Information About China

SOCIAL ECONOMIC DIVISION ADMINISTRATIVE DIVISION GEOGRAPHICAL FEATURES NATURAL RESOURCES CLIMATE POPULATION, ETHNIC GROUPS POLITICAL SYSTEM ECONOMY How China solves nationwide Water Shortage Problem

On September 27, 1949, the First Plenary Session of the Chinese People's Political Consultative Conference (CPPCC) approved the proposal for using the red five-star flag as the national flag of the People's Republic of China (PRC). The red color of the flag symbolizes revolution and the yellow color of the stars the golden brilliant rays radiating from the vast red land. The design of four smaller stars surrounding a bigger one signifies the unity of the Chinese people under the leadership of the Communist Party of China  (CPC).

NATIONAL EMBLEM

On June 18, 1950, the Second Session of the First CPPCC National Committee adopted the design and illustration of the national emblem of the PRC. On September 27 that year, Chairman Mao Zedong ordered the promulgation of the national emblem. Composed of patterns of the national flag, the Tian'anmen Rostrum, a wheel gear and ears of wheat, it symbolizes the New-Democratic Revolution of the Chinese people since the May 4th Movement (1919) and the birth of New China under the people's democratic dictatorship led by the working class on the basis of the worker-peasant alliance

NATIONAL ANTHEM

On September 27, 1949, the First Plenary Session of the CPPCC adopted a resolution approving March of the Volunteers, written by Tian Han and composed by Nie Er, as the temporary national anthem of the PRC before the formal one was formulated. On December 4, 1982, a session of the National People's Congress adopted March of the Volunteers as formal national anthem. The song reflects the revolutionary tradition and the mentality of vigilance in times of peace of the Chinese people.

NATIONAL CAPITAL

On September 27, 1949, the First Plenary Session of the CPPCC unanimously adopted a resolution making Beiping, renamed Beijing as of the day, capital of the PRC.

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China-Hiking.com

Peaceful development core of foreign policy

www.chinaview.cn 2008-12-25 10:00:53

BEIJING, Dec. 25 -- China has undergone tremendous social, economic and political changes since late leader Deng Xiaoping launched the reform and opening up drive 30 years ago. One of the great results from such changes is the country's new foreign affairs strategy with full Chinese characteristics, especially its ideological foundation and basic principles.

China's top leaders in the post-Deng Xiaoping era have further enriched the ideology concerning world politics and the nation's foreign policies. Traditionally their ideology in this regard comprised three major elements: The vision and fundamental idea of international relations contained in Marxism, Leninism and Mao Zedong Thought; Chinese patriotism, which is also called Chinese contemporary radical nationalism; and realistic thinking in international relations and foreign policies, or the so-called realpolitik, which is by no means unique to the Chinese.

Call it "neo-internationalism" if you will, but the new element has been injected into the ideological system of China's top leaders since the early years of reform and opening. Its main characteristic lies in certain relatively fast-growing beliefs - as in multilateral cooperation, international systems and cross-national apolitical exchanges aimed at peace and development.

Ideas such as the "new outlook of security" and "philosophy of world harmony", to a considerable extent, can be seen as the manifestation of this "neo-internationalism". By the same token, the overall "intensity" of modern Chinese nationalism that our top leaders embrace has been dropping compared with the Mao Zedong era, though it is still absolutely necessary in matters concerning the nation's sovereignty and territorial integrity.

Their realist thinking has also been enriched with some new elements that are very beneficial to the world as well as to China: Their concept of "national interest" has become a hybrid with certain "international community-esque" traits. Or shall I say a considerable part of China's national interest is now believed to be fused with or mutually complementary to the common interests of the international community.

The fundamental principle of China's strategic thinking in foreign affairs has also changed since the start of reform and opening as compared with the Mao era. It can be summarized in just two words - peaceful development.

The strategic benefit of peaceful development is apparent. It is overwhelmingly dependent on peaceful and non-military sources of power and projection of influence. It is by nature non-violent and non-invasive, gradual and accumulative, far-reaching and pervasive, all-win and mutually beneficial, and, relatively speaking, least likely to evoke strong resistance while its result is most acceptable. That makes it effective and worthwhile at the same time.

Besides, while most of the basic nature of international politics is changing, peaceful development enjoys a rather solid foundation, because war as an effective means to serve national interest has been losing value. While the daily priority in international relations has been shifting from territorial and military security to economic development and soft power, a country's economic, cultural, diplomatic and moral influence has been gaining importance over military power; and the interdependence between national economies in today's world has been gaining depth as well as persuasion. Amid such changes, peaceful development suits the basic trend of world politics and has most of the fundamentals that guarantee success.

Of course, world politics has not lost all the basic characteristics of the past. Power politics remains a major dimension of world politics, and so do the core-periphery relationship in the political-economic sense of the term and the profound inherent contradictions of the global capitalist system. Territorial and military security is still considered very significant, while advanced military forces and a strong will to defend oneself in the face of security threats such as superior military power are absolutely needed.

And, faced with globalization, developed major powers and cross-national capital, developing nations, in particular, still find themselves ridden with vulnerabilities. That is why the Chinese government and people have not forgotten or taken lightly this reality since the reform and opening up began. And we understand it should never be handled in a crude and unsophisticated manner.

The essence of reform and opening up, or the prime experience from it, is perhaps advancing with the times, which can also be described as adapting oneself to the changing times and the changing world through creative adjustment.

Creative adaptation is the most important of all strategic capabilities for both internal and external affairs. For today's China, a top priority is to discover and identify the critical bottlenecks that have accompanied or intertwined with great achievements it has made. They affect the inner balance of the economy, social justice and protection of the environment. There are also the changes in, or changing trend of, world politics, economy and culture, which are characterized more prominently than anything else by the current financial crisis in the US and Europe and the recession in the US, Europe and Japan.

China must now keep in mind more than ever the big picture of world politics and the dynamics of its trend; keep in mind the importance of adapting to such dynamics through creative adjustment; and maintain strategic capabilities such as the courage to explore and experiment, and readiness for critical observation and adjustment.

China is making great efforts to change its economic development pattern according to the theory of Scientific Outlook on Development in order to ensure that the country's development is truly healthy and sustainable. And this will remain the most important task of the nation in the years to come.

As for its foreign strategy, China needs to seriously think about and study the following major new issues: the basic trend and changes of the contemporary world; the changing top-level agenda of world politics; The changes in the distribution in power around the world and the challenges and opportunities they bring to China against the backdrop of a global financial crisis and economic downturn; China's vulnerability in multiple aspects of world politics and economy; and the creation and optimization of its foreign economic strategy and "political culture" strategy.

The author is a professor at the Institute of International Relations of Renmin University

(Source: China Daily)

http://news.xinhuanet.com/english/2008-12/25/content_10556753.htm

White paper: China would never seek hegemony

11:25, January 20, 2009

China would never seek hegemony or engage in military expansion now or in the future, no matter how developed it becomes, says a white paper on China's National Defense in 2008 issued Tuesday.

It is China's sixth white paper on National Defense since the first one was issued by the Information Office of the State Council in 1998.

It says China advocates to settle international disputes by peaceful means, and opposes aggression, expansion and the enlargement of military alliances.

With the advent of the new century, the world is undergoing tremendous changes and adjustments, says the white paper, adding new security threats keep emerging.

Facing unprecedented opportunities and challenges, China would stick to the road of peaceful development, pursue the opening-up strategy of mutual benefit, and promote the building of a harmonious world with enduring peace and common prosperity, it says.

With regard to China's security situation, the white paper says China's overall national strength has increased substantially, and its capability for safeguarding national security has been further enhanced. The country's security situation has improved steadily.

However, China is still confronted with long-term, complicated, and diverse security threats and challenges, it says. The issues of existence and development security, traditional and non-traditional security threats, as well as domestic and international security are interwoven and interactive.

Concerning world security situation, the white paper says the risk of worldwide, all-out and large-scale wars keeps low for a relatively long period of time, as the common interests of countries in the security field have increased.

Major powers are stepping up their efforts to cooperate with each other and draw on each other's strengths, while groups of new emerging developing powers are arising. Therefore, a profound readjustment is brewing in the international system.

Comparing the security strategies of major powers and developing countries, it says some major powers are realigning their security and military strategies, increasing their defense investment, speeding up the transformation of armed forces and developing advanced military technology, weapons and equipment. Some developing countries are also actively seeking to acquire advanced weapons and equipment to increase their military power.

"All countries are attaching more importance to supporting diplomatic struggles with military means," the White Paper says. Thus arms races in some regions are heating up, posing grave challenges to the international arms control and non-proliferation regime.

According to the white paper, the Asia-Pacific security situation is stable on the whole, while some factors of uncertainty exist in security.

Analyzing the uncertain factors, it says political turbulence persists in some countries undergoing economic and social transition. Ethnic and religious discords, and conflicting claims over territorial and maritime rights and interests remain serious. There are also complicated regional hot spots.

Meanwhile, the United States has increased its strategic attention to and input in the Asia-Pacific region, further consolidating its military alliances and enhancing its military capabilities.

Terrorist, separatist and extremist forces are running rampant, the White Paper says, adding non-traditional security issues such as serious natural disasters crop up frequently.

It calls on countries and regions to enhance political trust, enhance multilateral security cooperation and improve their coordinated capability for coping with regional security threats.

Source: Xinhua

http://english.peopledaily.com.cn/90001/90776/90785/6577524.html

Article below is written

by a famous USA's China Expert

What to Do with China?

USA <<Campaign For Liberty>> click here

By Doug Bandow

Published 01/26/10

The U.S. is the world's dominant power. Nevertheless, some Americans see China as a serious security threat. They want to use Beijing as a justification for raising the military budget even further.

It's a foolish policy that could end up getting the U.S. into an unnecessary war.

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Today, the Chinese people increasingly enjoy the sort of personal autonomy that Americans have come to expect. The economy is increasingly private; the independent sector is expanding. Even religious liberty is advancing, though inconsistently and slowly. Decisions over everything from career to marriage have gone from political acts to personal choice. The dramatic changes in the PRC and the country's great potential become particularly evident to Westerners when they visit China. Go to Beijing or Shanghai, which I've visited several times, and you'd think you were in any major American or European city. It's not just the tall buildings, but the active, busy, and energetic people. I recently returned from a conference in Shenyang, a large city in Manchuria, in China's northeast. Once viewed as part of the PRC's rustbelt, Shenyang appears to be participating in China's rapid economic growth. But more impressive to me is the relatively free personal life that I observed. In traditional communist systems politics was never far behind. From public symbols to personal relations, politics is everything. That is to be expected in societies where expressing the wrong sentiment about the wrong idea or politician can result in imprisonment or death.

In China there's little public evidence of communism. There's no dictatorial personality cult. There's no sense that someone is listening in to your conversations. Business and travel are generally free. No one demands your papers or asks where you are going -- even foreigners. Computers and cell phones are widely available; car ownership is increasingly common. People engage in a cat and mouse game with the censorship authorities over internet access. Personal interaction also is relatively uninhibited. People are friendly and open. They want a better world for their families just like we do for ours.

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The most foolish policy would be to treat the PRC as an enemy and the Chinese as enemies. That would guarantee precisely the result which Washington wants to avoid, whether the PRC remains authoritarian or becomes democratic. It is time for the U.S. to become a normal country again. Washington's duty is to protect Americans, not order around everyone else on earth. If U.S. policymakers don't recognize reality on their own, the Chinese are the first of many other peoples likely to force Americans to learn this lesson.

Doug Bandow is the Robert A. Taft Fellow at the American Conservative Defense Alliance (www.acdalliance.org) and a Senior Fellow at the Cato Institute. A former Special Assistant to President Ronald Reagan, he is the author of Foreign Follies: America's New Global Empire

http://www.campaignforliberty.com/article.php?view=558

To view this entire article click here

China promises: "PEACE, I'm lovin' it!"

Provoked China will NOT afraid of War.

Well Proven by Korean War 1950-1953.

Can this Unnecessary War be avoided?

A New Social Economic System Challenging Western Democracy

John Naisbitt

John Naisbitt, the famous TRENDS MASTER, has recently published a new book "China's Megatrends". His international bestseller Megatrends sold more than 9 million copies and was on the New York Times bestsellerlist for more than two years, mostly as number one. There are two reasons why this book is very importatnt.

The first reason: With an inside out approach, "China's Megatrends"explains what enabled China to change in only 30 years from a nation of poverty and backwardness to become the third largest economy of the world, beat Germany as export champion, and challenge America as the most competitive. China has reinvented itself as if it were a huge enterprise, developing a company culture, which fits the demands of the enterprise and its people on the path to modernity and wealth.

The second reason: "What we found was of much greater dimension and importance than we had expected. China is creating an entirely new social and economic system. In the next decades China will not only change the conditions of global economics, the Chinese model challenges the Western democracy as the only governing model capable of reducing poverty and providing the social and economic rights required." said John Naibitt.

Most of those who look at China with interest, fear, reprobation, courtesy, hope or simple curiosity, see the future and sustainability of China as adapting to the Western economic and value system. But what is the scenario from a Chinese point of view?

With an inside out approach, explains what enabled China to change in only 30 years from a nation of poverty and backwardness to become the third largest economy of the world, beat Germany as export champion, and challenge America as the most competitive. China has reinvented itself as if it were a huge enterprise, developing a company culture which fits the demands of the enterprise and its people on the path to modernity and wealth.

Looking for patterns that form the picture of the new China, John and Doris Naisbitt and the 28 staff members of the Naisbitt China Institute in Tianjin found what was of much greater dimension and importance than the economic rise of China: China is creating an entirely new social and economic system. It is creating a political counter model to Western modern democracy fitting to Chinese history and society just as America created a model fitting to its history, society and values more than 200 years ago.

Economically and politically China has left the path of imitation, determined to become the innovation country of the world. In the next decades China will not only change the global economy, it will challenge Western democracy with its own model.

http://www.naisbitt.com/chinas-megatrends.html

Southeast Asian Free Trade area

encompasses 1.9 billion people in 11 countries

will help China's RMB to become a Hard Currency

China-ASEAN pact offers more than win-win

Hong Kong: Asia Times online

By Brantly Womack

Jan 7, 2010

The formal inauguration of the ASEAN-China Free Trade Area (ACFTA) on January 1 marks the culmination of arguably the most successful big-power diplomacy of the post-Cold War era.

Since 1991, China's relations with Southeast Asia have moved from an alliance of convenience with the Association of Southeast Asian Nations (ASEAN) against Vietnam, Cambodia and Laos to close and multi-dimensional interaction with an expanded 10-member ASEAN and with each of the association's member states (in addition to the above-mentioned trio, the group now includes Myanmar alongside founding members Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand).

A similar pattern of China's successful engagement with neighbors can be seen in the Shanghai Cooperation Organization with Russia and Central Asia and, less successfully, in the six-party talks in northeast Asia over North Korea's nuclear program. With the exception of China's trans-Himalayan border, promotion of regional multilateral institutions has progressed hand-in-hand with strengthening bilateral relationships.

The formula for China's successful good neighbor policy has many labels, but the simplest is "win-win". Every country in Southeast Asia has benefited from broader and deeper relations with China, and ASEAN as a regional organization has been strengthened by China's involvement.

Trade, investment and tourism have blossomed. China's willingness to sign the Framework Agreement on Comprehensive Economic Cooperation in 2002 and the Treaty of Amity and Cooperation in 2003 encouraged other nations to follow suit. Despite global economic uncertainty displacing US-centered globalization, China and ASEAN are off on the right foot in a new era. But the path ahead is not simply a yellow brick road of win-win policies.

Why not? What could possibly be wrong with win-win? A cynical power theorist would say that if one side wins more than the other, the one who wins less may end up being dominated by the one who wins more. But this hardly applies to Southeast Asia. No individual state in Southeast Asia has ever considered itself the equal of China. Moreover, China's military budget surpassed the aggregate military budgets of Southeast Asia in the 1990s. And ASEAN is no North Atlantic Treaty Organization. Rather than being a security umbrella for coordinating action in crisis situations, ASEAN is more of a consensual parasol that works best in sunny weather. If losing parity with China were the tipping point for subjugation, Southeast Asia lost long ago.

Win-win is too simple a formula precisely because of the disparities between China and Southeast Asia. Individually and collectively, Southeast Asian nations are more exposed in their relationship with China than vice versa. According to estimates of the Central Intelligence Agency in the United States, all of ASEAN together in 2008 had only one-third of China's gross domestic product (GDP) in terms of purchasing power parity (PPP). The economy of Shanghai is one-and-a-half times that of Singapore. Guangdong's GDP exceeds that of Indonesia, while the combined economies of Guangxi and Yunnan, middling provinces by Chinese standards, exceed those of their neighbors Vietnam, Laos and Myanmar.

Therefore, Southeast Asia is necessarily more alert to the risks as well as the opportunities of its relationship to China. Proportionally, it has more at stake, and the sense of risk as well as opportunity is all the more vivid to individual states in Southeast Asia.

Southeast Asia's dilemmas in dealing with China can be illustrated by the recent controversy in Vietnam over Chinese investments in bauxite mining and processing. It is certainly a win-win situation. The Chinese company involved, Chinalco, is a major global investor in bauxite mining and alumina processing. Bauxite occurs in limestone areas with poor agricultural prospects. Vietnam has the world's third-largest bauxite reserves, and hopes to attract US$15 billion in investment in this area by 2025. It needs the investment in the current global economic climate, and it also needs to offset its severe balance of payments deficit with China.

But the Vietnamese people have been very concerned about Chinese bauxite development. They are concerned about the ecological effects of mining; about the major stake that a powerful Chinese company would have in central Vietnam; and about losing jobs to imported Chinese workers. They do not want to have the future of a major national resource in the hands of an outside power. Win-win is not enough. Vietnam wants reassurance about its long-term interests because it is dealing with a much larger neighbor.

Similarly, the proposal of two corridors, rail and highway, from Nanning, the capital of the coastal Guangxi autonomous region, bordering Vietnam, to Singapore would undoubtedly benefit Vietnam. The corridors would run most of the length of Vietnam, thereby improving domestic transportation as well as connections to China and to the rest of mainland Southeast Asia. However, given current patterns of trade, far more goods will be coming down the corridors from China than going up from Vietnam, and much of Vietnam's exports would continue to be raw materials and resources.

This is still win-win for China's producers and Vietnam's consumers, but consumers also need to produce, and Vietnam's economy must continue to modernize and become more sophisticated. It is therefore hardly a surprise that on such win-win projects China pushes forward while Vietnam hesitates. A change at the periphery of China's economy could affect the heartland of Vietnam's.

Vietnam is the most sensitive country in Southeast Asia to China, but the entire region is aware that its interests and China's interests are not identical, even if many are compatible. The problem of asymmetric relationships cannot be solved, it can only be managed.

Take for example China's single most successful gesture in its regional relations. In 1997, China held the value of the yuan steady against the dollar while the Southeast Asian currencies were falling. Its neighbors were impressed that China could succeed where they failed, and they were grateful that China prevented a race to the bottom in currency devaluations.

Since August 2008, China has pursued exactly the same policy, but its effects on Southeast Asia are the opposite of a decade earlier. Now the yuan's peg to a declining US dollar is forcing neighbors to compress their currency values in order to maintain market share. China's neighbors wonder how long currency compression will last and what will happen when the yuan finally does revalue. There is little reassurance from China, and no claim that it is helping the neighborhood.

The tension between China and Southeast Asian states over conflicting claims in the South China Sea has become the symbol of the region's collective uneasiness concerning China's commitment to cooperation. The "Declaration on the Conduct of Parties in the South China Sea" signed in 2002 was a watershed event in regional confidence-building, but there has been little further progress.

Moreover, China's expansion of naval facilities on Hainan raises concerns throughout the region regarding China's military transparency and intentions. In fact, however, multilateral cooperation is the only feasible way for any country, China included, to profit from the disputed area. It would be difficult to extract oil at gunpoint, and the costs to China's regional and even global relations would outweigh any possible gains. The only winning path in the South China is one of more serious cooperation and reassurance.

While win-win is the slogan of the day, deeper principles have lain behind China's successes of the past two decades. China's willingness to work with multilateral regional institutions has been a big part of the winning formula. Participation in ASEAN's general relationship with China buffers the exposure of each individual state. This benefits China as well as ASEAN.

Vulnerability causes smaller states to hesitate in asymmetric relationships, while collective agreements reduce individual vulnerability. Within each bilateral relationship, sensitivity to the dilemmas faced by the smaller side even in a win-win situation is essential for continued development.

For example, not only does Vietnam have reason to expand its merchandise market in China, but China has an interest in Vietnam's marketing success. Currently, Vietnam's weak sales to China are a major trade bottleneck; a more balanced relationship would enable trade volume to expand on a solid basis.

Finally and most importantly, China's traditional respect for the sovereignty and autonomy of all states becomes ever more important with the growth of China's relative power. As Sophie Richardson's recent book on China-Cambodia relations demonstrates, the "Five Principles of Peaceful Coexistence" have been an especially important foundation of China's relations with smaller states. [1] The time has come to multilateralize the five principles into a general respect for regional consensus and international agreements and institutions.

In the new era of global economic uncertainty, the risks that smaller countries face are more vivid than their opportunities. The special task faced by regional powers, whether China, or South Africa, or Brazil, or India, or Russia, is to earn regional leadership by reassuring neighbors that their interests and voices will be respected.

Moreover, they need to take the lead in regional projects that address common problems. But to do so effectively they must act in a spirit of multilateral respect. For the past two decades, China has led the cohort of regional powers in developing cooperative relationships with neighbors, and one of the fruits of success is the successful beginning of ACFTA. But it is only a successful beginning, it is not the end of the road.

Brantly Womack is the Cumming Memorial Professor of Foreign Affairs at the University of Virginia. His recent books include China and Vietnam: The Politics of Asymmetry (Cambridge University Press, 2006) and China among Unequals: Asymmetric Foreign Relations in Asia (World Scientific, forthcoming).

http://www.atimes.com/atimes/China_Business/LA07Cb01.html

Asia Free-Trade Zone Raises Hopes, and Some Fears About China

USA <<The New York Times>>

By LIZ GOOCH

Published: December 31, 2009

KUALA LUMPUR, Malaysia - When the clock struck midnight on New Year's Eve, China and 10 Southeast Asian nations ushered in the world's third-largest free-trade area. While many industries are eager for tariffs to fall on things as diverse as textiles, rubber, vegetable oils and steel, a few are nervously waiting to see whether the agreement will mean boom or bust for their businesses.

New tires at a storage warehouse in Hefei, China. The new Asian free-trade area encompasses 1.9 billion people in 11 countries, including 1.3 billion in China.

Trade between China and the 10 countries that make up the Association of Southeast Asian Nations , also known as Asean, has soared in recent years, to $192.5 billion in 2008, from $59.6 billion in 2003. The new free-trade zone, which will remove tariffs on 90 percent of traded goods, is expected to increase that commerce still more.

The zone ranks behind only the European Economic Area and the North American Free Trade Area in volume. It encompasses 1.9 billion people. The free-trade area is expected to help Asean countries increase exports, particularly those with commodities that resource-hungry China desperately wants.

The China-Asean free trade area has faced less vocal opposition than the European and North American zones, perhaps because tariffs were already low and because it was unlikely to alter commerce patterns radically, analysts say.

However, some manufacturers in Southeast Asia are concerned that cheap Chinese goods may flood their markets, once import taxes are removed, making it more difficult for them to retain or increase local market shares. Indonesia is so worried that it plans to ask for a delay in removing tariffs from some items like steel products, textiles, petrochemicals and electronics.

"Not everyone in Asean sees this F.T.A. as a plus," said Sothirak Pou, a visiting senior research fellow at the Institute of Southeast Asian Studies in Singapore.

Asean and China have gradually reduced many tariffs. However, under the free-trade agreement - which was signed in 2002 - China, Indonesia, Thailand, the Philippines, Malaysia, Singapore and Brunei will have to remove almost all tariffs in 2010.

Asean's newest members - Cambodia, Laos, Vietnam and Myanmar - will gradually reduce tariffs in coming years and must eliminate them entirely by 2015.

Most of the goods that will become tariff-free in January - including manufactured items - are currently subject to import taxes of about 5 percent. Some agricultural products and parts for motor vehicles and heavy machinery will still face tariffs in 2010, but those will gradually be phased out.

In recent years, China has overtaken the United States to become Asean's third-largest trading partner after Japan and the European Union. The overall trade balance has shifted slightly in China's favor, although there are significant differences among Southeast Asian countries' trade balances, said Thomas Kaegi, head of macroeconomic research for the Asia-Pacific region at UBS Wealth Management.

Singapore, Malaysia and Thailand have only small trade deficits with China, while Vietnam's has grown substantially. In 2008, Vietnam exported items worth $4.5 billion to China but imported about $15.7 billion worth of Chinese goods.

In Indonesia, the textile and steel industries are particularly nervous about lifting the tariffs, prompting the government to say that it would ask for a delay on some provisions. No time frame for submitting the request was given, but the Asean secretariat said it had not yet received an official request.

While competing with more Chinese imports may pose new challenges for Asean manufacturers, analysts say increasing their access to the 1.3 billion people of China could produce significant benefits.

Rodolfo C. Severino, who was secretary general of Asean from 1998 to 2002, identified Malaysia - which already exports palm oil, rubber and natural gas to China - as one country that might benefit the most from the removal of tariffs.

But nations like Vietnam that focus on the production of cheap consumer goods are more likely to be hurt, said Mr. Severino, head of the Asean Studies Center at the Institute of Southeast Asian Studies in Singapore.

Those countries may need to look for new export products and identify new niche markets, he said: "This is the nature of competition."

Song Hong, an economist, expects China to import more agricultural goods, like tropical fruit, from countries like Thailand, Malaysia and Vietnam when the trade area takes effect. That could hurt Chinese farmers in southern provinces like Guangxi and Yunnan, said Mr. Song, director of the trade research division at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences in Beijing.

Mr. Sothirak, who was Cambodia's minister of industry, mines and energy from 1993 to 1998, said the removal of tariffs might help increase Cambodia's agricultural exports to China. Cambodia needs to diversify its export markets because its exports to the United States and Europe have declined, he said.

While he does not hold much hope that Cambodian textile exports would be able to compete with China's highly developed garment industry, he said he believed the free trade area might entice more Chinese garment factories to set up operations in Cambodia, where production costs and labor were cheaper.

Pushpanathan Sundram, deputy secretary general of Asean for Asean Economic Community, acknowledged that there would be "some costs involved" for some countries when the free trade area took effect, but he said he believed China and Asean would "mutually benefit."

Despite the expectations for increasing trade, Mr. Severino predicted that the introduction of the trade zone would not be a "breakthrough event" setting off a dramatic surge in commerce come January.

"There are many factors that traders and investors consider, and the trend has been going this way anyway," he said. "What this does is to send out good signals and show the determination of governments to make things easier."

A version of this article appeared in print on January 1, 2010, on page B3 of the New York edition.

http://www.nytimes.com/2010/01/01/business/global/01trade.html?scp=1&sq=Free%20Trade%20region%20Asia&st=cse

China showcasing its softer side(1)

Growing role in U.N. peacekeeping signals desire to project image of benign power

By Andrew Higgins

USA Washington Post Staff Writer

Wednesday, December 2, 2009

CHANGPING, CHINA -- After bulking up its armed forces with new missiles and other advanced weaponry, China recently invited U.S. and other foreign military officials to inspect a less bellicose side of the People's Liberation Army: a fleet of bulldozers.

Through clouds of smoke generated to simulate the look of a war zone, a PLA engineering brigade showed off its earthmovers, mine-clearing gear and other nonlethal hardware at a base north of Beijing.

The display, put on shortly after President Obama left Beijing last month, represented what China sees as an important part of its answer to a question that shadowed Obama's eight-day Asia tour: How will China use the formidable power generated by its relentless economic growth?

The engineering unit that staged the show is spearheading China's growing involvement in international peacekeeping, a cause that Beijing for decades denounced as a violation of its stated commitment to noninterference in the affairs of other nations but that it now embraces.

Today, about 2,150 Chinese military and police personnel are deployed in support of U.N. missions. They serve around the world, from Haiti to Sudan.

A 'peaceful rise'

Though the peacekeepers represent only a fraction of the PLA's more than 2 million soldiers -- and account for a minuscule part of the Chinese military budget -- China's enthusiasm for peacekeeping signals a clear desire to project an image as a responsible and peaceable great power. And even if, as some experts say, China's total military spending is perhaps double the stated amount, it is still less than a third of the United States' basic military budget, which excludes spending toward the wars in Iraq and Afghanistan.

"We promise that we will fulfill our duties to safeguard peace," Senior Col. Yi Changhe, an engineering brigade commander, told the visiting foreign defense officials.

When Germany and later Japan emerged as military powers on the back of surging economies more than a century ago, a calamitous reordering of the world order followed. China, pursuing what it calls a "peaceful rise," points to the PLA's peacekeeping activities as evidence of its benign intentions.

But while increasingly willing to let its soldiers don the blue helmets worn by U.N. peacekeepers, China has shown little enthusiasm for the U.N.-sanctioned mission that currently matters most to Washington -- the war in Afghanistan.

Wariness toward NATO

When the United States wanted to fly a group of Mongolian trainers to Afghanistan in October, China objected to letting the aircraft go over its territory. Beijing eventually gave the flight a green light -- but only after ammunition was taken off the plane, according to a U.S. official familiar with the matter.

Though authorized by the United Nations, the Afghanistan mission is led by NATO, an organization China views with deep wariness. Beijing blames NATO for the 1999 bombing of the Chinese Embassy in Belgrade during the Kosovo war.

China's shock at NATO's military campaign in the former Yugoslavia helped prod Beijing into playing a bigger role in U.N. peacekeeping, said Bates Gill, director of the Stockholm International Peace Research Institute and co-author of a recent report on China's peacekeeping activities. China, he said, is "highly unlikely" to send soldiers to Afghanistan to help "what is essentially a NATO operation, albeit with a United Nations blessing."

Beijing recently enrolled a small group of soldiers from Afghanistan and Iraq in a mine-clearing course at the PLA's University of Science and Technology in Nanjing and has expressed interest in helping to train Afghan police. But it has balked at providing direct support for NATO's campaign against the Taliban. China has focused its resources on supporting operations run directly by the United Nations. It has more troops and police deployed on U.N. missions than the United States, Russia and Britain combined. Of the five permanent members of the U.N. Security Council, only France makes anywhere near as big a contribution to U.N. peacekeeping.

Washington has generally welcomed China's increasing readiness to join U.N. operations, though a Pentagon report this year noted that the capabilities that allow China to participate in distant peacekeeping and humanitarian missions could also "allow China to project power to ensure access to resources or enforce claims to disputed territories."

Obama, during his visit to Beijing, described greater international engagement by China as a necessary and welcome by-product of its economic strength. "A growing economy is joined by growing responsibilities," he said after talks with Chinese President Hu Jintao.

Presence in Sudan

China has moved far from what, under Mao Zedong, was a policy of steadfast opposition to military interventions by foreign powers. In the 1950s, China actively resisted U.N.-backed military missions, most notably during the Korean War, when its soldiers battled U.S. and other foreign troops fighting under the U.N. flag in support of South Korea.

Chinese troops serve in 10 countries, from the Caribbean to Southeast Asia, but they are most active in Africa, where China has ramped up its diplomatic and economic presence as it seeks oil and other resources to fuel its economy. They focus on providing engineering, medical and logistical help. A top U.N. official who visited the Chinese capital recently said Beijing is considering sending combats troops overseas for the first time.

Chinese personnel have a reputation for tight discipline and have not been tarnished by the sex and corruption scandals that have afflicted peacekeepers from some other nations. Critics, however, note that the largest number of Chinese peacekeepers -- nearly 800 military and police personnel-- are stationed in Sudan, which provides substantial amounts of oil to China and whose government Beijing has strongly supported despite widespread outrage over the killings in the western region of Darfur.

Speaking after a conference on peacekeeping last month in Beijing, Alain Le Roy, the U.N. undersecretary for peacekeeping operations, called Chinese troops "very professional" and said the United Nations has "no concerns" about their role in Sudan. Beijing's close diplomatic ties to countries such as Sudan, he said, give it leverage that "we will try to make the best use of."

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/01/AR2009120104060.html?sub=AR

During Obama's China Visit

China officially rejected G2 idea

'G2' refers to 'China and USA'

China realizes herself a poor country

China accepts as a developing country

Yes, China Has Fully Arrived As A Superpower(2)

Three trends for 2010 prove it.

Printed by USA Forbes Magazine

Shaun Rein, 12.15.09, 04:22 PM EST

A remarkable 44% of Americans believe China is the world's leading economic power and only 27% think the U.S. is, according to a recent survey by the Pew Center. James Fallows, the Atlantic Monthly journalist, thinks that is proof that Americans have lost their minds. He argues that China can't be the world's leading economic power. Too many of its people live without indoor plumbing, no mainland science researcher has won a Nobel Prize and the country has no global brands. How can a place like that be an economic superpower?

The normally adroit Fallows surprisingly misses the real point. China already is a superpower in many regards. Despite its poverty, no matter what industry you're in or where in the world you operate, you can no longer ignore China's economic might. That is power.

Here are three trends to look for in 2010 that demonstrate China's superpower status:

First, China is wielding national influence in places it never affected before. Over the last several decades it provided an ideological counterpoint to the United States, doing business in its push for oil with unsavory regimes like Iran and Sudan that democracies traditionally wouldn't work with. Now China is gaining influence with America's closest allies, too. During the financial crisis it doled out billions in contracts in Great Britain and France. This year it surpassed the U.S. to become the largest trading partner of both Japan and Brazil. It conducts more than $100 billion a year in trade with both the Middle East and Africa. In Africa it is laying down highways and other infrastructure projects. Already 750,000 Chinese workers have moved there.

Premier Wen Jiabao and the World Bank are even discussing ways to move textile factories from southern China to Africa. China's factories just might lift up Africa as no Western aid money has ever been able to do.

Look for Chinese companies to buy not just access to commodities but also Western brands, like Volvo and Hummer. Building brands takes decades. That's why so few Chinese brands have emerged globally. Chinese firms have traditionally focused on competing on price, but that's changing fast as they learn about marketing. Aggressive, impatient Chinese businesses don't want to take decades to build brands the way Toyota and Sony did, so they're looking to buy them from the West instead.

The second trend that shows that China is an established superpower, not just a rising one, is its emergence as a hotbed of innovation. Many analysts believe that Chinese are good at copying but not at innovating. That's just not true anymore.

The country has become the main recipient of venture capital money in clean technology. The government is trying to address soaring health care costs by reducing pollution and is actively encouraging foreign investment to do so, as I wrote in "China Is Pulling Ahead On The Environment." It is spending $9 billion a month on clean energy research, and within five years it will become the world's largest producer of solar and wind energy. Most rural homes already heat water using solar panels on their roofs, and China is now exporting its wind power technology to the U.S. Its technology is being used to build a 36,000-acre wind farm in Texas.

At the same time, Chinese in the U.S. have been increasingly moving back to China, driven by the bad economy and visa hassles that arose from Bush administration policies. More than 1.5 million Chinese have studied abroad. Those who went to the U.S. in the 1980s and mid-1990s tended to stay, and they helped drive Silicon Valley's growth. Now most are moving back to China, and many are taking their companies public on NASDAQ. Robin Li, the founder of Baidu, and James Jianzhang Liang and Neil Shen, the co-founders of Ctrip, which is listed on NASDAQ, all studied abroad before returning to China.

The third trend: Not only is China becoming ever more powerful economically; it is also starting to exert its political power more responsibly. Although it has been a bit combative on climate and carbon emissions at the Copenhagen conference, it has taken a leading role among the G-20 group of nations in helping push for effective responses to the world financial crisis. Partly because China is crucial to the world economy, G-20 is formally replacing G-8 as the main economic meeting of wealthy nations. Also China has become the key broker with North Korea in attempts to make that country less belligerent, and it will bring greater influence to bear in political discussions in the years ahead.

China is certainly not altogether as wealthy as the U.S. or Japan, as Fallows correctly observes. But it is emerging confident and relatively unscathed from the financial crisis. Some 80% of Chinese told us they were optimistic about their futures. At the same time, the unemployment rate in the U.S. is still far too high, and Japan has not only one of the world's highest per capita gross domestic products but also one of the highest suicide rates, with more than 30,000 citizens killing themselves in each of the past 10 years. The traditional powers aren't the dominant forces they once were, economically or otherwise.

People have been talking for years about China as an emerging global power. The reality is that in many ways it is now fully emerged. Growing economic strength begets power.

Shaun Rein is the founder and managing director of the China Market Research Group, a strategic market intelligence firm. He writes for Forbes on leadership, marketing and China.

http://www.forbes.com/2009/12/15/china-superpower-status-leadership-citizenship-trends.html

Unlike the only War-Mongrel Superpower

China definitely NOT interested to RULE the World.

Poor China cannot afford being WORLD POLICE.

China truly believes in PEACE and Development.

China calls for JUSTICE among all nations on Earth,

especially during Copenhagen Climate Summit.

Copenhagen climate deal shows new world order may be led by U.S., China(3)

Printed by USA 'The Washington Post'

By Anthony Faiola, Juliet Eilperin and John Pomfret

Sunday, December 20, 2009

President Obama and other leaders meet on the last day of the U.N. climate conference at the Bella Center in Copenhagen. Obama and Chinese Premier Wen Jiabao played key roles in hammering out a pact, which leaders of many nations criticized as not going far enough. (Susan Walsh/associated Press)

COPENHAGEN -- If the talks that resulted in an imperfect deal to combat global warming provided anything, it was a glimpse into a new world order in which international diplomacy will increasingly be shaped by the United States and emerging powers, most notably China.

Friday's agreement, sources involved in the talks said, boiled down to President Obama and Chinese Premier Wen Jiabao personally hammering out a pact both could live with, even if many other leaders could not. Wen even squelched his own negotiator's protests.

What Obama heralded as a "breakthrough" -- after getting India and other rising powers to sign on -- was decried by some nations as too little, too late. The leaders of Europe, Japan and other countries at the summit were largely left to rubber-stamp the deal. The Swedish prime minister's office dubbed it "a disaster."

