Beijing Yuyuantan Special Arts & Crafts Shop

Beijing Yuyuantan Special Arts & Crafts Shop is pleased to offer the following items: tourist gifts, enamel & jade wares, original paintings & calligraphy, inlaid gold lacquerwa- res, metal & stone seal carvings, writing brushes, inksticks & inksto- nes, drawn works & embroidery patches, gold & silver jewelry, mi• cro-carvings on agalmatolite stone, pearl necklaces and so forth. Thq shop treats its guests royal• ly and places reputation above all else. It offers good service to quests both at home and from ab• road.

Manager: Zhang Baoning Address: West Side of the Military Museum, Beijing, China Tel: 866485 BEJJING REVIEW VOL. 32, NO. 9 FEB. 27-MAR. 5, 1989

CONTENTS Self-Made Man: An Entrepreneurial Account

• Starting with nothing more than a small sum of money NOTES FROM THE EDITORS 4 and his professional knowledge, Zhang Baoning has built his printing business into a major concern with assets of Let Friendly Sino-US Train Roll more than 500,000 yuan. In his own words, he relates On how, like many other of China's 200,000 private entre• preneurs, he has worked his way to success (p. 19). An EVENTS/TRENDS 5-9 analysis of China's rural private economy (p. 16). China Honours Late Panchen Basic Science Funds Increase Power Shortage Threatens China Hello Again, Mr. Bush Optimization: Reform or Not? Weekly Chronicle • An old friend of the Chinese people, George Bush (Feb. 12-18) chose China as one of the frist countries to visit soon after he took office as, the new US president, a fact that INTERNATIONAL illuminates the importance and friendliness of Sino-US relations (p. 4). Also printed is an analysis of his foreign Bush's Foreign Policies: A policy (p. 10). Realistic Outlook 10

Japan Tones Up Defence Policy 13 Tibet: Human Rights and Religion

CHINA • Human rights, religion and education are the major issues examined in the second instalment taken from 100 The Rural Private Economy 16 Questions About Tibet, just published by Beijing Review Going It Alone—An Account of Press. Based on first-hand accounts and historical docu• Private Entrepreneur 19 ments, the book aims to answer many of the questions raised about Tibet in recent years (P. 24). Facts & Figures: The individually Owned Economy 23 China to Invest More on Basic Research Tibet: Human Rights and Religion 24 • China is paying more attention to basic scientific FROM THE CHINESE PRESS 28-29 research and applied basic research, planning to increase state investment in these fields, starting from this year BUSINESS/TRADE 30-31 (p. 7).

CULTURE/SCIENCE 32-34 Japan's Defence Policy Changes Analyzed COVER: Zhang Baoning (right), • Recent years have witnessed gradual yet evident manager of the private arts and changes in Japan's defence policy and practices, which crafts shop at Beijing's Yuyuantan have aroused concern and worries from its neighbouring Chen Zongiie countries (p. 13).

Unless written by Beijing Review staff, ttie opinions expressed in signed articles do not necessarily reflect the view of the Beijing Review editorial board. Director/Editor-in-Chief: Wang Youfen Published every Monday by Subscription rates (1 year): Tel: 893363 BEIJING REVIEW Australia A $29.00 TUX; 222374 FLPDACN 24 Baiwanzhuang Road, Beijing 100037 New Zealand NZ,$39.00 FAX:8314318 The People's Republic of China UK C14.50 Distributed by China International Book General Editorial Office Tel: 8314318 USA US$29.00 Trading Corporation (GUOJI SHUDIAN) English Dept Tel: 8315599 Ext. 546 P.O. Box 399, Beijing, China Canada ,Can.$25.00 Let Friendly Sino-US Train Roll On by Our Guest Commentator Huang Binjun

