Tuesday, December 26, 2017

Bitcoin Looks Like it's Shaking Off its Holiday Hangover - TIME Business

26/12/2017
Bitcoin Looks Like it's Shaking Off its Holiday Hangover
By BLOOMBERG 6:59 AM EST
Bitcoin rallied past $15,000 on Tuesday as traders of the world’s biggest digital currency sought to draw a line under its roller coaster five-day slump.
The tokens rose 10 percent to $15,116.50 as of 11:26 a.m. in London, the biggest gain on a closing basis in more than two weeks and the first in six days. Rival currencies litecoin and ethereum were up 2.9 percent and 2.1 percent, respectively, according to data compiled by Bloomberg.
The gains will be a welcome relief for cryto bulls, after bitcoin declined 26 percent in the five days through Monday in what was seen as a major test for the nascent digital currency industry. The advance suggests that, even as financial authorities issue warnings about the risks of a bubble in the asset class, investor interest remains intact, at least for now.
“The most important question facing it is whether the recent price correction will prove to be what market participants refer to as ‘healthy’,” Mohammed El-Erian wrote in a Bloomberg View column Tuesday. In other words, one that shakes out “excessive irrational exuberance, provides for the entry of institutional investors, encourages the development of market-deepening products, and widens and balances out the investor
Beaten by Rivals
Amid bitcoin’s wild price ride, attention is also increasingly turning to rival digital tokens. Since the largest cryptocurrency hit a record $19,511 on Dec. 18, it has actually underperformed peers such as ripple and ethereum.
Bitcoin is the crypto benchmark, but not the best representation of the technology, Mike McGlone, Bloomberg Intelligence analyst, wrote in a column on Sunday. A proper focus for institutional investors is likely the broader market, including “forks” and second-generation — or 2G — offshoots that address bitcoin’s flaws, he said.
When the frenzy subsides, 2Gs should continue to gain on bitcoin, according to McGlone. “Ethereum appears prime to assume benchmark status, though bitcoin forks ripple and litecoin are the primary up-and-coming contenders,” he said.
Terminal users can find pricing details using the following tickers: XBT Curncy GP for bitcoin XRP Curncy GP for ripple XET Curncy GP for ether XLC Curncy GP for litecoin

China accused of waging war on Christmas - Financial Times


26/12/2017
China accused of waging war on Christmas
Beijing denies national ban even as local authorities outlaw celebrations
A security guard stands beside a Christmas-themed sculpture in a Beijing mall this month © Reuters
Charles Clover in Beijing
Chinese officials have put a dampener on Christmas spirit — with some even telling party members and their families not to celebrate the holiday.
Throughout China, local governments, Communist party branches, schools and even shopping malls issued regulations this year suggesting people tone down Christmas parties and decorations.
The government insists there is no actual ban of Christmas in place at the national level but the number of local bans have raised questions about whether there is a behind-the-scenes “war on Christmas” by Beijing. 
Christmas is not a holiday in China but has grown in popularity in recent years, particularly among the young, who see it less in religious terms and more as an excuse to shop. “Some of us like Christmas just because it is exotic, it is a chance to be part of world culture,” said Claire Yu, who was shopping at a mall on Tuesday. The popularity of Christmas is also a barometer of Christianity in China, which has made inroads despite official atheism.
Some of the local regulations are thought to have been inspired by a recent focus by President Xi Jinping on strengthening traditional Chinese values. “We, the Chinese people, have greater confidence in our own culture,” Mr Xi said in his most important speech of the year, the report to the 19th Communist party Congress in October. “Cultural confidence represents a fundamental and profound force that sustains the development of a country and a nation.”
In China’s provinces, social media have published details of local governments banning Christmas for government officials and Communist party members. Security officials in Hengyang, one central Chinese city, published a notice on December 19 telling Communist party members, government officials and their families not to celebrate Christmas. It also said it would fine anyone caught making or selling artificial snow. 
Happier times: a film broadcast this year by state-run broadcaster CGTN shows Xi Jinping meeting Santa Claus in Finland in 2010
On Christmas Eve, a provincial division of the China Communist Youth League from the southern province of Anhui published an article on social media that said “enthusiasm for western holidays can easily lead to a loss of faith by party members”.
The Communist Youth League of Shenyang Pharmaceutical University this month also forbade student governing bodies from holding any activities centred on western religious holidays. It said promotional activities by some businesses had left some young people “blindly excited about western holidays”.
Following initial reports about regional bans, China’s censorship authorities ordered the country’s tightly controlled media not to report news related to Christmas, according to instructions leaked on the internet.
China’s official press insisted that talk of a ban on Christmas was exaggerated.
“Westerners mistake local regulations for national ban” on Christmas, read the subheading on an article in the Global Times, a conservative state-run daily, on Christmas Day. 
“Members of the Communist Party of China in major cities such as Beijing and Shanghai have not been informed of any notice that bans Christmas”, said the Global Times. “The ban from some places and institutions was to maintain public security and has nothing to do with ‘boycotting’ Christmas”, it said.


