The company initially tried to refute this as “irresponsible” reporting, but investors opted to believe China’s leading investigative journalism outlet, and the company’s bonds dropped by 33% in a day.
But the party-state authorities’ ban on reporting about Chairman Ye and his empire of enterprise (documented here in 2017) remains in place, so Caixin‘s scoop was expunged from the PRC internet within hours.
The news was officially confirmed more than two weeks later, on March 19, when the Czech Republic sent a delegation to find out what was going on with its major source of foreign investment. The delegation was told that Chairman Ye, an advisor to Czech President Milos Zeman, was indeed “being investigated for a suspicion of breaking the law.”
CEFC was ranked 222nd in the Fortune 500 in 2017, and last year stunned the international energy industry by securing agreement to buy a $9 billion, 15% stake in Rosneft, Russia’s state oil giant.
Now the company’s future is as murky as its past.
Caixin reporter Ji Tianqin 季天琴 spent the most of 2017 interviewing CEFC executives, tracking down former associates of Ye, and tracing CEFC’s constellation of satellite companies through the financial records. And the crowning glory: she interviewed Ye himself twice, finding all manner of holes in the stories he told her.
Ji Tianqin is famous in Chinese journalism circles for her award-winning deep-dives addressing, among other things, Wang Lijun’s reign of terror in Chongqing. Considering the difficulty of being an investigative reporter in China today, she really ought to be famous outside China too.
This epic investigation into CEFC reveals how, through party and military connections, turnover figures massively inflated by fake trading, and relentless pursuit of international photo-ops and status symbols, Ye Jianming was able to sell domestic and foreign audiences a mostly vacuous narrative about his rising global energy and finance colossus.
Suffice to say, these revelations extend my record of getting some things right about CEFC, but not very many. I’ll leave that discussion for another post, as my purpose here is to urge China-watchers to invest the time in dipping into the 16,000-word translation below — and to please share thoughts on what it all means. I’d also welcome any translation corrections from people more familiar with financial and business terminology.
This is a spectacular work of Chinese investigative journalism that may contain some profound implications for understanding the PRC’s economy, politics and international relations.
Ye Jianming under investigation, what fate will befall CEFC?
By Ji Tianqin
One week on from the UNCLOS arbitration ruling on the South China Sea, the PRC’s response continues to somehow both clarify and complicate the issue at the same time. The latest episode in the unfolding mystery of the nine-dash line seems to diminish the line’s linkage with oil and gas claims designated unlawful by the Tribunal, while ramping up its associations with “historic title” over large sweeps of archipelagic waters [but seemingly not the entire Spratly archipelago – see update at the bottom].
On Monday an article published on p.6 of the PLA’s official newspaper offered a clear and detailed post-ruling definition of the nine-dash line from authors at the Central Party School. One of its main purposes was to refute the Tribunal’s inferred reading of the nine-dash line as a blanket claim to historic rights within the area it encloses. (Grateful HTs to Bill Bishop for digging it up and Bonnie Glaser for drawing attention to its significance.)
The article offers a more complex clarification of the line’s meaning than my optimistic reading of last week’s PRC Government Statement: whereas i read the Statement as implicitly separating the nine-dash line from China’s maritime rights claims, this article spells out at least some explicit links between the two.
On the other hand, it offers little or no support to the expansionist reading of the line that has underpinned many provocative PRC actions in recent years. In particular, the CPS scholars’ definition does not appear to support a claim to oil and gas resources out to the edge of the nine-dash line. This was a key element of the implied reading of the nine-dash line that the Tribunal struck down as unlawful. It’s a position that the PRC has backed up with coercion against other claimants’ energy survey ships in the past, and it’s also the basis for the notion, widespread in PRC domestic discourse, that rival claimants, especially Vietnam and Malaysia, are “plundering” China’s resources.
The writing of this article is attributed to CPS Postgraduate Studies Institute Deputy Dean Wang Junmin 王军敏, but the newspaper byline attributes it collectively to the CPS Center for Research on the Theoretical System of Socialism With Chinese Characteristics. It is, as such, not a government statement, but it’s very detailed, takes into account the Tribunal ruling, and could end up being close to the interpretation the PRC goes forward with in the wake of the ruling.
