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Tuesday, October 7, 2014

Building the 21st Century Maritime Silk Road

Reflections on Maritime Partnership


The “Silk Road” is a general term used to geographically describe ancient Chinese exchanges between Asia, Europe and Africa in the areas of politics, economics and culture. Starting on land and developing on sea, the “Silk Road” is a vehicle of historic importance for the dissemination of culture. The ancient maritime Silk Road was developed under political and economic backgrounds and was the result of cooperative efforts from ancestors of both the East and West. China’s proposal to build a 21st Century Maritime Silk Road is aimed at exploring the unique values and concepts of the ancient road, enriching it with new meaning for the present era and actively developing economic partnerships with countries situated along the route. Specifically, the proposal seeks to further integrate current cooperation in order to achieve positive effects.

The ocean is the foundation and vehicle necessary to build a 21st Century Maritime Silk Road. It is China’s mission to understand the importance of building a Maritime Silk Road and take effective actions at present and for a certain period to come.

21st Century Maritime Silk Road from a Global Perspective

In the twenty-first century, countries have become more inter-connected by the ocean in conducting market, technological and information exchanges. The world is now in an era that values maritime cooperation and development. China’s proposal to build a Maritime Silk Road conforms with larger developments in economic globalization and taps into common interests that China shares with countries along the route. The goal is to forge a community of interest with political mutual trust, integrated economies, inclusive culture and inter-connectivity. The construction of a 21st Century Maritime Silk Road is a global ini-tiative that pursues win-win results through cross-border cooperation. It is thus of great importance to view it from the perspective of multi-polarization, economic globalization and the co-existence and ba-lancing of cooperation and competition.

Building a 21st Century Maritime Silk Road will help stimulate all-round maritime opening-up and benefit ASEAN and relevant countries.

Oceans contain a treasure trove of resources for sustainable development. China is currently at a critical stage in its economic reform process and must pay more attention to the ocean. As mentioned in the resolution of the Third Plenum, “[China] needs to enhance opening-up in coastal regions and boost the connectivity construction with neighboring countries and regions to spur all-round opening-up.”

The Maritime Silk Road of the 21st century will further unite and expand common interests between China and other countries situated along the route, activate potential growth and achieve mutual benefits in wider areas. The Maritime Silk Road will extend southward from China’s ports, through the South China Sea, the Straits of Malacca, Lombok and Sunda and then along the north Indian Ocean to the Persian Gulf, Red Sea and Gulf of Aden. In other words, the Road will extend from Asia to the Middle East, East Africa and Europe, and it will mainly rely on ASEAN countries. Building the Maritime Silk Road will connect China’s ports with other countries through maritime connectivity, intercity cooperation and economic cooperation. On the one hand, the Road will strengthen the economic basis for China to cooperate with countries along the route and better connect Europe and Asia. On the other hand, the Road will facilitate the development of the Regional Comprehensive Economic Partnership (RCEP), bringing benefits to China, ASEAN and other countries along the road.

The Maritime Silk Road will increase trust and regional peace and stability.

As the world’s economic and political center shifts towards the Asia Pacific, the region has stepped into a stage of geopolitics characterized by intersecting, overlapping and conflicting interests. By facilitating communication between countries along the road, the Maritime Silk Road will help build a community that represents the common concerns, interests and expectations of all countries. The community is expected to guide and support a peaceful and stable Asia Pacific landscape.

Moreover, the Maritime Silk Road will further bring together the “Silk Road Economic Belt,” the “Bangladesh-China-India-Myanmar Economic Corridor” and the “China-Pakistan Economic Corridor” that together connect Europe and Asia. Such connections will greatly enhance China and other countries’ abilities to develop economically while limiting external risks. The Maritime Silk Road will also enhance cooperation in non-traditional security areas while maintaining maritime security.

Maritime Partnerships Are the Key to Building the Maritime Silk Road

At a speech before the Indonesian parliament in 2013, President Xi Jinping stated that Southeast Asia has become an important hub for the maritime silk road and that China is willing to enhance maritime cooperation with ASEAN countries, boost maritime partnerships and build a 21st Century Maritime Silk Road. President Xi’s speech set forth a clear path for developing road. Enhancing maritime cooperation will be a priority task in building the Maritime Silk Road. The first step will involve China and countries along the route promoting pragmatic maritime cooperation.

Connecting multiple regions and uniting wide areas of co-operation, the tasks put forth in the 21st Century Maritime Silk Road will not be achieved in the immediate future. Instead, these tasks call for China and relevant countries to work in a step-by-step and practical manner. Building the Maritime Silk road will require diverse forms of cooperation. With a focus on economic cooperation, the Road will give consideration to all parties involved. It will be based on the existing cooperation mechanisms and platforms and be promoted by China and other countries along the route.