Ever since the concept of a G2 was proposed this year by former U.S. national security adviser Zbigniew Brzezinski, the idea that the United States and China together are going to solve all the world's problems has been pooh-poohed by both American and Chinese officials. China hated the notion because it put too much responsibility on a country that has done very well rising in the shadows. Many U.S. officials opposed the idea on the grounds that the best way to influence China was through multinational partnerships.

So, more than anything else, critics said, Friday's climate agreement reflected the domestic political realities in Washington and Beijing. Both nations, the two biggest emitters of greenhouse gases, remain more cautious than, say, the governments of Europe about establishing a strict set of international rules to combat global warming. Not coincidentally, the agreement allows nations to set their own emission reduction targets and provides no deadline for signing a binding international accord.

A shifting relationship

As such, the deal may portend how issues from world trade to nuclear proliferation will be negotiated in the years ahead, with China leading a caucus of rising powers on one side and the United States on the other.

"The mark is being stamped on a new political world," said Duncan Marsh, who directs international climate policy for the Nature Conservancy. Said Jake Schmidt, international climate policy director for the Natural Resources Defense Fund: "Coming into this conference, it was about 193 countries, and coming out of it, it clearly came down to a conversation between the leaders of those two superpowers."

Orville Schell, a longtime China watcher who is director of the Center on U.S.-China Relations at the Asia Society, said the erratic dance between China and the United States is another example of how the bilateral relationship is at a tipping point. China is becoming a major player, albeit reluctantly; the United States, with similar unease, is making room for China at the table of world leaders.

"We're not exactly partners, but we're much more equals," Schell said. "The Chinese miss the idea that there's some grander, stronger authority. They are not used to this role of actually helping to fashion and form things."

Indeed, the events at the summit showed how the U.S.-China relationship remains stormy and complex, constructive and adversarial. At one point in Friday's tense talks, for instance, China's top climate change negotiator exploded in rage at U.S. pressure after Obama walked in on the Chinese while they were holding talks with the Indians, South Africans and Brazilians. After Obama asked whether the Chinese could commit to listing their climate targets in an international registry, Xie Zhenhua launched into a tirade, pointing his finger at the U.S. president.

A compromise from China

The United States had made any deal contingent on international verification of emission cuts made by nations, seeing it as key to winning over skeptical lawmakers on Capitol Hill who are still resistant to sweeping climate change legislation at home. But there was no way China would agree to international verification, Xie told the Americans.

It was a position that China had held to closely over months of negotiations with the United States and other countries. China's vice minister of foreign affairs, He Yafei, had reiterated it just hours earlier.

But this time, something different happened, according to Chinese and Western sources close to the talks. Wen instructed his Chinese interpreter not to translate Xie's fiery remarks. When Xie erupted again, Wen, who was chairing the meeting, ignored him. After Wen handed Obama a draft text of an agreement that included verification language Obama couldn't abide by, the two men led a lengthy debate that ended in a working compromise, sources said.

China has a long history of opposing verification, seeing it as a violation of its sovereignty. It has also used the sovereignty argument as a way to cover up for failures or weaknesses. When China tracked air pollution in Beijing in the run-up to the 2008 Summer Olympics, for instance, authorities in the capital moved monitoring stations into areas with less congestion to get positive ratings. When the U.S. Embassy in Beijing established an air-quality monitoring site on its grounds -- and began sending pollution readings out on Twitter -- the Chinese took umbrage and implied that the action was an interference in their country's internal affairs. Twitter later was blocked nationwide.

But on Friday, Wen ultimately agreed to stronger verification language. By the nature of the agreement, however, China's participation will be voluntary.

The fate of any future global climate change treaty will now effectively rest in the hands of the two largest emitters. For at least the next several years, the lack of a binding international treaty may result in a piecemeal response to the problem, with action being taken largely on a national and regional level.

Yet proponents of the Copenhagen agreement stress that the Obama administration is taking unprecedented action at home, pushing for a national switch to green energy and for a cap-and-trade system that could help dramatically curb emissions.

Wen, according to several Americans who have interacted with him on this issue, is also passionate about climate change. He chairs a high-level Communist Party group on climate change, which sets policy and makes major decisions.

In addition, Ken Lieberthal, a former senior director for Asia at the National Security Council who is now a China expert at the Brookings Institution, said that for China to even tentatively agree on an international verification regime and on the necessity of registering its climate goals marks substantive movement.

"Of course you could say, 'It's just words; they won't do anything,' " Lieberthal said. "But words matter internationally. You can hold people to their words and shame them if they don't comply."

Pomfret reported from Washington.

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/19/AR2009121900687.html?sub=AR

1. Chinese government has voluntarily announced cutting carbon dioxide emissions per unit of the GDP by 40 percent to 45 percent by 2020 from the 2005 level, roughly 1.5 billion tons of emissions reductions.

2. Contrary to the claim of "hijacking" the conference, China has shown great sincerity and broken its back to push forward the talks and help strike a deal, best exemplified by Premier Wen Jiabao's attendance and speech at the meeting.

3. China will NOT take even a penny of the Copenhagen Green Climate Fund, established to help vulnerable countries adapt to the effects of climate change and adopt clean energy technology. Developed countries agreed to mobilize 10 billion U.S. dollars annually from 2010 to 2012, a price tag to increase to 100 billion U.S. dollars a year by 2020.

"It is with a sense of responsibility to the Chinese people and the whole mankind that the Chinese government has set the target for mitigating greenhouse gas emissions. This is a voluntary action China has taken in the light of its national circumstances. We have not attached any condition to the target, nor have we linked it to the target of any other country," Wen said.

"We will honor our word with real action. Whatever outcome this conference may produce, we will be fully committed to achieving and even exceeding the target." Wen said.

Blame Denmark, not China, for Copenhagen failure(4)

The decision to override the multilateral process and hold a secret meeting of select nations ruined any chance of success

Printed by UK <<Guardian>>

Martin Khor, guardian.co.uk,

Monday 28 December 2009

It's been several days since the chaotic end to the Copenhagen climate conference but the aftershocks from its failure are still reverberating. As John Prescott points out in his letter to the Guardian, the pointing of fingers in the blame game does not help the regaining of trust needed for the positive resumption of talks early next year and to complete them by December 2010, the new deadline agreed to in Copenhagen.

First, the misinformation put out in the past few days has to be corrected. The UK climate secretary, Ed Miliband, backed by individuals such as Mark Lynas (both writing in the Guardian) have turned on China as the villain that "hijacked" the conference. The main "evidence" they gave was that China vetoed an "agreement" on a 50% reduction in global emissions by 2050 and an 80% reduction by developed countries, in the small meeting of 26 leaders on Copenhagen's final day.

There was indeed a "hijack" in Copenhagen, but it was not by China. The hijack was organised by the host government, Denmark, whose prime minister convened a meeting of 26 leaders in the last two days of the conference, in an attempt to override the painstaking negotiations taking place among 193 countries throughout the two weeks and in fact in the past two to four years.

That exclusive meeting was not mandated by the UN climate convention. Indeed, the developing countries had warned the Danish prime minister, Lars Lokke Rasmussen, not to come up with his own "Danish text" to be negotiated by a small group that he himself would select, as this would violate the multilateral treaty-based process, and would replace the documents carefully negotiated by all countries with one unilaterally issued by the host country.

Despite this, the Danish government produced just such a document, and it convened exactly the kind of exclusive group that would undermine the UN climate convention's multilateral and democratic process. Under that process, the 193 countries had been collectively working on coming to a conclusion on the many aspects of the climate deal.

Weeks before, it had become clear that Copenhagen could not adopt a full agreement because many basic differences remained. Copenhagen should have been designed as a stepping stone to a future successful outcome accepted by all. Unfortunately, the host country Denmark selected a small number of the 110 top leaders who came, to meet in secret, without the mandate or even knowledge of the convention's membership.

The selected leaders were given a draft Danish document that mainly represented the developed countries' positions, thereby marginalising the developing countries' views tabled at the two-year negotiations.

Meanwhile, most of the thousands of delegates were working for two weeks on producing two reports representing the latest state of play, indicating areas of agreement and those where final decisions still had to be taken.

These reports were finally adopted by the conference. They should have been announced as the real outcome of Copenhagen, together with a decision to resume and complete work next year. It would not have been a resounding success, but it would have been an honest ending that would not have been termed a failure.

Instead, the Copenhagen accord was criticised by the final plenary of members and not adopted. The unwise attempt by the Danish presidency to impose a non-legitimate meeting to override the legitimate multilateral process was the reason why Copenhagen will be considered a disaster.

The accord itself is weak mainly because it does not contain any commitments by the developed countries to cut their emissions in the medium term. Perhaps the reason for this most glaring omission is that the national pledges so far announced amount to only a 11-19% overall reduction by the developed countries by 2020 (compared to 1990), a far cry from the over 40% target demanded by the developing countries and recent science.

To deflect from this great failure on their part, the developed countries tried to inject long-term emission-reduction goals of 50% for the world and 80% for themselves, by 2050 compared to 1990. When this failed to get through the 26-country meeting, some countries, especially the UK, began to blame China for the failure of Copenhagen.

In fact, these targets, especially taken together, have been highly contentious during the two years of discussions, and for good reasons. They would result in a highly inequitable outcome where developed countries get off from their responsibilities and push the burden of adjustment onto the developing countries.

Together, they imply that developing countries would have to cut their emissions overall by about 20% in absolute terms and at least 60% in per capita terms. By 2050, developed countries with high per capita emissions - such as the US - would be allowed to have two to five times higher per capita emission levels than developing countries. The latter would have to severely curb not only their emissions but also their economic growth, especially since there is, up to now, no credible plans let alone commitments for financial and technology transfers to help them shift to a low-emissions development path.

The developed countries have already completed their industrialisation on the basis of cheap carbon-based energy and can afford to take on an 80% goal for 2050, especially since they now have the technological and organisational capacity and infrastructure. For a minimally equitable deal, they should commit to cuts of at least 200-400%, or move into negative emission territory, with net re-absorption of greenhouse gases, to enable developing countries the atmospheric space to develop.

The acceptance of the two targets would also have locked in a most unfair sharing of the remaining global carbon budget as it would have allowed the developed countries to get off free from their historical responsibility and their carbon debt. They would have been allocated the rights to a large amount of "carbon space", historically and in the future, without being given the obligation and responsibility to undertake adequate emission cuts nor to make adequate financial and technology transfers to developing countries.

Fortunately these targets are absent from the accord. The imperative for the negotiations next year is to agree on what science says is necessary for the world to do (in terms of limits to temperature rise or in global emissions cut) but also on what is a just and equitable formula for sharing the costs and burdens of adjustment, and to decide on both simultaneously. By asking for agreement on only a global goal and a very low commitment figure for their own obligatory cut, the developed countries were attempting to fix a global carbon budget distribution that enables them to get away with the hijacking of atmospheric space, a resource worth many trillions of dollars.

Learning from Copenhagen's mistakes, the countries should return to the multilateral track and resume negotiations in the climate convention's two working groups as early as possible.

They can start with the two reports passed at Copenhagen as reference points. There should not be more attempts to hijack this multilateral process, which represents our best hope to achieve final results.

The bottom-up democratic process is slower but also steadier, compared to the top-down attempt to impose a solution by a few powers that will always lack legitimacy in decision-making and success or sustainability in implementation.

http://www.guardian.co.uk/commentisfree/cif-green/2009/dec/28/copenhagen-denmark-china

China knows her problems:

rising income inequality, potential social unrest,

water shortages, fuel scarcity, environmental pollution,

territorial disputes, and a still-rickety banking system etc.

China will solve all her problems.

USA 'Foreign Policy': Estimation of China 2040

click here

China's century: on the march

Verdant mountains cannot stop water flowing; eastward the water keeps on going.

Printed in Australia

Rowan Callick, Asia-Pacific editor

From: <<The Australian>>

January 02, 2010 12:00AM 11

THUS the headline for an article in which China's Xinhua newsagency has responded to Western critics of the country's role in the recent climate change conference. It included a detailed account of the government's efforts, and of Premier Wen Jiabao's meetings during his 60 hours in Copenhagen for the summit.

It said, in defiance of attacks such as that of Britain's Climate Secretary Ed Miliband, who accused China of hijacking the event: "The Copenhagen conference has put China on a higher and broader world stage. China has reason to be proud, and China will work even harder!"

This process is now viewed in China -- and also in the rest of the world, underlined by China's crucial role, for better or worse, in Copenhagen -- as unstoppable as the rivers that flow east across its plains from the Himalayas.

The metaphor can be taken -- as appears to have been intended -- further: that the world's attention, its power and its wealth, will keep on going eastward too.

At the start of 2000, the professional seers had a common theme. The cautious prophets among them put their money on a place bet: this would be Asia's century. Those with more nerve cast it all on China.

Ten years on, the latter now look like clear winners. Asia is mostly doing fine. But the real influence on our daily lives is coming from China.

Everything is shifting into focus as we prepare to start the century's second decade with the Year of the Tiger, a year astrologers traditionally associate with courage, assertiveness, turbulence, competitiveness and dynamism.

China is not exerting an influence that is unbalanced or bizarre, though. It is commensurate to its size.

Its population is one and a half times that of Europe even including Russia and Turkey, and four times that of the US. Its land area is about the same as Europe without Russia and Turkey.

As its economy catches up, it is natural that its overall influence is also building inexorably.

This began with Deng Xiaoping's opening of the manufacturing sector to foreign investors. Factory owners shut up shop in Taiwan and Hong Kong and re-opened in China, with dormitories alongside to accommodate the millions of workers who flooded from the countryside where they had been underemployed.

By the start of the 21st century, most goods bought in Australia already carried the stamp Made in China.

That remains the case. But some of those items are now being made by China: with some Chinese industrialists taking over from the foreign pioneers, developing their own businesses, and taking them offshore to places such as Vietnam or west Africa, where labour costs are even lower.

During the past decade, China's efficient production -- through which manufactures have become commodities, prone to constant price pressure -- has smothered inflation in the industrialised world, including in Australia. The prices of our flat-screen televisions, airconditioners, jeans and suits have mostly gone down.

No wonder Time magazine made "the Chinese worker" its runner-up to the US Federal Reserve Board's Ben Bernanke as person of the year for 2009.

In the financial year 1998-99, China was Australia's fifth biggest export market and total trade between the countries was $10 billion. Ten years later, trade had soared to $76.4bn and China had become Australia's top overall trading partner and second buyer of exports after Japan.

But China has also become a huge influence on daily life well beyond the Made in China products Australians buy, and the high proportion of Australian exports that China buys.

In 1999, there were 9000 Chinese students in Australia. Last year, there were almost 130,000.

In 1999, 40,000 Chinese tourists visited Australia. In 2008 356,000 came, and each spent on average more than visitors from almost every other country.

It would be unusual not to overhear at least one conversation being held in Mandarin on almost any train, tram or bus in Australia's main cities.

In the four months to last October, migrants from China for the first time exceeded those from Britain and New Zealand. There were 6350 from China -- increasing at 15 per cent a year -- 5800 from Britain and 4740 from NZ.

The extent of the controversies between China and Australia that flared last year -- the arrest in Shanghai of Rio Tinto executive Stern Hu, attacks on Australia's governance of Chinese investment, protests by Beijing against the visit of Uighur activist Rebiya Kadeer and the showing of a film about her at the Melbourne Film Festival -- and the focus on these stories in the media, served to underline the importance of China rather than its remoteness.

Australians today respond in a more animated way to relations with China than with almost any other country.

China's spirited and articulate ambassador to Australia Zhang Junsai says: "Both countries have come to a consensus that we have to manage the differences that naturally occur when we have such different histories and cultures and levels of development.

"The leaders have kept in contact and kept talking" during the past year, despite the issues that have created friction, he says. These problems have emerged in a sense "because the relationship is getting closer, and the countries matter much more to each other".

Zhang, who has been living in Australia on and off for more than 11 years, adds: "Chinese people see in Australia a beautiful country with friendly and easygoing people, who are very frank. It's very easy to deal with. We share the same sense of humour."

The new visibility of Chinese people and culture on Australia's streets is starting to match the country's economic reach.

One of the crucial elements in China's newfound "soft power" is its sustained support for globalisation. It was formerly believed that the US was destined to be the prime beneficiary not only of the "end of history" following the collapse of the Soviet Union 20 years ago, but of the internationalisation of economies.

But China, too, is sharing in those benefits, as it becomes the new engine-room of global growth.

Many commentators anticipated that as China grew wealthier and more enmeshed with the global economy, it would not only become, in the words of World Bank president Robert Zoellick, a "responsible stakeholder" in the international system, but would also become more normal in a Western sense.

It was assumed that its growing middle class would demand greater liberalisation and democratisation. But that hasn't happened. That middle class, as the prime beneficiary of the established Chinese system, has become its staunchest supporter.

China's ruling Communist Party, recently celebrating 60 years in power a year after presiding over an extremely efficiently organised Olympic Games in Beijing, is cautiously -- because it still fears that its legitimacy remains fragile -- insisting that it will continue to rule alone, through the same institutions.

Despite the appeal, especially to Third World leaders, of the China model of governance, China has recently been reluctant to export its system. Projecting its national influence through "soft power" is one thing, but having other countries copy its institutions makes it uneasy.

If the China system fails to work elsewhere, failure could rebound on Beijing.

Thus, Wen said in November: "It seems to me that Africa's development should be based on its own conditions and should follow its own path, that is, the Africa model. All countries have to learn from other countries' experience in development."

At the same time, freed from being a self-conscious model, while also revelling in its economic success and its pervasive diplomatic influence, China feels more capable of exercising its judgments autonomously, at home and abroad.

In late December it persuaded Cambodia to round up 20 Uighurs who had escaped there and had begun applying to the UN for refugee status, and to fly them back to very uncertain futures in China.

On December 29 it executed Briton Akmal Shaikh for drug trafficking without conducting any assessment of his mental health despite his family's strong contention that he was suffering from bipolar disorder.

These are manifest signs of its self-confidence. It no longer "trades" such prisoners. There is nothing much that Britain, for instance, can offer any more.

In 1840, when Britain wanted China's porcelain, silk and, above all, tea, emperor Daoguang declined to trade because it had nothing, he said, that China wanted. But Britain pressed on China the opium it had begun growing in India for that purpose. And China was too weak to resist. Today, the balance of power is reversed.

What has China achieved in the past decade? For its own population-- whose 20th century comprised a centuria horribilis with warlords, the Japanese invasion and Mao Zedong's purges -- it has enjoyed sensational economic growth.

In 2000, China's economic output was just 3.4 per cent of the world's. By 2008, it was 7.9 per cent and this year -- when it has pulled away from the West, which has been treading water or falling back -- it has further increased that share of the global economy, growing by 8.5 per cent. Its economic output has more than quadrupled during the decade, a target it originally set for 2020.

Reserve Bank governor Glenn Stevens and Treasury secretary Ken Henry keep pointing to China as a key contributor to Australia's easy passage through the financial crisis in 2008-09, which has been more a US-Europe downturn than a global recession.

China remains the most populous country in the world, with 1.33 billion people. But thanks to the one-child policy, its demographic growth has slowed, ensuring its increased income does not have to be shared more widely. At the start of the decade China comprised 21 per cent of the global population; now it is 19.9 per cent.

It receives more than 40 per cent of the foreign direct investment that goes to all developing countries. But its population is also about 30 per cent that of the entire developing world.

Its continued economic power is relentless, pulling like gravity until its share of the world's economy at least equals its share of the global population. In more palpable terms, as its people gain the freedom and wealth to travel, they are becoming aware of the gap they still have to bridge to catch up with the living standards of their neighbours in South Korea, Taiwan, Hong Kong and Japan.

The size of China's middle class remains modest, despite the excitement in the West about this great new market. Global Demographics starts from the number of people who respond to China's legal requirement to report to their local tax office once they earn more than $20,000 a year. This indicates that the households earning more than that sum are about 4.4 million: fewer than in Australia. But Global Demographics forecasts this will triple by 2014 and double again by 2019.

Already, because of the low cost of manufacturing -- enabling people of modest incomes, alongside vast numbers of state-owned enterprises replete with cash thanks to last year's monetary stimulus package, to buy cars -- China has this year overtaken the US as the biggest auto market in the world.

The past decade has seen China start to go global, armed with its newfound economic muscle. In 2000, it invested a mere $US1bn overseas. In 2008, it invested $US41bn directly in foreign businesses, and a further $US11 billion in international financial markets.

But this can be a tough task, even for a country with China's cash. Last year, it lost its long Australian battle for a bigger stake in Rio Tinto. Minxin Pei, a prominent China "discounter" -- he contests the word doomsayer -- said that Chinese bidder Chinalco "saw its cooked duck fly away".

Oded Shenkar, the Ford Motor Company chairman in global business management at Ohio State University wrote in his book The Chinese Century: "Economists and editorial writers often paint China's ascent as one more case of an emerging economy on its way up, preceded by Japan and the Asian Tigers, and soon to be joined by India.

"It is anything but. China's rise has more in common with the rise of the US a century earlier . . . We are witnessing the sustained and dramatic growth of a future world power, with an unmatched breadth of resources, lofty aspirations, strong bargaining position, and the financial and technological wherewithal of an established and business-savvy diaspora."

The pace of China's economic catch-up is likely to slow as further reforms become harder to achieve. This is due partly to the consensus-driven nature of the Chinese hierarchy, which to enhance stability has cut every conceivable faction in to the decision-making process, and to China's having already implemented the less controversial changes.

The influential book Capitalism with Chinese Characteristics by Yasheng Huang at MIT's Sloan School of Management, views the 1980s as a decade during which the rural-based private sector drove Chinese change and growth, before "the great reversal" of the 90s, during which the economy came to be dominated by capital-intensive, state-directed urban development.

But he is optimistic the present leadership -- President Hu Jintao and Premier Wen and possibly their expected successors Xi Jinping and Li Keqiang -- whose rhetoric has championed equality and opposed corruption, may restore a better balance.

Leading Chinese economist Yu Yongding, warned Australia's Productivity Commission in November: "China's investment-driven and export-led growth pattern is not sustainable." As the economy moves into investment overdrive, "China's overcapacity will become more serious."

Yu said the growth rate of China's exports cannot remain higher than that of the global economy. "With or without the global financial crisis, overcapacity will surface and correction is inevitable. The crisis exposed the vulnerability of China's growth pattern." But "China can spend its way out of the slowdown as long as the government wishes", because of its strong fiscal position. It famously keeps its foreign currency earnings offshore in order to hold the yuan down and thus retain as many export jobs as possible. Pei asks: "If China is so strong, why doesn't it show more leadership in addressing global problems?"

But all empires have their troubles; it comes with the territory. The US had its crosses to bear in the 20th century and China will be no different. What matters for Beijing is managing them as "eastward the water keeps on going".

China has decided to equip itself with the capacity to project itself not only with "soft power" but also with "hard power" to ensure it can counter its challenges.

During the past decade, China has modernised its military even as it has reduced the number of soldiers in the People's Liberation Army.

The US Council on Foreign Relations said in a report last year: "Since the 1990s, China has dramatically improved its military capabilities on land and sea, in the air, and in space."

Last week, Rear Admiral Yin Zhou said China should set up naval supply bases overseas. China's military is now regarded as second only in capacity to that of the US.

In its first, mostly failed stage, the new communist Chinese empire was ruled by emperor Mao. Now, it is run by committee. The anthem of the early days of this empire started: The east is red, the sun is rising. / China has brought forth a Mao Zedong.

He has been consigned to the history books. But the final verse remains more pertinent than ever: The Communist Party is like the sun. / Wherever it shines, it is bright.

We too, in Australia, feel that sun. Sometimes scorching, sometimes soothing but always there.

http://www.theaustralian.com.au/news/opinion/chinas-century-on-the-march/story-e6frg7e6-1225815239852

China's growth is Canada's gain

Canada's national newspaper GLOBE AND MAIL

By Paul Sullivan

Special to Globe and Mail

Published on Jan. 05, 2010

If there's one word that looms large in Canada's economic future, it's China.

If the Economist Intelligence Unit, a global research firm, is correct, Canada will take a hard-earned lesson from the recent economic crash and decrease its dependency on its No. 1 trading partner, the United States, and put more eggs in the basket of its No. 2 partner, China.

Canada and China stand to do about $54-billion (Canadian) in trade this year, which is still a far cry from the nearly $600-billion (U.S.) in trade between the U.S. and Canada. So there's a lot of room for improvement.

China experienced no recession in 2008-09, and is expected to outpace the world and grow by 8.6 per cent in 2010, quadruple the rate of the United States. At that pace, it will become the world's foremost economy by 2035. Quietly, it already became the world's largest exporter in 2009.

These numbers show David Emerson, Canada's former International Trade Minister, who has a long-abiding interest in Asia, that our future lies with China. "Few today seriously doubt that China will be a key player for as far as we can see in the future, and few would doubt the importance of Canada increasing our engagement with China as part of our trade and foreign policy," he told an Ottawa audience recently.

Prime Minister Stephen Harper has seen the light. He finally followed Mr. Emerson's numerous entreaties to visit China personally, which he did in December, remaining stoic as Chinese Premier Wen Jiabao upbraided him in public, complaining that five years is too long between visits of the heads of the third and 11th largest economies in the world. As the engine of global economic recovery, China is too important to alienate.

Investors trying to figure out the post-recession climate should pay attention to what's going on between China and Canada, as China has already acted as the engine of recovery for Canada's largest publicly traded mining company - Vancouver's Teck Resources Ltd. - turning it from a likely bankruptcy to the biggest turnaround stock on the Toronto Stock Exchange: from a low of $3.35 to a 2009 high of $40.15 (Canadian) with a $1.74-billion (Canadian) investment from the $200-billion (U.S.) China Investment Corp. (CIC). Flush with cash and hungry for resources to fuel its rapidly growing manufacturing sector - currently at a 20-month high - China is buying up Canada.

In the wake of the Teck deal, Mr. Emerson was appointed to a 14-member international committee charged with advising the CIC on future acquisitions, putting him in the thick of the action. He believes there is much for Canada to gain by shifting its focus to China: an alternative to the increasingly protectionist U.S. for our energy and resource products, a vast untapped market of consumers, and of course, importing the Made in China products that combine quality and cost competitiveness.

And, he says "we need to collaborate with China on R&D [research and development], or we will be left in the dust as China drives forward with a science agenda that dwarfs anything Canada can do."

But it goes both ways. "China can benefit from Canada's product and service offerings, as well as our strategic advantages as a highly efficient gateway into the heart of the North American marketplace."

The investment in Teck, for example, will open the Chinese steel fabrication market to Teck's recently acquired coal resource, the $14-billion (Canadian) acquisition of Fording Canadian Coal Trust that just about sank Teck under a mountain of debt, but now looks like the key to its future prosperity.

The Teck deal is just one of three this year indicating that China is ready to buy Canadian - and Canada is ready to let itself get bought.

In the week before New Year's, a Chinese consortium bought Vancouver-based Corriente Resources Inc. , which owns copper deposits in Ecuador, for $679-million. The deal demonstrates just how determined China is to secure raw materials - Ecuador is hardly the most stable mining environment on the planet - yet the consortium of Chinese state-owned enterprises pursued the deal regardless of the political climate. Corriente opened the month at $6.46 a share and ended it at $8.53, a cool $2.07-a-share gain (or a rise of 32 per cent), if you're keeping score.

Chinese investors have also been busy in the Canadian oil sands. Once again, undeterred by politics - in this case the politics of carbon dioxide - Petro-China acquired 60 per cent of two properties from the Athabasca Oil Sands Corp., a private company, for $1.9-billion. The deal has been approved by Ottawa, which bodes well for future deals - it looks as if the federal Conservatives are inclined to park their ideological baggage and do business with the Chinese, regardless of their record on human rights.

Resource companies aren't the only beneficiaries of Chinese growth. Bombardier Inc. , the Montreal-based aerospace and rail company, certainly has, despite its troubled aerospace division. Too often overlooked is Bombardier's rail transport success, in particular a $4-billion deal earlier this year to provide 80 high-speed trains to China. Bombardier, a perpetual Dog in the Globe and Mail's Stars and Dogs stock column, has nonetheless doubled its share price since it hit rock bottom at $1.87 (Canadian) in 2005, but it has a long way to climb back to its September, 2000, high of $26. Perhaps China can help. China is determined to link its cities with high-speed passenger trains, and Bombardier sells the world's fastest, clocked at 347 kilometres per hour.

China's economic success is reflected in its stock market - when the decade started, the Chinese market (not counting Hong Kong), ranked 43rd in the world, smaller than Poland's, according to the New York Times. Now its market capitalization ranks ninth. Interestingly, Canada's market more than doubled in that period, making it, along with Australia, the best performer among the developed nations.

So resource-rich Canada and market-rich China are a marriage made for the next decade - if the two nations can leave politics out of the pre-nup.

http://www.theglobeandmail.com/globe-investor/e-zines/trade-by-numbers/chinas-growth-is-canadas-gain/article1419888/?cid=art-rail-globeinvestor

China stands as constructive player in Copenhagen

www.chinaview.cn 2009-12-26 14:15:00

 

¤To make the summit a success, China has shown indisputable sincerity and patience.

¤Prior to the meeting, China announced roughly 1.5 billion tons of emissions reductions.

¤China has firmly defended developing countries' interests on key issues.

BEIJING, Dec. 26 (Xinhua) -- For those who accused China of "hijacking" the Copenhagen climate summit, China's constructive contribution to guaranteeing an achievement of the summit is something they would not like to accept.

If a legally binding deal is what these people really want, they should be reminded that Jose Manuel Barroso from the European Union, the much-vaunted front runner of fighting climate change, claimed in Washington in early November that no full-fledged binding deal will be inked in Copenhagen.

On the contrary, Chinese Premier Wen Jiabao vowed to the Chinese delegation in Copenhagen that "as long as there is hope of one percent, we should not give up and must instead make 100 percent of effort."

China's deeds in Copenhagen meet its words.

To make the summit a success, China has shown indisputable sincerity and patience. Prior to the meeting, the Chinese government has voluntarily announced cutting carbon dioxide emissions per unit of the GDP by 40 percent to 45 percent by 2020 from the 2005 level, roughly 1.5 billion tons of emissions reductions.

As the world's largest developing nation with a population as huge as 1.3 billion, the commitment was rather a sacrifice for China's domestic development.

Considering the grave challenges of climate change and the diversity within the international community, a consensus is hard to achieve. Nevertheless, from the very beginning, China has been playing an active role in seeking a viable solution to global warming.

In working with developing countries for drafting documents, China has been praised by the UN and the host country for seeking common ground while putting aside the existing differences for further discussions.

Such an attitude could also be seen when China promised to back off and concede the target of limiting global warming to a maximum 2 degrees Celsius over pre-industrial as a target of the final paper.

At this conference, China has firmly defended developing countries' interests on key issues. China and other developing countries foiled the attempts of some developed countries to mislead the conference on its target of emissions reduction.

A handful of developed countries made no sufficient efforts to cut emissions in their countries. Instead, they showed little gratitude for developing countries' voluntary mitigation actions and tried to link two reduction targets of different nature together.

China and some developing countries demonstrated much sincerity when a few developed countries all but derailed the conference by unilaterally producing draft agreements without discussing with other countries.

On the center issue of international funding for fighting climate change, China has generously pledged not to scramble for acent in the budget with other developing countries if such a fund were to be made available.

In addition, China has shown enough flexibility to ensure the conclusion of a final agreement.

At the last minute of the conference, the mechanism of emission verification became a focal point. According to the UN Framework Convention on Climate Change, the Kyoto Protocol and the "Bali Roadmap," developing countries would not accept international verification on voluntary mitigation actions without financial and technical assistance from developed countries.

In order for the final consensus to be achieved, China actively discussed and mediated with other countries and finally agreed to increase the transparency of its voluntary mitigation actions.

The sealed Copenhagen accord safeguards the UN Framework Convention on Climate Change and the Kyoto Protocol on the principle of "common but differentiated responsibilities."

China's efforts guarantee the continuation of climate talks and prevent the abortion of the negotiations for over 10 years on climate change.

The final document serves as a new start for the world to address the issue of climate change and China as a major developing country has made its own contribution.

http://news.xinhuanet.com/english/2009-12/26/content_12706368.htm

UN Secretary-General Ban Ki-moon : "Without the personal intervention and contribution of Chinese Premier Wen Jiabao, there might be no agreement among most nations at Copenhagen Climate Summit and thus no <<Copenhagen Accord>>."

China speaks on behalf of all poor and developing countries.

Green efforts spring from Chinese desert

By USA Calum MacLeod, <<USA TODAY>>

Despite winter temperatures below freezing, Yue Chao, 60, sweats hard as he gathers sand willow branches to feed into a mobile cutting machine ahead of delivery to the Maowusu biomass thermal power plant, in Yixilai village in the Ordos city region of Inner Mongolia, northern China.

ORDOS, China - He has never heard of global warming or Copenhagen, where leaders from 193 countries gathered for a major climate change summit last weekend.

But Ulandalai, 43, a farmer in one of China's most isolated desert regions, says he's doing his part to help the environment anyway.

As part of a clean energy initiative partly sponsored by the Chinese government, Ulandalai, who uses just one name, planted sand willows three years ago on land where he used to graze sheep.

There are several benefits to the switch, he says.

First, the large shrub-like plants help hold down the soil, which Ulandalai and other locals say has reduced the intensity of sandstorms and made the area more hospitable to wildlife.

Second, the sand willows can be harvested and burned to generate electricity, a process that produces fewer greenhouse gases than other energy sources such as coal.

A nearby power plant built to burn the willow has paid Ulandalai $2,600 annually to plant and manage the crop, and he could receive double that amount when the first batch of sand willows is harvested next month.

That has led to the third and final benefit: Compared with some of his neighbors, especially those who once criticized his decision, Ulandalai is getting rich.

"They said, 'We Mongolians rely on our sheep and other animals. How can you live without them?' " Ulandalai recalls. "Now my neighbors want to plant sand willows, too."

The pioneering Maowusu power plant contracts farmers to grow sand willows to provide cleaner energy.

Coal remains king

Chinese Premier Wen Jiabao told world leaders in Copenhagen that China, the world's largest emitter of greenhouse gases, is moving more quickly than any other nation to adopt new and renewable energy sources.

The project in Inner Mongolia shows how the Chinese government and private investors work together on clean energy initiatives. It also illustrates some of the sector's shortcomings.

Despite all the "green" efforts, coal remains king in Ordos. The city is home to Shenhua, the world's largest coal company.

The heavily polluting but cheap energy that coal provides and the ready availability of other natural resources nearby have helped make Ordos one of China's most prosperous cities.

It has a per capita gross domestic product of almost $14,000 - more than triple the $4,000 national average, the city government says.

The Maowusu biomass thermal power plant, where Ulandalai sells his sand willows, needs substantial government subsidies to get by. The power plant says that for every 4 cents it costs to generate electricity there, it receives 5 cents in subsidies so it can compete with the lower cost of coal-fired power.

Li Jinglu, a former real estate mogul who has invested $51 million in the power plant, sees enough environmental benefits to make it worthwhile. He says he hopes to turn a profit within two years and eventually build and inspire 2,000 similar plants across the Chinese desert.

"We can not only fight desertification, but produce clean energy to replace coal-produced power," says Li, 54.

His plant has contracted 1,000 local farmers to grow sand willows and 150 full-time workers at the site. "We really can turn a disaster into a blessing," he says.

'Next revolution'

The Maowusu project "represents what's happening in China right now" with clean energy efforts, says Tim Clissold, CEO of Peony Capital, which manages a fund aimed at reducing China's greenhouse gas emissions.

China says it spends about $9 billion a month on clean energy development.

The government plans to make renewable energy account for 15% of its fuel by 2020.

"The Chinese want to own the technology for this next revolution in new technology - clean energy," Clissold says. "When the oil runs out, China will be in a strong position."

The Ordos area is also home to wind and solar projects.

Arizona-based First Solar recently signed a deal to build the world's largest solar farm here. When it's completed in 2019, it will be roughly the size of Manhattan and produce enough electricity for 3 million homes, the company says.

Clissold says clean energy projects will become more viable once richer countries agree to provide more financing - a goal the Copenhagen summit fell short of reaching, he says.

Ulandalai is among those who see a prosperous future in green energy.

"We know we can earn money from controlling the desert," he says.

http://www.usatoday.com/weather/climate/globalwarming/2009-12-23-china-green-farmers_N.htm

China to lead on climate change(5)

By Fiona Harvey, Environment Correspondent

Published by UK The Financial Times : September 21 2009 03:00

China will be at the forefront of combating climate change by 2020 if it meets government targets on reducing greenhouse gas emissions, the International Energy Agency suggests.

The finding contrasts sharply with the widespread image internationally of China as a country of inefficient, carbon-intensive industry that is resisting international calls to curb its emissions.

Fatih Birol, IEA chief economist, said: "If China reaches its targets - and in the past, it has reached most of its targets of this kind - its emissions [growth] will have declined so much by 2020 that it will be the country that has achieved the largest emission reductions. China will be at the forefront of combating climate change."

China's strong showing in curbing emissions will make negotiations on a global agreement on climate change easier.

Under any such agreement, which governments are hoping to forge at a conference in Copenhagen in December, emerging economies would be required to take certain "measurable, reportable and verifiable" actions on CO 2 .

These would not amount to absolute cuts in emissions, but would be designed to curb the growth of emissions, ensuring greenhouse gas output did not reach the levels expected under "business as usual" conditions.

China's actions, if followed up with more tough targets, would be enough to meet these requirements.

However, Beijing may still hold out on another element that developed countries would like to see as part of a Copenhagen deal - a commitment on when the country's emissions would peak, and a commitment on a global target of halving emissions by 2050.

India surprised the world last week by signaling that it would set national numerical targets for curbing emissions for the first time, after insisting that it would not.

However, China recently rebuffed western demands by saying its emissions would peak "some time before 2050" - a date too distant to satisfy developed countries, and one that scientists regard as disastrous if dangerous climate change is to be avoided.

