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
Shanghai is now the most expensive city in Asia for goods — watches, ladies shoes, cigars and suits — beating out Hong Kong and Tokyo, according to a ranking by Julius Baer.
Men’s suits cost 34% higher in Shanghai than average, wine costs 21% more, while wrist watches are at a 16% premium.
“China has been the growth engine of global economic development for the past few years,” the report said.
Though Chinese markets took a tumble this summer and “the price of many luxury items have taken a hit…these reductions do not necessarily imply that these items are cheap.”
Procuring services are also expensive in Shanghai — think the cost of holding a wedding banquet, getting Botox or taking business-class flights.
Mumbai is ranked as the cheapest city for goods and services. A suit in Mumbai costs 26% less than average, while wine is 4% less expensive.
The Julius Baer report uses its own basket of goods and services for 11 Asian cities to determine the ranking.
BEIJING: Communist China has overtaken capitalist United States in the richie rich list with 596 billionaires to America’s 537. The stunning jump has taken place in the last one year — spurred by the rise of China’s riches in technology and manufacturing — despite a slowing economy, according to a survey released on Thursday.
If Hong Kong and Macau’s 119 billionaires were to be included, the number would swell to 717, according to wealth research firm Hurun Report. Though the World Bank recently reduced the forecast for China’s growth from 7.1% to 6.9% this year, its billionaires have risen by 32% or 242 in 2014-15.
Beijing (AFP) – China’s richest man saw his fortune balloon by nearly $17 billion — a sum larger than the GDP of Iceland — in the past year, business magazine Forbes said Monday.
Wang Jianlin, founder of real estate and entertainment conglomerate Wanda Group, saw his wealth rocket from $13.2 billion to $30 billion in the publisher’s 2015 China Rich List.
The windfall, which came despite sluggish growth in the world’s second-largest economy, was driven by the flotations of two of his company’s subsidiaries — even though he lost $3.6 billion in a single day during China’s market turmoil this summer.
“It’s good to have money,” Wang said in a brief appearance at the announcement of the ranking.
At his average rate of accumulation last year he would have become more than $200,000 wealthier during his seven minutes on the stage.
The son of a Red Army captain, Wang was himself a soldier before he founded Wanda in the 1980s, building it up with military discipline. Its website says it is Asia’s largest private property owner.
Now 61, he is the 15th richest man on the planet according to Forbes’ real-time billionaires ranking.
“To unabashedly go out and make money, then fairly and equitably distribute that wealth -– this is what rich people should do,” Wang said.
Wang has sought to play down overseas media speculation on the link between his success and government ties, which in China can be crucial to seal land deals with local authorities.
He said Monday that market forces and creative abilities were crucial to building major businesses in China, rather than personal connections.
“If you’ve made money, it’s definitely because you have skills; I believe that the majority of people who’ve made money did so through normal channels,” he said. “The majority of people with money, especially extraordinarily rich people, are good people.”
– ‘New opportunities’ –
Wang is known outside China for a string of overseas acquisitions including the organiser of Ironman extreme endurance contests, Swiss sports marketing group Infront, and a stake in Spanish football club Atletico Madrid.
He burst into the international spotlight in 2012 by buying US cinema chain AMC Entertainment for $2.6 billion and his company owns more than 200 malls, shopping complexes and luxury hotels across China.
Wang leapt from fourth to first in the Forbes list, one of several charting China’s most affluent people.
He unseated Jack Ma, founder of tech giant Alibaba, who dropped to second place on $21.8 billion as his firm’s share price slumped in New York.
The 100 richest people in China were worth $450 billion, Forbes said, up nearly 20 percent in a year — far faster than current GDP growth of 6.9 percent and despite a rout on Chinese stock markets.
Six out of ten of China’s richest were in the technology sector, including Ma Huateng of Internet titan Tencent (third), Lei Jun of Xiaomi (fourth), and Robin Li of Chinese search engine Baidu, who slipped four spots this year from second to sixth.
“China’s economy is going through a period of structural change,” said Forbes senior editor and list compiler Russell Flannery, adding that the richest had found “new opportunities tied to that transition”.
JINAN – Xinchao Shiye, a public company based in East China’s Shandong province plans to buy oil fields in the United States in a transaction worth 8.3 billion yuan ($1.3 billion).
The oil fields are in Howard and Borden counties, Texas, said a Xinchao Shiye disclosure to the Shanghai Stock Exchange on Saturday.