This interpretation can be summarized as follows. The nine-dash line is not a blanket claim to historic rights over all waters within, but rather to three distinct sets of rights across different geographical areas:
- Sovereignty over the islands within the line (the original meaning of the line when the KMT government published it in 1948)
- “Historic title” (历史性所有权) to waters enclosed by straight baselines drawn around island groups within the line (definitely including the Paracels, for which the baselines have already been announced, but not necessarily for the whole Spratly group)
- Non-exclusive fishing rights in others’ EEZs where (a) they overlap with the line and (b) Chinese fishers traditionally fished under high-seas freedoms
The article begins by arguing the UNCLOS does not constitute the entirety of international maritime law, and that customary international law continues to apply on matters where rules are not provided for in UNCLOS. In particular, the authors argue,
“The UNCLOS did not provide rules for the issue of territorial sea baselines for continental countries’ archipelagos; nor did it provide rules for historic rights, although it affirmed their status in international law.”
The author(s) state that the Philippines “distorted” the nine-dash line by (a) presenting it to the arbitral tribunal as representing a Chinese claim to sovereign rights and administration over all of the waters and seabed within; and (b) by arguing that the PRC claims “historic rights” (历史性权利) within the line, when in fact the PRC claims “historic title” (历史性所有权) over areas within the line, putting the case outside the Tribunal’s jurisdiction.
This line of argument appeared, fleetingly, in China’s 2014 Position Paper, which noted that disputes concerning “historic bays or titles” were exempt from compulsory dispute resolution under Article 298. According to the author(s), China has “historic title” to internal waters within archipelagic straight baselines.
So the authors say the Philippines “slandered” China’s nine-dash line by providing a distorted reading of its meaning to the Tribunal. Here’s how they explain its true meaning:
First, looking at China’s practical exercise of state power, China has never claimed all the waters within the line as its territorial sea or internal waters, exercising state sovereignty there. In fact, the 1958 Territorial Sea Declaration, at the same time as proclaiming the applicability of the straight baseline system and setting the breadth of China’s territorial seas at 12nm, implicitly noted that international waters [exist] between the Chinese mainland and coastal islands, and Taiwan and surrounding islands, Penghu, Pratas, Paracels, Zhongsha, Spratlys and other islands belonging to China [ZH]. In 1996 the Declaration of Territorial Sea Baselines announced the territorial sea basepoints and baselines for the Paracel Islands, thereby implying that within the ‘nine-dash line’ China would, in accordance with the UNCLOS, take the Paracels as an integrated whole entitled to territorial seas, contiguous zone, EEZ and continental shelf. Likewise, China’s 2011 note to the UN Secretary General claimed that the Spratlys also enjoy territorial seas, EEZ and continental shelf. This implies: China has never claimed all the waters within the ‘nine-dash line’ as China’s historic waters or that it enjoys historic rights .
Second, the Philippines used the Chinese expression ‘historic rights’ (历史性权利) to argue China had not claimed ‘historic title’ (历史性所有权). As everyone knows, historic rights in international law refers to the rights enjoyed continuously by a state in certain waters since ancient times. Historic rights include historic title and non-exclusive historic rights. Waters subject to historic title are called ‘historic waters’ (历史性水域), these are part of a coastal state’s internal waters or territorial seas, and mainly include historic bays. other coastal waters adjacent to the coast, and the waters within archipelagos. Non-exclusive historic rights are divided into historic rights of passage and historic fishing rights. The former refers to innocent passage through internal waters, specifically all countries’ rights of innocent passage through areas not originally regarded as internal waters, but which became enclosed as such through the coastal state’s application of straight baselines.[ZH] The latter refers to non-exclusive rights to fish in areas that were previously fished in accordance with high seas freedoms but which have now become a coastal state’s EEZ [or] archipelagic waters.[ZH] The mere use of ‘historic rights’ in the PRC EEZ and Continental Shelf Law, by MFA spokespersons, and by Chinese scholars, does not imply China does not claim ‘historic title’. In fact, our country has historic title and historic fishing rights in different areas within the nine-dash line.
