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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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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

In 2008, China impresses world in unprecedented way

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

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

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.

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)

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

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

China is a major contributor with United Nations Peace Keeping Mission

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.

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 affairs.

This differs fundamentally from the mode of rise of other powers in history.

China's rise stems from the rapid growth of the economy, which is largely based on its domestic market. China's economic development also hinges on a peaceful and stable international environment. Rather than choosing the road of external expansion as some big powers in history, China has chosen the mode of combining self-reliance with opening up for developing its economy, which has laid the material foundation for China to rise peacefully.

To build an all-round well-off society is the domestic basis for the legitimacy of China's ascent. The promotion of the new security concept with mutual trust, mutual benefit, equality and co-operation as its core and the successful practice of the Shanghai Co-operation Organization have contributed to enhancing increasingly the international basis for the legitimacy of China's peaceful rise.

China's rise also comes from the growth of its soft power and contributions to the world.

The priority of China's diplomacy has been adjusted as relations with the major powers, neighbouring countries and the Third World. China seeks to improve and develop its relations with developed countries by enhancing common interests while adopting the policy of "being friendly to and making partners with neighbouring countries" and seeking to strengthen the unity and co-operation with the Third World by establishing a just and reasonable new world political and economic order.

This foreign policy has been welcomed by the international community and thus has upgraded China's soft power.

China's economic growth has made great contributions to the growth of world GDP and global trade. China has also played a constructive role in seeking a peaceful solution to the nuclear issue on the Korean Peninsula.

Since China has not adopted the approach of challenging the hegemony and world order for its rise and has sought to be a responsible country within the current international system, its growth is hailed by the international community.

In terms of impact, China's peaceful rise means "rise for peace." Specifically, China seeks security and development by means of realizing world peace and prosperity so as to fulfil its promise of peaceful rise made to the world body.

The goal of China's rise is to "build an all-round well-off society" internally and to "maintain world peace and promote common development" externally. China's rise serves to better safeguard and realize the human rights of the 1.3 billion Chinese citizens and to better realize the national right of China.

Of course, China's peaceful rise is not unconditional and without challenge. The largest challenge lies in itself, including whether or not being able to realize the balance and co-ordinated development between regions and industries, stabilizing the situation in the Taiwan Straits to achieve peaceful reunification, and becoming integrated into the mainstream international society.

It also includes whether or not being able to realize the peaceful and steady development of the Sino-US strategic relationship, the common rise by following the example of the European integration, and promoting win-win Sino-Japanese relations.

The competition between the big powers in the future is not merely a competition of comprehensive strength but one between the continental blocs based on regional integration, mostly between Europe, America and Asia.

The future of China lies not only in managing the Chinese economic circle but in becoming the engine of Asian integration and another sphere independent of Europe and America. If so, national unification and the Sino-US or Sino-Japanese relations will never be the problem containing the rise of China.

Source: China Daily

http://english.peopledaily.com.cn/200403/02/eng20040302_136295.shtml

What to do after becoming a big power?

UPDATED: 15:10, June 26, 2004

The great rejuvenation of the Chinese nation is the aspiration of generations of all the Chinese people and overseas Chinese. However, in the process of the rejuvenation of a country or a nation, what comes along is by no means merely longing and enthusiasm, but rather it is the need to face and solve many major internal and external difficulties and problems.

Recently, scholars and experts made many expositions on the connotations and conditions regarding "China's rise". They reckoned, a county becoming a so-called "big power" seems to be only a matter of comparison with other countries and nations, but in essence, it is still a domestic matter, change or progress happens within the country. This writer, Chu Shulong, head of the Institute for International Strategy of Tsinghua University, raised this question: What is to be done after becoming a big power? China's development does not end even after it has developed, it is all the more a question concerning what's the aim of its development and what to do after its development. This is just like the question of what to do after having money, and money itself is not the objective. When we see and feel the glory of advancing toward a big power, we should notice and realize that after we have developed ourselves, we are bound to shoulder more international responsibilities and obligations, which are the inevitable accompany things of China's moving toward a big power.

Actually, we have now come up against the problem of responsibility, obligation and price to be paid for development before we have become developed. As it just began its take-off, China's economy was taken as challenge, competition and even "threat" to economy and security by many other countries and people. In our effort to convince others that China is not a "threat", we should not remain at merely talking about this matter, but instead we should do more work, pay some price and sustain some loss. For example, even if we have had a certain amount of military capability, we can hardly use this capacity to solve disputes over territory and territorial waters with other countries; we should provide more aid to other countries and regions, particularly those less developed than China, for their development; we are going to establish "free trade areas" with ASEAN (Association of Southeast Asian Nations) countries and regions, open our market, expand export and even take the initiative to give assistance to some of them on preferential terms, so that they can have a share of the benefit from China's rise. These are not merely a matter of wish and writing, but instead require actual deeds.

To be a big power is not only a question of international status and reputation, but also an issue of international responsibility and obligation. A "big power" implies that we are required to pay more United Nations (UN) membership fees, have a bigger share of expenditures on keeping peace and other financial contributions. International status requires us to participate more in the endeavor to maintain world peace and security, including material, financial and personnel contribution and sacrifice. When we are heartily discussing "China's rise", are we prepared to undertake the responsibility and cost for China's rise?

Even if China's advance toward a big power is in a peaceful process, it will still arouse worry, fear and even contradictions and conflicts, which is not completely dependent on our subjective wishes. If "Taiwan independence" elements are bent on going their own way, if the thinking of "containing China" became the mainstay of the national strategies and policies of the United States and some other countries, China would encounter big obstacles to its development. These are problems that we must realize and get prepared when considering the change in our own status.

In the long run, China's rejuvenation is the general trend in the 21st century, but the road is tortuous, the task is heavy and the way ahead is long, for this reason, we should keep a sober mind, and untiringly make earnest efforts.

By People's Daily Online

http://english.peopledaily.com.cn/200406/26/eng20040626_147622.html

Morgan Stanley chief economist: 'why we ought to be thanking the Chinese'

Last updated at: (Beijing Time) Tuesday, March 16, 2004

In an article published in the latest issue of Fortune magazine titled Why We Ought to Be Thanking the Chinese, Stephen Roach, chief economist of Morgan Stanley said, it's because China has filled up the huge gap Washington generated in the US economy.

Roach believes that RMB being pegged to the US dollar was once a focal point of debates. Recently Federal Reserve Chairman Greenspan viewed the rumor that RMB would appreciate 5 percent as a "fairly reasonable expectation". This couldn't be more wrong. Roach said people in vexation are easy to neglect what extraordinary benefit China a rapidly developing country has brought to the world, especially to the United States. Of the record-breaking $540 billion in the US trade deficit in 2003 China does account for certain percentage. Nevertheless, the deficit was not made by Beijing, but by Washington. Due to the loss of control on federal budgetary deficit the US has almost depleted its national savings. To sustain what economic growth need in investment domestic savings shortfall must be offset by surplus savings from abroad. Apart from continually increasing balance-of-payments and trade deficit so as to attract foreign capitals, America has no other alternatives.

Roach said China played a very important role in filling up the gap in the US economy. Indeed the biggest beneficiary of the Sino-US trade is the consumer. Last year the United States imported from China more than $150 billion worth of cheap, high-quality commodities, which was conducive to the control on inflation ratio. With the exception of oil products prices of import commodities grew by only 1 percent. This was an extremely small rise for the weakening dollar and a rapidly growing economy. Low inflation provides the job-short and income-constrained US consumers with extra purchasing power. For this America should express its thanks to China. China used most of the profits gained from export to reinvest in mainly dollar-based financial assets. Up to last November China possessed $144 billion US treasury bonds, namely, China possessed 9.6 percent of the total holdings of foreign-currency government securities. It was three times that of 1994. Among the foreign holders China ranks No.2, second only to Japan, yet far surpasses the No.3 holder - Britain. This is by no means something insignificant Roach said. Under normal circumstances large-scale government loans would drive up financing cost. But China's active purchase of American treasury bonds can prevent this from happening. By keeping exchange rate low China is in fact providing America with more opportunities for economic growth.

Roach said the USA is not the only one who should be grateful to China's rising up. The rapid influx of transnational corporations has turned China into a link of the global supply chain. In China's total export growth over the last 10 years, 65 percent came from the subsidiary companies and joint ventures of transnational companies set up in China by Japan, the United States and Europe. By replacing high cost operation with low cost production in developing countries such as China, consumers worldwide eventually partake in the benefits resulting from this. In the meantime China has become main source of growth of its neighbors and other Asian countries.

Roach believes that the theory of "China Threat" put forward in an age of economic globalization is not apt at all. The world should thank China for its insistence in changing state-owned economy. For China this is the only way to sustainable prosperity but for other countries, it is an opportunity to tap for a huge market.

By People's Daily Online

http://english.peopledaily.com.cn/200403/16/eng20040316_137625.shtml

Work hard for another 20 years: Commentary

UPDATED: 11:09, July 13, 2004

This article by PD authoritative commentator Ren Zhongping on the crucial period of China's reform and development was published on the front page of this leading newspaper on July 12, 2004. Excerpts follow:

(I) A country's development road is long, but usually there are only several steps at the critical point.

Our country's reform and opening up program is in a crucial period, this is a scientific judgment made by the Party Central Committee. The reform and opening up program has ushered in a new period for China's socialist modernization drive. By 2003, per-capita GDP exceeded US$1,000, by internationally recognized standard, China has moved away from the ranks of low-income countries. This is a great monument in the development history of the Chinese nation, creating a new starting-point in forcefully pushing forward socialist modernization.

(II) At the beginning of the launch of reform and opening up, Comrade Deng Xiaoping put forward his famous "three-steps" strategy: Doubling the 1980 GNP (gross national product) in 10 years, thereby solving the problem of feeding and clothing the people; then once more doubling the GNP in another 10 years, thereby achieving a relatively prosperous life; and then after another 50 years of efforts bringing China up to the level of a moderately developed country.

After the Party's 14th and 15th national congresses, the "three-steps" strategy was further enriched and the two "100-years" targets were set: By the 100th anniversary of the founding of the CPC, the national economy will become more developed, various systems will be more perfect; by the 100th anniversary of the foundation of the People's Republic, China will have basically realized modernization and have thus built up a prosperous, democratic and culturally advanced socialist state.

The 16th National Congress of the Party stated that for China the first 20 years of this century is a period of important strategic opportunity which we must firmly grasp and in which we can accomplish much. The author says during this period we need to build a relatively prosperous society in all aspects. When this comprehensive prosperous society is built, per-capita GDP will reach US$3,000.

The "three-steps" strategy, the "two 100 years" and the "period of important strategic opportunity"-these are the time/space historical coordinate of China's socialist modernization drive, the clarion call that brings together and inspires the people of all ethnic groups of the country in their heroic advance, and is a magnificent blueprint for realization of the great rejuvenation of the Chinese nation.

(III) People in the crucial period are considering this "crucial period" from different angles.

Economists hold that the achievement of US$1,000 of per-capita GDP is an important mark, implying that economic development has leaped to a new stage and an important juncture has been ushered in. During this period, the stage of basic living consumption has become thing of the past; while the stage of consumption for enjoying life is starting; the service industry has stepped on to the path of rapid development, adjustment of economic structure is accelerated; hundreds of millions of farmers are leaving their land to seek new space of development; the degree of economic marketization is further rising, deepening reform is touching deep-seated contradictions and problems, system innovation is entering the crucial stage; economic globalization and astonishing progress of science and technology have brought about unprecedented close world economic links, competition for overall national strength has witnessed unprecedented ferocity, China's open economy has experienced constant development, the country has constantly increased its dependence on foreign countries; on the basis of the high-speed growth achieved over the past more than 20 successive years, the economy is still keeping long-term rapid growth, precedent of this type of development is rare in the world.

