China promotes “Asia-Pacific Dream” to counter U.S. ‘Pivot’ to Asia

1. Sketching out a new “Asia Pacific dream” with China at the center, Xi predicts $1.25 trillion outbound investment over the next 10 years during the APEC summit. // Speaking to executives at a CEO gathering in Beijing, Xi outlined how much the world stands to gain from a rising China. He said outbound investment will total $1.25 trillion over the next 10 years, 500 million Chinese tourists will go abroad, and the government will spend $40 billion to revive the ancient Silk Road trade route between Asia and Europe. // Source: Bloomberg
2. China established a $40 billion Silk Road Infrastructure Fund // China will contribute $40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia…. China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean. The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, Xi said, according to Xinhua. The goal of the fund is to « break the connectivity bottleneck » in Asia, state media quoted Xi as saying during a meeting in Beijing with leaders from Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Pakistan and Tajikistan. The Silk Road Fund will be « open » and welcome investors from Asia and beyond to « actively » take part in the project, Xi was cited as saying, ahead of a separate summit of the Asia Pacific Economic Cooperation (APEC) grouping, also being held in the Chinese capital. … China has sought to address fears in the region – and globally – that its bounding economic growth will inevitably bring about a more assertive, muscular diplomatic and military approach to issues such as territorial disputes. // Source: Reuters
3. Washington Post features some important details of the China-US joint press conference) in its article “A tale of U.S.-China contrasts: Obama sounds conciliatory, Xi sounds competitive”. // But after being challenged by a New York Times reporter over the Communist Party’s denial of visas for foreign journalists, Xi lashed out, insisting that the foreign press should “obey China’s laws” and look at themselves “to see where the problem lies”. In a forceful and unusually blunt performance, Xi also denounced the pro-democracy protests in Hong Kong as an “illegal movement” and suggested that the United States and other western nations butt out of China’s domestic affairs. Although Obama had emphasized that he raised concerns over human rights, Xi countered that “China has made enormous progress in human rights. That’s a fact recognized by all the people of the world.”… It was the idea that China and the United States are on an inevitable collision course that the Obama administration was eager to dispel here this week. Rather, the president sought to project a counter-narrative that the two countries can manage their differences, while focusing on shared interests…. Obama then tried to pre-emptively answer the question posed to Xi, emphasizing that the United States was in no way trying to contain China’s rise. He said he told Xi that while the United States supports free expression, the administration had in no way spurred the pro-democracy protests in Hong Kong. In his remarks, Obama had also made the point that the United States does not support independence from Tibet. // Source: Washington Post
4. China is keen on promoting new type of major-country (or power) relations with the US
   i.     Xinhua reports that the two leaders “pledged to push forward a new type of major-country relations between the two countries”. Source: Xinhua
   ii.     But the US showed reservation over the use of the term as it did not appear in the White House’s press release. Source: Mingpao
   iii.     Analysts noted that the term was not mentioned by NSA’s Susan Rice during her earlier preparatory visit to China. It is likely that the Obama administration “feels that China’s interpretation of the phrase is too loaded”. // In the meeting between Rice and President Xi, reiterated his vision of a “new model of major country relations”: no conflict or confrontation, mutual respect, and win-win cooperation. Such a relationship is a “skyscraper,” Xi said, one that must be built up slowly once a foundation of “strategic trust” has been laid. The key to “strategic trust” is deeper mutual understanding and respect for each other’s “core interests.” In a briefing on Rice’s visit, Foreign Ministry spokesperson Hua Chunying emphasized that this “new type of relationship” must begin in the Asia-Pacific region, where U.S.-Chinese interests are most entangled and the two countries interact most frequently. // Source: Diplomat
   iv.     A Primer on “new type of major country relationship”: // The US response to China’s call for a “new type of major country relationship” remains one of the most controversial and misunderstood components of the Obama administration’s China policy. An immediate problem is the glaring disconnect between the ways in which policymakers in Washington and Beijing are interpreting the concept. What the United States sees as a way to manage competition and encourage China to cooperate on critical geopolitical issues, China’s leaders describe as a framework for acknowledging China’s newfound status and respecting its core interests. // Source: CSIS
   v.     China listed six priorities: // The six priorities in China’s diplomacy with the U.S. include the communication between high-level officials, mutual respect, cooperation in all aspects, management of disputes, collaboration in the Asia-Pacific and joint actions on global challenges // Source: Xinhua
5. Meanwhile, President Xi also calls for a new type of military relations with U.S. // Xi said that defense departments of the two countries have signed agreements to establish a mutual reporting mechanism on major military operations and a code of safe conduct on naval and air military encounter between the two sides. The two militaries should deepen exchanges, mutual trust and cooperation based on these agreements, he said. China would like to make progress in the exchanges between senior officers of the two armed forces, smooth communication mechanism and conduct more joint trainings and drills with the U.S. side, he said. // Source: Xinhua

