Category: China

Over at One Free Korea there is a good posting up about how the Senate in a bi-partisan manner recently grilled State Department officials about the lack of sanctions against Chinese banks:

 

I’ve never worked in the Senate, so I wouldn’t know if that’s standard procedure there, but past hearings I’ve watched didn’t run this well. Gardner himself was in complete command of both the material and the room, and gave every appearance of being a man with limitless potential. Indeed, all of the senators were well-prepared. All, regardless of their party or tribal affiliations, asked good or excellent questions. 

In the end, however, no one can hurt you more than the people who love you. At 58:17, Senator Menendez began questioning Fried by arguing for secondary sanctions against Chinese banks. He then embarked on a well-prepared, determined, and lawyerly cross-examination of Fried about this. Pressured by Menendez’s questioning and clearly unsure of his material, Fried told Menendez that Dandong Hongxiang was a bank (not true). I don’t think Fried was lying, but he didn’t have command of the facts, and when he got out of his depth, he swam into a rip current. Mendendez pinned Fried down on his answer. Then, when his time expired, he went back and pulled Treasury’s announcement, probably talked to his staff, and confirmed that this wasn’t true. At 1:35:30, Menendez returned, rearmed. This, ladies and gentlemen, is what it’s like to have a bad day in the United States Senate.  [One Free Korea]

You can read the transcript at the link of the bad day Mr. Daniel Fried, the State Department’s Coordinator for Sanctions Policy had being grilled by the Senate.  The fact that he did not immediately know that the Treasury Department has not sanctioned any Chinese banks is worrisome.

If Donald Trump does become President I think he will find out the same frustrations many other people have had in regards to trying to get China to fix North Korea:

Donald Trump said during the first presidential debate that “China should go into North Korea” to halt that country’s nuclear program and control its unpredictable leader, Kim Jong Un.

“China should solve the problem for us,” Trump said in Monday night’s debate. “China is totally powerful when it comes to North Korea.”

While China does hold a lot of sway over its belligerent communist neighbor and ally, what the Republican candidate said is very unlikely to happen. Here’s why:

• China is North Korea’s protector, chief trading partner and economic lifeline.Although China condemned North Korea’s latest nuclear weapons test on Sept. 9 — and agreed to sanctions in response to a test in January — Beijing shows no signs that it will actually crack down on North Korea.  [USA Today]

You can read the rest at the link, but from the Chinese perspective it makes perfect sense to back North Korea.  There would have to be major strategic shifts in the region for China to remove the Kim regime.

She is probably one of many Chinese companies aiding the North Korean regime.  However, she for whatever reason may be the one being used by Beijing to show the US that the Chinese are “doing something” to rein in North Korea:

A Chinese businesswoman under U.S. scrutiny for her alleged role in aiding North Korea’s nuclear program is also a suspect in a Chinese criminal investigation into her trading business, a corporate filing shows.

Friday’s disclosure about Ma Xiaohong is the first to tie her to a criminal investigation. Police in the northeastern Chinese province of Liaoning said earlier this month that they were investigating the trading firm that Ms. Ma founded, Hongxiang Industrial Development Co., for alleged “serious economic crimes,” without naming her.  (………………)

The investigation into Ms. Ma and her company appears to mark a new effort by U.S. and Chinese authorities to pursue Chinese businesses that are suspected of supporting North Korea’s nuclear-weapons program. The U.S. and China have often sparred over how best to rein in North Korea.

Earlier this month, Pyongyang conducted its fifth atomic test in a decade.

Liaoning police announced their investigation after prosecutors from the U.S. Department of Justice made two trips to Beijing last month to alert Chinese officials about alleged activities by Ms. Ma and Hongxiang Industrial, The Wall Street Journal reported this week.

The Justice Department cited alleged evidence that the businesswoman and her company had aided Pyongyang’s nuclear program and its efforts to evade United Nations and Western sanctions, according to U.S. officials.

It isn’t known if the Liaoning police probe is related to the U.S. allegations.  [Wall Street Journal]

You can read more at the link.

This deep-dive on China’s South China Sea expansion, via @tshugart3 + @CNASdc + @WarOnTheRocks worth reading in full https://t.co/ZTBeexeKHs

— Max Fisher (@Max_Fisher) September 21, 2016

Holy-shit map of the day: China has area-denial capability over most of the South China Sea https://t.co/ZTBeexeKHs pic.twitter.com/jhxhcs3mky

— Max Fisher (@Max_Fisher) September 21, 2016

China says opposes 'unhelpful' unilateral North Korea sanctions | Reuters https://t.co/sfZrYldnYS

— S. Kleine-Ahlbrandt (@ska_kongshan) September 15, 2016

Fortunately the article that sparked the controversy was just a Chinese style Onion click bait site which I am not going to provide a link to.  However, it shows the ridiculousness of China’s recent territorial claims that people were actually taking it seriously for a while:

Even though the map and article were someone’s attempt at a little fun, there is a larger point. China’s use of maps, passports and other mapfare-style methods of pushing a narrative of rightful territorial claims whether over Taiwan or the 9 or actually 10-dash-line in the South China Sea and others areas has been part of Beijing’s toolkit for sometime now. The fact that none of us at the conference were shocked speaks volumes to the now ingrained perception of China on the international stage as a power bent on changing the status-quo—no matter what the cost. A reputation as some sort of rogue state is a tough thing in international politics to change—and it’s something Beijing should bare in mind.  [National Interest]

You can read more at the link.

I think this article makes a good point that the more the Chinese government complains, the more it creates a selling point for Lockheed Martin to other potential customers about how effective the THAAD system is:

According to The Wall Street Journal, 74% of South Koreans supported the installation of the THAAD missile shield, but there is opposition primarily focussed on strained relations with China, the South’s largest economic partner.

Other opposition is coming from areas where the THAAD system will be deployed and environmentalists concerned about health hazards and other environmental impacts.

Lockheed, however, may eventually benefit from North Korea’s latest launches if the South increases the size of its order or even if it can parlay China’s fears about the system into a selling point to other customers.  [24/7 Wall Street]

You can read more at the link.

South Korean President Park Geun-hye (L) shakes hands with her Chinese counterpart Xi Jinping prior to their summit talks in Hangzhou, eastern China, on Sept. 5, 2016. The meeting came amid strains in their relations over the planned deployment of a U.S. anti-missile system, the Terminal High Altitude Area Defense (THAAD) system, in South Korea. (Yonhap)

Via a reader tip comes this news of how the Chinese flew three aircraft into the ROK’s air defense identification zone:

South Korean forces scrambled fighter jets to escort three Chinese military planes after they entered an overlapping air defence zone. The Chinese aircraft are reported to have flown into the airspace on Thursday, 18 August near South Korea’s island of Jeju without alerting authorities in Seoul.

Beijing’s aircraft, which included a bomber, quickly left the airspace after South Korean authorities issued a warning and dispatched the fighter jets, a military source told South Korea’s Yonhap news agency.  [IB Times]

You can read more at the link, but I agree with the article’s assessment that the Chinese are militarily showing their displeasure against the ROK’s decision to deploy THAAD to South Korea.