Abe’s strategy clearer after Japanese ISIS hostage crisis



The release of a video on Saturday showing a message thatHaruna Yukawa, one of the Japanese hostages captured byIslamic State (IS) militants, had been slaughtered, shocked both Japanese society and its Western allies. Official institutions in both Japan and the US consider the video is likely to be authentic.

The IS claimed last Tuesday it had abducted two Japanese and gave the Japanese government 72 hours to pay $200 million in ransom for the captives. The Abe administration was put in a conundrum. In front of requests from the victims’ families to save the hostages, the Japanese government vowed it would never give in to terrorism on one hand, on the other, it displayed a high-profile stance of striving to free the hostages. But it’s believed that the Abe administration would be unlikely to carry out a dramatic rescue, which has already decided the fate of the hostages.

The brutality of the IS has become well-known. They kill hostages in a cold-blooded manner. Now that Japan has become a victim of global terrorism, Tokyo may reassess the challenges it faces. In the past few years, Japanese rightists portrayed China as Japan’s major threat, despite the fact that China has never infringed upon Japan over the past century. It’s instead Japan that invaded China and persecuted Chinese people again and again.

The death of the hostage also offers a new excuse for Abe to lift the ban on collective self-defense. Abe will face fewer hurdles now if he decides to cooperate with the US strategic deployment and strengthen Japan’s military activities in the Middle East and its security deployment in East Asia.

Some claimed that Abe is more concerned about promoting rightist policies than rescuing hostages. For the good of peace in East Asia and the Japanese public, we hope such analysis is just speculative. Japan is not capable of playing an active role in the Middle East. East Asian countries are not supposed to be key targets of the atrocious IS. The Japanese hostage case sends a warning signal.

In the aftermath of the 9/11 attacks, the US has spent great efforts in ensuring its domestic security. However, US allies such as European countries and Japan have been constantly targeted by terrorism. It’s worthwhile studying the underlying reasons.

The attack on Charlie Hebdo seemingly unveiled the conflicts between the whole of European society and the Muslim community, but it was striking to see how the US tries to remain neutral over the issue.

Having a geopolitical advantage, Japan should be a country without enemies. However, the country is plagued with a terrible mess in its national strategy. It misperceives China as an imaginary enemy. Tokyo’s ultimate goal is said to be getting rid of US control, however, it is forced to defer to the US due to its confrontation with China. The killing of the Japanese hostage is more or less the price that Japan has paid for its support to Washington.

We strongly condemn the brutal killing by the IS. In the meantime, we hope Japanese public opinion will take a clear-cut attitude against any terrorist attack launched on China. – Global Times

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West should end its hypocrisy on anti-terror war!


Anti_terrorists_China-RussiaChinese and Russian policemen attend a joint anti-terror drill in Manzhouli City, north China’s Inner Mongolia Autonomous Region, Oct 20, 2014. [Photo/Xinhua]

Senior US leaders invited sharp criticism at home for not attending last week’s solidarity rally in Paris against the terrorist attack on French satirical magazine Charlie Hebdo in which 12 people were killed. As a result, US Secretary of State John Kerry was in Paris this week to make up for the mistake.

However, terrorist attacks on innocent civilians in Nigeria, where Boko Haram fighters killed hundreds of, if not more, ordinary people early this month, have not received the same attention in the US and the Western world as the Paris attack. Yet such double standards and hypocrisy of the Western world is nothing new.

Over the past few years, the US and some Western countries have not responded to the terrorist attacks against innocent civilians in Beijing, Kunming and the Xinjiang Uygur autonomous region the way they reacted to the Paris attack.

On several occasions, US State Department spokespersons have used the excuse that they need more information and investigation into the incidents in China to condemn them as terrorist attacks. But they did not ask any such question after the Paris attack.

