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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.