Ukraine-All Options Are On The Table

The Ukraine crisis has been at the top of the news for almost four months now. It began on November 21,2013 when then president Victor Yanukovich abandoned a trade agreement with the European Union. This was followed by months of protest and finally resulted in the deposing of Yanukovich accompanied shortly thereafter by aggressive military moves by Russia. The crisis continues to simmer. The key now is the Crimea region, with its majority of ethnic Russians and Russian speakers. Russia’s vested interest not just in its fellow Russians, but also in its naval base at Sevastopol, headquarters for it Black Sea fleet. The question now is: What next? Will the Crimea region succeed from Ukraine, and will the two countries go to war over the Crimea? Will the people of the region vote to affiliate with Russia? And will the EU and the world powers allow this? Will the matter be settled peacefully and soon, or will it drag on and deteriorate into armed conflict? Let us know your views on this question.

 

China-Japan-Korea FTA: Still Talking But…

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The fourth round of China-Japan-Korea trilateral Free Trade Agreement (FTA)  talks ended on March 7 in Seoul without much progress. China’s Xinhua reported that the talks dealt with substantive issues relating to tariff reduction, opening service trade and investment. No breakthrough was made on what would be an historic agreement affecting the three dynamic economies. The three account for 20% of global gross domestic product  and 17.5 % of global trade.

Trilateral trade negotiations were first discussed at the 2012 meeting of the Trilateral Summit.  After the nationalization of the Diaoyu/Senkaku islands, the political climate has deteriorated. Continued territorial and historical disputes have only increased tensions and heightened distrust among the parties. Despite a charged and gloomy atmosphere, talks have continued to be held, and some measurable progress has been made. The next round of talks in 2014 is scheduled to be held in China in July.

(Map: Wikipedia Commons)

Nixon-Zhou Shanghai Communique Turns 42

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                               By David Parmer / Tokyo

February 27, 2014 marks the 42nd anniversary of the historic Shanghai Communique between the United States of America and the People’s Republic of China. Signed in Shanghai’s historic Jin Jiang Hotel, the document was a start in the resumption of relations between the two former WWII allies. What made then President Nixon’s trip even more important was the fact that Nixon was both a conservative and an anti-Communist. At the same time, both Mao Tse-tung and Zhou Enlai were in ill health and at the end of their long and storied careers. What makes the document itself especially interesting is its language, and the tone of “agreeing to disagree.”  These days our news comes to us interpreted by various people-we get their opinions rather than straight fact. For this reason, we publish the Shanghai Communique in its entirety below. You can read it in a few minutes and make up your own mind about history. Any comments? Please post below.

   (U.S. Department of State-Office of the Historian)

President Richard Nixon of the United States of America visited the People’s Republic of China at the invitation of Premier Chou Enlai of the People’s Republic of China from February 21 to February 28, 1972. Accompanying the President were Mrs. Nixon, U.S. Secretary of State William Rogers, Assistant to the President Dr.Henry Kissinger, and other American officials.

President Nixon met with Chairman Mao Tse-tung of the Communist Party of China on February 21. The two leaders had a serious and frank exchange of views on Sino-U.S. relations and world affairs.

During the visit, extensive, earnest, and frank discussions were held between President Nixon and Premier Chou En-lai on the normalization of relations between the United States of America and the People’s Republic of China, as well as on other matters of interest to both sides. In addition, Secretary of State William Rogers and Foreign Minister Chi P’eng-fei held talks in the same spirit.

President Nixon and his party visited Peking and viewed cultural, industrial and agricultural sites, and they also toured Hangchow and Shanghai where, continuing discussions with Chinese leaders, they viewed similar places of interest.

The leaders of the People’s Republic of China and the United States of America found it beneficial to have this opportunity, after so many years without contact, to present candidly to one another their views on a variety of issues. They reviewed the international situation in which important changes and great upheavals are taking place and expounded their respective positions and attitudes.

