Tag Archives: China

Vietnam Builds Military Muscle to Face China

By Greg Torode

XUAN MAI, Vietnam (Reuters) – Vietnam’s military is steeling itself for conflict with China as it accelerates a decade-long modernization drive, Hanoi’s biggest arms buildup since the height of the Vietnam War.

The ruling Communist Party’s goal is to deter its giant northern neighbor as tensions rise over the disputed South China Sea, and if that fails, to be able to defend itself on all fronts, senior officers and people close to them told Reuters.

Vietnam’s strategy has moved beyond contingency planning. Key units have been placed on “high combat readiness” – an alert posture to fend off a sudden attack – including its elite Division 308, which guards the mountainous north.

The two countries fought a bloody border war in 1979. The likely flashpoint this time is in the South China Sea, where they have rival claims in the Spratly and Paracel archipelagos.

“We don’t want to have a conflict with China and we must put faith in our policy of diplomacy,” one senior Vietnamese government official, who spoke on condition of anonymity, told Reuters. “But we know we must be ready for the worst.”

Most significantly, Hanoi is creating a naval deterrent largely from scratch with the purchase of six advanced Kilo-class submarines from Russia.

In recent months, the first of those submarines have started patrolling the South China Sea, Vietnamese and foreign military officials said, the first confirmation the vessels have been in the strategic waterway.

DIVISION 308

Militarily, the tensions are palpable northwest of Hanoi at the headquarters of Division 308, Vietnam’s most elite military unit, where senior army officers talk repeatedly about “high combat readiness”.

The phrase is on billboards beneath images of missiles and portraits of Vietnam’s late revolutionary founder, Ho Chi Minh, and its legendary military hero, General Vo Nguyen Giap.

Perched between Vietnam’s craggy northern mountains and the ancient rice paddies of the Red River Delta, 308 is Vietnam’s oldest division and still effectively guards the northern approaches to Hanoi.

Reflecting deep-set official sensibilities towards offending Beijing, one senior officer, Colonel Le Van Hai, said he could not talk about China. But Vietnam was ready to repel any foreign force, he told Reuters during a rare visit by a foreign reporter.

“Combat readiness is the top priority of the division, of the Ministry of Defense and the country. We can deal with any sudden or unexpected situation … We are ready,” he said.

“High combat readiness”, along with references to the “new situation”, increasingly feature in lectures by senior officers during visits to military bases and in publications of the People’s Army of Vietnam. The phrases also surface in talks with foreign military delegations, diplomats said.

“When Vietnam refers to the ‘new situation’, they are using coded language to refer to the rising likelihood of an armed confrontation or clash with China, particularly in the South China Sea,” said Carl Thayer, a professor at Australia’s Defense Force Academy in Canberra who has studied Vietnam’s military since the late 1960s.

While ramping up combat readiness, Hanoi’s once-reclusive generals are reaching out to a broad range of strategic partners. Russia and India are the main source of advanced weapons, training and intelligence cooperation. Hanoi is also building ties with the United States and its Japanese, Australian and Filipino allies, as well as Europe and Israel.

The outreach covers weapons purchases, ship visits and intelligence sharing but will have its limits. Hanoi shuns formal military alliances under a staunchly independent foreign policy.

Vietnam is seeking more Russian jet fighter-bombers and is in talks with European and U.S. arms manufacturers to buy fighter and maritime patrol planes and unarmed surveillance drones, sources have told Reuters. It has also recently upgraded and expanded air defenses, including obtaining early warning surveillance radars from Israel and advanced S-300 surface-to-air missile batteries from Russia.

Indeed, increases in Vietnam’s military spending have outstripped its South East Asian neighbors over the last decade, according to estimates by the Stockholm International Peace Research Institute (SIPRI).

“They are not doing this for national day parades … they are building real military capabilities,” said Tim Huxley, a regional security expert at the International Institute of Strategic Studies in Singapore.

OIL RIG FLASHPOINT

While communist parties rule both Vietnam and China and share political bonds, the two countries have a history marked by armed conflict and long periods of lingering mistrust.

Fresh academic research has revealed how the Sino-Vietnamese war in 1979 was more intense than is widely known, rumbling on into the mid-1980s. The two sides then clashed at sea in 1988 when China occupied its first holdings in the Spratly archipelago of the South China Sea – a defeat still acutely felt in Hanoi.

China also took full control of another South China Sea island chain, the Paracels, after a naval showdown with then South Vietnam in 1974. Hanoi still protests China’s occupation.

More recently, China’s placement of an oil rig in disputed waters for 10 weeks in the middle of last year sparked anti-Chinese riots across Vietnam.

