Caucus Brief: China Navy Reaches Far, Unsettling the Region

CHINA NAVY REACHES FAR, UNSETTLING THE REGION.  Last week China conducted a naval exercise involving sailing Chinese ships through the Japanese islands of Okinawa and Miyako.  The People's Liberation Army asserts that this exercise was regularly scheduled and was in compliance with international law.  In recent weeks Vietnam, the Philippines and Japan have voiced concerns over Chinese nautical movements in which Chinese vessels have deployed ships into disputed waters.  In Japan this most recent Chinese exercise was reminiscent of a large Chinese flotilla that passed near Okinawa last year.  http://www.nytimes.com/2011/06/15/world/asia/15china.html

CHINA DISPATCHES PATROL SHIP TO SINGAPORE AMID S. CHINA SEA TENSIONS.  China has dispatched one of its largest maritime patrol ships on a first-ever visit to Singapore, amid a spike in tensions over disputed territory in the South China Sea.  The Chinese ship will stay in Singapore for two weeks of exchanges on search and rescue, anti-piracy and port management operations.  Similar Chinese ships have been accused of harassing foreign shipping in the South China Sea, including U.S. Navy surveillance vessels.  http://www.washingtonpost.com/world/asia-pacific/china-dispatches-patrol-boat-to-singapore-amid-spike-in-south-china-sea-tensions/2011/06/15/AGmRdiWH_story.html

INSECURITY AMONG CHINESE LEADERSHIP.  An article in the NYT reports that as the Chinese Communist Party prepares to celebrate its 90^th birthday this July 1^st, the crackdown on dissent and increase in police violence reveals the Party Leadership's insecurity.  The Party's control is being challenged by widespread perceptions of corruption among the Chinese people, a problem the Party admits but does not seem to know how to handle.  Kerry Brown, head of the Asia Program at Chatham House, says in the piece: "The party has long admitted that corruption is a problem.  Yet reporting on the use of violence against the people is taboo, even if the public is increasingly aware of it via the Internet."  http://www.nytimes.com/2011/06/16/world/asia/16iht-letter16.html

CHINA BACKS RUSSIA AGAINST U.S. MISSILE SHIELD.  Russia won the backing of China in criticizing U.S. plans for a missile shield, saying yesterday that it could undermine global security.  The Shanghai Cooperation Organization, a security bloc grouping of Russia, China and four ex-Soviet Central Asian states, signed a declaration condemning any unilateral build-up of missile defenses.  From the declaration: "the unilateral and unlimited build-up missile defense by a single state or by a narrow group of states could damage strategic stability and international security."  http://www.reuters.com/article/2011/06/15/us-security-usa-missiles-idUSTRE75E2JZ20110615?feedType=RSS&feedName=topNews

CORRUPT CHINESE OFFICIALS TAKE $123 BILLION OVERSEAS.  A new report out of China suggests that corrupt government officials are illegally transferring billions of dollars to banks and family overseas.  The top destinations for these officials and their money are the U.S., Canada, and Australia.  http://blogs.wsj.com/chinarealtime/2011/06/16/report-corrupt-chinese-officials-take-123-billion-overseas/

CHINA CLOSES TIBET TO FOREIGNERS AHEAD OF ANNIVERSARY.  China has closed Tibet to foreigners ahead of the 90^th anniversary of the Chinese Communist Party on July 1.  This move, most likely prompted by insecurity towards a perceived threat to one-party rule, has been planned for months.  A Beijing-based travel agent says that they have been notified of the policy but have no idea why it is being implemented.  A Beijing-based travel agent spoke to Reuters via phone: "We had to make a lot of cancellations, but we don't know the reasons behind it.  Perhaps it has to do with something political."  http://www.reuters.com/article/2011/06/16/us-china-tibet-idUSTRE75F0RO20110616

BEIJING SAYS ITS REACTORS ARE SAFE.  China has declared that all of its active nuclear reactors are safe and that the nation will move forward with plans to build a number of new power plants.  This announcement comes after China halted production of new reactors following the nuclear disaster at the Japanese Fukushima plant.  China currently has 13 nuclear power plants that were determined to be safe with 27 additional reactors currently under construction.  http://online.wsj.com/article/SB10001424052748704889404576276441421639076.html

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.