The 21st Century Maritime Silk Road will cover more than 20 countries and regions that share a broad consensus on enhancing exchanges, friendship, promoting development, safety and stability within the region and beyond. The Silk Road has already received positive responses and support from many relevant countries. Greek Prime Minister Antonidis Samaras, for example, made it clear that Greece will “support and actively participate in building the 21st Century Maritime Silk Road proposed by China.” The Road runs through a region that is sensitive to international strategy and has complex geopolitics. The countries in the region differ in size, development, history, religion, language and culture. Therefore, the 21st Century Maritime Silk Road will accommodate various countries’ demands and apply suitable policies to each country. Meanwhile, the Road must change and consolidate new patterns of cooperation.

China has been building friendships and partnerships with nei-ghboring countries and developing maritime partnerships with its ocean neighbors, providing a solid foundation for cooperation with ASEAN and countries in the region. The 21st Century Maritime Silk Road requires the following efforts: First, consensus must be reached between major countries along the route to enhance maritime cooperation. During high-level dialogues in recent years, the Chinese leadership made maritime cooperation an important topic of bilateral discussions and established the China-ASEAN and China-Indonesia Maritime Cooperation Fund. At the same time, China has actively promoted maritime cooperation between Southeast Asia, South Asia and African countries and established high-level mechanisms between various national maritime departments.

Second, countries must engage in pragmatic cooperation along the route in the areas of trade, the economy, culture and infrastructure. In 2012, the trade volume of countries along the route accounted for 17.9 percent of China’s total trade. The contracted turnover in countries along the route accounted for 37.9 percent of China’s overseas contracted turnover. People-to-people exchanges between China and ASEAN recently topped 15 million, while two-way students reached more than 170,000.

Third, countries along the route must engage in effective cooperation on ocean and climate change, marine disaster prevention and mitigation, biodiversity preservation and other areas of maritime policy. In 2010, the Indonesia-China Center for Ocean & Climate (ICCOC) was established. In 2013, the China-Thailand Climate and Marine Ecosystem Joint Lab were both launched. In 2012, the Chinese government set up a Marine Scholarship, and from that year onward, the scholarship will sponsor young people from developing countries in Southeast Asia, Africa and Latin America to obtain a master’s degree or doctorate in China to enhance the marine capabilities of their own countries.

Focusing on Developing Partnerships Along the Maritime Silk Road

The Maritime Silk Road is in line with the development of national economies and the improvement of welfare. China must follow the new perspectives on value, cooperation and development featuring equality, cooperation, mutual benefits, win-win results, inclusiveness and harmony. Guided by President Xi’s desire to “expand the scale of cooperation and gradually foster regional cooperation,” China must make use of its comparative advantages and promote communication, connectivity, trade flow, currency circulation and consensus among people. China needs to target common interests between countries along the road and map out long-term plans and execute its plans in a step by step manner.

The Road will connect the Pacific and Indian Oceans. China will focus on upgrading the China-ASEAN Free Trade Area and extending it to the coastal regions of the Indian Ocean, the Persian Gulf, the Red Sea and the Gulf of Aden. By virtue of connecting the China-Pakistan Economic Corridor, the “Bangladesh-China-India-Myanmar Economic Corridor” and the “Silk Road Economic Belt,” China will build an open, safe and effective maritime road that can facilitate trade, transportation, economic development and the dissemination of culture.

The Road will also make good use of the China-ASEAN Maritime Cooperation Fund and enhance pragmatic maritime cooperation. By prioritizing cooperation in inter-connectivity, the maritime economy, marine environmental protection and disaster prevention and mitigation, China aims to improve the welfare of countries along the route and share the benefits of the Maritime Silk Road.

The Road will also make use of existing bilateral and multilateral marine cooperation mechanisms and frameworks. By making use of the existing and effective marine cooperation platforms, China will improve the area’s marine partnership network, forge closer ties between countries along the route and finally create a cooperation landscape in which marine resources, industries and culture are all reasonably distributed and mutually reinforcing.

The construction of a 21st Century Maritime Silk Road the development of marine partnerships call for the following measures:

First, it will call for better marine connectivity. Infrastructure connectivity is the priority of the 21st Century Maritime Silk Road. Countries need to focus on building key pathways, points and major projects, and China needs to work with countries along the road to build marine infrastructure, improve law enforcement abilities, provide public goods of marine security and guarantee the security of marine pathways. China needs to support the construction of ports, wharves and information networks to ensure the open flow of goods and information. It must also enhance communication on marine cooperation policies to facilitate marine investment and trade.