The rig’s placement on Vietnam’s continental shelf 80 nautical miles from its coast was a game-changer, officials in Hanoi privately said, hardening suspicions about Chinese President Xi Jinping among political and military leaders.

Hanoi dispatched dozens of Vietnamese civilian vessels to confront the 70 coastguard and naval warships China sent to protect the oil rig in mid-2014.

“It was a reminder to all of us just how dangerous the South China Sea has become,” said one retired U.S. naval officer.

For its part, China’s military strategists have long been frustrated at the two dozen military outposts that Hanoi has fortified across the Spratlys since losing the Paracels in 1974, Chinese analysts say. China is building three air strips on man-made islands it is building on reefs in the Spratlys that it took from Vietnamese forces in 1988.

A statement to Reuters from China’s Defense Ministry said the two militaries had close, friendly relations and China was willing to work hard with Vietnam for regional peace.

“Both sides have frank exchanges of view on the South China Sea … both sides should look for a basic, lasting solution both sides can accept,” the statement said.

China’s historic claim to most of the South China Sea, expressed on maps as a nine-dash line, overlaps the exclusive economic zones of Vietnam, the Philippines, Malaysia and Brunei. Taiwan also has claims in the area.

Some $5 trillion in ship-borne trade passes through the waterway every year, including most of the oil imported by China, Japan and South Korea.

‘PSYCHOLOGICAL UNCERTAINTY’

The importance to China of protecting its submarine base on Hainan Island – the projected home of its future nuclear armed submarine fleet – could be another flashpoint. Beijing also has jet fighters and many of its best warships stationed around Hainan Island. This South Sea Fleet is close to Vietnam’s northern coast and its vital deep water access channels to the South China Sea and beyond.

Vietnamese generals make clear to foreign visitors they know their limitations. Two decades of double-digit increases in defense budgets have given China a vastly larger and better equipped navy, air force and army.

Foreign military envoys say they struggle to gauge Vietnam’s actual capabilities and how well they are integrating complex new weapons. They are given little access beyond Hanoi’s gilded staterooms.

Vietnamese military strategists talk of creating a “minimal credible deterrent” – raising the costs of any Chinese move against Vietnam, whether it is a naval confrontation or an attack across the 1,400-km (875-mile) northern land border.

If conflict did break out, Hanoi could target Chinese-flagged merchant container and oil ships in the South China Sea, said Thayer, who said he was told this by Vietnamese strategists.

The aim would be not to defeat China’s superior forces but “to inflict sufficient damage and psychological uncertainty to cause Lloyd’s insurance rates to skyrocket and for foreign investors to panic”, Thayer said in a paper presented to a Singapore conference last month.

Vietnam’s foreign ministry did not respond to requests for comment on this story.

(Additional reporting by Ben Blanchard in Beijing and Ho Binh Minh and My Pham in Hanoi.; Editing by Dean Yates and Bill Tarrant.)

Beijing Issues First ‘Red Alert’ for Smog

Officials in Beijing have issued the city’s first red alert for smog.

The Chinese capital city’s Municipal Environmental Protection Bureau issued the alert on Monday. In a translated posting on its website, the bureau said the warning was issued “to protect public health” and “reduce the degree of air pollution.”

The posting indicates that “heavy air pollution” is expected to continue through Thursday.

The Associated Press reported that the levels of fine particle matter (called PM 2.5) were approaching 300 micrograms per cubic meter on Monday. That’s 12 times the level that the World Health Organization, an arm of the United Nations, lists as a guideline for those particles.

The website posting indicates that schools are encouraged to close and that officials will be strengthening emergency measures. The city is also stepping up its public transportation and instituting alternating driving days for vehicles, among other pollution-curbing techniques.

The Xinhua News Agency reported it’s the only time a red alert was issued in Beijing since 2013, the year in which the city implemented emergency management protocols for air pollution.

The red alert was issued as leaders from China and nearly 200 other countries were entering the second week of a two-week climate changes summit in Paris. Much of the focus at the COP21 conference is how to reduce global greenhouse gas emissions and curb rising temperatures.

China emits more greenhouse gasses than any other country in the world.

Cyber War Between Hacktivist Group “Anonymous” and ISIS Escalates

As world powers such as Russia, France, and recently China begin to ramp up the fight against ISIS on the ground, the hacktivist group “Anonymous” has escalated their fight against the terrorist organization via cyber war.

Earlier this week, Anonymous posted a video on YouTube declaring war on ISIS. Since then, CBS News reports that they have been responsible for taking down more than 3,800 ISIS-linked Twitter accounts. Their latest video, released on Wednesday, stated that they have taken down more than 20,000 accounts and even offered a link to the list of Twitter accounts that have been taken offline.

