China advises ASEAN to be independent

Don't be bystanders or tools of major powers, says Beijing

China has urged members of the Association of Southeast Asian Nations not to be a bystander or "a tool of major powers" to cope with the new challenges in the current global political and economic atmosphere.

"ASEAN should exercise its independent judgment to move this region forward. If ASEAN takes sides, it would lose its relevance," Vice-Minister of Foreign Affairs Fu Ying told The Nation in an exclusive interview over the weekend.

"ASEAN has an important role to play with its tried-and-true ASEAN Way, as major powers are shaping their new relations in the region."

She said relations with ASEAN countries are of "unquestionable priority" for China. China will continue to support ASEAN's "centrality" in East Asian cooperation, she said.

Fu was in Bangkok over the weekend to meet Thailand's Foreign Affairs Permanent Secretary Sihasak Phuangketkeow. In July, Thailand is to take over the role of ASEAN's coordinator with China for the next three years.

Since the dialogue partnership was established in the early 1990s, ASEAN-China relations have enjoyed robust development, she said.

"We have also encountered a lot of challenges. Yet, rather than hurting our relations, these challenges were turned into opportunities to reinforce our relations," she said.

Asked about the United States' decision to "rebalance" its forces in Asia and the Pacific, Fu said: "China has no problem accepting the US presence and its positive influence in the Asia Pacific. We welcome a constructive US role in regional affairs."

She noted, however, that there is growing concern from media and academics in China over the heavy US emphasis on security in the region.

"I've noticed that the same concern has also been heard in other Asian countries. Some say China is the 'elephant in the room'. Some others worry about a possible return to the Cold War," she said.

"As I see it, maybe it's still too early to draw conclusions."

Asked whether Beijing is concerned about Washington's possible "containment policy" against China, she said: "The US has loudly denied any intention to contain China. We will just take them at their word."

She said she did not believe any country could "contain" another country in the current global environment.

"How can anyone contain 1.3 billion people of China from building better lives for themselves?" she asked.

Fu said China's industrialization is "only halfway" complete. Its huge population means that China's per capita GDP would remain low for a long time to come.

"We are still a developing country working hard to address the imbalances and the uncoordinated and unsustainable aspects of the economy," she said.

Regarding the South China Sea disputes, the vice-minister reiterated that China wants to handle the disputes peacefully through direct negotiations between countries concerned.

"At the same time, we must protect China's sovereignty and maritime rights and interests. We remain committed to working with countries concerned to reach a farsighted and wise solution," she added.

China and ASEAN countries signed the Declaration of Conduct of Parties in the South China Sea in 2002. Central to the DOC is a commitment by all parties to "exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability".

The vice-minister said China and ASEAN are also involved in ongoing discussions on the formulation of a Code of Conduct. "This shows that safeguarding stability in the region and managing disputes appropriately remains the mainstream thinking in our region."

She added: "We sincerely hope that China and ASEAN countries will keep a cool head on this issue and exercise restraint through action, and that all parties will refrain from undermining the atmosphere for peace and stability in the region."

She pointed out that more than 80 percent of China's trade goes through the sea lanes in South China Sea.

"Safety of the navigation routes is of utmost importance for China. We will do all we can to ensure peace in this part of the world," Fu said.

By Suthichai Yoon  (China Daily)  
Suthichai Yoon is editor-in-chief of The Nation Group in Bangkok
The Star/Asia News Network

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 China will not allow anyone to take away sovereignty

BEIJING, May 10 (Xinhua) -- The PLA Daily, the official newspaper of the People's Liberation Army (PLA) of China, on Thursday warned the Philippines about the Huangyan Island incident, saying the country's armed forces will not allow anyone to take the sovereignty of the island away from China.

"We want to say that anyone's attempt to take away China's sovereignty over Huangyan Island will not be allowed by the Chinese government, people and armed forces," the newspaper said in a signed article titled "Don't Attempt to Take Away Half an Inch of China's Territory."

Instead, it is wise to give up such attempts and abide by international rules to gain the forgiveness of the Chinese people and the pardon of the international community.

China has exercised restraint on the Huangyan Island incident. "If one mistakes China's kindness for weakness and regards China as a 'paper dragon' as instigated by some onlookers, he is terribly wrong," the article added.

China had suffered too much humiliation as its sovereignty was encroached and territory carved up when the country was poor and weak.

China now pursues an independent foreign policy of peace.

It will not bully the weak by being strong, nor blindly tolerate unreasonable tricks played by others, especially on matters concerning territorial integrity, national dignity and social stability.

It is obvious that the Philippine side has not realized that it is making serious mistakes, although one month has passed since the beginning of the incident, said the article.

Instead, the Philippine side is stepping up efforts to escalate tensions, has continued to send government vessels to the Huangyan Island lagoon and has repeatedly made erroneous remarks which have misled the Philippine public and the international community and provoked public feelings, thus severely damaging bilateral relations.