The U.S. side stated: Peace in Asia and peace in the world requires efforts both to reduce immediate tensions and to eliminate the basic causes of conflict. The United States will work for a just and secure peace: just, because it fulfills the aspirations of peoples and nations for freedom and progress; secure, because it removes the danger of foreign aggression. The United States supports individual freedom and social progress for all the peoples of the world, free of outside pressure or intervention. The United States believes that the effort to reduce tensions is served by improving communication between countries that have different ideologies so as to lessen the risks of confrontation through accident, miscalculation or misunderstanding. Countries should treat each other with mutual respect and be willing to compete peacefully, letting performance be the ultimate judge. No country should claim infallibility and each country should be prepared to re-examine its own attitudes for the common good. The United States stressed that the peoples of Indochina should be allowed to determine their destiny without outside intervention; its constant primary objective has been a negotiated solution; the eight-point proposal put forward by the Republic of Vietnam and the United States on January 27, 1972 represents a basis for the attainment of that objective; in the absence of a negotiated settlement the United States envisages the ultimate withdrawal of all U.S. forces from the region consistent with the aim of self-determination for each country of Indochina. The United States will maintain its close ties with and support for the Republic of Korea; the United States will support efforts of the Republic of Korea to seek a relaxation of tension and increased communication in the Korean peninsula. The United States places the highest value on its friendly relations with Japan; it will continue to develop the existing close bonds. Consistent with the United Nations Security Council Resolution of December 21, 1971, the United States favors the continuation of the ceasefire between India and Pakistan and the withdrawal of all military forces to within their own territories and to their own sides of the ceasefire line in Jammu and Kashmir; the United States supports the right of the peoples of South Asia to shape their own future in peace, free of military threat, and without having the area become the subject of great power rivalry.

The Chinese side stated: Wherever there is oppression, there is resistance. Countries want independence, nations want liberation and the people want revolution–this has become the irresistible trend of history. All nations, big or small, should be equal; big nations should not bully the small and strong nations should not bully the weak. China will never be a superpower and it opposes hegemony and power politics of any kind. The Chinese side stated that it firmly supports the struggles of all the oppressed people and nations for freedom and liberation and that the people of all countries have the right to choose their social systems according to their own wishes and the right to safeguard the independence, sovereignty and territorial integrity of their own countries and oppose foreign aggression, interference, control and subversion. All foreign troops should be withdrawn to their own countries.

The Chinese side expressed its firm support to the peoples of Vietnam, Laos, and Cambodia in their efforts for the attainment of their goal and its firm support to the seven-point proposal of the Provisional Revolutionary Government of the Republic of South Vietnam and the elaboration of February this year on the two key problems in the proposal, and to the Joint Declaration of the Summit Conference of the Indochinese Peoples. It firmly supports the eight-point program for the peaceful unification of Korea put forward by the Government of the Democratic People’s Republic of Korea on April 12, 1971, and the stand for the abolition of the “U.N. Commission for the Unification and Rehabilitation of Korea.” It firmly opposes the revival and outward expansion of Japanese militarism and firmly supports the Japanese people’s desire to build an independent, democratic, peaceful and neutral Japan. It firmly maintains that India and Pakistan should, in accordance with the United Nations resolutions on the India-Pakistan question, immediately withdraw all their forces to their respective territories and to their own sides of the ceasefire line in Jammu and Kashmir and firmly supports the Pakistan Government and people in their struggle to preserve their independence and sovereignty and the people of Jammu and Kashmir in their struggle for the right of self-determination.

There are essential differences between China and the United States in their social systems and foreign policies. However, the two sides agreed that countries, regardless of their social systems, should conduct their relations on the principles of respect for the sovereignty and territorial integrity of all states, nonaggression against other states, noninterference in the internal affairs of other states, equality and mutual benefit, and peaceful coexistence. International disputes should be settled on this basis, without resorting to the use or threat of force. The United States and the People’s Republic of China are prepared to apply these principles to their mutual relations.