Additional reporting by Sherry Fei Ju

China, Pakistan to look at including Afghanistan in $57 billion economic corridor - Reuters

DECEMBER 26, 2017 / 6:17 PM
China, Pakistan to look at including Afghanistan in $57 billion economic corridor
Ben Blanchard
BEIJING (Reuters) - China and Pakistan will look at extending their $57 billion China-Pakistan Economic Corridor to Afghanistan, Chinese Foreign Minister Wang Yi said on Tuesday, part of China’s ambitious Belt and Road plan linking China with Asia, Europe and beyond.
(L to R) Afghan Foreign Minister Salahuddin Rabbani, Chinese Foreign Minister Wang Yi and Pakistani Foreign Minister Khawaja Asif attend a joint news conference after the 1st China-Afghanistan-Pakistan Foreign Ministers' Dialogue in Beijing, China, December 26, 2017. REUTERS/Jason Lee
China has tried to position itself as a helpful party to promote talks between Pakistan and Afghanistan, both uneasy neighbors ever since Pakistan’s independence in 1947.
Their ties have been poisoned in recent years by Afghan accusations that Pakistan is supporting Taliban insurgents fighting the U.S.-backed Kabul in order to limit the influence of its old rival, India, in Afghanistan.
Pakistan denies that and says it wants to see a peaceful, stable Afghanistan.
Speaking after the first trilateral meeting between the foreign ministers of China, Pakistan and Afghanistan, Wang said China hoped the economic corridor could benefit the whole region and act as an impetus for development.
Afghanistan has urgent need to develop and improve people’s lives and hopes it can join inter-connectivity initiatives, Wang told reporters, as he announced that Pakistan and Afghanistan had agreed to mend their strained relations.
“So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan,” he added.
How that could happen needs the three countries to reach a gradual consensus, tackling easier, smaller projects first, Wang said, without giving details.
Afghan Foreign Minister Salahuddin Rabbani speaks during a joint news conference after the 1st China-Afghanistan-Pakistan Foreign Ministers' Dialogue in Beijing, China, December 26, 2017. REUTERS/Jason Lee
Pakistani Foreign Minister Khawaja Asif said his country and China were “iron brothers”, but did not directly mention the prospect of Afghanistan joining the corridor.
“The successful implementation of CPEC (China-Pakistan Economic Corridor) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighboring countries, including Afghanistan, Iran and with central and west Asia,” he said.
India has looked askance at the project as parts of it run through Pakistan-administered Kashmir that India considers its own territory, though Wang said the plan had nothing to do with territorial disputes.
China has sought to bring Kabul and Islamabad together partly due to Chinese fears about the spread of Islamist militancy from Pakistan and Afghanistan to the unrest-prone far western Chinese region of Xinjiang.
As such, China has pushed for Pakistan and Afghanistan to improve their own ties so they can better tackle the violence in their respective countries, and has also tried to broker peace talks with Afghan Taliban militants, to limited effect.
A tentative talks process collapsed in 2015.
Wang said China fully supported peace talks between the Afghan government and Taliban and would continue to provide “necessary facilitation”.
The Belt and Road infrastructure drive aims to build a modern-day “Silk Road” connecting China to economies in Southeast and Central Asia by land and the Middle East and Europe by sea.
Reporting by Ben Blanchard; Editing by Nick Macfie

