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China Takes Control of Strategic Pakistani Port

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Photo Credit: Shakil Adil ISLAMABAD (AP) — China took over operational control of a strategic deep-water Pakistani seaport Monday that could serve as a vital economic hub for Beijing and perhaps a key military outpost.

Control of Gwadar port on Pakistan’s southwestern coast was transferred to a state-owned Chinese company, China Overseas Ports Holding Company Ltd., in a signing ceremony in Islamabad that was broadcast on TV.

Gwadar will soon be a “hub of trade and commerce in the region,” Pakistani President Asif Ali Zardari said at the ceremony. “It holds the key to bring together the countries of Central Asia” and will further improve Pakistan-China relations, he said.

China paid much of the $250 million originally needed to construct the port, which was previously run by Port of Singapore Authority. It has been a commercial failure since it opened in 2007 because Pakistan never completed the road network to link Gwadar to the rest of the country.

The port on the Arabian Sea occupies a strategic location between South Asia, Central Asia and the Middle East. It lies near the Strait of Hormuz, gateway for about 20 percent of the world’s oil.

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Iceland Considers Pornography Ban

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Photo Credit: AlamyThe government is considering introducing internet filters, such as those used to block China off form the worldwide web, in order to stop Icelanders downloading or viewing pornography on the internet.

The unprecedented censorship is justified by fears about damaging effects of the internet on children and women.

Ogmundur Jonasson, Iceland’s interior minister, is drafting legislation to stop the access of online pornographic images and videos by young people through computers, games consoles and smartphones.

“We have to be able to discuss a ban on violent pornography, which we all agree has a very harmful effects on young people and can have a clear link to incidences of violent crime,” he said.

Methods under consideration include blocking access to pornographic website addresses and making it illegal to use Icelandic credit cards to access pay-per-view pornography. A law forbidding the printing and distribution of pornography is already in force in Iceland but it has yet to be updated to cover the internet.

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Are China And Japan Moving Closer To War? Japan Proposes Military Hotline With China (+video)

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Photo Credit: extinctionprotocal.comTanks, one by one, moving along a main road in China’s coastal Fujian province. Driving up speculations that the Chinese military may be warming up for war. Local residents took these pictures between February 3 to February 6. At times, the line of tanks and artillery blocked traffic for several miles. And it wasn’t just in Fujian province.

These military vehicles were spotted further up the coast, in neighboring Zhejiang province. According to dissident website, molihua.org, these tanks in Hubei province are being transported from a military base to the coast. The troop movements come after months of escalating tensions between China and Japan over the disputed territory of the Diaoyun, or Senkaku islands and they’re known in Japan. It’s caused international worries that the two countries may be on the cusp of war.

Both sides have scrambled jets and warships in the region. In January, during naval exercise near the disputed waters, Chinese warships reportedly directed their targeting radar at a Japanese vessel. On February 7, State-run Global Times published this article saying there is a “serious possibility” a military conflict may flare up between China and Japan. It continues to say that fewer and fewer people are hopeful for a peaceful resolution to the Diaoyu Island crisis. Are we in a countdown to war between China and Japan? NTD will continue to keep you posted as the situation develops.

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North Korea Conducts Third Nuclear Test, Drawing New Sanctions Threat

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North Korea conducted its third nuclear test on Tuesday in defiance of U.N. resolutions, angering the United States and Japan and likely to infuriate its only major ally, China, and increase penalties against Pyongyang.

The North said the test had “greater explosive force” than the 2006 and 2009 tests that were widely seen as small-scale. Its KCNA news agency said it had used a “miniaturized” and lighter nuclear device, indicating that it had again used plutonium which is more suitable for use as a missile warhead.

North Korean leader Kim Jong-un, the third of his line to rule the country, has now presided over two long-range rocket launches and a nuclear test during his first a year in power, pushing policies that have propelled his impoverished and malnourished country ever closer to becoming a nuclear weapons power.

U.S. President Barack Obama said the test was a “highly provocative act” that hurt stability in the region and called its nuclear program a threat to U.S. and international security.

“The danger posed by North Korea’s threatening activities warrants further swift and credible action by the international community. The United States will also continue to take steps necessary to defend ourselves and our allies,” Obama said in a statement.

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China Eclipses U.S. as Biggest Trading Nation Measured in Goods

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China surpassed the U.S. to become the world’s biggest trading nation last year as measured by the sum of exports and imports of goods, official figures from both countries show.

U.S. exports and imports of goods last year totaled $3.82 trillion, the U.S. Commerce Department said last week. China’s customs administration reported last month that the country’s trade in goods in 2012 amounted to $3.87 trillion.

China’s growing influence in global commerce threatens to disrupt regional trading blocs as it becomes the most important commercial partner for some countries. Germany may export twice as much to China by the end of the decade as it does to France, estimated Goldman Sachs Group Inc.’s Jim O’Neill.

