VOL. XXIV No. 9 September 2012 Rs. 10.00

Located in southwest Anshun, Guizhou Province, Huangguoshu Waterfall is the largest and most magnificent group of waterfalls in China. With splendid scenery, the waterfall was included in the Guinness Book of World Records as the world’s largest waterfall group in 1999. It is 77.8 meters high and 101 meters wide, with 17 smaller waterfalls. As the roaring water runs down through the rocks, it sends up myriad of sprays, which glitter like rainbows in the sunlight. Huangguoshu Waterfall Festival is celebrated every year. It kicked off on September 21, 2012. Chinese State Councilor and Defense Minister Liang Guanglie Wang Gang, a member of the Political Bureau of the CPC met with Indian Prime Minister Manmohan Singh in New Delhi Central Committee, also Vice Chairman of the Chinese People’s on September 4, 2012. Political Consultative Conference National Committee, met with a delegation led by Sharad Yadav, President of Janata Dal (United) in Beijing on September 14, 2012.

Li Wuwei, Vice Chairman of the CPPCC met with Pawan Kumar Chinese Embassy in India and China National Tourism Bansal, Union Minister of Parliamentary Affairs in New Delhi Administration (CNTA) co-organized “Know More of on September 20, 2012. China—China Happy & Healthy Tour 2012” in DLF Promenade, Vasant Kunj on September 22 and 23, 2012. Ambassador Zhang Yan, Mr. Zhu Shanzhong, Vice Chairman of CNTA, and Anand Kumar, Joint Secretary of Ministry of Tourism, Government of India lit the lamp at the opening ceremony.

Chinese Ambassador Zhang Yan held a press briefing on the On August 17, 2012, Chinese Ambassador Zhang Yan awarded Issue of Diaoyu Islands On September 17, 2012. He ‘Huawei Maitree Scholarship’ certificates and scholarships to comprehensively expounded to the Indian media on China’s ten students from various parts of India who now have the solemn position on the Diaoyu Islands and China’s series of opportunity to pursue higher studies in prestigious measures to safeguard the sovereignty and territorial universities in China. integrity. NEWS FROM CHINA /SEPTEMBER 2012 3

CONTENTS

I. China-India Relations

1. State Councillor and Defence Minister Liang Guanglie’s Written Interview with The Hindu and The Navbharat Times 4 2. Chinese, Indian Defense Ministers Reach Many Consensus in New Delhi 7 3. China, India Make Efforts to Build Military Trust 8 4. Chinese State Councilor and Defence Minister Says Asia Tour Fruitful 9 5. Chinese Commerce Minister Meets India’s Commerce Minister in New Delhi 10 6. Seminar on China-India Relations Co-organized by Chinese Embassy in India and Institute of Chinese Studies 11 7. Indian Students from Springdales School Visit China 12

II. External Affairs

1. President Hu Jintao Attends APEC CEO Summit and Delivers a Keynote Speech 13 2. Hu Jintao Attends the 20th APEC Economic Leaders’ Meeting and Delivers an Important Speech 15 3. President Hu Jintao Attends and Addresses the Second Session of the 20th APEC Economic Leaders’ Meeting 16 4. Hu’s APEC Attendance Helps Boost Integrity, Innovation, Development, Prosperity: FM 17 5. APEC Summit Wraps up With Joint Commitment on Development 20 6. 2012 China-Eurasia Expo Opens in Urumqi 22 7. Towards a Brighter Future of the Chinese Economy 23 8. China Urges U.S. to Work for Peace in South China Sea 29

III. The Issue of Diaoyu Islands

1. China’s Postion on Diaoyu Islands 29 2. Statement of the Ministry of Foreign Affairs of the People’s Republic of China 33 3. Diaoyu Islands Baseline Announcement Significant: Chinese Diplomat 34 4. Chinese Surveillance Ships Start Patrol Around Diaoyu Islands 36 5. Chinese Ambassador Zhang Yan Briefs Indian Media on the Issue of Diaoyu Islands 36 6. Small Islands, Big Stakes 37 7. Dangerous Games in Northeast Asia 38

IV. Domestic Affairs

1. China Paves Way for Leadership Reshuffle 41 2. FACTBOX: China’s Economic Development Since 2002 43 3. Premier Wen Stresses Development, Stability for Xinjiang 45 4. New Materials Buzz Pushes China’s Economic Restructuring 46 5. Enhanced Precision 47

V. Tibet Today

1. A Tibetan Mother in Inland 50 2. China Extends Free Education in Tibet to Preschool 51 3. Tibetan Children to Receive Free Heart Surgery 52 4. Tibet to Receive 10 Million Tourists This Year 52 5. Tibet Needs Both Culture and Development 53 6. A Journey Along the Tibetan Border in March 54 4 NEWS FROM CHINA /SEPTEMBER 2012

I. CHINA-INDIA RELATIONS

State Councillor and Defence Minister Liang Guanglie’s Written Interview with The Hindu and The Navbharat Times

1. On his visit and China- India military-to-military relations At the invitation of Mr. A. K. Antony, Defence Minister of the Republic of India, I am leading a delegation to pay an official goodwill visit to India. The purpose of my visit is to implement the important consensus reached by the state leaders of China and India on the further development of our bilateral relations, and to enhance strategic mutual trust and promote exchanges and cooperation between the two armed forces, on the occasion of the Year of China-India Friendship cooperation on high-level visits and exchange of and Cooperation, so as to make our due other delegations, strategic and security contributions to the development of the strategic consultation, joint training exercises, personnel and cooperative partnership for peace and training, friendly interaction of border troops, prosperity between the two countries. I look intercollegiate exchange as well as exchange in forward to in-depth exchange of views with the other specialized fields. However, it should also leaders of the Indian government and military on be admitted that compared with the status-quo the relations between our two countries and two and broad development aspect of our state-to-state militaries, and on other issues of common interest. relations, the current exchange and cooperation China and India are neighbours with each between our two militaries still have a big space other. The friendly exchanges between the two for further improvement. We hope both sides can peoples can be traced back to long time ago. In consider the development of our military-to- recent years, with the joint efforts of both sides, military relations within the overall interest of our the China-India Strategic and Cooperative bilateral relations, strengthen communication and Partnership for Peace and Prosperity has enjoyed exchange, foster a closer military-to-military sound and stable development. The military-to- relationship, and making it a positive factor in our military relations between China and India have, state-to-state relations. The Chinese side always in general, kept moving forward, with positive holds an active attitude towards promoting achievements. The two sides have carried out exchange and cooperation between our two armed NEWS FROM CHINA /SEPTEMBER 2012 5

forces, and is willing to work together with the different levels, actively conduct border meetings Indian side, to promote healthy and stable and talks, as well as joint celebration of festivals development of our mil-to-mil relations. between the border troops of both sides, so as to deepen understanding and promote friendship. At 2. Can we now expect the resumption of army the same time, both sides need to strictly abide by to army HAND IN HAND exercise between the relevant agreements signed between the two Indian and Chinese army? countries, restrict its own border troop personnel, coordinate and handle various cases through In December 2007 and December 2008 diplomatic means and border meetings and talks, respectively, China and India held the “Hand-in- and not to unilaterally expand area of activities hand 2007” and “Hand-in-hand 2008” joint and military deployment along the Line of Actual training exercises in Kunming, China and Belgaum, Control, so as to jointly maintain a stable situation India. These two joint training exercises between in the border areas. the two armies are important achievements in the development of our mil-to-mil relations in recent 4. The need for the navies of India and China years, and successful trials in expanding and to work together on the high seas is great, deepening the practical cooperation between the especially as the PLA Navy involves itself in two armed forces. The Chinese side holds a positive anti-piracy missions in the Indian Ocean Region attitude towards continuing joint training exercises and as India increases its naval presence in East with the Indian side, and is willing to expand Asia. India and China have never had full- cooperation in this area. fledged naval exercises. Are there plans to increase exchanges to build more trust between 3. On China-India border issue the navies? The border issue in the China-India relations As a matter of fact, the navies of China and is an issue left over from history. It is also an issue India have already carried out good cooperation. at the political and diplomatic level between the Since 2003, the two sides have conducted several two sides. The Chinese side is willing to push joint maritime search and rescue exercises. Since forward bilateral negotiations on the boundary January 2012, countries who independently carry issue, and seek fair, reasonable and mutually- out escort missions in the Gulf of Aden and off the acceptable solutions in the spirit of peace and coast of Somalia, like China, India and Japan, have friendliness, equal consultation, mutual respect and strengthened their coordination in this area, and mutual accommodation. Before the final settlement adjusted and integrated their escort schedule on a of the boundary issue, the Chinese side is willing quarterly basis. China and India have undertaken to work together with the Indian side to jointly the responsibility of rotation-reference country in maintain peace and tranquility in the China-India the 1st and 2nd quarter of this year respectively, border areas. which is now taken over by Japan. It is the 1st The exchange and cooperation between the time for the PLA Navy to conduct such kind of border troops of China and India is an important maritime security cooperation with foreign basis for maintaining stability in the border areas. counterparts. Such cooperation helps to make In recent years, with concerted efforts of both sides, overall management and utilization of escorting we have generally maintained peace and stability naval assets from different countries, and enhance in the border areas. The Chinese side hopes to the efficiency of international escort efforts, which strengthen friendly exchanges on border affairs at 6 NEWS FROM CHINA /SEPTEMBER 2012

would provide better protection for the commercial 6. There are reports of 4,000 troops of the PLA, vessels of various countries. In addition, this year mainly from the engineering corps being is the Year of China-India Friendship and deployed in the disputed region of “Gilgit- Cooperation. The PLA Navy Zhenghe training Baltistan”/”Northern Areas” of Jammu and ship paid a port call to Cochin in May, and Indian Kashmir currently on the Pakistani side of the naval ships visited Shanghai in June. The exchange Line of Control. Could you clarify if this is activities between the two navies are important correct and what is their role? How does China programs of the Year of China-India Friendship view India’s concerns on the matter? and Cooperation. About the above-mentioned report, the Chinese The PLA holds an open and active attitude had made formal response on 20 April last year. towards continuing joint training exercises with As Minister of National Defence of China, I’d like our Indian counterpart. As to the details, the two to take this opportunity to clarify to you once sides need to further discuss. We believe that again: the PLA has never deployed a single soldier strengthening friendly exchanges between the two in the Pakistan-controlled Kashmir. The above- armed forces will help promote mutual mentioned reports or similar allegations are totally understanding between the two peoples and build groundless. The fact is that, India-Pakistan relations mutual trust between the two armed forces. It have been continuously improving in recent years. would lay a good foundation for further As a neighbour of both India and Pakistan, China cooperation in the future, and make active firmly supports India and Pakistan to properly contributions to maintaining regional and world solve their disputes through dialogue and peace and stability. cooperation, so as to achieve common development. 5. With greater involvement in anti-piracy It needs to be stressed that China always holds missions, will China, in the future, require a an explicit attitude towards developing the permanent military facility for its ships in the strategic and cooperative partnership between the Indian Ocean Region? two countries. It is regrettable that some media in The Chinese government persists in following India occasionally make some groundless a peaceful development path. The PLA has never comments when reporting about China-India established a military base overseas. The PLA Navy relations. Some even distort China’s normal ships, while conducting long-distance voyages, activities of developing economy and improving often went to close ports of littoral countries for people’s livelihood, even some humanitarian logistic supply. This is a common practice of world assistance, into “China’s preparation for war navies. Since the beginning of their escort mission against India”. For such untruthful remarks, some in the Gulf of Aden and off the coast of Somalia at were said due to lack of understanding and the end of 2008, the PLA Navy ships have knowledge of about the truth. And some others conducted logistic supply from the ports of Djibouti, were intentionally fabricated rumors by some Oman, Yemen, etc. According to the need of escort interest groups. missions and other long-distance voyages, we We believe that releasing false news to the would also consider having logistic supply or short public equals to hiding the truth from the public. I rest at appropriate ports of other countries. Such hope the Indian media, in their report, could keep logistic supply activities do not have any connection the freedom of news report while carefully with establishing military bases overseas. checking and verifying the accuracy of news NEWS FROM CHINA /SEPTEMBER 2012 7

information. I hope they could disclose hiding In the future, the two armed forces may further truths as well as clarifying rumors, so as to bring strengthen cooperation on peace-keeping, counter truth to the readers, and ensure the public’s right terrorism, disaster relief, etc. We all know that to know. India is the largest personnel contributor in UN peace-keeping operations, and China is also the 7. How Indian and Chinese forces can play a largest personnel contributor among the 5 cooperative role in promoting peace and stability permanent members of the UN Security Council. in the world? There is broad space for both sides to exchange and cooperate on peace-keeping. In addition, Speaking of the current international security China has sent 18 rescue teams in recent years to situation, non-traditional security threats such as conduct humanitarian rescue and relief missions terrorism, transnational crimes, natural disasters in the disaster-hit regions of the Indian Ocean and so on, have gone beyond national borders and tsunami, the earthquakes in Pakistan and become a big challenge for all countries. China Yogyakarta, Indonesia, and the cyclone in thinks that facing the new security challenges, Myanmar. Since 2008, China has sent 12 batches regional countries need to establish and exercise a of naval task forces to conduct escort missions in new security concept featuring mutual trust, the Gulf of Aden and off the coast of Somalia. We mutual benefit, equality and coordination, and share common interest and requirement in these settle regional security issues through coordination areas, and surely can conduct mutually-beneficial and cooperation in the spirit of mutual respect, so cooperation. as to achieve mutually-beneficial and win-win I believe that strengthening security results. China and India are the developing cooperation between the armed forces of China countries with the fastest development and largest and India will not only bring benefit to the two population in the world today. Along with the rise peoples, but also make active contributions to of their overall national strength, they should peace, stability and prosperity of Asia and the undertake more important responsibilities to world at large. maintain world peace.

Chinese, Indian Defense Ministers Reach Many Consensus in New Delhi

New Delhi, Sept. 4 (Xinhua) — Visiting Chinese relationship between them. Over the past few Defense Minister Liang Guanglie and his Indian years, China-India strategic cooperation counterpart A.K. Antony Tuesday reached many partnership has seen a momentum of healthy and consensus in their talks during which he steady development. The two countries have also exchanged in-depth views on many issues seen a continuous expansion of the field of including China-India relations, relations between exchanges and cooperation, which has brought the armed forces of the two countries, and regional substantial benefits to their people. and international security situation. As an important part of China-India relations, Liang said that China and India, as two big the ties between the armed forces of the two neighbors of Asia, can only benefit from a peaceful countries have been promoted further as they have 8 NEWS FROM CHINA /SEPTEMBER 2012

maintained high-level Antony said that as two exchange of visits and emerging powers, it will contacts, and friendly benefit the interests of both cooperation in the fields of countries as well as the defense consultation, joint whole world for India and training programs, personnel China to implement the trainings, interchanges principle of peaceful co- between the border troops, existence, and carry out exchanges in military friendly cooperation. academies and special fields India-China relation- and anti-pirates operation in ship is experiencing a good the Gulf of Aden, said Liang. opportunity of develop- He said China always ment, he said, adding that holds a positive attitude India is willing to maintain towards promoting close exchanges and exchanges and cooperation strengthen cooperation between the armed forces of with China and to the two countries and is contribute to the willing to work with India to increase mutual trust, comprehensive development of relations between and push forward the healthy and steady the two countries and two armed forces, as well development of relations between the two as the maintenance of regional peace and stability. countries and the two armed forces, with a long- Liang arrived in India on Sunday for a friendly term perspective and mutually tolerant attitude. visit at the invitation of Antony.

China, India Make Efforts to Build Military Trust

BEIJING, Sept. 5 (Xinhuanet) — For the first time in 8 years, a Chinese Defense Minister has visited India. The visit has resulted in plans to resume joint military exercises between the two countries. Both sides have also discussed many issues including the South China Sea and the border dispute. The meeting between Defense Ministers Liang Guanglie and A.K. Antony was aimed at building trust between two of the largest countries in the world. NEWS FROM CHINA /SEPTEMBER 2012 9

Chinese Defense Minister General Liang talks will be taken forward when the two countries Guanglie’s visit to India was the first in the last 8 meet for the bilateral defense dialogue in years and when the two ministers came together November. to discuss defense ties; the world was watching. The two countries also discussed sensitive All eyes were on the meeting between the issues including improving border relations and Indian and the Chinese Defense Ministers as they the situation in South Asia and the Asia Pacific came together after years to build trust among both region. the nations. The biggest takeaway though was the Liang Guanglie, China’s Defense Minister, said, resumption of military exercises. “We reached an agreement and consensus on Joint military exercises were stopped in 2010 exchange and cooperation between the two after both countries had visa issues and the militaries in various fields, including the exchange resumption is indicative of trust building between of high level visits, the exchange of young officers the neighbors. and personnel training, and also intercollegiate A.K. Antony, Indian Defense Minister, said, exchanges in non-traditional security fields such “We had a very frank and heart-to-heart discussion as maritime security cooperation.” on all the issues. We have discussed how to improve The two sides also talked about America’s look our relations in all spheres including the border east policy which includes plans to shift a large areas. The Chinese defense minister has invited me part of its navy to Asia Pacific region and India’s to visit China. I have accepted the invitation for take on the same. sometime next year.” As the world geo-political situation goes The talks led to both sides agreeing on high through a massive change, the coming together of level-official exchanges, training of armed forces the two largest countries that also have the strength personnel and maritime security cooperation. The of their economies could tilt balances.