Japan considers refitting helicopter carrier for stealth fighters: government sources - Reuters

DECEMBER 26, 2017 / 5:39 PM / UPDATED 5 HOURS AGO
Japan considers refitting helicopter carrier for stealth fighters: government sources
Nobuhiro Kubo, Tim Kelly
TOKYO (Reuters) - Japan is considering refitting the Izumo helicopter carrier so that it can land U.S. Marines F-35B stealth fighters, government sources said on Tuesday, as Tokyo faces China’s maritime expansion and North Korea’s missile and nuclear development.
Japan has not had fully fledged aircraft carriers since its World War Two defeat in 1945.
Any refit of the Izumo would be aimed at preparing for a scenario in which runways in Japan had been destroyed by missile attacks, and at bolstering defense around Japan’s southwestern islands, where China’s maritime activity has increased.
Three government sources close to the matter said the Japanese government was keeping in sight the possible future procurement of F-35B fighter jets, which can take off and land vertically, as it looks into the remodeling of the Izumo.
The 248-metre (814-feet) Izumo, Japan’s largest warship equipped with a flat flight deck, was designed with an eye to hosting F-35B fighters. Its elevator connecting the deck with the hangar can carry the aircraft, the sources said.
Possible refitting measures included adding a curved ramp at the end of the flight deck, improving the deck’s heat resistance against jet burners, and reinforcing the ship’s air traffic control capability, they said.
However, Japanese Defence Minister Itsunori Onodera said the government was not taking any concrete steps towards refitting the Izumo.
“Regarding our defense posture, we are constantly conducting various examinations. But no concrete examination is under way on the introduction of F-35B or remodeling of Izumo-class destroyers,” Onodera told reporters on Tuesday.
The Izumo has a sister ship called the Kaga.
Japan has frequently conducted joint drills with U.S. aircraft carriers in recent months to boost deterrence against North Korea.
One of the three government sources called such exercises “a great opportunity to see with our own eyes how the U.S. military operates their aircraft carriers” as Japan looks into the possible conversion of the Izumo into an aircraft carrier.
Regional tension has soared since North Korea conducted its sixth and largest nuclear test in September. Pyongyang said a month later it had successfully tested a new intercontinental ballistic missile that could reach all of the U.S. mainland.
Japan is also wary of China’s long-range missiles, and would like to secure measures to launch fighters from aircraft carriers in case runways operated by U.S. forces in Japan or by Japan’s Air Self-Defence Force were destroyed by missiles.
Article 9 of Japan’s pacifist constitution, if taken literally, bans the maintenance of armed forces. However, Japanese governments have interpreted it to allow a military exclusively for self-defense.
Owning an aircraft carrier could raise a question of constitutionality, the sources said, so the government is set to address the issue in its new National Defence Programme Guidelines to be compiled by the end of 2018.
Reporting by Nobuhiro Kubo and Tim Kelly; Writing by Kiyoshi Takenaka; Editing by Paul Tait

