Dan Collins CMR Jim Rogers is probably better now known in China now than even the U.S. In this interview on Chinese television he expects Gold prices will struggle, but then skyrocket. He tells the truth that the U.S. government is lying about inflation and
D.Collins CMR Argentina has been under attack by New York Vulture funds for close to a decade. The New York Capital funds have been able to close Argentina out from global capital markets. In a shocking turn of events, Argentina is now walking away from
David Chazan, The Telegraph The head of France’s business federation has called for an end to the 75pc tax rate and to the 35-hour working week, saying the country’s economy is “catastrophic”. Pierre Gattaz, president of the Medef – France’s equivalent of the CBI –
Americans may have finally had enough. Protesters around the country are fighting back against having illegal aliens dumped into their towns and cities. Second revolution flags are going up everywhere across the country. A protester in a small town in Michigan, Rod Diener, 53, said
Hedge Fund Assets Hit $2.8 Trillion Jul 21 2014 | 10:55am ET Another quarter, another all-time high for hedge fund assets. The global hedge fund industry took in $30.5 billion in new money in the second quarter, pushing its asset base to a new record
Hedge Funds Slash Long Oil Holdings Jul 21 2014 | 10:53am ET Hedge funds exited bullish bets on oil en masse earlier this month. Hedge funds and other money managers cut their net-long positions in Brent crude by nearly 25% in the week ended July
Yahoo Shanghai has shut a factory of US food producer OSI Group for selling out- of-date meat to restaurant giants including McDonald’s and KFC, authorities said Monday, in China’s latest food safety scandal. A Shanghai television channel, which reported the original allegations, said that workers
WTC The United States and Japan are in the early stages of integrating their space programs to prevent China from stalking their satellites, according to a Bloomberg Businessweek article. The Chinese were probably testing a mobile rocket booster for an antisatellite weapon last May under
Guo Meimei Arrested By Beijing Police for Sports Gambling, Rumors That She Owes 260 Million RMB. According to a tip, Guo Meimei has been arrested by Beijing Police for sports gambling! Guo Meimei loves gambling and has previously shown off gambling large sums in Macau.
Jim Rogers is probably better now known in China now than even the U.S.
In this interview on Chinese television he expects Gold prices will
struggle, but then skyrocket. He tells the truth that the U.S. government
is lying about inflation and tells the audience, to NEVER sell your
RMB. The Japanese Yen went up 700-800% and still run trade surpluses
against the U.S. It will be the same for China. What is telling is that
the Chinese presenter, like most Chinese I know still don’t understand
that a stronger currency equals national strength. Factories in China
can no longer find workers, you need to let the RMB rise and balance the
economy with more service industries while at the same time making all
of the imported commodities cheaper. It is the holding down of the RMB
that has led to over investment in factories and the resulting pollution
while at the same time stunting the service sector.
What U.S. viewers may find interesting is the reaction of the Chinese
presenter when she asks” Why doesn’t the U.S. bring back manufacturing to
the country so that people have jobs?” She looks dumbfounded and can’t
understand why a country would actively unemploy its working class.
Argentina has been under attack by New York Vulture
funds for close to a decade. The New York Capital funds
have been able to close Argentina out from global capital
markets. In a shocking turn of events, Argentina is now
walking away from global capital markets and turning to China.
Rail lines and hydroelectric plants will now be funded by
China not the Western backed agencies such as the World
Bank or IMF. The countries have also signed an $11 billion
dollar swap agreement as trade between the countries will
be converted to RMB.
By Eliana Raszewski
(Reuters) – Argentina signed deals on Friday to borrow $7.5
billion from China at a time when the Latin American country
cannot tap global capital markets because of disputes over
Among the deals signed, Argentine President Cristina Fernandez
and her Chinese counterpart, Xi Jinping, agreed on a loan for
$4.7 billion from the China Development Bank for the construction
of two hydroelectric dams in Patagonia. China Gezhouba Group Corp
and Argentina’s Electroingenieria SA won contracts last year to
build the two dams, which will have a combined generating
capacity of 1,740 megawatts.
The Chinese bank also granted a $2.1 billion loan to help finance a
long-delayed railway project that would make it more efficient to
transport grains from Argentina’s agricultural plains to its ports.
“It’s a day we can define as foundational in the relations between
our two countries,” Fernandez said after signing the deals.
China is Argentina’s second-largest trading partner after neighbor
Brazil. In 2013, Argentina’s trade deficit with the Asian country
increased more than 20 percent to $5.8 billion.