Despite their success taking down ISIS related Twitter accounts, the group has escalated their tactics. They have now issued a guideline for hacking ISIS, and indicated they would be spamming ISIS related Twitter accounts that aren’t immediately taken down, according to NBC News.

As a response to the recent threat, ISIS had issued a set of basic rules for protecting themselves against Anonymous hackers. The measures were sent via an encrypted chat app called Telegram using the alias “Khilafah News.” The International Centre for the Study of Radicalization (ICSR) was the organization that spotted the messages, and the channel ISIS was using has since been shut down.

“O’ brothers of tawheed,” the message starts (tawheed in Islam refers to the oneness of God), “The #Anonymous hackers threatened in new video release that they will carry out a major hack operation on the Islamic State (idiots)… So U should follow the instructions below to avoid being hacked.” The instructions include frequently changing IP addresses, not communicating with people they don’t know on Twitter or Telegram, and not using the same name for emails and Twitter usernames.

And while Anonymous is taking the fight to ISIS, experts say that they are doing little to hurt the terrorist organization.

“They’re not going to be able to disrupt operations or coordination within the ISIS network,” said Denise Zheng, deputy director and senior fellow for the Strategic Technologies Program at the Center for Strategic and International Studies told CBS News. “It’s much more of an annoyance, really, I think, to them, than anything else.”

As mentioned above, China has recently stepped into the fight against ISIS after the terrorist group recently released an article in their magazine stating that they executed Chinese national Fan Jinghui. China has vowed to bring ISIS to justice. Jinghui is the first known Chinese national to be killed by the Islamic State, according to CNN.

 

President Obama Tells China to Quit Land Reclamation of South China Sea

President Obama spoke on the sidelines of an economic summit of Asia Pacific nations and stated that China had to stop claiming land in the South China Sea.

Obama continued by pledging money and naval assistance to the Philippines who are competing with China for the region due to its many resources.

“We discussed the impact of China’s land reclamation and construction activities on regional stability,” Obama said.

“We agree on the need for bold steps to lower tensions, including pledging to halt further reclamation, new construction, and militarization of disputed areas in the South China Sea,” Obama told reporters after a meeting, according to USA Today.

BBC News reports that China’s land reclamation began in late 2013 when they began building islands on reefs. They continue to claim that their actions are legal and they have “no intention to militarise” those islands.

The Asia-Pacific Economic Cooperation (APEC) meeting will discuss the South China Sea dispute. The summit brings together 21 leaders of the Pacific Rim. Smaller countries – including the Philippines, Vietnam, Malaysia, Brunei, and Taiwan – worry that China will dominate the area and its oil and gas resources.

According to Yahoo! News, China responded to President Obama’s remarks by saying the U.S. should not get involved in the South China Sea dispute.

“The United States should stop playing up the South China Sea issue, stop heightening tensions in the South China Sea and stop complicating disputes in the South China Sea,” Hong Lei, a foreign ministry spokesman, said at a regular press briefing in Beijing.

“No country has the right to point fingers at” China’s construction activities, he added.

Beijing has claimed nearly all of the South China Sea, including waters near the coasts of other countries.

New “Superbug” Gene Found in People and Pigs in China Makes Bacteria Antibiotic-Resistant

Scientists in China have made the “alarming” discovery that another line of defense against infection may have been breached.  In research studies led by Hua Liu from the South China Agricultural University, they have identified infectious bacteria that may be resistant to antibiotics.

The University published their work in the Lancet Infectious Diseases journal finding the gene called mcr-1, on plasmids – mobile DNA that can be easily copied and transferred between different bacteria.

According to several news reports, these untreatable superbugs originated in animals before spreading to humans and are highly resistant to antibiotics known as polymyxins, our last line of defense against disease when all else fails.

They include E.coli, the pneumonia bug Klebsiella pneumoniae, and Pseudomonas aeruginosa which can trigger serious lung, blood, and surgical infections.

Professor Nigel Brown, president of Britain’s Microbiology Society, said: “This discovery that resistance to polymyxins can be transferred between bacteria is alarming.

“Now that it has been demonstrated that resistance can be transferred between bacteria and across bacterial species, another line of defense against infection is in danger of being breached.

“We need careful surveillance to track the potential global spread of this resistance, and investment in research to discover new drugs with different modes of action.”

According to  Reuters, researchers warned that these findings suggest “the progression from extensive drug resistance to pandrug resistance is inevitable.”

“(And) although currently confined to China, mcr-1 is likely to emulate other resistance genes … and spread worldwide.”