Some Western news organizations have refused to describe the perpetrators at Kunming railway station in Yunnan province as terrorists, insisting on calling them “knife-wielding attackers”. And on the rare occasions that they have used the word terrorist, they put it within quotation marks as if the ruthless killers in China were any different from those in Paris or elsewhere in the Western world. One CNN report even posed the question, “Terrorism or Cry of Desperation?”, as if killing innocent civilians in China can be somehow justified.

Even though China and the US have common interests in fighting terrorism, some Americans still seem to believe that only those setting off bombs in New York are terrorists while those doing the same in Beijing or any other Chinese city demand a different description.

The West’s double standards are not restricted to China and Nigeria. The decade-old wars in Iraq and Afghanistan have cost the lives of hundreds of thousands of civilians, but the mainstream media outlets in the US have largely ignored the tragedies and focused on the loss of their own troops.

If the number of civilian casualties is a measure of the intensity of a terrorist attack, tragedies like the Sept 11, 2001, attacks have occurred multiple times in Iraq and Afghanistan. But the Western media don’t seem to care much about them.

Some Western observers have even found excuses for West’s inadequate response to the terrorist attacks in Kunming on March 1 last year in which 31 were killed and 141 injured. But by failing to immediately condemn the attacks against innocent civilians in Kunming and Xinjiang, these people have by default condoned the action of the perpetrators.

It is true that terrorists in the eyes of some could be freedom fighters in the eyes of others. That is why Osama bin Laden was a freedom fighter to the US in the 1980s but a top terrorist in the 21st century. And Nobel Peace Prize winner Nelson Mandela was still on the US terrorism watch list as late as 2008, years after stepping down as South Africa’s president.

There is no doubt that the US and its allies have failed miserably in their “war on terror” despite the more than 1,000 air strikes launched against the Islamic State group. In spite of the heavy bombardments, we have seen terrorists gaining strength and spreading their tentacles to more areas across the world.

And the Western world responds to this deadly threat with double standards.

By Chen Weihua China Daily/Asia News Network

The author, based in Washington, is deputy editor of China Daily USA. chenweihua@chinadailyusa.com

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Malaysian worked as janitor is a serious innovator


Malaysian innovator_G WalterTV star: Dr Walter showing the company’s big LED television.

From Janitor to serious innovator

MALACCA: As a university student, he worked as a janitor to earn some pocket money.

Dr Gabriel Walter, 37, who studied electrical engineering at an American university, now holds about 100 patents in electronic and electrical innovations.

The Kelabit boy from Bario, Sarawak, wants to break the monopoly of foreign brands selling their products at exorbitant prices.

For example, he has introduced a big screen light emitting diode (LED) television, which includes all connecting gadgets, and priced at about RM6,000 compared to popular foreign brands that can cost almost RM20,000.

There is also a smartphone application, costing just a few hundred ringgit, that can integrate home appliances with just a cyberspace connectivity.

“I am determined to make available quality, feature-perfect appliances that can communicate with any other devices in an ad hoc network with a single connectivity.

“All these wonders are packaged and assembled here and sold at affordable prices. It is a Malaysian invention,” he said in an interview.

Dr Walter, who was a Mara scholar, studied at the University of Illinois at Urbana-Champaign where he earned a doctorate.

He was an Adjunct Assistant Professor from 2003 to 2009 at the university, where he was also once a senior research scientist.

Despite his long list of achievements, Dr Walter has not forgotten his humble beginnings where his father used to live in a longhouse.

At a tender age, he started selling groundnuts to help supplement the family income.

“Life was hard then. I used to work as a janitor when I was studying in the United States as the scholarship was only adequate to cover my education,” he said.

Several months ago, Dr Walter returned to Malaysia for good after receiving a government grant of RM2mil for research and development before setting up his own manufacturing plant in Batu Berendam.

“I must thank former Chief Minister Tan Sri Ali Rustam who was persistent that I should set up a plant in Malacca when he first met me in 2006 during a bio-tech conference in the United States,” he said.