Chinese State Councilor and Defence Minister Says Asia Tour Fruitful

Vientiane, Sept. 9 (Xinhua) — Chinese State Councilor and Defense Minister Liang Guanglie on Sunday wrapped up an official visit to Sri Lanka, India and Laos and left for home. Multiple consensuses were reached during the Asia tour, Liang told Chinese media here in a joint interview, noting that he and leaders of the three countries not only exchanged views on the regional and global security situation but particularly conferred on the development of bilateral military ties and cooperation. The agreements covered high-level contacts, personnel training, joint military drills, border 10 NEWS FROM CHINA /SEPTEMBER 2012

control and management, maritime security ties between China and Laos under the current cooperation and military industries and trade, “complex and volatile” regional and global Liang said. situation. The defense minister also said his visit boosted Pushing forward the China-Laos military the development of China’s relations with the three cooperation “not only accords with the countries and stepped up their cooperation. fundamental interests of our two peoples, but is Commenting on his stay in Laos, Liang said it conducive to regional peace, stability, development is important to strengthen the military-to-military and prosperity,” he added.

Chinese Commerce Minister Meets India’s Commerce and Industry Minister in New Delhi

New Delhi, Aug. 27 (Xinhua) — China promised Monday to import more Indian commodities including IT, pharmaceutical and agricultural products in order to make trade between the two countries “more balanced”. Visiting Chinese Minister of Commerce Chen Deming and his Indian counterpart Anand Sharma said after a ministerial meeting on trade and economic relations here that the two countries will also set up a Joint Working Group (JWG) to look into trade-related issues within 90 days. The decision was taken at the 9th meeting of India-China Joint Group on Economic earliest, and will give its recommendations and Relations, Trade, Science and Technology. assessment in three months. But the working group “There has been this issue of data will continue to work on investment and trade reconciliation, the methodology of calculating the matters thereafter also,” Indian Commerce and numbers on trade. Both Chinese Commerce Industry Minister Anand Sharma said. Minister Chen Deming and I have proposed that Both sides also agreed to encourage mutual the issues pertaining to trade data and the investment during the meeting. “I have invited methodology should be looked into by a Joint Chinese companies to invest in the proposed Working Group of senior officials of the two National Investment and Manufacturing Zones countries. We both have agreed to establish the (NIMZs), and I am happy that the response has JWG which will address all trade-related issues, been very positive and encouraging,” said Sharma. but also go beyond that. The mandate will include Both countries had also agreed to work on a trade and investment. It will be set up at the five-year plan on economic cooperation, he added. NEWS FROM CHINA /SEPTEMBER 2012 11

Chen said when the global economy has not more investment. come out of crisis, there is great meaning to expand He said India welcomes Chinese investment in bilateral economic cooperation with India which the nine envisaged economic development zones will also send a positive message to the world. in the country, also known as NIMZs, which will While stressing trade is the basis of economic become manufacturing bases. cooperation between the two countries, Chen said However, he stressed that India welcomes only China hopes to increase bilateral trade with India highly skilled and qualified professional personnel to 100 billion U.S. dollars by 2015 from 75 billion from China in its visa policy towards the country dollars at present. because jobs are precious in India. He said China encourages its enterprises to shift He denied that some Indian policies towards some of their production bases from China to India Chinese telecom companies are discriminatory if they are needed here. with such practices as anti-dumping and barring Sharma said it is unreasonable that the direct contracts between Chinese suppliers and Indian investment into each other by China and India only users under the excuse of safeguarding”national totals about one billion U.S. dollars and called for security”.

Seminar on China-India Relations Co-organized by Chinese Embassy in India and Institute of Chinese Studies

On September 10, 2012, Chinese Embassy in India held a seminar on China-India Relations with the Institute of Chinese Studies (ICS, India). Before the seminar, Ambassador Zhang Yan met with participating Indian scholars, encouraging them to work closely with the Embassy and contributing ideas to deepen the China-India strategic and cooperative partnership. The seminar was presided over by Mr. Deng Xijun, Deputy Chief of Mission and Minister Counselor of the Chinese Embassy. Among the participants, there were Minister Wang Xuefeng, Minister Counselor Fan Fei and Counselor He Wei, Chairperson Prof. Manoranjan Mohanty, Vice- Chairperson Prof. Patricia Uberoi and Director Prof. Alka Acharya of the ICS. Both sides exchanged views on topics such as China-India political relations, economic cooperation, cultural and people-to-people exchanges, and put forward opinions and suggestions on how to further promote substantial cooperation between the two countries 12 NEWS FROM CHINA /SEPTEMBER 2012

Indian Students from Springdales School Visit China

From August 19 to 25, 2012, a group of 20 Indian students and teachers from Springdales School, Dhaula Kuan Branch, New Delhi visited Beijing at the invitation of their Heart-to-Heart Partner School, the Experimental School of Capital Normal University, China. The group had various interactions with their Chinese host of the Experimental School, gave cultural performances and visited important heritage sites in Beijing. This visit is part of a regular cultural NEWS FROM CHINA /SEPTEMBER 2012 13 exchange program between the Confederation of UNESCO Clubs and Associations of India with China. In this program, a group of students and teachers from India visits China and a similar group from China visits India every year since 2005. It has contributed a lot to the promotion of mutual understanding of each other’s culture, way of life and education system, as well as building confidence and friendship between the two peoples.

II. EXTERNAL AFFAIRS

President Hu Jintao Attends APEC CEO Summit and Delivers a Keynote Speech

On Sep. 8, 2012, Chinese FTA strategy. China will President Hu Jintao attended strengthen economic ties the APEC CEO Summit in with major trading partners Vladivostok, Russia and and deepen pragmatic delivered a keynote speech. cooperation with other President Hu stressed that emerging markets and China will adhere to the developing countries. basic national policy of China’s development will opening up, implement a create opportunities for the more proactive opening-up development of the Asia- strategy and continuously Pacific region. China expand new areas and space welcomes the APEC for opening up. China will business communities to improve institutional continue to actively mechanisms adapted to the participate in China’s requirements on developing reform, opening up and an open economy and speed modernization and share up the implementation of the China’s development 14 NEWS FROM CHINA /SEPTEMBER 2012

opportunities and achievements. bottleneck constraints in the supply chain and At about 09:30 local time, President Hu Jintao, remove obstacles to the flow of goods and services; accompanied by Andrey Kostin, Chair of the strengthen the construction of logistics networks Organizing Committee of the APEC CEO Summit and simplify customs procedures; facilitate the and Chairman of VTB Bank, stepped into the movement of businessmen. APEC needs to provide meeting hall, with all the participants standing up assistance for small- and medium-sized enterprises and applauding. President Hu delivered a keynote (SMEs) in information access, cross-border speech titled “Deepening Interconnectivity and cooperation, capacity building and other fields. Achieving Sustainable Development”. Third, to deepen the reform of investment President Hu said that the APEC CEO Summit, system and share opportunities arising from with “infrastructure for sustainable growth” as the infrastructure construction and development. theme, will focus the discussions on critical and Government agencies should support the private fundamental issues concerning economic recovery sector to enter the infrastructure field, eliminate and long-term development and analyze policy barriers and institutional constraints, expand opportunities and challenges facing economic and broaden the channels and means for social growth of the world and the Asia-Pacific region. capital, and introduce market-based competition It will be of great significance for it will help APEC mechanism; actively explore new channels and members to have an accurate understanding of the means for financing cooperation. situation, identify cooperation directions and Fourth, to strengthen exchanges and priorities, and promote sustained economic cooperation and work together to promote the recovery and development of the Asia-Pacific interconnectivity of the Asia-Pacific region. APEC region. President Hu said that he was willing to needs to continue to play its advantage in supply share some of his observations on the concerns of chain connectivity and trade facilitation, the business community as well as infrastructure strengthen exchanges and cooperation with the development in the context of ensuring growth and Greater Mekong Sub-region Economic driving recovery. Cooperation Program, Great Tumen Initiative First, to strengthen infrastructure development (GTI), ASEAN, ASEAN plus China, Japan and the and consolidate the foundation of economic Republic of Korea, the Shanghai Cooperation development. APEC needs to create fair, Organization and other institutional mechanisms; transparent and efficient governmental, legal and enhance coordination in the areas of laws and market environments; upgrade infrastructure in regulations and people-to-people cooperation. agriculture, energy, water, information and other President Hu pointed out that China’s fields and promote the construction of transport economy is generally stable since the beginning of networks; leverage the important roles of this year; but at the same time, the unbalanced, governments, increase the support of financial uncoordinated and unsustainable contradictions funds, actively explore and improve investment and problems are still outstanding in China’s and financing mechanisms, and establish a multi- economic development. China will continue to participatory mechanism. implement a proactive fiscal policy and a prudent Second, to improve supply chain connectivity monetary policy and maintain the continuity and and facilitation and give full play to the stability of macroeconomic policies. China will performance of the infrastructure. APEC needs to continue to properly handle the relations among continue to push forward the APEC Supply-Chain maintaining stable and rapid economic Connectivity (SC) Action Plan, break through the development, restructuring the economy and NEWS FROM CHINA /SEPTEMBER 2012 15 managing inflation expectations, strive to stimulate President Hu said that China is willing to work domestic demands and maintain a stable and rapid with all parties to drive the sustainable economic economic development and the general stability development and the continuous improvement of in price. China will continue to take strategic people’s well-being in the Asia-Pacific region. economic restructuring as the main direction for After President Hu completed his speech, the transformation of economic development and Kostin made some acknowledgment remarks. He strive to promote the endogenous growth; China said that China’s role is particularly important in will continue to link economic development with today’s world economic pattern. He also wished the improvement of people’s livelihood and strive China to achieve greater economic development. to promote inclusive growth; China will continue Wang Huning, Dai Bingguo and other officials to execute the strategies of rejuvenating the country attended the meeting. through science & technology and talents and The APEC CEO Summit is an important forum strive to promote the innovation-driven during the APEC annual meeting. Over 700 development; China will continue to uphold the participants from the business communities of the basic national policy of opening up and strive to Asia-Pacific region listened to President Hu’s promote mutually beneficial and win-win speech. development.

Hu Jintao Attends the 20th APEC Economic Leaders’ Meeting and Delivers an Important Speech

On September 8, 2012, participating leaders the 20th Economic Leaders’ exchanged views on these Meeting of the Asia-Pacific issues. Economic Cooperation Hu pointed out in his (APEC) opened in speech that trade and Vladivostok, Russia. The investment liberalization and meeting is focused on the integration of the regional theme of “Integrate to Grow, economy are APEC’s core Innovate to Prosper.” agenda. Hu said APEC President Hu Jintao attended member economies should and addressed the first push forward trade and session which was held in investment liberalization and the afternoon. facilitation with the Bogor At about 15:40 local time, Goals at its core by “properly Russian President Vladimir dealing with the relations Putin announced the between new topics and opening of the meeting. The fist session focused realization of the Bogor Goals.” China supported on such topics as trade and investment the designation of “transparency of a free trade liberalization, integration of the regional economy treaty” as this year’s “next-generation” trade and and establishment of reliable supply chains, and investment topic, Hu said. He emphasized that 16 NEWS FROM CHINA /SEPTEMBER 2012

development levels and specific conditions of community to get actively involved in the individual member economies should be taken into development of supply chains,” Hu said. account as they advanced the process of Hu, in his speech, emphasized China had environmental goods liberalization. He also called always placed high importance on the role of APEC for greater efforts to disseminate environmental and actively participated in its cooperation in technologies, enhance capacity building and help various fields and at different levels. “China has developing economies to raise capacity in made positive contributions to the growth of environmental industries and sustainable growth. APEC,” Hu said. “China wishes to take the hosting He said the APEC members should actively explore of the APEC economic leaders’ meeting and related new thoughts of regional economic integration and meetings in 2014 as an opportunity to deepen advance the development of an Asia-Pacific free cooperation with other APEC members and make trade zone in an orderly and incremental way by fresh and even greater contributions to the upholding the principles of openness, inclusiveness development, prosperity and people’s well-being and transparency. in the Asia-Pacific region and beyond,” he said. On the issue of establishing reliable supply On the afternoon of the same day, Hu attended chains, Hu said APEC member economies should a dialogue session with members of the APEC scale up investment in infrastructure development, Business Advisory Council (ABAC). At the session, enhance connectivity and network development Hu and other economic leaders exchanged views in the region, facilitate customs clearance and with ABAC members on pushing forward the reduce the time and cost of commodity flows. He Doha Round negotiations, deepening regional called for experience sharing and capacity building economic integration, strengthening supply chain and urged the economies to enhance risk connectivity, enhancing food security, promoting management and disaster resilience of supply growth of small- and medium-sized enterprises and chains in the region. “We need to create a sound stepping up cooperation on innovative growth. policy environment and encourage the business

President Hu Jintao Attends and Addresses the Second Session of the 20th APEC Economic Leaders’ Meeting

On September 9, 2012, Chinese President Hu foundation, increase agricultural input, enhance Jintao delivered a keynote speech on strengthening the level of agricultural productivity, and expand food security and innovative growth on the second food production capacity. Hu said it was also day of the 20th economic leaders’ meeting of the important to develop the food market’s Asia-Pacific Economic Cooperation (APEC) in infrastructure, establish a modern food logistics Vladivostok, Russia. system and reduce the level of losses throughout Hu said food security was of vital importance the process of storage, transportation and to national interests, people’s livelihoods and consumption. Hu also proposed to increase input mankind’s development and safety, and should be in the research and development of agricultural dealt with through coordination. Hu said efforts production and technology, promote the should be made to strengthen the sector’s application of new technology, lift comprehensive NEWS FROM CHINA /SEPTEMBER 2012 17

agricultural production capacity and guarantee efforts should be made to increase input in research food security and quality. Efforts should be made and development, strengthen the training and to stabilize food and commodity prices, prevent mobility of innovative and highly skilled talent and excessive speculation and improve the promote the transformation of scientific environment of agricultural investment, Hu said, achievements into practical productivity. Hu said adding practical measures should be implemented governments should play their role to build up an to ensure food supply for vulnerable groups in innovative cooperation platform for businesses and society. shore up the dissemination, cooperation and On the issue of innovative growth, Hu said it transfer of technology. was essential to create an environment to encourage The leaders issued a joint declaration. innovation, beef up policy support for science and The APEC economic leaders’ meeting next year technology innovation and fully mobilize will be held in Indonesia. enthusiasm and vigor in innovation. He said more

Hu’s APEC Attendance Helps Boost Integrity, Innovation, Development, Prosperity: FM

Vladivostok, Sept. 9 (Xinhua) — Chinese President Hu Jintao’s attendance at APEC’s 20th informal economic leaders’ meeting has achieved a complete success by helping strengthen regional economic integrity, technological innovation, development and prosperity, Foreign Minister Yang Jiechi said Sunday. The world economy was recovering slowly and there were still some destabilizing factors and uncertainties, Yang, who had accompanied Hu during the trip, said. Asia Pacific, on the whole, maintained sound momentum of growth, but the region should not Chinese President Hu Jintao(L) meets with his Russian counterpart overlook the impact brought about by VladimirPutinin Vladivostok, Russia, Sept. 7, 2012. (Xinhua/Rao Aimin) the grave challenges facing the global economy, he added. Yang said that under the theme of “Integrate economic integration, food security as well as to Grow, Innovate to Prosper,” President Hu cooperation in fostering innovative growth. discussed with leaders of other APEC members During the event, President Hu delivered key- trade and investment liberalization, regional note speeches, fully expounding on China’s 18 NEWS FROM CHINA /SEPTEMBER 2012

positions and proposals. said APEC member economies should move Besides, he extensively contacted economic forward trade and investment liberalization and leaders and people from all walks of life, facilitation with the Bogor Goals at its core. exchanging in-depth views on regional situation, On the issue of stepping up food security, Hu as well as cooperation and future development proposed to lay a solid foundation, increase capital within the framework of APEC. investment and input of science of technology, Hu’s attendance has mainly yielded fruit in the enhance comprehensive agricultural production following five aspects, Yang said. capacity, strengthen the development of food First, he elaborated on proposals in boosting markets infrastructure, and stabilize prices. Asia-Pacific economic development. On the issue of establishing reliable supply Hu stressed that under the current chains, Hu proposed to continue to scale up circumstances, to ensure growth, promote stability investment in infrastructure, enhance connectivity and pursue development remains the top priority and network building in the region and create of members of the region. sound policy environment. Hu called on all parties to deepen reform, On the issue of strengthening policies in opening up and cooperation and pursue common support of scientific and technological innovation, development in a spirit of unity and win-win Hu stressed the need to increase investment in cooperation to advance the process of building a research and development, enhance the training global economic governance mechanism, build a and mobility of innovative and high-skilled fair, just, inclusive and well-managed international personnel and strengthen technology economic structure, accelerate the shift of the dissemination and transfer. growth model, and adjust the economic structure, Hu also elaborated on China’s propositions on and strive for comprehensive, coordinated and trade and investment liberalization, integration. He sustainable economic growth. called for greater efforts to disseminate Hu said all parties should remain committed to opening-up, resolutely oppose protectionism in all manifestations, push forward the Doha Round negotiations, and jointly foster a free, open and fair international trading environment and establish a new type of global development partnership that is more equal and balanced to enable all people to benefit from economic globalization and growth.

