RED STAR RISING restrictions, the first major update to poli- cies on Internet news since 2000, are by CDR Jim Fanell intended to limit the news and other infor- mation available to Internet users by For those reg- another area of economic change, the sharply restricting the scope of content per- ular readers of Plenum stated the next Five-Year plan will mitted on web sites. The Party views the NIPmail it will not change its heavy reliance on foreign unrestricted access to the web as a trend come as a surprise investment to secure its national economy. toward liberalization. Search engines like to learn NIP lead- PRC government statistics show foreign Sina.com and Sohu.com, reportedly used ership has decided to establish a new col- trade accounts for over 70 percent of the by millions of Chinese each day, must stop umn covering the People’s Republic of Chinese economy. Finally, Party leadership posting their own commentary articles and China (PRC) in the pages of the NIP announced they will place more emphasis instead make available only opinion pieces Quarterly. For some time now, there has on science and technology, education and generated by government-controlled news- been a growing flurry of e-mail in the NIP health care in policy and investment. This papers and news agencies, the new regula- regarding a variety of topics surrounding Central Committee Five-year Plan will be tions stipulate. The new regulation also the emergence of China as a world power. up for final approval at the Fourth Session requires private individuals or groups to It is the purpose of this column to help of the 10th National People’s Congress to register with the state Propaganda bring the latest pieces of open source infor- be held next March. Department as “news organizations” mation about changes in the PRC’s mili- In related activity, the PRC issued its tary, economy, diplomatic and cultural before they can operate e-mail distribution first ever White Paper on Democracy. arena to the readers of NIP. Unlike lists (ouch, I’d be in serious trouble) that Chinese government officials vowed to Vultures Row this column will not offer spread news or commentary, which internet actively push forward the reforms of its much humor; instead, “Red Star Rising” experts say is one of the most significant political system, although acknowledging will attempt to bring NIP readership into an changes. Now, an estimated 100 million tremendous achievements to date. The atmosphere of the crusty, old, FDNF Sailor Chinese have access to the Internet. White Paper, consisting of 12 parts, states who is just woke up for that first cup of For the second time in two years China has always adhered to the basic java and a copy of the “South China China has launched and recovered a principle of the Marxist theory of democ- Morning Post” where thoughts always manned space vehicle, the Shenzhou VI. racy, combined with the reality of China, focused on what was happening with the On 17 October, two Chinese Taikonauts and borrowing from “the useful achieve- Dragon. So, sit back, prop your feet up on made a successful return to earth after ments of the political civilization of the desk, grab that cup of joe and enjoy the nearly five days in space orbit. This event trip through the Middle Kingdom. mankind, to include Western democracy. ignited a burst of nationalist sentiment Assimilating democratic elements of Chi- In mid October the 16th Central Com- across China and is being used by Party na’s traditional culture and institutional mittee of the Communist Party of China leaders as one of the symbols of the coun- civilization” has been referred to as (CPC) concluded its fifth plenary session. try’s economic and scientific power after “Socialism with Chinese Characteris- The highlight of this plenum was the Cen- 20 plus years of reforms. Technicians tics”. Just what are these characteristics? tral Committee’s approval for the 11th broke into applause as Fei Junlong, 40, The following three were described in this Five-Year Plan (2006-2010), the roadmap and Nie Haisheng, 41, were shown, on White Paper: (1) China’s democracy is a for the country’s development in the next official television, climbing from the people’s democracy under the leadership five years. Premier Wen Jiabao made an Shenzhou VI’s round reentry module, of the CPC; (2) China’s democracy is a explanation on the proposal, which contains which strangely resembles a 1960’s era many “revolutionary changes”, according democracy in which the overwhelming Jacque Cousteau diving bell. This flight to analysts in Beijing. The new plan is majority of the people act as masters of marked an important step forward in the divided into ten parts with an emphasis on state affairs; and (3) China’s democracy PRC’s long-term ambitions for space moving “From “Getting Rich First” to is a