Trump has big plans for Nasa – but is it just a fantasy? - Guardian

To infinity and beyond: Trump has big plans for Nasa – but is it just a fantasy?
President’s ambitious proposals leave many questions unanswered, and experts’ cautious optimism is tempered by reservations about the details
Trump signs the space policy directive earlier this month. ‘It could be infinity. We don’t really don’t know. But it could be. It has to be something,’
Alan Yuhas
Alan Yuhas
@alanyuhas
Tue 26 Dec ‘17 20.00 AEDT
The world is not enough for Donald Trump: he has declared space “the next great American frontier” and mused to Congress that “American footprints on distant worlds are not too big a dream”.
Earlier this month, the president ordered the agency to head back to the moon. “This time we will not only plant our flag and leave our footprint, we will establish a foundation for an eventual mission to Mars, and perhaps someday to many other worlds beyond,” he said, before signing the new policy for Nasa.
The potential moon mission harkens back to policy under George W Bush, who in 2004 asked the agency to “gain a new foothold” there. His successor, Barack Obama, prioritized instead a 2030s mission to Mars, a program that has inched along due to its relatively low levels of funding.
Trump’s proposals leave many questions unanswered – a timeline, budget, specific goals and methods – and space policy experts expressed cautious optimism tempered by deep skepticism about the details.
“It could be a significant, almost historic step – if it is followed through,” said John Logsdon, professor emeritus at George Washington University and founder of the Space Policy Institute. “The proof is in the pudding, and the pudding is whether there is meaningful funding.”
For years, Nasa has worked on a deep space capsule and its Space Launch System, the most powerful rocket it has ever developed, with Mars in mind, although its current plan included a hypothetical pit stop in lunar orbit – the Deep Space Gateway, a space station that could be used as a staging post for deep space missions or landing on the moon’s surface.
The Space Launch System’s booster in Promontory, Utah.
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The Space Launch System’s booster in Promontory, Utah. Photograph: Bill Ingalls/AP
Casey Dreier, director of space policy at the Planetary Society, an advocacy group, said that Nasa can adjust its plans to focus squarely on landing on the moon, but that “space policy is a big ship to turn”.
He added: “It ultimately comes down to: what do you want to get out of the moon? Maybe you can get water out of the surface and get rocket fuel out of it and it can be a fueling depot. But it’s like building a gas station in the middle of the Alaskan wilderness before you’ve even built a road. There is no pre-existing business model on the moon.”
Nasa will have at least some competition. China has sent three robotic landers to the moon since 2007, with more in mind, and Moon Express, a private American venture aiming to win a $30m prize offered by Google, has a 2018 launch date and ambitions to mine the moon.
But would-be space entrepreneurs have run into regulatory hurdles, namely the Outer Space Treaty, signed in 1967, which holds that no country can claim a celestial body, and that governments supervise non-governmental organizations – like businesses – in space. In 2015, Obama signed a law that gave companies “space resource rights”, and earlier this year members of Congress proposed creating an “Office of Space Commerce”. But for now the legislation, like hopes to mine asteroids, remains far ahead of the actual technology.
Like Bush and Obama before him, Trump has encouraged private companies to fill the gaps. SpaceX and Blue Origin, owned by billionaires Elon Musk and Jeff Bezos respectively, are developing their own “heavy” rockets and space tourism programs. In February, Musk announced that two private citizens had bought tickets for a flight around the moon in 2018, though SpaceX has never flown a crewed mission or tested its heavy rocket. The first test flight is set for January, and a spokeswoman declined to give any new details about the moon mission.
The SpaceX Falcon 9 rocket with the Dragon spacecraft launches from Cape Canaveral earlier this month.
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The SpaceX Falcon 9 rocket with the Dragon spacecraft launches from Cape Canaveral earlier this month.
But Congress, which sets Nasa’s budget, holds most of the power over Nasa’s ambitions – and moon base dreams require moon base money. After John F Kennedy’s call to put astronauts on the moon, Nasa received an 89% budget increase; the agency spent about $207bn, adjusted for inflation, across the Apollo missions.
The agency’s current budget has hovered around $19bn a year recently – about 0.5% of federal spending, compared to 24% spent on social security and 15% on defense.
“We could spend a penny instead of half a penny and would get a lot more,” said Alan Steinberg, a political scientist at Rice University who studies Nasa policy. But while Kennedy could appeal to cold war sentiment, he said, “now it’s really hard for any administration, Republican or Democrat, to justify space funding.”
The experts are not holding their breath. “It’s very easy to sign a statement and it’s something different to implement it,” Smith said. “They’ve always fallen flat in the long run.”
Part of the problem is timing, Steinberg said: missions take years.
“Even if Trump says, ‘We’re going to Mars, this is gonna happen,’ it’s not going to happen under him,” he said. “Given the amount that any politician is concerned with credit, I think you get the same kind of problems with big spending for space.”
Congress is expected to finalize its 2019 budget in February. In the meantime, Nasa has no confirmed administrator or deputy administrator. The Senate has stalled for weeks over Trump’s pick to lead Nasa, the Republican congressman Jim Bridenstine.
If confirmed, the socially conservative politician, who has criticized spending on climate change research, would be the first elected official to be named administrator, and the rare Nasa head without a career in science or with the agency. But the Senate has yet to vote, and at least one Republican, Marco Rubio, vocally opposes him.
Trump has proposed cuts to earth sciences and canceled an asteroid mission, but many of Nasa’s other plans are still in place. Missions like the James Webb Space Telescope remain works in progress, and next summer the agency will launch a new Mars lander, to study the planet’s interior, as well as a car-sized spacecraft to fly into the atmosphere of the sun. In August, a spacecraft called Osiris Rex should arrive at the asteroid Bennu, where it aims to retrieve about two ounces of asteroid to bring back to earth.
Meanwhile the Kepler spacecraft is still hunting new planets, and the Voyager and New Horizon vessels are cruising into the farthest reaches that humanity has ever explored. Science advocates like Buzz Aldrin, the second man to walk on the moon, have continued to press the president to support space exploration.
“Infinity and beyond!” Aldrin joked to the president in June.
“This is infinity here,” Trump replied. “It could be infinity. We don’t really don’t know. But it could be. It has to be something. But it could be infinity, right?”