Sea lane safety is the key to sustaining the development of the 21st Century Maritime Silk Road, while ports are the foundation of sea lane safety. Like posts along the ancient Silk Road, ports along the new Maritime Silk Road will act as “posts on sea” that handle cargo and resupply ships and people. Such “sea posts” also must provide safe and convenient sea lanes for all countries to make use of. These posts can either be built by individual countries or built with the help of China and other countries, or even be leased in other counties. The 21st Century Maritime Silk Road will thus able to cover and drive more countries to create “sea posts.”

Second, it will call for strong cooperation on marine economy and industry. Many countries along the route strategically exploit the ocean, develop their maritime economies and sustain marine development. Strengthening cooperation on marine economics and industry will help push forward modernization and promote the upgrading and optimization of industry. Such cooperation will better integrate China’s economy with those of countries along the route.

Closer cooperation in the marine industry will require domestic industrial restructuring according to market demands, require prioritized cooperation in marine fishery, tourism, desalination and marine renewable resources and require Chinese enterprises in this industry to go global. China encourages enterprises with intellectual property and sophisticated desalination technology, marine renewable resources and marine bio-pharmaceutical technology to invest and build their own businesses in countries along the route.

Relying on existing Economic and Trade Cooperation Zones between China and other countries, as well as marine demonstration zones in Tianjin, Shandong, Zhejiang, Fujian and Guangdong, the government will play a leading role in the initial stages, guide enterprises with mature technologies in iron and steel, shipbuilding, fishery and aq-uaculture to establish production bases and extend industrial chains to countries with rich resources and huge demand.

China needs to work with countries along the route to facilitate regional cooperation, building industrial parks, enhancing investment and cooperation in the marine industry, building marine economic demonstration zones, marine technology parks, economic and trade cooperation zones and marine training bases. Through such industrial cooperation, China will forge an investment cooperation platform in which Chinese enterprises can gain international competitiveness and participate at a higher level of the industrial echelon.

China needs to build a cooperation belt to enhance the marine industry and set up cooperation networks to facilitate marine tourism. A sustainable Maritime Silk Road will not be achieved without the help of port economic zones. As a result, China must develop its port economic zones and free trade zones to provide a platform for the Maritime Silk Road. China will focus on eliminating systematic and mechanistic barriers, lowering market thresholds and facilitating the opening-up of major areas.

Third, it will call for all-round cooperation in marine fields. In recent years, non-traditional security issues such as piracy, maritime terrorism, cross-border crimes and maritime disasters have loomed large. Countries along the route share a common interest in addressing these problems. Naturally, fighting against non-traditional security challenges will become an important part of the Maritime Silk Road. As such, China must promote exchanges and cooperation between countries along the route in the areas of marine technology, environmental protection, marine forecasting and rescue, disaster prevention and the mitigation and climate change.

Putting the “Marine Technology Partnership Plan” into practice. Based on existing marine cooperation centers and observation platforms, China will focus on promoting marine technology cooperation networks and building the China-ASEAN Marine Cooperation Center, the Indonesia and China Center for Ocean and Climate, the China-Thailand Climate and Marine Ecosystem Joint Lab, the China-Pakistan Joint Marine Center, the China-Sri Lanka Marine and Coastal Zone Joint Research Center and other ocean stations.

Building “marine ecological partnerships.” By paying more atten-tion to an ecological civilization, China needs to enhance cooperate with countries along the route to build a green Silk Road that addresses the marine ecological environment and climate change. China must set up an effective dialogue mechanism, map out major projects in which all parties can get involved and make comprehensive plans for regional ecological and environmental protection. China must work more closely with Southeast Asia and South Asia to protect biodiversity, build a cross-border bio-diversity corridor and establish marine conservation areas.

Conducting the regional marine research. By building cooperation networks for marine disaster preparedness, providing marine forecasting products and releasing marine disaster warnings, China will increase marine benefits for relevant countries.

Fourth, it will call for expanding cooperation in marine culture. Marine culture is the foundation of building a 21st Century Maritime Silk Road. When talking about the Silk Road Economic Belt, President Xi has stated that “amity between people holds the key to sound relations between states.” He also highlighted the importance of “common aspirations,” given that the Silk Road will be supported by countries only if it is able to benefit people. China will inherit and pro-mote friendly cooperation along the Maritime Silk Road and develop a proposal with international consensus so that marine cooperation and partnerships will be firmly supported.

