1. WP: China demands U.S. explanation about reports of NSA hacking into Huawei
China demanded a U.S.
explanation Monday about reports that the National Security Agency infiltrated Chinese telecommunications giant Huawei Technologies
to see if it was spying for Beijing and to turn its equipment against other countries, such as Iran. “China has lodged complaints
to the United States about this many times. We urge the U.S.
side to make a clear explanation and stop this kind of acts,” said
China Foreign Ministry spokesman Hong Lei. He said that China was “gravely concerned” about reports of “eavesdropping, surveillance and stealing of secrets by the United States.” The NSA operation to hack into Huawei was disclosed by the New York Times this weekend based on leaked documents obtained from former NSA contractor Edward Snowden. According to one classified 2010 document published Saturday, the NSA believed that “many of our targets communicate over Huawei-produced products, we want to make sure that we know how to exploit these products — we also want to ensure that we retain access to these communication lines, etc.”
WP
2. LAT: Obama defends NSA spying in meeting with Chinese president
President Obama on Monday defended U.S.
surveillance programs as serving national security rather than commercial interests, in a wide-ranging meeting with his Chinese counterpart on the sidelines of a nuclear summit. In the private session with Chinese President Xi Jinping, Obama defended the National Security Agency’s espionage tactics days after news broke that the U.S.
spy agency had tapped into Chinese telecommunication giant Huawei’s computer system. The revelation, stemming from documents leaked by NSA contractor Edward Snowden, appeared to undermine Obama’s regular complaint that Chinese companies conduct corporate espionage and intellectual property theft. Deputy National Security Advisor Ben Rhodes said Xi raised the matter, which was reported by the New York Times and Der Spiegel on Saturday. The president countered that “the United States does not engage in espionage to gain a commercial advantage,” Rhodes said, adding that Obama said the U.S.
believes there’s “a clear distinction between intelligence activities that have a national security purpose and intelligence activities that have a commercial purpose.” The meeting between Obama and Xi opened on a warm note as the leaders made public statements before their session at the U.S.
ambassador’s residence in The Hague.
Associated Press photo
LAT
3. NYT: After reports on N.S.A., China urges halt to cyberspying
The Chinese government called on the United States on Monday to explain its actions and halt the practice of
cyberespionage, after news reports said that the National Security Agency had hacked its way into the computer systems of China’s largest telecommunications company. The reports, based on documents provided by the former security contractor Edward J. Snowden, related how the spy agency penetrated servers owned by the company, Huawei, and monitored communications by its senior executives in an effort to discover whether the executives had links to the Chinese military. The operation also sought to exploit the company’s technology and gain access to the communications of customers who use Huawei
cellphones, fiber optic cables and network hubs. American officials have been working to block Huawei from entering the American telecommunications market because of concerns that its equipment could provide Chinese hackers with a “back door” for stealing American corporate and government secrets.
NYT
4. Reuters: Xi tells U.S. to be 'fair' on China's maritime disputes
Chinese President Xi Jinping told U.S. President Barack Obama on Monday that the United States should adopt a "fair" attitude on the East and South China Seas, where China is involved in a series of increasingly bitter territorial disputes. "On the issues of the East and South China Sea, the U.S.
side ought to adopt an objective and fair attitude, distinguish right from wrong, and do more to push for an appropriate resolution and improve the situation," state news agency Xinhua cited Xi as saying. It provided no other details. The two were meeting on the sidelines of a nuclear security summit in the Netherlands, where
their talks also took in the situation in Ukraine, North Korea and military-to-military cooperation. China is in an often angry dispute with some of its neighbors, especially Vietnam and the Philippines, over claims to parts of the
potentially oil and gas-rich South China Sea. China lays claim to almost the whole of the sea, which is
criss-crossed by crucial shipping lanes. China has a separate dispute with Japan in the East China Sea over a group of uninhabited islets.