China and Taiwan Leaders to Meet for First Time Since 1949

Chinese President Xi Jinping will meet with Taiwanese President Ma Ying-jeou on Saturday, the first time since the two governments split in 1949 at the end of the Chinese civil war.

Both leaders have stated that Saturday’s meeting will focus on relations across the Taiwan Straits.

Reuters reports that the timing of the meeting takes place at the same time as a rising anti-China sentiment sweeps Taiwan. With elections in Taiwan only a few weeks away, analysts believe the meeting is a sign that China is worried about the opposing party winning the election. This would ruin the currently rebuilt relations between China and Taiwan that the current Taiwanese president made a key policy since he took office in 2008. Since Ma has been president, China and Taiwan have signed 23 deals covering transit, investments, and mainly trade.

This could mean war between China and Taiwan as the Chinese government has threatened to use military force against Taiwan if the country ever tried to gain total independence, according to BBC News. China does claim sovereignty over Taiwan and believes the two will be reunited in the future.

Last year, Chinese President Xi recommended a one-country, two-system joint rule where Beijing controlled Taiwan, but Taiwan would continue to retain a political system and some autonomy.

Taiwanese officials and President Ma will hold press conferences regarding the meeting on Wednesday and Thursday.

Tensions Rise Between U.S. and China Over South China Sea Disputes

Recently, on a visit to Stanford Center at Peking University in China, U.S. Pacific Command, Adm. Harry Harris Jr. clarified and defended decisions to sail a U.S. naval destroyer near a Chinese occupied island in the disputed water of South China Sea.

Harris, acknowledged the dispute but continued to stress the increasing cooperation between both the U.S. and Chinese militaries, giving the coordinated search for missing Malaysia Airlines Flight MH370 as an example.

Despite these corporations, the U.S. and many other regional governments continue to express concern over the China’s building of artificial islands and then using those islands as landing strips with placed surveillance

According to Harris, last week’s action by the USS Lassen was designed to show that the United States would not tolerate any interference with freedom of navigation in nearby waters.

$5 trillion in global trade pass every year through the South China Sea. China claims most of it, though Vietnam, Malaysia, Brunei, the Philippines and Taiwan have made rival claims.

China protested the Lassen patrol, calling it a “deliberate provocation,” and sent two warships to shadow the U.S. vessel and issue warnings. International law allows warships to transit other countries’ territorial seas under the principle of “innocent passage.”

Despite Beijing’s intense displeasure, the U.S. Government will continue to patrol those areas in the South China Sea. Admiral Harris said in a prepared statement, “These operations serve to protect the rights, freedoms and lawful uses of the sea and airspace guaranteed to all nations under international law.”

Ted Koppel States that the U.S. is Unprepared for an Attack on the Power Grid

Veteran journalist, Ted Koppel, is getting the word out to the American public that the U.S. does not have a plan for a cyberattack against the power grid.

In his latest book “Lights Out,” Koppel writes on what would happen if another country took out the nation’s power grid via hacking, and how it would be difficult for unprepared American residents to survive.

“It’s frightening,” Koppel told CBS News. “I mean, it is frightening enough that my wife and I decided we were going to buy enough freeze-dried food for all of our kids and their kids.”

Koppel went on to say that the former Chief Scientists of the NSA told him that Russia and China were already in the power grid. And soon, Iran and terrorist groups like ISIS may be able to hack their way into the power grid’s system that is connected to the Internet.

“I’m not sure why it hasn’t happened yet,” cyber security consultant Larry Pesce told CBS. “It’s definitely not for lack of capability on various parts, be it us or the enemy. I think it comes down to timing. I think we need to make the right people mad at the right time.”

According to Koppel, he has talked with every former secretary of Homeland Security and they all said the same thing: there is no plan for a cyberattack against the power grid. However, Homeland Security replied to CBS saying that there is a plan, but they did not give details.

A former Defense Department official, Paul Stockton, told CBS that Koppel is wrong. While there is a plan in place, Stockton did admit that there could be improvement in security measures both through the government and the power companies.

“The government is building plans very, very quickly now to help manage the consequences of an attack on the grid,” Stockton said.

Stockton did add that Koppel was smart for stocking up on food and water for him and his family.

Average citizens need to be able to take care of their own families and their own neighborhoods and their own communities, and not assume that Uncle Sam is somehow going to magically bring in the cavalry and rescue them,” he said.

Special Report: Exposed – Beijing’s cover global radio network

Photo courtesy of Reuters/Navesh Chitrakar

By Koh Gui Qing and John Shiffman

BEIJING/WASHINGTON (Reuters) – In August, foreign ministers from 10 nations blasted China for building artificial islands in the disputed South China Sea. As media around the world covered the diplomatic clash, a radio station that serves the most powerful city in America had a distinctive take on the news.