Dr Walter established Quantum Electro Opto Systems Sdn Bhd (QEOS) and launched its first commercial product based on its patented high-speed light-emitting technology known as tilted charge dynamics in 2013.

QEOS is based here with an office in the Silicon Valley, California, where Dr Walter is the chief executive officer.

His university mentors – professors Nick Holonyak Jr and Milton Feng – are part of his team.

The QEOS website stated that Prof Nick Holonyak Jr is widely regarded as the inventor of LED.

The company, it said, wanted to “pioneer the commercial development of high speed, low-cost and power efficient fiber optics communication solutions”.

By R.S. N. Murali The Star/ANN

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Will shale oil survive the price fall?


American shale oil enterprise WBH Energy filed for bankruptcy ro January 4, 2015. This could be the beginning of a shakeout of shale oil enterprises. Since 2010, the debt of America’s energy enterprises has increased 55 percent; meanwhile, the energy sector of S&P 1500 index has dropped rapidly. The shale oil revolution has not only been stricken by the low oil price, but also “abandoned” by investors. As liquidity runs short, small and medium-sized shale oil enterprises will either go bankrupt or be taken over if they survive the oil price crisis.

American shale oil

The reason for the oil price slump is becoming clearer: oversupply. However, since oil producers will not reduce output, the downward trend continues. Canadian heavy crude has dropped below 35 USD, a new low since February 2009. In the past six months, the price has fallen by 60 percent. We can say that the shale oil revolution is being blocked by the low oil price – in other words, it is being hindered by OPEC (Organization of Petroleum Exporting Countries), principally represented by Saudi Arabia. When the oil price dropped below 50 USD, OPEC had a meeting seeking consensus on maintaining oil output. The average production cost of OPEC is about 40 USD, while the cost of shale oil is above 60 USD. As long as the price is above 40 USD, OPEC can still make profit, but the shale oil enterprises will be squeezed out. At the end of 2014, in order to exploit the market for US oil producers, the US Department of Commerce lifted the ban on the export of condensate oil. The US has ended its 40-year oil export ban to join in competition with the other oil producers, which means that on the one hand the US has become an international oil producer, while on the other hand shale oil has had a huge impact on the world energy structure, and the world oil market has excess production capacity. For the US, shale oil has provided a new economic growth point and provided additional chips when competing with other oil producing countries. Therefore, the US government will offer necessary supports to shale oil enterprises. However, the market cannot be easily manipulated by one or two countries. The US wanted a moderate drop in the oil price, which would stimulate its economy as well as “fix” those insubordinate oil producing countries. But the downward trend of the oil price has been irresistible, and now threatens the survival of the American shale oil industry. Faced with the falling oil price, shale oil enterprises, with their relatively high production costs, have entered a crucial phase of life and death. Unless all the oil producing countries join hands to limit production and achieve a rebalancing of supply and demand, the oil price will not rebound in the short term. Saudi Arabia and the other Gulf countries blame the oil price crisis on the irresponsible behavior of non-OPEC oil producing countries, which in fact targets the shale oil producers. The new energy industry is suffering under the impact of the falling oil price too. The stock price of electric vehicle producer Tesla is also in a slump. But for the shale oil enterprises, this is an issue of life or death. – (People’s Daily Online) Related posts:

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Sony comedy film: The Interview looms cyber war as US-N.Korea tension spikes


The Interview is a 2014 American political comedy film directed by Seth Rogen and Evan Goldberg in their second directorial work, following This Is the End. The screenplay by Dan Sterling is from a story by Rogen, Goldberg and Sterling. The film stars Rogen and James Franco as journalists instructed to assassinate North Korean leader Kim Jong-un (played by Randall Park) after booking an interview with him. It received mixed reviews from critics.