The plan will also call on countries to increase marine awareness and achieve common aspirations. China needs to make full use of the geopolitics and culture of Maritime Silk Road to promote exchanges in marine culture, tourism and education to make the Road a key link for friendly exchanges. By “going global” and “going local” at the same time, China needs to carry out exchanges and cooperation in marine culture, in areas such as cultural or art exchanges, archaeological exchanges, marine tourism cooperation, education and training.

China will guide and encourage the community to conduct various cultural exchanges and offer tours and products with distinct Silk Road features. In such a way, China will be able to expand the cultural influence of the Maritime Silk Road, push the Road into the new century and promote general marine cultural diversity.

Conclusion

On June 20, 2014, Premier Li Keqiang spoke at the China-Greece Marine Cooperation Forum, stating, “We stand ready to work with other countries to boost economic growth, deepen international cooperation and promote world peace through developing the ocean, and we strive to build a peaceful, cooperative and harmonious ocean.” China’s proposal to build a 21st Century Maritime Silk Road suits the current era and is characterized by peace, development, cooperation, innovation and opening-up. With the goal of building a harmonious ocean, the proposal rests on opening-up and innovation and aims to achieve “harmony between humans and the ocean, peaceful development, safety and convenience, cooperation and win-win results.” A 21st Century Maritime Silk Road will enhance cooperation between China and other countries, increase mutual trust, create a stable environment for cooperation and bring new opportunities for regional stability and prosperity.

by Liu Cigui
China Institute of International Studies

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Sunday, October 5, 2014

The Bridled protest: Hong Kongers' free will shall not be held hostage to protestors


Pro-democracy protesters flash lights during a rally to protest the violence seen in Mong Kok, in Hong Kong, China, 4 October 2014. - EPA/ALEX HOFFORD

The Bridled protest

Despite the tension in Hong Kong, both sides have exercised tremendous self-restraint, which must be unusual, if not unprecedented, when seen through Western eyes.

THERE has been plenty of restraint by both the protest movement and the authorities in Hong Kong. The threat by some student leaders to storm government buildings did not take place after the midnight deadline on Thursday.

If the international media still expect to see a serious clash between the protesters and the police, then I believe they will be disappointed.

Beijing must surely be aware that the world is watching. They would never want a repeat of the Tiananmen Square incident in 1989 where many protesters, mostly students, were reportedly killed. Until today, no one knows exactly the actual number of casualties.

The Chinese government has also not used harsh or emotive language except to say that the gathering is illegal and the crowd should disperse. The protesters are angry at China’s plan to vet election candidates for the first direct election of the chief executive in 2017.

Beijing had ruled at the end of August that while Hong Kong residents would have a vote, their choice of candidates would be restricted by a committee. The protest began on Sept 22 when student groups launched a week-long boycott of classes.

On Sept 28, Occupy Central and student protests joined forces and took over central Hong Kong in what is now dubbed as the “umbrella revolution”.

Despite the tension, both sides have exercised tremendous self-restraint, which must be unusual, if not unprecedented, when seen through Western eyes.

The protest was orderly, and quite extraordinary, based on the news reports which showed how protesters collected garbage and separated them into recycling bins and how the police held up placards warning of impending tear gas action. And there was even a poignant picture of a policeman helping a protester hit by tear gas.

There are good reasons – the people of  Hong Kong are fully aware that nothing that they demand, at least for now, will be fulfilled immediately. They are practical people but they want their voices to be heard by Beijing.

The people have also accepted the fact that Hong Kong is part of China. The British returned Hong Kong to China in 1997 and nothing is going to change that. The future of Hong Kong is in the hands of China – not the United Kingdom or the United States.

But the locals are also angry at the huge number of mainlanders crowding into tiny Hong Kong. The pressure on the housing, health and education sectors has led to great resentment.

There are plenty of video clips on YouTube posted by Hong Kong people on what they see as the crass and rude behaviour of the less-polished mainlanders, which ranges from eating in the underground train to defecating in the streets to loud chattering. These have led to scuffles between Hong Kong people and mainland tourists and these are well documented.

There has been retaliation, in the apparent clash of cultures, except for the fact that both are ethnically Chinese. One professor appeared on Chinese TV and called the people of Hong Kong names while claiming that they were paying homage to London. He also hammered the Hong Kong people for preferring to speak Cantonese instead of Mandarin.

On the other hand, advertisements have appeared in Hong Kong newspapers, referring to the mainlanders as locusts who hog the resources of Hong Kong.