democracy guaranteed by the peo- exploration. China, only the third nation “Common Prosperity” to bridge the grow- ple’s democratic dictatorship. The to conduct a manned spaceflight, has ing gap between the rich and the poor, and Paper does admit that “despite the tremen- already announced plans to send up to avoid polarization of the society. Admit- dous achievements scored in building a another pair of taikonauts in 2007 and ting its blind pursuit of “economic growth” socialist political democracy, the CPC and have them walk in space. Further goals led to “blind investment, damage to the the Chinese people are clearly aware of the include setting up an orbiting space lab- environment and false statistics” indicates many problems yet to be overcome”. oratory and putting a man on the moon China’s leaders are going to pursue “a fair, Reporting from September indicates by 2017. The Chinese did announce they balanced and sustainable economic growth China has tightened its restrictions for had spent $110 million on the Shenzhou pattern” in the next Five-Year cycle. In news media on the Internet. China’s new VI mission, demonstrating the PRC’s

20 commit- press said the exercise was conducted for People’s Liberation Army Air Force ment to pro- “the fight against terrorism, separatism (PLAAF) and will support the formation moting and extremism”; however, many military of a new air assault army. Even with national experts, including this author, believe the these 30 additional Il-76s, PLAAF airlift pride. drills looked more like a dress rehearsal resources are insufficient to support an air- A cou- for an invasion of Taiwan. The exercise borne army of three or four divisions, so ple of inter- began in the Russian Far East city of follow-on orders are likely. China has also esting side Vladivostok, where Phase One was con- modified at least one of its existing Il-76s notes surrounding this event: The word ducted by senior commanders conduct- to serve as an airborne early warning Shenzhou - is variously translated as ing strategic planning and scenario deci- and control platform. Acquisition of the “Divine Craft” or “Divine Mechanism”, sion making. Phase Two moved Il-78s is a major departure for the PLAAF, but is also a pun on a literary name for towards the Shandong Peninsula and was which currently relies on about 10 aging B- China with the same pronunciation (literal- focused on delivery and disbursement 6s, and represents a significant expansion ly “Divine Land” which means “China”). of troops, adjustment of the war plan, of China’s power projection capabilities It appears the Chinese had particular inter- and organizing for combined operations. as its existing tanker capacity is unable to est in their lofty taikonauts “habits in the Phase Three, the actual simulated com- accommodate advanced fighters. The Il- head”. Xinhua, the official Party Paper, bat phase, involved three evolutions: 78s will be able to support China’s Su- ran an article regarding the effects of flatu- offshore blockade, amphibious assault 30MKK and other probe-equipped combat lence in space. Reportedly “astronauts can and forcible separation. Although the aircraft, such as the F-8D. This acquisition be blown away by his or her intestinal gas, press reporting was vague, China used has also increased speculation that China is which can also pollute the air inside space ten PLAN ships and submarines going to expand its strategic bomber force capsules”. Frankly, this is the kind of open (SOVREMENNEY DDG, LUYANG I with purchases of Russian Tu- and transparent reporting that will help DDG, LUHU DD, and SONG SSK) and 22M3/BACKFIRE or Tu-95/BEARs. clear the air between our two nations. more than 20 PLANAF aircraft (Su-27, In other related military news, rela- In regional relations, China took the Z-9, IL-76 and B-6) took part in develop- tions between the U.S. and China got hot lead during the fourth meeting of Shanghai ing a naval blockade, while Russia con- this summer when on 14 July, China’s Cooperation Organization (SCO) Prime tributed the UDALOY S DDG Marshall National Defense University Major Ministers meeting, which focused on anti- Shaposhnikov and the SOVREMENNEY General Zhu Chenghu stated to an inter- terrorism and deepening cooperation DDG BURNY, plus KA-27 helicopters, national press audience that “China is pre- among members in politics, economy and Su-24, Su-27, A-50, and Tu-22M and pared to use nuclear weapons against culture. This six-member Central Asian Tu-95 long-range bombers. The culmi- the US if it is attacked by Washington group (China, Russia, Kazakhstan, nation of the exercise was a massive during a confrontation over Taiwan…If Kyrgyzstan, Uzbekistan, and Tajikistan), amphibious assault, where Chinese and the Americans draw their missiles and which was started in 2001, met in Moscow Russian troops