The_InterviewIn June 2014, the North Korean government threatened “merciless” action against the United States if the film’s distributor, Columbia Pictures,went ahead with the release. Columbia delayed the release from October 10 to December 25, and reportedly edited the film to make it moreacceptable to North Korea. In November, the computer systems of parent company Sony Pictures Entertainment were hacked by the “Guardians of Peace”, a group the FBI believes has ties to North Korea. After leaking several other then-upcoming Sony films and other sensitive internal information, the group demanded that Sony pull The Interview, which it referred to as “the movie of terrorism”. On December 16, 2014, the Guardians of Peace threatened terrorist attacks against cinemas that played The Interview.

On December 17, after a number of major North American cinema chains canceled screenings in the interest of safety, Sony canceled the theatrical release of The Interview, drawing criticism from the media, Hollywood figures and U.S. President Barack Obama. After initially stating that it had no plans to release the film, Sony made The Interview available for online rental on December 24, and in a limited release at selected cinemas on December 25. – Wikipedia

 Cyber war looms as US-NK tension spikes

North Korea’s Internet and 3G networks were back to normal by midday Tuesday after hours of a strange shutdown. This blackout led to speculation that North Korea had been under cyber-attack from the US. It remains unknown whether the purported US-North Korea conflict will flare up into full-blown cyber war.

Sony Pictures, which has caught global attention for filming The Interview, a movie featuring the fictional assassination of North Korean leader Kim Jong-un, was attacked by a group of hackers recently. The FBI asserted that these hackers were sponsored by North Korea, and US President Barack Obama declared the US would make a “proportional response.” Thus, there are high suspicions that Washington is behind the attack.

Neither Washington nor Pyongyang has commented officially on the incident. There are more threats to cyber security than ever before, and hacking groups not backed by governments have become mainstream. Countries like the US have established cyber armies, but there has been no declaration of a cyber war so far. Any party suspected of launching cyber invasions using its regular cyber army always denies its involvement.

We hope that Washington and Pyongyang will not engage in war in cyberspace. Once they cross the Rubicon, there is no way back.

The current suspected tit-for-tat situation between North Korea and the US raises the risks of a cyber war. Pyongyang has shown its abomination toward Sony Pictures. However, having denied any connections with the attacks, it hailed these actions as justified.

Washington has revealed its inclination to retaliate against Pyongyang, which is why many assume the Internet blackout in North Korea was its doing. Washington’s response could be an overreaction, as it is implying that cyber attacks can be seen as a kind of legitimate state action, which will set a precedent for cyber wars.

Antagonism between North Korea and the US will remain a hot topic for quite a while in the international community. If more cyber attacks are launched in the near future, many people will believe that a cyber war between them has already broken out.

It is possible that Washington is trying to teach Pyongyang a lesson and show its strength through cyber attacks. But it must keep in mind that its advanced networks also have loopholes, which might be taken advantage of by a single hacker and a computer.

The US must not set an example by engaging in cyber warfare. It might prevail in the short term, but the already vulnerable Internet order will be mired in countless trouble.

This North Korea-US cyber conflict has also reminded China that it must reinforce its cyber security and act as a constructive role to guard peace across the Internet. As for the speculation that it was China that cut off North Korea’s Internet connections, these are spurious and do not merit our attention.- Global Times

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China once again boasts world’s fastest supercomputer


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The Tianhe-2, a supercomputer developed by China’s National University of Defense Technology, was named the world’s top supercomputer for the fourth consecutive time by the TOP500 project. [Photo/Xinhua]

The Tianhe-2, a supercomputer developed by China’s National University of Defense Technology, was named the world’s top supercomputer for the fourth consecutive time by the TOP500 project.

The Tianhe-2 relegated the US-developed Titan to second spot with a performance of 33.86 petaflop (quadrillions of calculations per second) in a standardized test designed to measure computer performance.

IBM’s Sequoia rounded out the top 3 in the TOP500 list.

The TOP500 project, started in 1993, issues a list twice a year that ranks supercomputers based on their performance.

There was little change in the top 10 in the latest list and the only new entry was at number 10 – the Cray CS-Storm, developed by Cray Inc, which also developed the Titan.

The United States was home to six of the top 10 supercomputers, while China, Japan, Switzerland and Germany had one entrant each.

