Category Archives: China

The 7th Fleet Deployment v. China

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SOUTH CHINA SEA – USS Stockdale (DDG 106) is conducting a routine patrol in international waters of the South China Sea as part of the John C. Stennis Strike Group and Great Green Fleet on a regularly scheduled 7th Fleet deployment.

“The strike group is exercising our right to operate in international waters,” said Rear Adm. Ron Boxall, commander, John C. Stennis Strike Group. “Our presence here promotes peace and stability in the region. We’ve got vibrant economies in the Western Pacific, and it’s really important for us to be there for our national interests and to ensure that we can keep the sea lanes free.”

In recent months, other U.S. Navy ships have conducted similar operations in the 7th Fleet area of operations including the Arleigh Burke-class guided-missile destroyers USS Curtis Wilbur (DDG 54), USS Lassen (DDG 82), USS McCampbell (DDG 85) and USS Preble (DDG 88), the multi-purpose amphibious assault ship USS Essex (LHD 2), the Ticonderoga-class guided missile cruiser USS Chancellorsville (CG 62) and the Freedom-class littoral combat ship USS Fort Worth (LCS 3). The amphibious dock landing ship USS Ashland (LSD 48) completed a similar patrol, Feb. 26.

Stockdale is currently on patrol in 7th Fleet as part of the John C. Stennis Strike Group (JCSSG). The strike group is comprised of USS John C. Stennis (CVN 74) with Carrier Airwing (CVW) 9 and Destroyer Squadron (DESRON) 21 embarked, Arleigh Burke-class guided-missile destroyers USS Chung-Hoon (DDG 93), USS Stockdale (DDG 106), USS William P. Lawrence (DDG 110) and Ticonderoga-class guided-missile cruiser USS Mobile Bay (CG 53).

CVW-9 consists of Helicopter Maritime Strike Squadron (HSM) 71, Helicopter Sea Combat Squadron (HSC) 14, Airborne Early Warning Squadron (VAW) 112, Electronic Attack Squadron (VAQ) 133 and Strike Fighter Squadrons (VFA) 151, 97, 41, 14.

JCSSG is providing a ready force supporting security and stability in the Indo-Asia- Pacific.

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For a full photo essay, go here.

What China Has Been Building in the South China Sea

NYT: China has placed runways and radar facilities on new islets in the South China Sea, built by piling huge amounts of sand onto reefs. The construction is straining already taut geopolitical tensions.

The speed and scale of China’s island-building spree in the South China Sea last year alarmed other countries with interests in the region. After announcing in June that the process of building seven new islands by moving sediment from the seafloor to reefs was almost done, China has focused its efforts on building ports, three airstrips, radar facilities and other military buildings on the islands. The installations bolster China’s foothold in the Spratly Islands, a disputed scattering of reefs and islands in the South China Sea more than 500 miles from the Chinese mainland. China’s activity in the Spratlys is a major point of contention between China and the United States, and has prompted the White House to send Navy destroyers to patrol near the islands twice in recent months.

The speed and scale of China’s island-building spree in the South China Sea last year alarmed other countries with interests in the region. After announcing in June that the process of building seven new islands by moving sediment from the seafloor to reefs was almost done, China has focused its efforts on building ports, three airstrips, radar facilities and other military buildings on the islands. The installations bolster China’s foothold in the Spratly Islands, a disputed scattering of reefs and islands in the South China Sea more than 500 miles from the Chinese mainland. China’s activity in the Spratlys is a major point of contention between China and the United States, and has prompted the White House to send Navy destroyers to patrol near the islands twice in recent months.

Sources: C.I.A., NASA, China Maritime Safety Administration

The new islands allow China to harness a portion of the sea for its own use that had been relatively out of reach. Although there are significant fisheries and possible large oil and gas reserves in the South China Sea, China’s efforts serve more to fortify its territorial claims than to help it extract natural resources, said Mira Rapp-Hooper, formerly the director of the Asia Maritime Transparency Initiative at the Center for Strategic and International Studies, a Washington research group. Though they are too small to support large military units, the islands will also enable sustained air and sea patrols, strengthening China’s influence in the area.

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Several reefs have been destroyed outright to serve as a foundation for the new islands, and the process also causes extensive damage to the surrounding marine ecosystem. Frank Muller-Karger, professor of biological oceanography at the University of South Florida, said sediment “can wash back into the sea, forming plumes that can smother marine life and could be laced with heavy metals, oil and other chemicals from the ships and shore facilities being built.” Such plumes threaten the biologically diverse reefs throughout the Spratlys, which Dr. Muller-Karger said may have trouble surviving in sediment-laden water. 