Sociologists maintain that in this period, China's industrialization and urbanization are pressing ahead swiftly, which has given rise to the adjustment of urban and rural relations, the enhancement of social mobility, and the restructuring of the world's largest dual economic entity; people's material and cultural demands and social interested ties are getting diversified, making it more difficult to balance the interests of various quarters; people's awareness of democracy and the legal system is undergoing constant enhancement, their enthusiasm for political participation is soaring, setting new demands on developing socialist political democracy and implementing the basic strategy of running the country according to law; people's thirst for and pursuit of a better life propel economic and social progress, while material avarice also corrupt the souls of some people, legal and moral systems compatible with a socialist market economy are in urgent need of perfection.

Historians think that this period is vitally important to China's development. When we seize the opportunity, we can achieve leapfrog development. In the long process of human history, the Chinese nation had once long been holding the leading position in the world, but till the 18th century when major Western countries had entered industrial societies in succession, China, under the rule of Qing Dynasty (1644-1911), was reduced to the status of being bullied and oppressed by others. With the founding of New China in 1949, the Chinese people have stood up; Since the Third Plenary Session of the 11th Party Central Committee in December 1978, we have seized historical opportunity to launch the reform and opening up policy, concentrated our energy on economic construction, as a result, the Chinese people have become well-off and grown in strength, bringing in the morning twilight for national rejuvenation.

Experts on international issues are of the opinion that when a country's per-capita GDP has hit the mark of US$1,000, there may appear two prospects and two results: Some rise up for a take-off, some linger about and make no progress. For example, some East Asian countries and regions properly handled various faceted relations during the period and thus achieved many years of sustained and rapid growth; whereas some Latin American countries were bogged down in turbulence and stagnation at critical juncture due to improper measures.

(IV) Although people consider things from different angles, on some basic issues, however, they can reach the following consensuses:

First, this is a period featuring increased difficulties in maintaining rapid development. With the continued rise in the level of development, the comparative advantage of low labor cost begins to decrease, pressure brought by the upgrading of technology and structure is mounting with each passing day, the tasks of reshaping the economy and optimization of structure become more urgent.

Second, this is a period featuring increasing resistance to the deepening of reform. The greater strides ahead taken by reform, the deeper contradictions are touched upon, the more complicated interests are involved and the greater resistance is encountered.

Third, this is a period with greater risk involved in opening wider to the outside world. We are engaging in construction and seeking development under the new situation characterized by opening to the outside world in a greater scope, wider area and higher level. In this period domestic competition is being international-oriented while international competition is being domestic-oriented, presented before us is worldwide competition.

Fourth, this is a period wherein restraint imposed by the resources environment tends to become tight. Resource consumption increases by a big margin and environmental pressure continues to enlarge. This is an unavoidable sharp and difficult problem.

Fifth, this is a period of arduous task for maintaining stability. In this period, numerous social problems will emerge. This requires that we should pay more attention to maintaining social stability than any time in the past.

Sixth, this is a period of testing the overall quality of the nation. Solution to the problem of getting enough to eat and wear and the realization of a relatively prosperous society in all aspect can inspire us to scale new heights; it may also cause some people to rest content with the status quo and have no desire to make progress. A new leap forward depends upon a new rise in the quality of the nation. The crucial period is a "golden period of development", as well as a "period of sharp contradictions".

(V) As the saying goes: existence determines one's consciousness, while matter determines one's spirit. On the premise of the availability of objective material conditions, the spiritual force often has a decisive significance in accomplishing something. To get through the crucial period, we must have firm confidence and high morale.

(VI) We should realize that contradiction invariably is an objective existence, after old contradictions have been solved, new ones will emerge; Human society advances amid constant solutions of contradictions. The coming of the crucial period indicates that development has reached a certain level, it also presages development of a higher level.

Modern science and technology represented by sciences of information and life are changing from day to day, opening up a new, broad prospect for the development of productive forces and society. The in-depth development of economic globalization, the reorganization of international production elements and the accelerated shift of industries have provided us with favorable international conditions; overall national strength formed through many years of reform and opening up has provided us with a solid material foundation; the continuing perfection of the socialist market economic structure has offered us with a sure system guarantee.

Things invariably have a dual character. Some contradictions and problems arising in the crucial period, viewed from another angle, are also potentials and advantages. The big gap between urban and rural areas is an "obstacle" to development, but if we persist in balancing urban and rural development and speed up urbanization and industrialization, the "hindrance" will become a "locomotive" giving impetus to a sustained and rapid growth of the economy. The huge population is both a "great pressure" on employment, resources and environment, and can become a "rich source" for maintaining long-term strong domestic demands and the advantage of labor cost; through constantly improving people's qualities, a large population can be a "great treasure-house" of human resources. After China's accession to the WTO (World Trade Organization), economic risks facing us have obviously multiplied, however, if we persist in taking ourselves as the dominant factor and pursue the good while avoiding the harm, we will be able to play a magnificent drama on the stage of economic globalization.

(VII) We should also realize that we have high hope and much to accomplish during the crucial period, but this does not mean that the voyage ahead features gentle breezes and calm waves.

Difficulties before us are much more than those facing other countries. China is a big populous county, but calculated on a per-capita basis, China is a small country in terms of resources, its cultivated land and most mineral resources are less than half of the world average, and fresh water is less than one-fourth and forestry less than one-seventh.

The tasks we are undertaking are much heavier than those for other countries. China has not as yet completed the transformation from a traditional agricultural society to a modern industrial society. Developing a market economy under socialist conditions is a great, unprecedented pioneering work, but establishing a perfect socialist market economy still requires unremitting efforts.

The world is undergoing constant development and change. When we are engaging in development, others are doing the same. If we move slowly, China's gap with other developed countries will be widened; if we make great strides, there is hope for us to catch up. That is the fierceness of competition as well as the severity of challenge.

(VIII) Historical dialectics has taught the Chinese Communists: We must change what should be altered; making no change will lead to decline or debility; we must not change what should not be altered, change made in this regard, if any, will lead to one's own disintegration.

As we look back on the course of reform and development, we find we were able to have calmly coped with a series of international contingences that bear on China's sovereignty and security, conquered the "1998 floods", overcome the "Asian financial crisis", triumphed over SARS (severe acute respiratory syndrome), and various other difficulties and risks emerged in the political and economic fields and in the natural world. We have won all these victories by relying on the Party's basic theory, basic line, basic program and basic experience.

As we look forward to reform and development in the crucial period, we are aware that we will cope with more risks and meet more challenges. To let the huge ship, "China", sail ahead through winds and waves, we should all the more rely on the Party's basic theory, basic line, basic program and basic experience.

Deng Xiaoping Theory and the important thought of "three represents" are the Marxism of modern China and the fundamental guideline for building a moderately prosperous society in all aspects. The Party's basic line as expressed in "one central task of economic development" and two basic points (adherence to the four cardinal principles and implementation of reform and the open policy) will remain effective for one hundred years and must not be shaken.

(IX) In the crucial period of development, what comes first is development. To achieve faster and better development, we must firmly establish and conscientiously implement a scientific development concept.

The comprehensive, coordinated and sustainable development concept which puts man first is a major strategic thinking put forward by our Party, which takes Deng Xiaoping Theory and the "three represents" important thought as the guide, proceeds from the overall situation regarding the development of the cause of the Party and the State at the new stage of the new century, focuses on rich connotations of development, creates a new development concept, initiates new development idea and solves difficult problems in development, providing a powerful ideological weapon for us to pass the crucial period and build a relatively prosperous society in all aspects.

In establishing and implementing a scientific development concept, we must persist in the one central task of economic construction, balance urban and rural development, balance regional development, balance economic and social development, balance the harmonious development of man and nature, and balance domestic development and opening to the outside world, and make good use of domestic and international markets and resources.

Guiding development with a scientific development concept, pressing forward comprehensive social progress and man's all-round development on the basis of economic development, and bringing about the common progress of socialist material civilization, political civilization and spiritual civilization, we will certainly be able to have the initiative for development, step into a new realm of development and reap new fruits of development.

(X) Stability is of overriding importance. In the crucial period, we must redouble our efforts to consider the situation as a whole, value unity and maintain stability.

Social development is an organic whole. On the chessboard of the modernization drive, reform, development and stability are like three closely linked strategic chess pieces, in the crucial period, particular attention should be paid to the chess piece of stability.

Stability accords with the will of the people and is linked with the fundamental interests of the masses of people. The greatest beneficiaries of stability are the masses of people; the ultimate victims of instability are also the masses of people. The interests of the overwhelming majority of people are most important. To maintain stability and correctly handle a slew of major relations in economic and social development, it is especially necessary to put proper realization, protection and development of the interests of the people in a more prominent position. To achieve this, we must wholeheartedly do practical work, try our best to solve difficulties, and unremittingly do good things for the people.

(XI) Creative work relies on innovation for its promotion. The linking up of socialism with the market economy is a great pioneering work in human history; building a moderately prosperous society in all aspects in a country with a population of 1.3 billion is also a great creation in human history.

The crucial period and knowledge-related economy come hand in hand and advance shoulder to shoulder with information revolution, in this process, new contradictions and new problems merge one after another, this is a period of concentration of various contradictions, naturally it is also a period of concentration of unprecedented innovations, this requires us to cultivate an innovative consciousness in the whole society, initiate innovative spirit, perfect the innovative mechanism, create an innovative atmosphere and solve new problems by new thinking, new method and new means.

The base of innovation is study and the mainstay of innovation is talent. We should respect labor, respect knowledge, respect talent and respect creation, establish a scientific talent-related concept, comprehensively implement the strategy of building a powerful country by relying on talents, turn a populous country into a talent power, and transform population pressure into advantage of talents.

(XII) The crucial period is not only an important period of strategic opportunity for developing advanced productive forces, but also is an important period of strategic opportunity for developing advanced culture.

In today's world, culture and economy-politics mingle with each other, the status and role of culture become increasingly striking in the competition for overall national strength. Firmly grasping the direction of progress of advanced culture, vigorously promoting and fostering the national spirit, constantly enriching people's spiritual world, and beefing up people's spiritual force-that is a strategic task for us to build a moderately prosperous society in an all-round way, as well as a strong motivation for passing the crucial period.

The crucial period extends not one or two years, but lasts 20 years. Youngsters of today are builders of tomorrow. A better future of the Chinese nation relies on today's minors to create. Strengthening and improving moral construction of minors is a project of popularity, hope, foundation and strategy.

(XIII) The development of things usually is a complicated process, things develop from a simple beginning, when hey are near completion, they are bound to be arduous and carry the character of law. The crucial period is a stage for bringing about glory, it is all the more a process fraught with all sorts of hardships. This is especially necessary for one to be hardworking, practical and pragmatic.

Our Party has grown and thriven by relying on hard struggle, passing the crucial period also relies on hard struggle. Hardworking is our true political quality. Struggle entails hardship, while hardship engenders new development.

Our Party has grown in strength through seeking truth from facts and doing practical work. Being practical and pragmatic is the key content of our Party's ideological line.

Hardworking and being practical and pragmatic is a kind of character, ability and realm. It means, among others, the need to work persistently for the people, to be pragmatic and honest, the need to put emphasis of work on studying and solving major problems arising in reform, development and stability, on studying and solving urgent problems in people's production and life, and on studying and solving outstanding problems in Party building.

(XIV) Tackling major issues during the crucial period, the key to doing this lies in the Party. The crucial period of reform and development is also the crucial period for Party building.