Xinchao Shiye inked a Letter of Intent with Ningbo Dingliang Huitong Equity Investment Center, a limited liability partnership, and all its individual partners.
According to the disclosure, the Center will purchase the oil fields from Tall City Exploration and Plymouth Petroleum, two limited liability companies registered in Nevada, through Moss Creek Resources LLC, the Center’s subsidiary.
Such a transaction has already received the approval of the Committee on Foreign Investment in the United States, the disclosure added.
Xinchao Shiye would later buy the Center through certain arrangements, said the disclosure.
Earlier this year, Xinchao Shiye announced it would buy oil fields in Crosby County of Texas in a transaction worth 2.21 billion yuan.
On Thursday, Hong Kong-based investment company REX Global Entertainment Holdings Ltd purchased 64.9 percent shares of Russian smartphone maker Yota Devices.
Vladislav Martynov, CEO of Yota Devices, said, “Yota Devices has been looking for investors for over a year. REX Global has been actively looking for an opportunity to enter the smartphone market. Yota provides the Hong Kong firm with the opportunity to do just that.”
Under the terms of the agreement, REX Global will invest $50 million in Yota. The money will be used to provide capital for the product line and develop the next generation of YotaPhone.
According to a memo released to the press by Yota, the deal is likely to help the Russian company expand into China and Southeast Asia markets.
REX Global said it acquired the shares from Telconet Capital Limited Partnership. The remaining shares will be owned by the Russian state corporation Rostec (25.1 percent) and Yota management (10 percent).
Last November, Russian president Vladimir Putin presented the Russian-designed, Chinese-manufactured YotaPhone2 to President Xi Jinping as a symbol of cooperation in the field of consumer electronics between Russia and China.
On September 15, the company signed cooperation agreements with a Shenzhen ZTE Supply Chain Co Ltd (ZTESC), an associate company of Chinese tech giant ZTE Corporation, and Shenzhen X&F Technology Co Ltd, an ODM that focuses on terminal products in the field of communications.
“The next generation of Yota Phone will come with a high-end performance and a reasonable price,” said Martynov. He told chinadaily.com.cn that features such as larger screen and better camera are some of the functions to be improved in the next generation.
He claimed that the price will be slightly cheaper than the existing YotaPhone 2, which is 4,888 yuan ($799).
REX Global Entertainment Holdings Ltd is an investment holding company listed on the main board of The Stock Exchange of Hong Kong Limited.
Oil and other commodities jumped on Friday after China cut interest rates, report David Sheppard and Henry Sanderson.
Brent crude, the international oil benchmark, was up 43 cents at $48.51 a barrel, adding almost all those gains in the five minutes after the China cut was announced.
Metals also rallied after news of the cut, with copper rising 1.22 per cent on the London Metal Exchange. Nickel, a metal used in stainless steel, rose 2.36 per cent, and aluminium rebounded 2.66 per cent from a six year low touched earlier in the day.
China’s decision to its benchmark lending rate to 4.35 per cent from 4.6 per cent from Saturday comes as most commodity prices have fallen close to the lowest level since the financial crisis due to slowing demand growth in the Middle Kingdom.
“Chinese interest rate cut took all markets by surprise triggering short covering across the board,” said Malcolm Freeman, a director at Kingdom Futures.
Previous interest rate cuts by China have triggered short-covering rallies, when traders that were betting on lower prices were spooked into closing out bearish trades. But cuts have also been interpreted at times by traders as a sign of real concerns in Beijing about the underlying strength of the economy, limiting gains.
China’s total fertility rate has fallen to 1.4, well below 2.1 minimum required
to replace an aging population. If that trend continues, the population will
shrink by 36 percent in a generation, experts said.
Already the country’s aging population is having a huge impact on industry.
Last year, the labor force continued to contract with the working population
of 15 to 59-year-olds down 0.6 percent, according to National Bureau of
This sort of anecdotal evidence is being backed up by hard statistics. By
the end of last year, there were 225 million Chinese who were 14 years old or
younger, which was 16.5 percent of the total population.
That was slightly down from 2011 when the country’s sixth national census found
the ratio was 16.6 percent. But that number was considerable less than the 22.89
percent in 2000 when the fifth census was released.
According to the global consensus, a country with 15 to 18 percent of its
population at 14 years old or younger is considered a “severe low-birth rate
Academic suggest use of Estrogen in chemicals in food to curtail population.