Although China was a relative latecomer to construction in the Spratly archipelago, its island building is much more extensive than similar efforts by other countries in the area. The recent activity has unsettled the United States, which has about $1.2 trillion in bilateral trade go through the South China Sea every year.

Washington does not recognize China’s ownership of the islands, and in February President Obama reiterated the government’s position that “the United States will continue to fly, sail and operate wherever international law allows.” To reinforce the message, the United States Navy sent missile destroyers in October and January within 12 nautical miles of the islands, the conventional limit for territorial waters. According to statements from David Shear, the top Pentagon official in charge of Asia and the Pacific, the last time before October that the United States had sent ships or aircraft that close to the islands was in 2012.

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What Is on the Islands

China has built airstrips, ports, radar facilities, solar arrays, lighthouses and support buildings on the islands. The airstrips and ports lengthen the reach of Chinese ships and planes, while the radar facilities allow the country to keep a closer eye on what is happening nearby. Imagery from January compiled for a recent report by the C.S.I.S. suggests that China may be constructing a longer-range high-frequency radar installation on Cuarteron Reef that would help the country monitor air and ship traffic in the south, farther from the Chinese mainland.

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Fiery Cross Reef is one of China’s most strategically important new islands, with an airstrip that is long enough to allow the country to land any plane, from fighter jets to large transport aircraft.

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Two additional airstrips on Mischief Reef and Subi Reef that China has been building since mid-2015 are nearing completion, bringing China’s total to three airstrips in the region.

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Though China’s airstrips expand the country’s ability to operate in the South China Sea, they are not the first in the region — every other country that occupies the Spratlys already operates an airstrip as well.

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Vietnam, Malaysia, the Philippines and Taiwan have also expanded islands in the Spratlys, but at a much smaller scale than China’s efforts.

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China’s reefs hosted smaller structures for years before the current surge in construction. By preserving these initially isolated buildings, China can claim that it is merely expanding existing facilities, similar to what other countries have done elsewhere in the region.

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Construction on Johnson South Reef from January 2014 to February 2016.

Image by DigitalGlobe, via CSIS Asia Maritime Transparency Initiative

 

Escalating Military Conflict in Iraq and S. China Sea?

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US sending nuclear-capable B-52 bombers to ISIS fight

FNC: The United States is sending nuclear-capable B-52 aircraft to drop bombs on the Islamic State terror group, defense officials confirmed to Fox News Friday.

The B-52 Stratofortress will start its first bombing campaign against ISIS in April, the Air Force Times reports. It’s not clear how many B-52s or airmen will be involved.

Officials say the aircraft will replace nuclear-capable B-1 Lancers hitting ISIS targets in Iraq and Syria.

The Lancers returned to home bases in the U.S. in January. They flew only 3% of all strike missions against ISIS, but had dropped 40% of the bombs and other munitions. B-1s could loiter over the battlefield for 10 hours, much longer than jet fighters, and also could fly supersonic, reaching targets across Iraq and Syria within minutes.

“The B-1s are rotated out, so they’re not here right now, they’ve gone back to do some upgrades,” Lieutenant General Charles Q. Brown Jr., commander at U.S. Air Forces Central Command, told reporters.  More here.

The U.S. just sent a carrier strike group to confront China

The U.S. Navy has dispatched a small armada to the South China Sea.

NavyTimes: The carrier John C. Stennis, two destroyers, two cruisers and the 7th Fleet flagship have sailed into the disputed waters in recent days, according to military officials. The carrier strike group is the latest show of force in the tense region, with the U.S. asserting that China is militarizing the region to guard its excessive territorial claims.

Stennis is joined in the region by the cruisers Antietam and Mobile Bay, and the destroyers Chung-Hoon and Stockdale. The command ship Blue Ridge, the floating headquarters of the Japan-based 7th Fleet, is also in the area, en route to a port visit in the Philippines. Stennis deployed from Washington state on Jan. 15.

The Japan-based Antietam, officials said, was conducting a “routine patrol” separate from the Stennis, following up patrols conducted by the destroyer McCambell and the dock landing ship Ashland in late February.

The stand-off has been heating up on both sides. After news in February that the Chinese deployed an advanced surface-to-air missile battery to the Paracel Islands, U.S. Pacific Command head Adm. Harry Harris told lawmakers that China was militarizing the South China Sea.

“In my opinion China is clearly militarizing the South China Sea,” Harris testified on Feb. 24. “You’d have to believe in a flat Earth to believe otherwise.”

