HANGZHOU – Two brothers and their father were sentenced to death on Monday for cheating 15,000 investors out of over $1.1 billion in east China’s Zhejiang province. Ji Wenhua, president of the Yintai Real Estate and Investment Group, was sentenced to death for the crime
Dan Collins CMR “Gold going to $7,000”, an article today in the Chinese media is going viral and one of the most viewed articles in the financial press. The article references American Jim Rickards and his concept of comparing inflation-adjusted gold prices. Most Chinese economists
It’s not uncommon for the large Wall Street banks to combine in shorting an entire years supply of minded silver in a single day.The same goes for all commodities. Endless paper printing getting funneled to Wall Street has destroyed all real price discovery. Capitalism fails
Dan Collins CMR When I moved to China back in 1998 I was surprised to learn how highly the Chinese thought of America. Of course China was a much poorer place back then but coming from the Detroit area I couldn’t fathom where was all
Chanos is back! His short China thesis is very long in the tooth but as it goes with most ego maniacs he cannot accept failure or that fact that he might be wrong. Being wrong on an entire country where you have never visited and
You have to laugh at the whole “China will collapse crowd” on CNBC and even respected sites like Zero Hedge. Personally, I love the Zerohedge stuff. They understand the ponzi-financial fraud-money printing-welfare state economy that now envelops the West. But China is a real economy,
D.Collins CMR China’s cloud computing market is expected to be worth 37.2 billion yuan (US$6 billion) in 2017 as demand for the service grows, the Chinese-language China Securities Journal reported on Friday. Some American tech companies are watching the largest and fastest I.T. market in
Breaking News today that a Chinese vessel as rammed and sunk a Vietnamese fishing boat. All countries in the South China Sea and East China Sea are using fishing boats in a game of cat-and-mouse to challenge each other on their respective areas. This time
Stockswatch China has become a banking powerhouse. Four of the five largest banks in the world are Chinese, according to SNL Financial’s latest global bank rankings. It’s a big change from the past few years when only two Chinese banks made the top five. Beijing-based
Scared of losing the Chinese tourist dollar, France has relented to China and will allow Chinese police on the streets of Paris. More signs of the benefits of third-world immigration into the West to the point where cultural breakdown has occurred and law and order
Gold has been flowing East for a decade. When the West wakes up to the fact that their gold is gone, they will no longer have sound money with which to back a currency. The world has only been off a gold standard since 1971
From the China Daily… BEIJING – China will lower banks’ reserve requirement ratio (RRR) by 0.5 percentage points starting May 18, the country’s central bank announced Saturday. The cut, the second of its kind this year, will drop the RRR for the country’s large financial
Is China tweaking its numbers on GDP? Probably. For twenty years Chinese GDP roughy came in right on the governments target. This would be an almost magical performance record considering economists in the West can predict absolutely nothing. For years, China most likely lowered GDP
Japan will learn the hard way that destroying your currency is not an viable economic strategy. Shanghai Daily JAPAN posted a record 1.63 trillion yen (US$17.4 billion) trade deficit in January as rising exports trailed surging imports of crude oil and gas due to rising
One year after the launch of direct trading between the renminbi and Japanese yen, the daily trading volume between the two currencies has reached 50-100 billion Japanese yen on the Shanghai market and 15 billion yen on the Tokyo market, a combined volume double that
Chinese companies in Hong Kong are abandoning a long-held practice of reporting earnings in dollars in favor of the yuan.
Want Want China Holdings Ltd. made the switch for the first time since its 2008 listing when reporting first-half earnings last month, while Hengan International Group Co. dropped the Hong Kong dollar figures it has used since at least 2001. China Resources Beer (Holdings) Co. said it moved to yuan-denominated reports to reduce the impact of currency moves.
While Capital Link International Holdings Ltd. says the growing international importance of the yuan means it no longer makes sense for the nation’s companies to report in a foreign currency, JPMorgan Chase & Co. says the weaker Chinese currency is triggering the move. The yuan will decline a further 1.3 percent to a six-year low by the end of the December, according to analysts’ median forecast in a Bloomberg survey.