As the population imbalance in China between men and women has become intensive, Xie Zuoshi, a professor with the School of Economics and International Trade at Zhejiang University of Finance and Economics, said in his blog that the problem can be solved by allowing polyandry.
According to the National Bureau of Statistics, due to a severe gender imbalance, China will have more than 30 million men who cannot find wives. Sociology experts worry that this will turn into a severe social problem for the country.
Xie wrote that he does not think the imbalance will develop into a severe social problem because analyzed by economic theories, the 30 million single men problem can be viewed as a problem of high-income versus low income and several low-income earners can share a wife.
“Males with high-income will get married easier because they can afford a wife. For low-incomers, one solution is to allow polyandry,” he wrote. “In fact, in some rural areas in China, there are situations in which brothers of a family share one wife and they live happily together.”
He said that if legalized, polyandry would be a perfect solution to solve the 30 million single men’s sexual needs, which he believed will be the most important factor in igniting social unrest.
In addition, Xie wrote that with better economic development, more women from Africa and Southeast Asia will be attracted to marry Chinese men and allowing gay marriage will also relieve the problem.
While putting forward solutions, he also said that the abuse of estrogen in food might reduce sexual needs and capabilities of men in China.
Home prices in China rose for a fifth consecutive month in September, suggesting a mild recovery in the housing market that will relieve some pressure on the country’s economy.
Average new home prices inched up 0.3 percent in September from August, according to Reuters calculations based on data released by the National Statistics Bureau (NBS) on Friday, the same pace as in August.
Month-on-month price gains were recorded in 39 of the 70 cities surveyed, up from 35 in August.
The sector, which accounts for 15 percent of GDP, has become a rare bright spot in an economy that is expected to grow at its slowest pace in 25 years this year.
However, while home prices and sales have improved in recent months after a barrage of government support measures, conditions remain weak in smaller cities and a huge overhang of unsold houses is discouraging new investment and construction.
Data on Monday showed that growth in China’s property investment in the first nine months of the year slowed to the lowest level since early 2009, while new construction in the same period continued to see a year-on-year drop.
Still, there are signs that property investment might be bottoming out, with new construction rising 15.3 percent in September from the same period a year ago, the first such growth in nearly a year, according to Reuters calculations based on official data.
Economists at ING said such a revival could point the way for property to become an economic growth driver again next year, boosting demand from construction materials from cement to steel.
But single-month data, derived from cumulative figures, can be volatile.
Indeed, prices for rebar, a steel product used in construction, slumped to record lows in Shanghai this week, while September cement output was down 2.5 percent from a year earlier.
Ma Jun, the chief economist at the People’s Bank of China (PBOC), conceded that the weak property investment was the main source of downward pressure weighing on the economy but said he expected investment to improve in coming months.
“Rising home prices in recent months have steadied market sentiment… and the improved sales are likely to stabilize the property investment in coming months,” Ma told the official Financial News on Friday. The paper is published by the central bank.
First-tier cities fared better, with Shenzhen being the top performer.
Prices in Shenzhen were up 37.6 percent in September from a year earlier, compared with a 31.3 percent rise the previous month.
Shanghai prices rose 8.3 percent, quickening from August.
Timing in perfectly with the first day of President Xi Jinping’s state visit to the UK, China’s central bank issued its first yuan-denominated bonds in London, which attracted bids for more than 30bn yuan (£3.06bn; $4.7bn).
The yuan-denominated bonds are believed to be the first ever to be issued outside of China and Hong Kong. It is seen as a major boost for London as an international financial centre and the main western trading hub for the yuan.
Investors bought 5bn yuan-denominated one-year bills on Tuesday. The bonds were six times oversubscribed, which pushed the final yield to 3.1% from a marketed rate of 3.3%. Following the resounding success of the auction, China’s finance ministry is expected to launch a second longer dated yuan-denominated bond issue.
Spencer Lake, the global head of capital financing at HSBC, one of the banks that arranged the sale, described the bond issue as a milestone in the internationalisation of the yuan. “This strategic move demonstrates the clear commitment by the Chinese authorities to grow the offshore bond market and the confidence in the City of London as a leading renminbi hub for future activities,” he said.