conducted opposed land- position-guided ammunition on to the tar- in mid-October and took a step closer to ings on the beaches of China’s Shandong get zone on China’s territory, I think we forming a Eurasian military confederacy to Peninsula. Following the conclusion of will have to respond with nuclear rival NATO. The SCO’s originally stated the exercise, Chinese Defense Minister weapons.” The good general added that goal of cooperation in former Soviet Cao Gangchuan with Russian Defense China’s definition of its territory Central Asia, has evolved rapidly toward a Minister Sergei Ivanov said, “The first includes warships and aircraft. Officially regional security bloc and could soon joint military exercises have helped pro- China’s doctrine has called for no first use include new members such as India, mote mutual trust in the international of nuclear weapons since its first atomic Pakistan, and Iran. This meeting fol- military and security field, and constitut- test in 1964. General Zhu is not the first lowed on the heels of the Sino-Russian mil- ed a good practice of the new concept of Chinese official to refer to the possibility of itary exercise “Peace Mission 2005”, security advocated by China.” using such weapons first in a conflict over which exemplified the emergent strategic In September, as a direct spin-off from Taiwan. In 1999, General Xiong importance of the SCO where China and “Peace Mission 2005”, Russian Defense Guangkai, now one of seven Deputy Russia act as de facto leaders. Minister announced Russia would deliver Chiefs of Staff for the PLA’s General Staff Speaking of the SCO, the first Sino- long-range transport jets and tanker refuel- Headquarters, indicated China could Russian joint military exercise, named ing planes to China. Press reports the deal respond in kind to a nuclear strike by “Peace Mission 2005,” was conducted will involve 30 Il-76 transport planes and the U.S. in the event of a conflict with from 18-28 August 2005 and involved eight Il-78 air-to-air refuelling tankers, Taiwan. General Xiong is reported to over 10,000 military personnel from the worth $1.5 billion. The Il-76s will join have said, “In the end you care more about services of each country. Chinese state about 20 similar aircraft already in Los Angeles than you do about Taipei”.

21 Official Chinese response insisted General paint scheme on the VARYAG, possibly hegemony in the past, and it will never seek Zhu’s statement were his personal views indicating PLAN subordination. hegemony in the future”. Further, he and did not represent the policy of the One area of brewing controversy is emphasized that by “solemnly commemo- Chinese government. over the disputed claims to gas fields in rating that victory, we will keep history in In addition to “Peace Mission 2005”, the East China Sea by China and Japan. mind, never forget the past, cherish peace there were many other notable events During the month of August, the PRC and create a better future.” related to the People’s Liberation Army deployed five warships to the disputed Speaking of Chinese energy require- Navy (PLAN) activity. In September, a gas fields in the East China Sea. The ments, U.S. Energy Department figures state Chinese Foreign Ministry spokesman PLAN SAG, including a guided-missile China imports roughly half of its oil. confirmed the formation of an East destroyer, where spotted by a Japanese Consumption rose by 15% last year and is China Sea Reserve Fleet in Ningbo “to Maritime Self Defense Force (JMSDF) forecast to jump by an additional 9% this handle peacetime emergencies or fight P-3 near the Tianwaitian gas field. year. By 2025, DOE estimates China will wars.” The new reserve fleet will have JMSDF assets reported PRC aircraft, burn through 14.2 million barrels a day, “important meaning for raising our most likely a Y-8/AEW or a Y- double this year’s level. In early August, navy’s comprehensive ability to fight 8X/MARPAT where conducting recce the Chinese National Offshore Oil wars,” and protect its territorial sover- flights from an area south of Kyushu Company (CNOOC) abandoned its eight- south to the disputed area. Tensions eignty, PLA Daily reported. The PLAN month quest and $18.5 billion bid for escalated when a Chinese missile frigate also commissioned the first in a new Unocal, ending the most ambitious overseas pointed a gun at a JMSDF P-3C near the class of domestically designed and built takeover attempt by a China. Interestingly, disputed area. The Japanese Defense warships. The missile frigate China heavily restricted domestic news Agency reported the incident was likely Wenzhou, named after a port city in coverage of the failed bid. Editors at meant to intimidate because the P-3C’s eastern China, entered service in Chinese newspapers, web sites and televi- threat indicator did not show the vessel’s