Caucus Brief: China's Cyberassault On America

CHINA'S CYBERASSAULT ON AMERICA.  In a WSJ op-ed, former national security official Richard Clarke argues that the U.S. government is not doing enough to protect against Chinese cyber attacks.  From the piece: "the administration is ignoring its primary responsibility to protect its own citizens when they are targeted for harm by a foreign government.  Senior U.S. officials know well that the government of China is systematically attacking the computer networks of the U.S. government and American corporations.  Beijing is successfully stealing research and development, software source code, manufacturing know how and government plans.  In a global competition among knowledge-based economies, Chinese cyberoperations are eroding America's advantage."  http://online.wsj.com/article/SB10001424052702304259304576373391101828876.html

U.S. SENATORS SLAM CHINA ON MILITARY PARTS PROBE.  Senators Carl Levin and John McCain, Chairman and Ranking Member of the Senate Armed Services Committee, have accused China of hampering a congressional probe into how counterfeit electronics end up in the U.S. military supply chain.  According to the Senators, China has stalled providing visas to congressional staffers trying to visit cities in China that are considered the hub of the counterfeit electronics trade.  Additionally, the Chinese government has so far required that any interviews conducted in China as part of the investigation must include a government representative, a non-starter for Senators Levin and McCain.  http://www.defensenews.com/story.php?i=6816350&c=POL&s=TOP

CHINA WARNS AGAINST MEDDLING IN S. CHINA SEA.  China's foreign ministry has announced that China will seek to resolve the region's longstanding territorial disputes with its neighbors bilaterally.  This statement came after the U.S. Ambassador to the Philippines pledged support for the Philippines "on all sectors," leading some to believe that China's statements, while not specifically mentioning the U.S., were aimed towards the West.  A U.S. embassy spokesman in Beijing classified the U.S. diplomatic approach to the dispute as reflecting the shared interests of the U.S. and its allies in the region.  http://online.wsj.com/article/SB10001424052702304665904576385234220024592.html

CHINA 'WILL NOT USE FORCE' IN SOUTH CHINA SEA DISPUTES.  Chinese foreign ministry spokesman Hong Lei said yesterday that China "will not resort to the use of force or the threat of force," and urged those involved to "do more that is beneficial to regional peace and stability."  http://www.bbc.co.uk/news/world-asia-pacific-13759253

HANOI TRIES TO EASE RIFT WITH BEIJING AFTER NAVAL EXERCISE.  http://online.wsj.com/article/SB10001424052702303714704576383220590832028.html

CHINA STAMPS OUT SOUTHERN RIOTS.  Chinese police have seemingly halted the protests in Southern China by deploying thousands of riot police armed with tear gas and shotguns.  The WSJ reports that the unrest could flare up again if authorities do not address the concerns of migrant workers.  These protests first began after police abused a pregnant migrant street vendor only days after a police in another region killed a popular local official while he was in custody.  http://online.wsj.com/article/SB10001424052702304665904576385420593195718.html

CAN BRICS TAKE THE IMF?  http://www.foreignaffairs.com/articles/67885/sebastian-mallaby/can-the-brics-take-the-imf

COLUMBIA ADVANCES TRADE PACT.  Columbian lawmakers have passed legislation intended to foster increased trade with China, as the U.S. Congress stalls the pending U.S. trade deal with Columbia.  From the WSJ piece: "Trade officials in Bogota expressed frustration with the slow pace of progress in Washington, which they say contrasts with Chinese eagerness to invest in Columbia, Washington's closest ally in South America."  http://online.wsj.com/article/SB10001424052702303848104576385912135492424.html

LEAD POISONING IN CHINA SICKENS THOUSANDS.  In recent months, case after case of mass lead poisoning have been discovered across China.  The NYT reports that many of the victims are children, as China's manufacturing sector and government have overlooked environmental contamination in search of expanding economic development.  The most recent lead poisoning case involves 239 adults and 99 children being poisoned by a nearby battery factory.  http://www.nytimes.com/2011/06/15/world/asia/15lead.html  

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.