alking two bicycles, George Bush, then tween China and the United States has not director of the US Liaison Office in matched the status of either country. There W Beijing, and his wife, Barbara, had a lies a great potential for the two countries to picture taken side by side before the rostrum expand their economic and technological ex• of Tian An Men about 15 years ago. changes and co-operation. Late this month. President Bush and his However, the future of Sino-US trade rela• wife will come to China again on a working tions will depend more and more on the pro• visit. The People's Republic of China will be gress of economic co-operation and technolo• one of the first countries President Bush visits gy transfer on the American side. since he was sworn in last month. T^e announcement of Bush's trip to Beijing The White House declared the president's followed the decision by both China and the trip to China (from February 25 to 27), only Soviet Union to hold a summit meeting this five days after Bush took office on January May. Such a coincidence has aroused conjec• 20, a diplomatic blitz that has aroused great ture by foreign press. interest worldwide. Foreign reporters coming China, as many Chinese leaders have point• to cover the visit will total more than 400. ed out, sees the Five Principles of Peace• The international community has seen a ful Co-existence as the basis for develop• trend marked by conflicts turning to negotia• ing friendly relations with other countries; tions and tension to a more relaxed atmos• the relationship between China and other phere. countries is not determined according to the Meanwhile, the Asian and Pacific region similarity or difference in social systems and has seen its strategic status being raised by ideologies. its vital and energetic economy. The develop• The normalization of the relations between ment of the relationship between China and China and the Soviet Union will be realized the United States—the two great powers on on the basis of the Five Principles of Peaceful the eastern and western sides of the Pacific Co-existence. Sino-Soviet relations will neith• —will not only be conducive to the interests er return to those of the 1950s nor will they of both countries, but also will promote world repeat the confrontations of the 1960s and peace, as well as regional development and '70s. The improvement of Si'no-Soviet rela• stability. tions will never block the development of When announcing the president's visit to Sino-US ties. China, the White House said that Bush's trip The Sino-US relationship has been proceed• to Beijing was "to reaffirm the relations be• ing smoothly by and large during the past 10 tween the United States and China." years. But there are some problems and bar• When Bush was in Beijing 15 years ago, riers, with the Taiwan issue as the main obsta• contact and co-operation between China and cle. In the United States, incidents of a small the outside world was at a low level. During minority interfering in Chinese internal af• his brief stay this time, he will find the metro• fairs occur at times. So long as the two coun• polis a much more open city with a great tries strictly abide by the principles provided interest in international co-operation. State for by the three Sino-US joint communiques, guests and other visiting dignitaries come and their relations will develop healthily. go. There are already more than 400 foreign- Bush will be the fourth sitting US president funded enterprises and over a thousand off• to visit China. Richard Nixon first opened the ices of foreign banks and other corporations in door to the New China, then Gerald Ford, the capital. Jimmy Carter and Ronald Reagan did their The United States is now China's second bit to help build the US-Sino relations. The largest foreign trade partner, and its private Chinese people are waiting for Bush, an old investment in China is the largest among for• friend of Beijing, and his government to do eign countries. something worthwhile to drive the friendly So far, however, the level of exchange be• Sino-US express in the right direction. •

4 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 EVENTS/TRENDS

China Honours Late Panchen

op state leaders and more The portrait T than 1,000 other mourners was encircled by honoured Bainqen Erdini a piece of hada, Qoigyi Gyaincain, the 10th a white silk scarf Panchen Lama at a grand me• regarded by Tibe• morial service in Beijing on tans as a token of February 15. respect. Beneath Amid funeral music, the it were flowers Communist Party of China and young pine (CPC) and state leaders Zhao trees. On display The Panchen Lama presides at the Zhaxi Lhunbo Tern- Ziyang, Yang Shangkun, Li were wreaths Peng, Wan Li and Li Xiannian from veteran pie in Xlgaze, Tibet, in 1952. stood in silent tribute in front Chinese leaders including and other state institutions. of a huge portrait of the 10th Deng Xiaoping, Chen Yun, Hundreds of monks, nuns Panchen Lama, bidding a final Peng Zhen and Deng Yingchao and students from Tibet laid goodbye to this great patriot, and from the CPC Central hadas in the front of the hall noted statesman, and out• Committee, the National Peo• to show their love and respect standing leader of Tibetan ple's Congress (NPC) Standing for their spiritual leader. Buddhism. Committee, the State Council The Panchen Lama was vice- chairman of the The Panchen Lama meets with Chairman Mao Zedong in 1955. Standing Committee of the NPC and a top religious leader of Tibet. He died of a sudden heart at• tack on January 28 at the age of 51 in Xigaze, Tibet, where he had just presided over the opening of the Great Stupa. Wan Li, chairman of the NPC Stand• ing Committee, spoke at the cere• mony. He described the death as "a great loss" to the CPC, the country and the peo• ple of all the nation• alities in China, in• cluding the Tibe• tans. Wan praised the