September. According to Chinese press, sion stations said they were obeying a cen- this class is designed to operate far out at targeting tracking radar had locked onto tral-government directive to publish only sea, and represents the PLAN’s develop- the plane. Then in September, Japan official Xinhua news agency accounts of the ment and implementation of a “blue accused China of beginning gas produc- bid. Then on Octover 26th the China water” navy intended to assert Chinese tion in the disputed Tianwaitian field, as National Petroleum Corp. (CNPC), the claims to Taiwan and other territories, a flare was spotted at the Chinese drilling nation’s largest oil company, won a and protect sea lanes transporting vital facility in waters close to the median line Canadian court approval for a $4.18 billion natural resources. There was also inter- between both countries. The Tianwaitian takeover of PetroKazakhstan Inc., sealing esting news of a PLAN replenishment field is located just a few kilometers China’s biggest energy takeover. In the case ship supplying fuel using new methods from Japan’s claimed median line that of PetroKazakhstan Inc., CNPC was able to and techniques to a PLAN SAG operat- separates the two countries’ 200-nauti- fend off rival bids by the biggest oil compa- ing in the East China Sea in late cal-mile exclusive economic zones nies in Russia and India. In related news in September. On order of the PLA (EEZ) in the East China Sea. China mid-November, technicians of the China General Logistics Department the new does not recognize the median line and Petrochemical Corporation (more common- “comprehensive” replenishment ship insists its EEZ stretches further to the ly known as Sinopec) finished the last weld concurrently supplied fuel oil to a missile East, to the edge of the continental shelf. in the oil pipeline linking China and destroyer, military diesel oil to two Japan is concerned the Chinese are going Kazakhstan following 18 months of effort. frigates horizontally from each side, and to siphon off resources that could be The 1,000 km pipeline, the first transnation- aviation fuel to Z-9 helicopters. Finally, buried under the seabed on the Japanese al oil project between China and under the “China Aircraft Carrier side. The two countries held rounds of Kazakhstan, will reportedly push 20 million Watch” there were two noteworthy talks throughout the year, but have failed tons of oil yearly to China. events. First, Russian aircraft manufac- to achieve a compromise. turer Sukhoi announced in October that it To close the China-Japan relations So what of China’s overall econom- will establish its first office outside of chapter of this issue, on September 3rd, the ic health? In September, the French- Russia in Beijing and will introduce the PRC commemorated the 60th anniver- based Organization for Economic Su-33, carrier-based fighter, at the inter- sary of Japan’s defeat in World War II. Cooperation and Development (OECD) national air show in Zhuhai in 2006. President Hu Jintao used the occasion to reported that China is on track to Secondly, there was much speculation emphasize China’s economic and military become the world’s biggest exporter over the paint scheme of the Ex-Russian power is not directed against Japan. Hu and fourth largest economy by 2010. carrier VARYAG. Website reports car- stated in a ceremony at the Great Hall of the China’s economic transformation ried pictures showing an entirely new People, in Beijing, that “China did not seek appears to be on track to maintain its

22 average 9.5 per cent growth rate of the November, the Yuan had risen to a record this “new” strategy follows Mr. Hu Jin- last two decades for “some time.” high of 8.0831 Yuan to the U.S. dollar. tao’s April invitation to the leader of the Estimates say the private sector now gen- In related news from August, China Koumintang (KMT), now Taiwan’s main erates between 57-65 per cent of non- announced it would suspend production at opposition party, to visit the mainland for farm GDP, an increase from earlier 7,000 coal mines - or about one-third of the the first time since 1949. And in another assessments. Since 1995, the number of nationwide total - in a safety crackdown on first, the CPC marked the anniversary of state controlled companies has halved, the accident-plagued industry. Chinese Taiwan’s return to “Chinese rule” by from 300,000 to 150,000, and since mines, most of them small and poorly attending a ceremony at the Great Hall of 1998, the sector has shed 16 million equipped, are required to improve safety the People on the 25 October anniversary workers. By contrast, local private com- measures and reportedly won’t be allowed date. The PRC had never celebrated this panies have increased output by five to reopen if they fail to meet national stan- anniversary because