Xi Jinping unveils China’s plan for Asia-Pacific free-trade pact

1. // The Asia-Pacific Economic Cooperation summit ended with all 21 Apec economies endorsing China’s plan to create a Free Trade Area of the Asia-Pacific (FTAAP)…. The FTAAP has often been described as a counter to the 12-nation, US-led Trans-Pacific Partnership (TPP) – a claim denied by the chief US trade envoy, Michael Froman. China is promoting its plan just as the TPP appears to have lost steam. There had been reports that Washington – eager to push ahead on the TPP – had pressured Beijing to downplay the FTAAP idea. A US official told the South China Morning Post that the FTAAP proposal would be declared in the annex of the final Apec communiqué. Xi’s high-profile announcement yesterday was effectively the launch of a road map instead of a « feasibility study », a term for actual negotiations the US side has resisted. // Source: SCMP
2. // China is ready to offer more preferential treatment to investors from Asean countries as part of a bilateral free-trade agreement under negotiation, Premier Li Keqiang said. Li also pledged more financial support to the 10-member Association of Southeast Asian Nations, including US$20 billion loans, 3 billion yuan (HK$3.8 billion) to fight poverty and other initiatives to boost infrastructure and economic development. Li repeated the promises at several meetings during the Asean summit in Myanmar that followed the Asia Pacific Economic Cooperation summit in Beijing. The 21 Apec economies agreed to move towards a new free-trade zone, backed by Beijing, which is seen as a rival to the US-led Trans-Pacific Partnership (TPP), which excludes China. // Source: SCMP

Bilateral U.S.-China agreement on climate change

1. A bilateral U.S.-China agreement on climate change was announced just before the joint press conference between Xi and Obama following APEC meetings in Beijing. According to the announcement, // The United States intends to achieve an economy-wide target of reducing its emissions by 26%-28% below its 2005 level in 2025 and to make best efforts to reduce its emissions by 28%. China intends to achieve the peaking of CO2 emissions around 2030 and to make best efforts to peak early and intends to increase the share of non-fossil fuels in primary energy consumption to around 20% by 2030. Both sides intend to continue to work to increase ambition over time. // Source: The White House
2. In his New York Times’ “China, America and Our Warming Planet”, US Secretary of State John Kerry says that the agreement can “inject momentum into the global climate negotiations”, and “is also a milestone in the United States-China relationship, the outcome of a concerted effort that began last year in Beijing […beginning with the] United States-China Climate Change Working Group”. Source: NYT
3. Media is calling the agreement a “game-changer”, as this “includes new targets for carbon emissions reductions by the United States and a first-ever commitment by China to stop its emissions from growing by 2030”, as NYT reports. At Mother Jones, a US-based media, reporters also look at the significance of the agreement // This is the first time such a policy has come from the very top, President Xi Jinping. Previously, the first and only mention of “peaking” came from Vice Premier Zhang Gaoli at the UN climate talks in New York in September. …The announcement also sets the stage for conflict with the Senate’s new Republican leadership, which just today signaled that attacking Obama’s climate initiatives will be a top priority in 2015. Source: NYT, Mother Jones
4. James Fallows weights on its significance on the Atlantic: // A nationalistic, spoiling-for-a-fight tone has spilled over into China’s « diplomatic » dealings too. So to have this leader of China making an important deal with an American president at this stage of his political fortune is the first news that even seems positive in a long while. We’ll wait to see the details. But at face value, this is better news—about China, about China and America, and about the globe—than we’ve gotten for a while. // Source: Atlantic
5. But experts see little: // In Oslo, Rajendra Pachauri, the head of the U.N. panel of climate scientists, said the deal was « heartening » even though it fell far short of cuts needed to avert the worst of global warming, from heatwaves to rising sea levels. For China, the targets add little to its existing commitments to wean itself off carbon, environmental experts said. … China also pledged to boost the share of non-fossil fuels in its energy mix to around 20 percent by 2030, from less than 10 percent in 2013, a move that could require 1,000 gigawatts of new nuclear and renewable capacity, but Wang said the figure took China little further than « business as usual ». // Source: Reuters
6. At the New York Times, Edward Wong questions China’s climate change plan: // Still, many questions surround China’s plans, which President Xi Jinping announced in Beijing alongside President Obama after months of negotiations. In essence, experts asked, do the pledges go far enough, and how will China achieve them? Mr. Xi said China would brake the rapid rise in its carbon dioxide emissions, so that they peak “around 2030” and then remain steady or begin to decline. And by then, he promised, 20 percent of China’s energy will be renewable. Analysts said that achieving those goals would require sustained efforts by Beijing to curb the country’s addiction to coal and greatly increase its commitment to energy sources that do not depend on fossil fuels. Many scientists have said that 2030 may be too long to wait for China’s greenhouse gas emissions to stop growing, if the world is to keep the average global temperature from rising more than 3.6 degrees Fahrenheit (2 degrees Celsius) above the preindustrial average. That goal was adopted by governments from around the world at talks in Copenhagen in 2009. // Source: NYT