Overnight, Chinese officials dismissed claims that China was militarizing the region, pointing to the Stennis’s patrol as evidence that the U.S. was to blame for the increased military tensions.

“The accusation [that China is militarizing the region] can lead to a miscalculation of the situation,” said Fu Ying, a spokeswoman for China’s National People’s Congress. “If you take a look at the matter closely, it’s the US sending the most advanced aircraft and military vessels to the South China Sea.”

A Pacific Fleet spokesman downplayed the heavy U.S. presence in the region.

“Our ships and aircraft operate routinely throughout the Western Pacific — including the South China Sea — and have for decades,” Cmdr. Clay Doss said in a statement. “In 2015 alone, Pacific Fleet ships sailed about 700 combined days in the South China Sea.”

However, experts say sending Stennis and its air wing to the South China Sea is a clear signal to China and the region.

“Clearly the Navy and DoD is demonstrating its full commitment to presence and freedom of navigation in the region,” said Jerry Hendrix, a retired Navy captain and analyst with the Center for a New American Security in Washington, D.C. “With the full carrier strike group and the command ship, the Navy is showing the scope of its interests and ability to project presence and power around world.”

The destroyer Lassen’s vaunted October patrol within the 12-mile limit of China’s man-made South China Sea islands was the first challenge of China’s sovereignty over the Spratly Islands since Chinese land-reclamation projects began there.

On Jan. 30, the destroyer Curtis Wilbur patrolled near Triton Island, part of the Paracel Islands chain China also claims. More here.

Hey Pentagon, Hiring Hackers, a Good Idea?

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Personally I do see some positives, but I see more downsides….what say you?

The Department of Defense announced today that it will invite vetted hackers to test the department’s cybersecurity under a unique pilot program.  The “Hack the Pentagon” initiative is the first cyber bug bounty program in the history of the federal government.

 

Under the pilot program, the department will use commercial sector crowdsourcing to allow qualified participants to conduct vulnerability identification and analysis on the department’s public webpages.  The bug bounty program is modeled after similar competitions conducted by some of the nation’s biggest companies to improve the security and delivery of networks, products, and digital services. The pilot marks the first in a series of programs designed to test and find vulnerabilities in the department’s applications, websites, and networks.

 

Participants in the bug bounty will be required to register and submit to a background check prior to any involvement with the pilot program.  Once vetted, these hackers will participate in a controlled, limited duration program that will allow them to identify vulnerabilities on a predetermined department system.  Other networks, including the department’s critical, mission-facing systems will not be part of the bug bounty pilot program.  Participants in the competition could be eligible for monetary awards and other recognition.

This innovative project is a demonstration of Secretary Carter’s continued commitment to drive the Pentagon to identify new ways to improve the department’s security measures as our interests in cyberspace evolve.

Pentagon to Establish Defense Innovation Advisory Board

WASHINGTON, March 2, 2016 — In an effort to enhance the Defense Department’s culture, organization and processes by tapping innovators from the private sector in Silicon Valley and beyond, Defense Secretary Ash Carter announced plans today to establish a Defense Innovation Advisory Board, Pentagon Press Secretary Peter Cook said.

 Google, CEO

The initiative represents the secretary’s enduring commitment to building lasting partnerships between the public and private sectors, Cook said in a statement.

“Just as the Defense Business Board provides advice to the department on best business practices from the private sector, the Defense Innovation Advisory Board will provide advice on the best and latest practices in innovation that the department can emulate,” Cook added.

The board’s mandate is to provide department leaders independent advice on innovative and adaptive means to address future organizational and cultural challenges, the press secretary said, including the use of technology alternatives, streamlined project management processes and approaches — all with the goal of identifying quick solutions to DoD problems.

Areas Deeply Familiar in Silicon Valley

The board will seek to advise the department on areas that are deeply familiar to Silicon Valley companies, such as rapid prototyping, iterative product development, complex data analysis in business decision making, the use of mobile and cloud applications, and organizational information sharing, Cook said, and will not engage in discussion of military operations or strategy.

Alphabet Executive Chairman Eric Schmidt will chair the board, which will be composed of up to 12 people who have successfully led large private and public organizations and excelled at identifying and adopting new technology concepts, Cook said.

Carter and Schmidt will jointly select the board, Cook said. “Members will represent a cross-section of America’s most innovative industries, drawing on technical and management expertise from Silicon Valley and beyond,” he added.

As chairman of Alphabet and as the author of “How Google Works,” Schmidt has a unique perspective on the latest practices in harnessing and encouraging innovation and in the importance of technology in driving organizational behavior and business operations, Cook said.