Caucus Brief: U.S. Senator Urges U.S. Action On S. China Sea Dispute

U.S. SENATOR URGES U.S. ACTION ON S. CHINA SEA DISPUTE.  Virginia Senator Jim Webb, chairman of the Senate Foreign Relations Subcommittee on East Asia, said yesterday that the U.S. should take action to make it clear it opposes use of force by China in asserting its territorial claims in the South China Sea.  Senator Webb has been joined by Senator Inhofe in introducing a Senate resolution of condemnation for Beijing's aggressive behavior in the South China Sea.  Congressional Quarterly quotes Senator Webb: "We have to send a very clear signal to the Chinese on this issue…the interests of the U.S. and those of our allies are not well-served if we don't step forward and state our concerns.  When China uses force improperly, we should stand up.  Otherwise, we have no credibility."  http://www.cq.com/doc/news-3887058?wr=U2ZyOGV0Ymg1TTFiTXVNN1FmOVRtdw   Senate Resolution Press Release.  http://inhofe.senate.gov/public/index.cfm?FuseAction=PressRoom.PressReleases&ContentRecord_id=8b0165b5-d57e-3e59-1b49-22bfe44d3f01&Region_id=&Issue_id=

BRINKSMANSHIP IN THE S. CHINA SEA.  A piece from Foreign Policy analyzes the policies of brinkmanship that are currently being employed by Vietnam and China in the South China Sea, as well as what role the U.S. is playing.  From the piece: "The South China Sea events demonstrate that, in a fight, China cannot rely on perceptions of its ostensible place in the new age to smooth its way out of potential confrontation."  http://oilandglory.foreignpolicy.com/posts/2011/06/13/the_brinksmanship_in_the_south_china_sea

VIETNAM HOLDS LIVE-FIRE DRILL AMID CHINA TENSIONS.  DefenseNews reports that Vietnam put on a show of military force yesterday when it conducted a live-fire naval artillery drill in the midst of an ongoing territorial dispute with China.  The drill took place about 25 miles off of Vietnam's central coast and lasted around four hours.  DefenseNews quotes a regional expert from the Institute of Southeast Asian Studies in Singapore: "The exercise is designed to send China a message that Vietnam refuses to be pushed around…I think China will react very badly to this."  http://www.defensenews.com/story.php?i=6799140&c=ASI&s=TOP

CHINA RAISES BANK RESERVE REQUIREMENTS.  http://online.wsj.com/article/SB10001424052702303714704576384890805560986.html

CHINA-INDIA RIVALRY TAKES SHAPE.  A piece from the Foreign Policy Research Institute analyzes the evolving strategic and economic rivalry between China and India.  The piece goes into detail on the rivalry's key issues, including, border tensions, the nuclear dynamic, and China's power projection capability.  http://www.fpri.org/enotes/201106.pant.china_india.html

ASIA'S DISAPPEARING DAUGHTERS.  A new book by Mara Hvistendahl explores the gender gap in China, "Unnatural Selection: Choosing Boys and Girls, and the Consequences of a World Full of Men," analyzes the impact of the one-child policy.  An excerpt from the book: "Lianyungang, a booming port city, has China's most extreme gender ratio for children under four: 163 boys for every 100 girls.  These numbers don't seem terribly grim, but in ten years, the skewed sex ratio will pose a colossal challenge.  By the time those children reach adulthood, their generation will have twenty-four million more men than women."  http://chinadigitaltimes.net/2011/06/asia%e2%80%99s-disappearing-daughters/

WAVE OF UNREST ROCKS CHINA.  http://online.wsj.com/article/SB10001424052702304665904576383142907232726.html

CHINA'S HIGH-SPEED RAILS SLOWS.  This week, China's Railway Minister announced that the nation's flagship bullet train would travel slower than earlier reported.  China's high-speed rail project has been plagued by charges of corruption and mismanagement while the project's price tag continues to rise.  From the NYT's piece: "Some critics had charged that Mr. Liu (former PRC Railway Minister) built a high-speed-rail empire that was both too costly for average riders and marred by shoddy, quick construction that, at a minimum, might require lower speeds."  http://www.nytimes.com/2011/06/14/world/asia/14china.html

INFLATION IN CHINA HITS 34-MONTH HIGH.  According to the FT, consumer inflation in China rose to its highest level in nearly three years in May, up 5.5% from a year earlier.  From the piece: "The benchmark consumer price index accelerated from 5.3% year-on-year rise recorded in April, despite government efforts to rein in liquidity and slow price rises."  http://www.ft.com/intl/cms/s/0/dda66798-9630-11e0-8256-00144feab49a.html

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.

