China's Navy an Emerging Global Force

 by Christian Fleming

 While still a long way off from challenging the United States as the predominant world naval power, China's modernized People's Liberation Army Navy (PLAN) is beginning to take a more assertive role in an expanding theater of operations.

Previously content on patrolling coastal waters and preparing for an armed conflict with Taiwan, China now has a naval presence all along commercial sea routes to the Middle East and has stepped up military operations in the contested waters of the East and South China Seas.

On April 10, a Chinese flotilla of 10 destroyers, frigates, and submarines from the East Sea Fleet, based in Ningbo, travelled through Japan's Miyako Straight on to the Pacific to conduct open ocean military exercises. A few days earlier, China's North Sea Fleet, based in Qingdao, passed through the Bashi Straight between the Philippines and Taiwan to do similar military exercises in the South China Sea. The PLA Navy's recent operations in the region have troubled China's coastal and island neighbors, with Japan's government particularly irked by the proximity of the maneuvers to Japanese territory.

Chinese President Hu Jintao met with Japanese Prime Minister Yukio Hatoyama during the Nuclear Security Summit in Washington on April 13, assuring him that China's intentions in the East China Sea are to turn the region into an area of peace, friendship, and cooperation.

"China does not hold an intention to challenge the U.S. in the central Pacific or engage in a military clash with Japan in close waters, though it is willing to protect its core interests at any cost," China's state-owned Global Times printed today in an attempt to comfort the world. The problem with the statement is that China has expanded what it defines as its "core interests." Beijing has previously reserved the term for areas such as Tibet and Taiwan, but now places its territorial claims in the South China Sea under the "core interest" category, according to the New York Times. Beijing may find its Southeast Asian neighbors, including Brunei, Indonesia, Malaysia and the Philippines, take issue with that statement.

U.S. officials in Washington are also fretting over the implications of a growing Chinese presence in the Middle East. In March, two Chinese frigates made port in the United Arab Emirates' capital of Abu Dhabi; the first time in modern history that a PLAN vessel has docked in the Middle East. Beijing also committed three warships to the Gulf of Aden in December 2008 to aid with international antipiracy efforts; the first time in modern history Chinese naval forces have been deployed beyond the Pacific Ocean.

Quantitatively, China and the United States are already on a similar playing field. A 2009 Pentagon report estimated the number of active Chinese naval vessels at 260, including 75 major warships and more than 60 submarines, compared to the U.S. Navy's 286 active vessels.

Qualitatively, though, China's navy remains decades behind that of the United States.  Ten of the American Navy's 286 active vessels are Nimitz-class nuclear powered supercarriers - each one capable of operating continuously for up to 20 years without refueling while holding up to 90 aircraft and 5,600 personnel. In contrast, China doesn't have any aircraft carriers, and although Beijing has revealed that it will complete the first Chinese carrier within the next few years, the United States will surely belittle that accomplishment when it launches the new Ford-class supercarrier in 2015.

China's official military budget for 2009 stood at US$70.3 billion, good for second highest in the world, but the Pentagon estimates that China's military spending last year was in the range of US$105 billion to US$150 billion. Whichever figure you use, it pales in comparison to the roughly US$533.8 billion proposed by U.S. President Obama for 2010. That translates into an expensive long-term battle for China if it wants to challenge America's global military presence in the 21st Century.



This article was written by 2point6billion.com by Christian Fleming. The site is contributed to by Dezan Shira and Associates, who offer advice on China tax and accounting to foreign companies doing business in Asia. They maintain accountants in China, India and Vietnam.

The writers also contribute to the India business news website, India-Briefing.com.

Article Source: http://www.articlesphere.com/Article/China-s-Navy-an-Emerging-Global-Force/222285

Economic Development Progress in Iran

The history of Iran’s economic growth

It is a well-known fact that Iran’s economic growth was considerable before the late 1970s. In those days they were primarily an agricultural society but this has started to change in the 70s because of increased industrialization and other economical advances. However the economic growth which has been experience began to slow down during 1978 just before the revolution which followed in 1979. After this revolution some drastic reforms followed such as state control over the setting of prices and all other subsidies. There was also a division of the country after the new Constitution has been accepted which led to a division of the country into 3 sectors such as private, state and cooperate and during this dispensation the majority of businesses have become state owned property. Most parts of the industry had been nationalized which included all Iranian banks and other organizations. Most initiatives which were entered into by the government was controlled through central planning which included five years socioeconomic plans which was decided upon by Iran’s supreme leader, the president and the Majlis.

Long-term economic plans

After the revolution the primary objective of government was to ensure economic independence as well as comprehensive employment for everyone. The goal was to provide a comfortable standard of living for all Iranian citizens. Unfortunately by the time that the end of the 20th century was reached the country was faced with increasing economic problems. This problem was further escalated by the very high population growth which took place in the space of only 20 years. During this time the Iranian population has doubled and the average citizens were increasingly younger people. Traditionally Iranians have been primarily farmers but nevertheless agricultural production has been on the decrease since the 1960s. This has led to a situation where Iran has been forced to import large amounts of its food sources. Because of the increasing difficulties which were experienced in rural areas many people started to move to metropolitan areas.

The burden brought about by the war

The extended conflict which existed between Iraq and Iran over a period of eight years has led to a loss of life for over 300,000 Iranians while a further 500,000 Iranian soldiers had been severely injured. This has placed a very heavy burden on the Iranian economy and that has been calculated that the total cost of that war was at least US$500 billion. This necessitated a rebuilding process and some of the areas which needed special attention with transportation, healthcare, communication, manufacturing and the energy sectors. This included nuclear power facilities. There has been several attempts since 2004 when the supreme leader of Iran has tried to implement reforms that will lead to the total privatization of Iran but such attempts have not been successful to date. This had resulted in a situation where Iran are basically a command economy which are in a transition process towards becoming a market economy. It is expected that more severe transformation processes has to be implement before any real economic growth will become possible.



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