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 5 The Panchen Lama returns to Xigaze on January 9, 1989, to oversee the opening of the Great Stupa. important role of the Panchen munist Party" and never hesi• brother and relatives were pre• Lama, "whose efforts to up• tated to speak his mind in the sent at the service. Also at• hold the unity of the mother• interest of the nation. tending were more than 300 la• land and the solidarity of all As an outstanding leader of mas and nuns, local Party and nationalities have made an in• Tibetan Buddhism, he said, government leaders, religious delible mark on history." the Panchen Lama did a great figures, local residents and The Buddhist leader, he deal to help ensure freedom of army representatives. said, took a clear-cut patriot• the religious belief and protect Traditional religious prepar• ic stand, particularly in the the rights of monks and nuns. ations are underway for the struggle against attempts to se• The chairman described the parate Tibet from the rest of late Panchen Lama as "a not• preservation of the body of the China. He recalled that the ed statesman" who did his best Panchen Lama at his residence Panchen Lama firmly opposed for equality, unity and mutual in Xigaze, about 355 km from the abortive armed rebellion assistance between all nation• Lhasa, according to Qazha, ab• staged by the separatists in alities, for the development bot of the Zhaxi Lhunbo Tem• 1959. Also, he said, the Panch• and prosperity of Tibet and ple. en Lama strongly condemned the country as a whole, for Qazha said the preservation those who colluded with for• the friendship between the of the remains, requested by eign forces to stir up riots in Chinese people and other peo• monks and other religious be• 1987 and 1988 in Lhasa, capi• ples and for world peace. lievers, will follow customary tal of Tibet. After Wan's 4,000-word procedures for eminent reli• The Panchen Lama re• speech, Zhao Ziyang and oth• gious leaders. The body will mained steadfast in his loyalty er leaders conveyed their deep be treated with precious medi• to the country even when he sympathy and solicitude to the cines and be bound with fine was persecuted during the parents and other relatives of silks and satins, which will 10-year "cultural revolution" the Panchen Lama attending and "fully deserves the title of the service. be changed regularly. Golden a great patriot," Wan said. In Lhasa, a memorial ser• powder will be painted on the He noted that the Panchen vice was held on February 3 face. The body will eventually Lama was "a close and sincere to mourn the 10th Banchen be placed in a great stupa to be friend of the Chinese Com- Lama. Bainqen's parents, his built for it, he added. •