Third, China’s ‘nine-dash line’ rights claims mainly comprise: 1. China has territorial sovereignty over islands, reefs, cays and shoals within the line; 2. China has historic title to waters within archipelagos or island groups that are at relatively close distance and that can be viewed as an integrated whole, these areas are China’s historic waters, they are our country’s internal waters,[ZH] and China has the right to draw straight baselines around the outermost points of these waters and claim state administrative zones such as territorial seas, EEZs and continental shelves etc. in accordance with the UNCLOS. 3. When waters within the ‘nine-dash line’ become [part of] another country’s EEZ or an archipelagic state’s waters, China has the right to claim historic fishing rights or traditional fishing rights in the overlapping areas.
The many references to non-exclusive fishing rights contrast sharply with the complete absence of any mention of claims to oil and gas rights. As noted, it was precisely that (implied) claim that led to the line being designated unlawful. The 2012 CNOOC oil blocks, especially, convinced the Tribunal that China was acting in accordance with this reading of the line (see especially the Award paragraphs 208-214). But under the above definition, the nine-dash line seems to have no significance at all to the geographic scope of China’s energy rights claims.
The other striking thing about this definition is the heavy focus on the issue of historic title over internal waters enclosed within straight baselines around island groups — an issue addressed in an excellent article by Yanmei Xie over the weekend. There is plenty of reason to think that straight baselines might be about to enclose the Spratlys, a move that would significantly harden the PRC’s position.
But there might be yet another strange twist here. Looking again at the third paragraph above, the Party School authors define China’s claim of historic title to internal waters as existing in “archipelagos or island groups that are at a relatively close distance and that can be viewed as an integrated whole (my emphasis).” Which kinda seems to suggest the historic title aspect might be referring to the Paracels but not the Spratlys.
I’ve heard the “can be viewed as an integrated whole” argument for archipelagic straight baselines in the South China Sea numerous times from PRC sources, but i’ve never come across the “at a relatively close distance” criterion before. Why else might they have included this?
Here’s the answer (update 21/7):
Dylan Jones points out that the relatively close distance criteria refers to the distances between the islands, and a careful re-reading of the article confirms this. Here’s the Central Party School authors’ detailed explanation in translation:
“Most international legal experts consider state practice is forming, or has already established, international legal norms regarding continental states’ offshore archipelagos: the straight baseline system’s applicability to continental states’ offshore archipelagos is restricted to those archipelagos that can be seen as an integrated whole, with relatively small distances between the islands, and intimate connections between the waters and the mainland [. . . ]
“The most likely and most appropriate method for China’s territorial sea baselines in the Spratly Islands is to imitate the method used in the Diaoyu Islands, for example, taking the main islands and reefs such as Itu Aba, Pagasa, West York, Spratly and Mischief as the centre, and linking together the surrounding reefs to establish baselines [. . .]”
“Looking at historic rights, China has historic title to waters between the relatively close, intimately connected islands that qualitatively comprise a unified whole, these waters are historic waters, China’s internal waters . . . China has the right to take those groups of islands within the Spratlys that are relatively close to each other as a single entity to establish territorial sea baselines,[ZH] and China’s Spratly Islands in the SCS have maritime administrative zones such as territorial seas, EEZ and continental shelf.”
So the author(s) do in fact believe a “historic title” claim over “internal waters” enclosed by straight baselines exists in the Spratlys — but rather than covering the entire archipelago, as per the Paracels baselines in 1996, it would only cover those parts within the archipelago that are close together. Here’s the Diaoyu example they refer to:
The authors repeat this “within the Spratlys” + “close together” + “intimately connected” recipe for Spratly straight baselines (and thus the scope of internal waters subject to historic title) no less than 6 times, so it’s fair to conclude this was a point they were keen to get across. That would be a tough sell domestically given that it would probably exclude James Shoal, that shallow patch of ocean considered by many (probably most) Chinese people to be the southernmost point of the nation’s sacred territory. This would be one reason to think the party might not make a Spratly baseline declaration in the near future after all.
Another rambling post…i really ought to shut up and let things run their course. But the riddle of the nine-dash line continues to string me along rather compulsively. If any readers have made it this far then at least i mustn’t be the only one.
The first weekend after the July 12 Philippines vs China arbitration ruling — the “7.12 Incident” — has passed without reports of major anti-foreign protests.
There were, however, scattered cases of nationalist mobilization. There was at least one case of picketing outside a KFC in Hebei province (video), some smashing of iPhones (footage of which was often shared via iPhones), and a bunch of online dried mango retailers claiming to have switched their suppliers away from the Philippines.