it was viewed as com- times and foreign enterprises three fold dards. The announcement comes amid plicating the Communist claim that it was between 1998 and 2003, compared with almost daily reports of miners missing or the Red Army, not the Nationalists, who an increase of just 70 per cent in the state being killed in mining accidents across had won the eight-year war against Japan. sector over the same period. In October, China. This announcement came two days During this ceremony in Beijing, China’s China’s industrial production grew by after 123 miners missing in a flooded coal Taiwan Affairs Office (TAO) told a press 16.3 percent in the first nine months this mine in southern China were declared dead conference the ceremony was intended to year to $622.8 billion. These trends will in this highly publicized disaster. Mine offi- “promote the peaceful reunification of need to continue for some time more, as cials were blamed and two local mayors the motherland and realize the revival and “an estimated 150 million Chinese are have been dismissed. As of August 2005, earnest struggle of the Chinese people”. living in acute poverty despite this 1,324 mines have closed, and the rest must Taiwan’s Mainland Affairs Council impressive economic growth over the suspend production by the end of the year. (MAC), reacted with disdain, saying past two decades”, according to World “China Daily” stated China’s energy sup- Japan’s return of Taiwan had “nothing at all Bank President, Paul Wolfowitz state- plies should not be affected, because the to do” with China and “shows that the Chi- ment during his October visit to China. mines account for only a small fraction of nese Communists have a gradual plan to Of particular interest to the economists coal output. work their way into Taiwan, and citizens in our group is China’s July 21st long- Some of you right about now are ask- should be alert to this”. awaited currency-policy change to helping ing, “Why is “Red Star Rising” is going to And what of Taiwan President Chen ease tensions with trading partners. The ignore the testy relationship between the Shui Bien and former Lee Tung-hui you People’s Bank of China revalued the mainland and Taiwan?” Be not afraid, I ask? In November President Chen stated Yuan to make Chinese currency effective- like to save the best for last. Following up th that he and his followers were going to ly 2.1% stronger against the American on the PRC’s 60 Anniversary celebration push for and achieve “the birth of a new dollar than it had been for years ($1 = 8.28 of the defeat of Japan in WW II, President constitution” for Taiwan by 2008. Chen renminbi). The PRC’s peg of the Yuan Hu Jintao and other senior officials, in a stated the new constitution should make has been criticized in the West as being gesture directed at Taiwan, used the occa- it clear, “Taiwan is Taiwan, and not a significantly undervalued, making Chinese sion to modify a major element of Chinese part of China,” and that “Taiwan is an goods cheaper abroad and thus giving the Communist dogma concerning Beijing’s independent, sovereign state.” He fur- Chinese an unfair trading advantage. contention that the Communists fought ther articulated that caring about Taiwan China announced it would no longer peg valiantly against the Japanese, while the rul- means caring for the island’s sovereign- the Yuan’s value only to the dollar and ing Nationalists, under Chiang Kai-shek, ty, security, democracy and would allow it to trade within a narrow attacked the rebel Communist army instead economy…as well as dealing with the band against a basket of currencies. of fighting the Japanese. In an increasingly issue of the Kuomintang’s “ill-gotten” Beijing has repeatedly stated they are savvy political strategy, Hu Jintao publicly assets. In October, former Taiwan determined to maintain a cautious currency recognized the contributions of National- President Lee Teng-hui warned U.S. con- policy because China’s currency is traded ist military leaders in fighting the Japan- almost exclusively within China, making ese. Officially the fairly strict controls necessary. As origi- Party still takes nally announced, the revaluation, would credit for the over- not be allowed to rise or fall more than all victory. three-tenths of a percent in a day against Designed to iso- the dollar. But since that time, China has late independ- ence-leaning only allowed the Yuan to float by a larger forces in Taiwan, amount. And as of the middle of