As far back as January, the South China Morning Post had reported on protesters who marched along Canton Road, a luxury shopping street that is a popular destination for mainland tourists, holding up signs that read “Go Back to China” and “Reclaim Hong Kong”.

Xenophobia seems like an oxymoron because the Hong Kong residents and the mainlanders are all Chinese and belong to the same country.

Ironically, Hong Kong’s retail sector is crying at the missed business opportunities of the Oct 1 China national day. This is when mainlanders flock to Hong Kong for long holidays and, of course, to dine and shop. This time they have stayed away as a result of the protests and it is Hong Kong that is paying the price. Shops have been forced to shut because of the protests and businessmen are blaming the student leaders.

In fact, Beijing does not have to do anything against the protesters. The central government can afford to sit it out because the students will eventually have to go back to classes, the protesters need to report for work, and businesses must go on.

This is Hong Kong after all, where the cost of living is among the highest in the world. Sitting on the road will not last long when there are hefty bills to be paid.

A middle-ground solution to allow both sides to back down without losing face looked possible, but the plan for the students to talk with Chief Secretary Carrie Lam appears to have been scuttled by the clashes in Mongkok.

Hong Kong Chief Executive Leung Chun-ying has said he would not negotiate with the student leaders, nor would he resign.

Now, the students have called off the talks with Lam, claiming that the police had allowed “triad” gangsters to infiltrate their protest camps.

But the talks will have to eventually be held because it is the right thing to do. Any dialogue between them will reflect the genuine desire of both sides to end the impasse. It will also show that Beijing is prepared to hear and respect the voices of the young people in Hong Kong, which is an autonomous territory.

This is an opportunity for the students to put on record that they accept Beijing. The reality is that their anti-communist China slogans, which may be morale-boosting during their protests, won’t change a thing. It is better that these students be practical instead of being too idealistic.

Business Hong Kong will not allow students to lead at the expense of Hong Kong and China, it is as simple as that. The clashes between the students and the traders in Mongkok on Friday are a sign that patience is wearing thin for those who need to earn a living.

Interestingly enough, most of the student leaders in the Tiananmen protest are now growing old in exile in the US, UK and France. Unable to return home, they could never have imagined how Beijing has embraced capitalism and the speed of economic progress as China’s middle class expands.

As academics Chen Dingding and Wang Jianwei of the University of Macau correctly pointed out in an article, “The English word ‘crisis’ in Chinese actually consists of two words: danger and opportunity. A crisis itself is not necessarily a bad thing – it also presents an opportunity to solve the problem.”

I agree. In the case of Hong Kong, it is better that Beijing let Hong Kong grow at its own pace and in its own way. And the people of Hong Kong can protest, but they should not go overboard.

Source: On the beat Wong Chun Wai The Star/Asia News Network

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.
On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.


Hong Kongers' free will shall not be held hostage to protestors

Hong Kong's prosperity and stability are hard-won and should be treasured, while Hong Kongers' free will shall not be held ...

BEIJING, Oct. 4 (Xinhua) -- Hong Kong's prosperity and stability are hard-won and should be treasured, while Hong Kongers' free will shall not be held hostage to those organizers of the Occupy Central movement who have ulterior motives, critics appealed.

Yin Haoliu, a Chinese American freelancer, wrote in an open letter to three initiators of the illegal movement: "Democracy is a step-by-step process that can not be approached in haste, otherwise it will bring about troubles."

"What's wrong with the Communist Party of China which hopes to see a person who loves China and loves Hong Kong elected as Hong Kong's chief executive? Are you willing to choose a chief executive that sells Hong Kong and the whole country?" Yin asked in the letter.

"You should know that on your opposite side are the silent majority... if Hong Kong falls into chaos, you could flee to foreign countries, but how about the ordinary Hong Kongers that are left behind?" he said.

"Christopher Francis Patten said the decision by the Standing Committee of the National People's Congress on Aug. 31 that granted universal suffrage in Hong Kong was false...then was he himself as the governor of Hong Kong elected by the Hong Kong people?" the retired doctor said.

Yin said Hong Kong had tided through numerous difficulties with full support of the Chinese mainland since the Basic Law was put into practice, so the initiators of Occupy Central should treasure the city's current prosperity and stability.

On Friday, the Russian Foreign Ministry said Moscow hopes that stability will resume as soon as possible in Hong Kong.

"Events in Hong Kong belong to China's internal affairs. Russia hopes the stability of the Hong Kong Special Administrative Region (HKSAR) would be resumed as soon as possible," the ministry's information and press department told Xinhua.

