Japanese diplomacy at the Chinese Academy of Social Sciences, said Obama is "determined to see tangible progress in his rebalancing strategy" during his Asian trip, and "to achieve this goal, satisfying demands from Japan regarding the islands is necessary".

Abe told reporters on Thursday that "the Japan-US alliance is more robust than ever before."

"The US pivot cannot succeed without strong support from important allies such as Japan," Lyu said.

Ruan noted a shift in the US-Japan military relationship, and one example is that the US is "outsourcing" more defense duties to Japan.

"Washington believes that its promise on the islands is a feasible way to strengthen its influence over Japan, and accordingly Washington wants Japan's self-defense forces to play a greater role, which is very dangerous," Ruan said.

Yang, the Defense Ministry spokesman, also confirmed what Chinese Navy Commander Wu Shengli said on Wednesday about a worst-case scenario.

Wu told reporters on the sidelines of the Western Pacific Naval Symposium that the possibility of a military conflict remains between China and Japan, and the priority is to "prevent the outbreak of a conflict".

Yang also said the PLA will continue military patrols in waters near a tropical Japanese island close to Taiwan, days after Tokyo announced it would break ground on a new radar base in the area.

The radar station on Yonaguni Island, just 150 km from the Diaoyu Islands, marks Japan's first military expansion at the western end of its island chain in more than 40 years.

"We are paying close attention to Japan's military trends," he said.

"China's military will continue to carry out battle readiness patrols, military drills and other activities in the area," Yang said.

- By Zhang Yunbi, China Daily

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Asia future at risk if Obama sends wrong signals to Japan

US President Barack Obama steps from the Air Force One as he arrives in Tokyo, Japan on April 23, 2014. Obama began a four-country trip...

Asia future at risk if Obama sends wrong signals to Japan

US President Barack Obama steps from the Air Force One as he arrives in Tokyo, Japan on April 23, 2014. Obama began a four-country trip through the Asia-Pacific region on Wednesday. (Left)

Future hangs in the balance

The US president should persuade Japan's right-wingers of the error of their ways during his trip to the region to ensure stability.

After undergoing nearly seven decades of development since the end of World War II, Asia has already taken on a new look, witnessing not only the rise of a group of industrialized countries and regions during the latter part of the 20th century, but also the emergence of a number of economies that have grown to be the engine of global economic growth in the new century.

However, Asia's development is still unbalanced.

First, Asia's political cooperation is out of step with its economic dynamism. Political trust, particularly in East Asia, is still severely lacking. The actions and comments of Japanese right-wingers, who go so far as to complain of injustice when it comes to the Tokyo Trials and try to strengthen the country's control of territory it annexed illegally during its imperialist past, have undoubtedly sown the seeds of deep mistrust among East Asian countries.

Second, in the context of the strained relations between some countries in the region, some Western media have been hyping speculation that the Asian economy might slow further. It is true economies in East Asia have recently experienced moderate or medium-speed growth after years of high-speed expansion. But this tendency is in line with the law of development, and also is connected to the fatigued global economy. Even so, the development speed of Asia's emerging economies still far exceeds that of Western developed countries, and their momentum is increasingly reshaping the global landscape.

Because of the existence of various rifts and the lack of mutual trust, the region is in desperate need of candid dialogue. The trust deficit in Asia has affected the progress of regional economic cooperation, but at the same time it also suggests that there is great potential for further economic, investment and trade cooperation in the region, including the construction of regional free trade areas.

Asia needs to accumulate constructive positive energy, give full play to the spirit of countries being in the same boat, and effectively alleviate regional tensions to change the negative factors into positive elements. Moreover, Asia should oppose any shortsighted actions to set up small cliques.

Currently in Asia, there are serious differences between those countries adhering to unity and cooperation to benefit all and those trying to form cliques and factions to benefit themselves. It is Japan that is leading such divisiveness, as it has tried to piece together an Asian version of NATO, and antagonized its neighbors by clinging obstinately to its denial of historical facts and even embarked along the road of glorifying aggression.

Any responsible power must go all out to contribute to regional peace and stability based on human morality and justice. As a great power with tremendous economic and military presence in the region, how the United States sets out its Asia-Pacific position will make all the difference to Asia's stability and development. Whether Washington will offer constructive cooperation to Asian countries' efforts to enhance mutual trust and erase the doubts of its intentions has a direct bearing on regional peace, as well as the US' own strategic interests.