Argentina is the world’s third-largest exporter of soy and corn.
China is the main buyer of its soybeans.
Xi, China’s first president to visit Latin America’s third-largest
economy in a decade, arrived in the capital city of Buenos Aires on
Friday after participating in a summit of emerging economies of the
BRICS nations – Brazil, Russia, India, China and South Africa – in
Fortaleza, Brazil, earlier this week.
He also signed a three-year agreement for an $11 billion swap
operation between the central banks of Argentina and China that
will let the Latin American country pay for Chinese imports with
the yuan currency.
“The exchange will mainly serve to facilitate investments in the
currency of the country providing the funds and to strengthen the
level of international reserves,” the Argentine central bank said
in a statement.
Fernandez said the deal between the two central banks could offer
“stability in exchange rates at the moment we are, as a country,
suffering speculative attacks by vulture funds.”
David Chazan, The Telegraph
The head of France’s business federation has called for an end to the
75pc tax rate and to the 35-hour working week, saying the country’s
economy is “catastrophic”.
Pierre Gattaz, president of the Medef – France’s equivalent of the CBI –
said the 75pc tax that companies are forced to pay on employees’ annual
salaries above €100,000 (£79,000) was damaging France’s competitiveness.
“It’s a symbol which, like the 35 hours, has gone around the planet, and
it’s destructive. I never meet a single Chinese or American who doesn’t
bring it up,” said Mr Gattaz. “The economic situation of the country is
catastrophic … if France was a company, it would be going bankrupt.
Americans may have finally had enough. Protesters around the country
are fighting back against having illegal aliens dumped into their
towns and cities. Second revolution flags are going up everywhere
across the country. A protester in a small town in Michigan, Rod
Diener, 53, said it best when asked about the hundreds of illegals
dumped into his small Michigan town which is near bankruptcy with
bordered up factories all across town. ” I don’t know why they
chose us, we have nothing.”
As the richest city in the country, the government capital , continues
to dump illegal children in cities across the country, the point that
is missed by the mainstream media is that it is not the Federal government
that will foot the bill but the local communities which will have to pay.
Everything Americans need in daily life, schools, police, fire departments
are paid for by local taxes. The Federal government takes 35% of the top
for a new class of Apartichuck government employees while the average
American is hung out to dry.
Finally…today, one governor has stood up and taking responsibility
deploying the national guard of Texas to the border. All southern
states will join them if a Texas vs D.C. clash escalates.
‘OUR CITIZENS ARE UNDER SIEGE’: PERRY SENDS NATIONAL GUARD TO BORDER
Monday, Texas Gov. Rick Perry (R) announced he is deploying 1,000 Texas
National Guard to the U.S. border with Mexico, saying he can not idly
sit by while “our citizens are under siege.”
Pointing out the tens of thousands pf unaccompanied minors only make up
roughly 20 percent of those being apprehended illegally crossing the border,
Perry said he can no longer wait for the president to act as gang members
and drug cartels flood into Texas, causing crime to skyrocket. Perry pointed
out Texas tax payers can not bear the expense of processing and housing the
surge of illegal immigration caused by President Obama’s 2012 executive action
“Dream Act” which has given people in Central America the idea children will
be allowed to stay once in the U.S.
Perry has repeatedly called on President Obama to visit the border, calling
his refusal Obama’s “Katrina,” moment.
Hedge Fund Assets Hit $2.8 Trillion
Jul 21 2014 | 10:55am ET
Another quarter, another all-time high for hedge fund assets.
The global hedge fund industry took in $30.5 billion in new money
in the second quarter, pushing its asset base to a new record of
$2.8 trillion, according to Hedge Fund Research.
The second quarter’s inflow is the eighth straight for the industry,
and topped the first quarter’s $26.3 billion. In fact, last quarter’s
was the largest infusion of new capital into hedge funds since the
first quarter of 2011.
Hedge Funds Slash Long Oil Holdings
Jul 21 2014 | 10:53am ET
Hedge funds exited bullish bets on oil en masse earlier this
month. Hedge funds and other money managers cut their net-long
positions in Brent crude by nearly 25% in the week ended July
15, the IntercontinentalExchange said. The move comes as oil
prices hit a three-month low, and increase the reduction in
bullish bets to nearly 40% since last June.
Speculators also exited nearly $6 billion in long oil bets on
the New York Mercantile Exchange last week, capping the largest
four-week reduction by hedge funds and others in the exchange’s
Shanghai has shut a factory of US food producer OSI Group for selling out-
of-date meat to restaurant giants including McDonald’s and KFC, authorities
said Monday, in China’s latest food safety scandal.