“It’s flattering when the yuan is appreciating but it makes the numbers poor when the yuan is falling,” said Adrian Mowat, the chief Asian and emerging-market equity strategist at JPMorgan. Companies “recognize after recent yuan weakness that it makes the numbers less favorable in Hong Kong dollars.”
“The yuan has become enough of an international currency to no longer need to report in dollar or Hong Kong dollar terms,” said Uwe Parpart, Hong Kong-based chief strategist at investment bank Capital Link. “The yuan has become a respected currency.”
The Kremlin have announced that China are to send 5,000 of its most elite military forces into the Levant War Zone to help Russia in the fight against ISIS, which has left the Obama administration and the Pentagon “horrified”.
The “Siberian Tiger” Special Forces and “Night Tiger” Special Forces Units were given authorization to be deployed by China’s People’s Congress (NPC) on Sunday, after China passed its first anti-terrorism law allowing their army to take part in anti-terror missions abroad.
Most critical to China in entering this war, this report continues, is the “grave” national security threat it faces from both the Islamic State (ISIS/ISIL/Daesh) and Turkey’s National Intelligence Organization (MIT)—and as, perhaps, best described by the noted award winning American military-intelligence journalist Seymour M. Hersh who in his latest article warned of this threat by stating:
The People’s Bank of China, in a report released last month, used the term “yuan internationalization” for the first time to describe its six years of efforts in promoting global use of the currency.
It was a sign that those efforts are coming of age and bearing positive results. The yuan today is the fifth-largest payment currency in the world, according to SWIFT data.
The central bank has so far signed currency swap deals with 32 countries and regions, and has appointed 16 banks across Asia, the Americas, Australia and Europe to act as clearing houses for the yuan.
The internationalization process began in 2009 when the central bank allowed cross-border trade settlements in yuan for the first time. It followed that by opening various quota-controlled channels for foreign capital to invest in domestic bond and stock markets.
In a report issued last month, the People’s Bank of China said it will launch a cross-border clearing mechanism called the China International Payment System this year. Though vaguely worded, the report suggested the bank will support foreign entities issuing yuan bonds onshore, will facilitate foreign institutions investing in the domestic interbank bond market, and will “study” the removal of quotas now placed on how much foreign central banks can invest in the interbank bond market.
The process of reform has been long and gradual as authorities try to balance the need for greater global engagement with concerns about shocks to long protected domestic sectors of the economy.
The Standard Chartered Bank has sketched a picture of how the transformation will play out in the near future.
“Within the next three years, China will achieve capital liberalization in a ‘managed’ way,” said Ding Shuang, China chief economist at StanChart. “By ‘managed.’ we mean well-grounded capital-account transactions will be free, and restrictions only on speculative short-term capital flows.”
He predicted few restrictions on foreign direct investment, equities investment and cross-border lending, but an overall quota on capital account transactions.
“Restrictions will be triggered only in cases of huge external impacts and crises to prevent excessive money flows,” Ding added.
StanChart said the volume of foreign trade settled in the yuan will rise to 50 percent in 2020 from 25 percent now. The value of yuan assets will be equal to between 4 percent and 5 percent of global central bank reserves by 2020, up from less than 1 percent now.
The value of domestic bonds held by foreign investors is expected to jump sixfold to about 5 trillion yuan (US$806 billion).
Two Shenzhen con men are charged with running a more than 40 million-yuan ($6 million) scam while claiming to be a protégé of business magnate George Soros and an immortal Qing Dynasty (1644-1911) emperor.
Zheng Xueju, the victim, was seeking to open a village-based bank in 2012 when she was first introduced to the con’s point man, surnamed Ma, the Shenzhen Intermediate People’s Court heard Wednesday.
Prosecutors said Ma claimed not only to have the necessary government and military connections, but also that he was a student of billionaire investor George Soros and had access to billions of dollars.
But things got royally messed up when the smooth-talking Ma introduced Zheng to his partner, Liu Qianzhen.