Our Party has just celebrated its 83rd birthday, it has wielded power for 55 years and has led reform and opening up for 26 years. The crucial period is a new test of our Party's ruling capability. In the face of the new test paper, the Party Central Committee with Comrade Hu Jintao as the General Secretary calls upon the whole Party to have a full understanding of the important significance of stepping up construction of the Party's ruling capability, persist in taking improvement of the Party's ruling ability as the focus and comprehensively push forward the new great project of Party building. Strengthening construction of the Party's ruling capability is a connecting point for pressing forward the Party-led great cause and the new great project of Party building. Strengthening and improving Party building with emphasis placed on enhancing ruling capability, and advancing reform and development in the crucial period through Party construction-this is a historical process featuring close link and mutual promotion.

(XV) In the past millennium, the greatest thinker of mankind Karl Marx once said that people who were the first to vigorously pitch into new life, their destiny was envious.

Nowadays, the process of comprehensively building a well-off society has started. History has chosen us who are creating a new history. We hold our destiny into our own hands and are jointly creating a happy life and better future, this is the good luck was well as the responsibility of history.

(XVI) More than 20 years ago, who could have imagined that our life would be so happy today, and our motherland would be so prosperous and strong as it is today. We have blazed a bright road, when we continue to advance along this road, our life will certainly become more happy and beautiful, our motherland will certainly become stronger and more prosperous. Let's advance hand in hand and shoulder to shoulder, and work with one heart and one mind for another 20 years!

By People's Daily Online

http://english.peopledaily.com.cn/200407/13/eng20040713_149377.html

Exercising government power in the interest of the people

UPDATED: 11:01, October 07, 2004

The story goes back to October 24, 2003 when Xiong Deming, a woman living in a poverty-stricken village in southwest China, was on her way back home with a sack of pig feed on her shoulder.

She happened to meet Chinese Premier Wen Jiabao, who was visiting her village in Yunyang County, Chongqing Municipality. Gathering enough courage, the woman elbowed into the crowd and told the premier that her husband had worked for a whole year on a road project launched by the local government but had been unable to get his pay, 2,240 yuan (8.27 yuan against the U.S. dollar) in total.

"That accounted for one-third of our income for the year," she said in a recent interview. "Most families here make no more than 6,000 yuan a year."

The premier intervened without delay. Xiong's family got the money before midnight and, five days afterwards, the county government paid the wages it had owed to all others who had worked on the project.

After Xinhua News Agency released a story about what the premier had done for the woman and her fellow villagers, governments all over China began pressing employers to pay wages in full and on time to peasant laborers working for them.

In Beijing, the national capital, construction companies were ordered to pay wages in arrears before the Spring Festival, which fell on January 22, or to be deprived of access to the local construction market.

From November 2003 to February 2004, more than 24 billion yuan in wages held back or pocketed by employers was paid to "immigrant workers" -- those from the countryside who, like Xiong's husband, live on permanent or temporary jobs in cities and towns.

Xiong Deming's story became known across the country overnight, as an example of how earnestly Chinese leaders are implementing the principle of "exercising government power in the interest of the people." The principle calls for special attention to the well-being of "vulnerable groups" - people facing difficulties in work and life despite the remarkable achievements the country has made in striving for modernization.

"No. 1 Document" of 2004

When the late Chairman Mao Zedong proclaimed the founding of the People's Republic of China on October 1, 1949, China was scarred all over after incessant wars and natural calamities, and more than 90 percent of the Chinese population, estimated at about400 million, were living in dire poverty.

In contrast, the same China has come to be recognized as one of the fastest growing economies in the world. Most of the Chinese people have benefited from the market-oriented economic reforms going on over the past 25 years.

In 2003, the country generated 11.67 trillion yuan, or 1.41 trillion US dollars, in gross domestic product (GDP). Calculated on a per capita basis, that exceeded 1,000 US dollars even though the Chinese population had grown to nearly 1.3 billion.

More than 250 million Chinese were living below the poverty line when China kicked off the reforms in 1978. The number has been brought down to about 29 million. To put it graphically, the Chinese people, taken as a whole, have freed themselves from hunger and want, and the best-developed parts of China -- regions along the coast -- are rapidly modernizing, whose per capita annual GDP ranges from 4,000 US dollars (Tianjin), 4,500 US dollars (Beijing), to 7,000 US dollars (Shanghai).

Nevertheless, distribution of the national wealth is not even, given the size of the country (9.6 million square kilometers) and the complexity of differences in conditions between different social groups and between different regions.

From 1990 to 2002, net incomes for the rural population increased by 69.7 percent, averaging 4.45 percent annually. In comparison, net incomes for city people grew 138.3 percent, or 7.5percent yearly during the same period. The income gap between China's urban and rural residents has kept widening. In 1985, disposal incomes for the urban population were 1.89 times those for the rural population. By 2003, the disparity had increased to 3.1 times.

Since the early 1990's, the Chinese government has spared no effort in resolving what it calls "problems facing agriculture, rural areas and rural population." According to the National Bureau of Statistics, from 1998 to 2002 the government raised a total of 660 billion yuan from sales of treasury bonds, and invested nearly one-third of the sum in infrastructure facilities designed to improve living and production conditions in the countryside.

The current Chinese leadership, in particular, has made it clear that to strive for an increase in rural incomes is a "task of paramount importance for the entire Party and Government." Chinese President Hu Jintao has made 15 inspection tours outside Beijing since he was elected general secretary of the Communist Party of China Central Committee in mid-November 2002. According to a Xinhua news report, 11 of these were in the countryside. Wen Jiabao, on his part, has toured the Chinese countryside 17 times since he was elected premier in mid-March 2003.

As a routine, the CPC Central Committee and State Council jointly issue a so-called "No. 1 Document" at the beginning of every year -- in fact a policy paper on anything and everything to be done in the year. The "No.1 Document" for 2004, however, is devoted exclusively to policies designed to help the rural population increase their incomes.

It broke the convention by concentrating on just one aspect of the Chinese society, the aspect that undoubtedly is vital to the country, given the fact that 900 million of the 1.3 billion Chinese live in the countryside.

"Giving more while charging them less" - this is the general policy set in the 2004 "No. 1 Document." It calls for direct subsidies to grain producers in 13 major grain-producing regions, averaging 300 yuan per hectare. In accordance with the same 2004 "No. 1 Document," the state is investing 150 billion yuan in agriculture and rural development for this year, 30 billion yuan more than 2003.

Moreover, beginning 2004, the agricultural tax will be reduced by one percentage point every year and, in five years, it will be revoked once and for all. With tobacco as the only exception, "special agricultural products" -- things like fruit and mushrooms -- are now all tax-free.

The agricultural tax was already revoked in some best-developed regions in 2003, including for example Beijing Municipality and Zhejiang Province. In Heilongjiang and Jilin provinces, China's "bread baskets," work is under full swing to make sure that such tax breaks are truly implemented.

The central government has earmarked a special fund to make up possible shortfalls in local government revenues, through what is known in China's official terminology as "transfer payments."

The result has been immediate. On July 16, when summer harvest has just ended in most parts of China, a spokesman for the State Bureau of Statistics announced that net incomes increased 7.8 percent year-on-year for China's rural population in the first six months of 2004, the fastest growth in the most recent two decades.

Laid-Off Workers & the Unemployed

China's state-owned companies began laying off workers in the early 1990s, in a bid to help the national economy become truly market-oriented. For millions of them this means loss of care from cradle to grave by their employers under a Soviet-style planned economy that held sway in China before the reform era began in the late 1970s.

The Chinese government has responded to the problem with a will. Work has been under way over the past decade to build up a social security system - in fact a mega-dollar project which, just in 2003, cost the central government 70 billion yuan, nearly 20 percent more than in the previous year.

Under such a system, a laid-off worker receives a living wage if he or she cannot find a new job in the first three years. If the worker remains unemployed at the end of the three-year period, he or she may apply to the local government for a subsistence allowance.

The "subsistence allowance" provides a minimum living standard for all those living below the poverty line in Chinese cities and towns. The sum varies from region to region, depending on the economic strength of each.

In Guangzhou, one of the best-developed cities in China, a recipient was given 300 yuan per month at the end of 2003, in comparison to 155 yuan for a recipient in Xining, capital of Qinghai, one of the poorest provinces in the country. Official statistics show that over the past decade, some 26 million people have benefited from the program, which has cost the government more than 100 billion yuan, including 46 billion yuan spent in 2003.

To help laid-off workers and other unemployed people find jobs, a range of assistance has been developed, apart from customary help such as free job-hunting advises, free job training and recommended job opportunities. Helpers come from not only government departments but also communities and the private sector consisting mainly of small- and medium-sized companies.

In Shanghai, a preferential tax policy has been granted to companies hiring laid-off workers aged between 40 and 50, the hardest hit as they are considered too old to learn for new jobs while having families to support. In Dalian, northeast China, 3,600 private companies have offered 13,000 job openings so far this year. In Shanghai and Beijing, job subsidies have been given to those willing to take low-paying jobs such as cleaning streets and public toilets.

Women's federations across the country are mobilized to help train unemployed women into household helpers and babysitters. Among laid-off workers, many mothers work in families to take care of women in confinement.

"They are earning up to 2,000 yuan a month, much more than before they were laid off," Wang Shulan with the Beijing Women's Federation said. "Since they themselves are mothers, they know what should be done and what should not."

In a latest development, the People's Bank of China, the country's central bank, and the Ministry of Labor and Social Security have decided to make bank loans easily available to laid-off workers and other unemployed people seeking to get self-employed. According to a government decision made in early July, the Ministry of Finance will set up a special fund to subsidize such loans, typically smaller than 20,000 yuan with a period of repayment not longer than two years.

Altogether, some 28 million workers had been laid off from state-owned companies by the end of 2003, and more than 90 percent of them had got new jobs.

HIV/AIDS

In 2003, China fought a hard battle against the onslaught of SARS, or severe acute respiratory syndrome, and won. It is now taking up a growing challenge by AIDS, or acquired immune deficiency syndrome, a global scourge.

On February 26, 2004, a committee was set up under the State Council to coordinate efforts of all sides for AIDS prevention and treatment. Chinese Vice-Premier Wu Yi, who doubles as health minister, chairs the committee consisting of senior officials from23 ministries and state commissions and seven provinces and municipalities where AIDS is epidemic.

AIDS-infected peasants and urban poor are the most vulnerable of all the vulnerable groups. At the meeting inaugurating the committee, Wu Yi summarized the policy toward them as "four-free plus care." "Four-free" means free treatment for poor AIDS patients; free blood tests, on an anonymous basis, in areas where the disease is epidemic; and free education for AIDS orphans and free HIV-AIDS counseling for pregnant women there. By "plus care," she meant relief in cash and kind to patients' families in financial difficulties, aside from campaigns to publicize AIDS knowledge and urge fair treatment of AIDS patients by the general public.

Wu, as a matter of fact, has set a personal example of sympathy and attention to AIDS-infected people. Shortly after the battle against SARS was won, she visited villages in Shangcai County, Henan Province, where thousands have been infected through selling of their blood.

The vice-premier was found right in homes, talking with patients and their families to make sure that the "four-free plus care" policy was truly implemented, and drinking from their bowls. In a latest development, 72 officials of the Henan Provincial Government have been sent into these villages.

They are charged with helping local families improve their conditions while seeing to it that patients take the medicines, all free of charge, in doses and on time as prescribed.

From "Serve the People" to "Exercising Government Power in the Interest of the People" ????

Far back in the 1930s, the founding fathers of New China set "serve the people" as the guideline for the Communist Party of China in all its work. "Serve the people," in fact, represents the finest tradition the Party has passed on and has now evolved into "exercising government power in the interest of the people."

"Exercising government power in the interest of the people," asa formulation in China's official terminology, may be beyond the comprehension of those outside the country who have no or little idea about China. For the 1.3 billion Chinese people, however, it means they can count on the government for an increasingly prosperous life, and those vulnerable groups among them can expect improvement in their life when the country is rapidly modernizing.

