Congressional China Caucus

CHINA PROPOSES $10 BILLION LOAN FOR LATIN AMERICA COUNTRIES.  The BBC reports that China has offered to set up a $10 billion credit line for Latin American countries to support infrastructure projects in the region.  From the piece: “The proposal was made by China's Premier Wen Jiabao as he wrapped up his visit to the region.  He also proposed a free trade pact between China and South American trade bloc Mercosur, which includes Brazil, Argentina, Uruguay and Paraguay.  China has been keen to increase its trade with the region's economies.  ‘The Chinese government... will continue to offer economic assistance to countries in the region that are interested,’ Premier Wen was quoted as saying by the Reuters news agency… Meanwhile, China, which has the world's largest foreign exchange reserves, has been looking to for new areas invest some of its cash.  At the same time, China's infrastructure development companies have been keen to tap into new markets to expand their business.”  http://www.bbc.co.uk/news/business-18605450

CHINA TO OVERTAKE SILICON VALLEY, CLAIMS REPORT.  According to the WSJ, a poll of global executives showed that many believe that the center of technology innovation in the world will move from Silicon Valley to China.  From the piece: “KPMG’s global Tech Innovation Survey 2012 found 43 percent of respondents said Silicon Valley’s crown would be passed elsewhere by 2016. China was named as the country most likely to be the next innovation centre (45%), followed by India (21%) and Japan (9%) and Korea (9%).  Israel came in fifth while Europe barely featured.  The survey also found that China and the U.S. are the two countries most likely to come up with ‘disruptive technology breakthroughs’ that will have a global impact in the next two to four years.”  http://blogs.wsj.com/chinarealtime/2012/06/27/china-to-over-take-silicon-valley-claims-report/?mod=WSJBlog&mod=chinablog

MIGRANT WORKERS CLASH WITH POLICE IN SOUTH CHINA.  http://www.reuters.com/article/2012/06/27/us-china-riot-idUSBRE85Q07G20120627

AS U.S. LEAVES, OIL-HUNGRY CHINA STUCK IN MIDDLE EAST.  The WSJ reports that while the U.S. is poised to reduce its reliance on imported oil over the next two decades, China’s story is precisely the opposite.  From the piece: “As the U.S. looks closer to home to satisfy energy demand, China is expected to remain heavily reliant on Middle East oil. Beijing is already carving business, diplomatic and potential military in-roads through the region in a bid to shore up ties with traditional U.S. allies like Saudi Arabia as well as emerging producers such as Iraq.  Additionally, China is looking to imports from the Middle East and elsewhere to compensate for gradually slowing growth of Iran imports and supply concerns related to potentially long-term political instability in Sudan.  In short, analysts say, even as Beijing fears a growing reliance on Middle East crude, the rate of its economic growth leaves policy makers few options. As a result, China is settling in for a long-term economic and political presence in a region that for decades has overshadowed U.S. foreign policy.”  http://blogs.wsj.com/chinarealtime/2012/06/27/as-u-s-leaves-oil-hungry-china-stuck-in-middle-east/?mod=WSJBlog&mod=chinablog

VIETNAM SAYS CHINA OFFSHORE OIL AUCTION ‘ILLEGAL.’  http://www.google.com/hostednews/afp/article/ALeqM5gTD6ODf033uvtNn_fVs0zhOwJeZA?docId=CNG.226b44fa27f6d9cf3803072907320c2f.631

RESPONDING TO CHINA’S MANNED SPACE CHALLENGE.  A piece from Dean Cheng at the Heritage Foundation discusses what the role of the United States should be in responding to China’s growing presence in space.  From the piece: “For the U.S., its public image of being the leading space power is steadily eroding in the face of challenges from a nation that was far behind the U.S. and the Soviet Union at the start of the space age. Given that space is emblematic of national power, the U.S. should reinvigorate its public space efforts… Beijing has used its space program, including its manned space efforts, to highlight its technological prowess, build diplomatic bridges, and signal its growing military capabilities. Washington, despite a wider array of space capabilities, seems to have employed them less effectively, but it can make significant improvements.”  http://www.heritage.org/research/reports/2012/06/space-program-responding-to-china-s-manned-space-challenge

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.