6 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 VENTS/TRENDS

up a total of 100 such insti• Basic Science Funds Increase tutes. Over the past few years, the state has allocated 410 mil• hina will spend more ple's livelihood, Song said. lion yuan for the establish• money on basic scien• These include projects in the ment of 61 major scientific C tific research, including fields of agriculture, energy^ labs. • applied basic research, start• natural resources, environ• ing from this year, according ment and population control. to a senior official in charge of In the long run, he said, the Power Shortage science and technology. sources of investment in basic It is one of the policy mea• science will gradually become Threatens China sures that the country is taking diverse. He said the state will he great shortage of electr• to further strengthen basic re• encourage large and medium- ical supply, just like a search, said Song Jian, state sized enterprises, especially hungry and howling wolf, councillor and minister of the group enterprises, to set up T has come to threaten the devel• State Commission on Science funds for basic scientific re• opment of various productions and Technology. search. and affect adversely people's Speaking at a national con• Song said the country will lives. ference on basic and applied provide a good environment A recently held national science, which was held from for scientists to scale new working conference on energy February 13 to 15 in Beijing, heights in the area of interna• sounded such a serious warn• Song said basic research is the tional science and technology. ing. A total of 15 vice- foundation for growth in re• Exploratory research will not governors of provinces, vice- gard to scientific and technol• be restrained by the market mayors and officials in charge ogical knowledge. "It is of vi• needs and economic targets, of the energy and economy tal importance to the social he said. The state will support hastily gathered in Beijing to and economic development of and protect the scientific re• discuss how to keep the "wolf." the country," he added. search endeavors that initially at bay. are beyond the scope of public The state spent 800 million Most people living in Beijing understanding. yuan on basic science projects have been heard complaining in 1987, according to statistics He also said the state will recently about power cuts. provided by the commission. support research workers and Many of them wrote letters or This was 7.1 percent of the encourage them to actively phoned to ask about reasons. year's total scientific expendi• take part in international aca• Wei Ruifeng, an official ture. demic co-operations and ex• from theiBeijing Power Supply This figure is lower than the changes, as well as in the pub• Bureau, is worried about the amount spent on basic science lishing of academic papers. problem. He said that the by many other countries. Song During the past five years, bureau's control room has pointed out. He said that the China has sent 16,000 scien• asked for emergency help. government is planning to tists abroad and has invited From New Year's Day to Jan• gradually increase the propor• 18,000 foreign scientists to uary 12, they had to switch off tion of state investment in bas• China for study, research and the electrical supply to some ic science from the present 7.1 co-operation. units and households four percent to 8 or 9 percent by According to statistics prov• times as often as they did in 1990, and to 10 and more by ided by the conference, now the same period last year, and the year 2000. up to 30,000 Chinese scientists the quota set for industrial The conference discussed are doing basic research. The consumption has increased the major tasks of China's bas• number of scientists engaged four times. ic scientific research and out• in basic scientific activities At present, he explained, the lined policies and measures for has increased by 50 percent electric power consumed by strengthening the field. over the past three years. the Beijing area is allocated by In the next few years, the The Chinese Academy of the north China electrical net• state will give priority to the Sciences has set up 32 insti• work, and its supply is con• research projects that are of tutes devoted to basic sciences,- trolled strictly according to al• vital importance to the na• and universities and colleges lotted quotas. He pointed out tion's economy and the peo• all over the country have set that in recent years, the load

BEIJING REVIEW. FEB. 27-MARCH 5, 1989 7 EVENTS/TRENDS of electrical consumption in equipped, they often leave students. Beijing has increased sharply, mines unfinished. As a result, On hearing this, Wang was with an annual increase of quite a number of resources shocked. "Have I done any• more than 30 percent in resi• have been wasted. • thing wrong?" she asked the dential usage. schoolmaster painfully. More is the pity that not just "I'm the schoolmaster and I in Beijing exists such a ten• Optimization: am entitled to make such an sion. Huang Ju, vice-mayor of arrangement. No more arguing Shanghai, told the conference Reform or Not? about that. I won't change participants that factories in my mind anyway," said the Shanghai have to pull the plug nder the current opti• schoolmaster. on the operations two or three mum organization prac• Wang has worked as a teach• days a week owing to the shor• U tice, the excess fat, in the er for more than 20 years. She tage of electricity. Last year, form of less talented and was honoured nationally as an Shanghai's economic growth less vital workers, is being outstanding special education ranked at the bottom nation• trimmed from the working teacher in 1986, and her paper wide, and January's output place. However, in some cas• on the improvement of the stu• was the year's lowest. And the es, especially when involving dents' written language won a growth in the first twenty days teachers, this practice is being provincial award in 1987. She of January this year is 1.6 per• abused, bringing into a ques• is also a council member of cent under that of the same tion about the status of the the provincial Special Educa• period last year, Huang said. people's constitutionally guar• tion Research Society and a Besides the unmet demands anteed right to work. member of the Society for of an over-heated 'economy, For example, Wang Rong- Chinese Primary Teaching the dwindling production of zhen, a senior teacher of the Methods Study. energy sources themselves due Xiangtan School for Deaf- For these reasons, she was to power failures is a real kick Mutes, was reportedly obliged to request to resume in the country's seat. Yu Hon- screened out from a teaching her work as a teacher, but her gen, general manager of post during the optimum or• requests were coldly turned the National Allocated Coal ganizing of teachers in the down. Mines Corporation, said that school. This event aroused The schoolmaster said: "She during 1985-1987, none of the strong repercussions in socie• exposed my problem to the country's allocated coal mines ty, especially in the education• higher authorities, so I won't opened a new well. There were al circle of Xiangtan City in let her teach, even if she is four generator units with a ca• Hunan Province. capable." pacity of 200,000 killowatts "I support the current re• However, this is not an ex• each put into operation from form, but I was stripped of my clusive example of power 1981 to 1985 in Shaanxi Prov• teaching job in the end by my abuse in the name of optimum ince, but from 1986 to 1990, no bosses. Was this really a case teacher organization. Last new generators have been or of optimum organization?" November, a similar case was will be employed, the Vice- Wang was quoted as saying in reported in the Renmin Ribao Governor of Shaanxi Province a complaint letter from some (People's Daily). Chang Bin said. readers, which was published With a classification of spe• The central government recently in the Guangming cial grade, the country's high• transferred the power and Daily. est teaching qualification for funds for energy development The letter says, before the the primary and middle to the local level in 1985. How• start of this school term, an schools, Zhu Xiaolu works at ever, as the state still con• official in charge of the educa• the Qilihe Primary School in trolled the price, the policy tional section of the Bantang Lanzhou, Gansu Province. was unattractive to local enter• District government of Xiang• Last July, at the close of the prises. Facing the pressing de• tan City and the schoolmaster school term, she was unexpect• mands, the state had to leave informed Wang that she was edly informed by the school• one side of the network open deposed from the position of master Su Jimin that she — to let small local coal mines director in charge of teaching would not be employed the produce, market and fix prices affairs in the school and was next term. by themselves. However, as to be transferred to do nurse It was just like a thunderbolt they are usually poorly work for the deaf and mute to her. Zhu asked the school-