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US spy chief James Clapper highlights cyber threats

BBC: US intelligence agencies have placed cyber attacks from foreign governments and criminals at the top of their list of threats to the country.

Online assaults would increasingly undermine US economic competitiveness and national security, said Director of National Intelligence James Clapper.

A report issued by his office said Russia’s military was setting up a cyber command to carry out attacks.

The report also describes China, Iran and North Korea as leading threats.

In testimony to a congressional committee on Thursday, Mr Clapper said he no longer believed the US faced “cyber Armageddon”.

The idea that major infrastructure such as financial networks or power grids could be disabled by hackers now looked less probable, he said.

However he warned: “We foresee an ongoing series of low-to-moderate level cyber attacks from a variety of sources over time, which will impose cumulative costs on US economic competitiveness and national security.”

Mr Clapper highlighted the case of Russia, which he said posed the greatest a cyber risk to US interests. He said that threat from the Russian government was “more severe” than previously realised.

He also said profit-minded criminals and ideologically driven hackers were also increasingly active.

Over the past year there have been a series of high-profile cyber attacks against US targets.

North Korea was accused of being behind the theft of a huge data cache from Sony Pictures in November.

Mr Clapper also mentioned the example of an alleged Iranian attack on the Las Vegas Sands Casino Corporation last year.

Meanwhile in January the Twitter and YouTube accounts of the US military command were hacked by a group claiming to back Islamic State (IS).

During the hearing, Mr Clapper acknowledged that the US had its own “offensive capabilities”.

In 2010 Iran experienced a cyber attack on its nuclear program. Tehran accused Israel and the US of planting malware.

China to lay off five to six million workers

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Hank Paulson: China needs to let ‘failing companies fail’

Former U.S. Treasury Secretary Henry Paulson, who oversaw bank bailouts during the global financial crisis, has different advice for China: Let companies fail.

“They can show right now they’re very serious about dealing with inefficient state-owned enterprises as they take capacity out of the steel industry, coal industry and others by letting some failing companies fail,” Paulson, who was Treasury secretary from 2006-2009, told CNBC’s Squawk Box on the sidelines of an Institute of International Finance event organized in conjunction with the G20 meeting in Shanghai.

As Treasury secretary, Paulson oversaw a $700 billion government-funded bailout of U.S. financial institutions that were seen as “too big to fail” in the global financial crisis.

Paulson, who is also a former chairman and CEO of Goldman Sachs, added that China needed to move faster to promote competition.

“Competition is about opening up to the private sector, which is the future, and it’s about putting the state-owned enterprises on a level playing field,” said Paulson,, who earlier this decade founded the independent think tank Paulson Institute promoting sustainable and environmental projects. “There’s clearly room to move faster.”

Last year, China issued guidance on reforming often-inefficient state enterprises, such as introducing mixed public-private ownership as well as pushing for mergers and share sales, but the market isn’t always certain of progress on this front.

Exclusive: China to lay off five to six million workers, earmarks at least $23 billion

Reuters: China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, two reliable sources said, Beijing’s boldest retrenchment program in almost two decades.

China’s leadership, obsessed with maintaining stability and making sure redundancies do not lead to unrest, will spend nearly 150 billion yuan ($23 billion) to cover layoffs in just the coal and steel sectors in the next 2-3 years.

The overall figure is likely to rise as closures spread to other industries and even more funding will be required to handle the debt left behind by “zombie” state firms.

The term refers to companies that have shut down some of their operations but keep staff on their rolls since local governments are worried about the social and economic impact of bankruptcies and unemployment.

Shutting down “zombie firms” has been identified as one of the government’s priorities this year, with China’s Premier Li Keqiang promising in December that they would soon “go under the knife”..

The government plans to lay off five million workers in industries suffering from a supply glut, one source with ties to the leadership said.

A second source with leadership ties put the number of layoffs at six million. Both sources requested anonymity because they were not authorized to speak to media about the politically sensitive subject for fear of sparking social unrest.

The ministry of industry did not immediately respond when asked for comment on the reports.

The hugely inefficient state sector employed around 37 million people in 2013 and accounts for about 40 percent of the country’s industrial output and nearly half of its bank lending.

It is China’s most significant nationwide retrenchment since the restructuring of state-owned enterprises from 1998 to 2003 led to around 28 million redundancies and cost the central government about 73.1 billion yuan ($11.2 billion) in resettlement funds.