Located outside Washington, D.C., WCRW radio made no mention of China’s provocative island project. Instead, an analyst explained that tensions in the region were due to unnamed “external forces” trying “to insert themselves into this part of the world using false claims.”

Behind WCRW’s coverage is a fact that’s never broadcast: The Chinese government controls much of what airs on the station, which can be heard on Capitol Hill and at the White House.

WCRW is just one of a growing number of stations across the world through which Beijing is broadcasting China-friendly news and programming.

A Reuters investigation spanning four continents has identified at least 33 radio stations in 14 countries that are part of a global radio web structured in a way that obscures its majority shareholder: state-run China Radio International, or CRI.

Many of these stations primarily broadcast content created or supplied by CRI or by media companies it controls in the United States, Australia and Europe. Three Chinese expatriate businessmen, who are CRI’s local partners, run the companies and in some cases own a stake in the stations. The network reaches from Finland to Nepal to Australia, and from Philadelphia to San Francisco.

At WCRW, Beijing holds a direct financial interest in the Washington station’s broadcasts. Corporate records in the United States and China show a Beijing-based subsidiary of the Chinese state-owned radio broadcaster owns 60 percent of an American company that leases almost all of the station’s airtime.

China has a number of state-run media properties, such as the Xinhua news agency, that are well-known around the world. But American officials charged with monitoring foreign media ownership and propaganda said they were unaware of the Chinese-controlled radio operation inside the United States until contacted by Reuters. A half-dozen former senior U.S. officials said federal authorities should investigate whether the arrangement violates laws governing foreign media and agents in the United States.

 

“SERIOUS INQUIRY”

A U.S. law enforced by the Federal Communications Commission (FCC) prohibits foreign governments or their representatives from holding a radio license for a U.S. broadcast station. Under the Communications Act, foreign individuals, governments and corporations are permitted to hold up to 20 percent ownership directly in a station and up to 25 percent in the U.S. parent corporation of a station.

CRI itself doesn’t hold ownership stakes in U.S. stations, but it does have a majority share via a subsidiary in the company that leases WCRW in Washington and a Philadelphia station with a similarly high-powered signal.

Said former FCC Chairman Reed Hundt: “If there were allegations made about de facto Chinese government ownership of radio stations, then I’m sure the FCC would investigate.”

U.S. law also requires anyone inside the United States seeking to influence American policy or public opinion on behalf of a foreign government or group to register with the Department of Justice. Public records show that CRI’s U.S. Chinese-American business partner and his companies haven’t registered as foreign agents under the law, called the Foreign Agents Registration Act, or FARA.

“I would make a serious inquiry under FARA into a company rebroadcasting Chinese government propaganda inside the United States without revealing that it is acting on behalf of, or it’s owned or controlled by China,” said D.E. “Ed” Wilson Jr., a former senior White House and Treasury Department official.

CRI headquarters in Beijing and the Chinese embassy in Washington declined to make officials available for interviews or to comment on the findings of this article.

Justice Department national security spokesman Marc Raimondi and FCC spokesman Neil Grace declined to comment.

Other officials at the FCC said the agency receives so many license applications that it only launches a probe if it receives a complaint. People familiar with the matter said no such complaint has been lodged with the FCC about the CRI-backed network in the United States.

 

BUILDING “SOFT POWER”

Chinese President Xi Jinping, who has chafed at a world order he sees as dominated by the United States and its allies, is aware that China struggles to project its views in the international arena.

“We should increase China’s soft power, give a good Chinese narrative and better communicate China’s message to the world,” Xi said in a policy address in November last year, according to Xinhua.

CRI head Wang Gengnian has described Beijing’s messaging effort as the “borrowed boat” strategy – using existing media outlets in foreign nations to carry Chinese propaganda.

The 33 radio stations backed by CRI broadcast in English, Chinese or local languages, offering a mix of news, music and cultural programs. Newscasts are peppered with stories highlighting China’s development, such as its space program, and its contribution to humanitarian causes, including earthquake relief in Nepal.

“We are not the evil empire that some Western media portray us to be,” said a person close to the Communist Party leadership in Beijing who is familiar with the CRI network. “Western media reports about China are too negative. We just want to improve our international image. It’s self-protection.”

In some ways, the CRI-backed radio stations fulfill a similar advocacy role to that of the U.S.-run Voice of America. But there is a fundamental difference: VOA openly publishes the fact that it receives U.S. government funding. CRI is using front companies that cloak its role.