The United States remained the top country in terms of overall systems with 231, down from 233 in June and falling near its historical low.

The number of Chinese systems on the list also dropped to 61 from 76 in June, while Japan increased its number of systems from 30 to 32.

– China Daily/ Asia News Nework

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Asia Pacific Economic Leadership Shifting from the US to China for Free Trade framework


Apec 2014 China_FTAAP roadmap

All together now: Apec leaders posing for a family picture at the International Convention Center at Yanqi Lake in Beijing. Front row from left, Indonesian President Joko Widodo, US President Barack Obama, Xi, Russian President Vladimir Putin, Philippine President Benigno Aquino III, (backrow from left) Japanese Prime Minister Shinzo Abe, Australian Prime Minister Tony Abbott, Najib and New Zealand Prime Minister John Key. — EPA

The Asia-Pacific Economic Cooperation (APEC) Summit that just concluded in Beijing was no doubt China’s show. Beijing came out looking very much what it is touted to be — the world’s second-largest economy now leading the charge towards a free-trade region known as the Free Trade Area of the Asia-Pacific (FTAAP). For a once-closed economy that was not even part of the global trading system, this is one giant leap. In doing so, China overshadowed and reduced a rival initiative by the United States — the Trans-Pacific Partnership (TPP), which excludes Beijing — to what is a subsidiary platform

Chinese President Xi Jinping has shown that the agenda of liberalising trade in the Asia-Pacific region cannot but take China into account; indeed, this agenda will be dictated by China from now on. To show how serious it is, the Beijing APEC Declaration came complete with a road map towards the realisation of the FTAAP, though a clear deadline was shelved for now.

With the US outmanoeuvred, the economic power game entered a second stage in Myanmar this week, where the Association of South-east Asian Nations (Asean) hosted the East Asia Summit, in which both China and the US are members (with Beijing represented by Prime Minister Li Keqiang).

Interestingly, Beijing saw the revival of APEC as a major platform for regional economic integration — led by China. APEC has actually been the vehicle for trade liberalisation in the Asia-Pacific region since it was formed in 1989. Indeed, the FTAAP is not a Chinese idea, as Singapore Prime Minister Lee Hsien Loong made clear, but an APEC vision conceived in 2004 with its end-goal being a huge Asia-Pacific free-trade area.

But APEC lost its shine over time when no clear big-power champion emerged with the visionary leadership and commitment of then US President Bill Clinton, who hosted the first summit in Seattle in 1993.

During APEC’s downtime years, ASEAN fell back on its own trade liberalisation process, the Asean Free Trade Area (AFTA), and preached the message of trade liberalisation to the wider region. Two major platforms then emerged: One was the TPP, for which the US took leadership, with the exclusion of China. The other was the Regional Comprehensive Economic Partnership (RCEP), an outgrowth of the Asean Plus Three Summit comprising the association’s three North-east Asian trading partners, China, Japan and South Korea, as well as Australia, India and New Zealand.

China easily dominates the RCEP and insists that it be an East Asian platform — meaning it has no room for the US. This is partly the reason the US is eager to have the TPP as the key pathway to reach the FTAAP.

While the RCEP and the TPP evolve as competing platforms, both China and the US have, of late, downplayed this rivalry. This is just as well for Asean, whose members are divided between support for the RCEP and for the TPP. Only four of the 10 Asean members — Brunei, Malaysia, Singapore and Vietnam — are currently involved in the TPP negotiations, which demand a higher standard of trade liberalisation. The RCEP, on the other hand, sits better with many Asean members, virtually all of which benefit from huge trade with China.

The Asean dilemma

Apec 2014 China_ASEAN NUMBERSBut while Asean as a whole values China as a close economic partner, the group is also wary about Beijing as a security threat. This has resulted in a two-dimensional relationship — a duality, as some have called it — that Asean has with China: A growing economic relationship paradoxically matched by increasing political tension caused by Beijing’s aggressive claims to parts of the South China Sea.