That, in part, explains why the Chinese people are so confident in building China into a modernized, highly democratic country in the decades ahead.

Source: Xinhua

http://english.peopledaily.com.cn/200410/07/eng20041007_159199.html

Constitutional change marks ideological breakthrough

www.chinaview.cn 2004-03-09 20:12:20

BEIJING, March 9 (Xinhuanet) -- Representatives of the people throughout the country discussed on the draft amendments to the Constitution submitted by the Standing Committee of the National People's Congress (NPC) on Tuesday.

The draft amendments, the fourth since the constitution was promulgated in 1982 and proposed by the Central Committee of the Communist Party of China (CPC), are expected to enshrine the respect and protection of human rights, the protection of private property lawfully acquired and the important thought of Three Represents in the fundamental law.

This represents an ideological breakthrough by the CPC that is leading the 1.3 billion people toward a well-off society along the road of what is described as "socialist market economy".

This is the natural results of economic and social developmentover the past 25 years as China's reform and opening up drive has brought about enormous changes to economic, social and political life.

Human rights, private property and "Three Represents" all embody the "people first" principle and represent their fundamental interests. The codification of these in the fundamental law represents a shift away from the growth-focused strategy to a comprehensive approach to development that features the protection of human rights and private property lawfully acquired, guarantee of social justice and an overall, harmonious and sustainable development.

Described as a scientific concept of development, the "people first" development strategy will enable China to proceed from the fundamental interests of the people in doing everything and to strike a balance in both urban and rural development, among different regions, economic and social progress, man and nature, and both internal and external development as is outlined by Premier Wen Jiabao in his government work report to the ongoing National People's Congress (NPC) session.

The same is true with "Three Represents", which spells out as representing the most advanced productivity and culture and the fundamental interests of overwhelming majority of Chinese people.

This thought is reinforced by the codification of the respect and protection of human rights and private property, which is regarded as a concrete measure to implement it.

Right before the opening of this current session of the NPC, the central leadership published a lengthy article to paraphrase the scientific concept of development, an ideological advance following the first three generations of leadership of the Party.

The inclusion of the new ideological progress in the fundamental law has been applauded nationwide. It has further strengthened trust of the people in the Party and the government and their hopes of achieving the long-term goal of building a well-off society in all aspects under the leadership of the Party. Enditem

http://news.xinhuanet.com/english/2004-03/09/content_1355433.htm

China issues white paper on human rights progress

Last updated at: (Beijing Time) Tuesday, March 30, 2004

Two weeks after enshrining the principle of "respect for and protection of human rights" in its Constitution, China published a 16,000-strong-word white paper Tuesday to detail the progress in its human rights cause last year.

The white paper released by the State Council Information Office, titled "Progress in China's Human Rights Cause in 2003", came on the heels of a United States decision to table an anti-China motion in the United Nations Commission on Human Rights.

"To help the international community toward a better understanding of the human rights situation in China, we hereby give an overview of the developments in the field of human rights in China in 2003," said the white paper.

Calling 2003 "a year of great, landmark significance for progress in human rights in the country", the white paper said the new leadership that took office last year has adopted the "people first" principle of government, and in practice has taken a series of distinctively epochal measures for respecting and safeguarding human rights.

"The leadership has made great efforts to acquaint itself with the feelings of the people, to reflect such feelings, to reduce the people's burdens and practice democracy, which have markedly improved China's human rights conditions and won universal acknowledgment from the international community," it said.

The white paper went on to elaborate on China's human rights conditions in 2003 in eight chapters:

-- The rights to subsistence and development are key for the protection of all other basic human rights. With the country's per-capital GDP (gross domestic production) surpassing 1,000 US dollars for the first time, the general living standard of the people continued to rise, the consumption pattern of the society showed that it was gradually changing from one of basic living to one of modern living, and the size of the impoverished population without adequate food and clothing in rural China decreased from 250 million at the beginning of China's reform and opening-up program in 1978 to 29 million in 2003.

China attaches great importance to protecting the health and safety of its citizens. Faced with the sudden outbreak of the SARS epidemic, the central and local governments earmarked more than 10billion yuan to purchase medical equipment, medication and protective gear, to reconstruct hospitals and to provide free treatment to patients in financial difficulties. The death rate of confirmed SARS patients on the Chinese mainland has been 6.5 percent, lower than the world's average of 9 percent.

- China has endeavored to widen the scope of citizens' orderly political participation, and to safeguard their civil and political rights in accordance with the law. The national legislature adopted 10 laws last year including the "Law on Residents' ID Cards," which all display the basic spirit of serving the people and benefiting the people, as well as respecting and safeguarding their human rights.

Along with the full-scale democratic construction at the rural grass-roots level, the democratic rights of the masses there have been respected. Making village affairs known to the villagers, referred to as the "Sunlight Project" by the people, has been practiced across the country. So far, over 90 percent of villages have set up bulletin boards for such purposes, giving timely reports to villagers of village, financial and administrative affairs concerning their interests.

The year 2003 also witnessed the setup of the press spokesperson system by people's governments at all levels, which enabled citizens to enjoy more rights to information, supervision and participation in public affairs.

Chinese citizens enjoy the freedom of religious belief in accordance with the law and normal religious activities are protected. Chinese religious organizations have established relations with religious organizations and personnel in more than 70 countries and regions.

-- In 2003, China further beefed up its judicial reform, claiming significant progress in judicial guarantee for human rights. The Chinese government has carried out a major reform in its social assistance program, replacing the "Measures for the Sheltering and Send-off of Urban Vagrants and Beggars" with the more humane and law-based "Measures for Assisting and Managing Urban Vagrants and Beggars with No Means of Livelihood."

Cases of extended detention involving 25,736 people were corrected last year, basically rectifying such deviations. This was a clear-up of extended detention, the most extensive in scope, the biggest in scale and the largest in number of people involved in the nation's judicial experience. Thereby, the judicial guarantee for human rights was greatly strengthened.

Legal aid has been implemented effectively, ensuring citizens' right to receive legal aid with the "Regulations on Legal Aid" formulated and promulgated in 2003. The statute has been the first ever national legislation in China that established a basic framework for China's legal aid system, and defined the scope of citizens' right to legal aid.

-- Emphasizing employment as the basis of people's livelihood, the central government appropriated an additional special subsidy of 4.7 billion yuan to support employment and re-employment in 2003, and a result, the nationwide registered urban unemployment rate was kept at a 4.3 percent rate.

The social security network, comprising of insurance relating to employment, work related injuries, medicare and pension, covers an ever more number of people.

The government launched a special campaign to protect rural migrant workers' rights and interests around the country. The fact that the Premier of the State Council personally ordered the payment of rural migrant workers' arrears of wage vividly reflects the government's great concern about the problem of failure to pay rural migrant workers' wages and the protection of their rights and interests. According to statistics, from November 2003 to February 2004, a total of over 24 billion yuan of overdue wages was paid to rural migrant workers. At present, China is drafting a "Law of the People's Republic of China on the Protection of Farmers' Rights and Interests," which will go a step further toward providing all-round legal protection to farmers' rights and interests.

-- The state protects the legitimate rights and interests of women and children in accordance with the law. Currently, among the 29 ministries and ministerial-level commissions and agencies of the State Council there are 22 female officials of the ministerial rank. Job opportunities for women keep growing, and women have become increasingly independent economically, and the proportion of women employed in the primary and secondary industries has been on the decline, while in the new industries and technology- and knowledge-intensive industries, the proportion of women has increased remarkably. The educational gap between men and women is narrowing, and the ratio of women in education at all evels has been on the rise.

-- In China, ethnic minorities enjoy equal rights to participate in the administration of state affairs and the rights to independently manage the affairs of their own regions and their own ethnic communities.

In 2003, the gross output value in those areas exceeded 1,100 billion yuan, an increase of 11.1 percent over the previous year, which was higher than the nation's average. As part of the effort to promote education in ethic minority regions, beginning in the autumn of 2003, the central and local governments jointly earmarked funds to provide textbooks free of charge to poverty-stricken students at the stage of compulsory education in 56 counties of Xinjiang, and exempted them from all school fees.

-- The Chinese government puts great stress on the protection of the rights of the disabled. There are 60 million disabled people in the country, accounting for about 5 percent of the total population. And in 2003, a large number of disabled people overcame their handicaps to varying degrees, and the disabled persons' right to receive education, to work and social security has been better protected. And he state endeavors to create a social environment of care and help for the disabled. More than 40,000 liaison offices of help-the-disabled volunteers have been established throughout the country, and the number of registered young volunteers is upwards of 1.86 million.

-- China has all along been supportive to and actively participated in activities in the field of human rights sponsored by the United Nations, actively carried out dialogues and cooperation with countries throughout the world with regard to human rights on the basis of equality and mutual respect. It has, to date, acceded to 21 international human rights conventions, and has taken every measure to honor its obligations under those conventions.

Deng Pufang, chairman of the China Federation of the Disabled was award in December 2003 "the United Nations Human Rights Award." It was an expression of high appreciation for Deng personally as well as an appreciation of the international community for years of efforts made by China in promoting and protecting human rights.

The white paper concluded that full realization of human rights is the common goal of countries throughout the world as well as an important target for China in her efforts to build a moderately prosperous society in an all-round way, as well as her "peaceful rise" in the world.

China will, as always, devote herself to promoting the human rights cause, actively carry out exchanges and cooperation with the international community according to the provisions of the Constitution of China and the need for modernization of the country, and make her contributions to promoting the healthy development of the international human rights cause.

This was the seventh white paper on China's human rights situation published by the State Council Information Office since 1991.

In the 12 years between 1990 and 2001, the United States had for 10 times instigated or tabled draft resolutions in the United Nations Commission on Human Rights in an attempt to censure China on its human rights records, but had ended in failure every time.

China strongly opposes the US move, which it views as an attempt to politicize the human rights issue and a typical exhibition of Washington's double standard. China insists that differences between the two countries in the human rights areas should be resolved through dialogue, not confrontation.

Facts and figuresn

China's gross domestic product (GDP) reached 11,669.4 billion yuan in 2003, rising 9.1 percent from 2002 and averaging more than 1,000 US dollars per capita for the first time;

-- 30.89 million computers in China were connected to the Internet, and the number of Internet subscribers stood at 79.5 million at the end of 2003, ranking China second in the world;

-- The size of the impoverished population without adequate food and clothing in rural China decreased from 250 million in 1978 to 29 million in 2003;

-- China effectively reduced the death rate of confirmed SARS patients on the Chinese mainland to 6.5 percent in 2003, lower than the world's average of 9 percent;

-- The Chinese government will invest 1.75 billion yuan on the prevention and treatment of AIDS in four years starting 2003; -- The average life expectancy of the Chinese people increased from 35 years before the founding of New China in 1949 to the present 71.4 years;

-- Over 90 percent of villages have set up bulletin boards giving timely reports to villagers of village, financial and administrative affairs concerning their interests;

-- Cases of extended detention involving 25,736 people were corrected in 2003, a clear-up of extended detention which was the most extensive in scope, the biggest in scale and the largest in number of people involved in the nation's judicial experience;

-- Chinese courts concluded the investigations of 10,337 administrative lawsuits in 2003, of which improper administrative actions were annulled, and handled 3,124 state compensation cases,where a compensation sum totaling 89.74 million yuan was ordered;

-- The total amount of reduced and exempted lawsuit fees was 141 million yuan, and that of delayed payment of lawsuit fees was 916 million yuan in 2003, as a result of reinforced legal aid;

-- 4.4 million people laid off from state-owned enterprises were re-employed last year;

-- The government spent 70 billion yuan in 2003, 19.9 percent more than the previous year, to ensure that the basic living allowances for laid-off employees from state-owned enterprises and pensions for retired employees from enterprises, the access to unemployment insurance, and the implementation of the scheme of a minimum standard of living for urban residents;

-- A total of over 24 billion yuan of overdue wages was paid torural migrant workers last year; -- From 2004, the rate of agricultural tax will be reduced yearly by more than one percentage point until it is canceled fiveyears later;

-- The national illiteracy rate among young and middle-aged people shrank to below 5 percent at the end of 2003;

-- The gross output value in areas in inhabited by the people of minority nationalities exceeded 1,100 billion yuan, an increaseof 11.1 percent over the previous year;

-- The number of special education schools for blind, deaf and mentally handicapped children has reached 1,655, and that of special education classes attached to ordinary schools is 3,154, with a total student body of 577,000 in both; and

-- Among the total religious publications issued on the Chinese mainland, the print run of the Bible alone reached 30 million.

http://english.peopledaily.com.cn/200403/30/eng20040330_138904.shtml

Official says China's development policy to be adjusted

Last updated at: (Beijing Time) Wednesday, March 24, 2004

Wang said, at a new stage of development, the old concept and policy for development putting all effort into solving food and clothing problem should be adjusted accordingly. The old development concept and policy rooted in the planned economy, needs to be adjusted. The problems that were not in conformity with the overall, coordinated and sustainable development are also required to be adapted to a new concept and policy.