The situation is not optimistic, the article said.

China's sovereignty over the island is based on both historical and legal grounds. No matter what tricks the Philippines may play, the fact that Huangyan Island belongs to China will never change, the article said.

Even Philippine maps published in 1981, 1984 and 2006, which indicate that Huangyan Island is outside of the Philippines' territory, show how ridiculous the Philippine side is when it attempts to claim sovereignty over the island.

Moreover, the repeated tricks by the Philippines have failed to gain support from its own people, the international community and even its allies. It is quite likely the Philippine side will drink as it brewed, said the article.

China issues warnings as Philippines tensions rise

   by Ananth Krishnan

APA placard with drawing of a Philippine warship is displayed during a protest at the Philippines Consulate in Hong Kong on Friday. The Philippine government used this second hand warship from the American aid, its naval personnel had boarded the Chinese fishing boats, inspected their equipment and catch last month.

China has issued a safety advisory to its citizens in the Philippines and suspended travel to the country a day ahead of a large planned demonstration against China over rising tensions in the South China Sea.

The Chinese embassy in Manila in a notice warned that “massive anti-China demonstrations” were scheduled to take place on Friday, advising Chinese nationals to avoid going out and to “keep a low profile”.

The warning came as vessels from both countries remained locked in a stand-off near the disputed Scarborough Shoal or Huangyan Island in the South China Sea, which both sides claim.

Chinese State-run media outlets on Thursday continued issuing stern warnings to the Philippines, not ruling out the use of force. The Foreign Ministry, however, appeared to strike a more moderate tone and suggested a way out through a diplomatic solution, saying it “approved” of recent remarks by officials in the Philippines “to resume diplomatic contact with the Chinese embassy”.

“China remains committed to solving the situation through diplomatic consultation and negotiation,” spokesperson Hong Lei told reporters on Thursday, calling on the Philippines to “come back to the right track of handling the matter”.

He did also hit out at the Philippines government for “encouraging people both home and abroad to launch demonstrations against China”. “We urge the Philippines side to respect China’s sovereignty on the issue of Huangyan Island and not to take actions that will complicate and amplify the situation,” Mr. Hong said.

Reflecting the rising tensions, Chinese travel agencies said on Thursday they had suspended planned trips to the Philippines following an order from central authorities. Ctrip, a popular travel portal, said it suspended travel because “trips to the Philippines have become potential safety risks”, the official China Daily reported.

The newspaper in an editorial warned that while China did not seek a military conflict, the use of arms was not off the table. “No matter how willing we are to discuss the issue, the current Philippine leadership is intent on pressing us into a corner where there is no other option left but the use of arms,” the editorial said.

“We are faithful to our commitment to being a responsible member of the international community, and we pursue peaceful co-existence. But no international law allows a country's sovereignty to be infringed upon, and a responsible nation does not try to seize territory that does not belong to it.”

The People’s Liberation Army (PLA) daily struck a harder tone, saying that “anyone’s attempt to take away China’s sovereignty over Huangyan Island will not be allowed by the Chinese government, people and armed forces”, in a commentary headlined “Don’t attempt to take away half an inch of China’s territory”.

“If one mistakes China’s kindness for weakness and regards China as a ‘paper dragon’ as instigated by some onlookers, he is terribly wrong,” the newspaper said.

Suggesting the stand-off may yet be resolved peacefully, China on Thursday also appeared to respond positively to a Philippines-based mining company’s proposal for joint drilling with the China National Offshore Oil Corporation. Officials said Beijing was willing to talk with the Philippines government over joint development.

The South China Sea, which is disputed by China and at least ten other countries, is estimated to have as much as one-third of China's oil and gas resources and key sea lanes run through its disputed waters.

China’s first deep-water drilling rig in the South China Sea started operations on Wednesday, with calls from officials to speed up drilling projects. Feng Fei, head of the industry department of the Development Research Centre, the official think-tank of the State Council or Cabinet, said more than thousand oil wells had already been sunk by other countries. “China drilling in the South China Sea is of deep significance, and ensures our energy security by reducing dependence on foreign oil,” he said.

Wu Shicun, head of the National Institute for South China Sea Studies, added that joint development of resources could help address conflicts. “Against a backdrop of some countries not responding positively toward China’s proposal of joint development, it is of supreme importance to finally solving sovereignty disputes,” he said.

“Setting aside disputes and embarking on joint development is the most effective way to solve the issue.’’

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China urges Philippines to stop further harming bilateral relations

BEIJING, May 10 (Xinhuanet) -- The spokesman of China’s Ministry of Foreign Affairs Hong Lei condemned Philippines for inciting its people going on to streets for demonstrations against China. Hong says the incident has triggered severe concerns among Chinese people.