Mr Birol said China was doing the right things to curb emissions. "China has declared three very important targets: to increase the share of renewable and nuclear [power] in electricity generation, an energy intensity target, restructuring and rebalancing their economy," he said.

The targets are part of Beijing's current five-year plan. Future five-year plans would need to incorporate further stringent measures if the country's momentum on carbon-curbing is to be maintained to 2020.

China is also directing about a third of its economic stimulus to green ends, according to research by the bank HSBC.

The IEA's research on China was part of a study of climate change undertaken as part of its annual World Energy Outlook, to be published in November. The excerpt has been released early to give negotiators time to digest the contents before Copenhagen.

Mr Birol also urged developed countries to provide financial help to poorer nations to cut their greenhouse gas emissions.

Many developing countries are working on plans to curb emissions similar to those of China, called "nationally appropriate mitigation actions".

"Many countries have NAMAs. To make them happen it is not a bad idea that those numbers are co-financed by OECD countries," he said.

For news and analysis, go to www.ft.com/climatechange

http://www.ft.com/cms/s/0/c214a2ce-a645-11de-8c92-00144feabdc0.html

China's green leap forward (6)

Facing dire pollution and wanting to be in on what may be the next industrial revolution, China positions itself to be a leader in green technology - with major implications for the rest of the world.

This article was written and puhlished in USA.

By Peter Ford | Staff writer of The Christian Science Monitor/ August 10, 2009 edition

Behind the notorious clouds of filth and greenhouse gases that China's industrial behemoth spews into the atmosphere every day, a little-noticed revolution is under way. China is going green. And as the authorities here spur manufacturers of all kinds of alternative energy equipment to make more for less, "China price" and "China speed" are poised to snatch the lion's share of the next multitrillion-dollar global industry - energy technology.

Chinese factories already make a third of the world's solar cells - six times more than America. Next year, China will become the largest market in the world for wind turbines - overtaking America. This fall, a Chinese firm will launch the world's first mass-produced all-electric car of this century. And where are American utilities buying the latest generation of "clean coal" power stations? China.

"The Chinese government thinks of renewables as a major strategic industrial option" that will help fuel this country's future growth, says Li Junfeng, deputy head of energy research at China's top planning agency. "We will catch up with international advanced technology very quickly."

China will likely remain the world's worst polluter, emitting more CO2 than any other nation, for the foreseeable future. Its reliance on cheap coal to generate the bulk of its electricity makes that almost inevitable.

At the same time, however, "this country is installing a one-megawatt wind turbine every hour," points out Dermot O'Gorman, head of the World Wide Fund for Nature in Beijing. "That is more encouraging than the one coal fired power station a week" that normally dominates foreign headlines.

Indeed, China is pushing ahead on renewable technologies with the fervor of a new space race. It wants to be in the forefront of what many believe will be the next industrial revolution. If it succeeds, it will hold far-reaching implications for the planet - affecting everything from Detroit's competitiveness to global warming to the economic pecking order in the 21st century.

"The rest of the world doesn't even realize that we are very likely ceding the next generation of energy technology to the Chinese," says Todd Glass, an energy lawyer with Wilson Sonsini Goodrich and Rosati in San Francisco.

A peasant tends a cornfield as turbines harvest the wind near the Great Wall of China. The wind farm turns out not only electricity but also curiosity: It is a favorite spot for newlyweds to take photos. (Peter Ford).

A 20-MINUTE DRIVE from the Great Wall, along the south shore of the Guanting reservoir, straw-hatted peasants tend their corn crop as the elegant blades of windmills spin idly above them in the gentle breeze, farming the wind.

Guanting's 43 wind turbines provided some of the power for last year's "Green Olympics" of which China was so proud, and they continue to generate not only electricity, but admiration: The wind farm is a favorite spot for newlyweds to take their wedding photos.

"They find the windmills beautiful and magnificent," says Yin Zhiyong, the Guanting wind farm manager, as he shows a visitor around. "So do I."

Mr. Yin trained as a coal engineer; when he was at college 20 years ago, wind-power courses were not offered. Today, he is convinced, "new energy sources are the new way of development. I'm part of the future."

Workers paint wind turbines at a plant in Baoding, China. (Alexander F. Yuan/AP).

The Chinese government shares that view. The country's installed wind power capacity has doubled each of the past four years, and is likely to exceed the 2020 target next year, a decade ahead of schedule. A revised goal, expected to be more than three times higher than the current one, will be announced soon, officials say.

Beijing has deliberately stimulated the wind sector with an array of subsidies and tariffs and a rule obliging power companies to buy renewable energy similar to a law now before the US Congress. So fast have windmills been built that the national grid cannot handle all the energy they generate, and much is wasted.

But the industry built by government policy is now looking much further afield. "Goldwind's goal is to become a multinational and international company," Wu Gang, the CEO of Goldwind, the firm that built Guanting's turbines, told the "Securities Times" last month. "That is our business target."

Already, he pointed out, Goldwind is building wind farms in Texas, and Goldwind acquired its key technology by buying 70 percent of the German company Vensys, not by developing it itself. That deal points up a key ingredient in Chinese firms' strategies: If they don't have time to develop technological proficiency, they will use their financial clout to get ahead.

China's top planning agency is soon expected to announce plans to raise the proportion of renewables in the country's energy mix to 20 per-cent by 2020, matching the European Union's ambitious target.

Goals like this act as clear pointers for the state-owned power generating companies, where "the idea of planned industrial policy is in their blood," as Ellen Carberry of the China Greentech Initiative puts it.

That approach is apparent in the electric-car sector, says Ms. Carberry, who represents 60 global and Chinese companies seeking to grow the green technology market here.

Two Chinese firms, BYD Auto (for Build Your Dreams) and Qingyuan are vying to bring an all-electric car to market this fall. In December, BYD started selling the world's first mass-produced plug-in hybrid vehicle.

With the passenger vehicle sector moving forward, the government ordered 1,000 hybrid buses for Beijing and Shanghai earlier this year. It announced customer rebates of up to 40 percent off the price of new cars, depending on their energy efficiency.

Almost overnight, Beijing has focused world attention on the Chinese hybrid vehicle mar-ket. "They saw that Detroit was in a muddle, so they will leapfrog," says Car-berry.

A worker checks solar-powered traffic lights at a manufacturing facility in Baoding, China. China now manufactures one third of the world?¡¥s solar cells. (Alexander F. Yuan/AP).

The government has taken a different path with solar energy, refusing until recently to offer any encouragement of its use at home because solar's price was still much higher than traditional fuels and incentives would have been very expensive. But that hasn't stopped Chinese and foreign venture capital firms from investing in the manufacture of solar panels for export. Here, as in other fields, "China is a fast follower," says Alex Westlake, a founder of Clearworld Now, which invests in Chinese green-tech firms.

Though solar technology is not as advanced in China as in the US, producers here have used the country's traditional cost advantage to vault to the top of the solar sales league.

And when the government does make up its mind which technology to back, its support "will make the Chinese photovoltaic market the biggest in the world," predicts Miao Liansheng, CEO of Yingli, one of the country's top solar-cellmakers.

The sheer size of China's market, and the economies of scale that size allows, are key components of the country's advantage. "They are using their manufacturing strength and imposing cost discipline on the world," says Mr. Glass.

At another factory, an employee assembles photovoltaic solar panels (Alexander F. Yuan/AP).

NOWHERE ARE CHINA'S green ambitions more evident than in its drive towards new "clean coal" technology, which would help Beijing reduce its emissions of pollutants and CO2 while remaining reliant on its giant coal reserves. China burns coal to generate 80 percent of its electricity; the United States uses it for half its power. No matter how many sources of renewable energy those two countries tap, coal will remain their dominant fuel source for several decades.

Many energy experts are pinning their hopes on new ways of using an old technology, coal gasification. It cuts SO2 and NOx emissions and separates out CO2 so that it can be captured and then either used in industry, digested by biodiesel-producing algae, or stored permanently underground.

The US was meant to lead the way toward a near zero emissions coal-fired power plant by building one first while other countries, including China, waited for experimental data before constructing their own.

But the US Futuregen project ran into so many cost and political troubles that it was shelved. As a result, the Chinese government decided last year to move ahead with its own project. The Greengen plant, designed to be the most efficient and cleanest coal-fired power station ever built, should begin operations by the end of next year, officials here say.

In the meantime, two Chinese research centers, the East China University of Science and Technology and the Thermal Power Research Institute, have developed coal gasification techniques to challenge America's lead in the field. Both recently licensed their inventions to American firms building power plants in the United States.

"The general thinking in the US is that we are 30 years ahead of China in technology," says Ming Sung, a Chinese-born American who worked most of his career with Shell. "We think it's a one-way transfer. China licensing technology to the United States is still very unusual. But it will become less and less unusual."

He points to underground coal gasification, where solid fuel is converted to gas without even being extracted, as an example. China graduated 17 PhDs in that field last year. Only two graduated in the rest of the world.

Not that the US is a technological laggard, of course. US firms were developing advanced coal gasification technologies 30 years ago, but the Department of Energy lost interest in them when the oil embargo ended, complains Mr. Ming. "The US is very innovative, but everything comes to fruition in China," he says.

Or, as Zhang Hongmei puts it: "In America, some people say there is no such thing as clean coal. It is very controversial. Here it's not a question of debate or lobbying. It's a question of doing something."

Ms. Zhang is director for technology strategy and development at ENN, China's largest privately owned clean-energy provider. At its spacious and exquisitely manicured campus in Langfang, 40 miles east of Beijing, executives live in villas by the fairways of the company golf course.

That is the kind of perk that has helped the company recruit many engineers abroad - both foreigners and Chinese whom ENN has tempted home. "In China as a whole, research levels are still generally low. We are at a very, very young stage compared to the US or Europe," says Gan Zhongxue, ENN's chief technology officer. "So we recouped many researchers from the US and Europe who are familiar with advanced technology and can then do something for ENN."

"China cannot yet produce things with the credibility and quality behind the 'Made in Germany' label," adds Jennifer Morgan, an analyst with E3G, a London-based environmental think tank. "They are not there yet."

Still, the country has plenty of reasons to attempt to be the world's next green-energy power. For one thing, it has few natural energy resources of its own. Plus, its pollution problems are so severe that it has little choice. The country's outsized reliance on coal is literally a matter of life and death: 750,000 people in China die prematurely each year because of air pollution, a World Bank study in 2007 found (though the Chinese government insisted the bank cut that statistic from its final report). Only 1 percent of the population breathes air that would be considered safe in Europe.

Moreover, Beijing - just like US President Barack Obama - sees renewable energy as an economic boon. Building out a new global energy industry over the next half century will generate more business than any other sector, Chinese officials predict, and they want a hefty chunk of that business. "This gives us an opportunity to develop a new area for a new industry" says Professor Li. "It's good for our long-term development."

BUT THE QUESTION LOOMS: What does China's rise as a green power mean for the rest of the world? Certainly it has its benefits. A China with more solar cells and electric cars will help reduce the amount of heat-trapping gases building up in the Earth's atmosphere.

It could also reduce the competition for, and depletion of, dwindling natural resources - notably oil. If China rises as a green-technology manufacturing hub, it could supply the world with low-cost solar panels and wind turbines as it does now with toys and textiles.

Yet there are worries for the West, too. If green energy is the new industrial revolution, Beijing will be grabbing many of the jobs of tomorrow. That will likely hasten the day when China becomes the world's No. 1 economic power.

"China sees [green technology] as an enormous market that is not claimed or controlled by any one nation, and there is an opportunity for them to do it," says Carberry. "The combination of urgency; the enormous needs; a focused, systematic planned government; an army of engineers; and access to capital may define China as the platform for the green- technology industry globally."

Mr. Westlake of Clearworld Now, echoing the 1980's song by the American rock band Timbuk3, puts it more pithily: "The future's so bright, you gotta wear shades."

http://features.csmonitor.com/environment/2009/08/10/china%e2%80%99s-green-leap-forward/

FM: China fulfills UN obligations

18:47, September 19, 2008

Chinese Vice Foreign Minister He Yafei said here Friday that China fulfilled its obligations to the United Nations.

According to He, there are currently 1,900 Chinese peace-keepers carrying out missions in 14 areas. China has the most peace-keepers among the five UN Security Council permanent members.

UN Peace Keepers in Congo, Africa

<<"Chinois" peacekeepers leave indelible impression in Haiti>>

http://english.peopledaily.com.cn/90001/90776/90883/6321666.html

Throughout its history with the UN, China has sent tens of thousands of Chinese soldiers, policemen and civilian officials to 18 UN peace-keeping missions.

UN Peace Keepers in Haiti, South America

At China Peace Keeping Headoffice in Haiti

Chinese (center female) and Brazilian Peace Keepers in Haiti

<<UN hopes China play bigger role in stabilizing Haiti>>

http://english.peopledaily.com.cn/90001/90776/90883/6317484.html

The vice minister also said China actively participates on the Security Council with the goal of peacefully solving regional issues through dialogue.

He said contributions to the UN continues to increase. Of the UN's total, China gave 0.995 percent in 2000. In 2007, the country's contribution was 2.667 percent ranking it ninth in the world and first among the developing countries.

"China's assistance has no political conditions and we are willing to share our success with development to all developing countries," He added.

He made the remarks while briefing reporters on Premier Wen Jiabao's upcoming UN visit.

Source: Xinhua

http://english.people.com.cn/90001/90776/90883/6502871.html

Don't Blame China (6)

Rather Than Point Fingers, U.S. Needs to Overhaul Its Own Financial System

<<The Washington Post>> in USA

By Simon Johnson and James Kwak

Tuesday, October 6, 2009; 12:31 AM

The time is here for our nation to actually do something about the recent financial crisis -- that is, do something to prevent it from happening again. But instead, many people are finding it easier to pass the buck than to, say, regulate the financial sector effectively.

The recent Group of 20 conference in Pittsburgh was replete with talk about "global imbalances," which means -- in the spirit of the "South Park" movie -- "blame China!"

According to this story, the global financial crisis was caused by hardworking Chinese factory workers who committed the sin of over-saving, which created a glut of money that needed to be invested, conceptualized in a great episode of public radio's "This American Life" as the "giant pool of money." (Japan and the oil exporters also had large surpluses, but for political reasons, the finger generally gets pointed at China.)

This beast from the East, seeking higher yields than it could find in Treasury bonds, flooded into the housing market, pushing down interest rates and pushing up housing prices, and creating a bubble that finally collapsed, with the results we all know. (More nuanced proponents of this theory hold, in a "fair and balanced" sort of way, that over-savers in China and under-savers in the United States -- and other countries, like Spain, Britain and Ireland -- are equally to blame; in any case, it's the imbalance that's the problem.) This is a convenient story because it absolves us of any need to put our own house in order through better regulation.

Like most errors, this story contains an element of truth. In general, it is not a good thing for a country to consume more than it produces indefinitely because to pay for its excess consumption it must borrow money from the rest of the world, and that country can consume more than it produces only if some other country produces more than it consumes. In particular, the U.S.-China imbalance is due in part to the Chinese policy of keeping its the value of its currency artificially low -- encouraging Americans (and other foreigners) to buy Chinese exports and discouraging its citizens from buying imported goods.

But the "blame China" story (or the "half-blame China" variant) suffers from serious problems. First, it takes two to tango. No one put a gun to the American consumer's head and forced him to buy a new flat-screen TV or to do so by taking out more debt. (Nor are the Chinese somehow morally superior to us; one reason why they save so much more than Americans is that, with no social safety net to speak of, they have to.)

Second, the Chinese government did not lend to American home buyers directly. China bought U.S. Treasury and agency (Fannie Mae, Freddie Mac, etc.) bonds, which put more money into housing and also crowded other people's money into housing. But the vast majority of Chinese money went into the safer bits of the U.S. financial system; the speculative money came largely from European banks. And all the actual lending decisions were made by financial intermediaries (banks, mortgage lenders, etc.), which made plenty of bad decisions along the way while regulators, from Alan Greenspan on down, looked the other way.

Third, there is no particular reason why a "giant pool of money" should produce a bubble. A savings glut should lower interest rates, which should increase the value of housing; a bubble occurs when prices go up more than dictated by fundamentals like as interest rates. If the run-up in housing prices was a direct result of over-saving in China, then housing prices should have fallen only if China stopped over-saving -- which has not happened.

While Chinese over-saving was a contributing factor to the recent crisis, it was neither necessary nor sufficient. Cheap money is not bad in and of itself -- all other things being equal, it's better to have people lending to you at low rates than at high rates. The problem is what we did with the cheap money.

For the long-term health of the economy, we want that money to flow into capital investment by the business sector because that is the best thing we know of to boost long-term productivity growth. Instead, though, Tim Duy has a great chart, showing that the rate of growth of investment in equipment and software in the 2000s was far below the rate in the 1990s, even with all the cheap money of this decade.

This may seem like an obscure point, but basically it means that even with the low rates of the Greenspan Fed, and even with all that cheap money from overseas, we couldn't get it where we needed it to go because it was being sucked up by the housing sector. And it was being sucked up by the housing sector because lenders earned fees for making loans that could not be paid back, and banks earned fees for packaging those loans into securities, and credit rating agencies earned fees for stamping "AAA" on those securities, and all sorts of financial institutions -- including those same banks -- loaded up on these securities because they offered high yield and low capital requirements. In short, we had a dysfunctional financial system that failed at its most fundamental job -- allocating capital to where it benefits the economy the most.

Encouraging productive investment by businesses and preventing the next bubble go hand in hand -- both require fixing the financial system. Blaming global imbalances -- a consequence bereft of either a subject (an actor) or a verb (an action) -- is only a way of avoiding our real problems.

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/06/AR2009100600017.html?sub=AR

The Recession's Real Winner(7)

China turns crisis into opportunity.

Published Oct 17, 2009 by Fareed Zakaria

From USA NEWSWEEK magazine issue dated Oct 26, 2009

One year ago, the leading governments of the world saved the global economy. Remember October 2008: Lehman Brothers had disappeared, AIG was teetering, every bank was watching its balance sheet collapse. Around the world, credit had frozen and trade was grinding to a halt. Then came a series of moves beginning in Washington-bank bailouts, rescue packages, fiscal stimuli, and, most crucially, monetary easing. It is not an exaggeration to say that these measures prevented a depression. But the crisis has still fueled a major slowdown that has affected every country in the world.

The great surprise of 2009 has been the resilience of the big emerging markets-India, China, Indonesia-whose economies have stayed vibrant. But one country has not just survived but thrived: China. The Chinese economy will grow at 8.5 percent this year, exports have rebounded to where they were in early 2008, foreign-exchange reserves have hit an all-time high of $2.3 trillion, and Beijing's stimulus package has launched the next great phase of infrastructure building in the country. Much of this has been driven by remarkably effective government policies. Charles Kaye, CEO of the global private-equity firm Warburg Pincus, lived in Hong Kong for years. After his last trip to China a few months ago he said to me, "All other governments have responded to this crisis defensively, protecting their weak spots. China has used it to move aggressively forward." It is fair to say that the winner of the global economic crisis is Beijing.

Almost every country in the Western world entered the crisis ill prepared. Governments were spending too much money and running high deficits, so when they had to spend massively to stabilize the economy, deficits zoomed into the stratosphere. Three years ago, European countries were required to have a budget deficit of less than 3 percent of GDP to qualify for EU membership. Next year, many will have deficits of about 8 percent of GDP. The U.S. deficit will be higher, in percentage terms, than at any point since World War II.

China entered the crisis in an entirely different position. It was running a budget surplus and had been raising interest rates to tamp down excessive growth. Its banks had been reining in consumer spending and excessive credit. So when the crisis hit, the Chinese government could adopt textbook policies to jump-start growth. It could lower interest rates, raise government spending, ease up on credit, and encourage consumers to start spending. Having been disciplined during the fat years, Beijing could now ease up during the lean ones.

And look at the nature of China's stimulus. Most of U.S. government spending is directed at consumption-in the form of subsidies, wages, health benefits, etc. The bulk of China's stimulus is going toward investment for future growth: infrastructure and new technologies. Having built 21st-century infrastructure for its first-tier cities in the last decade, Beijing will now build similar facilities for the second tier.

China will spend $200 billion on railways in the next two years, much of it for high-speed rail. The Beijing-Shanghai line will cut travel times between those two cities from 10 hours to four. The United States, by contrast, has designated less than $20 billion, to be spread out over more than a dozen projects, thus guaranteeing their failure. It's not just rail, of course. China will add 44,000 miles of new roads and 100 new airports in the next decade. And then there is shipping, where China has become the global leader. Two out of the world's three largest ports are Shanghai and Hong Kong.

China is also well aware of its dependence on imported oil and is acting in surprisingly farsighted ways. It now spends more on solar, wind, and battery technology than the United States does. Research by the investment bank Lazard Freres shows that of the top 10 companies (by market capitalization) in these three fields, four are Chinese. (Only three are American.) It is also making a massive investment in higher education.

"For the last decade, as China's economy kept growing at unprecedented rates, most Western analysts kept discussing when it would crash," says Zachary Karabell, the author of a smart new book, Superfusion, on the Sino-U.S. economy. "Now with China surging ahead through this crisis, all they can discuss is, when will China stall? It's as if they see the facts, but they can't quite make sense of them." China's strange mixture of state intervention, markets, dictatorship, and efficiency is puzzling. But it's time to stop hoping for China's failure and start understanding and adapting to its success.

Fareed Zakaria is editor of NEWSWEEK International and author

http://www.newsweek.com/id/218282

The Crisis Left China Better Off (8)

By ALAN WHEATLEY

Published by THE NEW YORK TIMES in USA: September 14, 2009

BEIJING - If any country can be said to have had a good crisis, it is China.

As global leaders prepare for their third emergency summit meeting in 10 months, China stands out as being in a stronger position today than it was before the convulsions brought about by the collapse of the investment bank Lehman Brothers a year ago this week.

China is too small to "save the world," even though it is the first major economy to pull decisively out of its downturn. But Beijing has earned respect for its rapid, overwhelming monetary and fiscal policy response to the crisis, and the country's banks have so far sailed serenely through the storm.

Even global investors are increasingly taking their cue from Shanghai's notoriously volatile stock market.

"China is walking taller on the world stage than it was a year ago," said Mark Williams with Capital Economics in London. "There's a degree of confidence in their own thinking and way of policy making that they maybe didn't have 12 to 18 months ago."

Back then, Washington was constantly urging Beijing to let the yuan rise in value and to deregulate its markets.

Now, with the Group of 20 rich and emerging economies gathering in Pittsburgh next week, the shoe is on the other foot.

A chastened United States not only has put its calls for speedier reform of China's financial sector on mute but has been compelled to defend itself against repeated charges by China of a malign neglect of the dollar.

Andy Rothman, a macro strategist for the broker CLSA in Shanghai, said it was wrong to think of events of the past year as a shift in the balance of financial power, because the U.S. economy was still so much bigger than China's.

But he said those events could well prove a turning point in attitudes and how the two countries deal with each other. Moreover, China is now an integral part of the global policy debate, even though it is not formally a member of the Group of 8 industrial nations.

"In the past, the Chinese have probably felt that they were treated too much as a younger, inexperienced cousin in dealing with the G-8. But now they feel that their responses to the global crisis and the situation here have demonstrated that they should be treated on equal terms," Mr. Rothman said.

Michael Kurtz, an economist in Shanghai with Macquarie, agreed. As a result of the crisis, China's legitimate interests as a major stakeholder in the dollar and other currencies in which it has invested its $2.13 trillion in official reserves are suddenly being catered to more actively than in the past.

"It's not that China has accrued more power so much as that China is revealing itself as being willing to wield that financial power in more diverse ways than in the past. So it's causing the global community to sit up and take much more notice," he said.

Markets are particularly twitchy about Beijing's goal of gradually reducing the primacy of the dollar in global trade and finance. The central bank governor, Zhou Xiaochuan, has proposed instead a greater role for the special drawing right, the International Monetary Fund's in-house unit of account.

Mr. Rothman at CLSA plays down the importance of Mr. Zhou's proposal, and Chinese policy makers acknowledge that there is no practical alternative to the dollar as the world's main reserve currency.

But there is deep concern that Washington will be unable politically to withdraw the monetary and fiscal stimulus it has injected into the U.S. economy in time to prevent a spike in inflation and the debasement of the dollar.

Accordingly, researchers say, China is likely to keep using its newfound influence to promote the yuan as a trade settlement currency, despite a lukewarm response to initial pilot efforts.

"The goal is risk mitigation," said Mr. Kurtz of Macquarie. "China knows they are now disproportionately exposed to dollar risks in the medium to long term."

A related policy priority is to nurture what Mr. Kurtz called a more permissive environment for cross-border mergers and acquisitions so that China does not find the door slammed in its face when it goes shopping for energy and natural resources.

"They need to find ways to convert their massive dollar stockpile into assets that in some measure contribute to China's long-term economic well-being and self-interest," he said.

Despite China's greater assertiveness since the onset of the crisis, some foreign politicians believe Beijing could and should be doing much more.

"China is at great pains to tread lightly as it grows," Britain's business secretary, Peter Mandelson, said in Beijing last week. "But there is now no alternative to the full leadership role that its economic status deserves."

That judgment seems harsh. Yes, China could suck in more goods from the world by letting the yuan resume its rise and opening its markets wider.

If it did, it would also be less vulnerable politically to charges that its exporters sometimes sell at unfairly low prices, as in the U.S. decision to slap duties on low-cost Chinese tires last week.

But Beijing is playing an increasingly active role in Asian policy making circles, in the World Trade Organization and in the debate over the shape of international financial institutions. The days when China was content to sit on the sidelines are over.

"It's not as though there's some new Chinese model that they can now go out and start aggressively shopping to the world. They don't have that more than anyone else ever did," Mr. Kurtz said.

"Therefore I'm not sure they become more influential in terms of being able to peddle a particular consensus or growth model to the rest of the world. They can't. They have to struggle with 'what do we do now,' just like everyone else does."

Alan Wheatley is a Reuters columnist.

http://www.nytimes.com/2009/09/15/business/global/15inside.html?_r=1&scp=1&sq=ALAN%20WHEATLEY&st=cse

Understanding China

2009/12/14

Speech at the English Speaking Union

By Fu Ying, Chinese ambassador in UK

Fu Ying carries the Olympic torch through London

Lord Hunt,

Ladies and Gentlemen,

It is a great honor for me to be invited to speak at the Churchill Lecture. And it is a special honor to have Lady Soames with us in the audience.

Sir Winston Churchill was a man of many great accomplishments. The fact that he was the first Chairman of the ESU, is a clear indication of his commitment to promoting peace and understanding across the world through the use of the English language.

When I was a student in the UK 24 years ago, I bought his autobiography when visiting Chartwell House. Buying books was luxury for me at that time and I valued it and read from cover to cover.

I was deeply struck by Sir Winston's attitude towards learning.

When still a backbencher, he already distinguished himself in the Commons and was seen as a bright young man.

He explained that no one can be bright, without learning and disclosed how he devoted hours and days finding the background of the facts from books in the corridors of Westminster every time before asking the two-minute question.

This inspired me greatly especially, when my classes got harder.

To this day, I still work very hard on every speech or interview I take, including this one and I thank the English Speaking Union for giving me a unique training course in Oxford for speaking and debating skill during my study in UK.

I hope the training worked for me or, if you judge me to be a poor speaker today, at least you know where part of the blame lies.

Today, I have entitled my speech as Understanding China.

According to Global Language Monitor, an American research body following the global media reporting, on its list of the Top News Stories of the Decade, the rise of China came as the first, even well ahead of 9/11 and the war in Iraq.

But I think 2009 will probably be remembered in our history, as China's transition into playing a major role in the world.

Here in London, I could clearly sense China's emergence onto the world stage.

During the G20 London Summit, the close cooperation between China, US, UK and other countries shows that China has come to the centre stage of addressing global issues.

During his recent visit to China, President Obama referred to China's playing a larger role in global events as one of the most important things happened over the last two decades.

He welcomed it and said that US looked forward to being an effective partner with China.

However, many people in the Western world find it difficult to understand China.

On the other hand, there is also wariness on the part of the Chinese people about the Western world's intention on China.

So after all, how can one define China? I'm afraid it defies a simple answer. China is too big, too diverse and too fast changing to be characterized easily. I would say that China is a multi-faceted power.

Let me explain what I mean.

First, China is a country that is rapidly transformed over the past 30 years. China's leapfrogging progress can be seen in the following figures:

In 1996, China's GDP was 1 trillion Yuan, that was about 100 billion Pounds. In 2008, it grew to20 trillion Yuan (2 trillion Pounds). This means that in 13 years' time, the Chinese economy has grown 20 times, turning into the 3rd largest economy in the world.

The national wealth created in one day in 2008 was larger than the total annual output of 1952.

With the newly gained wealth, China has lifted 250 million people out of poverty in the past 30 years.

So when I read the UN hunger report, I do feel proud for what China has achieved, with only 7% of the world's arable land feeding 20% of the world's population.

Throughout China's long history, food was always a big concern for the Chinese people and I remember that until the 1980s, the Chinese people greeted each other by asking "Have you had your meal?"

But for my daughter's generation, if you greet them in this way, they might think you have a problem.

Naturally, China is still learning and adjusting to its new global role, as it lacks historical experience of operating on the global stage and also it is still very much preoccupied by domestic concerns and challenges.

That lead to my second point, China is still a developing country. We in China are more conscious of our weaknesses and the challenges facing our country.

People tend to forget that China's GDP in per capita term is only a little more than 3,000 dollars, ranking us as 104th in the world. We are behind countries like Jamaica and Namibia.

UK's per capita GDP is 13 times higher than China. I wonder if you remember when in history the United Kingdom was at this income level? According to British Economist Angus Maddison: It was as far back as 1913.

China's manufacturing is at a fairly low value added level and most of the made in China products are made with the world as the design and key parts are often imported. We may have to export a container full of shoes and socks to pay for a tiny computer chip.

China also faces the serious challenge of uneven development. Many foreigners come to vibrant Beijing or Shanghai and think they have seen China. But for those who have visited China's far west, will have a different experience and understanding.

China is still in the early stage of industrialization and urbanization, with sixty five percent of its people live in the rural areas. You may be surprised to know that one hundred and thirty five million Chinese people live under less than one dollar a day.

We can't be conceited with what we have achieved. This is why Chinese leaders often say that we need to be aware of the difficulties and risks, even when we are enjoying stability and prosperity.

That is not to say that China should ignore the growing expectations in the world for China to take on global responsibilities.

So my third point is about China learning to undertake new international responsibilities.

As the Chinese President Hu Jintao remarked, China's destiny has never been so closely linked with the destiny of the world.

One of the reasons why the rise of China was such a hot topic is that, many people, especially scholars can't be certain how China is going to exert its influence as a new world power and would China too fall into the track of military expansion of the previous powers.

What I want to say is that China being an economic power is not new to the world. It was the most important economic powerhouse for hundreds of years before the 18th Century. Its manufacturing was at times more than half of the world's total.

However, expansionism was not in China's cultural genes. In Dynasty after dynasty, the Chinese built up the Great Wall to fend off the nomadic tribes.

Coming into the 21 century, China gained economic growth mainly through active trading with the world and by benefiting from a relatively peaceful world environment.

Today we live in a globalised world with an unprecedented degree of interdependences among countries and the convergence of their interests.

That is why China set the tone for its relationship with the world as: peace, development and cooperation.

Secretary Hillary Clinton, when visiting China, captured this spirit of the times with a Chinese idiom "fighting the storm in the same boat".

This accurately depicts the nature of China's relationship with the United States, Europe and all other countries amidst the financial crisis.

In 1992 when I was serving with a UN peace keeping mission, I was always asked are you from Korea or Philippines? Now, among the P5, China is the largest troop contributing country to the UN peace keeping missions worldwide, totaling 14 000.

China has also been a serious contributor to global poverty reduction and development efforts. China-Africa relationship is a good case in point.

Premier Wen Jiabao announced at the recent China-Africa Cooperation Forum a series of assistance to African countries. Apart from offering concessional loans and removing debts, China will also build 50 new schools, train 1,500 headmasters and teachers, and give 5,500 scholarships.

China and UK are also exploring possibilities working together on some of the African projects.

Now, with the Copenhagen Conference heating up, I should also mention China's role in the global fight against climate change.

China believes in the need for cutting emission to counter global warming. We are experiencing more bouts of extreme weather. The fast economic growth has also resulted in serious environmental damages which urgently need to be addressed.

Though a developing country, China started voluntary reduction of its emission intensity and set new targets for 2020 to further reducing its carbon intensity per unit of GDP by 40-45%.

China will also continue to expand forest coverage by 40 million hectares, that is bigger than one and half times the size of UK.

According to the International Energy Agency, if China fulfils its target for 2020, it will have reduced its emissions of CO2 by 1 billion tons. That will be a great achievement.

But when discussing climate change, the issue in not only related to facts and figures, there is also the human dimension.

Imagine when electricity reaches a Chinese village, not only are the farmers able to drill deeper for water, but also their children would be able to watch TV for the first time and see the wonderful outside world.

They of course will dream about a better life and all the things that come with it.

Who are we to tell them that they have no right to the kind of life in Shanghai or London they see on TV?

China's difficult mission is to enable all of our 1.3 billion people to have the opportunity to realize their dreams, but to achieve it in an environmentally responsible way. The only way we will make that leap is through investing in science and technology.

China believes in a balance between rights and obligations. China's emission per person is 4.6 tons, compared with 20 tons in America and 8.7 tons in Britain.

Between 1750 and 2005, developed countries accounted for 80% of the world's CO2 emissions. Even today, with only 20% of the world's population, developed countries pump more than 55% of the total emissions into the atmosphere.

That is why we support the idea that developed countries should take the lead in emission reduction in Copenhagen according to the principle of common but differentiated responsibilities, and that they should increase technology transfer and funding for developing countries. This is ultimately about fairness and equal right to development.

China's relationship with the world is still evolving. Greater knowledge of the outside world and greater knowledge by the outside world of China are essential to greater understanding and cooperation between China and the world.

China is embracing the world with enthusiasm and English learning has become very popular. 20 million more people take up English learning every year. Olympics was a great promoter and even housewives and taxi-drivers were learning English before the games.

Indeed, the language barrier can be a big factor affecting understanding. To give you an example, an important principle in China's diplomacy is "Taoguangyanghui"(stay away from the limelight), which was proposed by Deng Xiaoping in the 1990s.

It was time of great changes in the world and some people wanted to draw China into the debate in the world about the right and wrongs of the cold war and its related issues.

By quoting a historical proverb, Mr. Deng, wanted to say that we should focus on our own economic development and refrain from attempting things beyond us. This is still a guiding principle for us.

For whatever reason, an American scholar translated it for the Pentagon as "biting the teeth and waiting for the time". One doesn't need much imagination to see how this can fuel the China threat theory.

Many misunderstanding of China are to some extent a result of miscommunication.

When President Obama was visiting China, some media completely ignored the warm debate among the Chinese bloggers on the Chinese web and media, about China US relations and about China and the world.

In China, there are 2000 newspapers and 9000 magazines. 230,000 books are published every year. There are 360 million internet users including 180 million bloggers. So there is a very lively public expressing their views sometimes positive and sometimes critical on almost everything.

But very few people outside China follow this fast growing information flow.

Between China and the Western world, China has always read more about the Western World than vise versa. Chinese translation of Western literature and science has grown in strength since the 1920s and is still very strong and are widely read.

It is impossible for Chinese student to enter the university without knowing some British literature and the history of industrialization.

Now with more Chinese reading English, you can find shelves of original English books in the bookstores in Chinese cities.

However this two way traffic is not evenly matched, as you can find very little about China even in the school and university libraries, let alone in the book shops.

As time moves on we are seeing the older generation of language experts fading away. David Hawkes, a Sinologist at Oxford, who translated the ancient Chinese classic The Story of the Stone passed away last summer.

When I visited him at his home last spring, I could not help realizing his loneliness. His great work is little known here.

On the Chinese side, the famous Chinese translator who turn many Chinese classics and poems into English, Mr. Yang Xianyi also passed away recently.

We now urgently need a new generation of Chinese-English translators to continue the work and efforts of great men like them.

China has stretched out its hand to the world. There are now 282 Confucius Institutes and 241 Confucius Classrooms set up in 87 countries, including in the UK. We are glad that the world is taking China's hand.

Here in UK, more and more schools are taking up Chinese language teaching.

There are about 3000 British students studying in China and 80,000 Chinese students in the UK. I hope more bridges will be built by them.

President Obama announced in Shanghai that a hundred thousand American students will come to China in the next four years. Similar measures could also be taken by this country.

Before concluding, I want to say that we appreciate the ESU's years of effort to cultivate the learning of English in China. What you did decades ago is bearing fruit and you can take some credit for China's engagement with the world today.

Now the world needs to know China better. I would like to see ESU playing a growing role in this new era and be an indispensable bridge for the partnership between China and the UK and China and the world.

Thank you.

http://www.fmprc.gov.cn/eng/errorpath/t633255.htm

Five Things the U.S. Can Learn from China

By bill powell

Shanghai Thursday, Nov. 12, 2009

Printed by USA <<Time>>

On the evening of Nov. 15, President Barack Obama, the youthful leader of one of the world's youngest countries, begins his first visit to China, among the world's most ancient societies. Obama and his Chinese counterpart, Hu Jintao, have much to discuss. Nukes in Iran and North Korea. China's surging military spending. Trade imbalances. Climate change.

But the visit comes at an awkward moment for the U.S. China, despite its 5,000-year burden of history, has emerged as a dynamo of optimism, experimentation and growth. It has defied the global economic slump, and the sense that it's the world's ascendant power has never been stronger. The U.S., by contrast, seems suddenly older and frailer. America's national mood is still in a funk, its economy foundering, its red-vs.-blue politics as rancorous as ever. The U.S. may be one of the world's oldest capitalist countries and China one of the youngest, but you couldn't blame Obama if he leaned over to Hu at some point and asked, "What are you guys doing right?"