Caucus Brief: China-Vietnam Dispute Grows With Naval Maneuvers

CHINA-VIETNAM DISPUTE GROWS WITH NAVAL MANEUVERS.  Vietnam has announced that this week it will conduct a nine-hour live-fire naval exercise off of its central coast.  This is the first time that the government has publicized a live-ammunition drill, leading many analysts to believe that this drill is intended to send a clear message to China about Vietnam's interests in the South China Sea.  This exercise is the most recent escalation in a long-running dispute with China over control of territory in the South China Sea, a dispute that has substantially ratcheted up in recent weeks.  http://www.nytimes.com/2011/06/11/world/asia/11vietnam.html 

VIETNAM SEEKS U.S. SUPPORT IN CHINA DISPUTE.  Vietnam has reached out to the U.S. and other nations for help in resolving escalating territorial disputes in the resource-rich South China Sea. The FT reports that this move is likely to anger Beijing, which opposes what it sees as outside interference.  This request comes after weeks of public protests in Vietnam and a planned live-fire naval drill off of Vietnam's central coast.    http://www.ft.com/intl/cms/s/0/05e83b34-94db-11e0-a648-00144feab49a.html

U.S. URGES CALM AS VIETNAM-CHINA SPAT ESCALATES.  U.S. officials said June 10, that the U.S. is troubled by tensions in the South China Sea and is calling for a peaceful resolution to the crisis.  U.S. State Department spokesman Mark Toner: "We support a collaborative diplomatic process and call on all claimants to conform all of their claims, both land and maritime, to international law."  http://www.defensenews.com/story.php?i=6779345&c=ASI&s=TOP 

CHINESE POLICE ARREST 25 AFTER VIOLENT CLASHES.  A crowd threw bricks at police in Southern China after two street vendors were reportedly beaten by police.  This protest follows a separate incident in China's Hubei province in which the BBC reports that, "hundreds of people laid siege to local government offices following the death in custody of a respected local official."  http://www.bbc.co.uk/news/world-asia-pacific-13741074 

RIOTS IN HUBEI AFTER LOCAL OFFICIAL KILLED.  http://www.bloomberg.com/news/2011-06-13/china-cracks-down-in-wake-of-riots-bombings.html

ETHINC PROTESTS IN CHINA HAVE LENGTHY ROOTS.  A piece in the NYT argues that recent ethnic Mongolian protests in China are a sobering reminder that China cannot repress, with an iron fist, the 8% of its population that is made up of ethnic minorities.  The piece quotes Minxin Pei, a China expert at the Carnegie Endowment for International Peace: "The Mongolian situation is very worrying for Chinese leadership because you can't just throw money at an issue like ethnic identity."  http://www.nytimes.com/2011/06/11/world/asia/11mongolia.html 

BOMB BLAST ADDS TO CHINESE UNREST.  A man seeking "revenge on society" detonated a bomb outside a government headquarters in northeastern China over the weekend.  This explosion marks the third bomb at a Chinese government facility in the last three weeks.  These bombings mark a trend of increasing dissent and incidents of unrest in China's urban areas as the government continues with its aggressive crackdown. Two people were injured in this most recent blast.  http://online.wsj.com/article/SB10001424052702304665904576381290666515926.html 

CHINA TO HALT GRASS-ROOTS CANDIDATES.  The NYT reports that the Chinese government appears to be restricting attempts by certain citizens to run for local legislative office as self proclaimed independent candidates, stating that these candidacies are illegal and that no one can run for office without first clearing a clearing a series of procedural hurdles.  From the piece: "The decision...appeared to some to reflect official concern about the Communist Party's grip on the election process in a society whose members are increasingly linked by the internet.  http://www.nytimes.com/2011/06/10/world/asia/10china.html 

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.