Singapore's Foreign Minister Kasiviswanathan Shanmugam said in an interview with Lianhe Zaobao that many reports on Hong Kong made by the Western media were untrue and biased to China.

They intentionally ignored a fact that Hong Kong had never implemented a democratic system under the British rule for some 150 years, he said, adding that Beijing's plan has granted Hong Kong much more democratic space than what Hong Kongers got in the times of British-ruled Hong Kong.

"Everyone shall be clear about one point, that is, what the central government did conforms with Hong Kong's Basic Law," the foreign minister said.

He said Hong Kong is deeply dependent on the Mainland, including employment and livelihood.

Even though a little anti-Mainland sentiment appeared in Hong Kong, the central government is still generous to Hong Kong, he added.

Jeff Bader, who ran Obama's first term White House East Asia policy, told the Washington Post that for Beijing, there is no room for compromise on issues such as Chinese stability and the leadership of the Communist Party of China.

He also mentioned that millions of Hong Kongers will not support or tolerate the protest that grinds the city to halt for days.

The negative impact of Occupy Central includes a bit of a brain drain, Bader predicted.

Hong Kong has been partially paralysed by the large-scale protests that started on Sept. 28.

A large number of Occupy protesters have taken over major streets in Mong Kok, one of the city's most bustling areas, for at least four days, which has seriously affected businesses of local shops, restaurants and vendors, and forced schools and banks to be closed.

Friday afternoon, some anti-Occupy people clashed with Occupy protesters in Mong Kok and Causeway Bay, Hong Kong's two major commercial areas. Several people were injured during the clashes.

Hong Kong Chief Executive Leung Chun-ying gave an urgent TV broadcast Friday evening, calling on all citizens, no matter what attitude they may have toward the Occupy movement, to keep calm and not to use violence or disrupt public order under any circumstances.

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Hong Kong CE calls for peace after clashes

HONG KONG, Oct. 3 (Xinhua) -- Hong Kong's Chief Executive Leung Chun-ying gave an urgent TV broadcast on Friday evening calling for peace after Occupy protesters clashed with anti-Occupy people in Mong Kok and Causeway Bay, Hong Kong's two major commercial areas.

Leung called on all citizens, no matter what attitude they have toward the Occupy, they have to keep calm, and not use violence or disrupt order under any situation. Full story

Chinese public voice opposition againt HK Occupy Central

BEIJING, Oct. 4 (Xinhua) -- Chinese people from all walks of life have voiced their strong denouncement and opposition against the illegal gatherings of the Occupy Central movement in Hong Kong over these days.

The Occupy Central movement has seriously affected the social order in Hong Kong and runs counter to the rule of law, said Beijing citizen Zhao Qing. Full story.


Firmly safeguard rule of law in HK: People's Daily

BEIJING, Oct. 3 -- Democracy and the rule of law are interdependent, and a democracy without the rul[Read it]

Friday, October 3, 2014

Malaysia's petrol price hike when global crude oil prices declined to 3 years low, a reflection of poor financial management!



Timing of latest fuel subsidy cut a surprise


PETALING JAYA - The latest round of fuel subsidy rationalisation came as a surprise to researchers and analysts who, nevertheless, are positive on the implications of the move, which could translate into savings of an estimated RM1 billion for the government.

Effective today, retail prices of RON95 petrol and diesel are up 20 sen each to RM2.30 per litre and RM2.20 per litre, respectively. This translates into a 9.5% increase for RON95 and 10% for diesel.

"We estimate that this fuel subsidy cut will save the government around RM1.1 billion in 2014, thus helping to achieve fiscal deficit target of 3% by 2015 and a balanced budget by 2020," AllianceDBS Research economist Manokaran Mottain said in a note today.

Currently, the market price for RON95 is RM2.58 per litre and for diesel RM2.52 a litre.

Manokaran said the move to cut the fuel subsidy further came as a surprise ahead of the tabling of Budget 2015 on Oct 10 and amid the recent decline in global crude oil prices.

"Following the recent announcement of a delay in the introduction of a multi-tiered mechanism for fuel, we had expected something like this to come on Budget Day," he said.


Manokaran said the reduction in fuel subsidy was necessary as the government had committed to bringing down the budget deficit to gross domestic product ratio from an estimated 3.5% this year to 3% in 2015, and to achieve a balanced budget by 2020.

However, in light of the latest fuel subsidy cut, Manokaran is now expecting a delay in the announcement of a multi-tiered pricing mechanism.

"We maintain our view that the current blanket subsidy mechanism has to be changed to a multi-tiered subsidy structure based on household income level.