Could the world's lone but weary superpower actually learn something from China? It's a politically incorrect question, of course. China is an authoritarian nation; its ruling Communist Party deals ruthlessly with any challenge to its hegemony. It remains, relatively speaking, a poor, developing country with huge problems to confront, massive corruption and environmental degradation being Nos. 1 and 1a. Still, this is a moment of humility for the U.S., and China is doing some important things right. If the U.S. were to ask the Chinese what it could learn from their example, it might gain some insight into what it's doing right and wrong. Here are five lessons from China's success story:

Masons at work in front of the China Pavilion at the future site of Expo 2010 in Shanghai.

1. Be Ambitious

One day this summer, Sean Maloney, an executive vice president at Intel, was bouncing from one appointment to another in northeastern China, speeding along in a van traversing newly built highways. He gazed out at one of the world's biggest construction projects: a network of high-speed train lines - covering 10,000 miles (16,000 km) nationwide - that China is building. As far as the eye could see, there sat vast concrete support struts, one after another, exactly 246 ft. (75 m) apart. Each was full of steel cables and weighed about 800 tons. "We used to build stuff too," Maloney mused, unprompted. "But now it's NIMBY [not in my backyard] every time you try to do something. Here," he joked, "it's more like IMBY. There's stuff happening here, everywhere and always."

It's not just NIMBYism that constrains the U.S. these days, of course. America is close to tapped out financially, with budget deficits this year and next exceeding $1 trillion and forecast to remain above $500 billion through 2019. But sometimes the country seems tapped out in terms of vision and investment for the future.

Some economists believe that given its stage of development, China spends too much on expensive items like high-speed rail lines. But step back from the individual infrastructure projects and the debates about whether a given investment is necessary, and what's palpable in China is the sense of forward motion, of energy. No foreigner - at least not one I've met in five years of living here - even bothers denying it. And the Chinese take it for granted. When a brand-new six-lane highway opened in suburban Shanghai in October, Zhong Li Ping, who shuttles migrant workers to the city and back to their hometowns, said, "I don't know what took them so long." In truth, it took about two years - roughly the time it would take to get the environmental and other regulatory permits for a new highway in the U.S. If, that is, you could get them at all.

There's no direct translation into Chinese of the phrase can-do spirit. But yong wang zhi qian probably suffices. Literally, it means "march forward courageously." China has - and has had for years now - a can-do spirit that's unmistakable. Americans know the phrase well. They invented it. It used to define them.

Critics of the authoritarian Chinese government would say it's a system more accurately called "can do - or else." And they have a point. No one in the U.S. would argue that it should adopt China's dictatorial style of government. America doesn't need to displace tens of thousands of people in order to build a massive dam, as China did in Hubei province from 1994 to 2006. (The value of checks and balances is, in fact, among the many things China could learn from the U.S.) But you don't have to be a card-carrying communist to wonder how effectively the U.S. develops and executes ambitious projects. Ask James McGregor. He's a former chairman of the American Chamber of Commerce in China and now a business consultant who divides his time between the two countries. "One key thing we can learn from China is setting goals, making plans and focusing on moving the country ahead as a nation," he says. "These guys have taken the old five-year plans and stood them on their head. Instead of deciding which factory gets which raw materials, which products are made, how they are priced and where they are sold, their planning now consists of 'How do we build a world-class silicon-chip industry in five years? How do we become a global player in car-manufacturing?'"

Some of this is the natural arc of a huge, fast-growing country in the process of modernization. The U.S. in the late 19th century was nothing if not what Intel's Maloney would call an IMBY country. America was ambitious. There's no secret formula to help the nation get back its zeal for what it used to enthusiastically and sincerely call progress. But even though the U.S. is a mature, developed country, many economists believe it has shortchanged infrastructure investment for decades. It possibly did so again in this year's stimulus package. Just $144 billion of the $787 billion stimulus bill Congress passed earlier this year went to direct infrastructure spending. According to IHS Global Insight, an economic-consulting firm, U.S. spending on transportation infrastructure will actually decline overall in 2009 when state budgets are factored in - this at a time when the American Society of Civil Engineers contends that the U.S. should invest $1.6 trillion to upgrade its aging infrastructure over the next five years.

But it's not just emergency spending on bridges, roads and high-speed rail networks that's helping growth in China. Patrick Tam, general partner at Tsing Capital, a venture-capital firm in Beijing, says the government is aggressively helping seed the development of new green-tech industries. An example: 13 of China's biggest cities will have all-electric bus fleets within five years. "China is eventually going to dominate the industry for electric vehicles," Tam says, "in part because the central government has both the vision and the financial wherewithal to make that happen." Tam, a graduate of MIT and the University of California, Berkeley, says he does deals in Beijing rather than Silicon Valley these days "because I believe this is where these new industries will really take shape. China's got the energy, the drive and the market to do it." Isn't that the sort of thing venture capitalists used to say about the U.S.?

China's schools are adding more creative and practical topics to their notoriously rigid curriculum.

2. Education Matters

On a recent Saturday afternoon, at a nice restaurant in central Shanghai, Liu Zhi-he sat fidgeting at the table, knowing that it was about time for him to leave. All around him sat relatives from an extended family that had gathered for a momentous occasion: the 90th birthday of Liu's great-grandmother Ling Shu Zhen, the still spry and elegant matriarch of a sprawling clan. But Liu had to leave because it was time for him to go to school. This Saturday, as he does every Saturday, Liu was attending two special classes. He takes a math tutorial, and he studies English.

Liu is 7 years old.

A lot of foreigners - and, indeed, a fair number of Chinese - believe that the obsession (and that's the right word) with education in China is overdone. The system stresses rote memorization. It drives kids crazy - aren't 7-year-olds supposed to have fun on Saturday afternoons? - and doesn't necessarily prepare them, economically speaking, for the job market or, emotionally speaking, for adulthood. Add to that the fact that the system, while incredibly competitive, has become corrupt.

All true - and all, for the most part, beside the point. After decades of investment in an educational system that reaches the remotest peasant villages, the literacy rate in China is now over 90%. (The U.S.'s is 86%.) And in urban China, in particular, students don't just learn to read. They learn math. They learn science. As William McCahill, a former deputy chief of mission in the U.S. embassy in Beijing, says, "Fundamentally, they are getting the basics right, particularly in math and science. We need to do the same. Their kids are often ahead of ours."

What the Chinese can teach are verities, home truths that have started to make a comeback in the U.S. but that could still use a push. The Chinese understand that there is no substitute for putting in the hours and doing the work. And more than anything else, the kids in China do lots of work. In the U.S., according to a 2007 survey by the Department of Education, 37% of 10th-graders in 2002 spent more than 10 hours on homework each week. That's not bad; in fact, it's much better than it used to be (in 1980 a mere 7% of kids did that much work at home each week). But Chinese students, according to a 2006 report by the Asia Society, spend twice as many hours doing homework as do their U.S. peers.

Part of the reason is family involvement. Consider Liu, the 7-year-old who had to leave the birthday party to go to Saturday school. Both his parents work, so when he goes home each day, his grandparents are there to greet him and put him through his after-school paces. His mother says simply, "This is normal. All his classmates work like this after school."

Yes, big corporate employers in China will tell you the best students coming out of U.S. universities are just as bright as and, generally speaking, far more creative than their counterparts from China's ¨|lite universities. But the big hump in the bell curve - the majority of the school-age population - matters a lot for the economic health of countries. Simply put, the more smart, well-educated people there are - of the sort that hard work creates - the more economies (and companies) benefit. Remember what venture capitalist Tam said about China and the electric-vehicle industry. A single, relatively new company working on developing an electric-car battery - BYD Co. - employs an astounding 10,000 engineers.

And the Chinese government responds to that pressure in some intriguing ways. It insists that primary-school teachers in math and science have degrees in those subjects. (Less than half of eighth-grade math teachers in the U.S. majored in math.) There is a "master teacher" program nationwide that provides mentoring for younger teachers. Zhang Dianzhou, a professor emeritus of mathematics at East China Normal University in Shanghai who co-chaired a committee charged with redesigning high school mathematics programs across the country, says recent changes have begun to reflect more of a "real-world emphasis." Computer-science courses, for example, have been integrated into the math curriculum for high school students. And China is placing even more importance on teaching young students English and other foreign languages. If you think China's willingness to constantly fine-tune its educational system is not going to have much of an impact 20 years from now, there's a 7-year-old boy in Shanghai who'd be happy to discuss the issue with you. In English.

Most Chinese seniors live with and are cared for by their relatives.

3. Look After the Elderly

it's hard to imagine two societies that deal with their elderly as differently as the U.S. and China. And I can vouch for that firsthand. My wife Junling is a Shanghai native, and last month for the first time we visited my father at a nursing home in the U.S. She was shaken by the experience and later told me, "You know, in China, it's a great shame to put a parent into a nursing home." In China the social contract has been straightforward for centuries: parents raise children; then the children care for the parents as they reach their dotage. When, for example, real estate developer Jiang Xiao Li and his wife recently bought a new, larger apartment in Shanghai, they did so in part because they know that in a few years, his parents will move in with them. Jiang's parents will help take care of Jiang's daughter, and as they age, Jiang and his wife will help take care of them. As China slowly develops a better-funded and more reliable social-security system for retirees - which it has begun - the economic necessity of generations living together will diminish a bit. But no one believes that as China gets richer, the cultural norm will shift too significantly.

To a degree, of course, three generations living under one roof has long happened in the U.S., but in the 20th century, America became a particularly mobile and rootless society. It is hard to care for one's parents when they live three time zones away.

Home care for the elderly will most likely make a comeback in the U.S. out of sheer economic necessity, however. The number of elderly Americans will soar from 38.6 million in 2007 to 71.5 million in 2030. But, says Arnold Eppel, who recently retired as head of the department of aging in Baltimore County, Maryland, "There won't be enough spots for them" in the country's overwhelmed nursing-home system. Appreciating the magnitude of the coming crisis, the U.S. government has begun to respond. Two new initiatives - Nursing Home Diversion and Money Follows the Person - expand subsidies for home elder care, and the Veterans Health Administration has just put in effect its own similar initiative. "The whole trend will be into home care, because nursing homes are too expensive," Eppel says, noting that nursing-home care in the U.S. costs about $85,000 annually per resident.

In China, senior-care costs are, for the most part, borne by families. For millions of poor Chinese, that's a burden as well as a responsibility, and it unquestionably skews both spending and saving patterns in ways that China needs to change (see Save More, below). For middle-class and rich Chinese, those costs are a more manageable responsibility but one that nonetheless ripples through their economic decision-making. Still, there are benefits that balance the financial hardship: grandparents tutor young children while Mom and Dad work; they acculturate the youngest generation to the values of family and nation; they provide a sense of cultural continuity that helps bind a society. China needs to make obvious changes to its elder-care system as it becomes a wealthier society, but as millions of U.S. families make the brutal decision about whether to send aging parents into nursing homes, a bigger dose of the Chinese ethos may well be returning to America.

4. Save More

You've now heard it so many times, you can probably repeat it in your sleep. President Obama will no doubt make the point publicly when he gets to Beijing: the Chinese need to spend more; they need to consume more; they need - believe it or not - to become more like Americans, for the sake of the global economy.

In China, the household-savings rate exceeds 20%. It is partly for straightforward policy reasons. As we've seen, wage earners are expected to care for not only their children but also their aging parents. And there is, to date, only the flimsiest of publicly funded health care and pension systems, which increases incentives for individuals to save while they are working. But China, like many other East Asian countries, is a society that has esteemed personal financial prudence for centuries. There is no chance that will change anytime soon, even if the government creates a better social safety net and successfully encourages greater consumer spending.

Why does the U.S. need to learn a little frugality? Because healthy savings rates, including government and business savings, are one of the surest indicators of a country's long-term financial health. High savings lead, over time, to increased investment, which in turn generates productivity gains, innovation and job growth. In short, savings are the seed corn of a good economic harvest.

The U.S. government thus needs to get in on the act as well. By running perennial deficits, it is dis-saving, even as households save more. Peter Orszag, Obama's Budget Director, recently called the U.S. budget deficits unsustainable - this year's is $1.4 trillion - and he's right. To date, the U.S. has seemed unable to have what Indiana Governor Mitch Daniels has called an "adult conversation" about the consequences of spending so much more than is taken in. That needs to change. And though Hu Jintao and the rest of the Chinese leadership aren't inclined to lecture visiting Presidents, he might gently hint that Beijing is getting a little nervous about the value of the dollar - which has fallen 15% since March, in large part because of increasing fears that America's debt load is becoming unmanageable.

That's what happens when you're the world's biggest creditor: you get to drop hints like that, which would be enough by themselves to create international economic havoc if they were ever leaked. (Every time any official in Beijing muses publicly about seeking an alternative to the U.S. dollar for the $2.1 trillion China holds in reserve, currency traders have a heart attack.) If Americans became a bit more like the Chinese - if they saved more and spent less, consistently over time - they wouldn't have to worry about all that.

China is experimenting with eco-friendly technologies, from electric cars to urban wind turbines like this one in southeastern Shanghai.

5. Look over the Horizon

The energy that so many outsiders feel when they are in China and that President Obama may see when he is there comes not just from the frenetic activity that is visible everywhere. It comes also from a sense that it's harnessed to something bigger. The government isn't frantically building all this infrastructure just to create make-work jobs. And kids aren't studying themselves sleepless because it's a lot of fun. A few years ago, I interviewed Zhang Xin, a young man from a deeply poor agricultural province in central China. His parents were wheat farmers and lived in a tiny one-room house next to the fields. He had graduated from Tsinghua University - China's MIT - and gotten a job as a software engineer at Huawei, the Cisco of China. His success, Zhang told me one day, had changed his family forever. None of his descendants would "ever work in the wheat fields again. Not my children. Not their children. That life is over." (And neither would his parents. They moved to prosperous Shenzhen, just north of Hong Kong, soon after he started his new job.)

Multiply that young man's story by millions, and you get a sense of what a forward-looking country this once very backward society has become. A smart American who lived in China for years and who wants to avoid being identified publicly (perhaps because he'd be labeled a "panda hugger," the timeworn epithet tossed at anyone who has anything good to say about China) puts it this way: "China is striving to become what it has not yet become. It is upwardly mobile, consciously, avowedly and - as its track record continues to strengthen - proudly so."

Proudly so, because as Zhang understood, hard work today means a much better life decades from now for those who will inherit what he helped create. And if that sounds familiar to Americans - marooned, for the moment, in the deepest recession in 26 years - it should.

http://www.time.com/time/world/article/0,8599,1938671,00.html

In 2008, China impresses world in unprecedented way(a)

www.chinaview.cn 2008-12-24 11:02:01

BEIJING, Dec. 24 (Xinhua) -- In 2008, the world has come to know China with the hitherto unprecedented scope, depth, and first-hand perception.

It has been an unusual year for China -- it faced up to unprecedented challenges brought about by the snow disaster in the south and the calamitous earthquake in the southwest, and took great delight in successfully hosting a spectacular Olympics gala and accomplishing the historic feat by completing the nation's first spacewalk.

In a year when the world has been undergoing a profound change, China has opened its doors wider with broad-mindedness, increased confidence and a stronger determination to improve itself, and shouldered a greater responsibility in global political and financial affairs.

China and the rest of the world have become more closely linked. As Chinese Foreign Minister Yang Jiechi put it: "Historic changes are taking place in the relationship between China and the world as a whole."

Riding out Difficulties, China Held in Higher Esteem by World

The expected and unexpected events that happened in China this year have drawn global attention.

On May 12, an 8.0-magnitude earthquake jolted southwest China, causing huge casualties and massive destruction. United as one and standing up to combat the disaster with prompt and effective rescue efforts, China won sympathy and respect from the world.

On Aug. 8, the Beijing Olympiad captivated some 2 billion spectators and TV audience worldwide with its splendid opening ceremony, enabling them to enjoy a charming night that epitomizes China's 5,000-year civilization.

The Beijing Olympiad drew a record number of 204 sports delegations that cover the widest ever geographical areas in the Games' history, and was given heavy coverage by world media. This has enabled the world to see not only a "truly exceptional" Olympiad, but also a more open and colorful China.

Then China impressed the world again by launching the Shenzhou VII spacecraft into space and accomplishing its maiden space walk. The feat has made China the third country in the world to stage extra-vehicular activity and the only developing country capable of manned space exploration.

Commenting on Chinese taikonaut Zhai Zhigang's space walk, Reuters had this to say: "Zhai's brief but historic outing in a Chinese-designed space suit... capped a year in which the country has both coped with the tragedy of the devastating Sichuan earthquake and reveled in the Beijing Olympics."

Cherishing Justice, Peace, China Pushes for More Harmonious World

In 2008, China integrated further with the rest of the world, played a bigger role in global affairs and bore greater responsibilities.

In accordance with the concept of establishing a harmonious world, China continued to enhance the sound growth of mutually beneficial, reciprocal and cooperative ties with the United States, Russia and the European Union in 2008.

It also made new headway in strengthening cooperation with Latin American and the Caribbean countries. Its policy toward neighboring countries has yielded good results. China's partnership with African countries was further enhanced, by writing off debts, increasing low-interest loans and beefing up technical aid to Africa.

UN Deputy Secretary-General Asha-Rose Migiro said China's efforts contributed to the attainment of the Millenniums Development Goals set by the United Nations.

The nuclear issue on the Korean Peninsula made new breakthroughs within the framework of the six-party talks, with the denuclearization process speeded up, and tensions between the Democratic People's Republic of Korea (DPRK) and the United States temporarily eased.

As host of the six-party talks, China has made protracted, patient and painstaking mediation efforts. DPRK top leader Kim Jong Il lauded in June China's vital role in the talks, which he said had led to many important consensus despite twists and turns.

On her part, U.S. Secretary of State Codoleezza Rice said China played a key role in pushing the disabling process of DPRK's nuclear facilities.

In the outgoing year, China continued its diplomatic efforts to help solve Iran's nuclear issue, push forward the Mideast peace process and settle other hot-spot issues. It was also actively engaged in international peacekeeping missions in Lebanon, Liberia, Congo, Haiti, Sudan and Kosovo.

China readily extended a helping hand to countries hit by natural disasters, offering timely assistance to hurricane-devastated Burma, Cuba, Jamaica, the United States, the Philippines, and Vietnam, and the earthquake-stricken Pakistan and Japan.

As former British Prime Minister Tony Blair put it: "The truth is that nothing in the 21st Century will work well without China's full engagement."

Urging Cooperation, China Joins World in Facing up to Challenges

In a bid to win greater say for the developing countries, China in 2008 devoted itself more vigorously and extensively to tackling global issues, such as global climate change, soaring food prices, energy shortage and the world financial meltdown.

In the principle of common but differentiated responsibilities, China has actively taken part in the global efforts to tackle climate change, contributing to enacting relevant laws and regulations on dealing with climate change.

In face of the worldwide food crisis, China has provided aid to international food organizations and some developing countries plagued by food crisis, while taking measures to ensure its own food security.

Officials with the Food and Agriculture Organization said that China has managed to keep its food price down amid global food crisis and contributed a great deal to stabilizing world food market. China will be, as it has been, a major force in ensuring world food security, they noted.

At the G20 summit in Washington, Chinese President Hu Jintao urged the international community to earnestly draw lessons from the ongoing financial crisis and undertake necessary reform of the international financial system through full consultations among all stakeholders.

"Reform of the international financial system should aim at establishing a new international financial order that is fair, just, inclusive and orderly and fostering an institutional environment conducive to sound global economic development," Hu said.

Shortly before the summit, China announced a stimulus package estimated at 4 trillion yuan (about 570 billion U.S. dollars), planning to spend the money to finance programs in 10 major areas, such as low-income housing, rural infrastructure and transportation.

In an editorial, Singapore's newspaper Lianhe Zaobao noted that China's measures are concrete contributions to world economy.

Mansoor Dailami, a senior economist at the World Bank, said China's economic stimulus package is "a right step at the right time."

"China showing the desire to coordinate in terms of stimulating the world economy at this very critical moment is something that should be noted," he said.

A UN report on World Economic Situation and Prospects 2009 put China's economy growth this year at 9.1 percent, with its contribution to global economic growth rising to 22 percent. The report said China will make a major contribution to global economic growth if it maintains an 8 percent growth next year.

In retrospect, a more open China has added vitality to the world by promoting mutually beneficial and win-win solution, In the future, a more developed China is expected to contribute further more to world peace and prosperity.

http://news.xinhuanet.com/english/2008-12/24/content_10552236.htm

Details of snow disaster

http://www.xinhuanet.com/english/08snow/index.htm

Details of earthquake

http://www.chinaview.cn/08quake/

Details of Olympics

http://www.chinaview.cn/08olympics/index.htm

Details of spacewalk

http://www.chinaview.cn/shenzhou7/

China's reform contributes to world civilization(b)

www.chinaview.cn 2008-11-18 16:26:23

by Zhang Yongxing

SINGAPORE, Nov. 18 (Xinhua) -- China's reform and opening-up policies over the past three decades have not only greatly changed the country, but also contributed much to the development of world civilization, a Singaporean expert said in a recent interview with Xinhua.

Zheng Yongnian, Director of East Asian Institute, National University of Singapore, said that China initiated its reform and opening-up policy in 1978 when the country was in a backward and closed or semi-closed state with its economy on the brink of collapse.

The then Chinese leaders resolutely and courageously carried out the reform and opening-up policies, a critical step that has since shaped the course of development of contemporary China.

The past 30 years have witnessed tremendous changes in all social aspects, with the mushrooming of new buildings and the freeing mindsets of the Chinese people, he said, adding that China has stood up and the Chinese people have regained their self-confidence.

The policy of reform and opening-up has injected vigor and vitality into the nation, and has greatly promoted its economic and social development, Zheng said.

Zheng attributed the success to Chinese leaders' political determination and willingness as well as the country's political system, which can and has mobilized the whole nation to reach its goal of modernization.

The Chinese leaders, clear about the situation of the country, have the ability to adjust the policies to ensure the continuity of reform and opening-up, he said. The policies, in the fundamental interests of the Chinese people, have freed people's mindsets and boosted their initiatives.

Zheng said that China has now grown into an open economy after the planned economic system was gradually replaced by a vibrant socialist market economic system that has basically taken shape.

Hailing China's new mode of development, Zheng said the country has the ability to find a mode of development that is different from those of the developed countries and is benefiting other developing countries.

The 30 years of reform and opening-up have helped China integrate itself with the global economic system, which, in return, has stimulated China to push forward its reform and development, Zheng added.

Believing China's progress is a good thing for the whole world, he detailed that China had committed to prevent its currency from depreciation in 1997, while this time the Chinese government has pledged to continuously guard the stability of its financial and capital market in a positive and responsible way.

In Zheng's views, China is playing and will play a bigger role in regional and international affairs.

"Nowadays, we can not see it as a world without China, We can not see a perfect development of regionalism and globalization without China, and nothing can work well without China's full engagement," he said.

Zheng said that believes that peace and development remain the main trend of the world today, and the international environment as a whole is favorable to China's development.

Now it is important for China to double its efforts to address such challenges as environmental pollution in order to maintain harmonious and sustainable growth for its economy, Zheng said.

http://news.xinhuanet.com/english/2008-11/18/content_10376471.htm

Beijing Olympics -- China's come-of-age show

www.chinaview.cn 2008-12-24 09:53:34

By Sportswriter Gao Peng

BEIJING, Dec. 24 (Xinhua) -- China capped the most splendid year in its sports history when it concluded with a bang its debut as Olympic host in 2008.

After 16 days of near-flawless organization and first-class athletic achievement, International Olympic Committee President Jacques Rogge called the Beijing Olympics "truly exceptional", validating China's seven-year efforts not only to stage a great Games but to use it as a gateway to gaining international recognition.

"It has been a long journey since our decision in July 2001 to bring the Olympic Games to China, but there can now be no doubt that we made the right choice," Rogge said on the final day of the Games in August.

Yet the run-up to the Beijing Olympics was not plain sailing, especially in the last few months before the opening ceremony.

An 8.0-magnitude earthquake hit southwest China's Sichuan Province in May, killing more than 80,000 people, and violent protesters disrupted the Olympic torch relay in France and other countries. In addition, there had been persistent concerns about Beijing's air pollution and the IOC initially said some outdoor endurance events might be re-scheduled in case of unhealthy air conditions.

To Beijing's credit, however, everything worked perfectly during the period of Games time, from the special Olympic bus lines bringing visitors in from around the city, to the thousands of smiling volunteers in blue-and-white uniforms offering help in different languages, to the tickets with embedded RFID chips that allowed for quick computerized scanning and to the clean skies that reminded many European visitors of Mediterranean conditions.

"The Beijing Games is testimony to the fact that the world has its trust rested in China," said Liu Qi, president of the Beijing Organizing Committee of the Games. "The Chinese people, filled with enthusiasm, have honored the commitments they solemnly made."

These Games have attracted the most participants -- from a record 204 countries and regions -- and according to the IOC, television audiences achieved record high in most major markets and the games' presence online was by far the most extensive ever. The opening ceremony alone was seen by 1.2 billion people around the globe.

Rogge believed the largest extravaganza in Olympic history brought greater global understanding of once-reclusive China.

"Through the Games, the world has learned more about China, and China learned more about the world," he said.

For 100 years the Olympic dream has been a national obsession, as historical archives showed that shortly after the 1908 Games in London, a magazine based in north China's port city of Tianjin published an article and first raised the question: When will China be able to host the Olympic Games?

And for the past seven years the Olympics has been a driving force to push China forward. If nothing else, some of the 40 billion U.S. dollars invested in the Beijing 2008 preparations will remain in the form of the three new subway lines, a new airport terminal and sports facilities built for the Games. The thousands of young, smiling volunteers will take their warmth and enthusiasm back to their daily lives.

The Olympics also offered China another chance to adopt international practice. IOC officials, foreign administrative teams and foreign sponsors were engaged extensively in the preparations. From the design of the state-of-the-art Bird's Nest, to the broadcasting and administrative work, they helped improve the standard of the Games.

With the Olympic baton now passed on to London, the legacy will last well after.

"The Games gave us a more open and mature attitude," said Professor Hu Jiqing from Nanjing University. "This attitude featured magnanimity, tolerance and pluralism."

"More importantly, it embodies a more confident nation," added Hu.

http://news.xinhuanet.com/english/2008-12/24/content_10551718.htm

Beijing Paralympics end in splendor as host China looks to bright future

07:46, September 18, 2008

Fireworks are displayed during the Beijing 2008 Paralympic Games closing ceremony held in the National Stadium, or the Bird's Nest, Beijing, capital of China, Sept. 17, 2008.

A shower of 600,000 red leaves, a lawn dotted with 360,000 flowers, a collection of 100,000 post cards, and a mute dialogue between a girl and a flame. Together, they created the most beautiful, romantic and emotional scenes one could ever imagine.

And this was how China bid farewell to the 12-day Beijing 2008 Paralympics on Wednesday night, when its 40-day mission to host the world, beginning on Aug. 8 with the Beijing Olympics opening, also ended with it.

Chinese President Hu Jintao (R) and International Paralympic Committee President Philip Craven wave to the crowd during the closing ceremony of the Beijing 2008 Paralympic Games at the National Stadium in Beijing, China, Sept. 17, 2008.

Basking in the glory and pride of staging two successful Games in a row, the country has set its eyes on the future, expecting a better tomorrow for itself and the world at large, as indicated by the Games theme of "One World, One Dream."

The word "future," shaped in both Chinese and English by fireworks, shone over the National Stadium, or the Bird's Nest, in north Beijing, as International Paralympic Committee (IPC) President Philip Craven declared the Games closed and the Paralympic flag was lowered.

"These are the greatest Paralympic Games ever," said Craven in his closing speech.

Fireworks are displayed during the Beijing 2008 Paralympic Games closing ceremony held in the National Stadium, or the Bird's Nest, Beijing, capital of China, Sept. 17, 2008.

Dubbed "A Letter to the Future," the 1.5-hour closing ceremony gave a pleasant surprise to all its participants, with nearly 1,000 postmen and postwomen inviting every athlete, spectator and journalist in the stadium to write down their blessings and wishes on a post card specially designed for the occasion.

The cards, over 100,000 in all, were then cast into dozens of post boxes laid on the track, waiting to be "mailed to the future." They will in fact be delivered gratis to their destinations worldwide by China Post the next day.

But more unexpected was the way the Games cauldron was doused. The entire crowd held their breath, as a 10-year-old girl with hearing impairment appeared on the central stage and used sign language to conduct a soundless dialogue with the burning flame atop the Bird's Nest. 

Photo taken on Sept. 17, 2008 shows the art performance named A Letter to the Future during the closing ceremony of the Beijing 2008 Paralympic Games held in the National Stadium, also know as the Bird's Nest in Beijing, capital of China.

"Sacred flame, can you see that you are burning in my heart? Sacred flame, can you hear that I'm singing for you?" For several minutes, the girl kept "saying" it with her hands, while the flame went out slowly under her affectionate gaze.

Meanwhile, a "full moon," symbolizing completeness and lasting memory, rose in the stadium. Dressed in glittering golden costumes as Bodhisattva, or the goddess of mercy in Chinese Buddhism, 126 deaf dancers joined the girl to express by hand their undying passion for the flame.

"May this holy flame, lit with passion, turn into a rainbow that will link all people with friendship and convey love to all people," said Liu Qi, president of the Beijing Organizing Committee of the 29th Olympic Games (BOCOG), at the ceremony.

The paralympic cauldron is fading at the end of the closing ceremony of the Beijing 2008 Paralympic Games held in the National Stadium, also know as the Bird's Nest in Beijing, capital of China, on Sept. 17, 2008.

Starting to burn on Sept. 6 in the same cauldron that had kept the Beijing Olympic flame for 16 days in August, the Paralympic flame has witnessed numerous people -- particularly the athletes, volunteers and organizers -- strive hard to make the Games as splendid and successful as its able-bodied version.

In pursuit of this "Two Games with Equal Splendor" goal, a record 4,000-plus athletes competed in the spirit of transcendence and integration, and 147 delegations fought for glory on the medal table, with China, Britain and the United States sitting in the top three eventually.

With their unyielding spirit and unstoppable momentum, Oscar Pistorius, Natalie du Toit, Erin Popovich and Jonas Jacobsson shone on the track, in the pool or at the shooting range, scoring similar or even greater achievements as compared with their Olympic counterparts.

Photo taken on Sept. 17, 2008 shows a scene of the art performance in the closing ceremony of Beijing 2008 Paralympic Games in the National Stadium, or the Bird's Nest, Beijing, capital of China, Sept. 17, 2008.

And some 44,000 Games volunteers, most of whom had served the Olympics, along with 1.4 million city volunteers, continued to render top-grade service and created a barrier-free environment for the Paralympians. Many of them missed their family reunions as the traditional Mid-Autumn Festival fell in the middle of the Games.

"It is all about spirit," said President Craven of the IPC. "The Paralympic spirit that is ever bright in our movement, found here in China, a kindred spirit."

Sir Philip Craven, president of International Paralympic Committee addresses the closing ceremony of Beijing 2008 Paralympic Games in the National Stadium, or the Bird's Nest, in Beijing, capital of China, Sept. 17, 2008. The closing ceremony kicked off at 8 p.m. sharp on Wednesday.

And such spirits were celebrated and honored on Wednesday night, with awards and flowers.

Minutes after the closing ceremony began with a fireworks gala at 8 p.m., South African amputee swimmer Natalie du Toit and visually-impaired Panamanian runner Said Gomez received the Whang Youn Dai Achievement Award, which was initiated at the 1988 Seoul Games to honor athletes who best represent the Paralympic spirit at each Games.

Then 12 volunteers representatives stepped onto the podium, to receive flower bouquets presented by five newly-elected members of the IPC Athletes' Council, a token of gratitude from all Paralympians as well as the IPC.

The most dramatic moments of the night arrived when it was time for Beijing to say good-bye and London, the 2012 Games host, to say hi.

The outgoing host set its farewell party on a green lawn, which resembled an envelope but could magically turn into a garden with as many as 360,000 flowers sprouting out of the floor.

Photo taken on Sept. 17, 2008 shows a scene of the art performance on the Beijing 2008 Paralympic Games closing ceremony in the National Stadium, or the Bird's Nest, Beijing, capital of China. The closing ceremony kicked off at 8 p.m. sharp on Wednesday.

Kicking off a half-hour art performance, 600,000 red leaves, a typical autumn landscape on mountains surrounding Beijing and also a symbol of unforgettable love, poured down from the 44-meter-high rim of the Bird's Nest, and showered ceaselessly on both the athletes and performers for nearly five minutes.

On his way to the podium for the closing speech, the IPC chief Craven stopped his wheelchair and picked up two red leaves. Putting one into the pocket of his suit, as if collecting a piece of sweet memory, he handed the other to Liu Qi, the Games' chief organizer. And the two shook hands warmly.

"Xie Xie Xiang Gang (thank you Hong Kong), Xie Xie Qing Dao (thank you Qingdao), Xie Xie Bei Jing (thank you Beijing)," said Craven in Chinese amid thundering applause and roaring cheers of the ecstatic home crowd, before concluding his speech with a well-expected "Xie Xie Zhong Guo (thank you China)."

In contrast to Beijing's romantic and reminiscent touch, the eight-minute London handover performance, staged right after Beijing Mayor Guo Jinlong passed the Paralympics flag to his London counterpart Boris Johnson through Philip Craven, was full of vibrant rhythms and permeated with a light and brisk air.

A blend of orchestral and rock, pop and urban, and even with a brief tea break right in the middle of the show, the London performance demonstrated the city's vitality and unique charm, as well as its readiness to pursue the same splendor as what the Beijing Games have achieved -- but probably in very different ways.

And the presence of disabled dancers and a wheelchair basketball star in the show reminded the people of the special historical links between London and the Paralympics -- it was a historic archery competition among war-injured patients at the Stoke Mandeville Hospital just outside the British capital in 1948 that inspired the creation of a new worldwide sporting movement.

In consistence with its Olympic handover version more than 20 days ago, the London performance took place on a stage transformed from a double-decker bus, the city's icon. And when it ended, the bus was restored to its original form and cruised out of the Bird's Nest, formally carrying away the two Games.

At that moment, many of the 1.3 billion Chinese, especially those closely associated with the Games through their dedication and sacrifice, might have felt a sense of loss. But it shall not be hard for them to get over it, for the legacy of the Games will last, and so will the country's faith in the future.

Source: Xinhua

http://english.people.com.cn/95374/95377/6501455.html

China to bolster image as responsible big nation(c)

15:06, December 24, 2008

China's three warships plan to depart Friday on a mission to protect Chinese vessels and crews from pirate attacks in the Gulf of Aden and Somali waters, and the Chinese Ministry of National Defense held a news conference on Tuesday, Dec. 23 on the naval escorting mission. A flurry of questions raised by reporters at the news conference, both Chinese and foreign, have indicated high attention of the international community on the escorting operation of Chinese navy.

In fact, the piracy scourge in the Gulf of Eden and Somali waters has been a thorny, global hazard over recent years. The United Nations' Security Council has adopted four resolutions since June this year for fighting piracy in Somali waters. The North Atlantic Treaty Organization (NATO) and the European Union (EU) have sent naval ships on patrol to deal with piracy. Meanwhile, the navies of the United States, Russia, France and India have all stepped up the frequency of their naval maneuvers in the troubled sea area.

Both the Somali Federal Transitional Government and the International Community have endorsed the decision of the Chinese government on naval escorting operations in Somali waters, which was also appreciated by UN Secretary-General Ban Ki-moon, who acknowledged that it mirrors a very important role China is playing in the international affairs.

In view of such severe, grievous threats faced by Chinese vessels and crews in the problematic sea area, this move made by the Chinese government embodies the governing concept of "making the people first" and its resolve or determination to safeguard China's interests. A total of 1,265 ships sailed past the Gulf of Eden and Somali waters in the first 11 months of this year, and 20 percent of them were attacked by pirates, according to relevant statistics released by China's Foreign Ministry. Since early this year, there were seven hijack cases involving China, including two Chinese ships and 42 Chinese seafarers and five foreign ships with Chinese seafarers. Up to date, there remains one Chinese fishing boat and 18 crew members held captive.

As a responsible big nation, China will also undoubtedly play a positive role in safeguarding the prestige of the UN and rebuilding peace and security in the Gulf of Eden and Somali waters. It is also one of the Chinese mission's main purposes to protect the vessels shipping humanitarian relief goods by such international organizations as the World Food Program.

As a matter of course, the current naval escorting mission will display the confidence and capability of Chinese naval fleet in dealing with varies security threats and performing and fulfilling a variety of military tasks. With regard to this mission, some foreign media have asserted that it is the first-ever effort for China's navy to show its military strength beyond the Pacific Ocean, and even referred to it as a "signal flare" for an all-round forward march overseas; the Chinese navy, however, would by no means make a "show of force" but actively defend the world peace and stability with its actions.

The permanent solution for eradicating Somali piracy, the Chinese government maintains, is to help Somalia restore peace, stability and development. And the international community has reached unanimity that Somali piracy has resulted from 17 years of uninterrupted civil wars and ensuing political and economic crises in the country. To help Somalia with its reconstruction, China gave it 20 million RMB yuan of assistance gratis in May 2007, and donated 300,000 US dollars aimed at assisting the African Union (AU) in August 2007 and, in January this year it again offered a humanitarian aid of half a million dollars to Somalia through the World Health Organization (WTO). Beyond any doubt, these moves of China's would prompt Somalia's efforts for peace and reconstruction.

The task force, which comprises two destroyers and a supply ship of the Chinese navy's South China Sea Fleet, is expected to leave Sanya city of southern Hainan province on December 26 for the Gulf of Eden and Somali waters. People in China are fully convinced that the Chinese navy will live up to great expectations placed on them, and that their mission will certainly bolster China's image as a very responsible big nation with an active rule to play in advancing peace and security off the Somali coast.

By People's Daily Online, and its author is Zhongsheng

http://english.peopledaily.com.cn/90001/90780/91342/6561221.html

China sent two Chinese destroyers and a supply ship to the Gulf of Aden

China sent two Chinese destroyers and a supply ship to the Gulf of Aden off Somalia on Dec. 26, 2008, offering protection for Chinese civilian vessels and crews, including those from Hong Kong, Macao and Taiwan, and foreign vessels on request as well. The Chinese naval vessels arrived in the Gulf of Aden on Jan. 6.

