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

Hu also revealed that China had boosted its gold reserves by 76 per cent since 2003, makingit the fifth largest holder of gold. Beijing now has 1,054 tonnes of gold in its reserves, 454more than it did in 2003. Hu said that SAFE managed the nation's reserves well last yearwhen many overseas investment funds were incurring huge losses."On the whole, we at SAFE have been able to keep the valuation of assets under ourmanagement generally stable - by making different currencies and assetscomplement each other."David Jiang, Asia-Pacific head of BNY Mellon Asset Management, commented that Chinashould diversify its investments away from US treasury bonds to inflation-proof notes andother assets. "The economic recession may cause the depreciation of many currencies,especially the US dollar, and trigger a new round of inflation once the economy starts torecover."Fan Haibo, analyst of China Cinda Securities, said the central bank could increase its goldreserve considering the depreciation risk of some foreign currencies. "It is necessary to boostthe proportion of gold holdings because China has only 2.28 per cent of the global reservesand the United States has 31 per cent."China's Ministry of Finance said it would offer 30bn yuan (4.4bn US dollars) worth of treasurybonds next week in two equal tranches. China is increasing Treasury bond issues to financeits 4-trillion-yuan stimulus package over the next two years.24 April 2009 Beijing - Jia Qinglin, head of the China Council for the Promotion of PeacefulNational Reunification, and Chairman of the National Committee of the Chinese People'sPolitical Consultative Conference; met representatives of overseas Chinese antiindependenceorganizations. Jia called on Chinese anti-independence organizations tocontinue their promotion of national peaceful reunification and said that they had contributedin creating favourable conditions for the peaceful development of relations between the twosides of the Taiwan Straits.24 April 2009 Taipei - President Ma Ying-jeou of Taiwan instructed the Straits ExchangeFoundation (SEF) to discuss with China the signing of a cross-Taiwan Strait economiccooperation framework agreement (ECFA) in upcoming talks. SEF Chairman Chiang Pinkungwill lead the SEF delegation to the third round of cross-strait talks slated to open inNanjing on26 April. The upcoming talks between Chiang and his Chinese counterpart,Association for Relations Across the Taiwan Straits President Chen Yunlin, are expected tofocus on expanding cross-strait flight services, paving the way for financial cooperation,tackling cross-strait crime and providing legal assistance, as well as opening Taiwan toinvestment from China.Although the controversial ECFA - which Ma's administration has said is similar to a freetrade agreement with no political strings attached - is not on the agenda of the talks, it is anissue that the president feels strongly about. Ma has argued that if Taiwan does not signsuch an agreement with China, it risks being marginalized and losing its competitiveness asChina and neighbouring countries are about to sign FTAs and as Beijing continues to blockTaiwan's efforts to reach FTA agreements with other countries.In Chiang's entourage will be SEF Vice Chairman and Secretary-General Kao Koong-lianand Fu Dong-chen, vice chairman of the Cabinet-level Mainland Affairs Council, whichcoordinates Taiwan's policy towards China and oversees SEF operations. Other officials inthe 22-member delegation will also include Deputy Justice Minister Huang Shih-ming andFinancial Supervisory Commission Deputy Chairwoman Lee Chi-chu.On plans to allow Chinese investment in Taiwan, Minister of Economic Affairs Yiin Chii-ming31