According to Wang, China's policy for realizing the overall, coordinated and sustainable development can be summed up in the following five aspects:

1.Priority to be given to rural development and peasant's problems. Promote coordinated development in both rural and urban areas. Apply advanced technology to transform the agriculture and the entire rural economy. Realize the transfer of rural population to non-rural population by means of industrialization and urbanization. Put the rural economy in the track of unified socialist market economy by deepening reform.

2.Given the strategic goal for China's development to lay emphasis on helping the backward areas, the coordinated development for common prosperity can be achieved.

3.Emphasize resolving social problems and promoting harmonized development in society and economy. The priority is to expand employment; stress on developing labor-intensive industries; give support to small and medium sized enterprises; develop non-public sectors and apply more flexible employment methods.

4.Protect ecological environment and for resource conservation, so as to boost coordinated development of human and nature. Establish a resource conservation society and give priority to resources conservation.

5.Pay attention to harmonizing domestic and foreign markets; promote domestic development in the process of expanding foreign markets. China will seriously fulfill its commitments made at entry of the WTO to further open its domestic markets. China will actively engage in global and regional economic cooperation; develop bilateral and multilateral economic and trade ties, to realize mutual development.

By People's Daily Online

http://english.peopledaily.com.cn/200403/24/eng20040324_138372.shtml

China urgently needs changing economic growth pattern

Last updated at: (Beijing Time) Wednesday, March 24, 2004

China has though made great achievements in its economic and social developments universally acknowledged, yet it did not free itself from the pattern in which extensive economic growth was obtained out of "high input, high consumption, high exhaust, uncoordinated development, difficulty in recycling and low efficiency".

It is specially important and urgent for China to choose rational means for economic growth, said Ma Kai, Director of State Development and Reform Commission (SDRC) at the China Summit Forum on Development on Mar. 21.

According to Ma, over the 50-odd years since the founding of the People's Republic of China (PRC), China's Gross Domestic Product (GDP) increased by more than 10 times with an increase of 40-odd times in the consumption of mineral resources. Fixed asset investment rate remained a high level for long. As high as 500 million yuan of investment is required for an increase of 100 million yuan of GDP while during the sixth Five Year Period (1981-1985) and Seventh Five Year Period (1986-1990), one-yuan GDP increase could be realized by an investment of only two yuan.

High consumption of various kinds of resources went abreast with rapid economic growth. Last year China used about five billion tons of various domestic resources and imported resources. China's consumption of crude oil, coal, iron ore, steel, aluminum oxide and cement was about 7.4, 31, 30, 27, 25 and 40 percent of the world's total with a GDP increase only about 4 percent of the world's total. Growth at the cost of high consumption led to great exhaustion, serious pollution. China's drainage of sewage and disposal of solid waste have greatly exceeded that in eveloped countries. Marked problems are seen in China's economic structure caused by uncoordinated economic growth, making part of the growth ineffective. Irrationality exists in industrial structure, internal structure in industries, organizational structure of enterprises, product mix, technological structure, urban and rural structures, regional structure and layout of significant productivity, limiting the improvement of the quality of economic growth and overall efficiency.

By People's Daily Online

http://english.peopledaily.com.cn/200403/24/eng20040324_138353.shtml

Bulletin on 2003 Socioeconomic Development Released

China's gross domestic product (GDP) in 2003 grew 9.1 percent over the previous year, reaching 11.6694 trillion yuan (US$1.4 trillion), according to the annual statistical bulletin on the mainland's economic and social development.

The bulletin, provided by the National Statistics Bureau Thursday, shows the nation's general price level rose by 1.2 percent last year, and the registered unemployment rate in urban areas stood at 4.3 percent by the end of 2003, up 0.3 percentage points from the previous year.

Foreign trade surplus totaled US$25.5 billion in 2003, dropping by US$4.9 billion, and the foreign exchange reserve reached US$403.3 billion, up US$116.8 billion, the bulletin shows.

Total grain production dropped by 5.8 percent to 430.67 million tons in 2003, but the industrial value added rose by 12.6 percent to 5.3612 trillion yuan (US$647.7 billion), with rapid growth registered in the sectors of high technology, energy, raw materials and automobile manufacturing.

The high tech industry grew by 20.6 percent in terms of value added, while the production of optical telecommunications equipment, program-controlled switchboards, mobile phones and computers jumped between 25.9 percent and 120 percent.

The output of primary energy stood at an equivalent of 1.6 billion tons of standard coal, up 11 percent, with electricity up 15.5 percent to 1.91 trillion kwh, raw coal up 15 percent to 1.67 billion tons, and crude oil up 1.8 percent to 170 million tons.

The output of steel, rolled steel, ten kinds of nonferrous metals and cement increased by 21.9 percent, 25.3 percent, 19.1 percent and 18.9 percent, respectively; while automobile output jumped 36.7 percent to 4.44 million units, including 2.02 million sedan cars, soaring by 85 percent.

Industrial profits totaled 815.2 billion yuan (US$98.5 billion), up 42.7 percent, and the amount of industrial losses dropped by 1.9 percent, the bulletin says.

Total foreign trade last year reached US$851.2 billion, up37.1 percent, with export up 34.6 percent to US$438.4 billion, and import up 39.9 percent to US$412.8 billion.

China last year imported 91.12 million tons of crude oil, up 31.3 percent; 28.24 million tons of oil products, up 38.8 percent; and 37.17 million tons of rolled steel, up 51.8 percent.

Last year China approved the setting up of 41,081 enterprises funded with foreign capital, up 20.2 percent year on year. These enterprises involved a total contractual investment of US$115.1 billion, up 39 percent, with the amount of foreign investment actually used up 1.4 percent to US$53.5 billion.

The bulletin revealed a population of 1.29 billion by the end of 2003, increasing by 7.74 million over the year before. The year's birth rate stood at 12.41 per thousand and the mortality rate was 6.4 per thousand, leaving a natural growth rate of 6.01 per thousand.

The disposable income of urban residents increased by 9 percent and the net income of rural residents rose by 4.3 percent. The basic old-age insurance covered 154.9 million people, 7.53 million more than the previous year.

China lost 2.54 million hectares of farmland last year, and consumed 10.1 percent more energy resources than the previous year, figures show.

The bulletin also shows the severe shortage of water resources, the progress in mineral exploration, the enhancement of environmental protection and the huge losses caused by natural disasters in the country last year.

(Xinhua News Agency February 28, 2004)

http://www.china.com.cn/english/2004/Feb/88738.htm

RMB revaluation unhelpful to US unemployment: Greenspanast

updated at: (Beijing Time) Thursday, February 26, 2004

Revaluation of the Renminbi (RMB) will be of no help to America's unemployment problem, "economy steersman" Alan Greenspan said twice in a short period of two months.

Federal Reserve Chairman Alan Greenspan testified to the US Congress on February 11 that attempts to restrict Chinese commodities would offer no help to solving America's unemployment problem. This is his second remark on a China issue in two months, which served as a best dose of sobriety to those clamoring for RMB appreciation.

In the past two years America has been tormented by high unemployment rates, and job prospect remains gloomy despite the fact that many economic indexes have reached or surpassed anticipation. Employees in some sectors are under increasing pressure, and it's only natural that they bear a drudge against Chinese commodities flooding the American market and the move-out of American enterprises to China, thinking it's the Chinese who have taken away their "rice bowls" (jobs). Some experts and politicians also made a big fuss about the matter to serve their own needs, as if the problem of unemployment would be resolved as long as the RMB was revalued and China's exports were restrained. In response to these remarks, Greenspan pointed out clearly that this was not a question of China, but a basic issue of international competition. Greenspan's viewpoint is clear-cut-it is not China that caused the reduction of job opportunities, but the invisible hand of global competition.

According to the "standard calculations" of American economic research institutions, an end should have been put to this round of economic depression by November 2001. Since then the country's economy has begun to take an upturn from the slump. By the end of 2003, two years after the recovery, employment opportunities dropped by about 700,000. America witnessed a new economic phenomenon of an "unemployment-typed recovery", because many enterprises raised profits through digesting technology accumulation and the outward shift of production two years ago. The result was the slash of staff, especially staff in the manufacturing sector. In fact, in the competition of economic globalization, the rise in productivity has become an important factor deciding whether an economy can achieve sustainable development. It was against such a background that the American economy began to recover. Statistics are the best indicators--from 1995 to 2001, America's average annual growth of productivity was 2 percent, while that of the EU was only 1.3 percent. Along with the recovery, the country's productivity improved considerably to reach 4.8 percent in 2002.

For many years, the advantages of American enterprises lie in the fact that they have begun adjustment ahead of others, while one of the adjustment goals is to do more work with fewer hands. For some manufacturing enterprises this implies that they either move their plants to countries with lower labor cost, or to shift their work outward to cheaper laborers. China has become one of the destinations of the outward shift of the American manufacturing sector mainly because of its relatively low labor cost and fairly good investment environment. That's why Greenspan stressed that although RMB revaluation may cause a reduction in the export of Chinese textiles and other commodities, it would not boost America's textile production, because there is greater possibility for America to import textiles from other low-wage Asian countries to replace Chinese textiles.

Economic globalization actually is a process involving both gains and losses. Even the United States, the most powerful country in the world, has to pay a certain price, without which it is impossible for it to gain. From a historical prospective, containing others' development in order to retain one's own domain is both shortsighted and unattainable. As for the United States, it is said that half of the work names in today's America cannot be found in dictionaries published in the 1960s. As regards how to solve the unemployment problem, Greenspan once made the remark that elevating trade barriers would be of no help at all to solving this problem. Preventing foreign products from entering into America will only lower the utilization ratio of US capital and labor resources and cause an overall reduction in domestic living standards. To solve the unemployment problem arising from global competition, it is necessary to provide re-employment training for the jobless instead of setting up barriers.

The challenges America faces today are by no means unprecedented, said American economist Roach. Restructuring-related challenges were once posed to American farmers in the late 19th century, to "plants of sweat and blood" in the early 20th century, as well as to manufactures in the early 1980s. America now is faced with two options, one is to look back and yearn for everything which people once thought to be their own possessions; the other is to stick to the road of prosperity featuring innovations and openness. If those hoping to rely on RMB revaluation to solve unemployment could approach the question from such a height, then they would probably not "moan over things already lost", as Roach put it.