Liu told Zheng he was the Qing emperor Qianlong (1711-1799), crediting his more than 300 years of life to consuming an “elixir of immortality,” the court heard.
Liu said he was on board, but only needed a transfer of 2 million yuan to unlock his imperial assets.
Zheng agreed. In 2014, Ma successfully scammed Zheng with other investment and real estate scams, said prosecutors.
It only took two years and more than 40 million yuan for Zheng’s husband, Wang Liangbiao, to become suspicious. He began recording their conversations, which he later handed over to prosecutors as evidence.
Ma said he had spent the money on real estate, cars and “precious herbal essences,” prosecutors said.
The court has yet to reach a verdict.
The Saudi Prince is coming to town just as China is about to stockpile its strategic
oil reserves .
China needs to fill its strategic stock, according to Wang Jun, deputy director of the China Center for International Economic Exchanges’ Department of Information.
“Our strategic crude oil inventory only covers about 30 days, which is low, compared to other countries’ 180-day stock
Saudi prince visit eyes vast Chinese oil export market
China and Saudi Arabia are eyeing deeper energy cooperation as Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman prepares to visit China.
Prince Mohammed is scheduled to visit China from Monday to Wednesday and will co-chair a high-level meeting between Saudi and Chinese officials led by Chinese Vice Premier Zhang Gaoli, China’s Ministry of Foreign Affairs announced last week.
During his visit, Prince Mohammed will meet Chinese officials on further strengthening economic ties with a number of deals, including the signing of memorandums of understanding on cooperation in the power sector and one on cooperation on oil storage, Saudi Arabia’s English-language newspaper Arab News reported on Thursday.
Deals expected to be signed during Prince Mohammed’s trip also include investments in Saudi Aramco, the country’s largest state-run oil producer, the Arab News said. Aramco is reportedly planning to go public, issuing about 5 percent of its shares as part of the kingdom’s economic reform plan.
Though other areas such as security cooperation are expected to be discussed, the main focus of the prince’s trip will be on further opening the Chinese market, as the country faces deteriorating global market conditions for its oil exports and as China moves to bolster its strategic inventory, experts noted.
Saudi Arabia, one of the world’s largest oil exporters, has been suffering from sluggish global demand, shrinking prices and rising competition from countries like Russia and Iran.
“At a difficult time like this, it is natural for Saudi Arabia to turn to China, the world’s second-largest oil importer,” said Lin Boqiang, director of the Center for Energy Economics Research at Xiamen University. “I expect a relatively good deal for both sides during the visit.”
The potential deal would guarantee Saudi Arabia more access to the huge and expanding Chinese market, while helping China secure a steady oil supply at lower prices, according to Lin.
China is already one of the largest importers of Saudi oil. In the first half of 2016, China imported about 1.07 million barrels of oil per day from Saudi Arabia, or 14 percent of China’s foreign oil supply, according to Bloomberg.
Strategic oil storage
The potential for growth in Chinese oil imports is promising, as China needs to fill its strategic stock, according to Wang Jun, deputy director of the China Center for International Economic Exchanges’ Department of Information.
“Our strategic crude oil inventory only covers about 30 days, which is low, compared to other countries’ 180-day stock. Furthermore, China’s oil storage infrastructure has improved significantly and can store much more oil now, so there is a huge potential,” Wang told the Global Times.
Crude oil deals with Saudi Arabia would also diversify the supply channels for Chinese oil imports, which is conducive to the country’s energy security, Lin noted.
Prince Mohammed, who is scheduled to return to China after a visit to Japan to attend the G20, will present his country’s economic reform plan, under which the Saudi government would spend $72 billion on projects aimed at diversifying the kingdom’s economy.
The Postal Savings Bank of China (PSBC) — the country’s largest unlisted commercial lender — has begun the process to file for an initial public offering on the Hong Kong stock exchange, Bloomberg reported Monday, citing people familiar with the matter. The IPO, which seeks to raise roughly $8 billion, is likely to take place in September.