Chinese naval vessels have so far carried out six escort missions for 16 ships in the pirate-ridden waters off Somalian coast as up to 8 a.m. Jan. 20, 2009.

FORMOSAPRODUCT, a ship from Taiwan ( FORMOSA is Taiwan in Dutch), is being protected by China naval vessels.

China Naval vessel is escorting Taiwan ship FORMOSAPRODUCT.

China is a major contributor with United Nations Peace Keeping Mission(d)

The United Nations Secretary General Ban Ki-moon arrived Lebanon on January 17, 2009 to thank the Peace Keeping Troop from China.

These Chinese Peace Keepers were the only willing and able soldiers with the experience to clear the landmines. The soldiers from China cleared over 600 landmines with zero casualties in an area of 40,000 square meters. This is an excellent record in the history of Peace Keeping at United Nations.

Secretary General Ban Ki-moon shakes hand with each soldier who worked on the landmines clearing project.

Chinese peacekeeping policemen in Sudan presented "United Nations Medal"

Clement Munoriarwa (L), commissioner of UN peacekeeping mission police forces, presents the "United Nations Medal" for Chinese peacekeeping policemen at the Chinese embassy to Sudan in Khartoum on Jan. 15, 2009. (Xinhua Photo)

Clement Munoriarwa (L), commissioner of UN peacekeeping mission police forces, presents the "United Nations Medal" for Chinese peacekeeping policemen at the Chinese embassy to Sudan in Khartoum on Jan. 15, 2009. (Xinhua Photo)

Chinese Female UN Peace Keeping Officer being decorated when serving in Sudan.

Return with Victory when The Peace Keeping mission in Sudan was accomplished.

http://english.people.com.cn/90001/90783/6575378.html

The Dragon's Gift: The Real Story of China in Africa(e)

UK Morning Star newspaper

by Deborah Brautigam

05 January 2010

The idea that China is only involved in Africa to seek raw materials - oil in particular - is just one of the many common myths circulating in the West which are shattered in this fascinating and comprehensive guide to China's growing influence in Africa.

As a Nigerian diplomat told the author: "The Chinese are trying to get involved in every sector of our economy. If you look at the West, it's oil, oil, oil and nothing else."

And, as Brautigam points out, Chinese investment in African manufacturing industry has outstripped investment in mining for the past five years.

Whereas the West - both via private investment and aid projects - has been pulling out of African manufacturing over recent decades, China believes that developing industrial capacity is crucial to overcoming the poverty trap resulting from reliance on the import of expensive industrial goods and export of cheaper raw materials.

China's own experience since 1979 would seem to confirm this point, but China has always been reluctant to push its own development model onto other countries.

Indeed, part of the Chinese experience of poverty reduction has been the need to adapt plans and models to the local situation. For this reason, Chinese aid to Africa has always been based on the principle that the needs are identified by the host country, not by China, whose role is then to negotiate with the host how exactly those needs can be met.

Not that China's involvement in Africa is solely altruistic, of course. Indeed, ever since Zhou Enlai's groundbreaking trip to the continent in 1964, "mutual benefit" has been explicitly outlined as one of the key principles of Chinese aid. As a developing country, whose per capita income was still barely higher than that of Mozambique some 20 years later, there seems little reason this should be otherwise. "We are poor brothers helping one another," as one Chinese diplomat put it.

Mutual benefit today means that, in exchange for building African industrial and social infrastructure, China is gaining markets for heavy machinery and pharmaceutical products - amongst others - and contracts for its construction companies.

Frequently, Chinese building firms stay on in Africa after completion of a Chinese-funded aid project and win other private contracts. These are often contracts for projects funded by other aid donors as well.

Another myth that frequently abounds about China's role in Africa is that its no-strings attached policy, in contrast to the West's conditional aid, facilitates corruption and human rights abuses.

But, as Brautigam points out, the way China actually delivers aid or commercial investment projects actually helps to limit corruption because unlike the World Bank and other donors, Chinese grants and loans rarely get into the hands of recipient governments.

A project is negotiated and agreed and the money then usually gets paid directly from the Chinese bank to the Chinese construction company in charge of delivering the project, thus limiting the opportunities for government officials to take cuts along the line.

In this way, says Brautigam, Africa's resources might actually begin to pay for infrastructure and development, rather than simply being used as cash cows for the private enrichment of people like Congo's Mobutu or Nigeria's Abacha.

The ¡ê4 billion loan recently made to the Congo, for example, will not be paid in cash, but in the form of power plants, a repaired water supply, 32 hospitals, 145 health centres, two hydroelectric dams, two large universities, two vocational training centres, thousands of cheap houses and thousands of kilometres of railway. It will be paid back in copper and cobalt way down the line.

Yet reading some Western press reports, one would imagine it was the other way round, with an angelic West busy trying to bring human rights and transparent governance to Africa while a recalcitrant China has been just as busily undermining all its hallowed efforts.

Beijing's no-strings-attached policy does mean that they will do business with pretty much anyone, but they are hardly the first to have done business with dictators.

Despite all the uproar over China's engagement with Sudan and Zimbabwe, Brautigam points out that the biggest customer of Sudanese oil in 2006 was Japan, not China, and that Western companies such as Barclays and Anglo-American have continued to operate in Zimbabwe throughout its difficulties.

And the no-strings policy has been crucial in providing African governments with a source of finance which does not insist on neoliberal policies with a proven track record of failure.

The IMF and World Bank's insistence on slashing social spending and opening markets has been disastrous for Africa, and any alternative is surely welcome.

Brautigam is no naively gung-ho Sinophile and she does point out possible dangers that lie ahead in China's relationship with Africa, especially in areas such as agriculture.

For this reason and by employing meticulous research - the footnotes stretch to 65 pages - she is already legions ahead of most Western commentators on the subject.

You are unlikely to find a more thorough, comprehensive and open-minded account of the subject.

http://www.morningstaronline.co.uk/index.php/news/content/view/full/85181

Comparison of China with Historical Colonials in Sudan

For Sudan Landscape Icons

1898 Mahdi's Tomb destroyed by UK artillery .........1972 'Friendship Palace' donated and built by China

About Sudan National Sovereignty

1898 Egypt and UK raised colonial flags in Sudan ...........Sudanese workers raised Chinese and Sudanese flags in Chinese factory

Human Right Issues in Sudan

Murder of civilians by soldiers from 'No Death Penalty UK' ........China sent medical Doctors helping Sudanese Villagers

For Sudan Future Development

Civilians tortured by colonial soldiers .............China trained Sudanese technician (formerly a kid being hired by cattle farming) doing well

http://blog.ifeng.com/article/3144293.html#

Former UN special envoy to Darfur speaks highly of China's efforts (f)

10:02, August 18, 2009

Jan Eliasson, former UN General Assembly President and UN Secretary General's Special Envoy to Darfur has spoken highly about China's efforts in solving the problems in Darfur, Sudan.

In an interview with People's Daily Online correspondent in Stockholm during the World Water Week which formally opened on Monday, Mr. Eliasson said he appreciated very much working with the special envoy from China (Liu Guijin).

"As a special envoy of the United Nations, I have the privilege of working together with several special envoys from different member states. I appreciate very much working with the special envoy from China, a dear friend of mine, he is extremely knowledgeable about Sudan and also Africa generally. One cannot separate the Darfur issue from general African affairs, particularly the neighboring countries," said Eliasson.

Mr. Eliasson said that they mainly worked in two issues, one was to introduce the UN-African peacekeeping forces to Darfur and the other was the peace process.

"I think China, together with Ambassador Wang in New York and the special envoy Liu in Africa, played an important role in convincing the Sudanese government to accept a larger presence of UN forces. I also know that you have active embassy in Sudan. I think China has a good leverage and good influence on the government of Sudan. So we were happy to see the UN resolution 1769 come about at the end of July 2007. Unfortunately that has taken too long to take the forces in place and I also regret that Norwegian and Swedish engineers who should join the Chinese engineers over there were not allowed to come," reflected Eliasson.

"I believe China will have a good influence on both the Sudanese government and the movements and I think China can play a role in the peace in Darfur and also the stability in Sudan which is very strongly needed for everybody," said ELiasson.

After that China sent hundreds of troops including engineering, security and maintenance teams to Sudan to join the UN peace keeping forces there.

While asking about western negative reports about China's presence in Africa, he thinks it is natural.

"Well it is always difficult to be a major actor, any increasing power who has a presence in Africa will be seen from two perspectives, one is from the perspective of growth and how this country can contribute to the improvement of the conditions of the people of those countries, but also negative to a growing influence which maybe at the cost of either some actors inside the country or at the cost of other actors on the international scene. So I think it is natural."

"But if China continues to put emphasis in improvement of conditions for people, and take into accounts the needs for decent working and living conditions for people in all respects, both in terms of security and development and human rights, then I think you have a very important responsibility. Being a country like China's size and growing influence, you will see more and more that you will be a factor in the discussions and sometimes positive and sometimes even negative, but I think if you have a direction which aims at improvement of life for the people in the countries and show this is done concretely, I think you can feel comfortable. And I hope people in Africa can feel comfortable. I will look forward to continued cooperation with China even if now I am not active in Darfur. "

The Swedish top diplomat is now the chairman of the newly established organization Wateraid in Sweden. He thinks that water can be a catalyst to development, peace and security. He feels that lack of water actually contributed to the conflict in Darfur.

http://english.people.com.cn/90001/90776/90883/6731251.html

China wants an economically independent Africa(g)

By TAREK EL-TABLAWY

SHARM EL-SHEIK, Egypt

Printed by USA <<BUSINESSWEEK>>

The Associated Press November 9, 2009, 6:17AM ET

China's focus on agriculture and infrastructure development in Africa aims to help the poverty-ravaged continent achieve economic independence, its commerce minister said Monday, stepping up a push by the Asian giant to battle criticism it was plundering the continent's resources.

Chen Deming's remarks at the second day of a two-day China-Africa summit sought to cast a softer tone to China's trade ties and investment drive into Africa -- an effort that has seen trade explode tenfold since 2000 to hit almost $107 billion last year.

This year "symbolizes the renewal of China-Africa relations," Chen told ministers at the Forum on China-Africa Partnership. "China will continue to pursue the agenda of friendship, peace, cooperation and development with African countries by advancing bilateral trade and economic cooperation ... on the basis of mutual benefits."

Beijing seeks to help in "facilitating Africa's regional economic integration and promoting its economic independence," he added.

At the summit on Sunday, China's premier, Wen Jiabao, pledged $10 billion in new easy term loans to African nations as part of a "selfless" plan based on "mutual respect" to further boost Sino-African cooperation and trade and the continent's development.

Such phrases have emerged as often repeated buzz words at the summit in the Egyptian Red Sea resort, reflecting a concerted push by both China and African nations to highlight the partnership represents an economic symbiosis -- not a one-way street in which Beijing can tap the continent's resources to fuel its growing economy.

The accusations have dogged China's push into Africa, with critics contending Beijing is indiscriminately pumping money into the continent without regard to the individual countries' human rights record or offering terms that ensure Africans walk away with a lasting benefit from the investments.

From oil exploration in Sudan to mining ventures in Guinea, the investments are merely tools for stripping the resource rich continent of its sources of wealth, critics contend. In return, Beijing is sending back inexpensive finished Chinese goods.

China has bristled at the accusations, with Wen saying Sunday that such claims of neocolonialism were "untenable."

Some African representatives at the summit also took issue, saying the claims implied that Africans were not up to managing their own resources.

"We set our own priorities," Sam Kutesa, Uganda's foreign affairs minister told The Associated Press on the summit's sidelines. Africans are using China's resources "to help us exploit ours."

"Western countries have no more standing about asking Africa how its resources are exploited because they have exploited them forever," he said.

Also Sunday, Rwandan President Paul Kagame told summit participants that it was up to African nations to make clear their development priorities.

The Asian giant has been involved in Africa for over 50 years, but its investment push gained serious momentum during a 2006 China-Africa summit in Beijing in which China pledged $5 billion in easy loans, among other initiatives.

Trade has since mushroomed and Chinese officials have stressed they have honored commitments from the last summit and are equally determined to follow through on the new initiatives announced by Wen.

The plan, which is to be implemented over the next three years, includes the new $10 billion in loans, debt forgiveness, setting up 100 new energy projects and stepping up agriculture and infrastructure development.

Some African nations say they've learned valuable lessons from the past and are keen to ensure China isn't allowed to exploit the continent in the way they say the West did during the colonial era.

"If we set our priorities and believe in an equal partnership, then we can move better than we have in the past," Uganda's Kutesa said.

http://www.businessweek.com/ap/financialnews/D9BRVKJG0.htm

Still having doubt about China?(9)

Click on any or all of the following:

Global Economy Matters:

UK: China's export prospects

USA: China Estimated Economy 2040

Australia: China's century: on the march

Canada: China's growth is Canada's gain

USA: Why the Export Slump Won't Doom China's Economy

USA: The Recession's Real Winner

USA: The Crisis Left China Better Off

UK: Without Chinese economic reform, global recovery may be doomed

International Politics Affairs:

USA: China showcasing its softer side

UK: China-ASEAN pact offers more than win-win

USA: China has no interest to Rule the World

UK: The Real Story of China in Africa

Stockholm, Sweden: EX-'UN special envoy' to Darfur spoke

SHARM EL-SHEIK, Egypt: China wants an economically independent Africa

Brazil: China in Latin America

China to bolster image as responsible big nation

In 2008, China impressed world in unprecedented way

Singapore: China's reform contributes to world civilization

USA: China Has Fully Arrived As A Superpower

China is a major contributor with United Nations Peace Keeping Mission

USA: Don't Panic About China

Copenhagen climate deal :

UK: Blame Denmark, not China, for Copenhagen failure

USA: new world order may be led by U.S. and China

UK: China to lead on climate change

USA: China's green leap forward

Science and Technology:

UK: Get ready for China's domination of science

Germany: A New Social Economic System

UK: China on the road to a low-carbon economy

China is doing well with following industries:

China has a very sound Renewable Energy Equipment industry

China has one of the largest Ship-Building industry on Earth

China is number three in Aerospace Engineering industry

China is one the largest Vehicle-Manufacturing industry

China has the largest Rare-Metal Resource Mining industry

China has an elaborate and advance Anti-Epidemic system

China has the largest internet Netizen Population in the World

China is running a nationwide High-Speed Train Network

China is developing an electric vehicle industry

China has a self-developed technology Flat Panel TV industry

Article below is written

by a famous USA's China Expert

What to Do with China?

USA <<Campaign For Liberty>> click here

By Doug Bandow

Published 01/26/10

The U.S. is the world's dominant power. Nevertheless, some Americans see China as a serious security threat. They want to use Beijing as a justification for raising the military budget even further.

It's a foolish policy that could end up getting the U.S. into an unnecessary war.

......

......

Today, the Chinese people increasingly enjoy the sort of personal autonomy that Americans have come to expect. The economy is increasingly private; the independent sector is expanding. Even religious liberty is advancing, though inconsistently and slowly. Decisions over everything from career to marriage have gone from political acts to personal choice. The dramatic changes in the PRC and the country's great potential become particularly evident to Westerners when they visit China. Go to Beijing or Shanghai, which I've visited several times, and you'd think you were in any major American or European city. It's not just the tall buildings, but the active, busy, and energetic people. I recently returned from a conference in Shenyang, a large city in Manchuria, in China's northeast. Once viewed as part of the PRC's rustbelt, Shenyang appears to be participating in China's rapid economic growth. But more impressive to me is the relatively free personal life that I observed. In traditional communist systems politics was never far behind. From public symbols to personal relations, politics is everything. That is to be expected in societies where expressing the wrong sentiment about the wrong idea or politician can result in imprisonment or death.

In China there's little public evidence of communism. There's no dictatorial personality cult. There's no sense that someone is listening in to your conversations. Business and travel are generally free. No one demands your papers or asks where you are going -- even foreigners. Computers and cell phones are widely available; car ownership is increasingly common. People engage in a cat and mouse game with the censorship authorities over internet access. Personal interaction also is relatively uninhibited. People are friendly and open. They want a better world for their families just like we do for ours.

.........

.........

The most foolish policy would be to treat the PRC as an enemy and the Chinese as enemies. That would guarantee precisely the result which Washington wants to avoid, whether the PRC remains authoritarian or becomes democratic. It is time for the U.S. to become a normal country again. Washington's duty is to protect Americans, not order around everyone else on earth. If U.S. policymakers don't recognize reality on their own, the Chinese are the first of many other peoples likely to force Americans to learn this lesson.

Doug Bandow is the Robert A. Taft Fellow at the American Conservative Defense Alliance (www.acdalliance.org) and a Senior Fellow at the Cato Institute. A former Special Assistant to President Ronald Reagan, he is the author of Foreign Follies: America's New Global Empire

http://www.campaignforliberty.com/article.php?view=558

To view this entire article click here

China promises: "PEACE, I'm lovin' it!"

Provoked China will NOT afraid of War.

Well Proven by Korean War 1950-1953.

Can this Unnecessary War be avoided?

The China International Search and Rescue Team (consisted of 50-member team, including 25 rescuers and 15 medical workers) arrived in Port-au-Prince two days after the 7.3-magnitude earthquake struck on Jan. 12. The Team had retrieved more than 20 bodies and helped treat about 2,500 injured people, 500 of whom were seriously hurt. On January 26, 2010 the rescue team was replaced by a new 40-member medical team (included internists, surgeons and anti-epidemic experts) from China. Chinese medical team worked at a makeshift hospital that the team had set up in Port-au-Prince Jan. 27, 2010. The team stayed in Haiti for weeks to provide basic medical care and anti-epidemic work for survivors of the Jan. 12 earthquake.

Chinese police, U.S. soldiers conduct first joint patrol in Port-au-Prince

on January 29, 2010 under the command of

United Nations Stabilization Mission in Haiti (MINUSTAH).

The Chinese UN Peacekeeping Police has served in Hiati for years.

The Chinese Police has built a very good relationship with Haitians.

The Chinese is highly respected and well received among Hiati general public.

US military used UN Chinese Police image to better their appearance in Haiti

China International Search and Rescue team

the team started work immediately on arrival

Chinese medical team performed diagnosis for a pregnant woman

Team returned to Beijing following almost two weeks of search and rescue operations

Team member enjoyed a family re-union after arrival at Beijing.

The Medical Team Anti-Epidemic experts at work:

Epidemic Prevention were dirty but essential tasks.

Chinese medical team provided medical services at a makeshift hospital

During Jan. 12 earthquake eight UN Peacekeeping Chinese Police died.

They were in a meeting at UN Headquarter Building which collapsed.

Honourable eight UN Peacekeepers left Port-au-Prince by air to China.

The Honourable 8 UN Peacekeeping Police gave their ultimate sacrifice.

The honourable eight UN Peacekeepers arrived Beijing on Jan 27, 2010.

Starting in February several makeshift hospitals were set up in Haiti.

Haitians lined up to receive the most needed medical care.

Haitians lined up at a drug tent to receive free medicine according to the prescriptions.

Anti-Epidemic experts busy testing the quality of water supply in Haiti.

Bellerive, wife of Haiti President, came to show appreciation to the

China International Search and Rescue team before their departure.

In her mind she could count on China for help during the earthquake.

For sure, China will NOT send an army to invade and occupy

another country in the name of providing Natural Disaster Relief.

On 6 February 2010 BBC: http://news.bbc.co.uk/2/hi/americas/8501660.stm

"Mr Clinton apologised for the delay in delivering and co-ordinating relief efforts."

With over 15,000 military personnel in a tiny area of Port-au-Prince

Holding on all Earthquake Relief materials from all over the world and for

4 weeks (since Jan/12) USA could NOT speed up sluggish aid deliveries, WHY?

USA had no heart for the dying and starving Haitian at Port-au-Prince.

They are saying "A friend like this you do NOT need any enemy."

Relationship between China and Haiti can be summarized in following photo:

China is one of the Developing Nations on Earth. Every Developing

Nation knows that in case of Natural Disaster events, China will

Provide an unselfish and generous hand( i.e. Africa Algeria, Asia Tsunami,

USA Hurricane Katrina, Iran,Pakistan and Haiti Earthquake.....)

May the Friendship of all Developing Nations on Earth last forever...

PEACE BE ON EARTH FOREVER...

China brings three opportunities to the world

13:10, October 20, 2007

Over recent years, there has been international clamor around the China threat. However, when looking at China's development objectively, we cannot deny one basic fact: China's development did not bring any threat to the world; instead, it brought opportunities in at least three aspects:

First: economic opportunities

With the reform and opening up, China has become an engine for the world's economy. According to recent data from the World Bank, from 2003 to 2005, the average contribution rate of China's economic growth to global GDP growth was as high as 13.8% - only second to the United States and second in the world.

Today, China has become the world's third largest trading partner. High-quality and inexpensive Chinese goods have been sent to the rest of the world; and have increased the actual income level of importing countries and promoted consumption.

At the same time, the scale of China's imports has expanded rapidly. From 2003 to 2006, the average growth rate reached 28.3%. China offers a broad market for other countries and has created many employment opportunities.

Voices from the international community have stated that "developed countries have shifted their high-cost production to China; and thereby reduced productions costs. Consumers around the world are then sharing in this benefit."

-"The so-called China threat theory, in such an era of globalization, is entirely false. China has never taken job opportunities from rich developed countries. Its employment growth in the export sector is due to the expansion of transnational corporation subsidiaries in China. China's demand for foreign goods is also supporting employment opportunities in other countries of the world." -"The rise of China is not a threat. On the contrary, many countries and multinational companies benefit from China's development."

-"China is the true driving force for the world's economic development."

Second: cultural opportunities

Today's Chinese people should seek foreign, advanced science and technology and cultural achievements with an open mind. However, we understand that China's growing economic strength has created the conditions for widespread radiation of the Chinese culture. The extensive and profound Chinese civilization may revive at this stage and exert its influence.

An era of developing economic globalization and the daily convergence of people in the international community are not only conducive to China; but also to global cultural diversity, peace, and development. As a culture with a long history and profound foundation, Chinese culture has its own distinct characteristics and elements which are necessary for the harmonious development of mankind; but are not easily found in Western culture. These elements provide ideological inspiration and cultural nourishment to human progress. This is not only the wealth of history, but also of the present and future. This is China's wealth, and will also become the wealth of mankind.

Third: the opportunity for peace

Indeed, the Chinese people have a dream of rejuvenating the nation. However, this rejuvenation is not sought by means of world hegemony, aggression and expansion; but rather with complete freedom from poverty and backwardness, by relying on the Chinese people's diligence and wisdom. This rejuvenation will make China a prosperous, powerful, democratic, civilized and harmonious modern socialist country that will make a greater contribution to peace and human development.

China has made a solemn commitment to the world: taking the road of peaceful development. This will bring a new paradigm to the history of international relations and prove that mankind can set aside brutal wars of aggression; handle contradictions and conflicts among countries by rational and peaceful means; and achieve a win-win situation among countries.

The development and rejuvenation of the Chinese nation will certainly safeguard world peace; and promote the multi-polarization and democratization of international relations to serve the interests of the international community.

China's development brings global opportunities. Just like American economist Stephen Roach said, "China is not a threat, but an example that other countries should learn from."

By People's Daily Online

http://english.peopledaily.com.cn/90002/92169/92188/6287277.html

Chinese president makes proposals on advancing Sino-U.S. relations

UPDATED: 07:20, April 22, 2006

Chinese President Hu Jintao on Thursday put forward a six-point proposal aimed at further promoting the all-round development of the constructive and cooperative relationship between China and the United States.

"Advancing China-U.S. relations serves the fundamental interests of our two countries and peoples and contributes to peace, stability and prosperity of the Asia Pacific region and the whole world," Hu said in a speech delivered at a dinner here hosted by friendly organizations in the the United States.

First, the two countries should increase understanding, expand common ground and build long-term and stable constructive and cooperative China-U.S. relations.

"China values its relations with the United States, which are high on its foreign policy agenda," the president said, adding that China is committed to long-term peaceful coexistence, mutual benefit and common development with the United States.

The two countries should continue high-level exchanges, maintain and expand consultation at all levels, pursue strategic dialogue, foster strategic mutual trust and promote two-way cooperation.

Second, the two nations should seize opportunities, be creative, consolidate and expand the foundation for bilateral economic cooperation and trade, Hu said.

"Economic cooperation and trade are a pillar sustaining China-U.S. relations," he noted. "We should encourage Chinese and American companies, large, medium-sized and small ones alike, to build strong business ties and explore new opportunities for cooperation in such fields as telecommunication, environmental protection and services, and strengthen strategic consultation on energy and increase energy cooperation."

China and the U.S. should resolve trade disputes through consultation on an equal footing and expanding mutually beneficial cooperation, Hu said.

He said China will continue to honor its WTO accession commitments, expand market access, strengthen Intellectual Property Rights (IPR) protection and increase imports from the U.S.

China also hopes that the U.S. side will take positive steps to promote the growth of business ties between the two countries, Hu said.

The Chinese president also said the two nations should increase dialogue and cooperation on macroeconomic policy to facilitate the balanced and orderly growth of global economy.

Third, he said, the two countries should adhere to the principles, honor the commitments and properly handle the question of Taiwan in accordance with the three China-U.S. Joint Communiques.

"The question of Taiwan involves China's core interests," the Chinese president stressed, "The principles laid down in the three Joint communiques should be strictly observed. This is crucial for the sound and stable growth of China-U.S. relations."

"China will continue to make every effort and work together with our Taiwan compatriots with every sincerity to ensure the peaceful and stable development of cross-Straits relations and China's peaceful reunification, Hu said.

But "we will never allow the 'Taiwan independence' secessionist forces to split Taiwan from China under any name or in any form," he stressed.

Hu appreciated the commitment by President George W. Bush and the U.S. government to adhering to the one China policy and the three Joint Communiques and their opposition to "Taiwan independence."

"It is our hope that the U.S. side will fully honor its commitment... This meets the common strategic interests of China and the United States and will contribute to peace and stability in the Taiwan Straits and the Asia Pacific region," Hu noted.

Fourth, he said, the two sides should maintain close consultation, take up challenges and strengthen communication and coordination on major international and regional issues.

The Chinese side is ready to deepen anti-terror cooperation with the U.S., work with the U.S. to uphold the international non-proliferation regime, properly address the Iranian nuclear issue through diplomatic means and negotiations, and continue to peacefully resolve the nuclear issue on the Korean Peninsula through the Six Party talks, Hu said.

China is also ready to strengthen consultation and coordination with the United States in environmental protection, public health and disaster relief and reduction, he added.

The Chinese side will continue to work with the U.S. to promote stability and prosperity in the Asia Pacific region, step up discussion and cooperation in the United Nations, APEC, ARF and other regional and multilateral fora in a common effort to promote open and inclusive regional and multilateral cooperation, the Chinese president said.

Fifth, Hu said the two nations should draw on each other's strengths, and strengthen friendly exchanges between the two peoples.

"China and the United States both have cultures that we take pride in and they have both made contribution to the human civilization and progress of mankind," Hu said.

"Therefore, China and the United States should step up cooperation in science and technology, culture and education, increase exchanges between our youths, media and think tanks and expand friendly exchanges between our provinces and cities," the president said.

Sixth, Hu said, the two sides should respect each other, treat each other as equals and view differences in a proper context and manage them properly.

China, in line with its national conditions, will continue to reform its political structure, develop socialist democracy, expand citizens' orderly participation in political affairs and ensure that people exercise democratic election, democratic decision making, democratic management and democratic monitoring in accordance with the law, the president said.

China takes human rights seriously, he stressed. The country respects and upholds human rights and this has been written into China's Constitution.

China will keep advancing human rights in the course of its social development. The Chinese people fully enjoy freedom of religious belief as provided for by law, Hu said.

"Due to different national conditions, it is normal for China and the United States to disagree on some issues," President Hu said. "We should seek common ground while shelving differences, conduct consultation on an equal footing and promote mutual progress through exchanges," he said.

The Chinese president arrived in Washington Wednesday evening from Seattle. The United States is the first leg of Hu's current five-nation tour, which will also take him to Saudi Arabia, Morocco, Nigeria and Kenya.

Source: Xinhua

http://english.peopledaily.com.cn/200604/22/eng20060422_260247.html

Hu: China seeks peaceful development

UPDATED: 08:09, April 22, 2006

President Hu Jintao offered reassurances on Friday that China seeks a peaceful development to economic prosperity, a theme he has articulated since the first stop of his four-day US trip.

Hu said China commits itself firmly to peaceful development and holds high the banner of peace, development and co-operation.

"China seeks to accelerate its development by upholding world peace and in turn enhance world peace through its development," he said during a speech at the Sprague Hall of Yale University in Connecticut.

Hu was addressing an audience of 600 people, including Yale University top officials, members of the board of trustees, professors and students, as well as representatives from local Chinese businesses.

"China is inclusive and is eager to draw on the strength of other civilizations to pursue peace and development, and play its part in building a harmonious world of peace and prosperity," he said.

His historic trip to the elite university, where US President George W. Bush once studied, came following a summit on Thursday with Bush, which Hu described as "fruitful."

During his one-hour speech, which was broadcast live back in China, Hu elaborated on China's development strategy and its future in a bid to promote a better understanding of China.

Hu stressed that China, despite its fast economic growth over the past two decades, remains the world's largest developing country and still faces daunting challenges in its endeavour to develop.

"It requires sustained and unremitting efforts to transform our country and make life better for our people," he said.

Although China has achieved an economic miracle in the past 28 years, "any number divided by 1.3 billion will become very small," Hu said, noting that China's per capita ranking is still behind 100th place in the world.

"We have encountered many difficulties. We hope to see a peaceful international environment. China's development will not compromise the interest of other countries."

The president said China has adopted a scientific concept of development, focusing on sustainable development by boosting production, improving people's life and protecting the environment.

Turning to China's history, Hu said the decision to pursue peaceful development is deeply rooted in its historical and cultural traditions, which give prominence to unity, mutual assistance and good neighbourliness.

Hu highlighted the importance of closer Sino-US relations.

"The different historical backgrounds and national conditions between China and the United States enable us to learn from each other and draw on each other's strength," he said, winning applause from the audience.

Citing the anti-terrorism fight, environmental protection and combating transnational crimes as examples, Hu said the common interests between the two powers are increasing and the areas of bilateral co-operation are also widening.

Hu said he and President Bush share the view that the two sides should approach bilateral ties from the strategic and long-term perspective.

As long as both sides focus on the overall interest of China-US relations, respect and show understanding to each other, bilateral ties will move ahead in a healthy and steady manner, the president said.

"What impressed me is his very direct answers to very difficult questions," said Steven M. Chapman, group vice-president of Emerging Markets & Businesses for Cummins Inc, after a question-and-answer session following Hu's speech.

William Reilly, head of environment for former US President George Bush, said: "I am impressed (with his speech). He is very open."

Before the speech, Hu met with Yale President Richard C. Levin, who has visited China six times.

At a private reception in Levin's office, Hu presented Yale with a donation of more than 1,300 books from China.

In return, Yale presented a portrait of Yung Wing (1828-1912), the first Chinese student to study in the United States, who graduated from Yale in 1854.

The school, founded in 1701, has more than 80 academic collaborations with Chinese institutions and offers 26 study sites in China.

During the speech, Hu announced that China has decided to invite 100 Yale faculty members and students to visit China this summer.

Today, 300 of Yale's roughly 11,000 students are Chinese, the largest contingent from any foreign country.

There are also more than 300 visiting scholars from China at the university.

Poetic visit

On several occasions during his US visit, President Hu Jintao turned to ancient Chinese poets to express his hope for the sound and steady development of Sino-US relations.

At the White House luncheon with President Bush, Hu quoted the lines of a poem written by Du Fu, a great Chinese poet in the Tang Dynasty (618-907 AD), entitled, "A View From The Top of Mount Tai."

"As I climb up to the summit, it dwarfs all peaks under my feet," Hu said, suggesting China-US ties now stand at a new historical juncture.

At a lunch on Wednesday in Everett, Washington state, Hu quoted another Tang Dynasty poet, Li Bai, to talk about the need to press forward in the Sino-US relationship.

Most descriptive of the turbulent background to the visit was a stanza from Li's work: "Hoisting high the sails, I will brave the winds and waves to cross the vast oceans."

Source: China Daily

http://english.peopledaily.com.cn/200604/22/eng20060422_260340.html

China vows to further contribute to human rights course

www.chinaview.cn 2006-05-10 17:08:11

BEIJING, May 10 (Xinhua) -- China, as a newly-elected member of the United Nations Human Rights Council, pledged Wednesday to fulfill its obligations under the terms of international human rights accords.

The UN General Assembly on Tuesday elected 47 members to the newly-created Human Rights Council through three rounds of secret ballot. China was elected to the council with 146 votes.

"The Chinese government has always been committed to the promotion and protection of human rights and basic freedoms," said Chinese Foreign Ministry spokesman Liu Jianchao here Wednesday.

The country has been actively involved in the promotion of human rights, he added.

"China supports the foundation of the UN Human Rights Council, and has made positive contribution to this end," Liu acknowledged.

As a member of the council, Liu noted, China will promote human rights within its territory and work with other members of the council.

China supports the council's efforts in handling human rights issues fairly, objectively and impartially, said Liu, adding that China values the political, economic, social and cultural rights of citizens.

The country also pledged to promote dialogue and cooperation between different civilizations, cultures and religions, the spokesman said. Enditem

China pedges to uphold human rights on U.N. council

http://news.xinhuanet.com/english/2006-05/10/content_4530878.htm

Sino-US summit has three enlightenments

UPDATED: 17:43, April 24, 2006

Sino-US summit was held in the White House on April 20th. The short submit lasted no longer than half a day, but served as the beautiful climax of President Hu's visit to the United States and quickly became a focal point in the international community. The reason lies in the special importance of the Chinese and American relations to the global strategic pattern as well as the complexity of the current Sino-US relations.

Generally speaking, the overall situation of the current Sino-US relations is relatively stable. American decision-makers' proposal on the so-called "responsible stakeholders" theory , in which it anticipates China to become a responsible participant in the international system, has indicated that the US has started to adjust its thought so as to treat China's rapid growth by a more practical posture and look forward to cooperating with China on the global business.

Usually, the bilateral frictions will increase when two countries approach to each other more closely. This is the fundamental reason why China and America reported more problems in many areas such as economics and trade, human rights, security, and regional mutual trust. If one exaggerates these frictions, he would easily become pessimistic about Sino-US relations. But if he puts these questions into a broad scenario in which Sino-US relations gradually move towards a thorough and mature level, he would find out that these problems are simply natural phenomena that occur during a screw-type rising process of the development of Sino-US relations. Comparing with the overall stable framework of the Sino-US relations, these problems are the secondary contradictions.

If observing the summit from this perspective, three enlightenments can be found.

First of all, both countries' leaders gave priority to constructive and cooperative relationship, emphasized cooperation and common interest, and diligently obtained a long-term and stable framework of Sino-US relations. President Hu stressed that both China and the US should take a broad and long-term view. President Bush claimed that he is willing to see China rising as a peaceful and prosperous country. On the core issue of Sino-US relations, the Taiwan issue, President Bush reiterated that the US persists on one China policy and does not support "Taiwan independence". Both sides emphasized on the importance of cooperation on the nuclear issues in North Korea and Iran. In fact, the vital significance of the summit just lies in the re-establishment of the framework of a long-term constructive, cooperative and strategic relations between the two countries.????

Secondly, the leaders of the two countries honestly exchanged their views with each other and looked out upon the differences in between, which manifested a realistic spirit and created a new diplomatic pattern between the Chinese and American leaders. Chinese government, on the one hand, diligently made up the trade deficit between the US and China, on the other hand, promised that China does not seek large quantity of trade surplus. President Hu explained the detailed procedure about how to promote domestic demand and transform economic growth mode during his visit. In terms of intellectual property rights issues, both sides voiced their stance and attitudes. Just like President Bush said after the summit, "what I said to President Hu are all from the bottom of my heart." After five meetings through last year, President Hu and President Bush not only established good personal relationship, but also become more and more familiar with the way of exchanges in which both sides are very frank and sincere. This is an important symbol that demonstrates Sino-US relations have become more and more mature.

Thirdly, both President Hu and President Bush have been actively exploring a possible way to further develop Sino-US relations in the future. The long-term development of the bilateral relations requires more than economic and trade exchanges and security cooperation. New channels for wide-ranging exchanges should be established. Hu chose an "economic and trade visit" in Seattle as the kickoff of his state visit, then a "political visit" in Washington D.C. as the star turn, finally a "cultural visit" at Yale University as the epilogue. This actually reflects the basic mentality of the Chinese government in developing the future Sino-US relations. That is: an emphasis on both economic foundation and strategic relations, and a focus on both cultural exchanges and social communications. Meanwhile, the two sides also achieved widespread common consensus on issues such as energy cooperation and non- traditional security cooperation.

By People's Daily Online; The author Yuan Peng is deputy director of US Studies Institute of China Institutes for Contemporary International Relations

http://english.peopledaily.com.cn/200604/24/eng20060424_260750.html

China issues white paper on peaceful development

www.chinaview.cn 2005-12-22 10:31:33

BEIJING, Dec. 22 (Xinhuanet) --China on Thursday issued a white paper on its peaceful development, stating that it is the inevitable way for the country to achieve modernization.

The 32-page white paper, titled "China's Peaceful Development Road" and published by the Information Office of China's State Council, fully explains the inevitability for the country to pursue peaceful development.

It also outlines the major policies China has taken to achieve the goal and demonstrates the country's resolve to stick to the road of peaceful development now and in the future.

"China's road of peaceful development is a brand-new one for mankind in pursuit of civilization and progress, the inevitable way for China to achieve modernization, and a serious choice and solemn promise made by the Chinese government and the Chinese people," said the white paper.

It is an inevitable choice based on its national conditions, its historical and cultural tradition and the present world development trend that China persists unswervingly in taking the road of peaceful development, said the paper.

"The road of peaceful development accords with the fundamental interests of the Chinese people," it said.