8 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 EVENTS/TRENDS master "the nature of her of• foreign debts, and the spend• fense." Fang Zhenguo, secre• Weekly Chronicle ing of foreign exchange is to tary of the school's Commun• (February 12—18) be kept down this year, Tang ist Party's branch committee, Gengrao, director of the State disclosed the truth at last: POLITICAL Administration of Foreign Ex• Zhu had spoken irresponsibly change Control, says at the ad• against her bosses at some February 14 ministration's annual meeting. meetings convened by the city • A Chinese Foreign Minis• He says that at' the same and provincial governments. try spokesman, when asked to time, ample foreign exchange Zhu is a qualified teacher in• comfirm news about a possible investment in the priority sec• deed. She was honoured as an visit by the foreign minister of tors of the nation's economy outstanding teacher and adv• Viet Nam to China, says in will be guaranteed. anced worker in Lanzhou City Beijing,"There is no such ar• in 1982. Her achievements rangement." February 16 were even recorded in a 1987 The spokesman says that • China has issued bonds dictionary of the most famous conditions are not ripe yet for worth $US4.25 billion on in• women in China. As a teacher the Vietnamese foreign minis• ternational capital markets with an experience of 27 years, ter to visit China. over the past seven years, a she could not just simply quit Chinese official of the State her teaching career. February 15 Administration of Foreign Ex• The Renmin Ribao report • Lin Xianihun, a pilot from change Control announces. was rewarded by an immediate Taiwan who parachuted from The figure is 106 times as response from the local dis• his aircraft on February 11 much as that in 1982, the first trict government, which short- when it crashed in Fengshun year that bonds were issued circuited the dismissal and County, Guangdong Province, abroad to raise money for solved the problem quickly. domestic development. Zhu was restored to her teach• says at a press conference in ing post as before. And the Guangzhou that he loves his frustrated schoolmaster, Su, motherland and knew great CULTURAL was forced to resign. changes have taken place in Most people in Lanzhou the mainland. He says he had February 13 were in favour of the local been preparing to come back • Local archaeologists have government's decisions. But in recent months. excavated fossil bones belong• one of the newly-appointed di• Lin tells Taiwanese report• ing to a dinosaur in Xiyang rectors of the school said: "In ers that he neither brought any Town of Kunming, the capital our system the schoolmaster secret documents nor knew of of Yunnan Province. has the final say in school af• actions taken by the air forces The fossils feature a skull fairs. It is his right to select on both sides of the Taiwan with a unique bony crest 31cm whomever he likes to take up Straits in the wake of his de• long and 15cm high. The dino• the teaching job." parture. saur was carnivorous, the ex• After the incident of Zhu He says that he desires to perts say. Xiaolu, many primary school serve in the People's Libera• Since 1982, fossils from 13 teachers began to worry about tion Army Air Force. dinosaurs and more than 600 their fate in the future. They Lin, 36, a lieutenant' co• dinosaur footprints have been said a special grade teacher discovered in Xiyang Town. like Zhu could not hold her lonel, is from Meixian County, job under the onslaught of the Guangdong Province. He says engagement system, let alone he wishes to visit his home• SOCIAL us common teachers. After all, town. February 14 it is the schoolmaster who has Lin's wife, two children, • China Daily reports that a the final word on everything father, two brothers and an national deer park is being here. elder sister are all in Taiwan. created in Beijing and will All the citizens in the coun• open to the public in 1990 . try are entitled to the right to Li Jingchi, director of the work by the Constitution, but ECONOMIC Beijing Milu Park, says the the extent of this right and park will be the home of red how to legally protect it are February 13 deer, muntjacs and roe deer, as still to be specified by a writ• • Further limits are to be put well as the milu or Pere Dav• ten law. • on the growth of the nation's id's deer. •

