Chinese Foreign Policy: A Chronology April - June 2009 - Defence ...

assuming responsibilities."Zhang Shiping, deputy chief of the war theory and strategy research department under theChinese Academy of Military Sciences noted:"Our navy will stick to the defensive strategy, even if it is capable to host aninternational fleet review and send flotillas further away to join in the Somali antipiracymission."The article also mentions China’s military strategy of ‘active defence’:“In January, China issued a white paper on China's National Defence in 2008, whichreiterated that "China implements a military strategy of active defence. Strategically, itpursues a principle featuring defensive operations, self-defence and attacking onlyafter being attacked."On the proposed aircraft carriers Zhang Xiaolin commented:"The PLA Navy will not alter its nature of peace, even if it has aircraft carriers. Webuild aircraft carriers to better protect the maritime security and interests of thecountry, instead of deterring or even violating the interests of other countries.Chinahas chosen to rise peacefully. Only a mighty military power can guarantee such apeaceful rise and contribute more to the maintenance of the world peace."Zhang further argued that since China has invested more in overseas areas and increaseddemands on energy sources, extending its sea transportation routes, the PLA Navy has anobligation to safeguard route security.24 April 2009 Beijing - The State Administration of Foreign Exchange (SAFE) noted thatChina reported surpluses both in current and capital accounts in 2008, although the countrywitnessed the first decline in the growth of its forex reserves since 2000. China reported asurplus of 426.1bn US dollars on current account in 2008, with an increase of 15 per cent,SAFE said. The country's surplus on capital account was 19bn US dollars, down 74 per centyear on year. The administration said the country received a capital inflow of 94.3bn USdollars from foreign direct investment and 42.7bn US dollars from securities investment, butsaw an outflow of 121.1bn US dollars in "other" investment, which was not identified by theadministration. China's foreign exchange reserves stood at 1.946 trillion US dollars at theend of last year, up 417.8bn US dollars from a year ago, SAFE said. The country's foreignexchange reserves have climbed to 1.9537 trillion US dollars by the end of March, accordingto latest figures released by the country's central bank.SAFE announced that China's outstanding external debt reached 374.66bn US dollars by theend of 2008, up 0.28 per cent, or 1.04bn U.S dollars from a year earlier. Long and mediumtermexternal debt, which accounted for 43.74 per cent of the total, stood at 163.9bn USdollars, up 6.74 per cent, or 10.3bn US dollars. Short-term external debt, however, fell 4.23per cent, or 9.3bn US dollars year on year to 210.8bn US dollars. In 2008, the newly-addeddebts increased by 0.81 per cent year on year, or 291m US dollars, to 36.3bn US dollars.The nation repaid principals for long and medium-term debt of 23.3bn US dollars, up 14.92per cent and interest of 4.15bn US dollars, down 16.22 per cent.SAFE announced that China earned $82.5 billion from nearly $2 trillion in foreign exchangereserves last year, and is now the fifth largest holder of gold. Hu Xiaolian, head of SAFE,said the $82.5 billion return was an increase of 8 per cent on the year before, and dismissedforeign media reports that China had lost "tens of billions of dollars" on the value of itsreserves during the economic crisis. "Not only has China managed to keep its foreignexchange reserves secure and in liquid investments, but it has also made a profit."30