“The PBoC bond will give a genuine boost to liquidity, market confidence and provide investors with the quality that they demand,” Lake said. The UK and China have also implemented initiatives to link their financial markets, including formally connecting the London and Shanghai stock markets.
Tommy Xie, a Singapore-based economist at the Oversea-Chinese Banking Corp said: “This is another important step in yuan internationalisation, which could help increase chances to win reserve status. For London, by playing an essential role in the process, the city enhances its role as the world’s currency trading centre.” Analysts said that London is extending its lead over both Paris and Frankfurt in the race to be Europe’s yuan hub.
Shen Jianguang, chief Asia economist at Mizuho Securities said last week: “A highlight of China-UK economic relations is London’s potential role as a top offshore renminbi centre in Europe. This will further strengthen London’s position as a predominant global financial centre. London’s support is also critical to encourage more trade and investment to be settled in renminbi and for more financial products to be issued in the currency.”
Industrial and Commercial Bank of China, and HSBC were the joint global co-ordinators for the sale. ABC, Bank of China, Bank of Communications, China Construction Bank and Standard Chartered were the joint bookrunners and lead managers.
CME signs tie-up with China Construction Bank
Separately, the Chicago Mercantile Exchange announced a tie-up with China Construction Bank that will allow CME to become London’s first trading platform to offer offshore renminbi futures. This will allow financiers to hedge and trade on anticipated movements in the Chinese currency. Previously, this facility was only offered via Hong Kong.
“The ability to transact during London hours is of paramount importance to those institutions who value flexibility in managing their positions in markets where prices can move sharply in short periods of time,” said William Knottenbelt, head of international at CME. CCB received Beijing’s approval last year to open Europe’s first clearing bank for the yuan in London. Bank of China’s branches in Frankfurt and Paris got the green light shortly after.
The central government is stepping up its anti-graft drive by cracking down on illegal lending and money-laundering operations in a bid to prevent outbound flows of stolen assets.
The Ministry of Public Security says “black banks” and illegal currency exchanges have facilitated the flights of a number of former government officials and senior managers of State-owned companies accused of corrupt activities. Most have absconded to popular destinations, such as the United States and Australia, where a lack of bilateral extradition treaties and differences in international law and legal process ensure they are safe from extradition.
At the end of August, the ministry began a three month operation targeting underground lenders, money launderers and offshore funds.\
Meng Qingfeng, vice-minister of public security, said the ministry will work closely with the People’s Bank of China and the State Administration of Foreign Exchange to share information and establish a mechanism to coordinate and conduct rapid investigations into suspicious outbound flows of assets.
A special force will be established to combat underground banks and unearth evidence of economic crimes. The ministry will increase the flow of related information, and a series of educational events will be organized to show the public how to conduct overseas financial transactions through legal channels, Meng said.
Corrupt officials or business leaders secretly planning to leave the country have used a network of underground banks to send “millions of dollars” of illegally obtained assets overseas, according to officials.
The outflows pose a severe threat to national economic safety, so the government is determined to smash money-laundering operations and improve foreign exchange controls to maintain financial and political stability.
In April, the Public Security Ministry joined the PBOC and SAFE in a combined operation targeting underground money exchanges. So far, more than 230 suspects have been apprehended in many major cases, and more than 100 black banks have been closed down, ending operations thought to have netted about 670 billion yuan ($105.5 billion), according to the statistics released by the ministry.
Tokyo must adopt an approach of “sincerity and responsibility and take practical actions” to address its excessive storage of nuclear materials and increasing imbalance between supply and demand, Beijing said, following a report released by think-tanks.
The report, which was drawn up by the China Arms Control and Disarmament Association (CACDA) and the China Institute of Nuclear Information and Economics, highlighted problems and risks in relation to Tokyo’s large inventory.
The report said that the Japanese government has yet to answer questions on why it stores large amounts of nuclear materials and how it will solve the serious imbalance of the supply and demand situation of these materials.
Japan’s large amount of sensitive nuclear materials far exceeds its actual needs and brings safety and proliferation risks, the Foreign Ministry’s spokesperson Hua Chunying said. These issues have already aroused concerns and questions by countries and international groups that specialize in nuclear issues, he added.
Chen Kai, secretary-general of CACDA, said Japan is the only country among non-nuclear weapon states to possess commercial-scale reprocessing and enriching capability at the same time, which means it is capable of developing nuclear weapons.