Caucus Brief: China Plans Naval Exercises in Western Pacific

CHINA PLANS NAVAL EXERCISES IN WESTERN PACFIC.  China is planning to conduct naval training drills in the Western Pacific later this month.  This announcement comes only days after China's neighbors expressed concern over the nation's growing military power.  These exercises will take place in international waters and are "not targeted at any specific country," according to a statement from China's Defense Ministry.  Military observers will be watching these exercises closely as they await the launch of the People's Liberation Army's first aircraft carrier.  http://www.defensenews.com/story.php?i=6760976&c=ASI&s=SEA

CHINA REBUTS PANETTA'S REMARKS.  Chinese state-run media has accused the United States of trying to provoke trouble between China and its Asian neighbors in light of CIA Director Leon Panetta's remarks to the Senate Armed Services Committee.  One of Panetta's statements in particular, which argued that China appears to be developing the capability to "fight and win short-duration, high-intensity conflicts" along its borders, prompted a stern response from the government-run Global Times which described this statement as a provocation intended to exaggerate tensions between China and its neighbors.  http://blogs.voanews.com/breaking-news/2011/06/09/china-rebuts-panetta-remarks-accuses-us-of-trouble-making/

CHINA TO DEVELOP N. KOREA TRADE ZONES.  A piece from the FT reports that China has broken ground on two economic development zones in North Korea.  China's Commerce Ministry has announced that the two countries would  develop two separate "government-led, enterprise-based and market oriented" economic zones close to the Chinese border.  This announcement marks the first time that these two nations have jointly pursued such an initiative.  http://www.ft.com/intl/cms/s/0/0b83bb98-92c6-11e0-bd88-00144feab49a.html

CHINA LOOMS LARGE FOR NEW INDIAN AIR FORCE CHIEF.  In July India's new Air Force Chief will begin a major revamp of India's order of battle that is designed to counter Chinese air force deployments.  A piece from Aviation Week lays out the Indian force deployment shift.  http://www.aviationweek.com/aw/generic/story.jsp?id=news/awst/2011/06/06/AW_06_06_2011_p56-327956.xml&headline=China Looms Large For New Indian AF Chief&channel=defense

IS CHINA HEDGING FOR GADHAFI'S FALL?   A piece from the WSJ argues that China may be hedging its bets against Moammar Gadafi staying in power.  Thus far, China has repeatedly called for a diplomatic solution and seemingly supported Gadafi staying in power.  However, China has now publicly met with the leader of the Libyan rebels, a move that suggests that Beijing is beginning to look for favor with Gadafi's opposition.  Prior to violence breaking out in Libya, China had invested nearly $19 billion across 50 projects in Libya.  http://blogs.wsj.com/chinarealtime/2011/06/09/is-china-hedging-for-gadhafi%e2%80%99s-fall/

THE FUTURE OF VOICE OF AMERICA BROADCASTING TO CHINA.  Last month, Rep. Dana Rohrbacher led a group of Members of Congress in calling for funding for Voice of America broadcasts into the People's Republic of China.  Rep. Rohrbacher's letter requested that $15 million of the foreign operation's appropriations bill be allocated to supporting VOA mandarin and Cantonese. A piece from the Heritage Foundation explains why this program is an important U.S. strategic asset for penetrating China's "Great Firewall."  http://www.heritage.org/Research/Reports/2011/06/Support-Continued-Voice-of-America-Broadcasting-to-China  

IMF CANDIDATE WOOS CHINA.  French Finance Minister and candidate to lead the International Monetary Fund Christine Lagarde was a hit with the Chinese media during a recent visit to campaign for China's support.  CNN reports that Minister Lagarde had the entire Chinese press corps in laughter with witty comebacks and easy confidence.  China has recently opposed the idea of the next IMF Director being European, as they believe the European perspective does not take into account the needs of developing nations.  http://business.blogs.cnn.com/2011/06/09/imf-candidate-woos-china-on-vote-merry-go-round/

 

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.