A few of the programs broadcast in the United States cite reports from CRI, but most don’t. One program, The Beijing Hour, says it is “brought to you by China Radio International.”

Some shows are slick, others lack polish. While many segments are indistinguishable from mainstream American radio shows, some include announcers speaking English with noticeable Chinese accents.

The production values vary because the broadcasts are appealing to three distinct audiences: first-generation Chinese immigrants with limited English skills; second-generation Chinese curious about their ancestral homeland; and non-Chinese listeners whom Beijing hopes to influence.

One thing the programs have in common: They generally ignore criticism of China and steer clear of anything that casts Beijing in a negative light.

A top-of-the-hour morning newscast on Oct. 15, broadcast in Washington and other U.S. cities, was identified only as “City News.” It reported that U.S. officials were concerned about cyber attacks, including one in which the personal information of about 20 million American government workers was allegedly stolen. The broadcast left out a key element: It has been widely reported that U.S. officials believe China was behind that hack.

Last year, as thousands of protesters demanding free elections paralyzed Hong Kong for weeks, the news on CRI-backed stations in the United States presented China’s point of view. A report the day after the protests ended did not explain why residents were on the streets and carried no comments from protest leaders. The demonstrations, a report said, had “failed without the support of the people in Hong Kong.”

Many of these stations do not run ads and so do not appear to be commercially motivated.

 

THREE SURROGATES

Around the world, corporate records show, CRI’s surrogates use the same business structure. The three Chinese businessmen in partnership with Beijing have each created a domestic media company that is 60 percent owned by a Beijing-based group called Guoguang Century Media Consultancy. Guoguang, in turn, is wholly owned by a subsidiary of CRI, according to Chinese company filings.

The three companies span the globe:

• In Europe, GBTimes of Tampere, Finland, has an ownership stake in or provides content to at least nine stations, according to interviews and an examination of company filings.

• In Asia-Pacific, Global CAMG Media Group of Melbourne, Australia, has an ownership stake in or supplies programming to at least eight stations, according to corporate records.

• And in North America, G&E Studio Inc, near Los Angeles, California, broadcasts content nearly full time on at least 15 U.S. stations. A station in Vancouver also broadcasts G&E content. In addition to distributing CRI programming, G&E produces and distributes original Beijing-friendly shows from its California studios.

In a Sept. 16 interview at his offices near Los Angeles, G&E president and CEO James Su confirmed that CRI subsidiary Guoguang Century Media holds a majority stake in his company and that he has a contract with the Chinese broadcaster. He said that a non-disclosure agreement bars him from divulging details.

Su said he complies with U.S. laws. G&E doesn’t own stations, but rather leases the airtime on them. “It’s like a management company that manages a condominium,” he said.

Su added that he is a businessman, not an agent for China. “Our U.S. audience and our U.S. public has the choice,” Su said. “They can choose to listen or not listen. I think this is an American value.”

GBTimes CEO Zhao Yinong, who spearheads the European arm of the expatriate radio operation, confirmed that he receives several million euros a year from CRI. In an interview in Beijing, Zhao said he was “not interested in creating a false China” and he had “nothing to hide.”

Tommy Jiang, the head of CAMG, the Australian-based company that owns and operates stations in the Asia-Pacific region, declined to comment.

 

BORN IN A CAVE

CRI has grown remarkably since its founding in 1941. According to its English-language website, its first broadcast was aired from a cave, and the news reader had to frighten away wolves with a flashlight. Today, CRI says it broadcasts worldwide in more than 60 languages and Chinese dialects.

CRI content is carefully scripted, with the treatment of sensitive topics such as the banned Falun Gong spiritual group adhering strictly to the government line. Those restrictions might make China’s soft-power push an uphill battle with audiences in places like Houston, Rome or Auckland.

But CRI does have something to offer station owners. Since 2010, CRI’s broadcast partner in the United States has struck deals that bailed out struggling community radio stations, either by purchasing them outright or paying tens of thousands of dollars a month to lease virtually all their airtime. The latter is known as “time-brokering” and is the method G&E used to take to the air in Washington.

The 195-foot towers broadcasting Beijing’s agenda throughout the Washington region are located in suburban Loudoun County, Virginia, near Dulles International Airport. They pump out a 50,000-watt signal, the maximum for an AM station in the United States.

The towers went live in 2011. In the previous five decades, before the Chinese got involved, the station was known as WAGE, and it used smaller equipment and broadcast mostly local news and talk.

At just 5,000 watts, the signal didn’t carry far. This didn’t matter much until the 1990s, when Loudoun County boomed into a bedroom community for Washington. Commuters would lose the signal halfway to the capital.