With these principles of international relations in mind the two sides stated that:

–progress toward the normalization of relations between China and the United States is in the interests of all countries;

–both wish to reduce the danger of international military conflict;

–neither should seek hegemony in the Asia-Pacific region and each is opposed to efforts by any other country or group of countries to establish such hegemony; and

–neither is prepared to negotiate on behalf of any third party or to enter into agreements or understandings with the other directed at other states.

Both sides are of the view that it would be against the interests of the peoples of the world for any major country to collude with another against other countries, or for major countries to divide up the world into spheres of interest.

The two sides reviewed the long-standing serious disputes between China and the United States. The Chinese side reaffirmed its position: The Taiwan question is the crucial question obstructing the normalization of relations between China and the United States; the Government of the People’s Republic of China is the sole legal government of China; Taiwan is a province of China which has long been returned to the motherland; the liberation of Taiwan is China’s internal affair in which no other country has the right to interfere; and all U.S. forces and military installations must be withdrawn from Taiwan. The Chinese Government firmly opposes any activities which aim at the creation of “one China, one Taiwan,” “one China, two governments,” “two Chinas,” and “independent Taiwan” or advocate that “the status of Taiwan remains to be determined.”

The U.S. side declared: The United States acknowledges that all Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China. The United States Government does not challenge that position. It reaffirms its interest in a peaceful settlement of the Taiwan question by the Chinese themselves. With this prospect in mind, it affirms the ultimate objective of the withdrawal of all U.S. forces and military installations from Taiwan. In the meantime, it will progressively reduce its forces and military installations on Taiwan as the tension in the area diminishes.

The two sides agreed that it is desirable to broaden the understanding between the two peoples. To this end, they discussed specific areas in such fields as science, technology, culture, sports and journalism, in which people-to-people contacts and exchanges would be mutually beneficial. Each side undertakes to facilitate the further development of such contacts and exchanges.

Both sides view bilateral trade as another area from which mutual benefit can be derived, and agreed that economic relations based on equality and mutual benefit are in the interest of the people of the two countries. They agree to facilitate the progressive development of trade between their two countries.

The two sides agreed that they will stay in contact through various channels, including the sending of a senior U.S. representative to Peking from time to time for concrete consultations to further the normalization of relations between the two countries and continue to exchange views on issues of common interest.

The two sides expressed the hope that the gains achieved during this visit would open up new prospects for the relations between the two countries. They believe that the normalization of relations between the two countries is not only in the interest of the Chinese and American peoples but also contributes to the relaxation of tension in Asia and the world.

President Nixon, Mrs. Nixon and the American party expressed their appreciation for the gracious hospitality shown them by the Government and people of the People’s Republic of China.

Taiwan Taoyuan Aims To Become Regional Hub

TaoYuan Airport.jpg                    (Taoyuan- Airport.com)

Taiwan has ambitious plans for a new, regional air hub to be named “aerotropolis.” The venue will be Taiwan’s Taoyuan airport which will get a third terminal and see the creation of an industrial park and a pilot free trade zone. South China Morning Post reports that the project will encompass over 7,000 hectares and will be the biggest infrastructure project in 30 years.

The project which has been on hold since 1990 looks like it will now gather momentum. A steady flow of mainland visitors and the influx of tourist brought by the ever-growing budget airline sector has created the need for increased capacity and spurred the development project. However, what really seems to have given the project the green light is agreement by the PRC to give real consideration to the feasibility of transit stops for Chinese airlines heading to other destinations such as New Zealand, Australia and the U.S. Such transit stops would also relieve pressure from Beijing and Shanghai airports. China’s agreement to study the issue was made in meetings held in Changsha, PRC on February 20-21, 2014 held for the purpose of better implementing existing accords between the two countries.

Want China Times reported that on February 16, 2014, Taiwan’s president, Ma Ying-jeou visited the port of Taiwan and spoke of plans for a smart distribution system to revolutionize business and support the pilot free trade zones

Bitcoin-The New Face of Money?