According to the International Atomic Energy Agency (IAEA), Japan currently has 47.8 tons of separated plutonium, 10.8 tons of which is in Japan, Chen said, (the rest is stored in France and the United Kingdom). The Japanese government promised in the 1990s it would have “no residual plutonium”, however, after 20 years, its inventory of separated plutonium doubled, he added.
Chen suggested that the plutonium Japan stored in the UK and France could be transferred to those countries permanently in a commercial deal.
“It would undoubtedly be of great significance and set a good example,” Chen added.
Regarding the plutonium stored in Japan, the report suggested that besides reserving a certain amount for future use, the rest should be entrusted to the IAEA to be actually frozen and Japan should give priority to using MOX fuel to restart its nuclear power plant in order to consume the existing plutonium inventory as soon as possible.
China’s military would “give a head-on blow” to foreign forces “violating” China’s sovereignty.
China warns US against maritime challenge
Charles Clover in Beijing
Tensions between the US and China are on the rise amid reports that Washington
plans to challenge China’s sovereignty over a group of artificial islands in
the South China Sea. In the latest escalation of rhetoric from Beijing a senior
Chinese naval officer on Thursday warned the US that China’s military would
“give a head-on blow” to foreign forces “violating” China’s sovereignty.
Rear Admiral Yang Yi, writing in the Global Times, a Beijing newspaper with
close links to the ruling Communist party, said: “Safeguarding maritime rights
calls for force and power.” In the past two years China has dredged about 2000
acres out of small coral atolls in the South China Sea, created about half a
dozen new islands, one of which, named Fiery Cross Reef, has a 3000m runway
apparently capable of handling military jets.
The island building appears to be part of China’s strategy to lay claim to
virtually the entire South China Sea, a move that has infuriated China’s maritime
neighbors and the US.Last week US officials told the FT that “freedom of navigation
activities” — sailing or flying within 12 nautical miles of the islands to challenge
China’s claims — will start soon.
Admiral Yang’s comments are the most incendiary to have come out of Beijing so far.
But Wu Shicun, the director of the Institute of the South China Sea on Hainan Island,
said the officer was not speaking on behalf of the Chinese government.
“To the public this may sound strongly of gunpowder, and it appeals to nationalistic
emotions, but it is highly unlikely that the decision-making levels in either country
will allow tensions to elevate to such a level,” he said.
Oleg Dyomin, Ukraine’s ambassador to China, said Chinese peacekeeping forces would be welcome to restore peace and stability in his country after President Xi Jinping said Beijing will contribute 8,000 additional troops for United Nations peacekeeping missions, according to Hong Kong’s Wen Wei Po on Oct. 4.
Xi made the pledge during his meeting with President Barack Obama of the United States in Washington DC on Sept. 25 and again expressed his support for UN peacekeeping operations when he addressed the UN General Assembly in New York three days later. Dyomin told Chinese media that peacekeeping forces from China would be welcome in Ukraine.
A Ukrainian military expert said Chinese peacekeeping forces would be a better alternative compared to Western intervention as it would seem more acceptable from the perspectives of both Russia and Ukraine. Ukrainian government forces are engaged in with armed separatists supported by the Russian government. Because China maintains good military-to-military relationship with both nations, it can maintain a more neutral position in the internal conflict, the expert said.
Looks like Pakistan has been saving the $100m /annually the United States
were paying them to hunt down Bin Laden, meanwhile, they were hiding him
in a Pakistani military compound.
Want China Times
China has finalized its largest ever arms deal, which will deliver a total of eight new submarines to Pakistan.
Pakistan’s minister for defence production, Tanveer Hussain, confirmed that the US$4-5 billion deal was sealed recently while opening a new exhibition center at the country’s Defence Export Promotion Organization last week.
Four of the submarines will be built in China, with the other four to be constructed in Pakistan as part of a technology transfer agreement. Construction will take place simultaneously in both countries, though Hussain did not indicate when it would commence. Pakistan will also build a submarine training center in Karachi, the country’s main port city, Hussain added.
Neither side has revealed the model of the new submarines, though most analysts believe they will be the air independent propulsion (AIP) equipped variant of the S-20, an export version of China’s Type 039A/Type 041 class diesel-electric submarine.
According to US-based political news website Duowei News, China has been transferring weapons technology to Pakistan for some time, starting with aircraft, then helicopters and now submarines. The two sides have also co-developed the PAC JF-17 Thunder (or FC-1 Xiaolong) multi-role combat aircraft, which made its first overseas sale to the Sri Lanka Air Force earlier this year.