"This is to ensure that subsidies are only channelled to the lower-income group. We hope that the government will have strong willpower to initiate the fuel subsidy reforms soon in order to ensure the economy is more competitive," he said.

Manokaran expects inflation to spike again in the last quarter of this year following the hike in fuel prices. "We maintain our view that 2014 full-year inflation will be 3.5% and inflation to hit 4% in 2015 on the back of the Goods and Services Tax implementation," he said.

Meanwhile, HongLeong Investment Bank Research said that with the 20 sen fuel price increase, it sees no rush for the government to implement the multi-tiered subsidy scheme, which has high complexity in implementation.

"In line with the latest comments by the Ministry of Domestic Trade, Cooperatives and Consumerism, we now expect the new fuel scheme to be rolled out in early 2015," its economist Sia Ket Ee said.

Coupled with the recent weakening of crude oil prices, he said, the government's fuel subsidy per litre is now as low as 28 sen to 32 sen per litre.

"As we expect crude oil prices to remain weak in the near term, the government's subsidy bill is expected to be well contained," Sia said.

He said savings from the subsidy cuts will likely be channelled to other economic services and social spending, expecting an additional RM150 in BR1M payment for 2015, or an extra RM1.2 billion.

The BR1M payout announced in Budget 2014 was RM650 for households and RM300 for singles. A BR1M payment of RM450 was also given to households with a monthly income of between RM3,000 and RM4,000.

RHB Research said the hike in fuel prices will likely hurt consumer and business spending somewhat but it will likely be manageable.


It expects inflation pressure to hold up in the fourth quarter following the fuel prices hike today, which will spill-over into other end-product and service prices gradually.

"Given that the weights for petrol and diesel account for about 7.5% and 0.2% respectively of the Consumer Price Index, the hikes in retail petrol and diesel prices are expected to add 0.7 percentage point to the inflation rate in October.

"However, the impact on inflation will likely be more muted due to the higher base effect in the 4Q of 2013," it said.

In light of the fuel price hike, RHB Research now expects inflation to come in at the higher end of its forecast of 3% to 3.4% in 2014, compared with 2.1% in 2013.

While inflation is expected to hold up in the fourth quarter due to the higher fuel prices, it opined that the country will likely experience a more moderate pace of economic growth in the second half of this year. -Sundaily

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Thursday, October 2, 2014

Modern-day living poses threat to finance, four steps to avoid

Four steps to avoid becoming a burden to your children 


WHEN we were young, people were very careful with their money. Frugality was the order of the day as all available resources was channelled towards just surviving.

Today, our First World problems sound like this: “Should I get the iPhone 5s or wait for the iPhone 6? Such a dilemma!”

I do think that our modern-day living poses a serious threat to our finances. If we do not do something, we may be heading for a personal financial crisis.

Here are four reasons why:

1. LIVING IN EXCESS

Perhaps it is a rejection of our parents’ frugality that we have the need for many things. We are likely to have more than one holiday a year, many expired goods in our pantry, 10 pairs of shoes and a fancier car than our parents.  

2. NO FEAR FOR THE FUTURE

We grew up in a time of plenty with no real threat of war. So there is no need to have "storage" for future calamity. This abundance mentality has allowed people to throw caution to the wind and be totally comfortable spending every sen they have or even what they don’t have.

 3. A RELIANCE ON OTHER'S RESOURCES

There is the safety net of FAMA (father, mother) who will rescue their distressed adult children. How long can FAMA sustain us before their lack of funds become our problem? Also, while EPF is a good retirement vehicle, perhaps it may not be enough to fund your cost of living over the long haul.

4. PRESENT WANTS OVER FUTURE NEEDS

In the 1950s, the lifespan was only a few months after retiring at 55. Now, people are living two decades longer but have not realised the implication of this. They are "enjoying" themselves too much rather than thinking about the future.

If we don ’t correct these four grave financial mistakes, the persons we are today will grow old to become poor tomorrow, dependent and a burden to our children and society. It won’t be anyone’s fault but ours.

Let us plan for the future, so that we will not be woefully unprepared for it.

Contributed by by Amelia Hong

The writer can be contacted at info@successconcepts.biz

Tuesday, September 30, 2014

The keys to China's success

  Female Honor Guards train for National Day celebration Video: http://t.cn/RhmCK8o
The institutional system and decision-making capabilities of democratic centralism have proven to be the country's advantage

This year marks the 65th anniversary of the founding of the People's Republic of China, the 60th anniversary of the establishment of people's congress system and the 65th anniversary of the establishment of the Chinese People's Political Consultative Conference. In the past 65 years China has developed rapidly and has made great achievements. Democratic centralism is the core mechanism of the China model, the key to the China miracle, and China's advantage compared with other major developing countries.