The white paper recalled that since the policies of reform and opening up were introduced at the end of the 1970s, China has successfully embarked on a road of peaceful development compatible with its national conditions and characteristics of the times.

Along this road, the Chinese people are working hard to build China into a prosperous, powerful, democratic, civilized and harmonious modern country, and continually making new contributions to human progress with China's own development.

China's development needs a peaceful international environment, noted the paper, pointing to the fact that for years, the Chinese government and people have made unremitting efforts to create a peaceful international environment.

"They cherish dearly the peaceful international environment jointly created by the peace-loving and progress-seeking countries and peoples," said the white paper.

The paper also listed many figures to illustrate the substantial achievements made by the country in seeking a peaceful international environment, saying that China's development has made positive contributions to world peace and development.

The country's per capita GDP rose from less than 300 U.S. dollars in 1978 to more than 1,400 dollars in 2004. It has created a miracle by feeding nearly 22 percent of the world's population on less than 10 percent of the world's arable land.

The Chinese government has lifted 220 million people out of poverty, and has provided minimum living allowances to 22.05 million urban residents and aid to 60 million disabled people, according to the paper.

"China cannot develop independently without the rest of the world. Likewise, the world needs China if it is to attain prosperity," said the white paper.

In recent years, despite increasingly severe global economic fluctuations, China's economy has maintained a stable and relatively fast growth, bringing hope and a new driving force to world economic development.

Statistics released by the World Bank show that China's economic growth contributed an average 13 percent to world economic growth from 2000 to 2004.

China imported 500 billion U.S. dollars worth of commodities annually during the period from December 2001 to September 2005, which meant 10 million jobs for the countries and regions concerned, according to the white paper.

In the next few years, it will import 600 billion dollars worth of goods annually, and the amount will exceed 1 trillion dollars by 2010.

"Over the years, China has persisted in the policies of peace, development and cooperation, and pursued an independent foreign policy of peace," said the paper. "China has been playing a constructive role in, and making efforts to attain the lofty goal of, building a harmonious world together with all other countries."

According to the white paper, China has joined more than 130 inter-governmental international organizations, is committed to 267 international multilateral treaties and actively participates in international cooperation in such fields as anti-terrorism, arms control, non-proliferation, peacekeeping, economy and trade, development, human rights, law enforcement, and environmental protection.

Thanks to the joint efforts with various countries, China has, so far, signed boundary treaties with 12 continental neighbors, settling boundary issues left over from history.

China has also provided assistance to more than 110 countries and regional organizations for over 2,000 projects so far. China has reduced or canceled 198 debts totaling 16.6 billion RMB yuan owed to it by 44 developing countries.

The white paper said the Chinese government and people are well aware that China is still a developing country facing a lot of difficulties and problems on its road of development.

"Past experience indicates that fundamentally China must rely on itself to solve the problems in its development," said the white paper. "China will not shift its own problems and contradictions onto other countries, much less will it plunder other countries to further its own development."

It said that the road of peaceful development accords with the fundamental interests of the Chinese people; it also conforms to the objective requirements of social development and progress of mankind.

"China is now taking the road of peaceful development, and will continue to do so when it gets stronger in the future," said the white paper. Enditem

http://news.xinhuanet.com/english/2005-12/22/content_3955128.htm

China to keep to road of peaceful development: Hu
UPDATED: 09:50, September 16, 2005

 
Chinese President Hu Jintao delivers an important speech on the United Nations summit in New York on Sept. 15, 2005.

China will unswervingly keep to the path of peaceful development, Chinese President Hu Jintao reiterated in the United Nations Thursday at the United Nations summit marking the 60th anniversary of the establishment of the world body.

China will continue to hold high the banner of peace, development and cooperation, and firmly pursue the independent foreign policy of peace, the Chinese president said.

China will continue to dedicate itself to developing friendly relations and cooperation with all countries on the basis of the Five Principles of Peaceful Coexistence, he said.

"Always integrating our development with the common progress of mankind, we take full advantage of the opportunities brought by world peace and development to pursue our own development while going for better promotion of world peace and common development through our successful development."

"China will, as always, abide by the purposes and principles of the UN Charter, actively participate in international affairs and fulfill its international obligations, and work with other countries to build a new international political and economic order that is fair and rational," Hu said.

The Chinese nation loves peace, and China's development will not hurt or threaten anyone, but serve peace, stability and common prosperity in the world, the president noted.

Also at the meeting, the Chinese president put forward a four-point proposal for building a harmonious world with lasting peace and common prosperity:

-- A new security concept featuring mutual trust, mutual benefit, equality and cooperation must be cultivated.

-- The United Nations should take concrete measures to implement the Millennium Goals, particularly in the area of accelerating the development of developing countries.

-- Every country has the right to independently choose its own social system and path of development.

-- Rational and necessary reforms should be carried out to maintain the authority of the United Nations and improve its efficacy and capacity to take on new threats and new challenges.

Source: Xinhua

http://english.peopledaily.com.cn/200509/16/eng20050916_208855.html
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Bush appreciates China's assistance to US hurrican-hit areas
UPDATED: 08:31, September 16, 20

US President George W. Bush expressed his appreciation for China's assistance to the hurricane-hit areas in a recent meeting with his Chinese counterpart Hu Jintao in New York, Chinese Foreign Ministry spokesman Qin Gang said Thursday.

Qin told a regular press conference that the Chinese government and people showed deep sympathy and condolences to the US government and people over the human and property losses in the southern states hit by Hurricane Katrina. China offered assistance to the best of its ability.

"US government officials spoke highly of China's help on different occasions," said Qin, adding that he hoped the Chinese assistance will help the people in the disaster-stricken states to rebuild their homeland.

The US states of Florida, Louisiana, Mississippi and Alabama were hit by Hurricane Katrina, the strongest since 1969, in late August, causing heavy human and property losses. The overall death toll from the hurricane rose to 708 by Wednesday, with estimated losses over 100 billion US dollars.

Source: Xinhua
http://english.peopledaily.com.cn/200509/16/eng20050916_208797.html

Sino-US cooperation, exchange and coordination

UPDATED: 16:55, May 11, 2006

China and the United States have different historical conditions and social systems, and thus have different values rooted in different civilizations. These two different civilizations can and must seek common ground and communication, and the two countries should not make the differences become the basis for the Cold War mentality. Peoples of the two sides have shown mutual respect and mutual learning spirit in the exchanges, which has proven this point. The practical-minded spirit and the respect for innovation are important conditions for mutual communication.

China's peaceful development has attracted great attention and has won certain recognition of the US strategic community and decision-makers. Many facts have demonstrated that Sino-US relation is becoming more and more mature.

US President Bush once stressed that he was looking forward to a candid, constructive, and cooperative US-China relationship, which is called "3C" relationship. I express my appreciation. However, some recent US policies toward China remind me of another "3C": complex, contradictory, and confusion. For example, on the one hand, the United States recognized China's commitment and experience on the peaceful development, but on the other hand, it still has fundamental skepticism on whether China would be able to stick to this path.

To this end, I would like to bring up another "4C", in which I anticipate that China and the United States can work together in the light of the spirit of communication, complementary, coordination, and cooperation and shape the future bilateral relations in terms of five aspects.

The first is regarding the strategic issues. Both countries should strengthen exchanges and communications so as to enhance mutual trust, dispel doubts, and, reduce misjudgment. Mr. Dai Bingguo and Mr. Robert. B. Zoellick initiated the Sino-US strategic dialogue which is a very good platform for mutual exchange. The more such communication opportunities, the better. As the world's only superpower and a emerging country that plays an increasingly important role on the international arena, the United States and China should constantly communicate with each other on strategic issues.

Second, concerning the economic, trade and energy issues, both countries should further tap the complementary advantages and learn from each other instead of malicious counteracting each other. If the two sides do want to overcome the economic and trade frictions, both sides must firstly adhere to the non-politicization principle of economic issues, respect the conditions and stages of development of each other, and, work together with each other rather than making unilateral efforts. Energy cooperation is vital to the sustainable development of the two countries in the 21st century. The advanced energy technology of the United States is complementary to China's huge energy demand. The development of the US national energy policy can be a good experience for China to learn from to developing more scientific and rational energy strategies.

Third, concerning the regional issues, China and the United States should strengthen coordination, avoid conflict, and, target on a win-win goal. Some American people believe that China is planning a so-called "Asian version of Monroe Doctrine," in which China meditates edging the United States out of the "Asia-Pacific" region. If such suspicions are allowed to spread, the only result could be a "security dilemma" for the United States in which it would be unable to pull itself out thus end up with nothing. The best way to resolve such suspicions is to conduct coordination through prior notice, afterwards summary, and frequent communication. If China and the Untied States can achieve a long-term peaceful coexistence in the Asia-Pacific region, it could be a blessing for the whole region.

Fourth, both countries should further the cooperation in non-traditional security field so as to expand the strategic foundation of the Sino-US relations. Sino-US cooperation in this field is the most successful cooperation, reporting the least obstacles. Non-traditional security cooperation not only helps alleviate the mistrust between the two countries in the traditional security field, but also provides the two with useful experience in other fields and promotes the establishment of a broader platform.

Fifth, in a deeper sense, China and the United States should broaden their visions and seek common ground while reserving differences in order to promote the communication between the two different civilizations.

In short, basing on the political cooperation, security cooperation, and economic and trade cooperation in the past, China and the United States should be able to get beyond the Cold War mentality, expand strategic cooperation, energy cooperation, regional cooperation, non-traditional security cooperation and communication between the two civilizations, and, create a broader and brighter space for the future development of the Sino-US relations.

The author Zheng Bijian is director-general of the Forum on China's Reform and Opening-up.

http://english.peopledaily.com.cn/200605/11/eng20060511_264781.html

China will never seek hegemony: Premier Wen

www.chinaview.cn 2004-06-28 16:12:22

BEIJING, June 28 (Xinhuanet) -- China will never threaten any one, pursue expansion or seek hegemony, said Chinese Premier Wen Jiabao here Monday.

Wen made the remarks when addressing a conference commemorating the 50th anniversary of the Five Principles of Peaceful Coexistence.

He said that China will always put development on the top of its government's agenda. A successful running of China is in itself a major contribution to peace and development of humanity.

He added that China will continue to pursue an independent foreign policy of peace, and dedicate itself to developing friendly relations and cooperation with all countries.

China will firmly safeguard its sovereignty and territorial integrity, tolerating no one to interfere in its internal affairs. At the same time, the country will respect the sovereignty and territorial integrity of others, he noted.

China will open still wider to the outside world on the basis of equality and mutual benefit, while engaging in economic and technical cooperation with other countries with greater scope and depth, he said.

China will continue to improve and develop its relations with the developed countries, expand the areas of common interests and properly handle the differences with them, he noted.

Wen said that China will build good-neighborly relationships and partnerships and work still harder in implementing the policy of creating an amicable, secure and prosperous neighborhood.

China will continue to strengthen the solidarity and cooperation with the vast number of developing countries, and actively explore ways for effective South-South cooperation under the new circumstances, he said.

China will vigorously participate in multilateral diplomacy and play a constructive part at the United Nations and other international and regional organizations, he said.

The Five Principles of Peaceful Coexistence are mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence. Enditem

http://news.xinhuanet.com/english/2004-06/28/content_1551712.htm

How to face the internationalized Sino-US relations

UPDATED: 11:54, February 11, 2006

Sense of responsibility, maturity and spirit of partnership are the right attitudes to face the current internationalized Sino-US relations. It needs decision-makers to have great vision and resolution.

China and the US have differences on the current international system, but it is a matter of depth. The two countries are also facing important opportunities to expand and deepen bilateral cooperation.

Over the past 30 years, Sino-US relations have experienced two important turning points. One was in 1972 when former US President Richard Nixon visited China and ended the 20 years of hostile relations between the two countries and began the US, former Soviet Union and China triangular relations. The other was after the cold war and Sino-US relations have gradually developed in bilateral and regional perspective.

2005 marks an important year for Sino-US relations. The US foreign policy decision-makers started to consider US-China relations from an international perspective. US Secretary of State Condoleezza Rice said she hoped China to become a positive force in international politics and a global partner. And deputy Secretary of State Robert Zoellick proposed China be a 'responsible stakeholder' and maintain the current international system together with the US.

The two high-level talks between the two countries in the latter half of last year discussed how to cooperate in a series of international issues. During the second round of talks, in particular, Zoellick invited Chinese delegates to visit the former residence of late US President Franklin Roosevelt who was also one of the important founders of the current international system. This also shows the US' new expectations on US-China relations.

It's the US' new thinking on its China policy to put the US-China relations in the international system. This is due to two important factors. One is the knowledge of China's fast development. Over the past two years, the US government and the public have looked at China's development with new eyes. On the other hand, they also felt China's capability of influencing the US interest. The US is seeking new ways to face the situation. Hard-liners want to balance or contain China while others want to give good-will directions and use China's increasing influence to promote China's cooperation in all the important issues that the US concerns and expand US-China relations in the international arena.

Two, the Bush administration has realized the limitations of the US. From Iraq war to North Korean nuclear issue, experiences show that the US is very powerful, but not necessarily capable in everything. The US is unable to deal with challenges alone and can't solve problems solely according to its own will. The US has to seek coordination and cooperation with other powers and the international community.

The two countries have differences on the current international system

It's an undisputable fact that the Sino-US relations have gone beyond bilateral ties to the regional and international arena. But the two countries have differences on the current international systems including political, economic and security systems.

On the international political system, both China and the US recognize the framework of the United Nations. But they have important ideological and policy disputes. China advocates democracy in international relations. That is all countries are equal no matter they are big or small, rich or poor, strong or weak. When dealing with conflicts and contradictions between nations, the United Nations should play an important role. But the United States has taken a pragmatic attitude, putting the United Nations aside for its own interest and often boasting to be the leader of the international community. As US President George W. Bush said in his State of the Union address, 'the only way to protect our people, the only way to secure peace and the only way to control our destiny is by our leadership, so the United States of America will continue to lead.' This attitude and the abuse of pragmatism have substantially decreased the will of many powers including China to cooperate with America.

On the international security system, there are also many obstacles for China and the US to cooperate. The UN and other related international security mechanism constitute the current international security system. Both China and the US agree that they have played an important role in maintaining world peace and security. However, due to lack of a reserved armed forces and relevant intervention mechanism, the UN has its limitations in exerting its role in maintaining world peace and security, let alone restricting the US and its vast allies as well as its powerful military forces formed by military machines. In addition, the US' pragmatic attitude and double standards on the international security mechanism have made the effectiveness of these mechanisms fall short of their requirements.

Due to the vulnerable and incomplete current international security system, China and the US are cooperating mainly in issues such as bird flu, transnational crime and the proliferation of weapons of mass destruction. But the US will not allow China to influence its global military security system. The US has always tried to figure out China's military strength in the international perspective. For example, the newly issued 'Four-year National Defense Appraisal Report' has shown that Pentagon has treated China as its potential military rival. Behind this appraisal is the obsession of the US unilateral military advantage and its absolute security and its impulse of leading the international security. As for China, if its just resort to security couldn't be understood or respected, then what's the motivation for China to cooperate with the US in international security?

Comparatively speaking, China and the US have great potential for cooperation under the current international security system. But it doesn't mean that there is no contradictions or problems between the two sides. Although China has become a member of the WTO, its comparative advantages have constantly been boycotted by the US and other developed countries with their protectionism tendency. As a developing country, China's status has decided that it will make rules that are conducive to the developing countries. Since China is not yet a member of G8 which are the major rule-makers for the current WTO, it doesn't have an obligation to obey the rules conducive to the developed countries. On the other hand, due to the short supply of energy in the world and China's expanded demand of energy from the outside world, the US has politicized the issue. This will not be conducive to Sino-US cooperation in this field.

Thus to put the international perspective as a support for bilateral relations is the main tendency for the future, but there are also a lot of challenges ahead. The key is whether China and the US can coordinate with and adapt to each other in order to build a new international political and economic order and lay a solid foundation to form a long-term and more reasonable international system.

Three attitudes towards the new change

To achieve the above goal, China and the US need to have the sense of responsibilities. For China, it should look at issues from an international perspective and understand the concerns and demands of the international community and willing to provide public goods for the international community so that its contribution goes along with its increasing comprehensive strength. For America, it needs to restrain its unilateral impulse and correctly use its super power and willingly obey the multilateral will on important international issues.

Secondly, the US side should look at China's increasing influence with a mature attitude. The increase of China's influence in the world is conducive to building a harmonious world. But the US shouldn't think China will always play a supporting role in international affairs. China will not just seek cooperation with the US without any principle in the international affairs, but act according to its own diplomatic principle and sense of value. China and the US are mutually complementary in international affairs, but they are also competing with each other, sometimes, the competition is quite fierce.

To achieve effective cooperation, the US should contact China with the spirit of partnership. It means that the US should consult with China on an equal footing on international affairs, and not be arrogant and impose its ideas on others. Since the US expects China to shoulder more responsibilities and obligations, it should respect China's say in the international affairs, too.

Although the Sino-US relations are more and more internationalized, it still needs mutual support to develop such a relationship and the depth of bilateral cooperation is decided by such relationship. Since the US hopes China to play a partnership role, it should treat China with a spirit of partnership and not challenge China on its core national interest.

The Sino-US relations are facing important opportunities in expanding and deepening international cooperation, promoting world peace and prosperity. If the triangular relations between former Soviet Union, the US and China were in accordance with the international situation then, now the internationalized Sino-US relations reflect the characteristics of globalization and the fact that China's comprehensive strength is indeed increasing. Facing such a reality, decision-makers from both sides need to have a great vision and resolution.

Wu Xinbo, the author of this article published on Global Times is the deputy principal of the International Relations and Public Affairs College of Fudan University in Shanghai.

http://english.peopledaily.com.cn/200602/11/eng20060211_241858.html

Interview: U.S. scholar says China's military spending modest

UPDATED: 17:15, February 10, 2006

A U.S. scholar said Thursday that China's military spending is rather modest and that a Pentagon report that faults Chinese defense spending is aimed at justifying its own inflating expenditures.

"I do not see how China's military spending is terribly threatening the vast military capabilities of the United States," Ted Galen Carpenter, vice president for defense and foreign policy studies at the Cato Institute, said in an interview with Xinhua.

Carpenter, who is vice president for defense and foreign policy studies at the Cato Institute, made the remarks when asked about the Quadrennial Defense Review Report (QDR) released by the Pentagon last Friday.

He said China's defense budget, with an official figure of some 30 billion dollars, is only a small amount in comparison to U.S. military spending which is going to be about 440 billion dollars next year, excluding the costs of operations in Iraq and Afghanistan, he said.

"China's military spending is rather modest. It is not alarming," Carpenter said.

As for his view on the statement in the QDR's China section that "the pace and scope of China's military build-up already puts regional military balances at risk," Carpenter said: "I think that is where the Chinese government can take issue with the QDR... We do not see a massive military build-up that will raise questions about Beijing's motives."

Carpenter believed the main purpose of the QDR was to justify the Pentagon's inflating military spending and "the section on China is just a means to that end."

If the Pentagon said the global situation did not look very threatening, the United States had no obvious enemies other than terrorists or low-tech threats, Congress would significantly reduce the defense budget, Carpenter said.

"So the Pentagon currently has every incentive to portray the global threat environment in the most alarming terms," he said.

However, Carpenter said the Pentagon report would not dominate U.S. foreign policy toward China because the Bush administration regards the relationship with China as "a critically important one."

Neither the White House nor officials at the State Department talk much about the so-called "China threat" because "that creates animosity in the relationship between Beijing and Washington and that is not something the White House or the State Department wants," Carpenter said.

Source: Xinhua

http://english.peopledaily.com.cn/200602/10/eng20060210_241634.html

China issues white paper on political democracy

UPDATED: 14:46, October 19, 2005

The Information Office of China's State Council issued Wednesday a white paper on China's political democracy, vowing to actively push forward the reforms of its political system although, it said, tremendous achievements had been scored in this regard.

The white paper, issued by the Information Office of China's State Council, or the cabinet, is the first of its kind in China, giving a detailed account of the inception, development and contents of the socialist political democracy and the principles the country will abide by.

The document, titled Building of Political Democracy in China, also points out that the problems the country has to overcome and major steps to be taken in the reforms of its political system.

The socialist political democracy "is the apt choice suited to China's conditions and meeting the requirement of social progress," said the white paper.

Such democracy has enabled the Chinese people, who account for one fifth of the world's population, "to become masters of their own country and society, and enjoy extensive democratic rights, " the white paper says.

In building socialist political democracy, China has always adhered to the basic principle that the Marxist theory of democracy be combined with the reality of China, it says.

In the process, China has also borrowed from the useful achievements of the political civilization of mankind, including Western democracy, and assimilated the democratic elements of from China's traditional culture and institutional

civilization.

"Therefore, China's socialist political democracy shows distinctive Chinese characteristics," says the white paper.

Such characteristics are as follows:

-- China's democracy is a people's democracy under the leadership of the Communist Party of China (CPC).

-- China's democracy is a democracy in which the overwhelming majority of the people act as masters of State affairs.

-- China's democracy is a democracy guaranteed by the people's democratic dictatorship.

-- China's democracy is a democracy with democratic centralism as the basic organizational principle and mode of operation.

The white paper says the CPC's leading status was established gradually in the protracted struggle and practice of the Chinese people in pursuing national independence, prosperity and a happy life.

"It was a choice made by history and by the people," the document notes.

Over the past 20 years and more, great progress has been made in China's practice in building a socialist democratic political system, the white paper says, providing a list of the achievements.

It points to the fact that the system of the people's congresses, the system of multi-party cooperation and political consultation under the leadership of the CPC, and the system of regional autonomy for ethnic minorities -- all important

components of China's democratic system -- have been continuously improved and developed.

The democratic rights of people at the grassroots level in urban and rural areas have been constantly increased, and the citizens' basic rights are respected and guaranteed.

The CPC's capability to rule the country in a democratic manner has been enhanced further, while the government's capability to administer the country in a democratic manner has been strengthened noticeably.

"Major aspects of China's politics, economics, culture and social life are now within the purview of the rule of law," says the white paper.

"Despite the tremendous achievements scored in building a socialist political democracy, the CPC and the Chinese people are clearly aware of the many problems yet to be overcome," the document notes.

The major ones include: the democratic system is not yet perfect; the people's right to manage state and social affairs, economic and cultural undertakings as masters of the country in a socialist market economy are not yet fully realized; laws that have already been enacted are sometimes not fully observed or enforced, and violations of the law sometimes go unpunished.

The white paper also admits that "bureaucracy and corruption still exist and spread in some departments and localities."

It also points out that the mechanism of restraint and supervision over the use of power needs further improvement and the concept of democracy and legal awareness of the whole of Chinese society needs to be further enhanced.

"There is still a long way to go in China's building of political democracy, which will be a historical process of continuous improvement and development," says the white paper.

According to the document, at present, and for a period in the days to come, the CPC and the Chinese government "will actively and steadily push forward the reform of the political system."

They will also stick to and improve the socialist democratic system, strengthen and improve the socialist legal system, reform and improve the methods of leadership and rule of the CPC, reform and improve the government's decision-making mechanism.

The white paper also stresses the importance of the reform of the system of administrative management, the reform of the judicial system, the reform of the cadre and personnel system, and the restraint and supervision over the power.

According to the white paper, China's building of political democracy will abide by the following principles:

-- Upholding the unity of the leadership of the CPC, the people being the masters of the country and ruling the country by law.

-- Giving play to the characteristics and advantages of the socialist system.

-- Being conducive to social stability, economic development and continuous improvement of the people's life.

-- Facilitating the safeguarding of national sovereignty, territorial integrity and state dignity.

-- Being in accord with the objective law of progress step by step and in an orderly way.

The white paper consists of 12 parts, including the people's congress system, the system of ethnic regional autonomy, grassroots democracy in urban and rural areas, and respecting and safeguarding human rights.

Source: Xinhua

http://english.people.com.cn/200510/19/eng20051019_215254.html

UPDATED: 15:00, October 27, 2005

Sensitive public opinion at home and abroad has noticed that the just concluded Fifth Plenum of the 16th CPC (Communist Party of China)Central Committee has taken serious action to firmly deal with the realities of the loss of social justice and the continued widening of the wealth gap.

Social justice has always been the ideal of humankind. The gap between urban and rural areas, between regions and between the poor and the rich -- these "three yawning gulfs", seen as tough as bulls during the "cultural revolution" (1966-1976) were declared to be swept away, but the result was that urban and rural areas, workers and farmers and eastern and western regions were plunged into collective poverty. People with different natural endowment and regions with varying resources were required to "march" at the same speed, which is not equity in its real sense.

Reform has led to the overturn of superficial fairness, some people have become wealthy first. The widening three big gaps are hardly avoidable problems in the reform drive. At present, the gap between the richest and the poorest Chinese provinces is over 10-fold in terms of per-capita GDP, but this does not mean that the development of the western region is in a state of stagnation or retrogression. As a matter of fact, the western region is also accelerating its development.

A careful examination of the "three yawning gulfs" reveals the existence of dramatic irrationality.

For instance, the "three rural" (agriculture, rural area and farmer) problems result from dual unfairness of the past and present. The "price scissors" policy introduced for industrial and agricultural products in the early period after the founding of New China in 1949 aimed to win an accelerated industrialization at the expense of the partial interests of agriculture and farmers. After the start of the reform and opening up program in late 1978, the rural areas provided cities with huge amounts of cheap labor, cheap lands and cheap agricultural products, thus speeding up the drive for urbanization, agriculture and farmers again made sacrifices for this. The existence of the urban-rural dualistic structure made it impossible for farmers to receive equal pay for equal work and to enjoy same educational resources and a relatively sound social security system.

Let me take up the question of regional difference.

Shortly after the initiation of the reform and opening up program, eastern regions enjoyed preferential policies including capital construction investment and taxation, they thus accelerated the speed of development. China's western regions that contributed huge amounts of resources to eastern regions found it hard to catch up for the time being due to the multiple limitations of region, communications and economic base.

Besides, there is inequality in development opportunity.

Take college entrance examination for example. The examinees get the same marks, due to regional difference, however, some children can be admitted into brand universities, while some other children find their names are not on the published list.

This is the extremely complicated reality of China, positive and negative factors are mixed and intertwined, therefore it is difficult to unravel them or straighten them out.

Deng Xiaoping once pointed out with strategic foresight: The problem of the poor-rich gap and unfair distribution "shall be particularly brought up and resolved at the end of this century when China will have reached a moderately prosperous level". The "stratum, which got rich first" and once served as the engine of reform, have tasted the fruit of reform and openness earlier than others. Now it is time to establish a system requiring this portion of people and regions to feed the "late wealth-winning" strata and regions.

China has all along been making efforts in these aspects: Abolishing agricultural tax in a large scale, instituting tuition-free compulsory education among poverty-stricken population, intensifying efforts for the transfer of payment, and adjusting the cutoff point pf personal income tax. More strenuous efforts will likely be made in the days to come. New reforms will affect the vested interests of certain social strata and certain regions, which means the redistribution of social wealth. Some prices must be paid for lasting peace and stability and for real harmony of society.

The article is carried on the front page of People's Daily Overseas Edition, Oct. 27 and translated by People's Daily Online

http://english.people.com.cn/200510/27/eng20051027_217265.html

Unswervingly following the road of peaceful development

September 3 is the day of victory in the Chinese people's anti-Japanese war and the world anti-fascist war. We should keep history firmly in mind, not forget the past, cherish peace and usher in the future. Chinese leaders once again declare that China is to unswervingly follow the road of peaceful development and, together with the people of various countries around the world, jointly promote the lofty cause of human peace and development. This is a solemn promise made to the world's people.

At present, the world wants peace, the people want cooperation, countries want development, and society wants progress, which are converging into a strong current. China unswervingly following the road of peaceful development is precisely in compliance with the demand of the times.

China is an active initiator as well as a faithful practitioner of the lofty cause of peace, development and cooperation. Shortly after the founding of New China in 1949, the Chinese government creatively set forth the Five Principles of Peaceful Coexistence and set up the base for its independent foreign policy of peace.

As the largest developing country, China has taken newer and greater steps on the road of peaceful development by carrying out reform internally and opening up to the outside world externally over the past 20 years and more. It has not only achieved the sustained, sound and rapid development of its own economy, but has also brought new development opportunities for its neighbors, Asia and even the entire international community.

China adheres to the principle guiding its relations with its neighbors: to become a good neighbor and a good partner as well as building build an amicable, tranquil and prosperous neighborhood. China is actively carrying out multilateral diplomacy and international cooperation. China has joined almost all major international organizations and is playing a vital role in arms control, trade and investment, anti-terrorism and other multilateral international mechanisms.

As a permanent member of the United Nations Security Council, China actively participates in the UN affairs, safeguards the authority of the UN, especially of the Security Council, defends the basic principles of the "UN Charter" and promotes the reform of the UN to develop in the direction of giving maximum consideration to the rational demands and concerns of developing counties.

China has increasingly merged itself in the world economic system after its accession to the World Trade Organization (WTO). With a population of 1.3 billion, China has provided and will continue to provide strong impetus to the development of the world economy. In 2004 the total volume of China's import and export reached US$1,154.8 billion, making it an important engine in world economic growth. By 2020, the scale and gross demand of the Chinese market will be doubled compared with the year 2000, all countries in the world will gain new development opportunities in this process.

The road of peaceful development chosen by China is a path for one to develop oneself in the defense of world peace, and to promote world peace through one's own development.

Since the introduction of the reform and opening up policy, China has maintained rapid, long-term economic growth and has experienced swift enhancement in its overall national strength. This has aroused the uneasiness of a small number of people in certain countries, some ill-intentioned people even seize the opportunity to spread the "China threat theory".

Historically, the rise of a big country usually would lead to a drastic change in the international pattern and world order, and would even trigger war. However, history has proved long before that whether or not a country would constitute a threat to world peace depends not on whether its national strength is powerful, but rather on what internal and external policies it pursues.

What China has chosen is a new industrialized road targeted at peaceful development. The word "new" is centralized on the word "peace": We are carrying out peaceful development externally, not to plunder other countries of their resources through expansion by force; and internally we are engaged in harmonious development, not to practice predatory business by risking the consumption of resources.

While meeting with a foreign guest in 1985, Deng Xiaoping said, "China is now a force maintaining world peace and stability, not a destructive force. The stronger China is developed, the more reliable is world peace", "When China has developed, the peace force restricting war will be greatly enhanced". China does not seek hegemony at present, and will not seek hegemony when it is developed in the future. This is the sincere and solemn promise made by the Chinese people.

Seeking development amidst peace is a matter of paramount importance in today's world. China has resolutely embarked on the road of peaceful development and has scored remarkable achievements. We are also clearly aware that the basic national condition of being a large country with a poor foundation to start with has not been fundamentally reversed; compared with advanced countries in the world, China still lags far behind. Given this situation, realizing our magnificent goal requires not only a long-term peaceful international environment, but also the development of friendly cooperation with various countries around the world. The opening world has provided China with space for development, China's development can't be achieved without the world.

In unswervingly following the road of peaceful development, we must continue to actively carry out international cooperation, participate in international competition on an equal footing and expedite a continual rise in the level of opening to the outside world and enhancement in our overall national strength and competitiveness.

In unswervingly taking the road of peaceful development, we must continue to persist in the independent foreign policy of peace, and create a peaceful international environment featuring long-term stability, security and reliability for China's modernization drive.

In unswervingly following the road of peaceful development, we must respect the diversified civilizations of various countries, encourage various civilizations to learn from each other's strong points to offset one's own weakness in the course of dialogs and exchanges, we must advocate mutual tolerance among various civilizations and common development in the course of seeking common ground while reserving differences.

History is like a mirror reflecting the reality as well as a most philosophic textbook. Through constant review and profound thinking of the history of the Chinese people's anti-Japanese war and the world anti-fascist war, people of various countries around the world will definitely deepen their scientific knowledge about the natural law governing the development of human society and on this basis further enhance their self-consciousness in safeguarding peace and jointly seeking development, cooperation and a win-win situation.

China today has embarked on the road of peaceful development. No matter how the international situation may change, the Chinese people will continue to hold high the banner of peace, cooperation and development, unswervingly follow the road of peaceful development and, together with the people of various countries around the world, jointly promote the lofty cause of peace and development of humankind.

By People's Daily Online
http://english.peopledaily.com.cn/200509/02/eng20050902_206104.html

 China's growth benefits world: British experts
www.chinaview.cn 2005-09-02 11:21:25

LONDON, Sept. 1 (Xinhuanet) -- The world benefits from the growth of China, and receives no threat from it, some experts in London commented on Thursday.

    China's exports to the world have contributed to global economic growth and stability, Hussain Athar, deputy director of the Development Studies Institute at the London School of Economics and Politics (LSE), said in an exclusive interview with Xinhua.

    With its size as a producer and consumer and considering its high speed of growth, "China is understandably seen as a huge elephant entering the room of the world economy, you've got to readjust to make accommodation for it," Athar said.

    But the readjustment requires effort on all sides -- from China as well as other parts of the world, he added.

    Athar dismissed the "threat" rhetoric, saying that if any one says China is a threat to the world, the problem lies with them, not China.

    He pointed to the fact that China successfully feeds over 20 percent of the world population, and also provides so many quality products to other parts of the world, saying that China's development contributes to world peace and stability.

    China is also an accountable country. Many years ago, former Chinese leader Deng Xiaoping promised that his country would concentrate on its domestic economic development. Over the 20-plus years since China opened up to the outside world, the growth of its economy bears witness to the fact that China really meant it, according to the LSE expert.

    Athar is critical of those imposing bans on China's textiles, as is currently being done by the United States and the European Union. These actions run against the spirit of liberty and free trade, the expert said.

    While Chinese clothes are being banned and stockpiled in ships off the coast, consumers in Britain and other EU countries are complaining that as a consequence, they will have to pay much more for their autumn and winter garments, he said.

    Displeasure over this issue was shown in the Daily Telegraph newspaper, one of the most influential in Britain, which said Wednesday that the behavior of the EU in its textile dispute with Beijing has been both "short-sighted and muddy."

    The fact that Peter Mandelson, the EU Trade Commissioner, failed to dissuade the "protectionist lobby" in France, Italy, Spain and Eastern Europe from seeking a deal on Chinese clothing, will simply push European retailers to switch to other suppliers such as India or Turkey, said the newspaper.

    The article argued that it would be better to allow the Chinese their competitive advantage at the lower end of the manufacturing spectrum, which frees Britain and other European countries to concentrate on service, niche products and technologies that will be the engine of their own economies in the future.

    Another LSE expert argues that one should never set a framework or limits on the world's economic development structure.

    Christopher R. Hughes, from LSE's International Relations department, said Thursday that free trade means fair competition, in which all participants are equal and one should never hope that the defending champion should always get the trophy.

    Hughes said China is really making the Western countries richer. Consumers certainly feel richer, he explains, "because we see falling prices for clothes and consumer electronics in the shops."

    "Quotas are not the answer, that is clear. However, in what ways can the EU states restructure their social model to compete with China?" asked the expert.

    In his opinion, talk of China as a "threat" goes back over a hundred years and the rhetoric has been growing stronger since the end of the Cold War.

    However, it has probably lessened since the 1990s, and people have started talking more about the practical problems of working with China, the expert said. There is a line where practical issues and ideological issues overlap, he added.

    "I think that if all sides view this in terms of practical problems that have to be solved in the interests of both the West and China, rather than in ideological terms, then there should be less talk of a China threat," Hughes said.

    He also believed that Chinese workers should be allowed to enjoy the same rights as their Western counterparts, saying he was delighted to see his Chinese friends and colleagues enjoy a better standard of living and more opportunities than in the past. Enditem
http://news.xinhuanet.com/english/2005-09/02/content_3432496.htm

US scholar: Strong China not a security threat
www.chinaview.cn 2005-08-26 11:33:38

WASHINGTON, Aug. 24 (Xinhuanet) -- A stronger China does not mean it becomes a threat to the United States and the Asian country's rapid development is to the benefit of the whole world, including America, a US scholar says.

    Michael Swaine, an expert on US-China military and security policy at the Carnegie Endowment for International Peace, a leading think-tank in the United States, paid tribute to China's rapid growth.

    "It is to the benefit of the world, to the benefit of Asia and to the benefit of the United States for China to be continuing to grow, to expand economically, to become more prosperous, to become, as a result hopefully, more stable and more involved in the international community," Swaine told Xinhua in a recent interview.

    "I myself don't believe that if China is becoming a larger power with more capability, ... it by definition becomes a threat to the United States," Swaine said.

    "If China's growth were to falter, or it began to decline or to break up, I think that many Americans would believe that this would be a very negative consequence for the region, for the world and for the United States. It will produce all kinds of difficulties," said Swaine.

    Swaine noted that the United States and China have "cooperative, convergent and overlapping interests" in many areas.

    "They want peace, stability and prosperity in Asia. They want the maintenance of basically market centered economies in Asia. They want to have free access to critical economic products, such as energy. They want to solve peacefully certain problems in the region such as the Korean Peninsula issue, the problems of the Middle East, and the Taiwan issue."

    But he also admitted there are certain areas that could become "very conflictual" between the United States and China and said the US-China relationship is probably the most complicated bilateral relationship in the world.

    "It combines elements of competition and suspicion with elements of cooperation and some level of trust although the levelof the trust is far too low for what it should be," said Swaine.

    However, the scholar stressed that "it is not inevitable that a larger China will be equal to a predominantly threatening China that could lead to a confrontation or conflict" with the United States.

    The potentiality of conflict between the United States and China could be averted "through very continuous steady management and engagement by the two sides over a range of the issues that may develop differences about," he said.

    Actually, Swaine said, efforts are underway right now by the US and Chinese governments to try to really expand and deepen the dialogue at the senior levels of government to explicitly discuss the areas where they might disagree or agree on strategic questions. "That kind of discussion is essential."

    On the US objection to arms sales by some countries to China, Swaine criticized the US blockade as "not logical." "the United States does not have a good metric by which to measure what is or is not acceptable in terms of increased Chinese military capabilities," he said.

    On the Taiwan issue, Swaine said it is a "very uncertain" factor in the US-China relationship.