How this two-dimensional relationship could be managed provided the backdrop for the Asean Summit this week in Myanmar and the East Asia Summit.

By stepping on the accelerator towards the FTAAP, China has virtually also quickened the pace of Asean’s own economic and political integration. The goal of an Asean Community — including a fully-integrated Asean Economic Community by December 31 next year — cannot be further delayed. At the moment, 80 per cent of its integration targets have been realised, with the remaining “hard part” set to be tackled after 2015.

But surely, the next lap cannot be only about tackling the unfinished business. If Asean Community 2015 is yet another pathway to the FTAAP, what is the vision of Asean after next year? This is where the group’s leaders must put on their thinking caps and collectively forge a road map to a new Asean that is a global player firmly situated in the 21st century.

This new vision must take into account the rapidly evolving economic and security architecture in the Asia-Pacific region. As displayed in Beijing this week, it will be a future in which China will not be shy to assert its economic leadership — in the same way it has staked its political dominance in the region.

As Asean leaders were convening for their summit in Naypyidaw, US President Barack Obama and Mr Xi in Beijing attempted to reforge the strategic relationship between the US and China, probing each other for a new calculus. Their major bilateral agreement on climate change was achieved in this context. But Mr Obama is a lame-duck President on his way out, while Mr Xi, who is only two years in office, will be around for a full decade to lead a rising superpower.

Asean’s dilemma is this: It appreciates the increasingly prosperous relationship that is blossoming with China under Mr Xi. Yet, Asean knows it is also entering a potentially tense future with Beijing under a leader who is prepared to flex China’s muscles — as seen in the resulting volatility regarding the South China Sea. Curiously, the tensions over the territorial disputes cooled down somewhat during the busy summit period.

Will Asean remain a mere bystander, watching from the wings as the power game continues to unfold between the two giants? Or will Asean do something to secure its pivotal position so it can shape the future regional balance in its favour? This key question must have preoccupied Asean leaders in Naypyidaw. ― Today

By Yang Razali Kassim, a senior fellow at the S Rajaratnam School of International Studies at Nanyang Technological University.

Apec leaders all for free trade framework

BEIJING: The Asia-Pacific Economic Cooperation Economic Leaders’ Meeting hosted by China endorsed the Beijing Roadmap for Apec to promote and realise the Free Trade Area of the Asia-Pacific (FTAAP).

The roadmap details actions to be taken to achieve FTAAP – a trade liberalisation framework that China had pushed for – and includes undertaking a collective strategic study with results to be reported by 2016.

Prime Minister Datuk Seri Najib Tun Razak, during the summit held by the Yanqi Lake in the Huairou district, expressed Malaysia’s support on the roadmap.

“Malaysia sees the FTAAP as a natural progression for an overall trade arrangement across all economies in the region.

“What we have on the table now, such as the Trans-Pacific Partnership, Regional Comprehensive Economic Partnership and Pacific Alliance, are building blocks towards the larger FTAAP,” he said.

Najib also called on Apec members to find a way out of the World Trade Organisation (WTO) impasse and place the Bali decisions back on track.

It was reported that an impasse over a global pact hammered out in Bali last December to streamline Customs procedures had paralysed all negotiations in the WTO.

“If we do not find a way out of the impasse, it means that the WTO can no longer hold sway as a rule-making entity,” said Najib yesterday.

The Apec summit, attended by heads of states from 21 Pacific Rim economies, also adopted a Connec­tivity Blueprint to promote integration through physical, institutional and people-to-people connectivity.

Najib told Malaysian reporters here that Malaysia could play a role in enhancing connectivity in the Asia-Pacific region, citing bilateral projects such as the Malaysia-Singapore high-speed rail project as an example.

Chinese Premier Li Keqiang had reportedly expressed China’s interest to help build the rail link during his meeting with Najib on Monday.