 State media compares Xi with Deng as the “new architect of reform”

1. // The Communist Party’s mouthpiece has dubbed President Xi Jinping as the « new architect » of China’s reform, a comparison with late paramount leader Deng Xiaoping, who was known as the nation’s « chief architect ». In a commentary published through the mobile phone app of People’s Daily, Xi was described as being « in position to answer the call » as the new architect of reform to « take a good path, a new path and make new achievements ». … Observers said the article was the latest sign that Xi had consolidated his authority since becoming the party’s general secretary in 2012, and the country’s president last year. // Source: SCMP
2. Original article published on the mobile app of People’s Daily is titled新设计师习近平: //　这位改革开放的总设计师，当年面对的改革阻力非常复杂。“改革路不平”，成为那个时代人们共同的喟叹。今日之中国，似乎又到了一个“改革路不平”的十字路口。改革开放“摸着石头过河”走过30多年，现在面对“乱石险滩”，如何开创新局面？“发展起来以后的问题不比不发展时少”。如何缩小贫富差距、如何摆脱粗放型经济、如何摆正政府和市场关系，这些都是大难题。这些难题背后，隐藏着拦路虎：不合理的权力与市场关系，孽生的庞大的利益集团。如何调整既有利益格局，形成惠及普通老百姓的新利益分配机制，这是个超难任务。// Source: People’s Daily

CY Leung met with President Xi in Beijing during APEC meetings

1. // Chinese President Xi Jinping said Sunday that political reforms in Hong Kong must adhere to the principle of “one country, two systems,” even as a pro-democracy march in the city, demanding direct talks with Beijing’s representatives, drew up to 1,000 people. The comments by Mr. Xi came during a meeting with Hong Kong Chief Executive Leung Chun-ying in Beijing ahead of the Asia-Pacific Economic Cooperation forum, which starts on Monday. …The Chinese president said the mainland is committed to Hong Kong’s democratic development under the Basic Law, the state-run Xinhua News Agency reported. Mr. Xi said the Chinese government also “fully affirms and supports” the Hong Kong government’s efforts to maintain social order and safeguard the rule of law, which is a foundation for Hong Kong’s stability, according to Xinhua.” // Source: WSJ
2. // A source close to the Hong Kong government said Xi cited a line from an ancient poem – « strong winds reveal the strength of sturdy grass » (疾风知劲草) – as praise for Leung’s loyalty and resilience in handling the Occupy protests and Beijing’s firmest support yet for the chief executive.” The poem, said to be written by Emperor Taizong during the Tang dynasty, was often cited by emperors to praise loyal ministers in times of adversity. The line is followed by « turmoils test the loyalty of a good minister ». // Source: SCMP
3. …but Mr. Xi did not make an open statement to express support for Mr. Leung
4. Launching the HK-Shanghai Trading Link // The start date for the planned trading link between the stock markets of Hong Kong and Shanghai will be given soon, Hong Kong’s chief executive said after meeting Chinese President Xi Jinping. …China is counting on the planned link between the two cities’ stock exchanges, which will allow a net 23.5 billion yuan ($3.8 billion) a day in cross-border purchases, to help liberalize its financial system and increase use of the nation’s currency. // Source: Bloomberg
5. China changes the subject in Hong Kong // Xi hasn’t just held his ground — he’s managed to shift it right underneath the protesters. All it took was saying yes to the long-anticipated Shanghai-Hong Kong exchange link that allows for $3.8 billion of daily cross-border purchases, a limit regulators will increase if the link is a success. Xi’s Communist Party may be clumsy at diplomacy, but it sure knows how to change the subject. Over in Beijing, where Xi is hosting Barack Obama, Vladimir Putin and other Asia-Pacific leaders, the buzz is about China’s meteoric rise and how it’s reshaping the world — not its encroachment on Hong Kong’s civil liberties. U.S. officials are celebrating a « breakthrough » in a new technology trade pact, rather than praising the city’s protesters. // Source: Bloomberg