By People's Daily Online

http://english.peopledaily.com.cn/200402/26/eng20040226_135919.shtml

Zoellick stresses importance of trade with China

Last updated at: (Beijing Time) Friday, February 27, 2004

US Trade Representative Robert Zoellick on Wednesday stressed the importance of trade with China, saying Americans should not forget how the idea of the win-win nature of trade works.

In a speech to the Asian Society in New York, Zoellick said there is much at stake for both the United States and China, and the world, in how the two countries exercise power and responsibility.

"Just (when) the Chinese are learning the win-win nature of trade, Americans should not forget how the idea works," Zoellick said.

He said the United States needs the support of China to move the current round of the World Trade Organization (WTO) negotiations forward. "We need China to be a partner in trade leadership."

The current round of WTO negotiations stalled last September in Mexico when developing and developed countries failed to reach an agreement on agricultural subsidies.

Zoellick said China's market represents a great opportunity for the US economy, noting that US exports have dropped seven percent worldwide over the past three years while shipments to China have soared 75 percent.

"Many American workers have good-paying jobs because of US business with China. Many American consumers can stretch their hard-earned dollars further because of imports from China," he said. Zoellick said the United States has a lot to gain from more open trade borders with China and other countries, but China needs to step up reforms to ensure fair competition as it tries to modernize the world's most-populous economy.

http://english.peopledaily.com.cn/200402/27/eng20040227_136002.shtml

Premier Wen highlights scientific development concept

Last updated at: (Beijing Time) Sunday, February 22, 2004

The formation of the new scientific development concept is a major achievement the Communist Party of China (CPC) has made in its efforts to emancipate ideological work, seek truth from facts, keep pace with the changes of the time, and realize ideological innovation, said Premier Wen Jiabao Saturday in Beijing.

He called for firmly advocating and seriously implementing the scientific development concept, to push forward the great cause of socialism with Chinese characteristics in a more fruitful way.

Wen, who is a member of the Standing Committee of the CPC Central Committee Political Bureau, made the remarks Saturday at the conclusion of a high-level training course held at the Party School of the CPC Central Committee.

In his speech, Wen urged leading officials at all levels to guide their work in accordance with the scientific development concept, which has been developed on the basis of relevant theories of Mao Zedong, Deng Xiaoping and Jiang Zemin, heads of China's first, second and third generation leaderships, respectively.

According to the premier, the scientific development concept focuses on integrating humanism with overall, coordinated and sustainable economic and social development, while pushing forward the reform and development drive to coordinate development in both urban and rural areas and in different regions, achieve harmonious development between man and nature, coordinate domestic development and open up to the outside world.

He called for adherence to the principle of humanism, saying that humanism is the nature and kernel of the scientific development concept.

Vice President Zeng Qinghong attended the ceremony, which was presided over by Vice Premier Huang Ju. Both Zeng and Huang are members of the Standing Committee of the CPC Central Committee Political Bureau.

The training course started Monday, with the participation of a group of provincial- and ministerial-level officials.

People's Daily editorial on scientific concept of development

People's Daily issues an editorial Sunday calling on leading officials to take the lead in studying and implementing a new scientific concept of development, a new advance the Communist Party of China (CPC) has made in the ideological field.

The editorial hails the scientific concept of development as an important sublimation of the CPC in its understanding of the law of economic and social development, as well as a leap forward for the Party's concept of ruling. It is of great realistic importance and far-reaching historic significance, it says.

The new concept has a rich content, and touches the fields of economic, political, cultural and social development, the editorial says.

The new concept calls for people-centered development, which is comprehensive, coordinated and sustainable. It also stresses coordinated development between urban and rural areas, among different regions, between economic and social development, between the development of man and nature, and between domestic development and opening to the outside world.

By People's Daily Online

http://english.peopledaily.com.cn/200402/22/eng20040222_135467.shtml

Restriction on Chinese export no solution for US employment problem

Last updated at: (Beijing Time) Monday, February 16, 2004

It would do no good to solve the US employment problem by trying to impose a ban on Chinese export to the US, said Alan Greenspan, chairman of the Federal Reserve Board of the United States, while giving testimony to the Committee on Financial Services of US House of Representatives.

The US is faced with serious employment problems, said Greenspan in his answer to the questions raised by some congressmen. Yet he would in no way try to recommend a policy aiming at restricting the Chinese export to the US.

Some Americans claimed that the floating RMB exchange rate would help protect employment opportunity in the United States. Greenspan pointed out that the assertion of these people was based on the assumption that other countries wouldn't replace China in exporting goods to the United States. The fact is should China stop exporting goods to the US other countries would step into its shoes. From this viewpoint it wasn't China's problem. It was a cardinal problem of international competition.

By People's Daily Online

http://english.peopledaily.com.cn/200402/16/eng20040216_134901.shtml

China's economy starting a new upward cycle: Analysis

Last updated at: (Beijing Time) Friday, February 13, 2004

During the implementation of anti-cyclical macro-economic control policies between 1998-2001, the growth of China's GDP remained stable at 7-8 percent, exceeding 8 percent in 2002. In the first quarter of 2003, the growth was as high as 9.6 percent. In spite of the impact of SARS, the GDP growth in the first three quarters still kept at 8.5 percent.

Since 2002, China's GDP growth has been stabilizing at over 8 percent and the economic operation is in a fresh upward cycle. Meanwhile, investment has been brisk, price has started going up, and the index showing entrepreneurs' confidence has also increased. From January to September 2003, society's total fixed asset investment was 3 trillion yuan (US$362.8 billion), an increase of 30.5 percent over the previous year. The balance of the supply of broad money (M2) rose by 20.7 percent. Banking institutions' RMB loans increased by 2.47 trillion yuan (US$298.3 billion) compared with the beginning of the year, a rise of 1.12 trillion yuan (US$135.26 billion). Enterprises' profit obviously went up. The consumer price indexes (CPI) grew for 10 straight months, and a new round of consumption sprees has appeared, with cars, housing, tourism and telecommunication tools becoming hot consumption spots.

The far-reaching significance is that investment that relies on state treasury was reduced, and the amount raised by enterprises through foreign capital and domestic loans increased faster than budgeted funds. The growth shows that China has received tangible results from its six straight years of anti-cyclical operations, demonstrating that the government investment has propelled non-government investment, thus bringing China's entire economy into an independent developing channel. Therefore, we can say that China's macro-economic operation has passed through a low valley to a peak.

In addition, the rising domestic economy has been supported by the recovery of the world economy. A yellow book issued by the US Federal Reserve Board in late November last year says that the US economy has come out of its two-year long recession and is entering a prolonged and widespread recovering period. Japan and euro-zone countries have also got rid of their economic stagnation. The International Monetary Fund (IMF), Morgan Stanley and other world-known organs all gave an optimistic prediction for the world's economic situation in 2004.

Such a strong development situation does not come easily. It is the result of China's efforts to overcome difficulties brought about by years of relatively low economic growth and deflation and to carry out a series of economic control policies.

These major changes in the economic situation were followed by heated discussions on macro-economic issues in various circles. There are also suggestions on guarding against a new round of overheating since there is rapid increase in money supply and loans, repeated investment in real estate and other industries, and a fast growth in energy and grain prices. The consumer price index, however, is still negative. This indicates that overheated investment growth might lack corresponding consumer desire.

Such thinking is normal. Logically, when an economic cycle hits a peak, attention should be paid to preventing and controlling economic overheating. In such fields as steel and real estate, overheated investment does exist. But we cannot conclude from this that the national economy is overheated and that measures should be taken to deal with inflation. This is because we cannot judge China's national economy as "cold" or "hot" simply by data, or by comparison with other countries. We must take into account both China's economic features and current prominent contradictions and problems while making policy decisions for the next step. As the process of commercialization, industrialization and urbanization is being accelerated, and reform in various fields is deepened, various complicated problems have emerged and become interweaved. Some problems, such as those related to agriculture, rural areas and farmers, unemployment, stagnant consumption, social security, eco-environment, technological progress and industrial upgrading, can be solved only through development.

To improve and perfect macro-economic control policies, we should fully consider the following:

1. It takes a period of time for the national economy to reach its peak after passing a turning point, and during this time there is much development potential at stake. Countermeasures should be taken to deal with overheating and repeated construction prompted by government investment in some industries.

2. Development is an essential principle. In order to realize the modernization strategy, we must turn the potential for growth into real growth during the course of transforming the economic pattern from a planned to a market-oriented one and change the mode of growth from an extensive to an intensive one.

3. Priority should be given to the unemployment problem and social security, followed by alleviating inflation.

4. The process of market competition is one involving "repeated construction" and is one in which the fittest survives.

At present, repeated construction mainly involves private enterprises, which, in a sense, is dominated by the market economy. Emphasis should be placed on opposing repeated construction under government operations. Furthermore, China's current investment mainly goes to the heavy chemical industry and, as it needs huge amounts of capital and a long period between input and output, we cannot expect an immediate consumer price index response.

The current favorable economic situation provides conditions for relatively rapid development in the year 2004. So, we must continuously implement sound fiscal policy under the principle of expanding domestic demand and prudent monetary policy, so as to accelerate economic development.

Attention must also be paid to taking preventive measures against the next round of inflation pressure, intensifying economic analysis and forecasting, and coping with overheating issues and outstanding structural problems. Readjustment and improvement should be made in following policies:

--Rationally adjusting the strength and emphasis of proactive fiscal policies, with emphasis laid on appropriately reducing long-term treasury bonds, mainly using government loans in extended projects and in final-phase projects, increasing input in agricultural and public health infrastructure facilities, as well as in public projects relating to ecological protection, and supporting key projects for western development and the transformation of old industrial bases. Meanwhile, effective measures must be taken to optimize project decision-making, to strengthen supervision and management, and efficiently utilize funds raised from issuing treasury bonds.

--Improving the coordination of fiscal and monetary policies, and enhancing control over all financial matters.

--Bringing the role of the policy-oriented banking system into full play, straightening the relationship between policy banks and credit insurance organs on the one hand and financial departments and commercial banking systems on the other, bringing the regulatory role of discount, low-interest loans and credit guarantee into full play, and actively exploring and propelling BOT (build, operate and transfer) and other new ways to guide and use non-governmental capital in public investment fields.

--Promoting a new round of taxation reform merging the income tax of domestic and foreign-funded enterprises in due course, realizing changes in VAT and putting into practice structural tax reduction measures and other policy measures.

--Further expanding domestic demand through efforts to improve consumption stimulating policies, public services, administrative efficiency and the investment environment.

--Deepening reform, advancing system innovation and developing the fundamental role of market mechanisms, so as to form a solid system base for long-term economic growth.

Source: Beijing Review Feb. 11, 2004

http://english.peopledaily.com.cn/200402/13/eng20040213_134800.shtml

9.1% surge epitomizes sound growth of economy

www.chinaview.cn 2004-01-20 21:42:09

BEIJING, January 20 (Xinhuanet) -- China's economic growth reached a seven-year high at 9.1 percent in 2003, a rate the top Chinese top statistician referred to as a milestone since the growth rate, he noted, is much higher than estimated by many international analysts at the end of last year.

Li Deshui, head of the Chinese National Bureau of Statistics (NBS), said here Tuesday that China had overcome the impact of the Asian financial crisis thanks to the substantial measures it had taken to fight both inflation and deflation over the past decade.

In fact, the surge of industrial output turned out to be the major driving force behind the rapid economic growth. NBS figures showed the value turned out by the industrial sector last year accounted for 71.6 percent of the gross domestic product (GDP), contributing 6.5 percentage points to the 9.1-percent overall economic growth.