If the bank’s IPO manages to hit its fund-raising target, it would be the world’s largest IPO since September 2014, when the Chinese e-commerce giant Alibaba debuted at a record $25 billion in New York.
However, given that the bank’s planned offering comes amid a global rout in bank shares and a 60 percent drop in share offerings in the Asia-Pacific region — both triggered by the uncertainty over, and in response to, the U.K.’s decision to leave the European Union — many have questioned the timing of the IPO.
According to the financial press, the greatest global economic threat is
deflation and a lack of global demand. Of course, the solution to that is
more printed money for bankers in the form of economic stimulus.
The reality, is quite the opposite. Oil prices are up 47% in 2016.
Health care premiums are expanding in the U.S. squeezing the life out
of the middle class. Higher eduction in the U.S. will cost you hundreds
of thousands of dollars. In China, home prices in China’s major cities
have doubled in the last three years. An iPhone 6 in Shanghai will run you
$1,000 USD. Product prices in the U.S. are being held reasonably low by a
stacked house of financial derivatives, credit, and low interest financing.
When the ponzi system busts foreigners are going to demand real money..
up-front for their labor.
All over the world, things are more expensive. We are awash in printed money
and it will end in tears.
Two guys leave the Apple Store this week with tens of thousands of dollars
in Apple products.
BOHAI Steel Group, the indebted state-owned conglomerate, may receive help from a local government bailout fund to restructure its debts, the online financial magazine Caixin said at the weekend.
Bohai Steel, which was created in 2010 through the combination of four manufacturers, holds liabilities of 192 billion yuan (US$28.9 billion) from 105 creditors, alongside assets of nearly 290 billion yuan, Caixin reported.
The Tianjin government plans to create a local asset manager to assist in the debt workout of Bohai Steel, alongside other troubled Tianjin enterprises, the magazine said.
Restructuring of the group represented the biggest since the global financial crisis, Standard & Poor’s analyst Christopher Lee told Reuters in March.
Bohai Steel creditors include the Tianjin branch of the Bank of Beijing Co Ltd and several trust companies.
Straight to Hell in Monetary Hand-basket- German Bank Imposes Negative Rates on Individual Depositors
Don’t look now but your savings are being confiscated by banks, your pensions
are going to pay to turn your country into an open-air refuge camp and you
get to play “avoid the rape game” by war veteran Jihadi’s. Just another day
in the New World Order Paradise.
By Amey Stone
A new line has been crossed in the global move to negative interest rate policy. Before banks only imposed negative rates on businesses and each other. Now a German bank is charging individual depositors with large balances a negative rate.
This week, a German cooperative savings bank in the Bavarian village of Gmund am Tegernsee — population 5,767 — said it’ll start charging retail customers to hold their cash. From September, for savings in excess of 100,000 euros ($111,710), the community’s Raiffeisen bank will take back 0.4 percent. That’s a direct pass through of the current level of the ECB’s negative deposit rate.
“With our business clients there’s been a negative rate for quite some time, so why should it be any different for private individuals with big balances?,” Josef Paul, a board member of the bank, said by phone on Thursday. “As it looks today, charges on deposits won’t be extended to customers with lower amounts” than 100,000 euros, he said.
Peter Boockvar of The Lindsey Group headlined his morning note, “The weapon of mass confiscation spreads to retail.” If this practice spreads, instead of stimulating growth, the policy would essentially a tax on savers. He opines further:
NIRP is the dumbest monetary initiative the world has ever seen. Bottom line, monetary policy is damaging global growth, not facilitating it and we are seeing more and more evidence of policy back firing.
THE imminent launch of the world’s first quantum communication satellite is widely believed to herald a breakthrough in China’s development of quantum technology.
Mysterious and confusing, the study of minute particles smaller than atoms has been applied in fields as diverse as computer processing, lasers and nuclear technology.
China will launch the world’s first quantum communication satellite in a matter of days.
Amid the intense preparations for the quantum communication satellite, scientists hope it can help unravel one of the strangest phenomena in quantum physics — quantum entanglement.