Second, his attendance has advanced APEC’s pragmatic cooperation. On the issue of trade and investment liberalization and regional economic integration, Hu Chinese President Hu Jintao (L) met Vietnamese President Truong Tan Sang on September 7 on the APEC forum. (Xinhua) NEWS FROM CHINA /SEPTEMBER 2012 19

environmental technologies, enhance capacity APEC member economies spoke highly of building and help developing economies to raise China’s significant contributions to regional capacity in environmental industries and stability and prosperity, and to the world economic sustainable growth, while taking into account recovery as well, Yang said. different development levels and specific Fifth, his attendance has advanced bilateral conditions of individual member economies. relations between China and related countries Third, Hu, in the speeches, has guided APEC’s During the event, Hu met with APEC leaders future development orientation. of Russia, Vietnam, Indonesia, Brunei and Canada Hu said APEC has grown into an important and reached consensus after exchanging views on force in improving the global economic governance bilateral ties, regional situation and cooperation. mechanism and promoting dynamic cooperation When meeting Russian President Vladimir in the region. Putin on the sidelines of the event, the two leaders In face of a new situation, Hu pointed out that reached broad consensus on major issues of the member economies should act in a spirit of common concern and on deepening the unity and perseverance and adopt a flexible, comprehensive China-Russia strategic cooperative pragmatic and consensus-based approach. partnership. He also called for open and inclusive The two sides agreed to deepen strategic mutual cooperation on the basis of seeking common trust, strengthen cooperation in key areas of ground while reserving differences to pursue investment, establish a cooperative mechanism on mutual benefits to strive for new progress and security and law enforcement, set up a mechanism reach new heights in economic cooperation in the of regular meetings between local government Asia-Pacific region. officials, ensure the success of China-Russia Fourth, his speeches have strengthened tourism year activities, and coordinate and confidence of the international community toward cooperate closely on major regional and China’s economic development international issues to jointly promote regional and Yang said China occupies an important world peace, stability and development. position in the current world economy and its While meeting with Vietnamese President economic prospect has drawn great attentions. Hu, Truong Tan Sang, Hu stressed that the two sides in his speeches, introduced China’s economic should seek political solution to territorial disputes development. in the South China Sea, adhere to the path of Hu stressed China always adheres to setting shelving disputes and of common development and strategic restructuring of its economy as the main stick to bilateral negotiations and friendly direction of Chinese economy, combining consultation to maintain peace and stability of the economic development with improving people’s South China Sea and avoid taking any unilateral livelihoods, implementing the strategies of action that may aggravate, complicate or revitalizing the country through science and internationalize the disputes. education and of strengthening the country Hu also met with his Indonesian counterpart through talents, and practising the basic state Susilo Bambang Yudhoyono and Bruneian Sultan policy of opening up. Hassanal Bolkiah respectively on the sidelines of Hu said China’s development will create good the event and agreed to maintain high-level development opportunities for Asia Pacific. He exchanges, enhance political mutual trust, expand welcomed all parties to participate in the process cooperation in trade and investment and promote of China’s reform, opening up and modernization. people-to-people exchanges. 20 NEWS FROM CHINA /SEPTEMBER 2012

Yang said the leaders agreed to actively On the sidelines of the event, Hu met with implement the Declaration on the Conduct of Japanese Prime Minister Yoshihiko Noda here on Parties in the South China Sea, solve the issue Sunday and made clear China’s position on its through dialogue and consultation, advance relations with Japan and the Diaoyu Islands issue. practical cooperation in the South China Sea and Yang said peace, development and cooperation jointly maintain regional stability. are the popular sentiment of the Asia-Pacific region Hu also reiterated China’s support for the and the trend of the times. China needs Asia Pacific leading role of the Association of Southeast Asian for development, and Asia Pacific needs China for Nations (ASEAN) in East Asia cooperation and prosperity, he added. support for the ASEAN integration process. Yang said Hu’s attendance at the event Yang said China-Canada relations maintained displayed China’s will to combine China’s a good development momentum and have great development with that of Asia Pacific together, potentials for cooperation. and showed its ideologies of good neighborliness, While meeting with Canadian Prime Minister openness and inclusiveness, and cooperation for Stephen Harper, the two leaders expressed the will win-win results. to strengthen cooperation, enhance mutual trust, Yang said China will continue to work with promote trade and investment, expand people-to- all parties to create a better future of a peaceful, people exchanges and strengthen communication stable and commonly prosperous Asia Pacific. and coordination in world and regional affairs.

APEC Summit Wraps up With Joint Commitment on Development

Vladivostok, Russia, Sept. 9 (Xinhua) — The managed not only to preserve the continuity of informal economic leaders’ meeting of the Asia- APEC activities, but to set new horizons and most Pacific Economic Cooperation (APEC) wrapped importantly give a positive signal to business up here Sunday, with the leaders signalling the circles,” Putin said. way ahead on regional development. After intensive discussions, the leaders issued During the APEC 2012 Leaders’ Week, a joint declaration, outlining pathways to economic leaders and representatives actively strengthen the Asia-Pacific region’s prosperity and exchanged views on four major issues, including leadership in the global economy. trade and investment liberalization, regional Against the backdrop of a global economy economic integration, strengthening food security facing a number of challenges, the leaders said they and establishing reliable supply chains, as well as welcomed European leaders’ commitment to cooperation to foster innovative growth. taking all necessary measures to safeguard the Russian President Vladimir Putin told the eurozone’s integrity and stability. meeting’s concluding news briefing the gathering They also reaffirmed their commitment to had achieved all the goals set for it and the business strengthening a multilateral trading system, community had received the necessary signal. vowing to push forward the Doha Round of global “We believe that the tasks set by the summit in trade talks. Vladivostok have been fully achieved... We Amid rising risks of protectionism and NEWS FROM CHINA /SEPTEMBER 2012 21

continuing uncertainties in the global economy, the commitment to achieving a 10-percent leaders pledged to refrain until the end of 2015 improvement in supply-chain performance by from raising new barriers to trade and investment, 2015 in the Asia-Pacific region. and to not impose new export restrictions or The proposed performance improvement implement WTO-inconsistent measures in all areas. included reductions in time, cost and uncertainty With regard to regional integration, the leaders of moving goods and services through the entire recognized the Free Trade Area of the Asia-Pacific region. (FTAAP) as a major instrument to further APEC’s On innovative issues, the leaders agreed to regional economic integration agenda. jointly foster innovative growth, which, in turn, The leaders also reached consensus on the would facilitate sustainable development of the development of green growth in a bid to seek region as a whole. practical, trade-enhancing solutions to global They agreed to take important steps to facilitate environmental challenges. development of effective, non-discriminatory and In particular, the APEC economies endorsed market-driven innovation policies, innovation an APEC List of Environmental Goods containing cooperation and innovation networking. 54 items, whose tariffs would be reduced to 5 APEC has already upgraded its Industrial percent or less by the end of 2015. Science and Technology Working Group into a On food security, the leaders demonstrated Policy Partnership on Science, Technology and their commitment by agreeing to increase Innovation (PPSTI), to bring into full play such sustainable agricultural production and actors as governments, businesses and academia productivity, develop food markets, enhance food from the Asia-Pacific region. security, improve access to food for vulnerable The leaders also pointed out the importance groups and raise farmers’ welfare. small, medium and micro-sized enterprises Highlighting the importance of establishing (SMMEs) had in innovation-driven growth. reliable supply chains, the leaders reaffirmed their SMMEs are “a significant driver of 22 NEWS FROM CHINA /SEPTEMBER 2012

development and innovation in the Asia-Pacific During his stay in Russia, Hu also delivered a region that will improve the quality of economic keynote speech on infrastructure for sustainable integration and competitiveness of our economies,” growth at the CEO summit of APEC. the joint statement says. The next APEC gathering will be held in Bali, Chinese President Hu Jintao attended the Indonesia, in 2013. China, the Philippines and Peru leaders’ meetings and exchanged views on regional will host APEC in 2014, 2015 and 2016, development. respectively. Hu told the meeting China would take the APEC, a premier economic forum in the Asia- hosting of the APEC Economic Leaders’ Meeting Pacific region, was established in 1989. It has in 2014 as an opportunity to deepen cooperation grown to encompass 21 members spanning four with other APEC members and make fresh and continents, and accounts for about 40 percent of even greater contributions to the development, the world’s population, 57 percent of its GDP, and prosperity and people’s well-being in the Asia- 48 percent of world trade. Pacific and beyond.

2012 China-Eurasia Expo Opens in Urumqi

Beijing, Sept. 3 (Xinhuanet) — The Second Chinese enterprises to Eurasian countries has China-Eurasia Expo has opened in Urumqi, capital reached nearly 250 billion US dollars. The project of northwest China’s Xinjiang Uygur Autonomous contracts they signed are worth nearly 470 billion Region. Leaders and business elites from 55 US dollars. West and central Asian countries have countries and regions as well as international become China’s most important energy organizations are attending the Expo. Chinese cooperation partners.” Premier Wen Jiabao delivered a key note speech at The aftermath of the global financial crisis and the opening ceremony, hailing it as a new the spread of the Eurozone sovereign debt crisis constructive platform to boost regional has strengthened the government’s determination cooperation. to diversify the composition of its trade partners. East meets West at a new trade hub with rising The geographical closeness and geopolitical links influence. of the Eurasian region make it an ideal choice. Upgraded from just a regional trade fair, the Premier Wen Jiabao says more market access for China-Eurasia Expo is a major step forward in the countries in the region as well as efforts to make Chinese government’s efforts to boost trade with the most of their highly complimentary economies its partners in the region. can help establish stable long-term cooperation in And rightly so. Trade figures in the past decade the region. herald brighter prospects. Wen Jiabao, Chinese Premier said, “We should Wen Jiabao, Chinese Premier said, “In the past quicken negotiations on bilateral and multilateral 10 years, the trade volume between China and free trade agreements to protect the legal rights of countries in Central, East and South Asia has enterprises and strengthen investors’ confidence. increased from 25.4 billion US dollars to more than We should promote financial cooperation to 370 billion US dollars. The average annual growth provide funding support to large-scale projects. We rate exceeds 30 percent. The direct investment by should also provide collective assistance to NEWS FROM CHINA /SEPTEMBER 2012 23

countries in financial difficulty and help them implementing our “New Silk Road” plan. And we enhance their development capabilities.” will adhere to the principles of speed, service, price, Other regional leaders also have lofty goals. safety and stability.” Karim Massimov, Prime Minister of The inaugural Expo in September last year was Kazakhstan said, “Geographical location and a huge success. It witnessed the signing of 5.5 billion historical connections all testify that Eurasian US dollars worth of foreign trade contracts. countries should jointly revive the ancient Silk The organizers are confident that this year will Road. In the coming years, we will begin be even better.

Towards a Brighter Future of the Chinese Economy Speech by H.E. Wen Jiabao Premier of the State Council of the People’s Republic of China At the World Economic Forum Annual Meeting of the New Champions 2012 Tianjin, 11 September 2012

Professor Klaus Schwab, Executive Chairman of average annual rate of 10.7%, and moved up from the World Economic Forum, the sixth to the second place in the world. Our per capita GDP rose from 1,000-plus US dollars to Ladies and Gentlemen, 5,432 US dollars. China’s foreign trade volume also I am delighted to meet you, friends old and climbed from the sixth to the second place in the new here today. Let me first express warm world, and foreign exchange reserves exceeded congratulations on the opening of the sixth Annual three trillion US dollars. China’s industrial Meeting of the New Champions, or the Summer structure was upgraded, its agricultural foundation Davos, and extend a sincere welcome to all the was consolidated, and regional development distinguished guests present. became much more balanced. All-round progress The Summer Davos Forum, inaugurated in was made in social programs and people’s China in 2007, has become a global forum with livelihood significantly improved. We have extensive influence. The theme of the forum for withstood the test of many disasters, difficulties this year – “Creating the Future Economy” is and risks. In the recent five years in particular, we highly relevant and practical. It reflects your vision effectively tackled the huge impact of the on sustainable development and meets the high international financial crisis and sustained steady expectation for a bright future of the world and fast economic growth. We owe these economy. achievements to the strength of reform and China has enjoyed fast economic development opening-up, the persevering spirit of the Chinese for over 30 years. During the past decade in nation and our tireless efforts in exploring a path particular, we firmly seized the strategic of scientific development and harmonious society. opportunities for development, made hard and Here I wish to share with you what we did and pioneering efforts, and scored new historic what we have learned in this course of our achievements in economic and social development. endeavors. From 2002 to 2011, China’s GDP grew at an 24 NEWS FROM CHINA /SEPTEMBER 2012

– We enhanced macro-regulation to promote significantly improved. Over 7,000 large- and steady and fast economic growth. Fast growth medium-sized and key small aging reservoirs were and low fluctuation was the most salient feature reinforced. We extended access to potable water of China’s economic performance in the past to many more rural people. A large number of decade. We gave full play to the basic role of the community facilities providing medical, health, market in resource allocation, exercised macro- education and cultural services were established. regulation in a scientific way, acted quickly to A new Wenchuan was built and all-round progress correct market failures and prevented major was made in economic and social development of fluctuations in the economy. After the international the disaster-stricken areas. Meanwhile, we had financial crisis broke out, we fully implemented a fiscal and financial risks under control. Our budget package plan, making parallel efforts in expanding deficit and outstanding government debt in 2011 domestic demand and stabilizing external demand, were 1.8% and 15.28% of the GDP, both lower increasing investment and stimulating than their 2002 levels of 2.57% and 16.07%. The consumption, reinvigorating industries and ratio of non-performing loans in the banking sector promoting technological innovation, boosting went down from 15.2% at the end of 2003 to 1.8% economic growth and improving people’s in 2011. We obtained a true picture of local livelihood, and overcoming current difficulties and government debts. The scale of local government pursuing long-term development. Thanks to these debts in the past two years was on the whole stable efforts, China was among the first to achieve an and risks were basically under control. economic upturn and what we did was also vital – We improved the economic structure to in promoting world economic recovery. Some raise the quality and efficiency of economic people made accusations about China’s package development. A shift from fast growth to sound plan in disregard of facts and they even said that growth was a fundamental change in the priorities we paid an undue price in this process. I want to of China’s development in the past decade. We make it clear here that it was exactly due to our took strategic adjustment of the economic structure resolute decision and scientific response that China as the main task of shifting the growth model, and was able to avoid factory closures, job losses and raised the quality, expanded the scope and return of migrant workers to their home villages. bolstered the momentum of development. To These stimulus measures helped us keep the good balance the development of domestic and external momentum of economic development, maintain demand, we rolled out a number of policies and social stability and harmony and protect China’s measures to boost domestic demand. As a result, modernization process from major setbacks. Over our current account surplus as a percentage of the past several years, social wealth has increased, GDP came down to 2.8%, the contribution of final asset quality has improved and our capacity to consumption to economic growth rose from 43.9% resist risks has enhanced. From 2009 to the end of to 50.8%, and a pattern in which economic growth 2011, we began construction of 21 million units of is jointly driven by consumption, investment and low-income urban housing, and 11 million units export is taking shape. Guided by an innovation- have been basically completed. The operational oriented approach, we formulated and mileage of railways increased by 13,500 kilometers. implemented the mid- and long-term programs for The mileage of highways was extended by 376,000 science and technology, education and human kilometers, including the 24,600 kilometers of resources development. National R&D spending expressways. Infrastructural facilities such as as a percentage of GDP rose from 1.23% to 1.83%, urban rail transport and rural power grid were the number of granted patents increased by 18.2 NEWS FROM CHINA /SEPTEMBER 2012 25

times, and enterprises have become the backbone production and consumption pattern conducive of investment and R&D activities. We pursued to saving energy and resources and protecting the economic growth by relying on the coordinated eco-environment, and made vigorous efforts to development of primary, secondary and tertiary develop green economy and promote harmony industries. Overall agricultural productivity was between man and nature. As a result, China’s enhanced, grain output grew for eight consecutive energy consumption per unit of GDP and CO2 years, and grain reserves reached a historic high emissions both dropped significantly. The of over 250 million tons. The manufacturing sector environment and air quality standards were became the largest in the world. High-tech revised this year and such new monitoring manufacturing expanded at an average rate of 22% indicators as fine particulate matter (PM2.5) were annually and became a leading pillar industry in added. Forest cover rose from 18.21% in 2003 to the economy. Value-added of the service sector as 20.36% in 2011. We released and implemented the a share of GDP increased by 1.6 percentage points national plan on climate change and played an and modern service industries such as finance, active part in international response to climate insurance, logistics, software and information change under the principle of “common but enjoyed fast development. We promoted parallel differentiated responsibilities”. development of industrialization, urbanization and – We balanced economic and social agricultural modernization, implemented the development to improve people’s livelihood and overall strategies for development of different promote social equity and justice. To put people’s regions and achieved initial success in closing the needs first was the most visible highlight in China’s widening gaps between industry and agriculture, development in the past decade. We took urban and rural areas, and among different improvement of people’s lives as the starting point regions. The urbanization rate rose from 39.1% to and ultimate goal of all our work, and made real 51.3%, bringing a historic change in China’s urban- efforts to make development fruits shared by all. rural structure. Since 2008, the central, western We pursued a proactive employment policy. Over and northeastern regions have been growing faster 100 million new urban jobs were created in the than the eastern region and the share of GDP of past ten years, including more than 10 million jobs these regions in the national total has notably risen. annually for the past five consecutive years. We A regional development pattern featuring sound made free nine-year compulsory education fully interaction among regions and distinctive local available, established a complete financial aid features is coming into being. system for students from poor families and fulfilled – We conserved resources and the our solemn commitment of “not letting a single environment to enhance capacity for sustainable child drop out of school due to poverty”. We made development. To build a resource-saving and historic progress in building a social safety net environment-friendly society was identified as an covering both urban and rural populations. The important strategy of national development. This new rural pension scheme and the old-age pension was a major step China took in pursuing scheme for non-working urban residents achieved sustainable development in the past decade. We full coverage, and an urban and rural social aid incorporated mandatory targets of energy system was basically established. The medical conservation and emission reduction into the insurance system covering the entire population national economic and social development plan, took initial shape. More than 1.3 billion urban and scaled up financial input, accelerated the rural residents subscribed to the programs and the development of an industrial structure, mode of coverage of basic medical insurance programs 26 NEWS FROM CHINA /SEPTEMBER 2012

