China This Week: Rain-triggered Floods; South China Sea Issues; PLA Air Defense Drills; Sino-Latin America Ties

Floods Kill 1,072, 619 missing: Rain-triggered floods have left 1,072 people dead and 619 others missing this year in China.

The floods affected 140 million people in 28 provinces and regions and caused direct economic losses estimated at almost 210 billion yuan (almost $70 billion), said Shu Qingpeng, deputy director of the Office of State Flood Control and Drought Relief Headquarters.

The flooding also destroyed more than 1.1 million homes and damaged 9.72 million hectares of farmland. China's large rivers, including the Yangtze, the Yellow and the Songhua, were all swollen to danger levels after heavy rains inundated more than 160 cities across the country.

China Opposes Vietnam, US on South China Sea: China firmly opposes any remarks and actions that violate its sovereignty over the Xisha Islands and adjacent waters in the South China Sea, said Foreign Ministry spokeswoman Jiang Yu on Friday.

Jiang made the comment after Vietnamese Foreign Ministry spokeswoman Nguyen Phuong Nga said, according to media reports, that Chinese vessels' seismic exploration activities near Xisha Islands had violated Vietnam's sovereignty.

"China has indisputable sovereignty over Xisha Islands and adjacent waters," Jiang reiterated in a news release.

Defense Ministry spokesman Geng Yansheng said China had "indisputable sovereignty" over islands in the South China Sea and the surrounding waters, one week after US Secretary of State Hillary Clinton talked of US "national interests" in the area.

Geng said at a press conference that China would push for the resolution of differences regarding the South China Sea with "relevant countries" through dialogue and negotiations and that Beijing objected to having the issue internationalised.

China would respect the liberty of ships and aircraft from "relevant countries" traversing the South China Sea in accordance with international laws, Geng added.

China held military drills in waters alongside US-South Korean exercises, leading to speculation that China had staged them intentionally to send a message to the US.

But Geng denied there was any connection, "The increased exposure of Chinese military exercises aims to showcase a more open, pragmatic and transparent Chinese military. I hope our friends in the media correctly analyze and understand the exercises and do not speculate or over-interpret them."

12,000 Take Part in Air Defence Drills: Chinese air defence forces on Thursday battled rain during a five-day military exercise.

More than 12,000 Chinese military personnel, along with seven types of military aircraft, took part "Vanguard 2010", which started on Tuesday in seven cities across Henan and Shandong Provinces.

Reports said the annual drill, consisting of two phases to run from Tuesday to Saturday, would feature emergency evacuations, war planning, reconnaissance, early warning activities, ground-to-air attacks, and evacuations of command posts during its first phase which ends on Thursday.

Its second phase includes testing Chinese air defense troops' abilities in fighting air units in a "complicated electromagnetic environment".

China to enhance army's capabilities: China's armed forces will continue to enhance their capabilities and military readiness to safeguard sovereignty, security, and development of the nation, Defense Minister Liang Guanglie said.

Liang made the remarks while addressing a reception held in Beijing to mark the 83rd anniversary of the founding of the People's Liberation Army (PLA).

Liang said the army should strengthen military training, adopt more high-technology weapons and equipment, improve military logistics, and increase combat capabilities by using information technology.

Meanwhile, a spokesman said China's defense expenditure has been maintained at a "reasonable and appropriate level".

China's annual defense expenditure has been around 1.4 percent of its GDP in recent years while the share of some major world powers is between 2 and 4 percent, according to Geng Yansheng.

China Hopes US to Contribute to Military Exchange: China called on the United States to "handle carefully" sensitive issues such as arms sale to Taiwan and contribute to the development of military-to-military relations between the two countries.

Senior Colonel Geng Yansheng, spokesman of China's Ministry of National Defense, urged the US to create "favorable environment and conditions" to promote military-to-military relations between the countries.

In January, China cut off some military exchanges with the US following the Pentagon's decision to sell a $6.4-billion arms package to Taiwan.

Chinese FM’s visit to Austria, Latin America: Chinese Foreign Minister Yang Jiechi said his visit to Austria, Mexico, Cuba and Costa Rica was a great success, claiming consensus with leaders and foreign ministers on the international financial crisis and reforms, climate change, and the UN Millennium Development Goals.

Yang said annual trade with Latin America has reached nearly $150 billion, and China has become the region's second biggest trade partner.