Special coverage: People's Republic Turns 65

China is still a developing country, and it lags behind the developed countries in many aspects. But it would be wrong to always attribute the developed countries' achievements to their democratic system. It's also wrong to deny China's success because of some partial setbacks or mistakes and to blame these on China's democratic system.

Democratic centralism is an institutional system as well as a decision-making model. Democratic centralism is an organization principle of the governing Communist Party of China, as well as national organizations, which links the CPC and the national mechanism based on the people's congress system.

Under democratic centralism, the decision-making process is first democratic discussion and then consensus on opinions on a democratic basis, which guarantees the decision-making process responds to public opinion to the greatest extent.

Currently there are two major political systems in the world: democratic centralism and representative democracy. If we want to make a comparison between the two systems, we should first make sure the premise of "comparability" holds. In other words, China should be compared with those developing countries that also have a long history, huge population and suffered a long time as a colony or semi-colony.

We can divide all the 12 countries with populations of more than 100 million into three groups. The first contains developed countries such as the United States and Japan, whose development is not due to representative democracy, but freedom of speech, rule of law, a market economy and exploitation of other countries.

The second group contains countries that have turned to representative democracy such as Russia. In the 1990s, the former Soviet Union fell apart and terrorism was widespread. The public called for Vladimir Putin's "controllable democracy", which has enabled Russia to revive.

The third group contains those developing countries that were colonized for a long time, such as Bangladesh, Brazil, China, India, Indonesia and Pakistan.

Representative democracy is the bottleneck for most of these countries' development and their people's welfare because of strong social forces and weak national power. The political organizations and family forces behind representative democracy make local social forces in these countries ever stronger, while national power is often too weak to turn national will into reality in this political system.

Some Western people compare India with China and expect India, the largest democracy according to the West's definition, to surpass China someday because they believe that representative democracy is the biggest advantage of India.

Yet in the Human Development Index, China has risen from the rank of 101 in 2001 to the rank of 91 in 2014, while India has dropped from 122 in 2001 to 135 in 2014. In the Poverty Population Index, 11.8 percent of China's population is below the international poverty line, while the percentage of India is 32.68. In the Corruption Perceptions Index, China ranks 80th while India ranks 96th. In the Ease of Business Index, China ranks 90th while India ranks 134th. In 2013, China's per capita GDP was $6,629, which is more than four times the $1,592 of India. The gap of per capita GDP between China and India is larger than two decades ago.

Why has the gap between China and India become larger? India is a democratic society but still has some feudal legacies, and the unfairness under feudalism can hardly accelerate market economy development. As to its "superior" political system, Indian-American political commentator Fareed Zakaria describes it as "bandit democracy". That means, a candidate who committed a crime yesterday may be elected today. India has about 2,000 parties. The country's high degree of fragmentation means it fails to propel public policies that benefit its citizens. The representative democracy of India is fragmented democracy that lacks authoritative policy execution.

Compared with the major developing countries that practice representative democracy, China's centralized democracy guarantees freedom, autonomy, a market economy and also authoritative governmental organizations. China has a lead in governance compared with other major developing countries mainly because of democratic centralism.

Democratic centralism has gone through the first stage during the revolutionary period, the second stage during the first three decades after the founding of New China, and the third stage during the three decades after reform and opening-up. From history and reality we can clearly see the advantages of this political system.

By Yang Guangbin (China Daily)/Asia News Network
The author is a professor of political studies with Renmin University of China.

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17th Asia Games 2014 Medal Tally - 30/9/14

RankCountryGoldSilverBronzeTotal
1China1207658254
2Korea505359162
3Japan375054141
4Kazakhstan15162455
5Iran12111033
6DPR Korea8101129
7Qatar80311
8Chinese Taipei881430
9Thailand741425
10India683145
11Uzbekistan551323
12Hong Kong462030
13Mongolia441018
14Malaysia39921
15Bahrain3519
16Indonesia34714
17Myanmar2103
18Vietnam192030
19Singapore14712
20Kuwait1326
21Saudi Arabia1102
22Tajikistan1102
23Pakistan1012
24UAE1012
25Macau0303
26Kyrgyzstan0224
27Philippines0224
28Turkmenistan0123
29Laos0112
30Bangladesh0101
31Lebanon0101
32Iraq0022
33Sri Lanka0011