23 gressional leaders that a Chinese mili- Anderson’s nearly naked image is for public display in China. tary attack on Taiwan could take place returning to China on phone cards telling Well, all jesting aside, that’s a wrap within “a couple of years”. people not to buy fur. Yes, the for this first installment of the “Red Star Canadian-born actress appears topless Before closing it is worth noting two Rising”. I haven’t covered even half the olive branches in our relationship. First, with her back to the camera and an arm issues related to China’s emergence as the Chinese mainland prepared a short partly hiding her right breast behind the world player. Issues like Avian Flu, IPR list of 11 giant pandas — six males and slogan, ``Give fur the cold shoulder’. five females — for “trial marriages” in Behind her, an image of falling snow piracy, Australian Uranium, the Gini- order to determine the most adorable appears above Chinese characters read- Coefficient Alert, Age and Gender couple to offer Taiwan. The lucky cou- ing ``Cold shoulders are nothing com- Demographics, 74,000 cases of internal ple is part of a goodwill gestures to the pared to the pain they feel’’ and ``Please protests, Chinese spy rings, or the post island following the “historic” visit by don’t wear fur.’’ In the spirit of true visit assessment from trips to China by Lien Chan, the former chairman of the environmental camaraderie, the state- CDR PACOM, the SECDEF and the KMT. Finally, in what can only be owned China Telecom and People for President are all worthy and interesting described as a major breakthrough in the Ethical Treatment of Animals topics. If during the course of the next Sino-US relations, it was announced that (PETA) have printed 70,000 of the a more demure Pamela Anderson adver- phone cards with a toned-down version quarterly cycle, you find something tisement has been approved for publica- of Anderson’s bus and train stop ads that worth adding to these pages, please, drop tion in China. A year after raising cen- were altered three times to reduce the me a note. I don’t have all the answers, sors’ hackles with bus stop ads, Pamela amount of skin before being approved just trying to man the China Watch.

CAPT George A. O’Connell, Jr. Large & Small Unit Awards Announced To date, 91 percent of the unit’s person- nel have mobilized in support of the Naval Oceanography Intelligence products for war-fighting operations. Global War on Terrorism. Unit 0182 and Naval Special Warfare Unit members provided products to Intelligence Unit Two are the winners of all major commands, including the “This honor is really a tribute to our the CAPT George A. O’Connell, Jr. efforts of U.S. forces in Iraq and Sailors,” said NSW Intel-2’s outgoing Award as the best large and small units, Afghanistan. commanding officer, CDR Tim Dorsey.” respectively, with Navy Reserve CDR Sam Sumwalt, NAVOINTEL They excelled during a period of Intelligence Command. 0182’s commanding officer, said the extremely high operational tempo, play- NAVOINTEL 0182, a unit in unit’s assistance was time-relevant, cru- ing a significant role in the Global War Reserve Intelligence Area Three (New cial, and directly impacted the Naval on Terrorism.” Orleans), drills at its supported com- Oceanographic Office’s ability to pro- In order to support special warfare mand, the Naval Oceanographic Office vide vital imagery analysis and intelli- forces in the field, NSW Intel-2 unit at the Stennis Space Center in gence information to the warfighter with- Mississippi. The unit is comprised of in the tactical decision cycle. members must undergo specialized train- officers and Sailors from both the intelli- The unit transformed itself into a ing, including completion of the six- gence and meteorology-oceanographic major independent production depart- week Naval Special Warfare Intelligence communities. ment within the supported command by Course. They also must qualify as first- The unit and its 51 reserve members assuming significant responsibility for all class swimmers, undergo extensive transformed and improved the method phases of production activity. firearms training and receive high-threat and turnaround time for the production NSW Intel-2, a unit in Reserve driver training. of life-saving battlespace characteriza- Intelligence Area 15 (Norfolk), was rec- Despite NSW Intel-2’s high training tion products for the Naval ognized for its high level of support to and operational tempo, unit members Oceanographic Office’s worldwide cus- three commands: NSW Group TWO, have advanced in impressive numbers. tomer base. NSW Group FOUR and NSW Fostered by mentorship and the steadfast NAVOINTEL 0182 contributed to Development Group. The unit provided the safety and planning efforts of U.S. the Navy Special Warfare community use of Career Development Boards, 40 and coalition forces across the globe more than 3,700 man-days of support in percent of the unit’s first class petty offi- through the quality and timely produc- the last 12 months alone, with unit mem- cers have been selected for direct com- tion of intelligence and environmental bers averaging 170 man-days of support. mission or Chief Petty Officer.

24