By beaming individual entangled photons between space and ground stations, the satellite should be able to test whether the quantum’s entanglement property extends over the record-breaking distance.
“We have the technology to produce pairs of entangled photons on the satellite,” said Pan Jianwei, academician of Chinese Academy of Science and chief scientist of Chinese quantum communication satellite project.
One photon of an entangled pair will be beamed to a station in Delingha in northwest China’s Qinghai Province, and the other to a station in Lijiang in southwest China’s Yunnan Province, or in Urumqi, capital of Xinjiang Uygur Autonomous Region in northwest China. The distance between the two ground stations is about 1,200 kilometers.
How will quantum communication change our lives, especially in the age of cyber attacks, wiretapping and information leakage?
Based on the quantum phenomenon that a tiny particle acts as if it’s simultaneously in two locations, quantum computing could dwarf the processing power of today’s supercomputers.
In normal silicon computer chips, data is rendered in one of two states: 0 or 1. However, in quantum computers, data could exist in both states simultaneously, holding exponentially more information.
One analogy to explain the concept of quantum computing is that it is like being able to read all the books in a library at the same time, whereas conventional computing is like having to read them one after another.
Scientists say that a problem that takes Tianhe-2, one of the fastest super computers in China, 100 years to solve might take a quantum computer just one hundredth of a second.
In July 2015, a quantum-computing lab jointly established by Chinese Academy of Science and Chinese Internet giant Alibaba opened in Shanghai. The lab is expected to produce a general-purpose quantum computer prototype with 50 to 100 quantum bits by 2030. Such powerful computing ability is also viewed as a threat as it could make everything on a conventional computer hackable.
However, like a coin with two sides, quantum mechanics also serves as protector of information. Quantum key technology boasts ultra-high security as a photon can be neither separated nor duplicated, so it is impossible to wiretap or intercept the information transmitting through it, experts say.
Moreover, it has the ability to inform the two communicating users of the presence of any third party trying to eavesdrop. At the same time, the information being intercepted would “collapse” or self-destruct.
Meanwhile, China will complete and put into operation the world’s first secure quantum communication backbone network, the Beijing-Shanghai backbone network, later this year, Pan said.
The 2,000km backbone network will be used in the fields of finance, electronics and government affairs. The satellite and the ground-based network will ensure the secure passage of information, Pan said.
China is developing a hypersonic jet: Planned space plane could drastically cut the cost of space travel
China is developing a hypersonic jet: Planned space plane could drastically
cut the cost of space travel
– Plans for a hypersonic space plane were discussed on broadcaster CCTV
– It would take off and land on an airstrip, using advanced hybrid engines
– State aerospace firm CASTC aims to deliver a working plane by 2030
China is developing a hypersonic aircraft to take pilots, and perhaps even passengers, to the edge of space. A state aerospace firm has reportedly begun research on an aircraft capable of taking off from a runway and carrying a crew into low Earth orbit. The design is purported to be a more efficient successor to Nasa’s Space Shuttle, which was launched on a rocket but landed on a runway.
The new space plane is being developed by the China Aerospace Science and Technology Corporation (CASTC). When completed it could dramatically reduce the costs of space travel and give China a boost in the renewed space race. According to Popular Science, the aircraft would take off like a normal plane, before a supersonic scramjet engine kicks in to lift it to almost 100 km above sea level. At this point, rocket boosters will provide the additional thrust, giving it enough power to escape the clutches of Earth’s lower atmosphere.
Plans for the plane were discussed on state broadcaster CCTV, with a plane entering service by 2030. With Nasa’s Space Shuttle programme decommissioned since 2011, a hybrid space plane could give the Chinese an edge in the space race.Details are sketchy at this early stage, but the craft could potentially hit speeds of Mach 5, reports Popular Science. It comes just a few weeks after Russia revealed it was developing a hypersonic aircraft capable to travelling anywhere in the world in two hours.