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 9 Bush's Foreign Policies: A Realistic Outlook

by Liu Jiang

hough the Bush adminis• distinct mark of the Bush ad• State Baker pointed out that T tration just came into ex• ministration's foreign policy is the world is undergoing "sig• istence, its foreign policy that emphasis will be put nificant transformations," and has drawn worldwide atten• on pragmatism to strive for the US leadership must adjust tion. Due to changes in the achieving an active position in for a world that "has outgrown international situation, Pres• international affairs. In oth• the post-war era." The United ident Ronald Reagan during er words, Bush will pursue a States must take "a realistic his last years in the White quite realistic diplomatic line. approach" towards world is• House opened a new era of dia• This can be seen in the follow• sues. "Only through a realistic logue and detente between the ing aspects: approach can we write a new United States and the Soviet 1. In regard to its general chapter of American leader• Union. The prevailing view knowledge of the international ship for a rapidly changing now is that Bush will inherit situation, the Bush adminis• world." He also said that the Reagan's diplomatic line in or• tration considers the present realities in the world today der to ensure a Republican era to be a "time of change." "will not permit a blind isola• policy continuity. The United States must pro• tionism or a reckless unilater• However, the "Bush era" has ceed from the realities and alism." its own features, and Bush's di• readjust its international stra• 2. More attention will be plomacy cannot be just a copy tegy to secure a leading posi• paid to economic diplomacy. of Reagan's version. Judging tion in a constantly changing Promotion of economic growth from Bush's recent remarks world. is listed as an important task and deeds and the speech at a Bush has pointed out on for diplomacy and a com• confirmation hearing before many occasions that the world ponent of the national security the Senate Committee on For• is in an era of changes. In strategy. The concept of "eco• eign Relations by the new Se• his exposition of Bush's for• nomic deterrence" has been cretary of State James Baker, a eign policy, new Secretary of advanced. Bush has said that economic President Bush holds his first cabinet meeting on January 12. growth is now an issue of both monetary and foreign policy. Upon his election. Bush nomi• nated Baker, who, as Reagan's secretary of treasury, is quite acquainted with monetary and trade questions, to be his man for foreign affairs. During his service in the Reagan admin• istration. Baker accumulat• ed rich experiences in co• ordinating US monetary and trade policies with its allies. Bush's nomination of Baker as his secretary of state reflected, to a large extent, his emphasis on international economic re• lations and created favour• able conditions for conduct-