Commenting on this, Najib said it was a bilateral project between Malaysia and Singapore and both countries would call for international tenders.

Najib also said Malaysia welcomed the blueprint on connectivity and commended China for initiating the Asian Infrastructure Investment Bank.

He left Beijing yesterday evening.

Commenting on the visit, Tan Sri Ong Ka Ting, who is the Prime Minister’s Special Envoy to China, said mutual trust between China and Malaysia was growing stronger, judging from Najib’s bilateral meetings with Chinese President Xi Jinping and Li in the Chinese capital.

“Najib was given special treatment. At China’s initiatives, he met both Xi and Li on the sidelines of the Apec summit,” Ong noted.

He added that Xi called for mutual support as China strived to realise the Chinese Dream and Malaysia the goal of becoming a high-income nation by 2020.

By Tho Xin Yin The Star/Asia News Network

 

ASEAN SUMMIT: China pushes for code at South China Sea

 

Asean 214 plus Three

Standing united: Najib (fifth from right) posing for photographs with Thein Sein (centre) and other Asean leaders during the closing of the 25th Asean Summit at the Myanmar International Convention Centre.

Beijing pledges US$20b in loans to boost Southeast Asian connectivity

China will push for the implementation of a code of conduct for the South China Sea – a document that will lessen the risk of escalating tensions in the area-but experts said such an agreement faces obstacles, at least in the short term.

Chinese Premier Li Keqiang reaffirmed China’s resolve to safeguard territorial sovereignty at a series of three regional meetings in Nay Pyi Taw, Myanmar, on Thursday, saying the country is willing to adhere to the code, which has been under discussion for more than a decade.

Leaders from the Philippines and Vietnam, countries that have seen maritime tensions with China rise, also attended the meetings.

“China and Southeast Asian countries are close neighbours with common interests and diversified concerns. It is inevitable-not strange at all-that differences emerge among us, but those differences will not affect the general stability in the South China Sea,” Li said at the East Asia summit.

“I believe that as long as we treat each other with sincerity and seek common ground while acknowledging differences, there will be no insurmountable obstacles that will stand in our way,” Li said.

Li said China’s policy of building partnerships with its neighbours is sincere and consistent, and the situation in the South China Sea has been stable as freedom and safety of navigation is ensured.

Foreign Minister Wang Yi said last year that the code should reflect “consensus through negotiations” and “elimination of interference”, indicating that maritime issues should be left to the parties directly involved to sort out through dialogue.

The declaration on the Conduct of Parties in the South China Sea was signed in 2002, in which all signatories agreed to work out a code of conduct to guide future activities in the region. But limited progress has been made in drafting the code since then.

In a bid to reach long-lasting peace in the region, Li pledged to speed up negotiations on a cooperation treaty.

China also agreed to establish a hotline for joint search and rescue efforts at sea as well as a hotline for senior officials.

Wu Shicun, president of the National Institute for South China Sea Studies, said the negotiation of the code has gone on for more than 10 years because of different opinions regarding how the document will be drafted and whether it will allow third-party intervention.

Lu Jianren, the chief researcher of Sino-Asean relations at Guangxi University, said the importance of the code lies in the fact that it rules out the use of military force as a means to resolve issues and that no party is allowed to take further action to escalate tension.

Economic ties

Also at Thursday’s summit, China promised more loans and economic aid to Southeast Asia.

China will provide $10 billion in preferential loans to Asean countries and another development loan of $10 billion specifically for infrastructure.

China also started on projects for the second phase of the China-Asean Investment Cooperation Fund, which totals $3 billion.

Engineers have begun preliminary work on a rail network, which will start in Kunming, Yunnan province, and connect Laos, Vietnam, Cambodia, Myanmar, Thailand, Malaysia and Singapore.

Kavi Chongkittavorn, senior fellow at the Institute of Security and International Study in Thailand, said China and Asean were forging ever closer ties and despite differences there are areas of growing cooperation.

“Economic opportunities exist for each party,” he said.

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