Reuters
5. White House: Remarks by President Obama and President Xi Jinping before bilateral meeting
White House
6. FT - Hank Paulson Oped: China’s leaders must put reform pledges to the test
Since President Xi Jinping took power 18 months ago, Beijing has adopted sweeping commitments to economic reform. These pledges include giving the market the “decisive” role in allocating resources, eliminating regulatory barriers that have stifled the private sector and enhancing China’s social safety net. These commitments are welcome. Yet market participants and business leaders reserve judgment, waiting for them to be implemented. The reforms, however, cannot be judged by unrealistic expectations or free-market fundamentals. Mr Xi has no plans to remake China’s economy in the image of a Group of Seven
country. Nor is it realistic to think Beijing will simply
privatise its 113 central state-owned enterprises. The real test of “reform” is not whether it will advance but how. Will Mr Xi’s reforms embrace meaningful competition? Competition is the lifeblood of a market-driven economy. Exposing China’s economy to the discipline of competition will have positive and enduring effects. The market can play the “decisive” role Beijing intends only if the leadership abandons anti-competitive policies. Ultimately, Beijing needs to open its market to foreign competition. In many sectors, such as financial services, foreign companies are global leaders. Many in China
favour domestic reforms yet wish to exclude foreign competition. But the country would benefit from the practices introduced by foreign companies. In principle, Beijing has made a commitment to take this step by agreeing in bilateral investment treaty talks with the US and Europe to adopt a “negative list” that presumes sectors are open to foreign competition unless specifically excluded. That suggests Beijing understands the need for competition. But Washington and Brussels should move expeditiously to conclude these treaties with China – putting to the test its leaders’ commitment that competition, not reform for its own sake, is something they are prepared to adopt and champion.
FT
7. WSJ: China shows more manufacturing weakness in March
Data add to recent figures pointing to need for government action, analysts say.
WSJ
8. WP: Michelle Obama visits China’s Terra Cotta Army, jumps rope with young women
Michelle Obama stopped down for five hours for a purely
touristic visit, giving her and her family a view of China’s ancient history. The city is the terminus of the legendary Silk Road, a series of trade routes that linked the East and West throughout history, and is also home to the Terra Cotta Army. The massive clay sculptures were discovered in the spring of 1974 in the eastern suburbs of the city by farmers digging a well near the grave of China’s first emperor, Qinshihuang. Obama was led through the archeological site by Cao Wei, director of the site’s museum. She went down into several pits, the largest of which contains 6,000 life-sized warriors arranged along brick-paved corridors in battle formation.
Cao led Obama, her daughters and her mother onto a restoration platform in the first pit, where archeologists put together fragments of the sculptures like jigsaw puzzles. The first lady and her family lingered in the pit, asking questions and listening as Cao explained through an interpreter that the soldiers have different poses. Their facial expressions are also varied.
WP
9. CD: Xi Jinping meets Obama in Netherlands
President Xi Jinping met Monday with his US counterpart Barack Obama on the sidelines of the third Nuclear Security
Summit which is being held Monday and Tuesday at The Hague in the Netherlands. It is the first meeting between the two presidents this year. Xi said that China is firmly committed to building a new model of major-country relations. "We are committed to our position of no confrontation, no conflict, mutual respect and win-win cooperation with regard to the United States," the Chinese leader said, adding that China will continue with its aim of "adopting a more positive attitude" and "more vigorous actions" to strengthen cooperation with the United States.
CD
10. Xinhua: China willing to join U.S. in promoting new model for major-country ties: Xi
China is willing to work with the United States to keep the two nations on the right path towards building a new type of major-country relations, said Chinese President Xi Jinping on Monday. The Chinese leader made the remarks while meeting with his U.S.
counterpart, Barack Obama, ahead of a nuclear security summit. It is the first meeting between the two presidents this year. Xi said that he appreciated a similar commitment from the U.S.
side in a letter he had received recently from Obama. The Chinese leader added that he agreed with that China-U
.S.
cooperation, as was described by Obama in the letter, is beneficial for the two countries to promote shared interests and deal with common challenges. Beijing will also join Washington in handling bilateral ties based on such principles as non-confrontational actions, mutual respect, and win-win cooperation, Xi said. He expects the two nations to take more active and forceful actions to coordinate their bilateral, regional and global cooperation, and efficiently manage their differences and other sensitive matters so as to maintain a healthy and stable development of bilateral ties. Speaking of the missing Malaysia jetliner MH370, the Chinese president thanked the U.S.
input for searching the plane, as well as sharing relevant information with China.