10 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 ing "economic diplomacy." Baker put the economy in a prominent position in his re• cent policy speeches. For ex• ample, when talking of US pol• icies towards the Asian-Pacific region, he pointed out that US relations with the Pacif• ic countries "must emphas• ize outward-looking economic policies that promote trade and growth." US policy to• wards the Pacific as a whole "must tie together all strands to assure the region's economic growth with its global implica• tions in the context of a secure economic deterrence." 3. While admitting that the world is growing multipolar- ized, the Bush administra• tion still considers the Soviet Union its arch rival. Washing• though changes have taken going to be out front," he said. ton will continue to deal with place in the Soviet Union, "There is no reason to suggest Moscow from a position of "realism requires us to be pru• that all we have to do is react strength. dent." The Soviet slogans of to a speech by the General Bush said many times in his glasnost and perestroika are Secreatary (Mikhail Gorbach• campaigns that the policy to• being fleshed out, but the real• ev)," he stressed. wards the Soviet Union will ity shows that the Soviet At present, the US and So• still be a consideration of top Union "remains a heavily viet destruction of medium- priority in US foreign affairs. armed superpower." range missiles is going on But some US experts believe During the presidential elec• smoothly. The two countries that there are some differences tions. Bush underlined the have made substantial pro• between Reagan and Bush in need to negotiate with the So• gress on reducing 50 percent regard to their Soviet policies. viets from a position of of their strategic nuclear wea• Bush often talks of the Soviet- strength. And in his speech at pons, and to sign a treaty on US rivalry from an angle of the inaugural ceremony, he this seems likely. However, contention between powers, again said that the United Bush will probably link the while Reagan's skew was ideo• States would develop relations reduction, of strategic nuclear logical. It can be predicted with Moscow while maintain• weapons with a cutback of Eu• that in dealing with the So• ing "strength and vigilance." ropean conventional arms and viets, Bush will further miti• Second, the US government shorter-range missiles in order gate the anti-communist ideo• will slow down the momentum to force the Soviet Union into logical prejudice in exchange of disarmament, but will not making more compromises in for a more flexible policy to let slip any chances to contin• regard to East-West disarma• safeguard US interests. ue to negotiate with the So• ment. To keep the "balance of pow• viets on disarmament and Third, the United States er" with the Soviet Union, pressure Moscow to make welcomes the Soviet domes• the Bush administration will more concessions. tic reforms and glasnost and adopt the following measures At his first presidential wishes to strengthen dialogue towards the US-Soviet rela• press conference Bush said and co-operation with the So• tions: that the US government would viet Union. First, it will stress a clear• "take the offensive in moving Recently Baker said that the headed and "prudent" ap• the US-Soviet relationship for- United States would continue proach, persisting in the pur• w'ard." "We're not going to let to study the Soviet stand on suit of peace with strength. this Soviet thing put us in a disarmament, human rights, Baker pointed out that al- mood of foot-draggers. We are regional conflicts and bilateral BEUING REVIEW, FEB. 27-MARCH 5, 1989 11 INTERNATIONAL