topped 95%. We took active steps to adjust income gas across the country. We deepened reform in the distribution. Basic pension for enterprise retirees financial sector. The share-holding reform of large increased at an average annual rate of 10% for state-owned commercial banks and their listing on eight consecutive years. Minimum wage, threshold the stock market were completed, the problem of for personal income tax and the national poverty split-share structure in listed companies was line were significantly raised. The per capita urban smoothly resolved and the reform of RMB disposable income and per capita rural net income exchange rate forming mechanism and reform of increased at an average annual rate of 9.2% and making interest rates market-based moved forward 8.1% respectively in real terms, making the past steadily. Our financial system became much more decade one of the fastest-growing periods in the competitive and resilient to risks, and played an history of New China. And, rural income grew essential role in countering the international faster than urban income in the past two years. financial crisis. We deepened comprehensive rural We earnestly implemented the UN Millennium reform, completely rescinded agricultural taxes, Development Goals. China became the only pressed ahead with the reform of tenure in country in the world to meet the goal of cutting its collective forests and launched registration for poor population by half ahead of schedule. We contracting pastureland in accordance with the scaled up input in building low-income housing law. We unwaveringly consolidated and and raised its coverage from less than 4% in 2008 developed the public sector of the economy, to the current 11%. Hundreds of millions of Chinese unswervingly encouraged, supported and guided families and the towns and villages where they the development of the non-public sector, and live and work experienced tremendous changes ensured equal protection of property rights. All in these past ten years, and there were numerous economic sectors developed side by side and their touching stories of Chinese people changing their competitiveness and overall strength markedly lives and destinies through hard work and improved. The deepening of the reform process perseverance. highly motivated the enthusiasm, initiative and – We deepened reform and opening-up to creativity of the people and injected new vigor and boost the vitality and momentum of economic vitality into our economic and social development. and social development. China’s reform made We pursued a win-win strategy of opening-up, continuous breakthroughs in the past decade. This fully met our commitments made upon WTO has been the most distinctive feature of our time. accession, and placed equal emphasis on exports We accelerated the building of institutions and and imports and on attracting foreign investment mechanisms that are dynamic, efficient, open and and investing overseas. This has not only helped conducive to scientific development. We improved us gain broader space for our development and the public finance system, placed all economic growth, but also made important extrabudgetary funds under budgetary contribution to economic development in the management and made public budgets and final region and the world. accounts. We unified the tax regimes for Chinese As I look back at each and every step I took in and foreign businesses, carried out a the past ten years, strong emotions well up inside comprehensive VAT reform and speeded up the me. They are emotions of a deep love and strong trial program of replacing business tax with VAT. confidence that I have always cherished towards We pushed forward the pricing and tax reform of my beloved country, an ancient civilization refined oil products and launched a price-based brimming with youthful energy. Through ten years reform of resource tax on crude oil and natural of hard work, we have elevated our economic and NEWS FROM CHINA /SEPTEMBER 2012 27

social development to a new level and laid a more problems in the economy. In particular, we have solid material, technological and institutional taken a host of policy measures since May. They foundation for future development. In today’s are mainly as follows: We stepped up structural China, new growth areas keep emerging and tax cuts and advanced the VAT for business tax strengthening. Science, technology and education pilot program on a priority basis. We improved are playing a bigger role in driving economic the plan of the reform and extended it to more development. There are ample supply of social places. We took a series of measures to ease the funds, a better educated labor force, improved tax burden on small and micro businesses. We gave infrastructural facilities and a sound institutional play to the role of monetary policy in making framework. There is booming businesses, improved counter-cyclical adjustments, lowered the required macro-regulation by the government and a stable reserve ratio, cut the benchmark deposit and social and political environment. In particular, we lending rates twice, widened the floating range of have established a path of scientific development. interest rates, lending rates in particular, and All these are important factors that will make a maintained steady and moderate growth in money difference for a long time to come. China is still in and credit supply. We allocated 26.8 billion yuan an important period of strategic opportunities for from the central budget to support enterprises in development. The advance of industrialization, undertaking technological upgrading. We adopted urbanization, information technology and 42 provisions of implementation for the Guidelines agricultural modernization will continue to of the State Council on Encouraging and Guiding unleash huge development potential and the giant the Sound Development of Nongovernmental ship of the Chinese economy will sail ahead fast Investment (the “new 36 Guidelines”). We yet steadily and reach the shore of a brighter launched the program of promoting energy- future. efficient home appliances to the benefit of the people. We stepped up infrastructure development Ladies and Gentlemen, that concerns the people’s well-being, moved faster This year, international political and economic in building low-income housing and renovating situation has remained complicated and fluid, and dilapidated rural houses, launched the projects of brought more difficulties to China’s economic upgrading underground pipe networks and water development. In line with the overall requirement supply and drainage facilities in some big cities, of making progress while maintaining stability, we and improved the water conservancy facilities for have strengthened and improved macro- farmland. We implemented and improved the regulation, followed a proactive fiscal policy and policies and measures for stabilizing exports, a prudent monetary policy, and made our policies pushed forward trade facilitation and actively more forward-looking, targeted and flexible. We expanded imports. We abolished and adjusted 314 have properly handled relations between administrative items that require government maintaining steady and robust economic review and approval. All these measures have development, adjusting the economic structure helped boost market confidence and promote and managing inflation expectations, laid greater steady economic growth. In the first half of this emphasis on stabilizing growth, and sustained year, China’s GDP grew by 7.8% year-on-year. steady and fast economic growth. We have Domestic demand remained a major force driving intensified anticipatory adjustments and fine- economic growth. The share of current account tuning to respond to the new developments and surplus of GDP dropped to 2.3%. Employment is 28 NEWS FROM CHINA /SEPTEMBER 2012

stable. In the first seven months this year, 8.12 sovereign debt crisis in some countries continues million new urban jobs were created, up by 5% to develop. International financial and commodity year-on-year. The agricultural situation has further markets are undergoing greater fluctuations, improved, evidenced by increase in summer grain market expectations remain low and the output for nine consecutive years. The Consumer downward risks in the global economy are not to Price Index (CPI) in July rose 1.8% over the same be underestimated. Yet at the same time, we should period of last year and inflationary pressure has recognize that major economies and international notably eased. Macroeconomic indicators show organizations are forging a broad consensus and that China’s economic and social development is taking focused measures to address the prominent in good shape. The speed of growth is still within challenges in the domestic, regional and global the target range set at the start of the year, and economies. It is all the more important for us to although growth is slowing down, it is being more boost confidence and stick together to meet the stable. As the recent measures are implemented difficulties head-on. I always believe that and take effect, we expect the economy to further confidence provides a source of strength and stabilize. We will, in light of the trend of economic technological innovation offers a fundamental performance, fully utilize the ample fiscal and means to overcome the crisis. I believe green monetary policy space, fully tap the huge potential development is the main goal of economic of domestic demand and fully motivate the various transformation and opening-up and cooperation localities and departments. We will give greater is an irreversible trend of the world. I hope that priority to stabilizing growth, continue to follow a the international community will strengthen proactive fiscal policy and a prudent monetary macroeconomic policy coordination, push forward policy, and maintain the continuity and stability reform of the global governance structure, of our policies. We will step up anticipatory resolutely oppose trade and investment adjustments and fine-tuning, press ahead with protectionism, advance trade and investment structural tax cuts and keep the increase of money liberalization and facilitation, and work jointly for and credit supply at a steady and moderate level. an early steady recovery of the world economy. I We will make stronger efforts to spur consumer hope that entrepreneurs of all countries will invest demand, expand effective investment with a focus more in technological R&D and product on bringing out the energy of nongovernmental innovation, vigorously develop green industries investment, stabilize external demand and bolster that are energy efficient and environment-friendly, the real economy. We are fully confident that we create new market demand and growth areas, and have the conditions and ability to overcome the bring about an all-win outcome where businesses difficulties on our way ahead, maintain steady and boom, industries get stronger, the economy robust economic growth and achieve development prospers and society progresses. at a higher level and with better quality for a long Ladies and Gentlemen, time to come. I have full confidence in the bright future of Ladies and Gentlemen, the Chinese economy and world economy. Let us The international financial crisis has entered work closely together to disperse the shadow of its fifth year, yet its underlying impact is still with the international financial crisis and usher in a us. Advanced and emerging economies alike are brighter future. I wish the forum full success. all experiencing an economic slowdown. The Thank you. NEWS FROM CHINA /SEPTEMBER 2012 29

China Urges U.S. to Work for Peace in South China Sea

Beijing, Sept. 4 (Xinhua) — China urged the sovereignty over the Nansha Islands and its United States on Tuesday to make greater efforts interests in waters near the South China Sea,” to maintain peace and stability in the South China Hong said, adding that “China, like all other Sea ahead of U.S. Secretary of State Hillary countries in the world, has an obligation to Clinton’s two day-visit to Beijing. safeguard its sovereignty and territorial integrity.” “We have taken note of the U.S. side’s refusal “China holds that all the parties concerned to take a position on the South China Sea issue,” should effectively implement and abide by the Foreign Ministry spokesman Hong Lei said at a Declaration on the Conduct of Parties in the South regular news briefing. China Sea (DOC) and enhance cooperation and “We hope the U.S. side will keep its mutual trust to maintain peace and stability in the commitment and make efforts that help, rather South China Sea, rather than take any action that than harm, regional peace and stability,” Hong could complicate and escalate the situation,” Hong said. said. Clinton said Monday in Jakarta that it is now Hong said all the parties concerned should time to create a code of conduct for the South work together through consultations to create a China Sea. code of conduct on the condition that the DOC “It is time for diplomacy,” she said. “We have will still be implemented. the East Asia Summit coming up. This should be “We hope that parties concerned will support the goal that diplomacy pursues: to try to attain the consensus between China and ASEAN agreement on a robust code of conduct, to begin members and make efforts that will boost mutual to try to literally calm the waters and enable people trust and stability in the region,” he added. to work together toward better outcomes.” In 2002, China and the Association of the Hong said the South China Sea issue is Southeast Asian Nations (ASEAN) countries signed complicated and different countries have different the DOC, which states that sovereign states should understandings, concerns and interests regarding resolve territorial and jurisdictional disputes by the issue. peaceful means and through friendly consultations “For China, the issue is about the country’s and negotiations.

III. THE ISSUE OF DIAOYU ISLANDS

China’s Postion on Diaoyu Islands

1. China’s basic position ancient times, and China has indisputable historical evidence and legal basis to support this The Diaoyu Island and its affiliated islets claim. It is an objective fact that there exist (hereinafter referred to as “Diaoyu Islands”) have sovereign disputes between China and Japan over been an inherent part of Chinese territory since 30 NEWS FROM CHINA /SEPTEMBER 2012

the Diaoyu Islands, and China has always because they know they have finally returned to maintained that a solution should be sought to the their homes.” Taihai Shichalu (A Tour of Duty in dispute through diplomatic negotiations on the the Taiwan Sea), a book written in 1722 by Huang basis of respecting facts. Shujing, an envoy dispatched to Taiwan by the Qing Imperial Court, also included accounts about 2. Historical evidence and legal basis for the Diaoyu Island, “there is an island to the north China’s sovereignty over the Diaoyu Island and of the ocean that can harbor more than ten ships. its affiliated islets Its name is Diaoyu Tai.” Chouhai Tubian (An Illustrated Compendium There is ample historical evidence to show that on Maritime Security) compiled by Hu Zongxian, the Diaoyu Island and its affiliated islets were first the governor for war against pirates in the Ming discovered, named, exploited and developed by the Dynasty, marked the coastal islands that were Chinese people and that Chinese fishermen had under the jurisdiction of the Ming Dynasty for long engaged in fishing and other production naval defense, which included the Diaoyu Island activities for generations in these islands and their and its affiliated islets. This is solid proof that these adjacent waters. Chinese merchants and fishermen islands had been under the jurisdiction of China’s from the coastal regions in Southeast China had naval defense as far back as the Ming Dynasty. been using the Diaoyu Islands as navigation From a geographical perspective, the Diaoyu markers even before the 15th century. Island and its affiliated islets are separated by the The Diaoyu Island and its affiliated islets were Okinawa Trough, which is as deep as over 2,000 under the sovereignty of China during the Ming meters, from the Ryukyu Islands to the east. The (1368-1644 AD) and Qing (1644-1911 AD) Kuroshio Current, flowing from southwest to dynasties and were already incorporated into the northeast through the Okinawa Trough, makes it Chinese territory in the early Ming Dynasty. The technically challenging in ancient times for boats book Shun Feng Xiang Song (Voyage with a Tail to approach the Diaoyu Islands from the east side Wind), which was published during the reign of of the trough. This also explains why it is no Emperor Yongle in the Ming Dynasty (1403-1424 coincidence that the Chinese were the first to AD), recorded the names of the islands that Chinese discover and develop the Diaoyu Island and its voyagers passed during their trips from Fujian to affiliated islets. Ryukyu Islands, including the “Diaoyu Islet” and “Chikan Islet” (known as “Chiwei Islet” today). 3. Japan and the international community had Chinese envoys to the Ryukyu Kingdom during recognized the Diaoyu Islands as part of China the Ming and Qing dynasties clearly recorded in in explicit terms their diaries that the Diaoyu Islands were part of the Chinese territory and that only areas beyond Until modern times, none of Japan’s official these islands fell into the territory of Ryukyu. For historical accounts, national records or academic instance, Chen Kan, a Chinese envoy of the Ming papers had ever challenged China’s territorial Dynasty, wrote in Shi Liu Qiu Lu (Record of the sovereignty over the Diaoyu Islands, and the Imperial Envoy to Ryukyu) in 1543, “the Diaoyu Chinese name for the island had been used in all Islet, Huangmao Islet, Chikan Islet, so many islands these documents. The Japanese maps published unfold before my eyes ... Then the Kume Island prior to the mid-19th century had marked the (known as Kumejima Island today) comes into Diaoyu Islands and China’s mainland with the sight, that’s where the land of Ryukyu begins. The same color, and even the Maps and Names of local Ryukyuans on my ship are happy and excited, Provinces and Cities in Japan published in 1892 NEWS FROM CHINA /SEPTEMBER 2012 31

did not include the Diaoyu Islands in the Japanese Islands. In handling this case, the Japanese court territory. ruled that the Diaoyu Islands should be under the In the book Sangoku Tsuran Zusetsu jurisdiction of “Taihoku Prefecture”. Ryozo (Illustrated Outline of the Three Countries) written Fukuda, who served as head of the “Taiwan Police by Japanese scholar Hayashi Shihei in 1785, the Department” during the Japanese occupation of attached map of the three provinces and 36 islands Taiwan, confirmed that the Diaoyu Islands were, of Ryukyu also marked the Diaoyu Islands as being at the time, under the jurisdiction of the “Taiwan outside the scope of the Ryukyu Islands and with Police Department”, and licences were issued by the same color as the Chinese mainland. “Taihoku Prefecture” to Taiwanese fishermen to The Chuzan Seikan (Mirror of Chuzan), operate around the Diaoyu Islands. All these facts compiled by the Regent of the Ryukyu Kingdom prove that even under Japan’s colonial rule, these in 1605, identified Kume (present-day Kumejima islands were administered as Taiwan’s affiliated Island, east of Chiwei Islet) as the boundary of the islands. Ryukyu Kingdom. The maps and references in the In December 1943, heads of China, the US and Chuzan Seifu (Genealogy and Annals of Chuzan), the UK issued the Cairo Declaration in which it presented in 1701 by an envoy dispatched by the was stated that all the territories Japan had stolen Ryukyu Kingdom as a tribute to the Qing Emperor, from the Chinese should be restored to China. In recorded the 36 islands of the Ryukyu Kingdom, 1945, it was reiterated in the Potsdam Proclamation and the Diaoyu Island and its affiliated islets were that “the terms of the Cairo Declaration shall be not part of them. In the late 1870s and early 1880s, carried out and Japanese sovereignty shall be the Qing Dynasty’s chief diplomat Li Hongzhang limited to the islands of Honshu, Hokkaido, and his Japanese counterparts confirmed during Kyushu, Shikoku and such minor islands as we the negotiations on the sovereignty over the Ryukyu determine”. In August that year, Japan accepted Islands that the Ryukyu Islands consisted of the the Potsdam Proclamation and surrendered 36 islands, and the Diaoyu Islands were not part unconditionally. In accordance with the Cairo of them. The relevant 19th century documents and Declaration and the Potsdam Proclamation, China maps from Western powers such as Britain, recovered the territories stolen by Japan such as France, the United States and Spain also Taiwan and the Penghu Islands. According to acknowledged that the Diaoyu Islands belonged international law, the Diaoyu Islands, which are to China. A Map on China’s East Coast from Hong Taiwan’s affiliated islands, have been Kong to the Liaodong Bay, compiled by the British simultaneously returned to China. Navy in 1877, identified the Diaoyu Islands as being affiliated to China’s Taiwan and distinctly 4. Japan’s illegal occupation of the Diaoyu separated them from Japan’s Nansei Islands, or Islands the Ryukyu Islands. This map was later on widely Tatsushiro Koga, a Japanese national, explored referred to in international exchanges and was used the Diaoyu Islands in 1884 and claimed that he to demarcate the Penghu Islands during the found the islands to be terra nullius. From 1885 to negotiations of the Treaty of Shimonoseki. 1893, the Okinawa Prefecture requested permission In 1941, the so-called “Taihoku (Taipei) thrice from the Japanese government to place the Prefecture”, which was then under the Japanese Diaoyu Islands under its jurisdiction and put up occupation, came into disputes with Okinawa boundary markers. The Japanese government Prefecture over the fishing grounds on the Diaoyu 32 NEWS FROM CHINA /SEPTEMBER 2012