A Shanghai television channel, which reported the original allegations, said
that workers at the plant mixed expired meat with the fresh product and
deliberately misled quality inspectors from McDonald’s.
Television footage showed workers in white suits picking up meat and hamburger
patties from the floor before putting them back into processing machinery,
and one employee handling out-of-date beef and calling it “stinky meat”.
The United States and Japan are in the early stages of integrating their
space programs to prevent China from stalking their satellites, according
to a Bloomberg Businessweek article.
The Chinese were probably testing a mobile rocket booster for an
antisatellite weapon last May under the name of science space mission,
said Brian Weeden, a retired US Air Force officer. As Weeden described,
the weapon could reach targets in geostationary orbit about 22,236 miles
above the equator.
The range is the stomping grounds of expensive US spacecraft that monitor
battlefield movements, detect heat from the early stages of missile launches,
and help orchestrate drone fleets, making any activity there worrisome to
Washington. China has launched at least six antisatellite missile tests
since the destruction of a defunct Chinese weather satellite in 2007.
American and Japanese analysts say China has the most aggressive
satellite attack program in the world.
In addition, Lance Gatling, president of Nexial Research, an aerospace
consultant in Tokyo, said that China has studied ground-based lasers that
could take down a satellite’s solar panels and satellites equipped with
grappling arms that could co-orbit and then disable expensive US hardware.
Bremner added that the United States is most vulnerable to a Chinese laser
attack since 43% of all satellites in orbit belong to the Pentagon or
China is also dispatching a fleet of smaller, mobile satellites such as the
GF-1 that would be harder for adversaries to find and destroy. Their primary
mission is to locate and follow US satellites in orbit before the People’s
Liberation Army launches the attack against them. Lockheed Martin won a US$914
million contract from the United States Air Force on June to build a ground-
based radar system that will track objects as small as a baseball, which
could help identify a satellite attack as it is happening.
Guo Meimei Arrested By Beijing Police for Sports Gambling, Rumors
That She Owes 260 Million RMB. According to a tip, Guo Meimei has
been arrested by Beijing Police for sports gambling! Guo Meimei
loves gambling and has previously shown off gambling large sums in
Macau. As police have been cracking down on online World Cup
gambling, Guo Meimei has been netted.
The internationalization of the renminbi is a natural and irreversible
development that will see China’s economic might and global stature
increase, according to an article in Guangzhou’s 21st Century Business
Efforts to push for the wider use of the renminbi have made great leaps
recently, including the agreement, signed July 4 in South Korea, between
China and Seoul to allow for renminbi clearance in Seoul, the paper said.
This followed on the heels of China’s cooperation deals with central banks
in Europe, as in June, the
China Construction Bank was designated as the renminbi clearing bank in
London, while the Bank of China was authorized to act as the renminbi
clearing bank in Frankfurt, and the People’s Bank of China had earlier
signed deals on renminbi clearance with the central banks of France and
The Industrial and Commercial Bank of China has set up renminbi clearing
banks in Singapore, Laos and Cambodia, and the Bank of China has set up
renminbi clearing banks in Australia, Malaysia, Cambodia, the Philippines,
Taipei, Hong Kong and Macau.
The renminbi will inevitably be used more internationally as China is poised
to surpass the United States as the world’s biggest economy this year,
according to the latest report by the World Bank.
The renminbi’s rise comes as the United States sees its status as the leader
in the capitalist world shaken, as the use of the dollar as the mainstream
reserve currency is being challenged after the 2008 financial crisis, according
to the paper.
If the currency is to become internationalized, there needs to be a
liberalisation allowing foreign exchange rates to be more subject to market
influences and an opening up of China’s domestic financial market.
To facilitate the greater use of the renminbi internationally, four conditions
are necessary–simplifying the process for cross-border renminbi settlement,
promoting individual cross-border renminbi businesses, strengthening cooperation
with central banks in other countries and the development of a cross-border
renminbi payment systems.
Fake eggs, toxic air, milk containing drywall materials, recycled
cooking oil from the sewers…and now women;s hair braids made
with used condoms.
Consumer reports of condoms being recycled into hair bands in China
continue after a Web user posted pictures of similar bands bought
from street vendors in Southwest China’s Chongqing on August 29,
reported the Chongqing Morning Post on August 31.