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 Thanks mostly to the Internet, money is flowing in new ways and in new forms. From credit cards we have moved to PayPal for peer to peer and business to customer transactions. Now there are companies like Square that permit small businesses to easily accept credit card payments. And the newest form that money is taking is Bitcoin, digital or cryptocurrency that allows anonymous, peer-to-peer currency transactions globally that bypasses the traditional banking system. Users need to obtain a “wallet” (software) and then they can purchase coins with real cash from a Bitcoin exchange. After that they can exchange Bitcoins peer to peer. Needless to say, the Bitcoin has caused a stir worldwide with governments struggling to create policy to match the virtual currency. In many countries in the EU provisions are in place to regulate the currency under existing barter and tax laws. Russia has banned the virtual currency outright, citing its potential for use in illegal activities and use by terrorists. China has cracked down on Bitcoin use, driving the price of the currency down, and Alibaba, China’s leading online retailer has banned the currency. In Japan, Bitcoin exchange Mt.Gox has gone offline citing security issues, and here too the price has plummeted and coinholders can not withdraw their funds. So safety, volatility and price fluctuation are a big concern for this new currency. Once valued at around $1,000,  Bitcoin is now exchanged at around $650 in some parts of the world.  So, new money-have you hear of it? What do you think? Will all money be virtual in the future? Post your opinion below.

Man of Mystery–DPRK’s Kim Jong-un

 

                              by David Parmer

Kim Jong-un was born on January 8,1983. Or maybe he wasn’t. Kim is married to Ri Sol-ju and they have a daughter, or maybe they don’t. Kim went to school in Switzerland, or was that his brother? Kim likes basketball, is “friends” with former Michael Jordan teammate Dennis Rodman, and is the supreme leader of the Democratic People’s Republic of Korea and is Marshal of a huge military machine that has medium and long range missiles and a growing nuclear capability.

Kim had his uncle Jang Song-taek executed either by machine gun or by throwing him to a pack of hungry dogs, or maybe he didn’t. Jang’s widow and Kim’s aunt, Kim Kyong-hui first disappeared, then either died of an heart attack or killed herself. Or maybe she didn’t.  At the same time Kim cleaned house by removing the close circles of advisers of his late father Kim Jong-il. Kim had a female pop star executed for producing “pornographic” videos. The pop group had earlier been formed by Kim himself. Kim attended Kim Il-sung University and studied physics and went on to Kim Il-sung Military University for officer training. Kim has spent huge sums on luxury goods. Kim’s “pet project” was a recently-completed ski resort. Since 2011 Kim has ruthlessly been consolidating his hold on power in the DPRK. Kim looks like he could use a little more exercise.  Kim could one day find himself in the dock at the World Court in the Hague for human rights violations. Kim Jong-un is an enigma. Some of the above is true.

Photo: Rodong Shinmun

 

Kerry’s Valentines Message in Bejing

U.S. Secretary of State John Kerry was on the China leg of his latest Asia trip this week. On Friday he met with Chinese leaders to discuss a number of important regional issues, the chief one being North Korea. While both parties traded jabs on some issues, i.e. the Chinese asking for some cooperation in reigning-in Japan’s right wing factions, and the U.S. pointing the finger at China’s Tibet and Uighur problems, there was agreement on the need for cooperation on the North Korean nuclear issue. Media reports had Kerry as being optimistic, and had Kerry suggesting some give and take could come about if a solution could be reached. Looming in the background are the Six Party talks, and North Korean hints that maybe they are willing to talk again. So what really happened in Beijing? Was any real progress made, and will China pressure Pyongyang to sit down, talk and take action? Add your comments below.

Tencent-A Name To Learn

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                      by David Parmer

If you haven’t heard of China’s Internet giant Tencent, and don’t recognize its winking penguin, then you probably don’t live in China or follow IT very closely. But for millions of Chinese (and now increasingly those in other countries) Tencent is their Internet  company of choice for one service or another. Some sources list Tencent as the world’s fourth largest Internet player after Google, Amazon, and eBay. It is certainly in the top 10. 