Caucus Brief: Leon Panetta, The Pentagon and The China Threat

LEON PANETTA, THE PENTAGON AND THE CHINA THREAT.  Leon Panetta, current CIA Director and nominee for Secretary of Defense, made a point of addressing the growing threat posed by China's military modernization in his answers to the Senate Armed Services Committee's written confirmation questions.  Director Panetta's answers placed a specific focus on the need for the U.S. to continue its own military modernization efforts to prepare our military for an adversary armed with air defense systems, long-range ballistic missiles and anti-ship cruise missiles.  http://www.lexingtoninstitute.org/leon-panetta-the-pentagon-and-the-china-threat?a=1&c=1171

PANETTA SAYS CHINA IS BUILDING CAPABILITY TO COUNTER U.S. DEFENSE OF TAIWAN.  CIA Director Leon Panetta, in his written answers to the Senate Armed Services Committee confirmation questions, stressed that China is emphasizing anti-access and area capabilities to prepare for "contingencies involving Taiwan, including possible U.S. military intervention."  Director Panetta's statement went on to say: "The complexity of the security environment, both in the Asia-Pacific region and globally, calls for continuous dialogue between the armed forces of the U.S. and China."  http://www.bloomberg.com/news/2011-06-08/china-building-ability-for-border-conflicts-panetta.html

HACKERS ESCALATE VIETNAM-CHINA SPRATLY ISLANDS ROW.  Computer hackers from both Vietnam and China have launched campaigns targeting hundreds of websites, including government websites, to post their national flags or post comments in favor of their national territorial claims.  In the last month, Vietnam has seen multiple public protests against China's claim to the South China Sea and recent aggression by Chinese patrol boats.  Hanoi has accused Chinese patrols of cutting communication cables and harassing Vietnamese ships in Vietnamese waters.  http://www.bbc.co.uk/news/world-asia-pacific-13707921

CHINA SCOLDS PHILIPPINES OVER DISPUTED S. CHINA SEA.  China and the Philippines have exchanged harsh words over contested territorial claims to the South China Sea.  The statement from China's Foreign Ministry: "China demands that the Philippines stop unilateral actions that damage China's sovereignty and interests at sea and could lead to the expansion and complication of the South China Sea dispute, and stop issuing irresponsible comments that are inconsistent with facts."  The Philippine President's spokeswoman released this response: "We stand by what we believe in and what is ours.  That is what we are trying to remind them."  http://www.aviationweek.com/aw/generic/story_channel.jsp?channel=defense&id=news/awx/2011/06/08/awx_06_08_2011_p0-333049.xml&headline=China%20Scolds%20Philippines%20Over%20Disputed%20Waters&prev=10

CHINA'S SUPPRESSION OF HUMAN RIGHTS LAWYERS.  A piece from Jerome Cohen,  the Council on Foreign Relation's Adjunct Senior Fellow for Asia Studies, explores China's treatment of human rights attorneys and why this most recent crackdown on dissent is succeeding.  From the piece: "While in captivity, these lawyers endure humiliation, torture and endless demands to sign 'repenting' alleged misconduct and promising 'good behavior'…One wonders how severe the oppression of China's rights lawyers will have to become in order to prick the conscience of fellow professionals."  http://www.cfr.org/china/turning-deaf-ear/p25212

VIDEO: CHINA PROPERTY BUBBLE MAY BURST.  http://www.bloomberg.com/news/2011-06-08/china-building-ability-for-border-conflicts-panetta.html

WIFE OF DETAINED ACTIVIST TELLS OF EVICTION EFFORTS.  The wife of internationally known human rights activist Hu Jia says that she and her daughter have been forced out of their home only weeks before her husband is expected to complete his 42-month prison sentence.  Mr. Hu's Wife is quoted by the NYT: "If I try to find a job, they threaten my boss.  If I try cooperating with someone, they threaten my partner.  If I try to find some part-time work, they tell the human resources of the company to censor me."  http://www.nytimes.com/2011/06/09/world/asia/09china.html

CHINESE COMMUNIST PARTY CAN'T TAKE A JOKE.  A retired forestry worker from the Chinese city of Chongqing, went online in April to express his views on the Chinese Communist Party's (CCP) rising regional leader.  The online comment compared this particular CCP official to excrement.  The 45 year old retired forestry worker is now serving a year's sentence in a re-education-through-labor camp for his comments.  http://www.nytimes.com/2011/06/09/world/asia/09parody.html

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.