Trump Isn’t Watching Too Much TV. He’s Watching the Wrong Kind - Independent

Trump Isn’t Watching Too Much TV. He’s Watching the Wrong Kind
The President has pushed back against a report that says he “spends at least four hours a day” watching TV
25/12/2017
James Poniewozikdec
Donald Trump speaking at CPAC 2011 in Washington, D.C. Gage Skidmore
Because President Trump has said he is a reader — big-league reader, reads documents, the best documents — I hope that he is reading this, and not, say, watching a “Fox & Friends” recording on the gigantic flat-screen TV that he had installed in the White House dining room, even though he says he rarely watches.
We need to talk about the president’s TV habit. The one he doesn’t have.
Mr. Trump has been in something of a feud with this news organisation over a recent report about his White House routine. The president pushed back — not against the descriptions of staff turmoil or his prodigious Diet Coke intake, but the news that he “spends at least four hours a day, and sometimes as much as twice that, in front of a television.”
Mr. Trump took a break from his usual practice of live-tweeting “Fox & Friends” and “Morning Joe” to reject that detail:
twitter-trump
There is something bizarre about a reality-star president — a TV fixture for decades before “The Apprentice” — feeling the need to deny his affection for the medium that made him. There is something even more bizarre about him tweeting a denial that is contradicted not only by his extensive public record but seemingly by the Twitter post itself. (Or did Mr. Trump come to his opinion of Don Lemon by reading documents?)
But I will defend Mr. Trump at least this far: I don’t care how much time he spends watching television. As a TV critic, I am the last person to judge someone for spending too much quality time with their DVR.
The problem is not how much TV Mr. Trump watches. It’s the kind of TV he watches.
As Mr. Trump’s associates report and his Twitter feed confirms, his video diet of choice is cable news, the most agitating, psychically toxic programming you can immerse yourself in, even if you don’t have possession of the nuclear codes.
This is not to say cable news is bad journalism. There are talented people in the business doing great reporting. But it is to say that cable news — as a genre, a gestalt, an environment to spend hours a day in — is by nature agitating and provoking.
That’s the cable-news business model. Conflict means urgency, and urgency means viewers glued to the channel. So it seeks out arguments and pushes buttons. It is a machine designed to generate stress and negative emotion.
Mr. Trump does not exactly lack for that as it is. His entire career philosophy has been that fighting is humankind’s most productive state, that the fight-or-flight response is to be savored and cultivated.
So he seeks out more of it on cable, using it for affirmation and motivation, to pump himself up for battle. He stews in its acidic anger-juices, seething and tweeting and sending out more waves of hostility for cable news to reflect back.
Because this feedback cycle results in news everywhere, all of us end up trapped in the mind-set of an angry cable-news junkie, even if we’re not watching. It’s like secondhand smoke.
Some critics have suggested that Mr. Trump watch different programming — maybe some edifying scripted TV. His predecessor, Barack Obama, was a fan of “The Wire” and “Game of Thrones,” so we know the White House has the budget for HBO.
But honestly, I don’t see much evidence that Mr. Trump has the level of introspection to be changed by a work of fiction. That requires some ability to recognise that perspectives besides your own are valid and that you might have something to learn from them.
In 2002, the documentarian Errol Morris interviewed Mr. Trump about his favourite film, “Citizen Kane,” about a business mogul with political ambitions whose drive for power left him friendless and empty. Mr. Trump saw the source of the protagonist’s troubles differently. His advice to Charles Foster Kane: “Get yourself a different woman.”
So colour me sceptical that Mr. Trump might binge a season of “The West Wing” and become a believer in high-minded, reasoned debate. Art doesn’t work that way under the most hospitable circumstances. It’s not medicine or hypnosis.
That’s fine: TV doesn’t need to be a vehicle for self-improvement. Sometimes it can just be an escape. But Mr. Trump’s instinct is to use it as exactly the opposite, like a bull waving a red cape in front of itself.
I’d be happier if Mr. Trump would simply spend his morning and evening screen time with any kind of programming that wasn’t designed to make him angrier. A mindless sitcom. An old movie. (“Citizen Kane” is on Amazon!) A football game — no, that’ll just remind him of his N.F.L. feud — but some other sport. Anything to unwind, rather than wind up.
Much has been reported about the efforts of Mr. Trump’s chief of staff, John F. Kelly, to control the flow of information and visitors to the president. Maybe the most effective step Mr. Kelly could take would be to quietly get the White House’s TV provider to drop everything except the Golf Channel.
This article is from The New York Times