Thus the eyes of the world are focused on US President Barack Obama's four-nation trip to Asia that began in Japan on Wednesday.

If the US can aim high and think big and cooperate sincerely with countries in the region to establish a common security and trust mechanism that is suitable to the characteristics of the Asia-Pacific region, it will surely receive a share of Asia's peace dividend and be genuinely welcomed among Asian countries.

However, if the US is unwilling or unable to contribute to Asia-Pacific stability, and instead takes sides in the region's various historical and sovereignty disputes, it will be hard for the country to become the kind of responsible power that can benefit Asia. If the US only looks at short-term interests and sits watching Japan turning its military ambition into reality step by step, not only will the troublemaker's interests be ultimately damaged, but also those of the US.

History has repeatedly shown us that a country that employs a policy of appeasement will eventually shoot itself in the foot.

The author is a professor and associate dean of the Institute of International Studies, Fudan University.

Contributed by Shen Dingli  China Daily

Japan reassured over Diaoyu

U.S. President Barack Obama (R) waves next to Japan's Prime Minister Shinzo Abe after dinner at Sukiyabashi Jiro restaurant in Tokyo, April 23,2014  (left)

US President Barack Obama started his four-nation Asia tour on Wednesday by overtly supporting Japan over its disputed territory with China, which experts say will exacerbate the already tense situation in East Asia.

In a written interview with The Yomiuri Shimbun published on Wednesday, Obama stated that the Diaoyu Islands in the East China Sea fall under Article 5 of the Japan-US Security Treaty, which obliges the US to protect Japan if there are conflicts over Japan-administered territories. He also supported moves by Japan to ease self-defense limits in his remarks.

"We oppose any unilateral attempts to undermine Japan's administration of these islands," Obama said, adding that the US engagement with China "does not and will not come at the expense of Japan or any other ally."

While Japanese Prime Minister Shinzo Abe has been seeking to ease the restrictions on its collective self-defense rights prohibited by Japan's Pacifist Constitution, Obama welcomed Japan playing a greater role in international security.

"I commend Prime Minister Abe for his efforts to strengthen Japan's defense forces and to deepen the coordination between our militaries, including by reviewing existing limits on the exercise of collective self-defense," Obama said, requesting Japan's Self-Defense Forces "do more within the framework of our alliance."

This is the first time that an incumbent US president has made such open remarks in support of Japan.

"Abe, more than any of his predecessors, has made headway on what Washington has long wanted from Japan, to become a more assertive partner in regional security," Jeff Kingston, director of Asian Studies at Temple University Japan Campus, told the Global Times.

Obama, who is making the first full state visit to Japan by a US President since 1996, is expected to assuage worries by Tokyo and other allies regarding his commitment to their defense, without hurting vital US ties with Asia's biggest economy - China.

Such assurances are likely to be high on the agenda when Obama meets Abe at a symbolic summit on Thursday.

"If Obama intends to improve relations with China, he is likely to antagonize the ally. To the extent that he improves relations with the allies, he'll antagonize Beijing," Kingston said, adding that Obama is on a "mission impossible."

"Obama wants a better relationship with Beijing, but he thinks that Beijing also needs to think about modifying its behavior," Kingston noted.

Shi Yinhong, director of the Center on American Studies at the Renmin University of China, said the remarks are intended to warn China while reassuring Japan and other US allies of its security guarantee, which has been under suspicion due to the way the US has dealt with the Ukraine issue.

"Japan will be very satisfied this time. But this will encourage Tokyo to step up its confrontation with Beijing," Shi told the Global Times, adding that it will further strain tensions in Asia and even damage Sino-US relations.

Japan has ramped up its military surveillance capabilities on its westernmost island of Yonaguni, which is close to the Diaoyu Islands, by starting construction of a radar unit on Saturday.

Reiterating that the Diaoyu Islands are an inherent part of China's territory, China's foreign ministry spokesperson Qin Gang said China is strongly opposed that the islands being part of the security treaty, which was reached during the Cold War and should not damage China's sovereignty and rightful interests.

Obama and Abe are also keen to show progress on a two-way trade pact. This is seen as critical to a broader regional deal that would be one of the world's biggest trade agreements and is central to Obama's "pivot" towards Asia.

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