rejected the requests fearing reprisals from the Qing Japan on 15 May 1972. The agreement included government. In January 1895, as the Qing the Diaoyu Island and its affiliated islets in the Dynasty’s defeat in the First Sino-Japanese War territories and territorial waters to be reversed to was all but certain, the Japanese government Japan. On the same day the agreement was signed, illegally occupied the Diaoyu Islands and the spokesman of the U.S. State Department stated “incorporated” them into Okinawa Prefecture. In that the reversion of Okinawa would not have any April the same year, by signing the unequal Treaty implication for the sovereignty of the Senkaku of Shimonoseki, Japan forced the Qing Dynasty to Islands. cede “the island of Formosa (Taiwan), together On 30 December 1971, the Ministry of Foreign with all islands appertaining or belonging to the Affairs of China issued a statement, saying that said island of Formosa” to Japan. In 1900, the the agreement was a blatant violation of Chinese Japanese government renamed the Diaoyu Islands territorial sovereignty and would not be tolerated the “Senkaku Islands”. by the Chinese people. It is entirely illegal for the Unites States and Japan to include the Diaoyu 5. Backroom deals between Japan and the Islands in the territories and territorial waters to United States and protest statements by China be reversed to Japan in the Okinawa Reversion Agreement they signed. And this would in no way The Treaty of Peace with Japan (commonly change the territorial sovereignty of the People’s known as the Treaty of San Francisco) was signed Republic of China over the Diaoyu Islands. by Japan, the United States and other countries on 8 September 1951, agreeing to place the 6. The “islands purchase” issue created by southwestern islands south of the 29th parallel of Japan north latitude under its trusteeship system, with the United States as the sole administering In April 2012, Shintaro Ishihara, a far right- authority. In December 1953, the Ryukyu wing Japanese politician and governor of Tokyo, government under the United States trusteeship initiated a scheme for the Tokyo Metropolitan issued a proclamation defining its geographical government to “purchase” the Diaoyu Islands and boundary lines, with the Diaoyu Islands being launched a high-profile fund-raising campaign clearly included. for collecting public donations for that purpose. On 18 September 1951, Zhou Enlai, then In July, the Japanese government announced its Chinese Premier and Foreign Minister, made a plan to “nationalize” the islands. China has solemn statement on behalf of the Chinese repeatedly lodged stern representations with Japan government that the Treaty of Peace with Japan and reiterated that the Diaoyu Island and its signed in San Francisco was illegal and invalid and affiliated islets have always been China’s inherent could under no circumstances be recognized by territory since ancient times. China has the central government of China as China was indisputable sovereignty over these islands. China excluded from its preparation, formulation and strongly opposes the Japanese attempt to purchase signing. China’s sacred territory. Any unilateral move On 17 June 1971, Japan and the United States made by Japan with regard to the Diaoyu Island signed the Okinawa Reversion Agreement, which and its affiliated islets is illegal and invalid and provided that all and any powers of administration cannot change the fact that these islands belong over the Ryukyu Islands would be returned to to China. NEWS FROM CHINA /SEPTEMBER 2012 33

Statement of the Ministry of Foreign Affairs of the People’s Republic of China

2012/09/10

Regardless of repeated strong representations Islands in accordance with the Cairo Declaration of the Chinese side, the Japanese government and the Potsdam Proclamation. According to announced on 10 September 2012 the “purchase” international law, the Diaoyu Island and its of the Diaoyu Island and its affiliated Nan Xiaodao affiliated islands have already been returned to and Bei Xiaodao and the implementation of the China. Facts are facts, and history is not to be so-called “nationalization” of the islands. This reversed. Japan’s position on the issue of the constitutes a gross violation of China’s sovereignty Diaoyu Island is an outright denial of the outcomes over its own territory and is highly offensive to the of the victory of the World Anti-Fascist War and 1.3 billion Chinese people. It seriously tramples on constitutes a grave challenge to the post-war historical facts and international jurisprudence. international order. The Chinese government and people express firm In 1951, the Treaty of Peace with Japan opposition to and strong protest against the (commonly known as the Treaty of San Francisco, a Japanese move. treaty partial in nature) was signed between Japan, The Diaoyu Island and its affiliated islands the United States and other countries, placing the have been China’s sacred territory since ancient Ryukyu Islands (known as Okinawa today) under times. This is supported by historical facts and the trusteeship of the United States. In 1953, the jurisprudential evidence. The Diaoyu Islands were United States Civil Administration of the Ryukyu first discovered, named and exploited by the Islands arbitrarily expanded its jurisdiction to Chinese people. Chinese fishermen had long been include the Diaoyu Island and its affiliated islands, engaged in production activities on these islands which are in fact Chinese territories. In 1971, Japan and in their adjacent waters. The Diaoyu Islands and the United States signed the Okinawa Reversion have been put under the jurisdiction of China’s Agreement, which arbitrarily included the Diaoyu naval defense as affiliated islands of Taiwan, China Islands in the territories and territorial waters to since the Ming Dynasty. The Diaoyu Islands have be reversed to Japan. The Chinese government has, never been “terra nullius”. China is the indisputable from the very beginning, firmly opposed and never owner of the Diaoyu Islands. acknowledged such backroom deals between In 1895, as the Qing government’s defeat in Japan and the United States concerning Chinese the First Sino-Japanese War was all but certain, territories. The claims of the Japanese government Japan illegally occupied the Diaoyu Island and its that the Diaoyu Island is Japan’s inherent territory affiliated islands. After that, Japan forced the Qing and that there is no outstanding territorial dispute government to sign the unequal Treaty of between Japan and China showed total disregard Shimonoseki and cede to Japan “the island of of historical facts and jurisprudential evidence and Formosa (Taiwan), together with all islands are absolutely untenable. appertaining or belonging to the said island of During the negotiations on the normalization Formosa”. After the end of the Second World War, of China-Japan relations in 1972 and on the China recovered the territories invaded and signing of the Sino-Japanese Treaty of Peace and occupied by Japan such as Taiwan and the Penghu Friendship in 1978, the then leaders of the two 34 NEWS FROM CHINA /SEPTEMBER 2012

countries, acting in the larger interest of China- confrontation. To advance the China-Japan Japan relations, reached important understanding strategic relationship of mutual benefit serves the and common ground on “leaving the issue of the fundamental interests of the two countries and two Diaoyu Island to be resolved later”. This opened peoples and is conducive to peace, stability and the door to normalization of China-Japan relations development of the region. Yet, to ensure sound and was followed by tremendous progress in and stable development of China-Japan relations, China-Japan relations and stability and tranquility the Japanese side needs to work together and move in East Asia in the following 40 years. Now, if the in the same direction with China. The “purchase” Japanese authorities should deny and negate the of the Diaoyu Island by the Japanese government previous common understanding reached between runs counter to the goal of upholding the larger the two countries, then how could the situation of interest of China-Japan relations. the Diaoyu Island remain stable? How could The Chinese government solemnly states that China-Japan relations continue to grow smoothly? the Japanese government’s so-called “purchase” And how could Japan ever win trust from its of the Diaoyu Island is totally illegal and invalid. neighbors and people of the world? It does not change, not even in the slightest way, The Japanese government has repeatedly the historical fact of Japan’s occupation of Chinese stirred up troubles in recent years on the issue of territory, nor will it alter China’s territorial the Diaoyu Island. Particularly since the start of sovereignty over the Diaoyu Island and its affiliated the year, the Japanese government has endorsed islands. Long gone are the days when the Chinese rightwing forces to clamor for the “purchase” of nation was subject to bullying and humiliation the Diaoyu Island and some of its affiliated islands from others. The Chinese government will not sit in an attempt to pave the way for a government idly by watching its territorial sovereignty being “purchase” of the islands. People have reason to infringed upon. The Chinese side strongly urges believe that what Japan did regarding the Diaoyu the Japanese side to immediately stop all actions Island was nothing accidental. The political that may undermine China’s territorial sovereignty. tendency these actions point to may well put people Japan should truly come back to the very on the alert. We cannot but ask: where is Japan understanding and common ground reached heading to? Can anyone rest assured of Japan’s between the two sides, and should return to the future course of development? track of negotiated settlement of the dispute. The Chinese government has always attached Should the Japanese side insist on going its own importance to developing relations with Japan. way, it shall have to bear all serious consequences China and Japan and the Chinese and Japanese arising therefrom. peoples can live together only in friendship, not

Diaoyu Islands Baseline Announcement Significant: Chinese Diplomat

Beijing, Sept. 13 (Xinhua) — The Chinese Chinese diplomat has explained. government’s announcement of the baselines of ”By doing so, we can proclaim to the the territorial waters of the Diaoyu Islands and international community our indisputable their affiliated islets is of great significance, a sovereignty over the Diaoyu Islands and the firm NEWS FROM CHINA /SEPTEMBER 2012 35

determination of our government and people to toward the ocean.Deng suggested that, after the safeguard our territorial sovereignty and maritime delimiting of these baselines, the Chinese interests,” Deng Zhonghua, head of the government will promote the administration of the Department of Boundary and Ocean Affairs with Diaoyu Islands steadily according to the actual the Foreign Ministry, said in an interview with situation. China Central Television on Thursday. China has accumulated rich experience on the It is also a powerful countermeasure and administration of the territorial sea and the deterrent to behaviors that infringe upon China’s contiguous zone in the past several decades and territorial sovereignty. In accordance with formulated a mechanism, he said. international laws, China will file a copy of the In the next stage, China will administrate the table of coordinates and charts with UN Secretary- Diaoyu Islands according to Chinese and General Ban Ki-moon, Deng said. international law, such as by providing weather The baseline announcement is an important forecasting and maritime environment forecasting step for China to improve the territorial water for the islands and their surrounding waters, system, according to Deng. which has been done since Tuesday; depicting a In defining the boundaries of the territorial and detailed chart of the Diaoyu Islands and their internal waters, China has the legal basis for its adjacent waters so as to facilitate vessels passing jurisdiction of the waters surrounding the Diaoyu by the area, said the director-general. Islands in line with its domestic law and Japan’s representation on China’s move to international law, he continued. delimit and publish the baselines of the territorial The diplomat introduced the concepts of sea of the Diaoyu Islands is ridiculous, territorial sea, contiguous zone, exclusive economic unreasonable and unacceptable to China, zone, and baseline. In particular, he explained the according to Deng. baselines of the territorial sea of the Diaoyu Islands He agreed with the huge number of other key and its affiliated islets announced by the Chinese Chinese figures to have spoken up on the issue that government on Sept. 10. Japan’s so called “purchase” and other acts Deng said that, according to the statement on implemented on the Diaoyu Islands are illegal. territorial sea made by China in 1958, the nation The farce Japan directed and staged is invalid has set 12 nautical miles as the width of its in terms of law and ridiculous in terms of reason, territorial sea. China promulgated the Law of the Deng said. People’s Republic of China on the Territorial Sea No matter how Japan explains and and the Contiguous Zone in 1992, thus formulating whitewashes its acts, they all point to the fact that this basic system in the form of law. Japan illegally transacted Chinese territory, thus China announced a first batch of base points China has strongly opposed Japan’s acts. As these and baselines for the country’s territorial sea in islands are China’s inherent territory, China’s 1996, delineating baselines of most coastal sections actions are of its own business. It is exercising the of the mainland and the Xisha Islands, he told the rights enshrined by international law and assuming interviewer. the obligations, Deng said, urging other countries and The baselines of the Diaoyu Islands are individuals not to make irresponsible comments. delimited in accordance with the 17 base points of China has already taken countermeasures and China’s territorial sea selected from them, Deng will continue to do so in response to any acts that said, adding that China’s territorial sea is the undermine Chinese territories and sovereignty, he extension of 12 nautical miles from these baselines added. 36 NEWS FROM CHINA /SEPTEMBER 2012

Chinese Surveillance Ships Start Patrol Around Diaoyu Islands

Beijing, Sept 14 (Xinhua) — Two Chinese Islands and their affiliated islets, as well as the surveillance ship fleets have arrived at waters names and coordinates of 17 base points.These law around Diaoyu Islands and its affiliated islets enforcement and patrol activities are aimed to Friday morning and started patrol and law demonstrate China’s jurisdiction over the Diaoyu enforcement there.It is the first time for Chinese Islands and its affiliated islets and ensure the surveillance ships to patrol there after the Chinese country’s maritime interests, according to a government announced on Monday the base points government statement. and baselines of the territorial waters of the Diaoyu

Chinese Ambassador Zhang Yan Briefs Indian Media on the Issue of Diaoyu Islands

On September 17, 2012, Chinese Ambassador Diaoyu Islands has aroused great indignation of Zhang Yan held a press briefing on the Issue of the Chinese government and people. Recently, Diaoyu Islands. He comprehensively expounded China announced base points and baselines of the to the media on China’s solemn position on the Diaoyu Islands and China’s series of measures to safeguard the sovereignty and territorial integrity. Then he answered some questions. Ambassador Zhang said that Diaoyu Island and its affiliated islets have been an inherent part of Chinese territory since ancient times, and China has indisputable historical evidence and legal basis to support this claim. The so-called “purchase” of Diaoyu Islands by Japanese government is totally illegal and invalid. The Chinese government and people have expressed firm opposition to and territorial sea of Diaoyu Islands and deposited strong indignation over this action. Any unilateral related coordinates table and chart of the base move made by Japan with regard to the Diaoyu points to the United Nations. We also send Islands cannot change the fact that these islands maritime surveillance vessels to the waters of belong to China. Diaoyu Islands to exercise the law enforcement Ambassador Zhang pointed out that the wrong patrol mission. Furthermore, we decided to present actions taken by the Government of Japan on the the Partial Submission Concerning the Outer Limits NEWS FROM CHINA /SEPTEMBER 2012 37

of the Continental Shelf beyond 200 Nautical Miles harm China’s territorial sovereignty and return as in the East China Sea to the UN Commission on quickly as possible to the common understanding the Limits of the Continental Shelf. All these reached between the two sides and to the track of measures demonstrated the firm resolve of the settling disputes through negotiations. Chinese government and people to safeguard Ambassador Zhang took questions on China’s sovereign right. principles of handling territorial disputes, impacts Ambassdor Zhang stressed that the Chinese of Diaoyu Islands to China-Japan economic and government has always been committed to trade relations, US impact on Diaoyu Islands issue, safeguarding regional peace, stability and whether China-Japan dispute would escalate, the development. The so-called “purchase” of Diaoyu safety of foreigners and security of foreign agencies Islands farce was stirred up by the Japanese in China. government and the right-wing forces. The current Journalists from PTI, IANS, UNI, The Hindu and difficult situation was caused solely by the Japanese The Navabharat Times attended the briefing. side. Japan must immediately stop all actions that

Small Islands, Big Stakes

Japan’s moves to seize the Diaoyu Islands have When China and Japan normalized diplomatic aroused the ire of the Chinese. Activists from Hong relations in 1972, leaders of the two countries Kong, indignant about repeated provocations agreed to set aside differences over the sovereignty ‘especially Japanese politicians’ vows to of the Diaoyu Islands to clear the way for a “nationalize” the islands in recent months, landed renewed relationship. The Chinese Government on one of the isles to assert China’s sovereignty on has since taken a prudent stance on this issue in August 15, the 67th anniversary of Japan’s the hope that the territorial spat will not hinder surrender in World War II. progress in Sino-Japanese relations. China has also The Diaoyu Islands, which lie in the East China proposed the idea that the two neighbors could Sea 120 nautical miles northeast of Taiwan, have explore possibilities to jointly develop resources in been on China’s official atlas for centuries. In disputed areas before deep-seated rows over coastal defense maps drawn in 1561 and 1621, sovereignty are settled. Joint development efforts Chinese generals marked the islands as outposts may lead to enhanced mutual trust and against attacks from Japanese pirates. Defeated in understanding, which China believes are the Sino-Japanese War of 1894-95, China was conducive to the delivery of a solution. forced to cede the islands, along with Taiwan and The Japanese authorities, however, have the Penghu Archipelago, to Japan. While Taiwan ignored China’s plea. To the disappointment of the and the Penghu Archipelago were returned Chinese side, they have continued to stoke disputes following the end of World War II, the Diaoyu in an attempt to annex the islands as part of their Islands, which were geographically affiliated to efforts to expand the island country’s strategic Taiwan, were wrongfully incorporated into the frontiers. These efforts are also evidenced by Japan’s Ryukyu zone under U.S. control. The United States conflicting territorial claims over a number of later transferred the jurisdiction of the islands to islands with South Korea and Russia. Japan. Japanese right-wing groups, which are gaining 38 NEWS FROM CHINA /SEPTEMBER 2012 momentum against the backdrop of ongoing refrain from yielding to dangerous right-wing economic and political woes in Japan, have only sentiments. added fuel to the tensions. Chinese analysts believe It is also important that the United States, the they are bent on playing up territorial disputes with country that sowed the seeds for discord out of Japan’s neighbors with the ulterior motive of Cold War considerations, makes a sober-minded soliciting public support for their cause. They are judgment. Setbacks in relations between China and the same group that clings to extreme nationalism Japan, the two biggest economies of Asia with and refuses to repent for Japan’s atrocities during pivotal roles to play in many global issues, are World War II. To prevent further damage to Sino- bound to take a toll on the regional economy as Japanese relations, the Japanese authorities should well as peace and stability in the Asia-Pacific, a heed China’s opinion, take a long-term view and prospect that does not serve U.S. interests at all.