In 2005, an American company called Potomac Radio LLC purchased the station and added some nationally syndicated programming. Potomac Radio president Alan Pendleton said his company had a history of leasing time to ethnic programmers, including an hour a day to CRI on another station. Revenue at WAGE continued to fall, however, and in 2009, it went off the air.

“It was a painful, painful experience,” said Pendleton. “We were losing millions of dollars a year down the drain.”

 

LOUDOUN COUNTY’S “LAST HOPE”

Saying they hoped to resurrect the station, other Potomac Radio executives asked Loudoun County in 2009 for permission to erect three broadcast towers on land owned by a county utility, records show. The new towers would boost the station’s signal tenfold to 50,000 watts, reaching into Washington.

In their application, Potomac Radio executives argued that the new towers offered the “last hope to retain Loudoun County’s only” radio station. The paperwork made no mention of plans to lease airtime to Su and CRI.

Potomac Radio also invoked the attacks of Sept. 11, 2001, a day when the station provided “critical information to county businesses and parents” as mobile phone service became overloaded. The new towers would contribute to public safety, proponents said.

The county Board of Supervisors approved the towers. In the days before the station came back on air in April 2011, Potomac Radio sought FCC permission to change the name to WCRW.

Asked about the initials, Pendleton confirmed that they stand for China Radio Washington. The change was his idea, not CRI’s, he said.

Loudoun County officials were surprised when the amped-up station returned as WCRW and began broadcasting G&E and CRI content about China.

“It was all very deceptive,” said Kelly Burk, a county supervisor at the time. “They presented it as all about being about local radio, and never let on what they were really up to.”

Potomac Radio’s Pendleton said there was no deception. His company was approached by CRI several months after the county approved the towers, he said.

Pendleton said he didn’t know that G&E was 60 percent owned by a subsidiary of the Chinese government until Reuters informed him. But the arrangement complies with FCC law, he said, because G&E leases the airwaves instead of owning the station.

In any event, he said, CRI is open about its goals: to present a window into Chinese culture and offer Chinese points of view on international affairs.

“If you listen to other state-sponsored broadcasters,” especially Russia’s, “they’re really insidious,” Pendleton said. “CRI’s not like that at all.”

Pendleton said he has no input in WCRW content: He simply rebroadcasts whatever programs arrive from CRI’s man in America, G&E founder James Su.

 

CHINA’S “PROXY”

James Yantao Su was born in Shanghai in 1970, the year China launched its first satellite. He moved to the United States in 1989, he said, ultimately settling in West Covina, a suburb of Los Angeles, and became a U.S. citizen.

By the early 2000s, Su was a moderately successful media entrepreneur. But after his 2009 deal to create G&E, in which the Chinese state-owned subsidiary has a majority stake, his fortunes rose.

Today, the 44-year-old owns or co-owns real estate and radio stations worth more than $15 million, according to a Reuters analysis of U.S. corporate, property, tax and FCC records. His projects include English and Chinese-language stations, a magazine, a newspaper, four apartment buildings, condos at the Trump International Hotel in Las Vegas, a film festival and a charity that last year donated $230,000 to an orphanage in China.

Two of his primary companies are G&E Studio and EDI Media Inc. G&E dedicated a page on its website to showcase CRI as a “close” partner, but it recently deleted the page after Reuters made inquiries. EDI’s site says it has become “China’s outward media and advertising proxy” in the United States.

In 2013, the Chinese government presented Su with a special contribution award at a media event for Chinese broadcasters.

Other ties are not as visible: The key disclosure that G&E is 60 percent owned by Guoguang Century – the Beijing firm that’s 100 percent owned by CRI – is contained in a footnote in a lengthy FCC filing made on behalf of another Su company, Golden City Broadcast, LLC.

Su declined to discuss his business career in detail. An early highlight, though, was a speech he gave in 2003, when he was in his early thirties.

Covered by China’s state-run media, the speech laid out Su’s vision for a business that could be profitable and also help China project its message in the United States. The business would need to be structured to comply with U.S. ownership laws and would “endorse China’s ideology,” Su was quoted as saying.

In the same speech, he spoke of his fellow expats’ affinity for China. “The sense of belonging to China among countrymen residing abroad and their endorsement of China’s current policies grow with each day,” Su said, according to Xinhua.

In 2008, Su gave an address in which he criticized U.S. media for focusing their China coverage on issues such as human rights.

The media were misleading “the American masses’ objective understanding of China, even engendering hostile emotions,” Su said, according to a China National Radio report.

It was in 2009 that Su’s vision really began to take shape. That year, records show, Su created G&E Studio.