Nearly 100 people have been shot in Chicago in less than a week, pushing the number of shooting victims so far this year to more than 2,500 — about 800 more than this time last year, according to data kept by the Tribune.
Between last Friday afternoon and early Thursday, at least 99 people were shot in the city, 24 of them fatally. At least nine people were killed on Monday alone.
The notoriously bearish Marc Faber is doubling down on his dire market view.
The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC’s “Trading Nation” that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history.
“I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” Faber said, referring to a level 50 percent below Monday’s closing on the S&P 500.
In fact, stocks would need to fall by at least that much in order for some of Faber’s calls to be proven correct. In October 2009, when the S&P was trading near 1,100, Faber said on Indian CNBC-TV18 that U.S. and Indian stocks were “very overbought” and “the gravy’s out” on the rally.
Since then, Faber has generally only become more and more bearish as stocks have climbed. And on Monday, as Faber made his latest crash call, the S&P 500 touched an all-time high of 2,185.44.
When pressed on what could cause the decline he predicts, Faber responded that “you never know exactly why this will happen,” adding that he believes the market’s gains are unsustainable.
“The fact is, the market hasn’t really been driven by genuine buying, but by stock buybacks, takeovers and acquisitions, and market leadership has been narrowing. It’s not that many stocks that have been making new highs. It’s quite a narrow growth of stocks that have been very strong,” he said.
In fact, market breadth has broadened substantially, and as of Monday’s close, 48 percent of the stocks within the S&P 500 have made 52-week highs within the past three months; 6 percent made 1-year highs on Monday alone.
Even though markets have been incredibly quiescent of late, Faber warns that “the excess liquidity that have been generated by central banks will lead to a great deal of volatility.”
And turning an eye to personal history, Faber said that “I’ve seen, repeatedly in my life, markets drop 40 or 50 percent, and in some cases I’ve seen a market like the Dow Jones drop 21 percent in one day.”
“So many things can happen.”
A look at Faber’s predictions, however, would suggest that a sustained market rally was never really within the realm of possible happenings that he considered.
High Taxes, Not Rising Labor Costs Biggest Obstacle to Chinese Manufacturers, Study Finds
Southeast Asian nations had cheaper workers, but they were less productive, helping China retain its competitive edge, researcher says
(Beijing) – China was losing factory jobs to Southeast Asian rivals due to rising labor costs but this did not hurt the country’s competitive edge because Chinese workers on average were more productive, a study by Beijing Normal University found.
Instead, heavy government taxes was the biggest factor hurting manufacturers’ bottom lines, researchers said in a report released on August 5.
The study looked at how factory costs have risen from 2009 to 2013 in three major industrial hubs in the country: Nanjing in eastern province of Jiangsu, Chongqing municipality in the southwest and Luoyang in the central province of Henan.
Salaries for assembly line workers have increased by nearly 12 percent on average each year from 2009 to 2013, which is about three percentage points higher than the annual growth in gross domestic product over the same period, data from the National Bureau of Statistics showed.
The report showed wages of Chinese factory workers rose faster compared to that of Southeast Asian countries such as the Philippines, Indonesia and Thailand. From 2000 to 2012, hourly factory wages in China grew 16.5 percent, nearly double the rate of growth in the Philippines.
Factory workers were now more educated, with their average years of schooling rising from 8 years in 2005 to nearly 10 years last year, pushing up costs, the study said.
A drop in the working-age population has also driven up wages, said Song Xiaowu, who led the research. The population aged between 15 and 59 declined by 3.45 million in 2012 and by another 2.44 million in 2013, he said.
But the productivity of Chinese workers had more than doubled over the same period compared to their counterparts in the Philippines and was 1.7 times that of the labor pool in Thailand, which still gave China a competitive edge, research shows.
Meanwhile, value created per manufacturing worker in China, in 2013, was more than five times compared to the figure in Vietnam and nearly three times that of Indonesia, the study found.
Therefore, there was still room to raise pay in China without hurting the country’s overall competitiveness in manufacturing, Song said. The growth in wages in recent years was justified because the Chinese economy prospered for decades at the expense of workers who endured low wages and poor welfare, he added.