Dangerous Games in Northeast Asia Japan stirs up a new round of territorial disputes in its neighborhood by Ding Ying

Japan has recently dug itself into the center of territorial rows with its neighbors in Northeast Asia. It is embroiled in island disputes with Russia and South Korea. In addition, the dispute over the Diaoyu Islands between China and Japan has emerged as a focal point of contention. Chinese observers pointed to Japan’s economic interests, U.S. influence and politicians’ personal ambitions as the root of the renewed territorial disputes. Some warned that Japan could take a very tough stance on these issues, adding that its neighbors should be prepared to deal with a difficult diplomatic situation. MEDVEDEV ON DISPUTED ISLAND: Then Russian President Dmitry Medvedev visits an island in the Southern Kuril Islands on November 1, Causes of Contention 2010, the first visit by a sitting Russian president to the disputed islands between Russia and Japan (CFP) Conflicting interests always form the core of international disputes. Territorial disputes Southern Kuril Islands, known in Japan as are often seen as the concentration of complicated Northern Territories, on July 3, drawing strong interests between different parties. The most recent condemnation from Japan. South Korean round of contention ramped up in July. Russian President Lee Myung Bak’s landing on Dokdo, Prime Minister Dmitry Medvedev landed on the which the Japanese call Takeshima, on August 10 NEWS FROM CHINA /SEPTEMBER 2012 39

led to Japan’s threat to take the dispute to the with China Foreign Affairs University, believed International Court of Justice. that all the territorial disputes in Northeast Asia Seven Chinese activists soon thereafter were had connections with domestic situations in the illegally detained by Japanese authorities for related countries. For example, he said, Lee’s landing on the Diaoyu Islands on August 15, a stepping on Dokdo on August 10 happened day marking Japan’s surrender in World War II. because of domestic pressure prior to the upcoming Then, a total of 150 Japanese lawmakers and presidential election. In July, Japan declared members of right-wing groups went to the waters territorial claims on Dokdo in a defense surrounding the Diaoyu Islands to mourn soldiers whitepaper, triggering strong protest from South who died in World War II, and 10 of them set foot Korea. Previously, Lee had maintained a close on the Diaoyu Islands on August 19. These relationship with Japan, said Zhou, which put the successive events have rapidly heightened tensions South Korean leader in an awkward position. in Northeast Asia. Outsiders may ask why Japan Zhou pointed out that Lee tried to get political has suddenly run into so many territorial disputes support and votes by taking a tough attitude to with its neighbors. “While the disputes have prove he is a patriotic president who will strongly different historical backgrounds, the Japanese protect territorial sovereignty. Government’s recent ocean exploration strategy is On the Japanese side, Noda also has the task a prime reason for escalating tensions between of winning support in the coming elections. As Japan and its neighbors,” said Zhao Xinli, a scholar Zhou explained, since Noda and his Democratic on Japanese studies with the Communication Party of Japan are comparatively weak when University of China, to Beijing Review. dealing with domestic situations, especially in the He explained that Japan has sped up the pace country’s economic recovery, he has to show of exploring ocean resources in recent years, strength in the diplomatic field to display his especially after Yoshihiko Noda became prime administration’s achievement. “The inevitable minister last August. Noda recently stressed that Japan’s top strategy for reviving the country should be ocean exploitation in a speech at Waseda University. He said Japan owns an exploitable ocean area 12 times that of its land territory. Noda pointed out that the ocean area under Japanese control is the sixth biggest in the world, while the area of deep sea at a depth of 5,000 meters under Japan’s jurisdiction is the largest worldwide. Zhao concluded that given Japan’s decision to focus on ocean resource exploitation, it will naturally maintain a tough stance on disputed islands. SOUTH KOREA’S MARK: South Korean President Lee Myung Bak (second Zhou Yongsheng, a professor left) visits Dokdo on August 10 (CFP) 40 NEWS FROM CHINA /SEPTEMBER 2012

outcome is Japan turning its neighbors into of prime ministers make it difficult for Japan’s enemies,” said Zhou. Observers have said that U.S. domestic and diplomatic policies to be coherent. influence is another important reason behind the The recent replacement of ambassadors is the current situation in Northeast Asia, as Tokyo is corollary of Japan’s unstable political situation. He Washington’s military ally in East Asia. said although the decision doesn’t necessarily mean Zhou said as it shifts its focus to the Asia- Japan will take a tougher stance on territorial Pacific region, the United States encouraged Japan disputes, it does reflect Noda’s determination to to conduct a strategy of fierce confrontation with adjust the country’s diplomatic policy. Current China, which indirectly led to the escalation of Japanese Ambassador to China Uichiro Niwa’s territorial disputes in the area. He explained that successor, Shinichi Nishimiya, is very close with the U.S. Asia-Pacific policy also created similar the United States, showing the Noda effects in Southeast Asia, bringing out conflicts administration’s consideration of the Untied States. between China and the Philippines. However, “Whoever the next ambassador to China is will Zhou said, Washington does not want to see armed not completely change the current situation conflicts break out, forcing the United States to between China and Japan. There are difficulties, choose sides, which doesn’t meet its interests. Zhao but there is also hope,” Zhao said. agreed that the United States is an influential party Zhou agreed that the transfer of diplomats is behind these disputes. He stressed that related to recent territorial disturbances. He said Washington encouraged Japan to take a tough the Japanese Government is trying to achieve a stance on the issues, and then used the ensuing diplomatic breakthrough by rotating personnel. squabbles in the region as an excuse to increase its Niwa publicly opposed Tokyo Governor Shintaro presence in Asia. However, he believed Ishihara’s plan of “purchasing” the Diaoyu Islands Washington will not put Japan’s state interests in April because it would jeopardize China-Japan above its own, and will therefore not act as Japan’s relations. Zhou said as Noda declared plans to ally over these disputes. Zhao also noted that “nationalize” the Diaoyu Islands, ambassadors like there’s a strong sentiment in Japan calling on the Niwa are now treated as obstacles to the Japanese Government to stop the current “nationalization” plan. Unlike Zhao, Zhou diplomatic strategy of fully relying on the United worried that the ambassador shift hints Japan’s States. China policy will fully fall under the control of Japan’s right-wing forces, hardening its stance on Future of Territorial Feuds the Diaoyu Islands. He warned that Japan, while Japan has recently decided to replace its being practical in diplomatic relations, could adopt ambassadors to China, South Korea and the a fierce orientation through the media, public United States. Observers believe this is a sign of diplomacy, military exercises, the enlargement of the Noda administration’s changing foreign policy. weaponry and the expansion of its armed forces On August 22, Noda asserted that he had nothing to fight for territory. to do with the new appointment, and the decision Nevertheless, Zhou suggested China should was made entirely by the Japanese Ministry of stay calm on the Diaoyu Islands issue. He said even Foreign Affairs. The statement suggests Noda is though Japan controls the islands, no state-level losing control over some areas of the government, leader has set foot on the islands. “We should be revealing an internal instability in the Noda patient in dealing with Japan and the United administration. States,” he said, adding that a military solution is Zhao pointed out that frequent replacements not a good option. But he also worried that both NEWS FROM CHINA /SEPTEMBER 2012 41

sides are very emotional about the issue now, situation. Territorial games such as this are a which is detrimental to the China-Japan constant danger—for the involved countries, and relationship and the whole Northeast Asian for the region as a whole.

IV. DOMESTIC AFFAIRS

China Paves Way for Leadership Reshuffle

by Fu Shuangqi

China is busy preparing for the upcoming 18th from November 2011 to June this year in 40 election National Congress of Communist Party of China units across the country. (CPC), scheduled to be held in the latter half of The CPC has elected younger and more this year, though the exact date is yet to be grassroots-level delegates to attend the congress, announced. said Wang Jingqing, deputy head of the The national congress, held every five years, is Organization Department of the CPC Central always considered the country’s top political event Committee, at a press conference in early August. since, according to the CPC organizational rules, An Olympic gold medalist, migrant workers a new CPC Central Committee will be elected by and rural doctors are with top Chinese leaders to delegates to the congress. attend the upcoming national congress. The CPC Central Committee commands the About 30.5 percent of the elected delegates are Party’s work and represents the Party when the from the grassroots level, up 2.1 percentage points national congress is not summoned, , according to from the previous congress in 2007. the CPC Constitution. The majority of delegates joined the CPC in Also, at the national congress, the new Central the late 1970s when China initiated the reform and Committee members will elect the members of the opening-up drive . CPC Central Committee Political Bureau and its A total of 1,640 delegates joined the Party after Standing Committee as well as the general November 1976, when the decade-long “Cultural secretary, often regarded as China’s top leadership. Revolution” was ended. That accounts for 72.2 Hu Jintao, the current general secretary of CPC percent of the total, 20.5 percentage points higher Central Committee, was first elected at the 16th than that of the congress five years ago. national congress in 2002 and re-elected at the 17th The average age of the delegates is 52, and 64.8 national congress in 2007. percent of the delegates are under age 55, Wang said. ELECTION OF DELEGATES There are 114 delegates under 35, accounting A total of 2,270 delegates will represent more for five percent of the total, 1.9 percentage points than 82 million CPC members to attend the higher than the previous congress. upcoming congress, 50 more than those to the 17th The youngest delegate is Jiao Liuyang, the congress. London Olympics swimming champion in the The election of these delegates was carried out women’s 200m butterfly event. She was born in 42 NEWS FROM CHINA /SEPTEMBER 2012

March 1990 and joined the Party in 2008. of the candidates, shortlisting, and final voting. The oldest is former mayor of Beijing Jiao To ensure the election of more outstanding Ruoyu, who was born in December 1915 and delegates, the CPC has, for the first time, carried joined the CPC in 1936. The two are not related. out a multi-candidate survey on the preliminary “The wide age span shows that the CPC’s cause candidates of the delegates to the upcoming Party has been passed from the older generation to the congress. younger generation and maintained its dynamics,” The loss margins in electing delegates to the Wang said. 18th CPC National Congress were raised to 15 Among all the delegates to the congress, the percent or above nationwide, according to the number of workers saw the sharpest increase, from Organization Department of the CPC Central 51 in the 17th congress to the current 169, including Committee. 26 migrant workers. Some local Party committees have, for the first They work in a variety of factories in the time, publicized the list of delegates’ names via industrial sector, such as mining, steel and media channels, in a bid to mobilize the machinery factories, and they hold different kinds participation of, and solicit feedback from, Party of positions in the service sector, including those members in the election. involved in transport, utilities, sanitation, financial The election process was “open and business and trade. transparent,” with each Party member having Also, grassroots delegates include rural access to election information. Up to 98 percent of teachers, village doctors, farmers as well as village Party members participated in the election of Party officials. delegates to the Party congress, according to Deng Female delegates account for 23 percent of the Shengming, spokesman for the Organization total and ethnic minorities account for 11 percent. Department of the CPC Central Committee. According to established practices, the CPC CPC members participated and supervised the Central Committee will also invite some Party election through party member meetings, members who have retired from their leadership published notices and text messages, Deng said, posts as special delegates to the congress, Wang adding that the media have covered the whole said. process of the election. “The makeup of delegates is appropriate and “The party also solicited opinions from all ratios set by the CPC Central Committee to members who could not be attached to a certain realize full representativeness have been fulfilled,” party unit, as well as retired or ailing members, he said. via phone calls, emails and visits,” Deng said. According to the criteria set by the CPC Central He added: “It is also the first time we held a Committee, delegates to the national congress press conference to introduce the election of should have firm faith and a correct political delegates.” stance. They should also be morally upright, The CPC Central Committee imposed strict excellent at their work and qualified for their disciplines on the election to ensure a sound and duties, Wang said. healthy process and banned bribery and pulling strings to draw votes. INTRA-PARTY DEMOCRACY The CPC Central Commission for Discipline The election of delegates, a painstaking process, Inspection and the Organization Department of included five procedures— nomination of the CPC Central Committee sent inspectors to candidates, qualification checks, public notification supervise and check the elections at the local level. NEWS FROM CHINA /SEPTEMBER 2012 43

According to a survey by the Organization Among them, 37 are female and 50 are from Department of the CPC Central Committee, about ethnic minority groups. About 98 percent of them 97 percent of the Party members were satisfied have received college education and 72 percent of with the election. them have either a master’s degree or doctorate. A large number of newly elected officials are LOCAL LEADERSHIP RESHUFFLE familiar with Party affairs and government work This year not only expects a leadership reshuffle and, in terms of age, experience, skills and at the central level but also saw the reshuffles at personalities, have contributed to balanced and the local levels. effective provincial leadership, the statement says. Thirty-one CPC provincial committees changed Professor Wang Yukai from the National their leadership through internal elections that ran Academy of Administration said provincial leaders from the fourth quarter of last year to early July. tend to be younger and better educated in recent The Party committees of 374 prefectures and years. cities, 2,789 counties and urban districts and “This is conducive to sustaining the vitality of 33,368 townships across the country elected new the CPC,” he said. leading officials from December 2010 to April this In addition, 4,384 standing committee year. members were elected in Party committees of The Organization Department of the CPC prefectures or the same-level cities, and 30,028 were Central Committee in a statement describes the elected at the county or urban district level, local Party committee leadership reshuffle as a according to the statement. Over 90 percent of “complete success,” saying the process took place them had received a college or postgraduate in an “orderly, sound and steady manner.” education. “The leadership reshuffle of local Party Compared with previous elections, the CPC has committees occurred during a crucial period for paid more attention to officials’ working experience the country. It is a significant event in the Party’s at the grassroots level, especially chief officials, political life,” the statement says. Prof. Wang said. According to the organizational rules of the The Party will need officials who have rich CPC, standing committee members, who constitute experience in governance, as easing relations with the core of local leadership, are elected by local the public and boosting the economy will pose Party committee members. tough challenges in the future, he said. Local Party committee members are elected by More importance has been placed on the delegates at a regional Party congress. officials’ behavior as well. Candidates have been At the provincial level, 404 standing committee strictly scrutinized by Party discipline departments members have been elected nationwide. They are to ensure they are free of corruption and scandal, 54 years old on average and one fourth of them the statement says. are below 50, according to the statement.

FACTBOX: China’s Economic Development Since 2002

The following are facts and figures from the ments since the 16th National Congress of the Com- National Bureau of Statistics which has released a munist Party of China in 2002: series of reports on the country’s economic achieve- — China’s gross domestic product (GDP) ex- 44 NEWS FROM CHINA /SEPTEMBER 2012

panded by an average annual rate of 10.7 percent — Foreign direct investment (FDI) into China during the 2003-2011 period. totaled 716.4 billion U.S. dollars during the 2003- — The country’s GDP reached 47.2 trillion 2011 period. yuan (7.43 trillion U.S. dollars) in 2011, up 150 — Retail sales of consumer goods totaled percent from 2002 after adjusting for inflation. 18.39 trillion yuan in 2011, up 280 percent from — The proportion of China’s GDP in the 2002, realizing an annual increase of 16.1 percent. world economy rose from 4.4 percent in 2002 to — The Engel’s coefficient for urban residents about 10 percent in 2011. dropped 1.4 percentage points from 2002 to 36.3 — The GDP per capita reached 35,083 yuan percent in 2011, while the coefficient for rural resi- in 2011, up 140 percent from 2002 after adjusting dents dropped 5.8 percentage points from 2002 to for inflation, representing an average annual 40.4 percent last year. growth of 10.1 percent. — Retail sales of consumer goods expanded — Calculating with average exchange rates, 2.8 times during the past 10 years, or 16.1 percent China’s GDP per capita rose from 1,135 U.S. dol- annually, to hit 18.4 trillion yuan (2.92 trillion U.S. lars in 2002 to 5,432 U.S. dollars in 2011. dollars) in 2011. — Total fiscal revenues stood at 10.37 tril- — With government policies to boost farmers’ lion yuan in 2011, up 450 percent from 2002, rep- buying capacity, the growth gap between con- resenting an average annual growth of 20.8 per- sumer goods sales in urban and rural areas nar- cent. rowed to less than 1 percentage point in 2011 from — Foreign exchange reserves reached 3.18 7.7 percentage points in 2002. trillion U.S. dollars by the end of 2011, represent- — Vigorous housing purchases boosted sales ing an annual growth rate of 30.7 percent. of home appliances as well as building and deco- — From 2003 to 2011, the primary industry rating materials. grew by an annual rate of 4.6 percent, the second- — Major Chinese auto retailers recorded an ary industry by 11.9 percent and the tertiary in- annual growth rate of 23.5 percent in sales from dustry by 11.1 percent. 2003 to 2011, and every 100 urban households had — The contribution of domestic demand to 18.6 units of vehicles at the end of last year, com- China’s economic growth rose from 92.4 percent pared with 0.9 at the end of 2002. in 2002 to 104.1 percent in 2011, while contribu- — Sales of cosmetics, jewelry, sporting goods, tions from foreign demand dropped from 7.6 per- entertainment goods, electronic publications, au- cent in 2002 to minus 4.1 percent in 2011. dio-visual products, cultural and office goods, — The urbanization rate stood at 51.3 per- newspapers and magazines, and children’s toys cent in 2011, up 12.2 percentage points from 2002. all expanded at an annual rate of over 10 percent — Total grain production reached 571.21 during the past 10 years. million tonnes in 2011, up 25 percent from 2002, — Electronic telecommunications products representing an annual growth of 2.5 percent. were also hot sellers in the period, with every 100 — Total fixed-asset investment during the urban households owning 81.9 computers and 2003-2011 period amounted to 144.9 trillion yuan, 205.3 mobile phones, respectively, at the end of marking an annual growth rate of 25.6 percent. 2011, up from 20.6 and 62.9 in 2002. — Total goods exports and imports reached — Home appliances sold in rural areas under 3.64 trillion U.S. dollars in 2011, up 490 percent the government’s subsidy programs since 2009 from 2002, achieving an annual increase of 21.7 reached 218 million units, valued at a total of 505.9 percent. billion yuan, as of the end of 2011. NEWS FROM CHINA /SEPTEMBER 2012 45

— To make shopping more convenient for ru- been established or renovated across the nation by ral residents, some 600,000 countryside stores had the end of 2011.