    "It could be sustained with relatively tolerable levels of stability for quite some time to come," said Swaine.

    But he added that the Taiwan issue, which is closely linked to the development of the Sino-American relationship, could become a critical factor. "If Sino-American relations are very bad, then the ability to maintain the stability of Taiwan could become much more difficult."

    Michael E. O'Hanlong, a senior fellow of the Brookings Institution, echoed some of Swaine's views on China's growth.

    "As China gets richer, it gets more militarily capable, which is worrisome... Yet it also liberalizes and becomes more integrated into the world community, which is promising," O'Hanlong said in a separate interview with Xinhua.

    "The big question for Americans is, which of these trends is stronger, and which will dominate the other. Our strategy overall is to assume the more optimistic outcome, and try to help China develop, which of course is also good for our own standard of living," he said.

    "The best bet is to hope engagement and development will make China prosperous, peaceful, and cooperative," O'Hanlong said. Enditem

http://news.xinhuanet.com/english/2005-08/26/content_3406353.htm

 A rational approach to China's development: Comment
UPDATED: 14:54, August 19, 2005

The "China threat" theory, first appeared in the early 1990s, chiefly targets China's high-speed economic development and has been on and off for more than a decade. In recent years, the theory has been extended to fields such as military security and energy.

Just as what Professor Joseph S.Nye said on today's People's Daily, the rising of a new power will inevitably cause anxiety to existing powers. (full text of Joseph S.Nye's interview, in Chinese). This is a psychological reality in international relations, as well as the psychological background of the "China threat" theory. Viewed from the modern history of international relations, a new power invariably asks for a re-distribution of power and interests, which frequently results in war. This is probably a conceptual background of the "China threat" theory.

However, what mentioned above is no more than a mindset based on a summary of the past 60 years. A new, realistic background analysis is probably needed here regarding China's development or rising.

China's economy began to take off in the 1980s along with the reform and opening-up, a time of rapid-moving economic globalization. The country's internal potential and learning capability merged into the globalization trend, gaining a huge momentum for the economy. Such a developing mode gives the following features to China's advancement.

First, it is a process of gradually merging into world market, a process of adapting oneself to international rules and playing games peacefully within them.

Second, it contains various interest entities and activities of various economies, forming win-win and multi-win relations with the economic activities of other countries. China's advancement has actually become a part of world development.

Third, China displayed a certain degree of imbalance between eastern and western regions during its development process, but policy coordination and the "spillover effect" in economy have begun to appear. Similarly, the nation's development apparently activated its economic relations with its neighbors, with "radiation" and "spillover" effects beginning to emerge.

It is due to these reasons that more and more nations looked upon China's development as an opportunity instead of threat, and more and more countries established complete free trade relations with China. In the United States, Japan and other places, those clinging to "China threat" fall into three main categories. First, interest groups who lost competitive advantages under free trade conditions. Second, people who have lost their physiological balance and are unable to treat China in an equal way. Third, those caught in traditional mindset.

Most people playing up "China threat" in the filed of military security are Americans. Actually, Americans are the least expected to do so considering the nation's military spending, which is about a dozen times higher than China's. Given China's vast land and population, even the inflated US estimations are at a low and very limited level. Viewed from history, China cherishes no tradition of expansion, but focuses more on cultural exchanges and radiation.

In today's world, security and economy also bear a global feature. Nuclear, for example, has increasingly become an issue concerning the life and death of all human beings. Terrorism also stands out as a global concern. China is perfectly aware of that, while some Americans are still indulged in the old dream of dominance by one.

Old mindset can only deal with past realities. A Newsweek column on August 15 criticized the US "awkward handling" of China's rise and its "misunderstanding" over contemporary China. This is absolutely true. Today, if one fails to look on China's development with an equal, open and rational attitude, he is bound to make "awkward" mistakes.

This article by Huang Qing, senior editor of People's Daily, is carried on the seventh page of People's Daily, August 19,and is translated by People's Daily Online

http://english.peopledaily.com.cn/200508/19/eng20050819_203491.html

A rational voice: on Overholt's article

The "China threat" theory which ceased to beat the drum for a while following the breakout of the war in Iraq shows a trend of making its way back in America recently. Among those who preach the "China threat" theory, some have little knowledge of China's contemporary development and policies, hence many misunderstandings. However, there are also some people, from the US conservative think tanks, to the CIA and the Pentagon, who, confined by the Cold War mindset, deliberately look for new potential enemies. Therefore, with ulterior motives, they describe China's modernization as a threat to America. It is the latter that make use of the ignorance of the former and try to misguide the government and the public opinion.

But more and more Americans are no longer willing to be biased or follow blindly after they realized that they have been deceived and misled by the CIA, Pentagon and the public opinion on the question of the Iraq war. They become more dispassionate and more reasonable. The so-called "China threat" theory made up by the cold-war experts and the Hawks met with cold shoulder and denouncement both in America and abroad once it came out. Many experts and scholars conversant with China issues recently joined each other in refuting the "China threat" theory with reason and evidence in their articles. Among them a rather potent one was published on the website of the RAND Corporation. The article "China and Globalization", is authored by William H. Overholt, who is in charge of the Asia/Pacific policy center of the corporation.

http://www.rand.org/pubs/testimonies/2005/RAND_CT244.pdf

After an objective comment on the chaos and weakness of the old China, the article points out that it was because of the weak China, which was incapable of deterring and repelling Japanese invasion, that incurred the US and the world a "horrible price". For this reason, the world needs a healthy China, the article says. The article continues by highly appraising China's globalization development in various fields. After citing rafts of figures and facts, the article says "although late, China has much more enthusiasm in joining the global system than Japan": not only in terms of attracting foreign direct investment (FDI) and free trade but also in terms of education and cultural exchange; not only in terms of seeking foreign technologies and management but also in terms of "adopting the rule of law and advocating competition" etc. Its conclusion is that China has come to believe in globalization more than most third-world countries and many first-world countries.

The article points out that China's globalization has, directly or indirectly, had a strong impact on other countries". On the one hand, China's success encourages other countries to emulate and helps remove the xenophobic mentality in many countries. On the other hand, in face of the bubble burst in technological stock markets and slowing global economic growth, countries like the Republic of Korea and the Philippines found themselves saved from recession by Chinese demand. More importantly, China's demand provides the stimulus that lifted Japan out of recession." "It is quite possible that China's globalization saved us", it is conducive to helping the global economy stepping out of depression. The author illustrates with many examples how Australia benefited from export to China. Many poor countries also benefited from China's import growth just when they needed it most.

The benefits to America brought about by China's development are even more obvious. China becomes America's vast market. The sales of Coca Cola have created a miracle of exceeding one billion tins; General Motors sold large numbers of Buick in China and reaped considerable profits; Profits of joint ventures and wholly-owned businesses remitted huge amounts of dollars back to America. Lower-price Chinese goods all the more raised American living standards by 5 to 10 percent, and helped reduced America's inflation rate. At the same time, they averted the risk of rapid rate increase. China's purchase of US treasury bonds has helped to finance US budget deficit.

Then, has China's development robbed American workers' jobs? The author gives a fair judgment: "China gets blamed for much that it does not cause." "Virtually all job losses have been caused by productivity improvements." "We don't know how many jobs have been saved by partial moves to China decreasing the costs of endangered companies." Haier is now investing in America to manufacture refrigerators. When Lenovo bought IBM's personal computer business, "it saved jobs in a moribund division."

In contrast to some fabricated claims of the "China threat" theory, the author's conclusions are all supported by facts and figures. For example, he wrote that Chinese workers in state-owned enterprises have declined from 110 million at the end of 1995 to 66 million in March 2005. Those who think there has been a simple transfer of US manufacturing jobs to China will be surprised to know that manufacturing jobs in China decreased from over 54 million in 1994 to under 30 million today.

At the end of the article the author writes, in a rather objective way, about the problems and challenges China faces in adjustments and the impact they may have on the world. Referring to China's national defense modernization, the author believes China has no intension of making a show of its strength. "Theories that China is going to take over the world suffer from flaws." "We (Americans) do not face a challenge to our way of life." The author's conclusion is that in many areas "China is our only effective partner." "When we have a prosperous economic partner (China) that is success for us, not failure." "If we welcome China's prosperity, we maximize the chances of an auspicious outcome."

After reading the article it is impossible not to be surprised at the author's profound understanding and incisive analysis of China's economic globalization process, and not to admire the author's global strategic insight. What is more commendable is that the author can transcend ideological bias and look at China's development, changes and their impact with a rational mind and objective attitude. It is fair to say that the article is awakening and disabusing for those who do not quite understand China and those who blindly believed the "China threat" theory in the past.

By People's Daily Online

http://english.peopledaily.com.cn/200506/20/eng20050620_191309.html

China to be mainstay for peace after peaceful rise

Last updated at: (Beijing Time) Monday, April 26, 2004

The peaceful rise of China is on the one hand based on developing itself in an international situation of fighting for peace and on the other maintaining the world peace for its own development. Zheng Bijian, who's a notable theorist and President of the Institute of Humane Culture for Post-graduates of the Chinese Academy of Sciences said on April 22, and the outcome is to realize its rise while serving a mainstay for maintaining the world peace.

On the afternoon of April 22, a "Forum on Chinese Sciences and Humane Culture" sponsored by the Institute for Post-graduates of the Chinese Academy of Sciences continued on its thematic lectures in the 3rd phase in the Great Hall of the People in Beijing. Zheng Bijian, Chairman of the Forum Council made the aforesaid assertion in his final speech entitled the "Development of China's Peaceful Rise".

Zheng Bijian said, under the condition of the time in which peace and development is the main theme the peaceful rise of China features the independent construction of socialism with Chinese characteristics which is associated with the progress of the economic globalization but not separated from it.

The late Deng Xiaoping once mentioned, the socialism with Chinese characteristics means the socialism to persist in developing productivity, the socialism of advocating peace. The road for China to rise peacefully consists of two basically unified conceptions, advocated Zheng. The choice of China for peaceful rise, the utterly new strategic road has not only broken up the banal rule of "rising through fighting for hegemony and to rise must resort to hegemony" as advocated by some big countries in modern history, but has also the following five features:

1. Unswervingly persist in taking the development as of the primary importance for the CPC in the administration of and rejuvenating the country with the stress laid on economic construction;

2. Practice the policy of opening to the outside world and persevere in its linking up with the economic globalization instead of separation;

3. Adhere to the policy of independence and self-reliance while participating in the economic globalization;

4. Stick resolutely to the policy of reform while making an overall plan for paying attention to the strategic relations and interests of all aspects so as to realize a combination of reform, development and stability;

5. To make great efforts for the rise while abiding by the peaceful foreign policy of self-reliance and independence and never to fight for hegemony and seek for hegemony.

What time is considered the outset for China to rise? Generally speaking, the proclamation of the founding of the People's Republic of China is considered the outset for China to rise politically, said Zheng. But the road of peaceful rise and development we are now speaking of refers specifically to the historical period ranging from the 3rd plenary session of the 11th Party Congress to the middle of the 21st century. In this period China is going to realize basically its modernization and revitalization of the Chinese nation and it is a period in which China is going in for an overall historical orientation and connotation of rise and development. "Therefore, China's peaceful rise and the great rejuvenation of the Chinese nation as well as the basic modernization of China belong to the same historical orientation, historical period and the same connotation in history".

For a period of time especially after the entry into the 21st century, there appeared in the world the theory of "China threat" and also the collapse of China. How can the peace be a threat? Zheng said, and how can the rise come to collapse? The peaceful rise of China is the most favorable counterblow at the theory of "China threat" and China collapse.

The international situation is very changeable, stressed Zheng Bijian and the peaceful rise of China can not be always a plain sailing. To realize the peaceful rise China still needs three big motive forces and four great guarantees. The three big motive forces include innovation of system, of sciences and of culture while the four great guarantees are respectively the competence construction of human resources, construction of a harmonious environment in society, and construction of a powerful national defence as well as a peaceful foreign policy of self-reliance and independence.

By People's Daily Online

http://english.peopledaily.com.cn/200404/26/eng20040426_141521.shtml

All-win rational choice

UPDATED: 17:10, March 18, 2005

On March 14, three oil companies from China, the Philippines and Vietnam signed in Manila the "agreement on tripartite joint marine seismic work in the agreed region of the South China Sea". According to the agreement, the three parties will jointly carry out three-year oil/gas exploration work in the agreed region of the 140,000-sq. km South China Sea. The agreement points out that the three parties strictly abide by the 1982 United Nations Convention on the Law of the Sea and the 2002 ASEAN-China Declaration on the Conduct of Parties in the South China Sea signed by China and the ASEAN (Association of the Southeast Asian Nations) in 2002, the signing of the cooperative agreement will not weaken and change the basic stands of various respective governments on the question of the South China Sea, rather it would turn the territorially disputed South China Sea into a region of peace, stability and development. The Chinese Ministry of Foreign Affairs hails this cooperation as an important move for the three parties to jointly carry out the Declaration on the Conduct of Parties in the South China Sea, which has made historic contribution in promoting the stability and development of the South China Sea region. China is willing to conduct pragmatic cooperation with related countries in line with the proposition of "putting aside disputes and engaging in common development", so as to turn the South China Sea into a "sea of friendship" and a "sea of cooperation".

In the late 1970s, Comrade Deng Xiaoping stated for the first time that the Chinese side was willing to solve the controversial issue of sovereignty with neighboring countries in line with the pattern of "putting aside disputes and engaging in common development". The present concord reached among China, the Philippines and Vietnam has proved the political wisdom and actual possibility as contained in Deng Xiaoping's tentative idea.

Many disputes of humankind and of countries are, to the final analysis, dispute over ownership of sovereignty and interests. There is a saying in the theory of international relations, to the effect that the international community is an anarchic society, a society acting upon the jungle law and making decision in line with power politics. In a certain sense, this is a fact, at the same time it is also a tragedy of humankind. Historically, disputes between countries were resolved through reliance on strength and in a zero-sum form, the frequent consequence of which was that the loser suffered crushing defeat, while the winner gained disastrous victory, all those involved were beaten., different only in degrees. Such incidents are too many to enumerate.

In view of the above-mentioned human tragedies, philosophical thinkers put forward many ideals and conceptions, for example, Confucius put forward the idea of "Great Harmony", Immanuel Kant put forward the ideas of "World Government" and a "Global Citizen Society". Although the human reality is still quite far from these ideals, the establishment of the United Nations after WWII and the formulation and execution of many international laws reflect the efforts of human beings heading for such ideals.

Within the transition period of advancing toward the ideal of the great harmony of mankind, the idea and method employed by countries for handling disputes among them are of important significance. What has to be changed first is the zero-sum concept on disputes over rights and interests. If one wants to take up everything, or the victor wants to eat up everything, the result is likely to make one completely isolated, leaving him nothing to eat. This is true of an interpersonal society as well as of the international community. Conversely, if the countries involved are relatively mature and rational and can conduct effective consultation and communication, then it is possible to bring about an all-win situation in the course of a share in interests.

The South China Sea issue is faced with such a situation. There exist here many-sided disputes over sovereignty and the potential of oil/gas resources. One possibility for the development of the situation would be a stalemate among various parties in which no one could get anything; another possibility would be the eruption of conflicts, ending in the destruction of all parties. Taking all these into calculation, we think the best method is to "put aside disputes and seek common development" and thus bring about an all-win result.

After the signing of the agreement among the three parties of China, the Philippines and Vietnam, the various parties spoke highly of it. The Chinese side hailed it as an event of "political demonstration significance and major historic significance", the Philippine President exclaimed it to be a "historic breakthrough", and the Vietnamese side applauded it as a "historic cooperation" among the three countries in the field of the development of energy resources. All these are not merely polite remarks.

At this moment we think more of Comrade Deng Xiaoping. In those years, he set forth a "non-argument" principle for domestic questions, and the tentative idea of "shelving disputes and engaging in common exploitation" for dealing with international disputes, his remarks, though simple, are imbued with political wisdom and feasibility.

Carried on the front page of People's Daily (Overseas Edition) on March 18, this article by Huang Qing is translated by People's Daily Online

http://english.peopledaily.com.cn/200503/18/eng20050318_177391.html

China should be applauded - A dialogue with Dr. Kuhn

UPDATED: 15:57, March 21, 2005

Dr. Robert Lawrence Kuhn has almost became a household name in China recently. As the Managing Director of Citigroup and the archor of PBS, he authored a famous book entitled The Man who Changed China: The Life and legacy of Jiang Zemin. The book soon became a best seller. Since 1989 Dr. Kuhn has travelled between China and America frequently, advising Chinese government on a variety of major issues.

How does this China expert look at China's Scientific Concept of Development? Our Washington-based correspondent Yong Tang recently did an exclusive interview with Dr. Kuhn.

Kuhn:Two fundamental points to begin. First, China's situation is unique. When the largest population on earth undergoes one of the fastest transformations in history, traditional rules may not apply. China must go through in a few decades a transforming process that took many industrialized countries, including the United States, over one hundred years. Therefore, not all experiences and lessons from the West should or even could be applied wholesale in China. The experiences of the West are a helpful reference not an absolute prescription. The ideas here should be evaluated for applicability in China.

Second, national development strategies must be tailored to the real environment of the times. Economic or political ideas that are idealistic or exist in a vacuum are not only not effective but can be disappointing or even destructive if applied without real-world practicality and grounding. The American developmental experience, like that advocated by Deng Xiaoping and implemented under Jiang Zemin, was that economic development came first historically. Without economic development, when everyone is poor, all theory is idealism and idealistic theory alone cannot help improve the lives of people. Whereas in an ideal world it may have been theoretically preferable for economic development to proceed in a coordinated manner with social, cultural and political development, the historical reality has been, in China as in the West, that economic development did in fact come first.

Since human systems are not perfect, there are certain inevitable if not invariable consequences of rapid economic development, primarily income disparity between different segments of the population and abuses of the system by some of those in power who seek personal gain through illegal means. There is no way around this stage of development and China is not unique in now having to deal with an accumulation of these problems. In the "Robber Baron" era of American history -- at the end of the 19th century and beginning of the 20th century -- a very few people aggregated, concentrated and controlled a great deal of wealth in America, and as a result millions of common workers were paid poor wages, had few benefits (like health care or unemployment insurance), and were subjected to intolerable working conditions. Yet the "Robber Barons" performed a critical service, for a time, in making America the world's leading industrial country by energizing the American economy through aggregating resources and rapidly building the means of production so that industry could, for the first time, develop the critical mass needed to expand and flourish.

When the Great Depression hit the United States in the 1930s, the people turned to a new approach under President Franklin Delano Roosevelt, in which government played a larger role in controlling the economy, such as in regulating monopolies, enforcing fairness in the stock market, enabling fairness in labor-management relations, establishing a safety net of social services for all citizens, and by redistributing wealth from the wealthiest to the poorest citizens through progressive income and other taxes in order to promote fairness among sectors of society. These sweeping policies, however, had to take care not to destroy the incentive of entrepreneurs to continue to generate new wealth (which benefits all society).

The key point for China here is to prevent the trauma of America's "Great Depression" (which had many causes, of course) by getting out ahead of the likely historical trends and implement solutions before the problems grow larger. Economic development must come first, but after a certain time, a more complex integration of social needs must be integrated with pure economic growth. This is the only way for the fundamental interests of the people to be properly represented.

It is important to recognize that such balance among different sectors of society is not a one-time event; there is no magic formula that holds forever. Policies of economic and social balance are always dynamic and always changing so that adjustments must be made continuously. This is why the term "Scientific Concept of Development" is entirely appropriate for President Hu Jintao and China's new leadership in their stewardship of China's new era.

Yong Tang: According to the Concept, China should take economic development as a central task and promote economic, political and cultural advancement in an all-round way to achieve comprehensive socio-economic development. How is this implemented in America? What lessons China could learn from America in this regard?

Kuhn:In America there was a natural evolution and development of competing social institutions that grew to balance the pure economic forces of large, monopolistic industrial corporations. A first step in the United States was controlling the monopolies in various industries -- which created high prices for consumers and excessive profits for companies as well as limited incentives for research and development. Breaking up monopolies is something China has begun to do (e.g., telecommunications).

A subsequent step was the natural development and growth of competing social institutions such as labor unions. Although there were many traumatic encounters, even battles, between labor and business, between those representing the workers and those representing management, particularly in the middle decades of the 20th century, a working balance eventually emerged. The outcome was that the two competing forces (labor and business) would, in their negotiations and reciprocal powers, naturally optimize wages and profits for the benefit of overall society. Yet the government had to maintain constant surveillance; for example, the government had to be able to intervene and stop labor strikes (when all the workers would leave their jobs to pressure business) if national interests were at stake. The government could enforce a so-called "cooling off period,' forcing everyone back to work while negotiations continued.

China has a different system in that the government represents all the people, workers as well as business; yet to be effective in an increasingly complex society, China must find in the Western or American models fresh ideas for enabling the forces of diverse social institutions to compete so that government is not forced to constantly be making all the decisions in adjudicating the balance of interests in an increasingly complex and diverse society. The reason is not just that government should not make all these minute decisions, but that government is often not able to make these decisions effectively and efficiently. There are too many such decisions and they are too many inputs so that making all the decision is just impossible. It is like setting prices for goods and services in the marketplace, only the policy arena is even more complex than the price setting arena, since we are dealing with competing social and institutional forces not simply supply and demand.

One way society's competing interests are balanced in America is by the large number of lobbying groups that occupy a good deal of real estate in Washington, D.C. For almost every kind of group -- business, social, personal, various causes -- there are lobbyists who represent and promote their special interests to the administration and to the Congress. Americans often make fun of or even ridicule Washington lobbyists -- and certainly lobbyists have many excesses -- yet the system of competing interests works well to create a kind of marketplace of ideas, the best of which (ideally) emerge slowly and work their way into the laws and practices of government.

As for cultural activities and its enrichment of the people, they develop naturally as?society develops to?certain level (economically and socially). As people can fulfill the basic necessities of life and living, and then educating their children, they naturally begin to seek personal entertainment and hopefully the kind of enrichment that leads to?higher levels of?self-realization and aesthetic appreciation.?

The American model of cultural activities is more dependent on the private sector than the public sector. The key advantages of a largely private system is that it enables a wider diversity of interests to be available to the public and it limits the decision-making power of a few people in government. It also takes the financial burden off the government. The government must play a role, however. One example is the U.S. government's funding of public broadcasting (radio and television), because this is the only way to provide alternatives to the purely commercial interests of traditional American media and therefore the only to make available programming that could not be presented in any other way. Yet even with public broadcasting, the private sector is heavily involved. While the government supplies some support, the majority of the financial support for every public radio and television station in America comes from the private donations of its local audience, mostly individual donors and some corporate sponsors. Public broadcasting must therefore compete in the marketplace of ideas and money, and this too forces public broadcasting to be responsive to the needs and will of the people.

It must be stressed that it is usually a mistake to force economic entities like corporations to do lots of things that are not purely economic in nature, such as excessive social services or community responsibilities. Corporations need to be optimally efficient in converting resources (human and natural) and capital into products and services that the market needs. To burden corporations with many non-economic demands would be to limit their capacity to compete in hypercompetitive global markets. To balance corporate interests, therefore, is the responsibility of government, and of a network of diverse social institutions (nongovernmental organizations, NGOs) that can provide the checks and balances in a dynamic and growing society. Such checks and balances must be dynamic in that relationships and relative strengths and importance are constantly changing. Government can play a role in regulation, but market forces in society must also be allowed to set the relative power between various institutions. Only in this balance of forces in the total national marketplace can the system adapt optimally to the people's needs.

The American system, at its heart, is based on a system of checks and balances. This is generally recognized in government, where the checks and balances are the three-part system of executive, legislative (Congressional), and judicial branches of government. But the American system of checks and balances is even broader, since government itself competes, in a sense, with other sectors of society -- for-profit industry and companies; educational and research institutions; social and policy advocate organizations; cultural organizations; the media in all forms; the legal and judicial system; and the like. Each of the institutions in each of these broad sectors compete for the people's "votes," not just in the literally sense of electing government leaders but in the financial "voting" of purchasing goods and services from companies and in people donating their time, expertise, and personal financial resources to non-for-profit non-government organizations (NGOs). It is in the complex interactions among all these sectors that social and economic policies emerge, and in this process the short-term will of the people (which special interest groups tend to favor) is optimized with the long-term interests of the people (which government at its bests needs to assure).

Yong Tang: According to the Concept, China should balance urban-rural development, regional development, socio-economic development, harmonious development of man and nature, and domestic development and opening-up.How is this strategy implemented in America? What lessons China could learn from America in this regard?

Kuhn:The primary challenge for China will be always to keep economic development foremost, since without solid economic growth nothing else is possible. China's development since 1978 is perhaps the greatest story of sustained success in human history. Never before have the lives of so many people been changed so dramatically for the good. Yet China is, in a way, addicted to high growth, since high growth is needed to absorb the millions of new workers coming into the workforce and those being laid off from moribund state-owned companies. As such, high growth is needed and high growth, in general, comes from those geographic areas that already have enjoyed rapid development, primarily China's coastal and urban areas. But growth in these developed regions increases the income disparity in China, which is already a major problem. Herein lies the conundrum: How can China maintain its high growth and at the same time begin to alleviate income disparity? This is the great challenge to China's government today.

Once economic development has reached a certain minimum stage -- which I define as having crossed a critical mass threshold so that, like a nuclear power plant, it becomes self-generating in producing without additional inputs more power consistently than it consumes -- government can begin instituting various checks and balances. Tax policy is a favorite and effective government technique in directing economic policy. For example, by giving larger tax credits to business for research and development, these behaviors are encouraged and the national economy benefits. Similarly, a city may offer special tax incentives for companies to set up operations in poor areas. To support cultural activities, many American cultural organizations can accept donations that are tax deductible to the individual or the corporation.

China is beginning to use policies to encourage investment in its less development areas, primarily the Great West and Northeast. These incentives need to be increased. In a market economy, there is always a level of government support -- whether in the form of tax policy, special loans, investment incentives, and the like -- that will stimulate economic growth.

Obviously, the use of tax policy is only effective when tax enforcement is sufficiently strong. If companies or individuals can avoid paying taxes and easily break the law, then tax policy is meaningless. China has made significant strides in its tax enforcement administration but needs to go further so that almost everyone recognizes that it is not worth avoiding taxes, that the potential penalties exceed the potential gain. Only then will tax policies be effective in modifying economic behavior.

In America, a deep appreciation of environment protection on the part of a small minority of dedicated environmental activists has been the catalyst for a broad set of policies in sustainable development and environmental protection. This movement did not begin until the late 1960s and has always been energized by small groups of people, some of whom are considered radical. But because their cause is generally acknowledged to benefit all society, their extreme policies have influenced and balance overall policy. Industry and the environmental movement generally create a dynamic tension between them, each pushing its own agendas, but in the process of disputation and negotiation a respectable balance emerges. For example, many oil companies now recognize the need to employ large staffs of environmental scientists to assure environmental protection during the exploration and production of new energy resources. Although everyone now appreciates the correctness of this corporate behavior, it would not have occurred naturally without the outside pressure from non-governmental environmental groups who lobbied the government and used the media to promote their cause.

Yong Tang: According to the Concept, China should coordinate economic development with population growth, resource availability and environment protection, and stick to a road of sustainable development consistent with the characteristics of a modern society. How is this strategy implemented in America? What lessons China could learn from America in this regard?

Kuhn:In America, it is recognized that while government can and must set overall policy it is impossible for government alone to implement effectively and efficiently all the huge number of micro-decisions that must be made in harmonizing the vast numbers of competing interests. As such, government sets policy but allows a vast variety of different institutions, including many non-government institutions (NGOs) as well as specialized for-profit companies, to compete in the marketplace of ideas as well as in the marketplace of goods and services. For example, there are many organizations that provide environmental protection and some of them are very aggressive. Most of their support comes from the private sector, usually individuals who believe in their policies. To the degree that these organizations can win larger financial support from the people is the degree to which they can fight harder to promote their cause and agenda. This makes rough sense since the people are "voting" (as it were) with their financial support (donations) and personal participation. Government policy encourages these NGOs, and their roles in society, by allowing tax deductions for such donations (both by individuals and corporations). Of course, as stated above, for tax deductions to be an effective policy, tax collections and compliance must be at a high level. (China is making progress here but has a good way to go.)

The media in America plays a vital role in the process of adjudicating competing interests in society. The media in America traditionally has an anti-business bias, which helps to balance out the sheer economic power of large corporations. It has been primarily the American media, not the American government, that has been most effective in recent years to reign in the power of a few corporations who put their own excessive benefits far ahead of their social responsibility, whether through financial improprieties, faulty accounting and reporting, faulty products (e.g., drugs with injurious side effects), executive profligacy, government corruption, and the like. A media that is free to expose all the problems in society, no matter where they occur -- such as government corruption at all levels -- is a critical part of what makes America work. Only the media is sufficiently broad-based at all levels of society, and has sufficient incentive, to uncover corruption in all its dark hiding places.

In addition, the media in America plays a vital role in engendering culture and cultural awareness, setting social mores, and providing a coherent framework of national identity. This all takes place in the competition among private sector companies, although the government continues to set the standards of appropriateness, balancing the cherished Constitutional guarantee of freedom of speech with the appropriate social standards of decency and decorum. Once again, lobbyists from all sides are hard at work promoting their clients' opinions and beliefs, from the desire of cable networks to have unbridled freedom to attract audiences with profanity, violence, and explicit sexuality to the theologically founded belief of right-wing religious groups who seek to exert their prudish control on the entire country by limiting expressions of behaviors they find objectionable. And once again, it is the dynamic tension between these two opposite interests, contesting in the marketplace of public ideas and national government, that form part of the strength of the American media system.

Of course, there are excesses and problems with the American media: the media too can act irresponsibly and make up sensational and erroneous stories or just exaggerate to promote their own commercial interests. To control the media in America, there are various laws, such as libel laws, that enable people to sue the media. The government too must also set laws to define and control the role of media, and be constantly vigilant in their enforcement.

In China, the media has an increasingly important role in national development, including: reducing disparity among sectors of the populace in knowledge and culture; unifying national culture and national interests; promoting education and social awareness; cultural enrichment; helping to expose and root out corruption; providing a check and balance on government at all levels (an enhanced transparency in government as called for by President Hu Jintao and China's new generation of leaders).

Like the American media system, the American legal system helps balance the forces in society, although there are excesses here too. American law enables individuals, if their cause is sufficiently strong, to take on giant corporations and battle them in the courts. Certain law firms specialize in suing corporations for product liability --such as faulty drugs that have had harmful side effects or automobiles with deadly defects or chemicals in products that cause disease --so that the people are not overrun to their detriment by corporate greed, backed up by corporate power,. However, when the legal capacity to attack business gets too strong, for example in malpractice suits against doctors, insurance rates are raised very high and everyone suffers (except the lawyers). Again, the solution is dynamic balance, which is the policy setting role of government -- in this case, setting the proper limits and constraints for lawyers to represent common people in suing corporations.

As Chinese society continues to mature, and as the Chinese government grows more confident in the Chinese people's inherent interest in stability, these competing forces -- like NGOs, a freer media, a stronger legal system combined with an independent judiciary -- can emerge and become, in essence, a partner with the government in administering society for the harmonious benefit of all the people.

Yong Tang: How do you think of China's move to implement the Scientific Concept of Development? Do you think this move is going to be successful? What is the biggest challenge China faces today in order to build a harmonious society?

Kuhn:I am impressed with the new thinking of the Scientific Concept of Development in China. It is a broad strategy of transformation that starts with China's historic and successful economic development and seeks to bring about a Harmonious Well-Off (Xiaokang) society. The key components of the Scientific Concept of Development -- economic development, cultural advancement, social fairness, sustainable development, environment protection, the alleviation of income disparity among regions and sectors of society -- must all work together. The stress and reliance on science and technology, and on education, is crucial for long-run successful implementation.

There are some fascinating examples in China. In Zhejiang Province, Party Secretary Xi Jinping and his senior staff have done excellent work in encouraging the development of a vibrant private sector, working harmoniously with the state-owned sector and government, in promoting economic development and social well being.

In Jiangsu Province, Party Secretary Li Yuanchao recognizes that even in Jiangsu, one of China's most successful and prosperous provinces, income disparity is a serious problem and that economic development must be balanced with cultural development to achieve a Well-Off society. Under his leadership, there is a vision to build Jiangsu with a combination of international globalization strategy, regional cooperative strategy, revitalizing the province through science and technology, sustainable development, and the enrichment of society with culture and all-around human development. Given the size and complexity of China, the results of Jiangsu's pioneering efforts in developing a coordinated growth strategy is critical, and the rest of the country can learn from its experiences and lessons.

It takes vision, wisdom and courage for provincial leaders like Li Yuanchao and Xi Jinping to take risks, to be pioneers in these new areas that can be frightfully complex due to the inherent uncertainty in social systems. I fully appreciate the concerns of Li Yuanchao, who noted that pioneers who innovate, however much they are cautious and prudent, are exposing themselves to risk. Government leaders, in general, all over the world, tend to lose more from their failures than they tend to gain from their successes. This is all the more reason to admire and respect those who do take risks, who are willing to put themselves on the line to help their country. China will be better, faster due to these leaders. China needs more?courageous officials.

I am excited by the serious recognition in China of the needs to explore the complex interaction of all the diverse forces needed to build a harmonious, well-off society, in particular the recognition of the impossibility of dictating such a society from the top down with idealistic political principles without implementing it with complex interactions from the bottom up from among diverse segments of society. For example, I applaud the efforts of the Chinese Academy of Social Sciences to address honestly many of these issues forthrightly with real-world research, tough-minded analysis, honest discussions and debates, and new thinking and innovative ideas. There is no other choice; nothing less will suffice.

China should be applauded, not only for its dramatic economic development but now for its new commitment to harmonize the diverse interests of society to create optimum living conditions for its citizens. The task is far more complex than economic growth alone, and it behooves the international community to support and encourage China's new leaders in their vision and maturity. I am confident of China's ultimate success, but no one should underestimate the complexity and difficulty of this next great steps in China's national transformation, moving from pure economic development to the structuring of a broad-based harmonious society.

By Yong Tang, Washington-based correspondent of People's Daily

http://english.peopledaily.com.cn/200503/21/eng20050321_177656.html

Chinese peacekeeping riot police in Haiti return home

UPDATED: 12:06, April 17, 2005

Chinese peacekeeping riot police in Haiti left for home Saturday aboard a UN-chartered plane after successfully completing their six-month mission in the crisis-torn country, according to news dispatches from Port-au-Prince, capital of Haiti.

The 95 members are the second batch of 125-member of Chinese peacemaking police to leave Haiti. The first batch left on April 2.

Before their departure, UN Secretary-General Kofi Annan's special representative in Haiti Juan Gabriel Valdez highly evaluated the performance of Chinese peacekeeping police during his meeting with Zhao Xiaoxun, head of police detachment and other officers.

The 125-member force, which includes four women, on a six-month mission, has supported the international peacekeeping presence, assisted and trained local police in law enforcement, as well as dealt with mass public security emergencies.

The police have been awarded a UN peace medal for their outstanding performance in January, the highest honor granted by the UN to peacekeeping missions.

David Bill, head of the UN police in Haiti, had said at January's ceremony at the Chinese camp that the Chinese police officers have made great contribution to securing social order and protecting the life and property of the Haitian people.

The Chinese team is highly disciplined and brave, setting a good example for all the peacekeeping police teams there, he added.

Some 6,000 UN peacekeeping troops and 1,400 UN police have been deployed in Haiti to help stabilize the situation in the Caribbean country ahead of the presidential elections scheduled for November and December.

This batch of police are replaced by another 95 Chinese peacekeeping police, who arrived at Port-au-Prince on the same day, and a contingent of 30 arrived the camp in Haiti on April 4.

Starting from 1999, China has contributed more than 400 civilian police officers to UN missions in East Timor, Bosnia-Herzegovina, Kosovo of Serbia and Montenegro, Afghanistan, Liberia and Haiti.

Source: Xinhua

http://english.peopledaily.com.cn/200504/17/eng20050417_181432.html

UPDATED: 12:20, March 05, 2005

China's tentative overall requirements and targets for economic and social development in 2005 was revealed Saturday in a report submitted to the National People's Congress (NPC), the top legislature, to be examined and approved by NPC deputies.

The report on the implementation of the 2004 plan for national economic and social development and on the 2005 draft plan for national economic and social development, done by the National Development and Reform Commission, set the following requirements and targets:

-- GDP growth around 8 percent. The target of around 8 percent is for China's overall economic growth. Local authorities should set appropriate targets based on local conditions.

-- Creating 9 million more jobs for urban residents and confining the registered urban unemployment rate to 4.6 percent.

It says as China will basically incorporate subsistence allowances for workers laid off from state-owned enterprises into the unemployment insurance system this year, the registered urban unemployment rate at the end of 2005 is expected to be somewhat higher than last year.

-- Keeping the rise in the consumer price index below 4 percent.

-- Increasing the total volume of imports and exports by 15 percent and basically balancing imports and exports.

The global economy and global trade are set continuing growing in 2005, the report notes. Moreover, China has now lifted all controls over the right to engage in foreign trade. This should inject new vitality into China's exports and increase export volume. The domestic economy will keep growing rapidly, so demand for imports should also continue to expand.

-- Continuing to increase urban and rural incomes. The per capita disposable income of urban residents and the per capita net income of rural residents are expected to increase by about 6 percent and 5 percent respectively in real terms this year.

Continued improvement in the pattern of consumption and the consumption environment this year should also contribute to steady and rapid growth of consumption demand, resulting in an expected 12.5 percent increase in retail sales of consumer goods for the whole country, says the report.

-- Accelerating development of undertakings in science and technology, education, culture, health and sports.

-- Making more efficient use of resources and continuing progress in ecological conservation and environmental protection.