NBS spokesman Yao Jingyuan acknowledged that heavy industry hadtaken the lead in industrial growth, signifying the start of a comprehensive upgrading of the economy. This meant the Chinese economy was on a new stage of development.

On the demand side, a 26.7-percent surge in capital investment constituted one of the main factors for the record economic growth.As retail demand remained stable and export growth reached a new high of 37 percent, the economy registered a strong performance last year.

Li said the economy had entered a new era of growth as the per capita GDP topped 1,090 US dollars in 2003. The rise of consumer demand would greatly spur the expansion of such industries as high-tech manufacturing and electronics, automobiles, housing and services.

Official statistics show China's car output amounted to over 2.07 million cars last year, up 80.7 percent over the previous year.A total of 112 million people subscribed to new telephone lines, equal to the populations of Britain and France combined. China had532 million telephone subscribers by the end of 2003, more than the population in any other country worldwide except India.

The government had done well in 2003, in terms of the international recognized policy goals, namely economic growth, inflation, employment and external balance.

China's consumer price index was 1.2 percent for the year. Newly created jobs in urban areas totaled 8.5 million, exceeding the envisioned annual target of 8 million. Meanwhile, the country managed to retain a slight trade surplus and increased its foreignexchange reserves to 403.3 billion US dollars.

However, Li noted, the economy had seen overheating in some sectors and areas of the country, a problem which should merit attention.

Yao said structural problems were still around in the economy as service industry accounted merely for 32 percent of GDP. There were repetitive construction in industrial sectors such as steel, automobiles, cement and electrolytic aluminum. The steel sector needed restructuring, and China, one of the world's top steel manufacturers, had to import about 30 million tons of steel yearlydue to lack of production capacity of upper-end products.

Yao further noted that the gap in income growth between urbanites and rural residents widened last year. The disposable per-capita income of urban residents grew 9.3 percent in 2003, five percentage points faster than that of rural residents.

The vigor of small and medium-sized enterprises (SMEs) was yet to develop, he said. Official figures showed the output of large enterprises rose by 17 percent last year, higher than that of SMEs.

To tackle these problems, the government had decided to invest more in developing infrastructure in rural areas and raising the incomes of farmers. Official sources said some industrial sectors had developed plans to curb blind investment in repetitive capacity.

China would pursue inclusive, balanced and sustainable development, instead of seeking growth at any cost, Li said, predicting its economic growth rate this year would be lower than in 2003. However, he voiced his confidence that the economy would possibly grow more than seven percent. Enditem

http://news.xinhuanet.com/english/2004-01/20/content_1285767.htm

  GDP no longer sole index of China's growth

Experts believe that China will focus on the quality rather than the speed of the economic development next year, in a move to balance the country's economic growth and social progress. GDP (gross domestic product) will no longer be the major index to decide local officials' career and promotion prospects. Instead, the employment and social welfare services will also be taken into consideration in judging officials' achievements, said Gao Huiqing, division chief of the department of strategy & development with the State Information Centre. Gao told China Business Weekly last week that the country's social development lags far behind economic growth, which is reflected in the increasing unemployment. This year the unemployment rate is 4.2 per cent, and the percentage is expected to grow to 4.7 per cent next year, according to the National Bureau of Statistics (NBS). Some experts believe the real situation is even worse, especially in the vast rural areas. China still has more than 100 million surplus workers, although 100 million rural people have been flowing into cities to work since the 1980s. Lu Xueyi, chairman of the Chinese Sociological Association, said the economic structure has been upgraded by the high-speed economic boom, but that the social structure has not followed suit. In 2001, about 15.5 per cent of China's GDP came from agriculture, another 51.1 per cent was turned out by industry and construction, and 33.7 per cent was produced by the service sector. The GDP distribution indicates China has entered the middle stage of industrialization, in which industry produces the major part of the GDP, according to Lu. By contrast, the employment structure, one of the indices of social progress, lags far behind. In the same year, 50 per cent of the labour force was in agriculture, 22.3 per cent was in industry and construction, and 27.7 per cent in services. To have half of the labour force engaged in agriculture is typical employment structure for the initial stage of industrialization, Lu said. Township enterprises, which came into being in 1985, have helped to offer many job opportunities to rural people. However, the development of such businesses slowed down after the country started offering more preferential policies to encourage the development of cities, Gao said. Rural towns The central government should not neglect the development of rural towns while they are boosting the development of cities, he said. "Great efforts need to be taken to shift the surplus rural labour forces to secondary and tertiary industries," Gao suggested. The problem of the increasingly large income gap also needs to be solved if the economy is to grow in a healthy way. The income gap among Chinese urbanites continued to widen in this year's first nine months. The Gini coefficient - an international measurement of income disparity - hit 0.4, almost reaching the danger level. The NBS indicates the ratio between salaries of high-income and low-income groups rose to 5.4:1 at the end of September from 5.2:1 last year. In some poverty-stricken areas, the rate may hit 8:1, said Zhao Renwei, director of the economic research institute with the Chinese Academy of Social Sciences. The rate is usually under 2:1 in many developed and even developing countries, Zhao said. "The pressure of fees and taxes is still too heavy on rural people, although the country has already taken measures to reduce rural tax burdens." Zhao said as long as the income of rural residents is not enough to support their purchasing power, domestic demand cannot be stimulated, hence the sluggish growth in industry and services. Government departments are still overstaffed in many counties and towns. Peasants have to support not only local officials, but also all kinds of public facilities, including educational institutions, according to Zhao. He pointed out the central government has to deliver more funds to rural areas. "The redistribution is essential to balance the development of the economy and society," said Zhao. To narrow the income gap between cities and towns, Zhao suggested reinforcing the existing progressive taxation, in which the government sets a base income level, and the tax rate for income exceeding that level increases according to the amount. It can also be applied to tax on bank deposits, as the deposits of high income groups were 51 times more than those of low income groups last year. "If rural people were counted in, the disparity would be even greater," said Zhao. He also pointed out that social welfare services, such as healthcare and education, need to be completed to guarantee the basic living standard of low-income people. (Business Weekly)

http://english.peopledaily.com.cn/200312/20/eng20031220_130853.shtml

China's peripheral diplomacy carries a heavy weight

"China is building up a brand-new reputation among its neighbors", this was the comment made in an article carried in the US Washington Post November 15. For a period of time, appraisals of China being a big country which is creating a new diplomatic image and undertaking regional responsibility have been lingering in people's ears. An important article entitled "China's New Diplomacy", appeared in a new issue of US Diplomacy magazine, commented that in recent years, China's diplomacy, from the policy-making mechanism to the process of operation, has, without exception, been heading toward maturity, rationality and flexibility. The world seems to have suddenly discovered a "different China", but in the eyes of Chinese diplomatic personages, that is because some Westerners do not understand China. As early as the 1950s, Premier Zhou Enlai stated the need to "stabilize neighbors on four sides", this principle has run through the course of New China's diplomacy. From 1989 when China first determined its diplomatic principle of "basing ourselves on Asia and the Pacific, and stabilizing our surrounding areas", to 2001 when the 16th CPC National Congress more clearly put forward the guideline of "being friendly with our neighbors and taking our neighbors as partners", China's policy of good neighborliness and friendship has been continuing on. Chinese and foreigners now have reached a consensus: China's current surrounding environment is historically the best, China's important position in regional affairs has gained increasing recognition. China is changing, so is world view on ChinaA Bangkok-based investigation center recently conducted a survey about "who is the closest friend in the eyes of the Thai people?" The result shows that 76 percent Thais agreed that it is China, less than 8 percent chose Japan and only 9 percent chose the United States, the long-term military ally of Thailand. In sharp contrast to this, in 1973 when the Chinese Table Tennis Delegation, as the first Chinese delegation visiting Thailand, arrived in Bangkok, the hotel cut off the telephone line of their rooms, this clearly shows their strict precaution and vigilance against the Chinese. Cheng Ruisheng, former Chinese ambassador to Myanmar and India, was then the diplomat with the delegation, he undertook the mission of opening up China's relations with the ASEAN countries. Now 30 years have passed, how good is the relationship between the two countries-even our embassy doesn't know how many delegations come to Thailand on visits and talks everyday," said Cheng Ruisheng. China's geographical environment determines that China must put huge amounts of diplomatic resources into its neighboring relationships, China's rise can't be achieved as can the United States which develops and grows in strength quietly in a relatively isolated and tranquil environment. China has a dozen or so terrestrial neighbors, big and small, due to historical reasons, China had boundary questions with almost each of its neighboring countries; at the same time on the sea, there exist many disputes over islands and territorial waters. Territorial contradictions have long impeded improvements in China's relations with its neighbors, which even evolved into three armed conflicts between China and India, China and the Soviet Union and China and Vietnam respectively in 1962, 1969 and 1979. Today, under the principle of "putting aside disputes", China has not only maintained good cooperative relations with neighboring countries, but also is advancing step by step the solutions of boundary issues. In 1999 China signed with Vietnam the "Terrestrial Boundary Treaty" and in the following year signed the agreement on continental shelf demarcation in the Beibu Gulf; section boundary between China and Russia was also determined in legal forms by reaching unanimity through consultations; in 2002 China and ASEAN countries together signed the "Action Declaration of Various Sides of the South China Sea" on Nansha Islands; this year, China has formally acceded to the "Southeast Asia Amity and Cooperation Treaty" pertinent to politics and security; boundary negotiation between China and India was also conducted at high specifications. According to Cheng Ruisheng, this demonstrates that China has gradually discarded the emotional policy-making method and its diplomacy has become increasingly pragmatic. In the opinion of Qu Xing, vice-president of Foreign Affairs Institute, besides the geographical factor, the background of the Cold War era has for a long time restrained China's relations with its neighboring countries. "Due to the existence of the factor of the involvement of big countries, problems are prone to become intensified and difficult to handle," said Qu Xing, adding that "for instance, the Sino-Indian boundary conflict in 1962 was originally a pure territorial dispute, but due to US and Soviet considerations of the Sino-Indian boundary were mixed with many Cold War factors: Sino-Soviet relationship at that time was already delicate, the Soviet Union supported the Nehru administration's containment of China from the southern part, while the United States had all along imposed blockade on China, as a result, conflicts between China and India were no longer pure boundary disputes. Military conflicts with the Soviet Union and with Vietnam also had very strong Cold War backdrops." In the eyes of Qu Xing, improvement in the diplomatic environment not only means that China's foreign policy has undergone tremendous change, but also because the international environment has differed greatly from what it was before. Therefore, the results achieved in diplomacy characterized by "putting aside disputes" are varied in different historical periods. Although China and India have so far been unable to completely solved the boundary issue, now both sides have come to realized that the aspect of contradiction should not be placed at the heart of bilateral relations and that economic and trade relations and personnel contact between the two countries should not be suspended simply because of the existence of disputes; both sides should further push improvement in relations between the two countries with utter sincerity. Trade between China and India this year is expected to exceed the historic figure of US$7 billion, the two big countries are now the commonly rising partners. China's diplomacy becomes increasingly pragmaticWhile reviewing the diplomatic practice since the founding of New China, a high-ranking official with the Foreign Ministry once said that in the 1950s China "leaned to the one side" of the Soviet Union, in the 60s China fought against "imperialists, revisionists and reactionaries" together, and in the 70s it united with the United States in opposition to the Soviet Union?. These might be the necessary choice at that time, in fact, it was not the best choice. Only after we gradually pursued an independent foreign policy in the 80s that China's diplomacy has been heading toward maturity. Calmness and rationality are indicative of the maturation of China's policies. In the past special domestic and international environments, China's diplomacy was prone to experiencing ups and downs, which Qu Xing dubbed "vicious interaction": Due to pressure put by external big countries on China, our country was forced to make strong rebound, leading domestic emotions to the extreme, and such diplomatic posture made it easier to cause doubts in neighboring countries. During the Cold War period, there existed struggles between the two camps in Southeast Asia: The United States supported pro-American regimes, China, in order to reduce surrounding pressure, naturally also supported some anti-US forces, this also caused the governments of some countries to regard China as a threat. At present, the vicious interaction has turned into virtuous interaction. First of all, the regional tense situation has gotten relaxed, other big countries have changed from previous direct military involvement into more inclination to cooperation and consultation; at the same time, with the enhancement of China's strength and the expansion of its influence, domestic ideology is developing healthily along with the opening-up efforts, people become more self-confident, thus cultivating a kind of gentle and credible image. China adopts a realistic attitude on questions that may generate conflicts. For instance, in 2002 China signed with ASEAN countries the "Action Declaration of Various Sides of the Nanhai Sea", which provides a mechanistic guarantee for peace and stability in the region. During the Asian financial crisis in 1997, China kept the RMB from devaluation at the cost of its own interests and provided a considerable amount of aid to countries impacted during the financial crisis, this made the surrounding countries and regions feel the key role China has played in the regional stability and development. More and more countries have come to realize that China is a not a menace to security, nor a competitor in economy, with its actual deeds China has promoted stability in the region, and China's economic development is becoming a boost to the prosperity of the entire region. Sitting at the back of East Asia, China has undoubtedly increased its weight in the game played by big countriesTalking about changes in China's diplomacy, there are several different understandings: One kind is that at the end of the 1970s, China established the strategy which takes economic construction as the central task and makes diplomacy serve economic construction, the color of China's diplomatic ideology is gradually fading away, while peace and cooperation become the leading factors; the second kind is that after the Cold War, China has thrown away the old way of thinking, has actively sought to participate in international mechanisms and join international organizations, diplomatic work has become more calm and pragmatic; the third kind is that the starting-point of the current new situation is fixed in 1999 at the end of last century, thinking that after suffering certain setbacks in big power diplomacy, China has come to realize more clearly that the East Asian region is the rising strategic focus, thereby giving an all-round impetus to the establishment of different forms of partnerships with neighboring countries, the 16th CPC National Congress more explicitly designated the guideline of "being friendly with neighbors and taking neighbors as partners" as the strategic focus. Prof. Niu Jun with the School of International Relations under Peking University holds that after the Cold War, the core issue concerning China's diplomacy has always been a matter concerning relationship with the United States. China has clearly realized only in recent years that to maintain good ties with Washington, China needs such a supporting point as East Asia. Practice has proved that East Asian countries side China on many issues. Sitting at the back of East Asia, China has doubtlessly increased its weight in the game played by big countries. "In East Asia, what China needs is cooperation among big countries, not confrontation," said Qu Xing. In his opinion, this depends mainly on whether the United States can give up its Cold War mentality. Realists invariably put undue faith in strength, thinking that a nation, once got developed, will surely constitute a threat. "That's why the United States invariably stops others from developing and, instead, allow them to be ordered about, so as to guarantee its own superiority, but this is hard to achieve, if it does not change its mindset, then, what the United States wants to confront will not be only a China." Amid the praises of "China's rise" and "China creates new image", we invariable hear an expression of anxiety, particularly worries coming from the United States, holding that due to US increasingly serious unilateralist tendency after the "September 11" attack in 2001, China has acted more and more to replace the United States in the Asian region and become the leader enjoying popular support and will eventually squeeze America out of the Asia-Pacific region. Qu Xing said, "That is a senseless idea. First, China does not have this strength and influence, now various countries have the capability to independently decide their own policies, China never has the intention to lead other countries; second, China does not plan to elbow America out of the Asia-Pacific region. China is happy to see that the United States plays a constructive and active role in Asia and the Pacific.