Premier Wen Stresses Development, Stability for Xinjiang

Urumqi, Sept. 5 (Xinhua) — Premier Wen Jiabao has stressed during his inspection tour of Xinjiang Uygur Autonomous Region from Sept. 3 to 5 that promoting leapfrog development in the area is key to its long-term stability. “The development and stability of Xinjiang is closely related to the country’s overall situation concerning reform, development and security. We must step up efforts to build a more prosperous, harmonious and stable Xinjiang,” Wen said, Chinese Premier Wen Jiabao (4th L, front) meets with villagers at a village in Kashgar, northwest China’s Xinjiang Uygur Autonomous Region, Sept. 4, 2012. urging full use of local resources Premier Wen has stressed during his inspection tour of Xinjiang from Sept. 3 to 5 and improvements in people’s that promoting leapfrog development in the area is key to its long-term stability. livelihoods. (Xinhua/Li Xueren) The premier called for the region to accelerate the construction of major bases for gas, oil, coal and wind energy, and foster pillar industries in these fields to lead development in other sectors. According to Wen, both infrastructure construction and various industrial and commercial projects should focus on improving local people’s livelihoods by increasing employment and income. Meanwhile, he called for the region to explore local resources in a sustainable way, with strengthened protection for forests, glaciers, rivers, marsh and oases. “Even those projects aiming to protect the ecological environment 46 NEWS FROM CHINA /SEPTEMBER 2012

should take precautions not to damage water Highlighting ethnic unity and social stability, resources in any way,” Wen said, warning of Wen called on the Xinjiang government to unscientific sand control efforts. strengthen a sense of interdependence of all ethnic During his trip, the premier visited groups among local residents, with respect for the communities, vendors, schools, hospitals and habits and traditions of minority groups and companies. protection of ethnic people’s cultures and rights. He underlined a series of livelihood-improving During his visit, Wen also met with officials fields that should be high on the agenda of local who have been sent to Xinjiang from Shanghai, government, citing education, medical services, Shandong, Guangdong and Shenzhen to back the social insurance and poverty relief. region’s development. Noting that Xinjiang’s neighboring countries Wen noted that the campaign to support are among the fastest-developing energy markets Xinjiang will be more onerous under the new and potential major consumers, Wen urged the situations, urging related provinces and groups to region to sensibly develop its processing trade, map out advanced projects and products that are expand exports of products with local flavors and oriented toward people’s livelihoods. step up building commercial and trade centers.

New Materials Buzz Pushes China’s Economic Restructuring

by Xinhua Writers Zhu Shaobin, Wang Zichen

Harbin, Sept. 7 (Xinhua) — The total output of during blasts at coal mines. the country’s advanced materials sector expanded “Advanced materials are fundamental in by 150 billion yuan (24 billion U.S. dollars) to more promoting the upgrade of traditional industries. than 800 billion yuan last year, showing quick- The sector also provides important support for the paced growth that officials and experts say will development of the countries’ newly-emerging persist in the coming years and trigger economic strategic industries,” Su said. upgrade. These strategically-important industries include The annual growth of the sector in recent years energy conservation and environmental protection, has exceeded 20 percent on average, according to new energy, new-energy cars and high-end Vice Minister of Industry and Information equipment manufacturing. Technology Su Bo, who made the remarks at an China currently boasts 18 key advanced industrial exposition for advanced materials being materials technologies such as the making of held in Harbin, capital of northeast China’s special-quality steel products, advanced aluminum Heilongjiang Province. alloy and materials for electric car batteries, The expo, the second of its kind held in the according to Gan Yong, vice president of the world’s second-largest economy, has attracted Chinese Academy of Engineering. nearly 1,000 enterprises to display life-changing Meanwhile, the country’s production products ranging from environmentally-friendly capacities for special-quality stainless steel, tableware made from natural starch and heat- photovoltaic materials, glass fiber and functional trapping walls for home decoration, to impact- rare earth products, among others, already hold absorbing steel cabins used as emergency shelters top spots worldwide, Gan said. NEWS FROM CHINA /SEPTEMBER 2012 47

According to a development plan publicized are also robustly developing new materials. Data in February by the government, the country aims show the output of the advanced materials sector to expand the industrial output of the sector to 2 hit 310 billion yuan in Hunan last year, marking trillion yuan by 2015. the fourth consecutive year of growth above 30 Heilongjiang Province, which neighbors percent, while Jiangsu has been making the sector Russia, has been vigorously developing the sector a key area in promoting economic restructuring. on top of its resource advantages and financial Ren Xudong, vice president of Aluminum support in recent years. Corporation of China, said the group is making The Harbin City Enterprise Credit Financing the production of high-end non-ferrous metals one Guarantee Service Center has helped secure 2.7 of its two development strategies, in addition to its billion yuan of credit for local companies engaged role as a resources supplier. in the sector since last year, Wang Li, the head of Vice President of China Minmetals Corporation the center, told Xinhua. Li Fuli also said the group invested nearly 1.2 Around 160 local enterprises in the industry billion yuan last year in scientific research and reported 46.2 billion yuan of gross output last year, development related to innovations in its new up 29.8 percent year on year. Their main business materials business. revenues hit 45.5 billion yuan, up 27.5 percent, According to Gan Yong, the country has according to a press release from the provincial greater room for the industrialization of advanced government’s press office. materials in the next five to ten years only if existing The province mainly produces polymer problems are addressed, such as low levels of materials, high-end structural steel, inorganic innovations and investment for scientific research nonmetallic materials and composites. as well as poor marketing for mass applications. Other provinces such as Jiangsu and Hunan

Enhanced Precision

— Revisions to the environmental protection law will allow greater public participation by Yuan Yuan

Pan Shiyi, a real estate magnate in Beijing, comparatively larger micro-particles of dust, dirt, appeared on an online talk show—Friend—with soot, smoke and liquid droplets. Bei Zhicheng, a software businessman, on Pan has been keeping an eye on PM 2.5 data September 5. This time, their topic had nothing in Beijing for one year. “I came across this issue in to do with their businesses, but a tiny unit of August 2011 and learned of its harm on measurement, best known by its abbreviation: environment and our health,” Pan said. PM 2.5. Air is of good quality when the PM 2.5 The term refers to airborne particulate matter measurement is below 70 micrograms per cubic less than 2.5 micrometers in diameter. Such meter. But the PM 2.5 concentration in Beijing has pollutants are small enough to penetrate lung remained worse. From August 29 to 30, the reading tissue, posing far greater health risks than topped 280 micrograms per cubic meter at its peak 48 NEWS FROM CHINA /SEPTEMBER 2012

in the city, according to the Beijing Environmental Monitoring Center. Compared with Pan, Bei has been studying this issue for a much longer time. “I have had chronic sinus problems since high school, so I am very sensitive to dirty air,” Bei said. “Beijing’s air quality is getting worse every year and I have to install air purifiers in the apartment to deal with it.” According to statistics acquired by Bei, since the middle of the 1990s, the number of Beijing residents suffering from lung cancer increased threefold. “We have to do FLY IN BLUE SKY: Tourists at Dianchi Lake in southwest China’s Yunnan something to stop the situation Province feed black-headed gulls on February 16 (LIN YIGUANG) from worsening,” Bei said. the local government decided to cancel the project. In China, air quality monitors used to measure It is the latest in a string of protests sparked by only particulate matter less than 10 micrometers fears of environmental degradation. Data from the (PM 10), a considerably lower standard of precision. Ministry of Environmental Protection show the Particles within this range of measurement can be number of mass demonstrations related to four times the size of PM 2.5 particles, and are not environmental concerns has increased at an considered to be a form of environmental pollution annual rate of 30 percent. that poses significant risks to human health. With increasing numbers of protests against In late 2011, the Ministry of Environmental controversial industrial projects in China, members Protection started to publish PM 2.5 data for 33 of the Standing Committee of the National People’s cities. By the end of 2012, the number will increase Congress (NPC), the country’s top legislature, to 74. agreed that a draft amendment to the The new national standards preliminarily Environmental Protection Law should address passed by the Ministry of Environmental Protection rising public discontent at their bimonthly session last December expanded air quality readings to last month. include PM 2.5 and tightened rules for some already “Those protests, spurred by fears of monitored pollutants, such as PM 10 and nitrogen environmental degradation, have stirred oxides. nationwide discontent and stoked calls for Outdated Law expanding citizens’ rights and sufficiently consulting with local residents when assessing In recent years, there have been many cases of environmental impacts of proposed industrial people showing concerns for environmental projects,” said Xie Kechang, a lawmaker and problems across China. deputy to the NPC. On June 23, residents in Qidong, east China’s Xie revealed that in the first half of this year, Jiangsu Province, protested an industrial waste 192 cities on the Chinese mainland had acid rain, pipeline project. Hours after the demonstration, and PM 2.5 levels increased sharply in major NEWS FROM CHINA /SEPTEMBER 2012 49

industrial regions. concerning environmental quality, pollution- The average PM 2.5 level in Beijing and its related accidents and the collection and use of surrounding regions, the Yangtze River Delta and pollutant discharge fees to the public, as well as Shandong Peninsula in east China, the Pearl River allowing the public to request related information. Delta in the south and the Sichuan-Chongqing area Individuals and organizations have the right in the southwest is about 80 micrograms per cubic to request environmental information from the meter, significantly higher than the average level government and its environmental protection in the United States. agency at or above the county level. Such claims According to Xie, as booming industries should be responded to within a set time limit, consume massive amounts of water, soil, minerals, according to the draft amendment. labor and other resources, the public has less Moreover, since the discrepancies among tolerance for, and more awareness of, hazardous environmental data released by different pollution. “When the public has inadequate governmental departments on an overlapping channels for expressing their concerns and subject have caused some negative effects, a protecting their interests, the existing laws will not national system will be established to streamline foster environmental protection,” he said. environmental monitoring and evaluation practices “The Environmental Protection Law, which and ensure the consistency of the data, it said. went into effect in 1989, was created when China The draft also forbids depositing solid waste, just started a rapid industrialization process and substances containing heavy metals and other does not yet fit current economic and social detrimental substances on farmland. It calls for requirements,” said Wang Guangtao, Chairman caps on the total amount of major pollutants of the NPC’s Environmental Protection and discharged. Regions that exceed pollutant Resources Conservation Committee. “From 1995 discharge limits or fail to meet environmental to 2011, the NPC received a total of 78 motions to standards will face suspensions of current amend the law.” development projects that could cause more Wang said that China’s existing laws do have pollution. Furthermore, the draft grants fiscal rules requiring local governments to conduct support for environmental management and environmental assessments before approving drinking water protection in rural areas. The construction projects as well as guidelines control system for capping discharges has already “encouraging individuals and institutions to been included in the laws on the prevention and participate in the assessment.” However, such rules control of water contamination and air pollution, lack weight due to the absence of mandatory terms respectively. for governments to disclose assessment “The draft highlights the government’s information. responsibility and liability in environmental protection as well as the improvement of New Rules environmental management regulations, the The NPC Standing Committee on August 27 improvement of the country’s environmental started its first reading of a draft amendment to quality and the enterprises’ responsibility in the Environmental Protection Law. pollution prevention and control,” Wang said. The draft stresses the government’s role in Rita Fan Hsu Lai-tai, a member of the NPC environmental protection by adding a clause that Standing Committee, said that the government’s calls for governments and environmental releasing of environmental information in line with protection departments to release information the law will ensure people’s rights to know and 50 NEWS FROM CHINA /SEPTEMBER 2012

choose. As for enterprises, the draft requires them to “If people know the place they live in has cooperate with local environmental protection serious environmental pollution, they at least have departments to carry out on-site investigations, an option to move,” said Rita Fan, former President such as providing accurate statistics as well as the of the Legislative Council of the Hong Kong Special operation and maintenance of cleaning equipment. Administration Region. Cao Mingde, an environmental law professor Wu Xiaoling, a member of the NPC Standing at China University of Political Science and Law Committee and former Vice Governor of the in Beijing, said that the proposed obligation for People’s Bank of China, the country’s central bank, companies is meant to plug existing loopholes in proposed that all government projects should not the enforcement of environmental protection laws, be approved before environmental assessments are as enterprises often dodge government inspections carried out. by claiming that they could expose business secrets, Wu also proposed that the amendment should and some discharge pollutants during nights or adopt a current banking practice that sets weekends. environmental assessment as one of the premises “A detailed definition of rights and obligations for commercial banks to consider lending to of governments and companies can improve law enterprises or local governments. enforcement,” Cao said.

V. TIBET TODAY

A Tibetan Mother in Inland

Pan Yan, an ordinary teacher of Jinzhou Travelling from their hometown Tibet with the Vocational High School in southwest China’s average elevation of 4,000 meters to inland, these Zhejiang Province is one loved by her children. Tibetan children could not get used to the new In 2010, the first Tibetan class in Zhejiang environment immediately. Thus some of them Province, Jinzhou Vocational High School’s class were thinking of quitting school. In order to resolve 8 was established with 38 Tibetan students Tibetan students’ homesick and other negative enrolled from Tibet’s eight regions. thoughts, Pan Yan almost gave up all her rest to As a teacher in charge of the class 8 majoring accompany them. in Automotive Technology in 2010, Pan Yan Last February, Pan Yan invited all her Tibetan realized her heavy responsibility of taking care of students to experience their first Spring Festival in these children from remote Tibetan areas. inland at her house. Apart from teaching Chinese, Pan Yan devoted “That was the most joyful holiday in my life,” herself to taking care of these Tibetan students in Tsering recalled with a smile on his cheek. “Making their daily life. traditional Ningbo food at Mother Pan’s home is In the past two years, Pan Yan gave up more an unforgettable memory.” than 100 holidays to take care of her Tibetan “Ningbo is my second hometown and Mother students. In return, these students affectionately Pan is our second mother,” Kami, the monitor of call her “Mother Pan”. class 8, said. NEWS FROM CHINA /SEPTEMBER 2012 51

In a Tibetan boy’s letter, he described Pan Yan instruct these 38 Tibetan children after class and as the sun and moon that are the most beautiful selected 38 volunteers at the School to do one-to- creatures in Tibetan language. one Chinese practice in their rest time. “These Tibetan kids are lucky to study inland “Though my Tibetan students’ Chinese and as their Tibetan mother, I am also enjoying foundation is poor, the learning atmosphere is the happiness these lovely children bring to me,” really good,” said Pan Yan. Pan Yan said. “Mother Pan, today is Teacher’s Day. Tashi Pan Yan is a strict teacher in class. Beside delek!” teaching her students Chinese in class, she asked At the moment she heard that, Pan Yan felt other Chinese teachers with rich experience to she was the happiest mother in the world.

China Extends Free Education in Tibet to Preschool

Lhasa, Sept. 6 (Xinhua) — The government will Experts say preschool has been a weak link in extend a free education program in southwest the educational system in Tibet. Last year, only 35 China’s Tibet Autonomous Region starting from percent of preschool-age children in Tibet - 41,700 September to include all preschool children, an kids - were enrolled in kindergartens. unprecedented measure among the country’s The government has pledged to raise the ratio provincial-level regions. to 60 percent by 2015. For this year alone, 217 Children in Tibet will be able to enjoy 15 years kindergartens will be built or renovated to of free education from kindergarten to senior high accommodate increased enrollment, the school. Children in most parts of the country spokesman said. receive just nine years of free schooling. Tsepal, a local resident whose daughter is A spokesman with Tibet’s education enrolled at the Lhasa Experimental Kindergarten, department said Thursday that the welfare said she pays just 1,200 yuan for meals and program has covered rural kindergartens since last transportation fees each semester, down from year and will be extended to include urban public about 2,800 yuan last year. preschools this year, benefiting an additional “It is great. We have been able to save a lot of 38,000 children. money,” Tsepal said. The extended program is estimated to cost 69 For centuries, secular schools for the masses million yuan (10.9 million U.S. dollars), which will had struggled to take hold in Tibet, where be covered by the regional government, the monasteries have played a key role in the region’s spokesman said. predominantly Buddhist society. Children in Tibet’s kindergartens are taught in While the elite class was able to educate their both the Mandarin and Tibetan languages, the children in privileged schools, the vast majority of spokesman said. Tibetan parents had no option but to send their “The government is actively pushing for children to monasteries to become monks or have bilingual preschool education. Tibetan children in them learn how to raise cattle. kindergartens will learn their own language while Secular schools began to flourish in Tibetan being trained to communicate in Mandarin,” the areas under the Communist Party of China (CPC)’s spokesman said. leadership. In 1985, the government of Tibet 52 NEWS FROM CHINA /SEPTEMBER 2012

introduced free full-time boarding schools for reached more than 81 percent, up from 48 percent students starting at the kindergarten level and five years ago. going all the way to senior high school. “Now my children study everything at the In the regional capital of Lhasa, the municipal village primary school - math, Tibetan, Mandarin, government has significantly boosted its education English,” said Tserin Dorje, a farmer who lives in budget over the past five years - from 550 million suburban Lhasa. yuan in 2007 to 1.29 billion yuan in 2011, “They teach me English words sometimes. I am according to Dorje Dondrup, head of the city’s so proud of them. I hope they can have a better education department. future with this education,” he said. He said Lhasa’s senior high enrollment has

Tibetan Children to Receive Free Heart Surgery

Beijing, Sept. 18 (Xinhua) — Fourteen children Seventeen provinces and cities, as well as from southwest China’s Tibet Autonomous Region several Chinese companies, are providing free arrived in Beijing on Tuesday to receive free surgery medical aid to Tibetan children with congenital to treat their congenital heart disease. heart disease as part of a medical program The children were selected from 54 afflicted established by the regional Health Department in children in Lhasa after meeting surgery criteria, April 2012. said Xie Xianghui, deputy director of Lhasa’s The incidence of child congenital heart disease Health Bureau. in Tibet is 10 times higher than other parts of China The children will receive their surgery at the due to the region’s high elevation, said Gu Hong, Beijing Anzhen Hospital and Beijing Children’s deputy director of the children’s heart disease Hospital. center at the Beijing Anzhen Hospital.