“It’s really disgusting. Who knows how many germs they contain?”
posted a Net user “Yeshenrennanjing2″ in an unnamed forum, after
making the discovery while tying up her daughter’s hair.
Another Net user surnamed Liang claimed she made the same discovery
after noticing a milky film had leaked from inside the exterior
Despite reports of discarded prophylactics in hair bands surfacing
as early as 2007 in domestic and international press, suppliers and
manufacturers have yet to be identified, said the paper.
Experts explain the hair bands, which have also been found in other
cities, could contain discarded condoms from factories or used
condoms recycled from waste disposal stations.
The hair bands are popular with young women, who often wrap them on
their wrists during use with the help of teeth.
Pan Lianjun, a doctor with Nanjing Maternal and Child Health Care
Hospital, said the bands could carry bacteria and viruses if made
from used condoms.
In Chinese Steel and Solar panels, the firms although in many cases
private, are extensions of their local governments. They are handed
low interest or no interest loans, free land, and subsidised
electricity. It is not free market capitalism, and to the credit of
the U.S. they did finally try and protect some of their industries
recently with tariffs. After decades of being poached by Japanese
and Korean firms, U.S. industrial power is gone. China makes more steel
in 6 weeks than the U.S. will make all year and they will produce twice
as many cars. Of course, the U.S. will continue to hide the bare cupboard
of industrial production in their fake manufacturing numbers which fail to
record “value-add” and count billions of dollars of imported parts as
“locally manufactured”. When numbers don’t add up, the financial pundits
on CNBC , whom have never actually stepped foot on a factory floor,
will reignite theories of robots building stuff which has never
actually happened. Industrial labor is alive and well and has never employed
more people,there just aren’t U.S. workers anymore.
US loses multi-billion dollar court cases against China and India
The World Trade Organization agreed on Monday this week to side with
claims against the United States made by both China and India concerning
US-imposed tariffs on products exported to America.
In both instances, the WTO ruled against the US and decided in favor of
the major BRICs countries, who for two years now have each asked the
organization to intervene and weigh in on America’s use of tariffs to
tax certain imports dating back to 2007.
With regards to both cases, the WTO’s judges ruled that the US acted
“inconsistent with its agreement on subsidies and countervailing duties,”
or taxes imposed on goods sold by “public bodies.”
In China, the panel agreed, US officials improperly levied those taxes
against state-owned enterprises that the WTO does not consider to be
“public bodies.” Instead, the WTO said, those entities were majority-owned
by the Chinese government, but did not perform “government function” or
exercise “government authority,” according to the Financial Times. With
respect to India, the WTO again agreed that the US was wrong to similarly
treat state-owned National Mineral Development Corporation as a public
body, according to the International Business Times.
At issue were billions of dollars’ worth of Chinese steel products, solar
panels, aluminum, paper and other goods shipped to the US after being taxed
as originating from public bodies. The panel’s decision, Reuters reported,
“reflected a widespread concern in the 160-member WTO over what many see
as illegal U.S. protection of its own producers.”
“China urges the United States to respect the WTO rulings and correct its
wrongdoings of abusively using trade remedy measures, and to ensure an
environment of fair competition for Chinese enterprises,” China’s commerce
ministry said in a statement.
As the world cup is over, fans all across China are finally
getting some sleep. With the world cup games going on until
the early morning, tens of millions of fans have been late
for work with reports of hospitalisations and even deaths
from a lack of sleep and excessive drinking at world cup
With China once again, having a soul searching, by missing
the world cup..again…the fans are looking to the next generation.
Chinese Super League teams have now built academies with thousands
of players training at high levels. Even foreign players and
companies are now setting up academies in China.
Presented below is the “11 year old Messi of China” as reported
in the Chinese media. For anyone wanting to follow Chinese football
I suggest to check out the site wildeastfootball.net.
American Oligarchs Press for Open Borders to Collapse
American Wage Structure.
A gambling kingpin, software monopolist, and a crony capitalist walk
in to a bar….I wish this was just a joke,however, it’s not. Sheldon
Adelson, Warren Buffett and Bill Gates have combined to pen an opinion
piece this week in the New York Times called “Break the Immigration
The three men worth a combined $184.3 billion, published the
piece asserting that Americans are getting “shortchanged” by members
of Congress who refuse to bring an immigration bill to the House floor.
I don’t think anyone would argue with that and that is why mainstream
Republicans are being voted out for refusing to tackle debt, endless war,
endless immigration, and joblessness in the country.