 

“UNFILTERED REAL NEWS”

G&E now broadcasts in English and Chinese on at least 15 U.S. stations, including Salt Lake City, Atlanta, Philadelphia, Houston, Honolulu and Portland, Oregon.

The content is largely the same on each station, produced either by CRI from Beijing or by G&E from California.

A typical hour on most stations begins with a short newscast that can toggle between China news and stories about violent crimes in the United States. Besides the overtly political coverage, topics range from global currency fluctuations and Chinese trade missions to celebrity wardrobe analysis and modern parenting challenges.

While Su owns a minority share of G&E, he has structured his radio station holdings in various ways. According to the most recent FCC records, he is the majority owner of at least six stations, such as the one in Atlanta, which he purchased for $2.1 million in 2013.

In other cases he leases airtime. In Washington, for instance, he leases virtually all the time on WCRW for more than $720,000 a year through G&E. A Philadelphia station is leased under a similar arrangement for at least $600,000 a year.

A spokeswoman for Su said Reuters’ description of the extent of his network is “generally correct.”

Su declined to describe how he makes money when most of the U.S. stations air virtually no commercials. He also declined to say how he got the money to finance his radio leases and acquisitions.

His stations, Su said, offer the American public an alternative viewpoint on Chinese culture and politics. He has “no way to control” what CRI broadcasts on the stations, he said, nor is he part of any plan to spread Chinese propaganda.

“We are only telling the unfiltered real news to our audience,” he said.

On Oct. 29, WCRW carried a program called “The Hourly News.” Among the top stories: Senior Chinese and U.S. naval commanders planned to speak by video after a U.S. Navy ship passed close by China’s new artificial islands in the South China Sea.

Washington and its allies see the island-building program as a ploy to grab control of strategic sea lanes, and the Navy sail-by was meant to counter China’s territorial claims.

WCRW omitted that side of the story.

The admirals are holding the talks, the announcer said, “amid the tension the U.S. created this week.”

 

(Edited by Bill Tarrant and Peter Hirschberg. Reported by Koh Gui Qing in Beijing and John Shiffman in Washington and Los Angeles. Additional reporting by Benjamin Kang Lim and Joseph Campbell in Beijing, Ritsuko Ando in Tokyo, Gopal Sharma and Ross Adkin in Kathmandu, Mirwais Harooni in Kabul, Joyce Lee in Seoul, Eveline Danubrata and Arzia Tivany Wargadiredja in Jakarta, Mohammed Shihar in Colombo, Khettiya Jittapong and Pairat Temphairojana in Bangkok, Terrence Edwards in Ulan Bator, Theodora D’cruz in Singapore, Diane Chan in Hong Kong, Jane Wardell and Ian Chua in Sydney, Balazs Koranyi and Harro Ten Wolde in Frankfurt, Jussi Rosendahl in Helsinki, Sara Ledwith in London, Julia Fioretti in Brussels, Can Sezer in Istanbul, Andrius Sytas in Vilnius, Kole Casule in Skopje, Renee Maltezou in Athens, Margarita Antidze in Tbilisi, Radu-Sorin Marinas in Bucharest, Geert De Clercq in Paris, Marton Dunai in Budapest, Ed Cropley in Johannesburg, Selam Gebrekidan in New York, Anna Driver in Houston, Renee Dudley in Boston, Brian Grow in Atlanta, David Storey in Washington and Euan Rocha in Toronto.)

Japan, China, and South Korean Leaders to Revive Dialogue at First Summit in Three Years

Japanese Prime Minister Shinzo Abe, Chinese Premier Li Keqiang, and South Korean President Park Geun Hye will meet in Seoul on Sunday for the first summit between the three countries in since 2012.

While past historical issues will most likely be brought up, the leaders hope to move forward in order to boost stability in Northeast Asia and better relations with Tokyo, according to South Korean and Chinese officials. The Washington Post also reports that all three countries are concerned over North Korea and its nuclear capabilities and may discuss the matter at the meeting. However, Sunday’s meeting is said to be a first step toward burying the past.

“None of them wants to be seen stonewalling the cooperation,” said Shin Kawashima, a University of Tokyo professor of international studies. They all have soft spots “so they want to find a comfortable middle ground,” he told Fox News.

And it is a tricky situation for the three Asian powers as Tokyo does not want to discuss history, Beijing, for political reasons, can’t be too friendly with Japan, and Seoul doesn’t want the U.S. to think they are getting too close to China.

Reuters reports that the bad blood between the nations are due to past wartimes when China and South Korea suffered under Japan’s colonial rule and brutal occupation before Japan was defeated in 1945.