Tibet to Receive 10 Million Tourists This Year

Lhasa, Sept. 3 (Xinhua) — Southwest China’s Tourism revenue over the past eight months Tibet Autonomous Region is expected to receive a jumped 30 percent year on year to 7.5 billion yuan. record 10 million-plus tourists this year, a local Yu attributed the boom to tour activities tourism official said Monday. organized this year. Such activities have run under These tourists will bring revenue of 12 billion the themes of Tibetan culture and scenic beauty, yuan (1.89 billion U.S. dollars), or 17 percent of such as mountains, snowy landscapes and the region’s gross domestic product (GDP), said sunshine. Yu Yungui, head of the Communist Party Large-scale advertising and various festivals, committee of the region’s tourism bureau. such as Tibetan New Year, have also helped attract Yu said more than 7 million domestic or tourists, he said. foreign tourists visited Tibet from January to Tibet is situated on the Qinghai-Tibetan August, up more than 25 percent year on year. Plateau, an area predominantly populated by NEWS FROM CHINA /SEPTEMBER 2012 53

ethnic Tibetans and prevailed by Buddhist culture. exceeding 25 billion yuan, according to Signature tourist destinations include the world’s government figures. highest peak Mount Qomolangma, the sacred lake The number of tourists traveling to Tibet has Nam Co and Tibetan Buddhism heritage sites such been growing by an average of 30 percent annually as Potala Palace, Jokhang Temple and Zhaxi in the past five years. Last year, more than 8.69 Lhunbo Monastery. million people visited Tibet, bringing in tourism Nearly 300,000 people in the region are revenue of 9.7 billion yuan. Authorities aim to see employed in the tourism sector with fixed assets 15 million tourists annually by 2015.

Tibet Needs Both Culture and Development

The ongoing Shoton Festival shows the world created the magnificent culture have the right to not only the smiles of Tibetan people, but also the enjoy modern civilization which the Tibetan people preservation and development of Tibetan culture, have also contributed a lot? which is completely different from the Dalai clique’s However, some foreign media outlets with propaganda. political intentions criticize the Chinese Some people who accepted the Dalai Lama’s government, like the topic of wielding economic defamatory statement of “culture genocide” in tools to divert local attentions from politics and Tibet blindly believe that development and assimilate Tibetan culture. modernization is to assimilate the uniqueness of Such criticism, almost made instinctively, Tibetan people and that Tibetan culture will be makes it doubtful whether the commentators have impaired and finally be destroyed. really been to Tibet themselves. Otherwise, why In fact, in many other places in the world, even do they keep voicing a clichéd perspective no in the United States and West Europe, such matter what changes have taken place in reality? phenomenon can be seen — an ancient ethnic Anyone who’s been to Tibet will be amazed by group and culture died out or will perish in a short the solid, established system of Tibetan culture. It or medium term. permeates every aspect of Tibetan life, such as diet, However, we don’t need to worry about the medicine, language, entertainment and so on. This extermination of Tibetan culture, because the is also why Tibetan culture has survived massive modernization of Tibet is totally different from that social shake-ups in the past millennium. Its vigor in many other countries and regions. should not be underestimated. While modernization and traditional culture Most important of all, no ordinary Tibetans is exist in harmony in Tibet Autonomous Region, willing to live in a backwater museum to be religion and secular groups are also thriving thanks exhibited to foreign visitors who can appraise how to the Chinese government’s efforts in protecting well their culture is “preserved.” Tibetan culture and religion, such as renovating Like every other ethnic group, Tibetans are monasteries and ethnic architectures there and interacting with other economies to infuse new popularizing Tibetan language. vigor into their own community. Economic growth When western people appreciate the spirit and and cultural prosperity are not in opposition. material culture in Tibet, would they think about Instead, they boost each other and Tibetan culture one thing: should the great people who have has got great benefits from Tibet’s development. 54 NEWS FROM CHINA /SEPTEMBER 2012

A Journey Along the Tibetan Border in March

Text & Photo by Chen Dan

Five long hours in the flight from Beijing to Lhasa, exhausted and drowsy, the sight of snow-covered mountains suddenly exhilarated me. This endless rolling sea of mountaintops told me that Tibet was close. Every time I saw the sweep of brown and white mountains, I felt a sense of excitement. Those bare rocks, exposed to fierce sunlight all year long, had distinctive lines engraved on them. I knew those lines well. They could Fortunately, luck was on our side this time. only be found here in Tibet.They were not only After 20 minutes of bumping and shaking, the carved on the land, but also chiseled on the faces plane managed to land.Legend has it that once a of its people. When these striking lines came into flight could not land in Lhasa for three consecutive view, we were already above Lhasa. days and had to return to Chengdu Airport. It was Our plane was tossed about like a leaf in the not until the fourth try that it finally landed on wind. Looking down, the green-ribbon of Lhasa Lhasa Gonggar Airport. One of the unfortunate River was shrouded by a veil of yellow dust. Every passengers on that flight happened to be our time I came to Tibet, I had to deal with this contact and escort for this trip: Ms. Ren Ni, difficulty. It was especially bad when winter turned Director of the Information Section of the Tibet into summer, when the airport was often shrouded Frontier Corps. in dust and sand almost every afternoon the planes Ren Ni, a tiny but pretty girl dressed in military found it very hard to land. camouflage, greeted us at the airport. Standing beside her were Nyima Tashi, the head of the Frontier Inspection Station at the airport, and several officers of the People’s Armed Police Forces stationed at the airport. We were immediately surrounded by warm smiles and firm handshakes. White Khadas were presented to us. For the first time in my life, I was received in a grand manner at an airport. This was a massive morale boost to Ms. Zhou Aiming, executive editor-in-chief of China’s Tibet

The winding mountain road into Dram magazine and me. Our weary faces and NEWS FROM CHINA /SEPTEMBER 2012 55

purple lips were soon lit up. We jumped into the off-road vehicle, left the airport, and set out for Shigatse, which would be the first stop on our Tibet border trip. Why did we come to Tibet in March? It was obvious to those who knew Tibet well that March was still very much winter time here. The oxygen level in the air was merely 1/3 of that in the hinterland. For those of us who came from Beijing, which is only 55 meters above sea level, to climb to 3700 meters within a day was pretty brutal for our Overlooking the Gonggar Airport in the sky. bodies to take. Quite a few stops on our itinerary were posts at elevations of 5000 meters or more - the highest was 5780 meters! I the political events and riots in Tibetan history had shuddered to think what was in store for two all taken place in March. It seemed to be the month women like us, who were not particularly strong. of choice for some organizations to create a Besides, in many places, the mountains were disturbance. To tell the truth, I was not beside covered with heavy snow, and roads were blocked. myself with joy with the arrangements for the trip, It was quite an unfriendly or hazardous natural which were completed by General Wulho environment. There were seven or eight stops in Phuchung, Political Commissar of the Tibet our original itinerary. I was not sure whether we Frontier Corps. would be able to reach them all. Moreover, those Altitude sickness hit us as predicted: more with some political awareness all knew that March than three hours’ driving left our heads reeling and was usually an eventful time for Tibet: several of the dizziness had turned into headaches when we reached the station of the Shigatse Detachment. First we completely lost our appetite, and then we could not even move our legs. When I first heard the horrible news of people being killed recently, my altitude sickness seemed to have become worse and our headaches more severe. Ms. Ren Ni told us that the first stop on our journey to Yadong had been cancelled,because two soldiers just lost their lives on duty in a road accident, and the Yadong border inspection station had been busy

The town of Dram taking care of the funeral 56 NEWS FROM CHINA /SEPTEMBER 2012

arrangements. We had to change our route.Our trip just got underway and already was surrounded by dark clouds! Oxygen tanks were sent to the room, in which I lay on the bed listlessly. I inhaled weakly through the tubes up my nose. The physical pain was a bit overwhelming, so I started complaining to Ren Ni, “your Political Commissar was fully aware that now is the hardest season in Tibet, so why did you insist we come now?” Ren Ni looked totally innocent, “he wanted you to come and see Ms. Liu Weiqiong talked with the author about the story of Dram Station. our troops at the most difficult times when we are faced with the toughest duties, so you can write about the officers March 11, 2012 and enlisted men performing their duty under We spent the night at Shigatse,which stood harsh conditions, thus painting a truly faithful at 3,860 meters above the sea level. I breathed portrait of them and lifting their spirits. Meanwhile, oxygen for an hour, and dropped into a troubled you can provide the outside world with some sleep with horrible headaches.Looking into the insightful information about us - an army troop mirror the next morning, I saw that my lips had stationed on the Tibet border - and what our life is turned grey, and eyes swollen. I breathed heavily like”. while walking,and did not want to eat anything. I Despite of her in full military uniform, Ren knew that those were supposed to be the lightest Ni was still a beautiful girl with fair and tender of symptoms. Despite persuasions otherwise, my skin. If she could pull through this trip, why colleague Ms. Zhou actually took a bath last night. shouldn’t we? After all, ours was a short That sounded a bit rash to me,because it was she assignment but the soldiers had to stay here for who once told me that a friend of hers took a bath several years, or even more. on the first day after she came up onto the plateau, When I recovered my senses, I remembered fainted due to the lack of oxygen, and had to be that there was another purpose behind this trip of carried off in an ambulance. Ren Ni also said that mine: I wanted to explore, in this highest part of even the soldiers who had lived in Tibet for a long the earth, or “forbidden zone to life”, what kind time did not dare to do that in the first two days of mental strength and will power had been after coming back from the hinterland. sustaining these young people who were paying Nevertheless, Ms. Zhou was fully prepared. She the heavy price of physical suffering or even inhaled enough oxygen, took a bath, and got more premature aging for a long period of time to honor oxygen. On the road, thanks to some rhodiola, a their commitment. few Plateau Safety capsules and also some I intended to find the answer. medicine that was good for cardio-cerebral NEWS FROM CHINA /SEPTEMBER 2012 57

vessels,she had been all right ever since. sunglasses, shoot the dust off their coat, and sat At 10 in the morning, we left for Dram, where down in front of us. I couldn’t help but notice that Nyalam Border Inspection Station was located at. on this remote plateau town, these soldiers coming Dram was a small town on the China-Nepal in from the wind and sand looked so valiant and border in Nyalam County, Shigatse heroic! Prefecture.Strategically located, it has always been The police chief Du Gang spoke good Tibetan. the busiest customs town and port of entry in Tibet Along with his dark complexion, this misled us since ancient times. During Emperor Qianlong’s into mistaking him to be an ethnic Tibetan man. reign in Qing Dynasty, when Nepal troops invaded When he told us that he was one hundred percent Tibet through Dram,General Fukang’an of Qing Han Chinese, from Shaanxi, Du Gang smiled, “I’ve defeated them right here. Nowadays, Dram is the been in Tibet for 18 years. Of course I can speak only national level-1 land port of entry in Tibet, some Tibetan!” the biggest port of border trade, and the main A bowl of hot beef rice noodles later, I felt the passageway for the political, economic, and warmth flow through my arms and legs again. cultural exchanges between China and Nepal. When I raised my head to check out this Tibetan Besides the 1.5 million people passing through here restaurant, it suddenly came to me that this place every year, there were over 30 smuggler’s paths was part of the guesthouse I once stayed in 6 years made by the lawbreakers. Intricate historical ago on my way back from Nepal to Lhasa. A friend problems, as well as new forms of crimes, have and I checked into this guesthouse late in the night. increased both the difficulty and workload of the Suffering from a severe case of altitude sickness, border inspection and crime prevention and she was almost wandering in her mind, and kept control work. babbling “this place is not for human beings. I’m Therefore, our work at Nyalam would be the never coming back... This place is insane, I’m not first important part of our trip. coming back, ever” Dan, don’t come back either. The 700-kilometer-long asphalt road was a Our bodies can’t take it...” real luxury in Tibet. The highway between Lhasa This really is not a good place to live!Besides and Dram was newly opened. Though we still had high altitude and low level of oxygen in the air, to cross several high mountains on the way, it was over half of the year was plagued by sandstorms a much more pleasant ride than travelling on the and a serious shortage of water. That’s why the old dirt road. In 2006, on a trip to Nepal on the county seat moved away from here.However, same route, I travelled all day from dawn till dusk, difficult circumstances forged strong character and but stilled spent 6 more hours than now. amazing creativity. Visitors like us only needed to We had our lunch at Gangga town,also known get through one night, but soldiers had to keep to as “old Dingri”, with an altitude of 4,340 meters. their posts for years. So I believed each enlisted It used to be the location of the seat of Dingri man who stayed at this place that was “unsuitable County before 1968. It was the season for wind for people to live” would have a fascinating story. and sand storms, sand hit me square in the face; Unfortunately, we had to reach Dram before whenever I tried to talk, I got a mouthful of sand; darkness fell on that day. So I made a promise with I couldn’t see anything that’s more than 50 meters the officers that we would meet up again when I away from my eyes. Some officers of the Gangga came back from Dram. I wanted to listen to their police station took us to the Tibetan restaurant by stories. the road. They were dressed in camouflage gears We said goodbye to each other.In my heart, and black military boots. They took off their the figures of the officers had turned into marvelous 58 NEWS FROM CHINA /SEPTEMBER 2012

heroes riding off into the sunset on the plateau... Nepal border, chuckling close by. We would be back! I promised! On our way here from Lhasa, we braved the We crossed two big mountains before we scorching sunshine and raging sandstorms,then reached the county seat of Nyalam. The altitude suffered from nosebleed, and headaches caused here was 4,100 meters, not particularly high.But by the sudden rise of altitude. Dyspnoea and what was extraordinary about the town was that hypoxia struck us as we went through the two it was built on the steep mountain roads: its mountain passes higher than 5,000 meters.The buildings were almost all built against the cliffs, altitude dropped 1,800 meters within 30 and the roads were very narrow. Snow was kilometers, and we endured the freezing coldness everywhere. A month ago, there was a blizzard, of the snow, and the perils of the plateau which cut off the China-Nepal Highway for several highways, before finally reaching the humid and days.The deepest snow was said to be 2 meters crowded town of Dram... The dramatic changes deep! And what we saw today was just what was of environment on the road make it difficult for left of that blizzard. The snow on the driveway the human body to adjust in a short amount of was cleaned by the bulldozer, but the dirty snow time, though there was no concern of oxygen piled on the sidewalks was higher than car roofs, shortage in Dram. It looked like our headaches and and front doors of many houses were halfblocked dizziness would last for a while. by the snow. The temperature was still too low, so This experience gave me a better the snow wouldn’t melt. When we drove past here, understanding of what soldiers went through. we still felt the frosty bite of the cold air. They told us that our trip had been very smooth. Once we left Nyalam town, the road was all Their trips to and from Dram were often disturbed downhill. By the road, there were many icefalls by falling rocks, landslides, or snow-bound roads. and frozen waterfalls from halfway up the mountain to the roadside, quite a magnificent They had to put off their plans of going home for sight.After about 30 kilometers, the altitude days, or even weeks. Some officers waited a long dropped to 2300 meters, a gush of wet air came time for their annual leave, but could not actually from straight ahead, and a narrow and packed leave due to the weather. They had no choice but street emerged. The street was bustling with to sit by their packed suitcases and wait anxiously. traffic.There were quite a number of trucks with Others were stranded on the way back, and could Nepalese license plates; roads were lined with all only wish that the road would be open to traffic sorts of stores, many of which were selling Nepal soon so they would be able to report to duty. There and Indian goods; hotels, restaurants and bars were even tales of how some newly-recruited were everywhere, serving everything from Sichuan college graduates were stranded on the road for dishes, or Tibetan cuisine, to Nepalese food... We the entirety of the first Chinese New Year’s Eve were in the bustling border town of Dram. after their admission into the army... Ms. Liu Weiqiong, Deputy Political It is said that Dram enjoys one of the best Commissar of Nyalam Border Inspection Station, climates in the whole of Tibet. But let’s not forget was a sincere and sweet-tempered female officer. the complexity and hazards of the road conditions. She gave us a tour of the post, including its new It was part of everyday life for the team at Nyalam administrative building. As we leaned on the rails Border Inspection Station. in the courtyard in the light of the sunset,she gently And the hardships and dangers on this long told us about the history of the station, with the and winding road was only the first test faced by Po Cho River, which formed part of the China- these enlisted men and women.

Postal Regd. No. DL-SW-16/4034/12-14 R.N.I. No. 47440/88 September 2012

The Diaoyu Islands, which lie in the East China Sea 120 nautical miles northeast of Taiwan, have been on China’s official atlas for centuries. The Japanese government has repeatedly stirred up troubles in recent years on the issue of the Diaoyu Islands. Particularly since the start of this year, the Japanese government has endorsed rightwing forces to clamor for the “purchase” of the Diaoyu Island and some of its affiliated islands in an attempt. The Chinese government solemnly states that the so-called “purchase” of the Diaoyu Islands is totally illegal and invalid. The Chinese side strongly urges the Japanese side to immediately stop all actions and return to the track of settling disputes through negotiations.