South China Sea
Major General Luo Yuan, executive director of the China Military Science Society, believes that unexpected events are likely to outbreak in the South China Sea in 2012. According to him, the US has made up its mind to move its military focus to the Asia-Pacific region to contain China, which reflects the residue of the Cold War thinking. Luo considers the US's move as a potential strategic mistake, because the US picked a wrong rival at a wrong time in the wrong place. By wrong time, he means that peace and development are the themes of this era. By wrong place, he means that while there still is threat to US's metropolitan territory and situation in the Middle East is still unstable, it is not a wise choice to move to the Asia-Pacific. By wrong rival, he means that China is an undefeatable and indomitable opponent. In addition, Luo suggests that China should keep a close eye on Japan, since Japan has gradually got rid of its post-war shackles.
In response to U.S. Pacific Command Commander Robert Willard's remarks that China is the only country claiming sovereignty over the entire South China Sea, Chinese Foreign Ministry spokesman Hong Lei said at a regular press conference on the 29th that China does not claim sovereignty over the entire South China Sea. Instead, Hong stated that the core of the South China sea disputes is about the Nansha Islands and the demarcation of part of the South China Sea waters. According to Hong, China has indisputable sovereignty over the Nansha Islands. Therefore, it is illegal for the Philippines to exploit oil and gas resources around the Nansha Islands with foreign investors.
Diaoyu Islands
In response to Japan's naming of the Diaoyu Islands, China has released standard names and descriptions of the Diaoyu Island and its affiliated isles, according to sources with the State Oceanic Administration. The Diaoyu Island is named as "Diaoyu Island", with its Chinese pronunciation reading "Diao yu Dao". It is described as an island "about 356 kilometers from the city of Wenzhou, 385 kilometers from the city of Fuzhou and 190 kilometers from the city of Keelung." The country has also released names of Diaoyu's 70 affiliated islands, the names in pinyin and description of locations. In the meantime, China demands that Japan immediately cease unilateral survey in disputed waters. Major General Luo Yuan suggests that Coast Guard should be established to cope with the grim situation in the East China Sea and the South China Sea.
Chinese Military Expenditures
Li Zhaoxing, the spokesman for the National People's Congress, announced on Sunday the overall figure for China's 2012 military spending. China's 2012 defense budget is 670.274 billion yuan, with a 11.2 percent increase compared to the number of budget execution of the previous year. Li stresses that China adheres to a defensive national defense policy, and that Chinese military spending is transparent. China's limited military capabilities is geared at safeguarding national sovereignty and security and territorial integrity. China will not pose a threat to other countries. Responding to the China Threat Theory, some Chinese military officials point out that the increase in Chinese defense budget is consistent with China's overall development, and that Chinese military expenditure is much lower than that of some western countries. Specifically, Major General Luo Yuan states that China might build more aircraft carriers in the future if needed.
Sources:
"罗援：2012年南海很可能爆发一些突发事件" (Unexpected events could outbreak in the South China Sea in 2012)
"外交部：中国并未对整个南海提出主权声索" (Chinese Foreign Ministry: China does not claim sovereignty over the entire South China Sea)
"外交部：菲律宾拉外资开发南沙油气是非法的" (Chinese Foreign Ministry: It is illegal for the Philippines to exploit oil and gas resources around the Nansha Islands with foreign investors)
"中方要求日方立即停止在争议海域单方面调查" (China demands that Japan immediately cease unilateral survey in disputed waters)
"抽日本人耳光 我公布钓鱼岛附属岛屿标准名" (Slapping Japan, China released standard names of the Diaoyu Islands)
"少将：须设海岸警备队应对东海南海严峻形势" (Coast Guard should be established to cope with the grim situation in the East China Sea and the South China Sea)
"2012年中国国防费预算6702.74亿 增长11.2%" (China's 2012 defense budget is 670.274 billion yuan)
"李肇星接受英记者采访：涨军费为维护世界和平" (Li Zhaoxing: increased military spending is to safeguard world peace)
"少将谈我未来航母：若有需要多建几艘有可能" (Major General talks about aircraft carrier, might build more if necessary)
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