South China Sea: How 2017's forgotten flashpoint could flare again - CNN News

South China Sea: How 2017's forgotten flashpoint could flare again
CNN Digital Expansion Shoot, Joshua Berlinger
By Joshua Berlinger and Katie Hunt, CNN
Updated 0357 GMT (1157 HKT) December 26, 2017
Kristie Lu Stout South China Sea
South China Sea: A virtual explainer
Story highlights
China had a good year in the South China Sea, analysts told CNN
Critics argue the Trump administration has ignored the region
(CNN)In 2017, the South China Sea was the world's forgotten flashpoint.
Eclipsed by North Korea and overlooked by a Trump administration that has left many Asia positions unfilled, the lack of attention given to the disputed waters allowed China to press ahead with its military build-up on reclaimed land and work to placate the countries that contest its sweeping maritime claims.
"The water was beautiful for China in the South China Sea in 2017," said Michael Fuchs, a senior fellow at the Center for American Progress.
But that could change in 2018, if an over-confident Beijing overplays its hand, forcing Washington and its allies to react.
Back burner
Though most analysts agree the White House has put the issue on the back burner, there is disagreement as to why.
At the start of the year, it appeared that the Trump administration would take a more muscular approach to the South China Sea.
"Building islands and then putting military assets on those islands is akin to Russia's taking of Crimea. Its taking of territory that others lay claim to," Secretary of State Rex Tillerson said in his confirmation hearing in January.
"We're going to have to send China a clear signal that first, the island-building stops, and second, your access to those islands also not going to be allowed."
This satellite image shows construction on Fiery Cross, a reef occupied by China.
CSIS Asia Maritime Transparency Initiative/DigitalGlobe
But it was North Korea's nuclear program that emerged as the top priority for the Trump administration, which now identifies Pyongyang's weapons as a clear and present danger to the US homeland.
Trump and his Secretary of State have come under fire for failing to fill multiple diplomatic posts and the focus on North Korea may have cannibalized the State Department's resources on other issues in Asia.
"It's no secret that the Trump administration is still woefully understaffed when it comes to the Asia squad," said Gregory Poling, the director of the Asia Maritime Transparency Initiative (AMTI).
"It's no surprise that they can't focus on anything but North Korea. And occasionally they talk about trade deficits with China, but that's it."
Other critics say the President simply doesn't give the conflict the same weight as his predecessor did, though many note the Department of Defense has continued to bring the issue to the fore as best it can.
CSIS Asia Maritime Transparency Initiative/DigitalGlobe
Compared to North Korea, the South China Sea doesn't have the same immediate life-and-death consequences as nuclear-tipped ballistic missiles.
Instead, it requires the Trump administration to push back at Beijing's attempts to encroach on the sovereignty of its neighbors and trying to control trade routes, violations of the so called "rules-based order" that the United States has championed globally since the end of World War II.
"The South China Sea appeals somewhat less naturally to someone like President Trump because it's about abstract defenses of norms and systemic stability," said Euan Graham, the director of international security at Australia's Lowy Institute.
Lip service
Trump's administration gave the South China Sea a short mention on page 46 of its newly unveiled 68-page National Security Strategy.
The document said Beijing's "efforts to build and militarize outposts in the South China Sea endanger the free flow of trade, threaten the sovereignty of other nations, and undermine regional stability."
Analysts believe, for now at least, that mention was little more than lip service.
