China and Blogging: Breaching the Great Firewall? (The Economist)

China’s military mouthpiece, the Liberation Army Daily, is not a fan of microblogging. On October 19th it said Twitter had caused chaos during Iran’s political turmoil last year, and gave warning that such instant information-sharing tools posed “hidden dangers” to national security. Having blocked access to Twitter, however, China is encouraging home-grown versions. Both the government and its critics have become avid users.

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China and Japan: How A Fishing Boat Led to a Headline Confrontation (Ford)

Several years ago, I worked with a talented Chinese student who wrote a Master's dissertation on the "textbook crisis" about Chinese objections to the portrayal of history in Japanese textbooks. Anger over the representation of Japan's invasion of China in the 1930s led to violent protests and Beijing's threats to reduce ties with Tokyo./p>

I was reminded of this all week as the Sino-Japanese tension escalated over Japan's interception of a Chinese trawler and detention of the captain. Amidst the mounting concern --- some Western media even speculated about what the US would do if China invaded Japan --- I expected the situation to be resolved. And on Friday, my prediction looked good when Japan released the Chinese captain.

Still, the episode illustrates how an apparently minor incident can be elevated to the status of diplomatic crisis....

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China Economy Weekly: Trade Battles with US, Power to Tibet, Investing In General Motors

Beijing Buys More US Debt:  China slightly increased its holdings of US Treasury debts in July, to $846.7 billion, after two months of net sales.

The news allayed concerns that Washington's largest creditor was moving away from investing in dollar assets.

Coincidentally, the debt data came out as two US Congressional hearings were being held on China's exchange rate policy. 

The hearings were attended by Treasury Secretary Timothy Geithner, who acknowledged that the two countries "have significant economic interests" in their relationship and highlighted the importance of the Chinese market on the US economic recovery. However, he expressed dissatisfaction with the pace of the yuan's appreciation.

China responding by warning that obsessing over yuan appreciation would not solve trade problems in the US and "might make things even worse"

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Iran Feature: Top Tehran Analyst Zibakalam "Sanctions Have Worked"

These remarks from Professor Sadegh Zibakalam, one of Iran's top analysts of international affairs are striking, especially when set against President Ahmadinejad's all-is-well assurances. They were featured in Aftab News last week:

We should not wonder why the Koreans have joined the group of countries sanctioning us....South Korea exports $40 billion worth of car parts to the United States. Should Korea not give into American pressure, it could lose the American market....

I believe the next countries to sanction Iran will be China and Turkey....Turkey exports $15 billion to the 25 countries of the European Union each year. Should the EU give Turkey trouble and should Turkey be forced to choose between Iran and the EU, it is only natural that the Turks will choose them, just like...when Japan and South Korea chose to do so.

It would be most unpleasant if the Americans make trouble for the Chinese....China has for some time decreased its investments in and oil purchases from Iran. There was a time when we were the second-largest oil exporter to China in the Persian Gulf region, but today we come in eighth. Our oil exports to China have decreased to 200,000 barrels per day from 800,000 barrels per day.

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