Caucus Brief: The Battle for the S.China Sea is Heating Up

THE BATTLE FOR THE S. CHINA SEA IS HEATING UP.  As the world begins to focus on China's claim to almost the entire South China Sea, Foreign Policy has released a piece that puts this issue into context.  One-third of the world's maritime trade goes through the South China Sea, and it is estimated that untapped stores of oil and natural gas in the region could be immense.  Portions of the South China Sea are claimed by eight nations in the region, but China claims territorial sovereignty over the vast majority of the disputed Sea.  The piece describes the events that have increased tensions since 2009.  http://www.foreignpolicy.com/articles/2011/06/07/crowded_waters

PLA 20 YEARS BEHIND U.S. MILITARY SAYS PRC DEFENSE MINISTER.  Chinese Defense Minister General Liang Guanglie has announced that China is 20 years behind the U.S. military in equipment, weapons and systems.  Minister General Liang Guanglie: "I would call the gap big, main battle equipment of our services…is mainly second-generation weapons."  This assertion of a 20 year gap was used to support the General's position that China does not, and will not, seek international hegemony.  These comments were made at the annual Asia-Pacific forum in Singapore. 

http://www.defensenews.com/story.php?i=6736116&c=ASI&s=LAN

CHINA CONFIRMS AIRCRAFT CARRIER.  The head of the People's Liberation has officially confirmed, for the first time, that China is building and remodeling a Soviet-era aircraft carrier.  The existence of this project has been China's worst kept secret as photos of the carrier have circulated in the media for months.  http://www.bbc.co.uk/news/world-asia-pacific-13692558

CHINESE MEDIA RESPONSE TO FRIEDMAN'S OP-ED.  Over the weekend the NYT ran an op-ed by Thomas Friedman that advised Beijing to allow the gradual liberalization of China so as to avoid "Arab Spring"-like dissent.  Yesterday the state-run newspaper the Global Times published a response.  From the response: "Frankly, it was a mediocre article for a two-time Pulitzer Prize winner although Friedman does not shun from his inclination to be a teacher of Chinese leaders…In fact, the U.S. as a whole has the tendency to teach other countries what is best for them.  Many Americans think they are qualified to do so."  http://opinion.globaltimes.cn/editorial/2011-06/662512.html

KISSINGER IN CHINA: TRIUMPH OR DISASTER?  http://prestowitz.foreignpolicy.com/posts/2011/06/07/kissinger_in_china_triumph_or_disaster

CHINA'S TROUBLED NEIGHBORS.  An op-ed in the NYT argues that the behavior of the Chinese Communist Party over the last six months has "stripped away many illusions about the country's 'peaceful rise.'"  Now the region can no longer assume that Chinese military and economic growth will benefit Asia as a whole.  Instead the region's focus is shifting to "managing conflicts and attempting to allay mutual suspicions."  http://www.nytimes.com/2011/06/08/opinion/08iht-edbowring08.html

CHINA MOVES INTO CUBA.  China's vice-president Xi Jingping has recently spent three days in Cuba in an effort to shore up Chinese-Cuban relations.  China is already Cuba's second largest trading partner, increasing trade between the two nations by four times since 2001.  Additionally, recent news that there may be 20 billion barrels of oil offshore of Cuba has garnered significant Chinese interest.  http://blogs.ft.com/beyond-brics/2011/06/07/the-chinese-are-coming-to-cuba/

CHINESE OFFICIALS WARNS ON DOLLAR ASSETS.  A senior Chinese official recently warned that China is running a major risk in holding so many dollars because the U.S. may be deliberately devaluing its currency.  This comment was made by the head of China's State Administration of Foreign Exchange who argued that the U.S. may find it hard to resist the temptation to weaken the dollar abroad and push up inflation at home.  Despite this official's warning, analysts argue that China has no choice but to recycle its vast foreign currency reserves into dollar-denominated assets.  In an effort to mask the extent of China's holdings in U.S. dollars, Beijing has begun routing investments into U.S. holdings through London and Hong Kong.  http://www.ft.com/intl/cms/s/0/86ddc922-9128-11e0-9668-00144feab49a.html

CONGRESS STEPPING UP PRESSURE IN FAVOR OF F-16 SALE TO TAIWAN.  http://www.washingtontimes.com/news/2011/jun/7/pressure-builds-for-sale-of-f-16-jets-to-taiwan/

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.