On Monday, Yin Weimin, the minister for human resources and social security, said China expects to lay off 1.8 million workers in the coal and steel industries, but he did not give a timeframe.

China aims to cut capacity gluts in as many as seven sectors, including cement, glassmaking and shipbuilding, but the oversupplied solar power industry is likely to be spared any large-scale restructuring because it still has growth potential, the first source said.

DEBT OVERHANG

The government has already drawn up plans to cut as much as 150 million tonnes of crude steel capacity and 500 million tonnes of surplus coal production in the next three to five years.

It has earmarked 100 billion yuan in central government funds to deal directly with the layoffs from steel and coal over the next two years, vice-industry minister Feng Fei said last week.

The Ministry of Finance said in January it would also collect 46 billion yuan from surcharges on coal-fired power over the coming three years in order to resettle workers. In addition, an assortment of local government matching funds will also be made available.

However, the funds currently being offered will do little to resolve the problems of debts held by zombie firms, which could overwhelm local banks if they are not handled correctly.

“They have proposed this dedicated fund only to pay the workers, but there is no money for the bad debts, and if the bad debts are too big the banks will have problems and there will be panic,” said Xu Zhongbo, head of Beijing Metal Consulting, who advises Chinese steel mills.

Factories shut down would have to repay bank loans to avoid saddling state banks with a mountain of non-performing loans, the sources said. “Triangular debt”, or money owed by firms to other enterprises, would also have to be resolved, they added.

Although China has promised to help local banks transfer the bad debts of zombie steel mills to asset management firms, local governments are not expected to gain access to the worker lay-off funds until the zombie firms have actually been shut down and debt issues settled.

($1 = 6.5476 Chinese yuan)

China’s Exploding Military Footprint

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This Map Visualizes China’s Growing Military Capabilities In The South China Sea

This Map Visualizes China's Growing Military Capabilities In The South China Sea

This awesome interactive map shows China’s emerging area denial and anti-access military capabilities in the South China Sea. It is useful in visually tracking China’s progress towards creating an overlapping field of control over a vast majority of the area.

The map, which you can access here, is built by the Center for Strategic and International Studies (CSIS).

Great work Tyler:One of China’s highly developed islands in the northern part of the South China Sea, Woody Island, has been equipped with surface-to-air missiles and fighter aircraft. These moves have come just as many defense analysts have predicted for years and are likely an indication of things to come for China’s other island outposts throughout the South China Sea.

There is also evidence that China is installing a high-frequency long-range radar array on Cuarteron Reef, one of their handful of manmade islands in the south-central part of the South China Sea. This radar type is known to be used for detecting aircraft and ships at extreme ranges far over-the-horizon and can theoretically detect some stealthy aircraft under certain circumstances. It is just one of many other sensors popping up on this island and others, although the existence of such a capability provides even more evidence that China is actively seeking an aggressive anti-access, area denial strategy over the South China Sea.

China might be installing HF radar that can detect stealth aircraft in S. China Sea

This all comes as China’s largest island building project out of their manmade island initiative, Fiery Cross Reef, officially activated its 9,000-foot runway early last month. The runway is capable of supporting even China’s heaviest bomber and transport aircraft.

With any luck CSIS will keep updating this fabulous visual resource as China expands its military capabilities to its other islands that remain under construction in the South China Sea. Undoubtedly, the threat rings you see today will blossom and multiply, creating a massive overlapping area of control backed up by anti-ship and anti-air missiles, as well as fighter and maritime surveillance and attack aircraft.

Going back to 2015: (So much for that Obama Asia Pivot)

WSJ:

Analysts say the imminent end to China’s island-building work could signal a willingness to seek compromise with Washington and rival claimants in the South China Sea, even as it demonstrates Beijing’s ability to unilaterally dictate terms in the long-standing dispute.

“This is a step toward halting land reclamation, which the U.S. has demanded, and at the same time, China can tell its people that it has accomplished what it wanted to do,” said Huang Jing, an expert on Chinese foreign policy at the Lee Kuan Yew School of Public Policy in Singapore.

“China unilaterally started the land reclamation and now China is unilaterally stopping it,” Mr. Huang said. “China is showing that—as a major power—it can control escalation, that it has the initiative, and that it can do what it sees fit for its interests.”

Beijing lays claim to almost the entire South China Sea, a stretch of resource-rich waters that carries more than half the world’s trade. Its claims overlap with those of Malaysia, Vietnam, Brunei, Taiwan and the Philippines—several of whom have criticized China’s rapid and extensive construction program in the Spratlys as the latest in a series of aggressive Chinese efforts to assert territorial rights.