"The Chinese continue to pace with their long-term strategy to gain de facto control over the sea lanes in the South China Sea. And what changed is the United States stopped paying attention," said Fuchs, who served as the State Department's deputy assistant secretary of state for East Asian and Pacific affairs from 2013 until 2016.
The United States has continued to conduct freedom of navigation operations, which involve sailing ships through waters to challenge what Washington deems to be overzealous maritime claims. In these operations, US ships will sail very close to the islands China controls, often triggering heated warnings from Chinese coastal patrols.
But there is a sense of South China Sea fatigue, according to Poling.
"After three years of sensational photos splashed across every paper of Chinese island building, that somehow became the new normal," said Poling.
Diplomatic efforts
Philippines President Rodrigo Duterte's desire to cozy up to China, as well as a more inward-looking Indonesia and Malaysia, all helped China advance its interests in the region.
And diplomatic efforts to find a peaceful solution to the South China Sea did move forward.
China and the Association of Southeast Asian Nations (ASEAN) agreed to a framework for a Code of Conduct, a formalized process for dispute settlement.
But critics believe the watered-down document, which failed to mention island militarization and may not even be legally binding once finalized, were victories for Beijing. Vietnam was the only country to voice its opposition.
But without the continued strong backing of other ASEAN states and the US, Hanoi does not have the same support it enjoyed in the past.
"Vietnam is in a tough spot. I think they have red lines, and if the Chinese don't cross them they're willing to play nice right now," said Poling.
Military bases destroy reefs in S. China Sea 03:29
Hubris?
Experts believe this is all part of Beijing's strategy of patience in the South China Sea.
China's leaders are playing a long game, waiting for rivals to either slip up or lose interest while using its economic leverage to influence smaller states who claim a part of the disputed waters.
"Beijing's opinion has been for the last decade that it was never worth provoking an immediate crisis in the South China Sea, because sooner or later, the Americans would lose focus and that we (the US) just wouldn't be able to maintain high-level political concern about this from administration to administration. And it looks like they were right, at least right now," said Poling of AMTI.
But hubris could foil China's current advantage, Poling says, if China convinces themselves that they won't have problems with the other claimants in the region
"What seems likely to me is that China will eventually overplay its hand here, because in Beijing, the only concern seems to be with Washington," he said.
"I hear an awful lot of premature triumphalism in China that the region -- the Philippines and Vietnam and Singapore -- are all in the bag and if the Americans just got out of the way, the rest of Asia would kind of accede to Chinese hegemony."
On the horizon
Multiple analysts predict if Washington continues on its current path, Australia, India and Japan -- US treaty allies -- would get more involved in the South China Sea to ensure the sea lanes are open for trade.
Talks over the Code of Conduct are likely to continue. China could begin using its newly constructed military installations by deploying more aircraft, vessels and personnel.
"They didn't build all these hangers and airstrips so they can never use them," said Poling.
If things continue on their current trajectory, it's a boon for Beijing. But to say China has already won is misleading, according to Graham at the Lowy Institute.
"The fundamental metrics of American power, including the economic revival of the United States, are not to be underestimated," said Graham.
"The key question is, will that be translated into the political will to go and show leadership, especially on these issues that are not immediately sell-able to a skeptical public and Congress because they're more about abstracts and systemic order."