Venezuela and China discussed ten agreements involving cooperation in energy, mining, food and gas sectors. China agreed to back Venezuela's 17 development projects by providing $4 billion in credit loans via the China Development Bank (CDB).

China's policy toward Pacific Islands countries: China will continue to provide assistance to help the Pacific Island countries build capacity to tackle global financial crisis and climate change, and support the sustainable development, said Chinese Vice Foreign Minister Cui Tiankai.

Cui made the remarks at the the 22nd Pacific Islands Forum's Dialogue Meeting, which was held in the Vanuatu capital of Port Vila on Friday.

China, Iran pledge to carry out cooperation projects: China and Iran on Friday pledged to pursue cooperation projects after a meeting between Chinese Vice Premier Li Keqiang and visiting Iranian Oil Minister Masoud Mirkazemi.



The Chinese Foreign Ministry release did not specify the cooperation projects nor where they would be implemented.

Iran is one of the major crude oil suppliers to China and a crucial trade partner in west Asia and north Africa.

It was in the fundamental interests of both countries to cement friendly and cooperative ties, Li said. China would like to work with Iran to cement political trust, maintain communication and coordination on international and regional issues so as to safeguard regional and world peace, stability and prosperity, he added.



China Opposes EU sanctions on Iran: China opposed unilateral sanctions levied on Iran by the European Union, said Foreign Ministry spokeswoman Jiang Yu.

"We hope the relevant parties will adhere to diplomatic means on the issue," said Jiang in response to a question. China maintains that the Iran nuclear issue should be resolved through dialogue and negotiations, she added.

China to Participate in Drill in Kazakhstan: More than 1,000 army and air force officers and soldiers from China's People's Liberation Army (PLA) will take part in an anti-terror exercise in Kazakhstan this autumn.

The "Peace Mission 2010" exercise will be the seventh of its kind held under the framework of the Shanghai Cooperation Organization.

China reaffirms friendship with DPRK: Chinese Assistant Foreign Minister Hu Zhengyue said on Friday that China is committed to consolidating ties with the Democratic People's Republic of Korea .

In a meeting with Yang Hyong Sop, Vice President of the Presidium of North Korea's Supreme People's Assembly, Hu said Chinese leaders attach great importance to the bilateral relationship. It is China's steadfast policy to continuously consolidate and enhance good neighbourliness and friendly cooperation with the DPRK.

China to Launch Fifth Orbiter: China will launch a fifth orbiter into space, as part of its satellite navigation and positioning network, Beidou, in the next few days.



The network will eventually consist of 35 satellites. China started building its own satellite navigation system in 2000 to end its dependence upon the U.S. GPS system. Beidou is designed to provide navigation, time and short message services in the Asia and Pacific region in 2010 and will be capable of providing global navigation services by 2020.

New Plan Targets Pollution: China plans to introduce ambitious new targets for the reduction of major pollutants in the upcoming 12th Five-Year Plan (2011-15).

Two new pollution indicators, nitrogen oxide --- mainly discharged from power plants and vehicles --- and ammonia nitrogen, a major measure of water quality, will be added to the emission control list for the next five years, said Gao Dongsheng, deputy director of the department of energy conservation and resources utilization within the Ministry of Industry and Information Technology.

Population Control in Beijing: In a move to reduce a burgeoning population, the Beijing People's Congress has advocated a restriction of low-wage workers in the capital through closures of small businesses.

The Congress recommended population control measures be part of the city's 2011-15 development plan, with an adjustment of industries through the introduction of more skilled workers and a reduction in the overall demand for laborers.

Beijing's population reached 19.72 million at the end of 2009. Among this figure, 7.26 million people were migrant workers who had been living in the city for more than six months. If unregistered migrant workers and people on short visits to the capital are also taken into consideration, the floating population in Beijing could have exceeded 10 million, the municipal officials said in the report.

China's first amphibious plane starts test flight: The first China-made amphibious plane, Seagull 300, begins its test flight on Thursday.

The plane can take off from and land on a 600-metre-long and 50-metre-wide runway either on the land or on the water.

The four-to-six-passenger plane costs more than 4 million yuan ($600,000) and can be used for business, passenger, cargo, medical aid, or sightseeing flights.