“For so many countries around the world, China is becoming rapidly the most important bilateral trade partner,” O’Neill, chairman of Goldman Sachs’s asset management division and the economist who bound Brazil to Russia, India and China to form the BRIC investing strategy, said in a telephone interview. “At this kind of pace by the end of the decade many European countries will be doing more individual trade with China than with bilateral partners in Europe.”

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Fed’s Holdings of U.S. Gov’t Debt Hit Record $1,696,691,000,000; Up 257% Under Obama

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Photo Credit: AP In data released Thursday afternoon, the Federal Reserve revealed that its holdings of U.S. government debt had increased to an all-time record of $1,696,691,000,000 as of the close of business on Wednesday.

The Fed’s holdings of U.S. government debt have increased by 257 percent since President Barack Obama was first inaugurated on Jan. 20, 2009, and the Fed is currently the single largest holder of U.S. government debt.

As of the end of November, according to the U.S. Treasury, entities in Mainland China owned about $1,170,100,000,000 in U.S. government debt, making China the largest foreign holder of U.S. government debt.

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Has China Quietly Joined the Currency War?

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Photo Credit: Getty ImagesChina has been less vocal than other major economies in recent weeks in voicing discontent about a sharp slide in the yen, which means stronger currencies elsewhere. Yet, Beijing is taking action of its own to head off unwanted pressure on the yuan to appreciate.

The Chinese yuan, also known as the renminbi, fell on Thursday to its weakest level since late December. In fact, the yuan has been creeping down since January 14, when it hit a record high against the U.S. dollar at about 6.21, as China’s central bank steps up its intervention in the foreign exchange markets to curb yuan appreciation.

“It is disappointing for anyone looking for yuan gains,” said Sean Callow, senior currency strategist at Westpac Bank in Sydney. “The leash on the yuan has been tightening, probably because of the decline in the yen and also the decline in the (South Korean) won and the Taiwan dollar and in that environment it’s tough for China to allow currency gains that would hurt its competitive edge.”

The yen has tumbled against all major currencies since the start of the year, falling roughly 10 percent against the dollar and the euro, amid growing expectations of aggressive monetary policy from Japan, now on a concerted bid to revive a weak economy and end years of deflation.

The won meanwhile has eased about 2.5 percent against the dollar since the start of 2013, while the Taiwan dollar is down about 2 percent.

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U.S. For Sale: Obama Lets China Gobble Up U.S. Energy

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Photo Credit: abangbay @ MalaysiaOil And Politics: Beijing plays the debt card as the Obama administration quietly lets China acquire major ownership interests in oil and natural gas resources across the U.S. at the same time it blocks the Keystone pipeline.

Normally, foreign investment in the U.S. is to be welcomed. It creates jobs, boosts economic growth and promotes trade and exports.

But when that investor is an ambitious and increasingly belligerent China to whom we owe over a trillion dollars, eyebrows and concerns need to be raised.

Reversing a Bush administration policy, the Obama administration is encouraging Beijing to acquire equity interests in U.S. energy. In 2005, the Bush administration blocked China on grounds of national security from buying California-based Unocal Corp. for $18.4 billion.

That was then, and this is now.

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Obama Admin Approves Sale of Sensitive Military Technology to China

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A Chinese company will take charge of sensitive military and battery technology following the Treasury Department’s decision on Tuesday to permit the sale of a U.S. company that was bankrolled with tax dollars to the Shanghai-based Wanxiang firm.

The Committee on Foreign Investment in the United States (CFIUS) approved the $256 million sale of A123 Systems’ operation, despite warnings from military insiders and lawmakers on Capitol Hill that the sale presents a danger to national security.

A123 Systems, which went bankrupt despite the Obama administrations’ $249 million in green energy funding to produce advanced lithium ion batteries, controls 91 patents for the sensitive technology.

“The approved sale marks yet another step in the coordinated strategy by foreign countries to acquire leading U.S. companies who are researching, developing and producing critical technologies,” said Dean Popps, co-chairman of the Strategic Materials Advisory Council. “CFIUS itself has recognized this strategy but continues to fail to do anything to prevent it.” The committee has not made public its rationale for the decision.

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China and North Korea Assisting Egypt in Modernization of Missile Systems

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China is covertly working with North Koreans to modernize Egypt’s short-range missile systems, raising new concerns among United States intelligence officials about the arms programs of the Muslim Brotherhood-affiliated government in Egypt.

A group of technicians from China’s premier missile manufacturer that was previously sanctioned by the U.S. government for illicit arms transfers are working in Egypt with North Koreans to modernize Cairo’s Scud missile force.

According to U.S. intelligence officials, reports of the missile technicians from the Beijing-based China Precision Machinery Import-Export Corp. (CPMIEC) are raising new concerns about U.S. plans to sell arms to the government of Egyptian President Mohamed Morsi.

The missile activities were detected in connection with Egypt’s Sakr Factory, the main missile production facility that makes Egypt’s Scud-Bs and extended-range Scud Cs.

An Egyptian military official had no immediate comment on the missile support from China and North Korea. A State Department spokesman declined to comment.

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