China’s GDP grew almost twenty times in the past four decades, while workers’ incomes rose less than 14 times over the same period, data from NSB show.
Meanwhile, heavy taxes and other government mandated expenses including contributions to pensions and other employee benefits were the major factors weighing down manufacturing profits, the study found.
Taxes and government levies accounted for 16.8 percent of overall costs and another one-fifths went to workers’ benefits including a housing allowance that has led to a heated public debate.
Employers pay up to 12 percent of a worker’s base pay to a government-run housing fund, which employees can tap when buying a new home or refurbishing one.
Critics say executives with already fat paychecks benefited more from this tax-deductible perk compared to assembly line workers.
Authorities must cut taxes and reform the mandatory payment for housing to reverse the slump in manufacturing, researchers said.
Japan Pings Beijing Over Radar in East China Sea Tokyo lodges protests with China over ships nearing disputed islands and radar spotted on gas platform
TOKYO—Japan said Sunday it issued multiple protests to China in recent days concerning Beijing’s actions in the East China Sea, including what Tokyo described as the installation of radar on a Chinese offshore gas platform.
The Japanese foreign ministry also said that on Sunday, two Chinese coast-guard ships entered the territorial waters of islets in the East China Sea that are held by Japan and claimed by China, following incursions Saturday into a contiguous zone surrounding the territorial waters.
The developments raised tensions in a dispute between Tokyo and Beijing over the islets, known as the Senkakus in Japanese and Diaoyu in Chinese. Beijing is already at odds with neighboring countries over a separate territorial dispute in the South China Sea after an international tribunal ruled in July that China’s claims there had no legal basis.
China has 16 gas-drilling platforms in international waters of the East China Sea, and on one of them an ocean-radar facility and surveillance cameras were discovered in June, Japan’s foreign ministry said.
A foreign-ministry spokesman said Japan “cannot accept” the radar. “We call for the immediate removal of the equipment,” he said.
The Chinese defense minister has warned the tense situation in the South
China Sea poses the threat of a direct confrontation and has called on
the military, police and general population to be ready to defend the
country’s territorial integrity. Chang Wanquan made the statement while
inspecting military installations in China’s eastern coastal Zhejiang
Province, state news agency Xinhua reported, without giving the timing
of the comments.
In related news, China has also warned that foreigners fishing in Chinese
waters will be jailed. As the last stocks of fish in the South China Sea
are gobbled up, foreign trawlers (Philippines, Vietnamese, etc) could be
taken into custody by Chinese defense forces sparking further confrontation
in the South China Sea.
We know how this will end…a flash military confrontation in South China Sea
between the U.S. and China. It will result in an embarrassment for U.S. military
which will result in massively expanding its budgets. The “Asian Pivot”,however,
will have to be scaled back and American military domination will be called into
question globally. From that point, you can expect a gradual decline of the
U.S. dollar to about 1/3 of its current value. During that time, the Japanese
financial system will finally implode leaving the country and old middle-income
country as they try and reinvent themselves as an Asian military power.
Meanwhile…the U.S. might get a high speed train system sometime if
one of America’s corporate titans such as GE can buy the trains from
China and get a loan from a Chinese bank to fund the purchase.
The world’s fastest high-speed train with the maximum operating speed of 380 km per hour will run on Zhengzhou-Xuzhou high-speed track from next month.
The engineers behind the Zhengzhou-Xuzhou high-speed railway have succeeded in finishing a key interconnecting facility to link the railway with Beijing-Guangzhou and Zhengzhou-Xi’an high-speed line, creating a seamless connection of high-speed tracks in China’s eastern and middle-western regions.
After the new train is launched, the travel time between Zhengzhou, Central China’s Henan province, and Xuzhou, East China’s Jiangsu province, will be shortened from 2-hour 33-minute to about 80-minute.
Compared to the last generation bullet train, the new train’s continuous operating speed has increased 50 km per hour to 350 km per hour