Lebanon-Israel Update: UN Support for West Jerusalem; Washington's Dilemma over Beirut

On Wednesday, a Lebanese source told the Lebanese newspaper An-Nahar that the Lebanese Army was first to open fire in Tuesday's clash with Israel Defense Forces. However, the source also stated that it was their right "to defend Lebanon's sovereignty", implying that Israeli soldiers were on the Lebanese side of the borderline.

Israel, in an official letter of complaint to UN Secretary General Ban Ki-Moon, asserted that IDF soldiers did not cross the border. An official with the United Nations peacekeeping force, UNIFIL, later said that the Israeli units were in their territory, and Milos Strugar, UNIFIL's senior political advisor, added that UN deals "with complaints on provocations of Lebanese soldiers against IDF units on a daily basis".

Meanwhile, the US Government finds itself caught between its ally Israel and the need to bolster Saad Hariri's "moderate" government and a Lebanese army which is to be distinguished from Hezbollah militants.

Middle East Inside Line: Israel’s Lebanon Message, Hezbollah’s Response, Livni Challenges Netanyahu

On Tuesday,Washinigton's "we don't want to see this happen again" response was criticised by West Jerusalem as "neutral". The next day, State Department spokesman P.J. Crowley said that the firing by Lebanese armed forces on Israeli troops was "totally unjustified and unwarranted" while calling on both sides to show restraint and urging the United Nations to oversee a calming of the crisis:

We appreciate the work of the United Nations both in the meeting today and creating the cease-fire yesterday. We're going to be working intensively to see that tensions along this border are eased.

However, the Obama Administration might have some friction from Congress over military aid to Lebanon. For 2010, the US approved $100 million in assistance to the Lebanese military, as well as $109 million in economic aid and $20 million in anti-narcotics funds. The amount of aid for 2011 is approximately the same.

Talking to The Jerusalem Post, Florida Representative Ron Klei said "the continued support of the Lebanese Army" will "come up in conversations in the Congress". Klei added:

If in fact it’s factually shown that this was a Lebanese government authorized action, I think a lot of members would be very concerned about continuing to provide military support to Lebanon. I certainly would be.

However, even Klei admitted that hostility to Lebanon might be overtaken by the need to maintain a pro-American government in Beirut: 

It doesn’t mean there’s going to be a certain reduction, because unfortunately for that region it’s the lesser of two evils. We’d much rather work with the army than Hezbollah.

Gaza Latest: Why Israel Is Welcoming the UN Enquiry

On Monday, Prime Minister Benjamin Netanyahu informed United Nations Secretary General Ban Ki-moon that Israel would accept an international probe into the raid on the Freedom Flotilla on 31 May.

The panel will begin its work on 10 August and will file its first report with the UN Security Council by the middle of September. Heading the panel will be former New Zealand Prime Minister Geoffrey Palmer, an expert on international maritime law. The vice chairman is outgoing Colombian President Alvaro Uribe, who is considered pro-Israel and pro-United States. Turkey and Israel also will send representatives.

This is the first time Israel is cooperating with a UN investigation of the actions of Israel Defense Forces. Haaretz reports the mandate of the panel:

The panel's mandate is to examine the investigations that Israel and Turkey are carrying out regarding the incident of the Gaza-bound flotilla on May 31. In addition, the panel will seek to examine the facts surrounding the flotilla and recommend ways to avoid such incidents in the future.

The panel will not be authorized to call witnesses --- especially no Israeli soldiers or officers.

So it will be a very limited investigation; the US Ambassador to the UN, Susan Rice, said the nternational panel will be "complementary" to national enquiries. Rice added that the US expected  "that the Panel will operate in a transparent and credible manner and that its work will be the primary method for the international community to review the incident, obviating the need for any overlapping international inquiries".

So why did Israel, contrary to initial expectations, accept a UN panel? Because, at the end of the day, it is an investigation doing no more than looking at national (i.e., Israeli) investigations which have already tried to define the findings, findings which have already tried to contain the fact that nine activists died on board the Flotilla.

Israel-Palestine: A Secret Deal to Start Direct Talks?

On Friday, talking to Israeli Defense Minister Ehud Barak, United Nations Secretary-General Ban Ki-moon asked for an extension of the settlement freeze and its application in east Jerusalem. Barak responded with a statement that went far beyond the request:

We are hoping to to start direct negotiations with the Palestinians soon, in order to move forward with an agreement which will be based on two nations for two peoples. The negotiations will not be simple, and courageous decisions will be required on our part and the Palestinians. I hope everyone understands that both sides will need to make difficult decisions to establish historic peace in the region. We will need the help of the UN to go forward with the negotiations.