The above article on Page 7 of the Global Times, December 12 was written by the newspaper's correspondent Song Nianshen and translated by a PD Online staff member

China doubters could be wrong: Expert

Last updated at: (Beijing Time) Wednesday, December 31, 2003

Editor's Note: After 20 years of rapid growth, China's economy remains one of the most vigorous and robust economies in the world. The strong rise has not only benefited China by transforming the country from a poor country into a regional power; but has also brought dynamic economic development to the region as a whole by turning China into one of the most attractive destinations for exports produced by neighbouring economies. On a different tack than other analysts, with their cool and cautious projections for the world's economy in 2004, Stephen Roach, chief economist with Morgan Stanley, believes that China will continue to see robust development in the coming new year. Follow the details of his argument below.

The world has discovered China. And with good reason: I continue to believe that China is the greatest economic development story of the 21st century.

But no economy is perfect. There are often bumps on the road to prosperity - some minor and some serious - that pose important challenges to any growth strategy. China is no exception, and in fact is facing just such a challenge today.

The Chinese authorities are in the process of tempering some of the economy's recent excesses. This suggests that the next China growth surprise is likely to be on the downside, a development that could have important implications for the global economy and world financial markets.

There are two ingredients to the China slowdown story: a credit bubble and inflation. Beginning in late 2002, Chinese bank lending accelerated dramatically; in the 12 months ending November 2003, the outstanding volume of total loans was up 21.4 per cent - nearly double the average gains of 11.9 per cent over the period from 1997 to 2002.

It quickly became evident that the acceleration was concentrated in the four State banks, whose primary focus is to provide funding for China's vast network of State-owned enterprises (SOEs).

Unfortunately, this segment of the Chinese economy is still the shakiest. With excess lending flowing into SOEs, there was a growing risk of a new wave of non-performing bank loans, very much at odds with the basic thrust of Chinese financial-sector reforms. At the same time, there was mounting evidence of a real estate bubble, especially in the Shanghai area, but also in other pockets of the relatively wealthy coastal region.

This, too, appears to have been largely a by-product of excessive bank lending that was funding increasingly speculative property development projects.

There have also been indications of excess spending on infrastructure.

Meanwhile, there has been an important shift in the Chinese inflation dynamic: After 15 months of deflation, China moved back into positive inflation territory at the start of 2003.

And slowly but surely, the rate of inflation has begun to accelerate.

The just-released inflation report for November 2003 is worrisome - a 3.0 per cent year-on-year increase, which represents the sharpest rise in nearly seven years.

The mix of Chinese inflation is important, but not for the reasons we stress in the industrial world.

The recent surge is concentrated in food prices, where annualized inflation is now running at an 8.1 per cent rate.

Weather-related or not, this is a big deal in a nation where about two-thirds of the population still lives in poverty. Unlike the West, where we strip out food in an effort to come up with "core" inflation, the Chinese have no such luxury. At the same time, there are indications of price acceleration elsewhere in the Chinese economy - especially for consumer essentials such as utilities (4.6 per cent), medical care (8.1 per cent), and education (3.9 per cent).

The same can be said of the property sector, where inflation in housing rents hit 3.7 per cent in November; this fits all too well with sharply rising prices in many construction materials such as steel and cement - a development that has caught the attention of China's central bank.

Has the Chinese economy overheated? The answer is no - at least, not at the present moment.

But it certainly could if the authorities stood by and did nothing. Precisely for that reason, China's central bank has taken preemptive action to stem the excesses of this credit-induced inflation. As announced in late August and implemented in late September, the People's Bank of China raised reserve requirements on bank deposits from 6 per cent to 7 per cent.

This action has since been followed by an early December reduction in interest rates paid on excess reserves - more of a technical regulatory adjustment than a reversal of the earlier tightening. Notwithstanding these policy moves, it should be stressed that China does not yet have a robust instrument-based monetary transmission mechanism as we know it in the West. In this still centrally controlled economy, banks - especially the four dominant State-owned institutions - take their cue more from the rhetoric of policy pronouncements. Largely for that reason, the medicine appears to be working. Bank loan growth averaged just 80 billion yuan (US$9.66 billion) in October and November, down sharply from average monthly gains of 275 billion yuan (US$33.13 billion) in the first three quarters of this year.

This turn in the Chinese credit cycle could have important global implications. The rest of Asia is especially vulnerable to a China slowdown. That's because Chinese imports have become an important source of external demand elsewhere in the region.

In the first nine months of 2003, China accounted for 66 per cent of Japan's total export growth; for South Korea the figure was 40 per cent and for China's Taiwan, an astonishing 97 per cent.

For the smaller and more diversified ASEAN (Association of Southeast Asian Nations) economies, China's share of this year's export growth is in the 20-30 per cent range.

Nor is Asia alone in drawing sustenance from Chinese demand.

China accounted for fully 56 per cent of Germany's total export growth in the first eight months of 2003 and 21 per cent of that in the United States. Should China's economy now slow down, as we suspect, the rest of Asia, along with Europe and the United States, will suffer collateral damage.

Interestingly enough, early warning signs of a slowing in Chinese import demand are now evident: The November trade statistics revealed a sharp deceleration of import growth to 28.4 per cent year-on-year - still vigorous, to be sure, but well below the 40 per cent pace over the first 10 months of the year.

This could be the first hard indication of the coming slowdown in Chinese domestic demand. With China now qualifying as an important engine of growth in a still-sluggish world, a slowdown in the Chinese economy underscores the risk of a global growth disappointment in the first half of 2004.

As is all too often the case with respect to China, the West just doesn't get it.

Missing from the world's assessment of China, in my view, is the perspective from the inside - the overarching imperative for China to stay the course of reforms without disturbing social stability. Reforms in China are proceeding at a pace that is almost impossible to fathom from outside.

Critical to this process is the unrelenting restructuring of China's vast network of SOEs, resulting in the annual elimination of 7 to 9 million State-funded jobs.

China's reforms are all about creating a market-based alternative to its antiquated SOE sector, and are sustaining a vigorous growth climate that is capable of absorbing the concomitant increase in displaced workers.

Given this, China cannot afford a "growth accident" that might destabilize this process. The bigger the Chinese economy gets and the further it goes down the road to reform, the more severe the consequences of any growth accident, or upset. To the extent that recent developments on the credit and inflation fronts raise the risks of a hard landing, there is great incentive for Chinese authorities to take preemptive action to engineer a soft landing. And that's exactly what they have done.

True to form, the Western consensus is likely to go from one extreme to another in assessing the prospects for the Chinese economy, with euphoria over the boom quickly giving way to fears of the coming bust.

None other than US Fed Chairman Alan Greenspan recently warned of the latter possibility in voicing concerns over China's currency peg - stressing the risk of recession that stems from defending a currency regime through excessive domestic liquidity creation. Greenspan's view only adds to the growing chorus in the West calling on China to revalue the renminbi currency. The arguments in most cases are thinly veiled efforts to get China to temper pressures that are building elsewhere in the world. Japan and Europe want China to share the burden of the dollar's inevitable adjustment, a stance that I would argue is steeped in hypocrisy: Two of the wealthiest regions of the world that remain reluctant to reform are demanding assistance from a poor nation that has been aggressive in embracing reforms.

And, of course, there's the political angle, increasingly shaped by a bipartisan coalition of protectionist US politicians who are eager to see China cave on the currency issue.

A soft landing is likely. In the perception of the West, a hard landing in China is always the risk. Yet time and again, China has proved the doubters wrong. That was the case during the 1997 Asian financial crisis, when worries about a Chinese currency devaluation were rampant.

China was also feared to be at great risk in the recession of 2001.

And similar concerns are being voiced today. Yet China is dealing with its growth excesses on its own terms - not on terms that would be politically expedient for the West. A currency-driven solution works best in a market-based economy.

For a command economy like China's, credit allocation is far more effective in helping set the stage for a soft landing.

While this juncture could prove to be an important test for China's new leadership, it is a test that I believe will be managed successfully.

I wish I could say the same for the rest of the world. (China Business Weekly)

http://english.peopledaily.com.cn/200312/31/eng20031231_131636.shtml

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