Together with the various patriotic outpourings online, this was probably the largest set of collective actions by Chinese citizens on the South China Sea issue yet seen in China — bigger than Scarborough Shoal in 2012, or the peak of tensions in 2011, though still probably smaller and less intense than the demonstrations that would likely have occurred during the 2001 Sino-American EP-3 incident, had authorities had not prevented them.
While the Global Times hailed the “new wave of patriotism,” it was clear that, like in 2001, the party-state did not want real-world demonstrations. Municipal and university authorities were reportedly instructed to stay vigilantly on guard against potential mass gatherings. Nor, it seems, was online warmongering particularly desirable from the party’s perspective, with jingoistic Weibos encountering censorship.
An article published on the Communist Youth League’s Weibo illuminates some of the reasoning behind this desire to keep the patriotic outbursts relatively mild. It argues that much of the extreme nationalist outbursts are in fact “next-level smearing” (高级黑, referred to below as gaojihei) of China’s good patriots by anti-party elements posing as extreme nationalists.
Just how much of China’s ultra-nationalist output this actually accounts for is a wide open question. But the article offers evidence that it does explain at least some of the most visible and intense cases of what the outside world commonly understands as Chinese nationalism. In this way, it’s another illustration of how much more lurks behind shows of apparently anti-foreign mobilization besides simple “nationalist” ideology.
The examples cited suggest at least 4 distinct kinds of anti-regime motivation for extreme nationalist speech and actions:
- Critiquing the party’s ideological policies through parody;
- Giving patriotism negative associations;
- Fomenting domestic chaos that would destabilize party rule;
- Pushing for a war that would likely be disastrous for the party.
The article is written by one of the Communist Youth League’s most energetic proponents of pro-party “positive energy” in both China and Australia. Besides being on the committee of the All-China Youth Federation, Lei Xiying is a PhD student at Australian National University, whose previous projects include the “take a selfie with the flag,” setting up an Association for PhD Students and Outstanding Youth Scholars, and heavy promotion of last year’s military parade. He’s a prolific political commentator in the PRC state media, as well as in the Chinese-language media in Australia.
The author is, in short, a very worthy recipient of his Positive Energy Youth award bestowed on him by the Cyberspace Administration of China for being an “outstanding youth representative of online ideological construction.” As such, the article is illustrative of some of the issues facing the state’s leadership of popular nationalism on contentious foreign policy issues in the internet era, which i’ll return to briefly at the end.
Life’s-a-game memes and the hijacking of youth patriotism by “crazy uncles”
Communist Youth League Weibo, July 16, 2016
This afternoon a post-1995 netizen sent me a “patriotic” photograph that he found confusing.
At a glance, with the slogan “violators of my China, however distant, must be punished” it’s a hot-blooded emotional “patriot.” But look a bit closer . . . Excuse me? [The calligraphic banner] is “a gift for US President Putin” . . . look again, a bald, bespectacled, half-naked, very inelegant “crazy uncle” with bad posture hits your eye . . .
“Bro, his patriotic expression is weird, how could he say the American President is Putin…”
I replied to this post-95’s doubts in three decisive words: next! level! smear! (高！级！黑！)
Is this surprising? Actually no, it’s commonplace. Whenever big things happen in China, whenever the whole population’s patriotic sentiments rise, these kinds of gaojihei are sprayed out everywhere.
For example, the author says, during the Diaoyu crisis, a person who had once burned the 5-star red flag suddenly became a patriotic Diaoyu defender, inciting the masses to take to the streets. Other suspect “patriots” had bragged about using the occasion to help themselves to a free meal or Rolex watch. “As for those among the peaceful patriotic marchers who urged violence and looting, their shouting of patriotic slogans was the loudest, but what was their objective?”
In one common gaojihei, Lei notes, netizens purported to blame actress Zhao Wei, who has again been the target of nationalist criticism of late, for masterminding the South China Sea arbitration decision, the Turkish coup attempt, and the Nice terror attack in order to divert attention from her sins.
Lei makes an important distinction between those who initiate extreme nationalist actions and those who join in later:
The initiators of this type of information are generally troublemakers, while those who forward it on are overwhelmingly ordinary netizens with naive patriotic sentiments — their heart is good, but due to their unfamiliarity with the internet’s complex public opinion environment, they are used by people with a purpose.