He also says China hopes Philippines to stop further harming the bilateral relations. Hong reiterated China’s stance on the dispute and urged Philippines not to taken any actions that may harm the relations between the two countries.  Full story

Commentary: Never test China's will to defend its own sovereignty

BEIJING, May 9 (Xinhua) -- For nearly a month, Manila has not only turned a deaf ear to Beijing's position on resolving the dispute over China's Huangyan Island through diplomacy, but made repeated provocative moves to heighten the tension, severely infringing China's sovereignty in the process.

It is widely accepted Huangyan Island has been an integral part of China since ancient times, both on a historical and a legal basis. The surrounding waters are China's traditional fishing grounds and Chinese fishmen have fished there for generations.  Full story

China is prepared for escalation of Huangyan Island incident

BEIJING, May 8 (Xinhua) -- China's Vice Foreign Minister Fu Ying said China is not optimistic about the situation concerning Huangyan Island, and the country is fully prepared to respond to anything the Philippine side does to escalate the situation.

Fu made the remarks when meeting with Alex Chua, Charge D'affaires of the Philippine Embassy in China, on Monday, China's Foreign Ministry said Tuesday in a press release.  Full story

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China says it can’t use forex reserves to save Europe

Tweet

BEIJING: Europe cannot expect China to use a big portion of its US$3.2 trillion foreign exchange reserves to rescue indebted nations, a top Chinese foreign ministry official said, Beijing's strongest rebuttal yet to suggestions it should bail out the eurozone.

Vice-Foreign Minister Fu Ying said at a forum the argument that China should rescue Europe did not stand and that Europeans might have misunderstood how China managed its reserves.

She did not explicitly rule out using part of China's reserves for more targeted measures, but implied China was not going to ride in with a big chunk of its “savings” and bail out crisis-stricken Europe.

“We cannot use this money domestically to alleviate poverty,” Fu said. “We also can't take this money abroad for development support.”

Economists estimate that Beijing has already invested a fifth of its reserves in euro assets.

While the size of China's reserves is the largest in the world, analysts say two-thirds of that is locked up in dollar assets that cannot be sold, giving Beijing a more modest portion of about US$470bil to invest each year.

Fu said China's reserves were akin to the country's savings and that the 1997 Asian financial crisis taught Beijing how important reserves were to the nation.

China's foreign ministry does not exert direct influence over how the country invests its foreign exchange reserves but can comment on that policy.

Fu said Beijing's refusal to use its reserves to ease Europe's debt woes did not count as a lack of support for the region, which was also China's biggest export market.

“I say the idea that China should save Europe does not stand. What I mean is the money cannot be used this way,” Fu said. “China has never been absent from any international efforts to help Europe. We have always been an active participant, and a healthy particpant as well.”

As the owner of the world's largest foreign exchange reserves, China is one of the few governments with pockets deep enough to buy a sizeable portion of European government debt and help pull the region from its economic malaise. - Reuters

China says it can't use forex reserves to rescue Europe

02-Dec-11, 8:41 PM | Agence France Presse

BEIJING - China's vice foreign minister on Friday ruled out using the nation's vast foreign exchange reserves to bail out Europe, as the debt-laden continent tries to stave off the risk of a massive default.

"The argument that China should rescue Europe does not stand," vice foreign minister Fu Ying told an EU-China forum.

"We cannot use foreign reserves for... rescuing foreign countries. We need to ensure safety, liquidity and profit for the foreign reserves."

European leaders have lobbied China, the world's second largest economy, to help struggling eurozone countries by contributing to a bailout fund, but so far Beijing has not made a firm commitment.

The Asian powerhouse, which has the world's largest foreign exchange reserves at $3.2017 trillion, has said it is keen to seek more investment opportunities in Europe, but has held back from agreeing to contribute to the fund.

Fu pointed to China's purchase of European bonds, increased imports and expanded investment in the continent, which would "create jobs and restore growth".

But she insisted China was not seeking to use its considerable financial clout to exert power over the continent.

"China is no old-fashioned power or empire. China has no intention of seeking power through financial means," she said.

China's commerce minister Chen Deming said last month Beijing would lead an investment delegation to Europe next year, and the head of China's sovereign wealth fund has said it is keen to invest in European infrastructure.

But some in Europe have expressed concern about the potential cost of accepting Beijing's help.

In October, Francois Hollande, the Socialist candidate for next year's French presidential elections, asked if China was really "riding to the rescue of the euro... without making any demands in return?"

Fu also reiterated China's confidence in Europe, just as European leaders prepare to meet at a summit next week that some have billed as their last chance to restore the credibility of eurozone economic governance.

"We have reason to believe that Europe has the wisdom, capacity and resources to make it this time by accelerating adjustment and reform," she said.

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