South China Sea

♦ The FT’s partner charity for this year’s Seasonal Appeal is World Child Cancer – Shawn Donnan and Andrew Schipani look at the work it has been doing in Colombia.
♦ The FT’s Jamil Anderlini explains why London gains little from trying to please Beijing.
♦ As territorial disputes escalate in the waters around China, the Chinese government has been asserting ownership over thousands of shipwrecks in the South China Sea, which it says have been in its territorial waters for centuries.
♦ David Sanger at the New York Times analyses the row over the disputed islands: “As in the Cold War, the immediate territorial dispute seems to be an excuse for a far larger question of who will exercise influence over a vast region.”
A geopolitical tug of war is pulling Ukraine to the brink of upheaval once more.
German Christmas markets are not what they used to be – gifts and wholesome foods are being replaced by fatty foods and tacky fairground rides.  Read more

♦ The FT’s Neil Buckley interviews Mikhail Khodorkovsky, Russia’s most famous prisoner – a former oligarch who dared to cross Vladimir Putin.
♦ Trade has broken from a 30-year trend of growing at twice the speed of the global economy, pushing economists to wonder whether there has been a fundamental shift in world business.
♦ The Palestinians have called on countries to tell companies linked to Jewish settlements in the West Bank and East Jerusalem to withdraw immediately because the settlements violate international law.
♦ Mark Carney says the Bank of England is open for business and the days when the Old Lady preached the perils of “moral hazard” without due regard to financial pressures are well and truly over.
♦ The allegation by the German government that the NSA monitored Angela Merkel’s mobile phone has set off recriminations behind the scenes in the US.
♦ The NYT looks at the friction point between the Philiippines and China in the South China Sea, reporting from a ship at the dividing line.
♦ Formula 1 is considered entertainment, not a sport, by the Indian government, while chess is considered to be a sporting event.
♦ There is some disbelief over Al-Sisi mania.
♦ Tony Blair in the the Balkans to deliver some “deliverology”.
 Read more

The Xi-Obama summit
Later this week, the presidents of the United States and China will hold a two-day summit, the first since Xi Jinping’s elevation to the top job in China. It comes as US-China tensions are fairly high on a number of issues, from cyber attacks to territorial disputes in the East and South China Seas. So what are both sides hoping to achieve? Gideon Rachman is joined by James Kynge, editor of FT China Confidential, and Geoff Dyer,who was a Beijing correspondent before his current assignment in Washington.

By Gideon Rachman

Everybody agrees that economic and political power is moving east. Barack Obama has constructed a whole new foreign policy around this theory – the “pivot to Asia”. But, as I assemble my annual list of the five most important events of the year, it is striking how events in Europe and the Middle East still dominate.

This is what got us chatting today:

David Pilling

China’s definition of what constitutes its “core interest” appears to be spreading. Such interests used to be confined to a few areas, about which the Communist party would brook absolutely no dissenting view. These included its national security, national sovereignty and territorial integrity.

Tibet, where there is a strong separatist element, quite obviously forms part of China’s definition of territorial integrity. So does the island of Taiwan, ceded to Japan in 1895, and now a self-governed democracy. Beijing has made clear that, if Taiwan were ever to declare formal independence, it would invade. More recently, the term has been applied to Xinjiang, the huge area of western China that has been the scene of clashes between local Muslims and Han Chinese. Read more