-- Continuing to keep the birthrate low and improve the health of newborns. The natural population growth rate should be confined to 0.7 percent.

http://english.peopledaily.com.cn/200503/05/eng20050305_175655.html

Grassroot election popularized in China

UPDATED: 17:04, January 31, 2005

This year is going to see more than 300,000 villagers' committees in 18 provinces, municipalities and autonomous regions to be voted by direct ballot. About this, Zhan Chengfu, director of the department in charge of administration for basic level of the Ministry of Civil Affairs accepted the interview by the reporter in regard of the construction of democracy at the grass-root level in rural areas.

Three major transitions realized over a decade of years

Q: "Popular election" known as "Haixuan" is an expression most frequently used in the rural election. What does it refer to in general?

A: "Haixuan" (popular election) is a local twang in northeast China, which refers to the vote by direct ballot at the basic level in the countryside. It is an aboriginal system of democracy out from the Chinese soil and so it is again known as "grass-root democracy". It has two significances: one being that whoever is of 18 years of age and a qualified villager enjoys the right of direct vote instead of being elected via village or household representatives, and another being that the personnel composition of working staffs, recommendation of candidates and formal election for villagers' committee are all resulted from vote by direct ballot. Therefore, it is more direct and extensive in the sense of election.

Q: How's the situation of Haixuan (popular election) carried out in rural areas?

A: Since the proclamation of the "Organizational Law for Villagers' Committee (draft)" on 1 June 1988 there has witnessed the completion of five times of elections in 27 provinces, autonomous regions and municipalities. Though due to the fact that the popular elections were not unified till the end of 1990s in Guangdong, Hainan, Yunnan and Chongqing and other areas yet they've also fulfilled 2 ¡§C 3 times of elections. So far almost all 600,000 villagers' committees in the whole country are conducting direct elections and the only difference lies in the systematization and standardization.

Therefore, it can be said that the election at the basic level in China's rural areas has realized three transitions in over a decade of years, namely from a system of appointment to election, from an indirect election to direct election and the transition from a low degree of democracy to a relatively high degree of democracy.

Democratic consciousness grows out from nurturing

Q: What do you think about the "bribed vote" that appeared in the rural elections over the past few years?

A: the bribed election is an abnormal phenomenon that emerged in the course for democratic politics. That must be resolutely prohibited and sanctioned. However, at the same time it also means that the weight of election is getting heavier and we must not give up an undertaking on account of a small obstacle. The democracy at the basic level in rural areas can only be solved and improved when overcoming problems in the practice.

Q: A point of view says that Chinese farmers are of low quality and not suitable for practicing democracy among them. What's you opinion of it?

A: This is the logic of a lazy bone. The quality and consciousness of democracy is raised through nurturing and tempering in practice. At the very beginning some villagers paid no attention to ballot ticket, thinking that it had nothing to do with them and there appeared quite a number of void and invalid votes. But gradually they came to realize that the votes were really of use and began to take a serious attitude towards it when balloting once again. The democratic consciousness is nurtured and in the democratic construction at the grass-root level we are all practitioners.

Time already mature for working out a voting law of villagers' committee

Q: Is there any such problem as short of a legal basis for rectifying and regulating the "bribed vote" in the election of the villagers' committee?

A: Yes, you are right there. There is only one article dealing with the problem in the existing "Organizational Law for Villager's Committee" and moreover it is in principle only and vague in sense. There's no definition on what is a bribed vote, nor is there any definite rule as regards how to deal with the problem and so it is somewhat difficult to handle the problem. Now what we can do is only to work out on the basis as a related department some rules and regulations that can be used by local administration for reference. When these rules or regulations are testified to be correct and suitable in practice they can be taken in as amendments for the legislation. This is an accumulative process in the construction of a system.

Q: Have you ever come across a situation in which you are in short of a legal basis in the practical work?

A: Yes, there is. Due to the legal defect and absence it's impossible for us to include the rescue of democratic rights for the ordinary people into the legal protection and the present rescue remains only by way of petition letters. As the violation of the voting law and rules in the vote for villagers' committee has many things to do with the county and township governments farmers can find nowhere to get things justified from the local governments nor is it possible for them to solve the problem by legal means. And with the problem focused on few departments to handle it has caused a heavy pressure on the work.

Q: These years have heard louder voices for working out the voting law for villagers' committee. What is your opinion of it?

A: Time is ripe now for working out a voting law for villagers' committee. The practice of the local rules and regulations has laid a foundation for the establishment of a voting law for villagers' committee. And during the practice of over a decade of years we've also come to accumulate a lot of experiences and lessons. During these years the lawyers have made a deeper study on the vote for villagers' committee and some of them have even worked out over 100 draft articles about it. We've already established a basis in all aspects and moreover the vote at the grass-root level has everything to do with the broad masses of the people and so to work out a statutory law will be able to yield a very good result for fostering legal consciousness from among the masses of the people.

By People's Daily Online

http://english.peopledaily.com.cn/200501/31/eng20050131_172496.html

China to build harmonious society: Premier Wen

www.chinaview.cn 2005-02-07 15:11:50

BEIJING, Feb. 7 (Xinhuanet) -- Premier Wen Jiabao highlighted Monday the task of building a harmonious society in his address to a gathering in celebration of the Lunar New Year.

At the gathering presided over by President Hu Jintao, Wen extended festival greetings to people of all ethnic groups in China, reviewed China's significant achievements in 2004, and listed the tasks for 2005.

The premier vowed to build a harmonious society featuring democracy, the rule of law, equity, justice, sincerity, amity, and vitality, saying this strategic task reflects the common aspiration of the Chinese people who are building a better life.

Such a harmonious society will give full scope to people's intelligence and creativity, enable all the people to share the social wealth created in reform and development, and forge an ever closer relationship between the people and government, and result in lasting stability and unity, Wen said.

He noted that this strategic task embodies the Chinese Communist Party's basic concepts of People First and Government for the People.

Wen praised the successful implementation of the 'one country, two systems' principle in Hong Kong and Macao, and pledged to work together with the 23 million compatriots in Taiwan for the full reunification of the country.

Wen also reiterated China's independent foreign policy of peace and its desire for peaceful development.

Senior Chinese leaders and representatives from all walks of life attended the gathering in the Great Hall of the People, marking the Chinese Lunar New Year, which starts on Feb. 9 this year. Enditem

http://news.xinhuanet.com/english/2005-02/07/content_2560410.htm

Review: 13 keywords of economic reform

UPDATED: 08:17, October 30, 2004

1994 The system of tax distribution

The system of tax distribution financial system initiated in 1994 contains mainly the division of the post-tax-reform 18 tax categories into central and local taxes and the sharing of tax revenues between central and local authorities, at the same time two taxation authorities were set up wherein the central and local governments levy and manage taxes separately. The direct result of this reform was that the proportion of the central financial income to total financial revenue rose from 22 percent in 1993 to 52.2 percent in 1995, to 54.93 percent in 2002 and further to 57.47 percent in 2003.

1994 The merger of exchange rates

At the end of 1993 China decided to carry out reform of the exchange rate mechanism, the merger of exchange rates was introduced to the Renminbi (People's Currency) on January 1, 1994, the dual exchange rate was changed into a single managed floating exchange rate system. The post-merger exchange price quotation was fixed at one US dollar against 8.7 yuan, from that time on to December 2003, the conversion rate of Renminbi to US dollar appreciated by about 5 percent in 10 years.

1995 Modern enterprise system

At the forums held respectively in Shanghai on May 22, 1995 and in Changchun on June 26 the same year, Jiang Zemin delivered speeches, calling for reinforcing confidence, clearly setting tasks and actively promoting state-owned enterprise reform. He said the basic characteristics of the modern enterprise system are summed up in four sentences "distinct property rights, clearly defined rights and duties, the separation of government administration from enterprise management and scientific management", they are an interrelated integral whole and must be fully and accurately understood and implemented.

1998 Proactive financial policy

In 1998, in order to cope with the Asian financial crisis and prevent economic recession, the Chinese government adopted a proactive financial policy. The government got involved in market economic operation through a purposeful investment policy, designed to absorb precipitation funds, maintain economic aggregate and promote the restoration of "savings--automatic investment mechanism" by the "savings--government investment" method, but the actual result was manifested as a direct impetus to "savings--government investment--economic growth".

1998 Prudent monetary policy

In 1998, in order to cope with the impact of the Asian financial crisis and overcome the tendency of domestic deflation, and to coordinate the "proactive financial policy", the Chinese government introduced a "prudent monetary policy", which helped the Chinese economy to tide over difficulties and maintain a relatively rapid growth.

1999 Debt-to-equity swaps

In August 1999, the State Economic and Trade Commission put forward a concrete plan, condition and scope for debt-to-equity transfer and declared that the debt-to-equity work would soon start in China. At the same time the State Council approved the scheme of the Industrial and Commercial Bank of China, the Agricultural Bank of China and the Bank of China to establish the Huarong Assets Management Company, the Great Wall Assets Management Company and the Dongfang (Eastern) Assets Management Company respectively.

2000 Rural tax-for-fee reform

In March 2000, the then Premier Zhu Rongji, in his "Government Work Report", pointed out that active efforts should be made to push rural tax-for-fee reform, so as to fundamentally reduce burdens on farmers, and decided that experiment on this be carried out in Anhui Province that year, and that experiences summed up there should spread to other places. In the year 2000, the total tax fee of farmers in Anhui Province was reduced by 1.69 billion yuan, with the rate of decrease reaching 31 percent, the charge of fees in rural areas tended to become standardized, and the phenomena of "arbitrary collection of charge, unchecked apportionment of expenses and abuse of fund-raising" was basically kept under control.

2000 Urbanization

On June 13, 2000, the CPC Central Committee and the State Council issued "Some Opinions on Promoting the Sound Development of Small Towns". The Proposal on the "10th Five-Year Plan" passed by the Fifth Plenum of the 15th CPC Central Committee in October pointed out: Raising the level of urbanization and transferring rural population can provide a vast market and sustained motivation for economic development. It is an important measure for optimizing urban and rural economic structures and promoting a virtuous cycle of the national economy and the coordinated development of society. The whole Party and people of the whole country should be told "to implement the strategy of urbanization without delay"

2000 Implementing development of the western region

On October 26, 2000, the State Council issued Document 33, and the Circular on implementing the policy measure for the development of the western region. The scope for application of the policy on western development encompasses Chongqing Municipality, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, and Qinghai provinces, Tibet, Ningxia Hui, Xingjiang Uygur, Inner Mongolia and Guangxi Zhuang autonomous regions.

2001 Reform of the administrative examination and approval system

On October 24, 2001, the State Council held in Beijing a video conference on the work of reforming the administrative examination and approval system, making arrangements for accelerating the work of reforming the administrative examination and approval system. The main objective is to establish an administrative examination and approval system compatible with the social market economic system and realize institutional innovation through reform.

2002 QFII

On November 7, 2002, the China Securities Regulatory Commission and the central bank jointly promulgated the "Interim Measures for the Management of Domestic Securities Investment by Qualified Foreign Institutional Investors [QF11]", which came into effect on December 1, 2002.

2003 Rejuvenating northeast China's old industrial bases

On September 10, 2003, Premier Wen Jiabao chaired an executive conference of the State Council to discuss questions on implementing the strategy for rejuvenating northeast China's old industrial bases, putting forward guidelines, principles, main tasks as well policy measures for the rejuvenation. The conference pointed out: supporting the accelerated adjustment and transformation of northeast China's old industrial bases is an important strategic decision put forward by the 16th CPC National Congress.

2004 Green GDP

GDP has its limitation, it reflects only economic development, but does not reflect the influence of economic development on the resources environment, thus making it easy to overestimate the economic scale and economic growth and giving people a distorted economic picture. Green GDP is a supplement to and perfection of GDP. Within 2004, the state has chosen six provinces and cities including Beijing, Jilin, Shaanxi, Guangdong and Shanghai as the pilot units to carry out green GDP accounting.

By People's Daily Online

http://english.peopledaily.com.cn/200410/30/eng20041030_162190.html

Will China's growth sustain 30 more years?

www.chinaview.cn 2004-11-08 09:26:44

BEIJING, Nov. 8 (Xinhuanet) -- Will China's economy retain its current growth trajectory for three more decades?

The answer hinges on two factors: whether China can sustain a high private deposit amid structural changes with labour forces, and whether productivity can be improved to become the main driver of economic growth.

Many economic issues in China are catching attention from home and abroad, such as the equity restructuring of large State-owned companies, reform of State banks, securities market regulation, farmers' income and development of private businesses. This year, the administration has made a series of major policy shifts, setting a crucial stage for furthering China's market-oriented reforms.

Under these circumstances, whether China can manage to achieve more efficient growth and how long the growth will last deserves contemplation.

To get a clearer insight we firstly need to review China's growth mode in the past and the factors that may have restricted the growth in private income.

Most people who have visited China in the past 25 years have been amazed by the economic and social progress happening here. In terms of either the growth of the gross domestic product (GDP) or the rising of trade volumes, China is by far the world's most dynamic and eye-catching economy.

China achieved an average annual GDP growth of above 9 per cent from 1978 to 2003, a stunning record worldwide. With its GDP surpassing 11 trillion yuan (US$1.33 trillion) in 2003, China has become the world's sixth largest economy. China's role in the world economic arena is rising as it speeds up to embrace globalization on economic and financial fronts.

But even in Asia, China still lags far behind Japan and some emerging economies in terms of per capita GDP, largely because its economic reform started from a very low point.

World Bank calculations based on purchasing power parity reckon that China's per capita GDP at present equals Japan's level in 1950.

So there is still a long way to go for China to catch up with the per capita GDP of Japan or the United States.

Many economists have discovered that a large part of China's economic growth is driven by the input of resources. This conclusion indicates that China is at the stage of industrialization rather than post-industrialization.

China's industry-propelled growth is largely attributable to a continuous growth of young labour forces, which is a key factor in understanding the fast growth record in not only China but also economies in East Asia.

In the eyes of economists, economic growth is a phenomenon about population. First, the accumulation of capital needed to support growth comes from citizens' saving tendencies. A labour-intensive economy has more deposit capacity than an ageing society. Secondly, economic growth relies on the growth of labour forces, especially young labourers. Sustained growth also depends on education standards.

In China, labour forces are mainly outsourced from rural areas. In the past 25 years, some 160 million rural labourers have quit traditional farming and found employment in cities or non-farming sectors.

Although agriculture still employs more than 60 per cent of China's population, its share in the country's financial revenue has declined to less than 15 per cent, dropping from 40 per cent or so in late 1970s. This also shows that China's growth is mainly based on an industrialization course featuring expansion of the manufacturing sector.

Continuous supply of labour forces has improved China's private saving capability substantially, which means surplus income that can be reinvested to fuel economic growth.

The importance of labour supply in China's growth dynamics means it is necessary to review the way China's population increases.

After years of decline, China's birth rate is now equivalent to that of other emerging East Asian economies. The low birth rate in the country is mainly a result of the family planning policy initiated in the late 1970s.

Some scholars have estimated China will see zero growth in young labourers in 2015. Some have also projected that by 2030, 20 per cent of China's population will be over 60-years-old, compared to 8 per cent now, and the number of pensioners will be more than 40 per cent of the number of working people.

The ageing process and the slowdown in labour supply will combine to limit room for China's future growth. We hope raising this question will prod the government to think about solutions.

As well as population and private saving, another issue demanding thorough analysis is productivity.

A World Bank report has found that China's productivity did increase for a long time after it started reforms in the late 1970s. But such growth has mainly resulted from the transfer of labour forces from farming to non-farming sectors rather than progress of technology. While the inter-industrial labour transfer slows down, the growth of productivity slows down.

If this finding is true, then technological innovation should be an objective China seeks to achieve in the future.

Many people who have visited China in recent years are impressed by the "economic development zones" and the manufacturing boom in many places. Some places have built the "development zones," often coupled with preferential policies, to attract foreign investment. Meanwhile, some places not lucky enough to have a development zone have opted to foster local manufacturing businesses regardless of the environment problems they cause.

These measures are widely used in Chinese counties and townships to promote the local economy. But most businesses fostered in this way are either doing transit trade, or manufacturing products at the price of land, resources, environment and sustainability. Few would connect their growth with the term "efficiency."

In fact, China is an economy of scarce capital, resources and land but abundant labour forces. That means it is the abundant human resources that keep China's economy moving forward. But as we all know, competitive businesses arise from creativity and enterprising spirit, rather than simple transit trade or excessive exploration of natural resources.

Why does China have few strong and competitive enterprises despite fast economic growth and a strong investment of up to 40 per cent of GDP? This is related to the current government-navigated growth mode.

To overcome the barriers to greater efficiency the government needs to have a better understanding of growth and change the ways of acquiring it.

It is necessary to have a system to restrict economic pursuits that damage the environment and tolerate and encourage private creation and enterprise.

(China Daily)

http://news.xinhuanet.com/english/2004-11/08/content_2189717.htm

"China is not only one of the biggest trade partners of the EU but also a best friend!" With a learned and refined manner, Mr. Klaus Ebermann said, I, as a friend, am still thinking of what else I can do for the other party except the lecture on the "EU Eastward Expansion & its Influence on China" when he finished his short visit to Changchun. The lecture was delivered at the invitation of the European Study Center of Jilin University during his short stay there

Of German origin, Mr. Klaus Ebermann, EU ambassador to China is a senior diplomat. He studied law and economy in Hamburg and Berlin when was young and started to take up a post in the European Community in 1974. The long life in diplomatic missions offered him a chance to experience the development of friendly cooperation between China and the European Union. Starting from 2001, Mr. Klaus Ebernann began to assume the EU ambassador to China and this offered him a more direct and broader arena for promoting the development of the Sino-EU relations for friendship cooperation.

EU, a hopeful biggest trade partner of China

"The EU is going to be a trade partner of more and more importance for China and a more closely-related partner at that," the ambassador said, to seek for further development of trade and economic cooperation between the EU and China is the common wishes of the two parties. The EU-China trade hit a record high in 2003, an increase of 44.4 percent as compared to that of the previous year. The EU has become the 3rd big trade partner of China while China the 2nd big trade partner of the EU, next only to the USA. This year has witnessed a continuous favorable development of the EU-China economy and trade with the bilateral cooperation deepened in the fields of investment, science and technology and culture. "It is quite possible for the EU to take the place of the USA and become the biggest trade partner of China in future," said he full of confidence.

The EU-China economy and trade is strongly complementary to each other. China is the biggest developing country, featuring a most promising market in the present-day world while the EU occupies an important position in the world economy. Last May, the EU realized its biggest historic expansion and the EU strength is sure to be strengthened again. In recent years, Chinese enterprises do not feel satisfied with buying in some equipment but want to establish joint ventures with, or put up their own factories in, the EU countries. The bi-directional investment began to appear between the EU and China and there appeared a good tendency of getting into each other's market. The EU investment in China has taken on two special features: one is to look far into the future, for example the investment in China's auto-industry, he said. The FAW proves to be a fine example the EU investment has achieved in China. The other is that the EU has not only brought into China its products but also its science and technology and research and development programs. Premier Wen Jiabao's successful visit to Europe has proved that The EU and China are the two powerful forces exerting increasing influence in the world today and the bilateral partnership is tending to be maturer. He said the large companies of China have already accumulated considerable strength in the cooperation with the EU enterprises and they've got to know more about the EU market. Maybe it's no longer necessary for us to offer them any more help. However, the smaller and medium enterprises of China are relatively weaker in this respect and need more of our help to establish connections for cooperation with the EU. The EU-China summit meeting is going to be held in the coming December in Holland, at which it will be taken up for discussion, he believed.

"So far as I know, the EU has a lot of items to be introduced into China," Dr. K. Ebermann told the reporter. The items include those for social guarantee, for transformation of enterprises, for environmental protection and river treatment and some other items in regard of helping China to gain benefits in the international organizations under the WTO framework. An investment item valued at 250 million Euro dollars is now being carried out. Dr. K. Ebermann expressed the EU will offer China some help based on its own experience and to share it with China.

EU-China science, technology and education cooperation of great importance

Mr. K. Ebermann laid a very great stress on the EU-China cooperation in the fields of science, technology and education. He said, in the past two years, the sci-tech research institutions in Changchun, Jilin Province and other regions of China as well as other institutes of higher learning have established good cooperation with the EU. He often talked with friends in Chinese business circle by saying that when you have trade dealings with any enterprise from among the 25 EU countries it means that you'll have opportunities to get in touch with all the EU enterprises. And "likewise once a Chinese institute of higher learning has established a good cooperation with any institute of the 25 EU countries it means that it has chances to set up good cooperation with all those institutes of higher learning of the EU. The colleges and institutes of higher learning in the EU have set up a very close connection among themselves with broadband Internet to bridge them up and it's possible for them to have a quick exchange of information. And the Internet connection among schools will be introduced into China. The students in the EU institutes of higher learning under the support of scholarship are allowed to shift for studies in among other schools. This is being spread out in other parts of the world and the item will soon be introduced into China too.

"To rejuvenate the old industrial base of northeast China is a strategic measure of importance that the Chinese government has recently brought up," Mr. Ebermann said. The EU has already set its foot in it for rejuvenating the old industrial base in northeast China and the EU countries are carrying out some items for cooperation with Liaoning, including in which are city planning, environmental protection and river treatment. A few months ago, Dr. Ebermann had a discussion with the provincial governor of Jilin in Beijing on which fields the EU countries may play their part in cooperation with China for the rejuvenation of the old industrial base in northeast China. And his coming to Changchun this time brought the matter up again for discussion with the provincial officials of Jilin Province. " In Changchun I saw many construction sites, giving me an impression of vigorousness and vitality," Mr. Ebermann said. Some European countries such as Germany and Poland have already taken a great liking of Jilin. And he was very pleased to have come to Changchun this time and came to know in person the environment and conditions in northeast China so as to see what else the EU countries can do for the rejuvenation of the old industrial base in northeast China.

This article is carried on People's Daily of Jun.9 and translated by People's Daily Online

http://english.peopledaily.com.cn/200406/10/eng20040610_145870.html

150 billion USD trade makes EU the largest trade partner of China

UPDATED: 16:56, January 07, 2005

From January to November 2004, the trade volume between China and Europe had reached US$ 159.3 bln, 34.7 percent higher as against the same period in 2003. The EU has surpassed Japan and the US to become China's largest trade partner; and China has become the second largest trade partner of the EU, only next to the US, sources from the Ministry of Commerce of China say.

The Sino-European economic and trade ties underwent a rapid growth last year pushed by the high-level exchanges between China and Europe. Following the EU enlargement May 1, 2004, the EU has surpassed Japan and the US to become China's largest trade partner. Germany, Holland, the UK, France and Italy are principal trade partners of China inside the EU. China's trade volume with the five countries takes 72 percent of gross trade volume with Europe. China and Europe has achieved the goal set at the sixth meeting of the Chinese and European leaders in October 2003: to realize trade volume of US$ 150 bln, two years earlier than expected.

In addition, the EU is the fourth largest source of foreign investment of the Chinese mainland(Hong Kong, the US and Japan being the top three sources) and the No. 1 source of techniques.

Germany has secured the leading role in EU's trade with China which remains Germany's top trade partner in Asia and second only to US in the world.

By the end of October, 2004, EU companies had set up 19193 businesses in the fast growing economy. Contractual foreign capital from EU was worth 73.46 billion USD while the actual inflow totaled 41,74 billion USD.

EU is also the largest technologies exporter to China so far. By the end of October last year, China had introduced 18530 items of technologies which involved 80 billion USD worth of contracts. From Jan.-October, 2004, China bought 1728 technologies from EU with contracts valuing 4.6 billion USD, making up 25.4 percent and 41 percent of China's total imports of technologies respectively.

There are pending issues which hinder the further rise of the Sino-EU trade. China hopes EU will recognize China's market economy status and lift the arms sale ban. It also complains against EU's trade barriers, especially technical and environmental barriers, as well as increasing anti-dumping charges against Chinese exports. EU asks for wider market access to China.

Fortunately, the two sides understand the importance of resolving disputes through communications and take positive actions to address the issues. An array of dialogue mechanisms are in place covering trade policies, industrial polices, competition policies, intellectual property rights and textile trade to help settle any disputes that may arise. Chinese companies are making efforts on improving their quality. China has initiated taxes on its textile exports. EU has indicated the possibility of the removal of its ban on arms sales to China some time in the first half of this year.

As President of European Commission Prodi puts it, EU-China relation is at its best. Chinese Premier Wen Jiabao also said recently that he thought the bilateral relation was in the most active and fruitful period in history.

In another development, in 2004 the Sino-Russian cooperation in economy and trade maintains a good momentum too. The trade volume exceeds US$ 20 bln for the first time; therefore the goal set in May 2003 at a meeting of Chinese and Russian presidents is realized.

By People's Daily Online

http://english.peopledaily.com.cn/200501/07/eng20050107_169972.html

China, ASEAN start building free trade area

www.chinaview.cn 2004-11-30 01:58:54

VIENTIANE, Nov. 29 (Xinhuanet) -- China and ASEAN started their process for building a free trade area with the signing of the "Agreement on Trading in Goods of the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China."

Witnessed by Chinese Premier Wen Jiabao and leaders of the 10-member ASEAN (Association of Southeast Asian Nations), Chinese Minister of Commerce Bo Xilai signed the agreement with 10 economic ministers of the ASEAN countries.

According to the agreement, starting from July 1, 2005, China and ASEAN countries will start their tariff-reducing process. The two sides will gradually reduce or cancel tariff on 7,000 kinds of products.

Under the agreement, China and six of "old" ASEAN members will complete the building of the free trade area by the year of 2010 while the other four "new" members will enjoy another five years of "transitional period" and complete the building of the free trade area in 2015.

ASEAN recognizes China's market economy status in the agreement.

A China-ASEAN agreement on dispute solving mechanism was also signed Monday.

A high ranking official of the Ministry of Commerce said in an exclusive interview with Xinhua that the signing of the agreement is a milestone for the development of the China-ASEAN relations and is expected to create a win-win situation, as China and ASEAN countries are complementary in goods production.

With the official implementation of the newly signed agreement,the bilateral goods, service trade and investment between China and ASEAN countries will increase by a big margin, the official said.

He said that closer economic and trade ties between China and ASEAN countries will not only benefit the economic development of China and ASEAN countries, but also play a positive role in the economic development of Asia and the rest of the world.

The "old" ASEAN members are Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, while the "new" ASEAN membersare Cambodia, Laos, Myanmar and Vietnam.

A tariff expert who had attended the 17 rounds of formal China-ASEAN talks and two special meetings for reaching the agreement told Xinhua that the new agreement is a pioneer in forging economic and trade relations between a country and a group.

China-ASEAN's "early harvest" mode has been widely accepted in the international community and is followed by quite a number of countries.

"Early harvest" indicates that if the two cooperative partners agree with a certain kind of tariff reducing product among many other products, tariff-reducing agreement on the product could be implemented first.

China has already signed a zero-tariff agreement on fruits withThailand and the agreement is implemented this year.

China has recorded trade deficits with the ASEAN countries in the past few years.

Jing Lingbo, expert on Asian-Pacific studies at the China Institute of International Studies, predicted that China and ASEANmay sign agreements in service and investment following the signing of the agreement on trade.

Ong Keng Yong, ASEAN secretary general, said at a press conference Monday that the trade volume between China and ASEAN reached 84.6 billion US dollars in the first 10 months this year, up 35 percent year-on-year.

He expected that the bilateral trade volume may reach 100 billion US dollars next year.

Commenting on the new China-ASEAN agreement, he said free tradenegotiations between ASEAN and China are good and "we are happy with the process." Enditem

http://news.xinhuanet.com/english/2004-11/30/content_2275112.htm

UPDATED: 16:51, October 26, 2004

China has reached agreement with the Association of Southeast Asian Nations, or ASEAN, on completely removing tariffs on merchandise goods by 2010 as part of a proposed free trade agreement, the Chinese Ministry of Commerce says.

The agreement on ending most tariffs was reached during a meeting last week in Beijing and will be signed at a China-ASEAN leaders' summit next month, the ministry said in a statement posted Tuesday on its Web site.

The two sides will begin to implement the tariff cuts from 2005, it cited ministry spokesman Chong Quan as saying.

China ranks the 10-nation ASEAN as its fifth largest trading partner, with two-way trade currently accounting for more than one-tenth of the country's annual total trade volume of more than $850 billion.

ASEAN includes Brunei, Cambodia, Laos, Vietnam, Indonesia, the Philippines, Singapore, Myanmar, Malaysia and Thailand.

The two sides have been negotiating details of a trade pact for several months. Last month, there was a breakthrough when ASEAN agreed to grant China market economy status.

Under global trade rules, granting market economy status to a country lessens the scrutiny applied to domestic pricing policies, a major factor in investigating unfair trade practices such as dumping.

Chong said China places a high degree of importance on developing and deepening its economic relations with ASEAN.

Free-trade agreements have become increasingly popular due to the slow progress of ongoing multilateral talks at the World Trade Organization with China in several negotiations with trading partners.

Australia and China are conducting a feasibility study on a proposed free-trade agreement. If the study is favorable, Australia will also have to decide whether to grant China market economy status before further negotiations can proceed.

Source: China Daily/agencies

http://english.peopledaily.com.cn/200410/26/eng20041026_161683.html

www.chinaview.cn 2004-09-04 21:19:57

JAKARTA, Sept. 4 (Xinhuanet) -- Members countries of the Association of Southeast Asian Nations (ASEAN) announced here Saturday they recognize the full market economy status of China.

The announcement was made shortly after the third consultation between the ASEAN Economic Ministers and China's Minister of Commerce Bo Xilai.

"Each of the 10 member countries of ASEAN recognizes full market economy status of China," Indonesian Industry and Trade Minister Rini Soewandi, who co-chaired the meeting with Bo Xilai, told a press conference here.

Three ASEAN countries -- Singapore, Malaysia and Thailand -- have individually announced their recognition earlier this year.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, the Philippines and Vietnam. Enditem

http://news.xinhuanet.com/english/2004-09/04/content_1944862.htm

Chinese premier makes five proposals for promoting Asian cooperation

UPDATED: 14:12, June 22, 2004

Chinese Premier Wen Jiabao Tuesday made five proposals for promoting Asian cooperation in the new century, which he said is "both a grand cause full of hopes and an arduous task placed before us."

The five proposals, put forward at the opening ceremony of the third foreign ministers' meeting of the Asian Cooperation Dialogue, are as follows:

-- Asian countries should adhere to the Five Principles of Peaceful Coexistence and safeguard peace and stability in Asia.

Development calls for stability while cooperation cannot be achieved without peace. Asian countries should respect the reality of Asia's diversity, carry forward the tradition of Asian cooperation, treat each other candidly and as equals, settle disputes through dialogue and seek security through cooperation.

For those problems left over by history or controversial issues, Asian countries should focus on the larger picture, conduct consultation on an equal footing, and handle them properly through mutual understanding and accommodation. To some of these issues, the principle of "shelving differences and going in for joint development" can be applied.

-- We should let economic cooperation and trade spearhead all-round cooperation in Asia.

Economic cooperation and trade are the core of regional cooperation, therefore it is important to further explore the establishment of regional free trade arrangement and investment protection mechanism. In the meantime, more emphasis should be laid on strengthening: agricultural cooperation to ensure food safety in Asia; energy cooperation to meet the energy needs of Asian development; fiscal and financial cooperation to safeguard financial security in Asia; cooperation in environmental protection to build a "Green Asia" together; cooperation in information industry to narrow the "digital gap"; cooperation in public health to improve disease prevention and control in Asia; and cooperation in education to improve the capacity of Asian citizens.

-- The mechanism for Asian cooperation should be improved on the basis of the existing channels of multilateral cooperation.

A full-fledged mechanism is the platform and guarantee for enhanced regional cooperation. Facts have shown that organizations like Association of Southeast Asian Nations (ASEAN), South Asian Association for Regional Cooperation, Arab League, ASEAN plus China, Japan and the Republic of Korea and Shanghai Cooperation Organization have played an important role in promoting regional cooperation. Asian countries should attach great importance to and vigorously support these mechanisms in playing their full role.

Meanwhile, Asian countries should strengthen the interaction and coordination among various multilateral cooperation mechanisms so that they will become institutionalized and can work on a regular basis.

-- People-to-people contact should be increased among Asian nations in order to enhance mutual understanding, trust and friendship.

People-to-people contact is an important bond and basis for cooperation between states. Asian countries should vigorously expand our cooperation in tourism and conduct multi-channel and diversified cultural exchanges; initiate and promote friendly exchanges among young people; maximize the positive role of business communities, non-governmental organizations, academic institutions and the media of all countries in promoting Asian cooperation.

-- Asian countries should adhere to the principle of openness, accommodation and tolerance, and take the Asian cooperation to a higher level.

Asian cooperation should not be exclusive, nor should it target against any third party. Asia cannot achieve rejuvenation in separation from the world, and it needs to learn the experience of other countries and regions in development and cooperation. Asian countries should maintain communication and coordination with countries and organizations outside the region, achieve development by opening up to the rest of the world and make progress in global cooperation.

Asia faces historic opportunities to enhance cooperation

Asia is now facing historic opportunities to enhance cooperation and achieve common development, said Chinese Premier Wen Jiabao. Wen based his judgment on the fact:

-- Peace and stability remain the themes of the times, and this is also true in Asia;

-- Economic reform in many Asian countries has further integrated them into economic globalization and regional cooperation;

-- Asia enjoys rich natural resources, abundant workforce, vast market and huge potentials in regional economic cooperation;

-- Asian countries generally value family, education, hard work and thrifty, and such shared philosophy has reinforced the inherent drive for regional cooperation; and

-- Through years of efforts, regional and sub-regional cooperation in Asia has made new and steady headway, featuring robust regional dialogue and mutually beneficial cooperation.

"All these factors have laid a solid foundation for even more extensive and advanced cooperation among Asian countries," said Wen, who also urged Asian people to be aware of the difficulties and challenges in Asian cooperation.

"The region is faced with many problems left over by history, and certain hotspot issues are yet to be addressed properly. The uneven economic and social development of Asian countries has limited the potential role of regional cooperation, and there is not enough rational and orderly intra-regional flow of goods, capital, technology and personnel," he said.

Wen called for more efforts for Asian regional cooperation to develop both in magnitude and scope and in mechanism building. He said in the wave of economic globalization and regional integration, carrying out regional cooperation and development is just like sailing against the current.

"We must continuously forge ahead or we'll be swept downstream," he said. "Only by strengthening cooperation, can we Asian countries all share the opportunities; only by working together like crossing a river in the same boat, can we be strong enough to conquer all difficulties; and only by uniting our strengths, can we remain invincible in the fierce global competition," Wen said.

http://english1.peopledaily.com.cn/200406/22/eng20040622_147149.html

www.chinaview.cn 2004-03-14 18:27:11

BEIJING, March 14 (Xinhuanet) -- China does not seek hegemony now, nor will it seek hegemony even after it became powerful in the future, said Chinese Premier Wen Jiabao at a press conference here Sunday.

China has a history of 5,000 years with both glorious achievements and humiliating sufferings, and the rise of China has been the dream of generations of Chinese, Wen said.

China will take full advantage of the good opportunity of world peace to develop itself and at the same time safeguard world peace with its development.

The premier said China's rise will be based on its own strength and self reliance, as well as the vast domestic market, abundant human resources and abundant natural resources.

Noting China's rise could not be achieved without the rest of the world, Wen said the country must always maintain its open policy and always develop economic and trade exchanges with all friendly countries on the basis of equality and mutual benefits.

China's rise, which would require a lot time and probably efforts of several generations, will not stand in the way of any other country, nor pose threat to any other country, nor at the cost of any other country, Wen said.

"China does not seek hegemony now, nor will it seek hegemony even after it became powerful," Wen said.

Enditem

http://news.xinhuanet.com/english/2004-03/14/content_1365646.htm

China's rise benefits world: Comment

Last updated at: (Beijing Time) Tuesday, March 02, 2004

Though the rise of China is an indisputable fact, consensus on the approach and future of the nation's ascent has yet to be reached in the international community.

During his address to Harvard University last November, Premier Wen Jiabao for the first time stated to the world China's confidence and determination in its peaceful rise. Peaceful rise has become China's national will and concept.

In the terminology of international politics, used to study the destiny of an empire or big power, the word "rise" is always linked with "decline" or "fall."

In the West, since the word "rise" denotes a potential "change of hegemony" or "transfer of power," the growth of a new power invariably makes traditional hegemonic countries uneasy. Moreover, as Westerners who believe in "democratic peace" doubt whether China can become "democratic" in the future, they recognize the theory of "China threat" more than the theory of "China's peaceful rise."

Within China, the term "great rejuvenation of the Chinese nation" replaces the word "rise." However, the word "rejuvenation" can also make neighbouring countries suspicious that China might attempt to restore the imperial system.

In fact, regarding the regional environment prior to China's growth, the approach during its rise and the impact after its rise, the ascent of China is not only reasonable but also legitimate and peaceful. In terms of the environment, China is able to and will inevitably realize the "rise in peace."

Economic globalization and the vigorous development of regionalism have created a favourable international economic climate for China's peaceful ascension. The process of China's rise has just overlapped the transformation of world politics and economy, so the rise of China is with the tide of development. Moreover, the peaceful ascent of Asia has become the basis for China's peaceful rise.

The new mode for co-operation among the big powers in the field of non-traditional security such as anti-terrorism and anti-proliferation has created a favourable international political environment for China's rise. Generally speaking, most of the big powers have adopted the position of recognition on China's growth.

China has been actively seeking to solve disputes with neighbouring countries through peaceful negotiations. China so far has resolved territorial conflicts with most of its neighbours and has also reached consensus with all sides concerned on maintaining peace and stability in the disputed areas through peaceful means.

Rifts over territory and water are not the obstacles preventing China from developing good relations and co-operating with its neighbouring countries to build regional security, which has created a favourable security environment for China's ascending in peace.

With the improvement of national strength and international status, China is increasingly welcomed by major powers, neighbouring nations and the Third World to play a more active global role, which builds a positive image for the country.

Regarding China's huge population and growing involvement in the process of globalization, it would not be in the interests of the world if China did not rise.

The approach China has adopted for its ascent is inevitably peaceful. Internally, making a peaceful, democratic and civilized nation has been designated as China's ultimate development goal. Externally, the nation has obtained resources and development momentum through legal means and constructively participated in international affa