China Reform Monitor: No.1069

November 8 :

South Sudan’s Petroleum and Mining Minister, Stephen Dhieu Dau, has announced that China will lend his country $1–$2 billion to fund infrastructure, mining and agricultural projects. A $43 million Chinese loan will pay for South Sudan’s first geological survey to determine its mining potential and allow Juba to provide mining licenses to extract gold, copper, iron ore, etc. Geological surveys conducted in the 1970s and 1980s suggest South Sudan has rich gold, copper and uranium deposits. The problem, All Africa reports, is that “expertise on corporate social responsibilities is clearly limited on the Chinese side and engagement with the public is a weak point. A crucial question for Juba is: how much can a government with limited capacity formulate standards - and then push foreign companies to adhere?”

November 11:

Between November 12 and 14 U.S. and Chinese troops held disaster relief exercises in Hawaii, marking the first time the first time People’s Liberation Army (PLA) soldiers have drilled on U.S. territory, reports Business Week. The joint drill simulated relief operations after an earthquake hit a third country. The drills follow a series of naval exercises off Hawaii in September. The PLA Navy is also set to take part in the 2014 RIMPAC war games off the Hawaiian coast, which brings together militaries from across the Pacific Rim. China has observed RIMPAC before, but 2014 will mark the first time the PLA has participated. “These types of exercises give us a good place to start and get into the rhythm of understanding and trusting each other,” said Admiral Samuel Locklear, commander of U.S. Pacific Command.

November 13:

India’s opposition BJP has demanded Manmohan Singh explain the Border Defense Cooperation Agreement he inked with China on October 23. “Under Article 6 of the agreement, if Chinese forces entered into Indian side while patrolling, India will not be able to push them back,” said BJP President Rajnath Singh. “According to another condition of the agreement, India will not be able to create any basic infrastructure for defense purposes on the India-China border. The Indian government has ensured demolition of its own bunkers,” he said. The Press Trust of India reports that Rajnath criticized the Prime Minister for not consulting with Parliament before signing the agreement and said he considers the “economic corridor” between China and Pakistan to be a “defense corridor.”

November 15:

Gambia has cut diplomatic ties with the Republic of China (Taiwan), the first diplomatic connection Taiwan has lost in five years. “This decision has been taken in our strategic national interest. We are proud that we have been a very strong and reliable partner of the ROC for the past 18 years,” read a statement by the president’s office reported by Gambia’s The Point newspaper. Swaziland, Burkina Faso, and São Tomé and Príncipe are Taiwan’s three remaining diplomatic partners in Africa. This week China announced the creation of a trade office in São Tomé and Príncipe. “I do not see the possibility of [São Tomé restoring diplomatic ties with China] at the present,” ROC Foreign Minister David Lin said in comments carried by the Taipei Times.

November 17:

Bitcoins, the booming cyber currency, are gaining popularity in China despite their semi-legal status. In early November, BTC China became the largest bitcoin exchange site in the world, handling 34 percent of global bitcoin transactions, The New York Times reports. The currency spiked in value in July after receiving favorable reports in the official CCTV and People’s Daily. In October, bitcoins received a further boost when Baidu, China’s leading search engine, announced it would accept them as payment for online security services. Last week, a real estate developer in Shanghai said he would accept bitcoins as payment for housing units. All is not well, however: last month the website of Global Bond Ltd. disappeared, depriving roughly 500 investors of 25 million yuan, or $4.1 million. In 2009 an official prohibition was issued on the exchange of yuan for virtual currency and its use to purchase real-world goods.