Besides these, some groups who are normally very dissatisfied with the state, the current system and the present state of affairs, suddenly become interested in patriotism, and urge everyone to take to the streets, and take to the battlefield.
The author then provides several examples of such suspects.
Another concern is the attempts to link party-sactioned patriotism with the sickening violence seen in the anti-Japan demonstrations over the Diaoyu Islands in 2012.
Some people take the opportunity to smear and exaggerate the behaviour of “extremist elements,” and use this to “represent” and “denounce” the rational behaviour of the overwhelming majority of patriotic youth, enacting maximum distortion on patriotism.
Have we taken to the streets and smashed things? Committed violence? We are just playing with memes (表情包), OK?
The author then takes the opportunity to address some other criticisms of South China Sea patriotism. A comment observing two main types of nationalists, “very smart swindlers” and “very emotional idiots,” comes remarkably close to Lei’s own analysis of the initiators and followers noted above. Not surprisingly, his rebuttal does not acknowledge any such parallel:
Please do not force these meaningless labels on us, OK? If you must label us, we are the ‘party of memes’ (表情包党), OK?
In response to a middle-aged Weibo user’s observation that outbursts of patriotism tend to involve the denouncing of race-traitors:
We love the country but we do not arrest traitors, that was your generation’s hobby, our hobby is memes, OK?
In the words of noted scholar Liu Yang 刘仰: “If you trace the patriotic demonstrations over the past few years, you find that every time patriotic enthusiasm is ignited, a succession of acts of sabotage follow. Strong voices immediately appear afterwards, saying patriots are ‘angry youth,’ patriots are criminals, patriots are extremist terrorists, patriots are ignorant brain-dead! . . . Time after time patriotic enthusiasm has ended in farce. This may be the behind-the-scenes manipulators’ objective: [keep this pattern repeating] until one day when China really needs the power of patriotism no one will appear, like the villagers in the Boy Who Cried Wolf or King You’s generals after he played with the fire beacons (‘烽火戏诸侯’故事里的勤王之师).”
Thankfully, according to the author, the plot was thwarted thanks to the Communist Youth League sending out articles such as his own, discouraging any boycotts of any country’s products, and designating memes as the “patriotic form” of choice for today’s youth.
In conclusion Lei notes that critics of patriotism had different motivations corresponding to their generations. In contrast to the post-1970 and post-1980 generations (who presumably act on the basis of their westernised values), post-1950 and post-1960 critics of contemporary youth patriotism are often driven by their disillusionment with “the current system, road, and theory.” The article finishes with a rousing affirmation of the current generation:
Our understanding of history, of China, and of the world is inevitably more complete, more objective, more rational than that ‘historically burdened’ generation
. . .
this is why, after the 7.12 arbitration incident, we did not take to streets, scream protests, or even smash things up as some people had hoped . . . on the contrary we initiated a form of ‘mocking and scolding’ (嬉笑怒骂) unique to this generation.
Not sure if the summary above hangs together at all — the article itself is similarly disjointed — but it does raise a couple of issues facing the state’s leadership of popular nationalism on contentious foreign policy issues in the internet era.
First, as the Liu Yang quote suggests, the CCP state’s ability to tap into the power of popular nationalist mobilizations is significantly compromised by the moderate backlash their extreme elements generate. This point, borne out in Chris Cairns and Allen Carlson’s recent study of the 2012 wave of nationalism, has been recognized by other smart minds within the propaganda system. In a research interview in 2013, a state media employee familiar with audience costs theory observed that any international leverage China may gain from allowing domestic protests is greatly diminished when violence ensues. Not only does protest violence require suppression, thereby foregrounding the state’s ability to control nationalist outrage. It also brings forth strong anti-nationalist voices from across society, suggesting popular support for defiance of nationalist demands for escalatory foreign policy choices.
Second, perhaps reflecting the need to protect trade ties in a time of economic uncertainty, the CYL was clearly keen to specifically discourage boycotts among the youth, and substitute them with online “memes” (表情包). For the party-state to adopt these particular forms of internet-era youth expression as a vehicle for its propaganda makes perfect sense. But as a substitute for real political action it’s so openly inconsequential (and, due to the need for political correctness, humourless) that i wonder how this could possibly satisfy any genuine nationalist anger about the South China Sea issue — let alone the kind of general dissatisfaction with life that underpins at least part of it. This might be why some of the approved “memes” contained nods in the direction of slightly more violent Cultural Revolution-esque imagery (e.g. the one below).