Xinhua photo
Xinhua
11. Xinhua: U.S. urged to stop spying activities on China
China on Monday asked the United States to explain spying
activities it allegedly carried out
on China and told it to stop such acts. Foreign Ministry spokesman Hong Lei made the remarks at a regular press briefing when he was asked to comment on news reports that the U.S. National Security Agency spied on China's telecommunications giant Huawei, former leaders, foreign and commerce ministries and banks. China is greatly concerned about the news reports, Hong said, adding that media organizations have recently disclosed a lot of eavesdropping, surveillance and stealing of secret information by the United States, targeting other countries, including China. Hong said China demands that the U.S.
explains itself and stop such acts.
Xinhua
12. Caixin: State-owned oil firms head into uncharted waters by inviting outside investors
Sinopec and CNPC
are take a cue from decisions made at a major Communist Party meeting last year to launch pilots aimed at mixed-share ownership.
Caixin
13. CD: China to continue drive to modernize energy industry
China's stance on climate change as being of "common but differentiated responsibilities" will not be changed, but it is not an excuse for slowing down the pace of industrial restructuring, said Premier Li Keqiang. The government will control the country's total amount of energy consumption, promote the efficiency of energy usage, and encourage the development of clean-energy industries, including those related to wind, hydro, nuclear and solar power, Li said. "In terms of energy supply, coal power will not be the only solution for us," Li said. Li made the remarks on Friday during a meeting of the State Council, China's Cabinet. Under international law, "common but differentiated responsibilities"
refers to the idea that although not all countries are equally responsible for global environmental problems, they nonetheless are responsible for addressing these problems. As a responsible country, China would like to cooperate with other countries in efforts to save energy and cut emissions, Li said.
CD
14. WSJ: Carlyle targets China health-care, consumer, and food industries
Carlyle co-founder expects China will be new Asia fund's biggest destination for its dollars.
WSJ
15. Bloomberg: China fines Nu Skin $540,000 for illegal sales and claims
Nu Skin
Enterprises Inc.
was fined $540,000 in China for selling items illegally and making product claims it couldn’t verify, part of a government probe into alleged abuses by the direct seller of skin and hair cleansers. Six sales employees were also fined $241,000 for unauthorized promotional activities, the Provo, Utah-based company said in a statement today, about two months after the investigation was announced by the Chinese government. The move sparked optimism that Nu Skin can now get back on track in the world’s second-largest economy, sending its stock up 18 percent in New York trading. “Today’s news is positive, in our view, given it could indicate a path toward resuming normal activities in the market,” Mark Astrachan, an analyst with Stifel Nicolaus & Co.
in New York, said in a note.
Bloomberg
16. LAT: Johnny Depp's 'Transcendence' to open same day in China and U.S.
The upcoming Johnny Depp sci-fi movie "Transcendence" will debut in China on April 18, the same day it's released in the U.S., Chinese company DMG Entertainment said on Monday. China is also getting an exclusive 3-D version of "Transcendence," the directing debut of Christopher Nolan's longtime cinematographer Wally Pfister. Getting the movie to Chinese audiences at the same time as American moviegoers is a growing trend and a key tactic for DMG, which is handling distribution for "Transcendence" in China, the world's second biggest film market behind the U.S.
LAT
17. LAT: Wealthy Chinese home buyers boost suburban L.A. housing markets
Demand for L
.A
.-area homes among affluent Chinese are pushing prices past boom-era peaks, generating a subset of property brokers and mortgage lenders that cater to their distinct needs.
LAT
18. WSJ - Derek Scissors Oped: For Chinese reform, it's private banks or bust
Rate liberalization cannot occur until there is more privatization in banking.
WSJ