So what do the American Oligarchs want? They want amnesty of course and
millions upon million more workers imported into the United States on top
of the 100 million people that have come in since 1965. The country already
has 48 million people on foodstamps and 100 million people of working age not
working or even looking for a job. None on this matters to Oligarchs bent on
adding to their empire at the expense of the American working man.
The policy of unlimited immigration is of course a race to the bottom as a
flood of immigrants come in to distort the national labor market. Importing
brain power is good, but for every brain the country imports they import
10 poor people. Labor is a market like all others, increasing supply drives
down the price and it is this factor which has most contributed to the median
wage of American workers stagnating for 30 years.
Immigration has always been at the forefront of American politics. Protecting
American Labor has been at the forefront of trying to stablize wages for
working class people. Post industrial collapse,however, their is no one
left to defend American labor. Americans will have to get used to third world
wages and unemployment levels.
China is in the process of turning the yuan into a full-fledged global
currency. It is currently clearing the way for a worldwide payments
superhighway in RMB. The China International Payments System (CIPS)
will replace a patchwork of networks and allow hassle-free yuan payment.
The payment system is now scheduled to go live in 2016.
China’s big clearing banks such as Bank of China (601988.SS) (3988.HK)
and offshore centers such as London or Singapore now handle most
international yuan transactions and stand to lose their privileged
position. With the top 4 Chinese banks each making roughly $25 billion
each every year we don’t expect them to cry over spilt milk.
China is the world’s largest creditor and training nation and has by far
the most real productive economy on earth. Food stamps does not make an
economy. China is moving their trade from U.S.D into RMB at a break-neck
pace. Central Banks around the world are stocking up on RMB reserves.
The world needs Chinese manufactured goods and China needs the world’s
economies. The U.S. is no longer competitive in any type of real consumer
good or service. The last bastion of U.S. dominance, which was tech, is
now being pushed out of foreign markets due to NSA spying. We encourage
everyone to own hard assets, precious metals, and RMB. When the U.S. Dollar
resets to reflect real economic realities, the RMB will go up 5 times.
Recent data show that the use of the Chinese renminbi to settle trade between
US and China continues to become more widespread, and US business leaders
expect both their trade volume and RMB settlement to increase in the next
year, according to an HSBC report.
SWIFT data showed that “RMB growth is gaining traction in non-traditional
clearing centers, such as the United States” and that United States RMB
payments value increased 327 percent between April of last year and April
of this year.
“Although the corridor remains dominated by the US dollar, data suggests
that the United States is increasingly using the RMB to support its corporates
that want to reach more suppliers in China mainland. This is good news for the internationalization of the RMB as a world payments currency,” said Michael
Moon, head of payments in the Asia Pacific at SWIFT.
If you want to know the real reason Chinese are leading buyers of
U.S. properties it is ,firstly ,they have the money now. But secondly,
is that fact that Chinese are diversifying their assets to put them beyond
the reach of the Chinese government. In the economic boom from the 90′s
until today, no one has been able to keep their hands clean. Communism is
largely rule by man, and not rule buy law. To get anything done in China,
people had to go around the system. That continues up to today, despite
regulations in China being much easier to navigate. Bribes and kick-backs are
all part of doing business. Wealthy businessman in China cannot risk having
their assets taken if at some point in the future they are indicted in some
type of criminal probe.
A personal story I can share with you is of a gentleman in China who came
into a lawyer friends office in Beijing. He was dressed like a beggar, missing
several teeth. He was in the office to inquire about immigrating to Canada
under an “investor visa” program. As my lawyer friend started to explain to
this poor man that investors for immigration to Canada would need at least $250,000
USD to immigrate, the man with missing teeth and a filthy suit quickly pulled out
his bank book to show a balance of over $4 million USD. It turns out he had made a
fortune smuggling imported cigaretts via Hainan island and it was time to get out
of dodge before the law came down on him.
Want China Times
Many of the nouveau riche in China made their fortunes illegally
Many of China’s nouveau riche class are thought to have earned their
fortunes through illegal means, including exploiting information asymmetry,
selling state-owned companies at low prices, and manipulating stock prices,
reports our Chinese-language sister newspaper Want Daily. Those who have
evaded capture for their crimes, have managed to hold on to their fortunes,
but not everyone was as lucky.
During the 1980s, there was a group of people in China who exploited their
privileges, buying products at low prices in bulk from the companies or
institutions they worked for and then reselling them at high prices on the
market. The most famous of them all was Mou Qizhong, who reportedly made
80-100 million yuan (US$12-16 million) by buying a Tupolev Tu-154 airliner
from the Soviet Union at a low price and then selling it to Sichuan Airlines
later in 1989 at an inflated price.