What else is going on here? What am i missing about this “meme” strategy? As always, thoughts, suggestions, corrections etc. most welcome.
“The arbitrators will themselves be judged by history”: domestic aspects of China’s UNCLOS propaganda blitzPosted: June 27, 2016 There has rightly been plenty of attention directed towards the PRC’s furious campaign to enlist, or at least appear to enlist, international support for its rejection of the arbitral tribunal that will shortly adjudicate on 15 complaints about China’s actions in the South China Sea. The latest broadside against the tribunal from the People’s Daily is a helpful reminder of some domestic aspects shaping the propaganda blitz.
The wave of propaganda from China’s English-language mouthpieces (and presumably those in other languages too) is certainly not receding, and in fact judging by Xinhua’s Twitter stream it is gathering momentum.
The weekend just gone brought forth one of the more brazen pieces of propaganda from Xinhua, titled, Turkey agrees China’s stance for resolving disputes via dialogue. Readers who clicked through to the story may or may not have noticed that by “Turkey,” the article was in fact referring to Dogu Perincek, Chairman of the Patriotic Party, which has zero seats in the Turkish parliament, and who just recently got out of jail following one of Erdogan’s crackdowns.
But “Chairman of the Turkish Patriotic Party” sounds quite legitimate and credible, at least when translated into Chinese. Not surprisingly, then, the story was widely publicized in the domestic media under the headline: Turkish Patriotic Party Chairman says China has no duty to obey the South China Sea arbitration ruling.
This points to the importance of domestic considerations shaping China’s campaign to delegitimize the UNCLOS arbitration. As is so often the case, domestic may help explain quite a bit: the curiously un-legalistic tone of China’s critiques of the international legal process, with lots of high-strung rhetoric of brazen betrayals and malicious conspiracies instead; a fixation with getting foreigners to back the PRC’s position (even as the Beijing maintains its resolute opposition to “internationalizing” the issue); and a conga-line of usually obscure domestic organs lining up to say exactly the same thing, from the China Society of the Law of the Sea to the China Fisheries Association.
Besides pursuing the ever-elusive goal of “unified thinking” among party and military, there are good reasons why the CCP would be concerned about shoring up support among the general public in China. In early 2013, before the PRC had gone public with its rejection of the arbitration, about 6 out of 10 urban survey respondents indicated that they thought international arbitration sounded like a reasonable way of handling the South China Sea disputes. The article that appears below in summary translation, from the People’s Daily‘s foreign affairs commentary team “Zhong Sheng,” seems illustrative of how hard the CCP is trying to delegitimize the arbitration among domestic audiences. It appeared on p.3 of the official party mouthpiece, and became a top headline throughout the day on major commercial news portals on June 27.
The article also makes plain the PRC’s heavy stake in the ongoing viability of the UNCLOS system, which has put China is in the awkward position of trying not to undermine the convention while ceaselessly attacking an arbitration process constituted directly under its auspices. This may seem hopelessly contradictory, but in the CCP’s eternally-correct dialectical approach to policy there’s generally a way for the party to have its cake and eat it too. In this case, the correct handling of the contradiction lies in convincing domestic and international audiences that China is in fact defending the authority and integrity of the UNCLOS by rejecting the arbitration. Not only is the Philippines maliciously “abusing” the process, and the US hegemon puppeteering behind the scenes, the arbitrators themselves are reckless and ill-intentioned co-conspirators who will be judged by history.
(Now just repeat ad nausem and — bingo! — another contradiction inevitably resolved…as long as the immutable laws of history haven’t been infiltrated by those same shadowy forces who got to the law of the sea.)
Appearing next to the article in the People’s Daily print version was a piece proclaiming that participants at a conference at Leiden University, co-organized with Wuhan University, had concluded: Philippines’ South China Sea arbitration violates international legal principles. An English version of the latter piece is available here: Int’l experts question proceedings of South China Sea arbitration.
Top headline on Sina, QQ, Baidu, Huanqiu, NetEase news platforms under headline. “Party paper: China completely capable of towing away Philippines ship on Second Thomas Shoal”
“Zhong Sheng” begins by observing that America’s pushing of the militarization of the SCS and words and deeds showing off its weaponry, have deepened China’s concerns about harm to its own interests, and raised China’s resolve to increase its capabilities to defend those interests.