The new deal will modernize Pakistan’s submarine fleet, which currently has eight subs, including three French Agosta-class 90-B subs and two Agosta-class 70-B subs.
Tom Waldwyn, research analyst in the Defence and Military Analysis Programme at the International Institute for Strategic Studies, told the US-based Defense News that the capabilities of Chinese submarines are not something which can be easily determined as it benefits countries on both sides to keep this a secret.
Waldwyn notes that if the subs are indeed AIP S-20s, they would give Pakistan “greater operational flexibility through increased endurance.”
Military analyst Brian Cloughley on the other hand notes that Pakistan will remain reliant on China for arms even with the transfer of technology. “It is in the interests of both parties to have as much as possible manufactured in Pakistan, but of course the really high-tech systems will have to come from China, as it’s simply not cost-effective for Pakistan to gear up to make them,” Cloughley said.
China’s nationalistic Global Times tabloid said China has now overtaken Germany to become the world’s third-largest arms exporter.
Want China Times
China’s deployment of warships to Syria to escort the government’s chemical weapons stockpile between 2013 and 2014 and the future involvement of the PLA Navy in the region to assist Russian military operations will promote the reconstruction of the Chinese navy in the near future, the Sina Military Network reported on Oct. 10.
Vladimir Komoedov, chair of the Russian Duma’s Defense Committee told the Sputnik News based in Moscow that the Mediterranean Squadron of the Russian Black Sea Fleet alone is enough to deploy against the country’s recently announced operations against Islamic State (ISIS), the jihadist terror group that has taken over a large swathe of land in Syria and Iraq, and that it is not necessary to deploy the entire Black Sea Fleet to the region. Earlier photos revealed by Moscow showed a Buyan-class corvette and a Gepard-class frigate purportedly launching missiles against Syrian targets from the Caspian Sea.
Because most strategic targets held by ISIS are located within the interior of Syria, relying primarily on missile attacks launched from warships may not be sufficient and ground forces will have to be deployed to occupy enemy territory and maintain order, the report said. If China were to decide to provide groud support to Russian forces in Syria, the PLA Navy would be needed to transfer troops to the region.
Such operations would not only enhance the PLA Navy’s operational capabilities in the open sea, but also change the strategic thinking of the navy’s leadership. With more experience of operating far from home, the PLA Navy may eventually expand its current three major fleets, established to defend the Chinese coastline and local waters.
The North Sea Fleet is responsible for the region covering the Korean peninsula and Japan, while the East Sea Fleet covers the Taiwan Strait as well as the US military facilities on Okinawa and Guam, and the South Sea Fleet covers the South China Sea. All three will eventually be expanded gradually in terms of size and in terms of the regions they will operate, the report said.
The North Sea Fleet may eventually deploy warships to escort ballistic missile submarines to the Arctic Ocean, while the East Sea Fleet will become China’s first real Pacific Fleet to counter the more powerful US and Japanese navies in the Western Pacific and the South Sea Fleet will expand its area of operations westward to the Indian Ocean.
This latter fleet will have two missions in the future, the Sina Military report said. The first will be to continue its current operation to exercise dominance in the disputed South China Sea and the second will be to bring Chinese maritime power to bear in support of the government’s “Belt and Road” initiatives.
Chinese shares surged on Monday, with the market gaining confidence from the central bank’s latest move to expand a pilot program to ease monetary flows by cutting loan costs.
The benchmark Shanghai Composite Index went up more than 3% in the morning trading session.
China’s central bank on Saturday announced it would expand the pilot program on credit-asset pledged lending to nine municipalities and provinces.
MIG DOWN..I repeat a Mig -29 is down.Russian jet SHOT DOWN by Turkey after it flew into their airspace
Russian jet SHOT DOWN by Turkey after it flew into their airspace, according to reports
A RUSSIAN jet has been shot down by Turkish forces after it flew into the country’s airspace, according to as yet unconfirmed reports circulating on social media.
Eyewitnesses saw a large explosion in Huraytan, northern Syria, while three fighter jets were hovering above.
One journalist tweeted that three Turkish planes were responding to “mysterious” lock-ons from Mig-29 jets, which are used by Putin’s forces.
Express.co.uk has contacted the Turkish government and the Russian military but neither could be reached for comment.