Occupy Central leader Benny Tai’s daughter’s open letter to her father

1. // The daughter of Occupy Central co-founder Benny Tai Yiu-ting has written of her « unbearable pain » at seeing her father’s « white hair, coarse voice and staggering steps » since the protests began. In a 1,900-word article posted on the In-media website yesterday, Tonya Tai wrote in Chinese of her father, the « most diligent person and best husband and daddy in the world ». The article includes an old photograph of Tai and Tonya as a little girl. The byline is « Tong-ya », but In-media editor Damon Wong Chun-pong confirmed it was written by Tonya, a fourth-year student at Chinese University’s government and public administration department. Tonya also confirmed she had written it. // Source: SCMP
2. Original article. Source: inmediahk

Sources said Beijing has no timetable for clearing the Occupy Protest

1. // 北京消息透露，中央對於香港「佔中」清場並無具體時間表。把佔中清場與滬港通聯繫起來是誤會，行政長官梁振英只是向中央作出了香港有能力獨力恢復秩序和法治的保證，並未設定開通滬港通之前的「死線」。而中央獲特區政府保證維護香港穩定後，對於香港的經濟政策，如滬港通、人民幣兌換取消上限、港珠澳大橋、口岸連結、高鐵等，「該給的還會照樣給」，但今後不會再送「大禮」，也不會為遷就香港，限制內地其他城市的發展。//
2. //…消息稱，中央不願將清場與滬港通聯繫起來，是不希望被反對派和佔領者摸到「底牌」，同時也避免引起佔中者更大反彈。如果香港警方能夠保證一舉敉平佔中活動，不留後患，北京當然樂見；但萬一稍有差池，釀成大亂，則還不如按兵不動。特別是下月適逢澳門回歸15周年，國家主席習近平將親赴澳門，再送大禮，中央不希望香港佔中者過海搞事，故愈臨近12月20日，就愈不希望有亂子發生。//
3. // …此外，消息透露，中央目前的香港事務日常工作仍由全國人大委員長張德江操盤，但重大事件皆由習近平拍板。其他人如總理李克強、副總理汪洋並未涉入，即使擔任港澳協調小組副組長的國家副主席李源潮，也非重要角色。一個多月來，張德江曾數次親臨設在深圳麒麟山莊的前線總指揮部，而坐鎮深圳的是國務院港澳辦主任王光亞和中聯辦主任張曉明。//
4. //至於不把香港佔領問題看作「顏色革命」的問題，中央開始的確有些緊張，怕運動向內地蔓延，但出乎意料的是，佔中以來，內地民間輿論除極少數人外，幾乎一面倒地反對佔中，這可能與近年香港「反蝗蟲」、限奶令等活動形成的逆反情緒有關，令中央鬆了一口氣。因此，中央判斷佔中活動不可能發展成顏色革命，對內地影響有限，這也是中央不急於清場的原因之一。消息人士稱，中央今次決心不退讓，是因為覺得從2003年23條立法到2011年國教風波，中央已一退再退，今次退無可退。1997年回歸前，英國人也錯判形勢，認為中方不敢拆毁直通車，但面對彭定康的三違反政改，中方亦不惜另起爐灶，成立臨立會，現時中國國力與那時已非同日可語，故今次中央亦作最壞打算，絕不退讓。// Source: Mingpao