Of course, the islands of the SCS belong to China and no country even said anything to the contrary otherwise until the 1970s. But then,
“tempted by the prospect of resources, the Philippines and other countries, under the excuse that the islands were within 200nm of their shores, attempted to using maritime administrative rights claims to negate China’s sovereignty over the Spratlys. To use a common expression, China’s Spratly islands were looted.”
As to why the PRC allowed this to happen,
“it wasn’t because China did not have the ability to stop the illegal occupations, but rather because of China’s extremely restrained response. However, China has bottom lines, and no Chinese government administration has made any compromise on the sovereignty questions. Today, in the southern part of the South China Sea China does not have a single oil well, Chinese fishing boats are often impounded, and fisherfolk often detained. People should ask whether this is the ‘strong bullying the weak’ or the ‘weak bullying the strong.’ “
Since the 1960s China has settled border disputes with 12 out of 14 land neighbours. This is “the best example of China resolving disputes through bilateral negotiation, of its independent foreign policy, its peripheral diplomacy policy of good-neighbourliness, and its practice and upholding of international law.”
The story of Second Thomas Shoal, according to Zhong Sheng, is evidence of China’s good intentions:
“China is completely capable of towing away the Philippine ship grounded there, but for the sake of the overall situation of stability in the SCS, China has kindly and patiently waited, all along maintaining an extremely restrained attitude.”
The Philippines’ has openly engaged in vile treachery 背信弃义 by requesting arbitration, Zhong Sheng tells readers, for in 2011 Pres Aquino agreed to joint development and promised to resolve disputes through negotiation. But then 18 months later he wantonly filed for arbitration without even telling China beforehand.
UNCLOS article 298 provides for state parties to declare non-acceptance of dispute resolution processes, including arbitration. China did this in 2006 and nearly 30 other countries have done likewise. Thus,
“China’s non-acceptance and non-participation, much less recognition, is completely in accordance with international law including UNCLOS. It is proper and legitimate, and is an action that respects international law and safeguards the integrity and authority of the UNCLOS. If the tribunal ignores basic principles of UNCLOS, and basic common sense in international law, forcing a judgement, it will set a dangerous precedent, opening a maritime ‘Pandora’s Box’, for which the arbitrators will themselves be judged by history.”
Finally, America is militarizing the SCS in the name of opposing militarization – it’s America’s ships and aircraft making waves there, and American officials who are “issuing evil words that destroy the peace and stability of the region.”
“America’s advancing of the militarization of the SCS, and its words and deeds that show off its weaponry, have deepened China’s concerns about harm to its own interests, and raised China’s resolve to increase its capabilities to defend those interests.”
China’s capabilities and determination mean that it will not compromise. However, China has no intention of becoming a world superpower, or even a regional boss.
“America absolutely does not need to worry about a strong China challenging its global interests. Ideas about treasuring peace have been handed down through the generations in China, and the gene of peace is deeply planted in the blood of the Chinese people.”
Ding Gang, senior reporter at the People’s Daily, had an opinion piece in yesterday’s Huanqiu Shibao, titled, ‘Ding Gang: more “doing” required in the South China Sea‘.
Last year Ding argued passionately for cooperation with ASEAN, for complete clarification of China’s claims and even, in the latter article, that India and Vietnam should be allowed to explore oil Blocks 128 and 129. This time, however, he argues that China has done well out of the Scarborough Shoal standoff, and the lesson is that China should kickstart more of these incidents.
Ding is tapping into a very deep pool of rhetorical capital, which is discussed after the summary translation below.
Huanqiu Shibao (Global Times), August 29
By Ding Gang 丁刚, Senior reporter, Renmin Ribao
There is a saying in Chinese diplomacy, taoguang yanghui, yousuo zuowei. But given China’s vastly-increased national power, it’s the latter phrase, meaning “take some actions”, that may be more important — especially when it comes to the South China Sea.
The heat has gone down around Scarborough Shoal [China is effectively in control of the atoll — SSC]. Experts have said that the outcome of the Scarborough Shoal standoff shows that there is a “Huangyan Model” that China can use to solve its other problems in the SCS.