Middle East Inside Line: Rockets Hit Eilat, Iran Responds to “US War Plan”, US $ for Israel Missile Defence

On Saturday, Palestinian Authority chief negotiator Saeb Erekat denied reports in the Arab media  that the Obama aministration had threatened sanctions against the PA --- perhaps even the severing of ties --- if PA leader Mahmoud Abbas did not agree to enter direct talks with Israel. Then he talked about a peace proposal, even "more generous" than the one offered to former Israeli Prime Minister Ehud Olmert. Erekat said:

I presented Senator George Mitchell with a series of official document. We gave him maps and papers that clearly state our positions on all the final-status issues: borders, Jerusalem, refugees, water and security. Thus far we have not received any answer from the Israeli side.

(Note: Erekat has stated that the PA offered Olmert a swap that would let Israel annex 1.9% of the West Bank in exchange for return to Palestine of Israeli settlements covering 1% of the territory.)

On Sunday, Prime Minister Benjamin Netanyahu said that he had not received any Palestinian peace programme but he announced that direct negotiations with the Palestinians will begin by the middle of August.

What does all this mean? How can the Israeli Prime Minister be so confident to announce the advent of direct talks while rejecting any proposal from the Palestinians? Has Netanyahu made a concession both on the status of East Jerusalem, including the Temple Mount, in response to a Palestinian concession on the percentage of West Bank land to be swapped?

Indeed, has Netanyahu given consent to gestures such as the transfer of some towns to the West Bank, transfer of some areas to the PA authority, the release of Palestinian prisoners, and the extension of the settlement freeze in the West Bank along with a freeze in East Jerusalem?

UPDATED Middle East Inside Line: Rockets Hit Eilat, Iran Responds to "US War Plan", US $ for Israel Missile Defence

UPDATE 0655 GMT: Israel Army Radio says between three and five explosions have hit the southern resort city of Eilat in a suspected rocket attack, Israeli army radio reports. There are no reported casualties.

One rocket also hit the nearby Jordanian port of Aqaba, injuring four people.

Israel-Palestine: A Secret Deal to Start Direct Talks?

US-Iran Front: On Sunday, Chairman of the U.S. Joint Chiefs of Staff Adm. Mike Mullen said that the U.S. military has a plan to attack Iran if necessary though he thinks this is a "bad idea".

In response, Iran's envoy to the United Nations, Mohammad Khazai, said: "If the Zionist regime commits the slightest aggression against Iranian soil, we will set the entire war front and Tel Aviv on fire."

US Commitment to Israel's Security: The House of Representatives, the junior chamber of the US Congress, has endorse funding of the Israeli missile defense programs to an unprecedented level, with $422.7 million now slated for 2011.

Israel-Palestine Analysis: What Message Has the Arab League Sent? (And To Whom?)

The package is more than twice as much as last year’s total and brings to nearly $1 billion joint US-Israel missile defense programs in the past four years.

Israel-Hamas Exchange of Fire: Both Israelis and Hamas exchanged fire for the second time in the last 48 hours. First, a rocket was fired from Gaza on Friday. Israel's Air Forces responded quickly and killed a militant/terrorist leader. Then, Hamas sent another Qassam rocket Saturday night. Israeli jets struck two smuggling tunnels in the southern Gaza Strip overnight Saturday.

There were two big developments in Gaza last week. Last Tuesday, the top security official in Hamas-ruled Gaza said that he was considering setting up a bigger military force, first with volunteers and eventually with a mandatory draft. Instead of a paid security force, Hamas can have a broader access to Gazans (about one-third of the labor force in Gaza is unemployed) through large number of potential recruits.

Secondly, following the Arab League's "yellow light" to the trio of Washington, West Jerusalem and Ramallah, Hamas criticized the decision harshly. Ismail Radwan, a senior Hamas leader, said:

We reject any cover for the resumption of the direct talks with the Zionist occupation. This committee is not authorized to make concessions over the rights of our people.

Meanwhile, after Israeli attacks, Islamic Jihad said on Sunday that it has decided to resume suicide attacks against Israel from the West Bank.