And the question seems to be not what Tencent does, but what it doesn’t do. The answer to that is: not much. Tencent is ubiquitous-if there is an Internet service that can be provided Tencent provides it, has provided it, or will shortly provide it.

These include:

  • Instant messaging
  • Online media
  • Wireless Interned value added services
  • e-commerce
  • Online advertising
  • Street views
  • Payment solutions
  • Smart TV
  • Virtual currency

 The company was founded in 1998 by Huateng “Pony” Ma, a 1993 graduate of Shenzhen University. The story goes that Ma saw AOL messaging, and realized that there was no such service in China and created the first Chinese language messaging service, QQ.  The service was hugely successful and lead the company into online gaming, a revenue spinner that still provides a large portion of the company’s income. The timeline below shows Tencent’s steady and profitable growth in a few short years.

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Tencent has gone from success to success. In January 2011 Tencent, sensing the industry-wide move to mobile devices, launched “Weixin” a mobile voice and text application. It added international support and changed the name to We Chat in 2012.

The application can be used to send and receive text messages, send and receive voice messages, photos and group messages. GPS enables users to find other users, and QR codes can be used to find friends.  In 2014, Tencent will offer Smart TV which will permit program selection and controls, offer payment solutions and let users control TV with their WeChat application. 

 So what does Tencent do? As you can see, when it comes to the Internet, almost everything. And along the way, it has made Pony Ma one of the richest men in China.

  

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Tencent website English   http://www.tencent.com/en-us/

iTunes Store WeChat (Free) https://itunes.apple.com/us/app/wechat/id414478124?mt=8

CNN: Tencent China’s Hottest Tech Company:http://money.cnn.com/2014/01/08/technology/tencent/

Photo: TechRice.com

Tea or Coffee?

What do you prefer? Asia’s traditional drink of choice- tea, served hot, iced or with lots of milk and sugar, or sipped solemnly in a ceremonial way. Or coffee in the form of Latte, Mocha, American or espresso? Do you drink tea or coffee exclusively, or does it depend on the time and place? Give us your thoughts below.

Asia Has Its Cup of Joe

                                            

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                                    (Starbucks Coffee, Shibuya Tokyo- Wikimedia)

 If you asked people in other parts of the world what drink Asians favor most, the answer would probably be “tea.” And traditionally, that has been true. But coffee has been making inroads in Asia for more than 100 years. And these days coffee culture has spread  across the region from Tokyo to Jakarta, to Seoul, and Sydney. The story these days is about Asians growing and consuming coffee in record amounts. In 2014 a unique situation exists, where supply approaches over-supply, yet demand continues to increase. By country, the Asian coffee scene looks like this.

Korea: Korea’s coffee industry has doubled over the last five years with an explosion in import and consumption, making it the largest coffee market in the world.

Vietnam: is ranked by Bloomberg as #2 world coffee producer by volume and #1 producer of the Robusta variety used for instant coffee beverages.

Indonesia: is the #4 world coffee producer after Vietnam. 10% of its crop is premium Arabica variety. Indonesian coffee has an excellent reputation.

India: is listed by Bloomberg as the #5 coffee producer. It now accounts for 25% of Asian coffee. 50% of its output is the Arabica variety.

Philippines: The Philippines produces mostly the Robusta variety and is now the third largest Asian producer and # 16 among world coffee providers.

China: While coffee drinking continues to increase in China among the young, coffee production in China remains limited to Yunan in southwest China and to areas along the Vietnam border.

Australia: Is said to import in excess of 50,000 tons of coffee, while it produces 600 tons, 50% of which is exported.

Japan: while Japan does not produce coffee, the coffee business is booming. Japan: has a mature coffee culture dating back to the end of WWII. Japanese are great consumers of instant coffee and single serving coffee.

(Sources: Costa Rica Gourmet Coffee, Bloomberg, Coffee Expo Seoul 2014)