In the process of China’s privatization of many of its state-own companies,
certain people exploited the opportunity to use the back door to sell state-
own firms at low prices. Gelin Keer Technology Limited’s president and CEO
Gu Chujun, for example, bought China’s largest white goods maker Guangdong
Kelong Electrical Holdings Company in 2001. His businesses expanded rapidly
and Gu bought several companies such as a listed electric appliances chain
and a car rental company in 2003. However, when his companies including Gelin
suffered huge losses between 2002 and 2005, he had his associates falsify
financial data and documents and move one company’s funds to another to cover
up the losses. Gu was sentenced to seven years in prison and fined 6.8 million
yuan (US$1 million) in 2009.
Stock manipulation became another way of accruing illegal gains after China
established the A-share market in 1990s, such as Tang Wanli and his younger
brother Tang Wanxin, who formed Delong International Strategic Investment
Company in 2000. Tang Wanxin then created 40,000 fake accounts to create a
buzz around his company’s stocks, amassing a huge amount of money from issuing
stocks. Delong could not find enough funds to pay for the stocks’ yields,
however, and in May of 2004, the illegal practices came to light. The company’s
stock price plunged and Tang Wangxin was sentenced to eight years in prison
and fined 400,000 yuan (US$64,000).
Smuggling made another group of people in the Chaoshan region of Guangdong
province very wealthy in the 1990s. Lai Changxin founded a company called
Xiamen Yuanhua Group in 1994 and smuggled goods worth over 53 billion yuan
(US$8.5 billion) as well as bribing a dozen senior-ranking officials before
he was caught in 1999. Lai fled to Canada in the same year and was deported
and escorted back to China in 2011 and subsequently sentenced to life in prison.
His personal assets were all confiscated, according to state-owned Central
Television news website.
Suicidal gambler bet it all on Brazil
Police rescued a man lying on a highway in a suicide attempt
after losing everything he owned betting on the World Cup, media
reported on Wednesday. The man was found shirtless on the Baotou-Maoming
highway, according to the Hunan Highway Police.
The gambler told officers he had lost all his property after betting
Brazil would win their semi-final match against Germany. Brazil was
handed an historic 1-7 defeat on July 8. Police talked the man into
getting up from the highway.
Numerous reports of gambling-related suicides have surfaced during
the 2014 World Cup.
A college student in Guangdong Province jumped to his death on June 23,
a suicide suspected to be motivated by gambling losses, said the
Australia ready to introduce Japanese Soryo-class submarines and have Japanese soldiers stationed in Australia
The noose tightens as the partners in the Asian pivot attempt to
encircle China. The indigenous designed Collins class Submarines in
Australia have been a flop and it now appears Australia is going
to adopt Japanese submarines. Will the Japanese really share technology
with Australia? I highly doubt it. They will most likely just be
cheap labor for the Japanese armaments industry.
Want China Times
Australia ready to introduce Japanese Soryo-class submarines
Tony Abbott, the Australian prime minister, will this week sign an
unprecedented defense pact with Shinzo Abe, the Japanese prime minister,
to introduce Soryo-class submarines to Australia from Japan, according
to Brendan Nicholson, a defense analyst from Canberra in an article for
the Australian on July 7.
With the two countries facing China as a common threat in the Asia-Pacific
region, Abe began his visit to Australia on July 7 to discuss closer
defence ties between Tokyo and Canberra. The pact allows Japanese military
personnel to be trained on Australian soil and will see the launch of a
joint submarine construction program. Nicholson said it represents
Australia’s largest ever defense project.
Under Australia’s SEA 1000 project, the Royal Australian Navy will replace
its seven older Collins-class submarines with 12 Soryo-class diesel-electric
submarines. Nicholson said the Soryu-class submarine is is the world’s
biggest and possibly the best diesel-electric submarine. What interests the
Royal Australian Navy most is the Japanese-designed propulsion system which
allows the Soryu-class submarines to spend much less time than other
conventional submarines at or near the surface as it recharges its batteries.
The Soryu-class is now considered the most suitable option for the Royal
Australian Navy to navigate the narrow waterways around Australia.
However, Beijing will be watching Abe’s visit closely, Nicholson said.
Both Canberra and Tokyo are concerned about China’s potential maritime expansion
into the Southern Pacific. For this reason, Japan is providing assistance to
countries like Vietnam and the Philippines, which have territorial disputes
with China in the South China Sea.