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Media Report
November 01 , 2016
  • The Wall Street Journal comments: "Chinese leaders have learned to block their ears to China-bashing from U.S. presidential candidates... Once voting is over, they figure, it will be business as usual. They've been right time after time...This election, though, promises a different outcome...U.S. attitudes toward China are hardening across the political spectrum. Whoever wins— Hillary Clinton or Donald Trump—is likely to pursue a tougher line on a mix of issues from trade and investment to the South China Sea....As China's economic and military capabilities advance—and America declines against China in relative terms—the stage is set for a more intense round of strategic rivalry....Tensions are building in East Asia. Chinese intrusions into waters disputed with Japan are getting bolder....Some issues, such as North Korea, are building to a crisis. At some point, U.S. intelligence services are likely to inform the next president that Pyongyang has acquired the ability to strike American cities with nuclear missiles....The U.S.-China relationship will survive the messy democratic process. But a remarkable consensus on the need for China policy to stay stable between administrations seems to have been supplanted by an equally broad conviction: It's time for change."
  • Bloomberg comments: "Chalk up China as another example where a cheapening exchange rate is failing to lift exports. 'The support from a weaker yuan is negligible compared to the pressure we face from rising labor and materials costs,' said owner Sandy Chang. 'Foreign demand is already down. When growth is slow in our major markets, people just don't buy.' That tepid demand...means factories are yet to get a sustained shot in the arm from a currency that's weakened 9 percent against the dollar since August 2015....'China's not going to get much out of anything from further currency depreciation in a weak global economy,' Stephen Roach, a senior fellow at Yale University and former Morgan Stanley non-executive chairman in Asia, said...'You can cut your relative prices through depreciation, but if you don't have the external demand the impact is going to be limited.' With scant evidence the softer currency is doing much good for its vast manufacturing sector, officials and state-run media last week stepped up efforts to curb yuan depreciation concerns, talking up the currency as it traded near the weakest level in six years."

  • The New York Times reports: "China and Malaysia said their navies will cooperate more in the politically sensitive South China Sea in an agreement signed Tuesday during a visit by Malaysia's leader, who is seeking stronger ties with Beijing as he tries to offset a financial scandal at home. Prime Minister Najib Razak hopes to use his visit to Beijing this week to woo new investment and boost his image as he is shunned by Western leaders over the scandal, which has prompted a U.S. government investigation...He was given a red carpet welcome Tuesday by his Chinese counterpart, Li Keqiang. After meeting at the Great Hall of the People, they oversaw the signing of agreements, including a memorandum of understanding on defense cooperation....Malaysia claims a swath of the South China Sea north of Borneo, along with islands and reefs, but has been relatively understated amid the feuding among fellow claimants China, Vietnam and the Philippines. Last month, Najib said Malaysia will not compromise on its South China Sea claims, but wants them to be hashed out through dialogue and peaceful negotiations....Najib agreed with the Chinese premier 'to further advance the proper settlement of the South China Sea issue on a bilateral channel and through dialogue.' Beijing always prefers negotiating disputes on a one-to-one basis with the countries concerned, so it can bring more pressure to bear."
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