East European countries so as to take advantage of their eco• nomic reforms and political democratization. The subse• quent goals would be a pro• paganda offensive, a cultural penetration and an atttempt to distance these countries from the Soviet Union. In the presidential elections Bush referred to Eastern Eu• rope as "an area of opportuni• ty" for the West. Many senior officials of the United States advocate the pursuit of "a more assertive" policy. Such a policy, besides proclaiming the need for long-term structural, political changes, would em• President Bush holds talks with Canadian Prime Minister Brian Mulroney in brace active steps to help coun• Ottawa. tries in the Eastern bloc be• come a normal part of Europe. relations. "We are interested effect is the fact that as soon as These officials have said that in co-operating and negotiat• Bush took office, he sent Se• the point is "to get Europe ing to make progress wherever cretary of State Baker to West• back to norrnal—to pre-1918, it can be made," he said. He ern Europe to launch a shuttle when there was one Europe also pointed out that the Unit• diplomacy. and free movement." ed States needs to open new Speaking on the US relations To this end, some US brain avenues in superpower rela• with its allies recently. Baker trusters have issued concrete tions in order to deal with italicized the need to reach a proposals to the Bush govern• global problems such as ter• consensus on how to proceed ment: To establish and expand rorism, drugs and the environ• with a changing Soviet Union. student-exchange programmes ment. He also called for a congenial with the East European coun• 4. The United States will approach to the new military tries; to let the Voice of Amer• strive to co-ordinate its stand poses created by the US-Soviet ica go into television, buy sa• with its allies and unify steps, agreement on elimination of tellite time and beam pro• while dividing and wooing intermediate nuclear forces grammes into the Soviet East European countries, with (INF), i.e. the need to moder• Union and Eastern Europe; to the view of taking the initia• nize Western nuclear and con• encourage business ventures tive in regard to dealing with ventional weapons. He further in eastblishing joint ventures East-West relations. cited the need for working out there and make the market Faced with the challenge of "both realistic and prudent" economy of these countries Gorbachev's diplomatic new standards for conventional complete; to broaden ties be• thinking, some West European arms control. Likewise, a de• tween Western political groups countries have obvious differ• sire was mentioned to seek a and democratic forces in East• ences on a series of major is• common approach to the issues ern Europe now openly debat• sues with the United States. At of loans and credits and trade ing the issue of democratiza• the same time, the mounting and transfer of technology to tion. US call for its allies to share Moscow and Eastern Europe. 5. The Bush team will carry defence responsibilities /has* It was also necessary to esta• forward Reagan's China policy sharpened the contradictions. blish a "more equitable and and give the development of Therefore, the Bush adminis• creative basis" on which to US-Sino relations great consi• tration is urgently compelled share responsibilities, he indi• deration. to put a solution to the inter• cated. President Bush, former di• nal friction within the NATO ' The Bush administration rector of the US Liaison Office alliances on the US diplomatic will adopt an elastic and re• in China, knows China fairly agenda. Good evidence to this laxed attitude towards the well. He has pointed out that

12 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 IMTERNATIONAL

Japan Tones Up Defence Policy As the Japanese economic strength has been strengthened and the international situation has altered, Japan's defence policy and forces have undergone a great change. The Japanese government has put forth a new strategic concept: expand the defence scope, recruit the military forces, increase military spending, speed up the military scientific and technological research and revise the constitution. All these have evoked many comments and repercussions. by Ge Gengf u

fter World War II, Ja• States for each person). While with one-third of the US fin• pan rose from the ruins the United States turned from ancial deficit being comprised A of defeat to stand being the world's No.l banker of Japanese capital. In the lat• shoulder-to-shoulder with the into its biggest debtor, Japan ter part of 1987, 435 US com• United States as an economic assumed the former role. By panies were wholly or partially power. Japan's current gross the end of 1987, Japan's net owned by the Japanese. Japan national product (GNP) is overseas assets were about is not only an economic giant, more than US$2 trillion, equal US$240 billion. The US an• but it is also the biggest inter• to the total GNP of Federal nual trade deficit is a biting national financier. Germany, France, and Bri• US$150 billion, but Japan is In light of Japan's increasing tain. Japan's per capita GNP feasting on the world's big• economic strength and devel• overstripped that of the Unit• gest trade surplus, more than opments in its internal and ex• ed States in 1987 (US$19,642 US$100 billion annually. Ja• ternal political and military for each person in Japan and pan has strengthend its pene• situation, the ruling Liberal- US$18,403 in the United tration into the US market Democratic Party and govern- the positive development of two countries. President Bush but for the most time during US-Sino relations is a policy will come to visit China only the mid-1980s, tensions have commonly set by both the Re• one month after assuming off• disappeared. Bush has said publican and Democratic par• ice. This shows that the new that he welcomes the normali• ties, in the United States. A US administration will make zation of Sino-Soviet relations. conservative US think tank, the development of US-Sino However, some high-ranking the Heritage Foundation, in relations an important diplom• US officials have indicated in its recent policy proposals to atic task. private that if the develop• Bush, said it is easier to devel• Since the mid-1980s, the Un• ment of Sino-Soviet relations op US-Sino relations than US- ited States and the Soviet becomes too warm, the United Soviet ones. In recent times. Union have powered the third States will reconsider its China Baker again clearly indicated tide of detente, and gradually policy. that the development of US- turned "mutually assured des• The Bush administration's Sino relations has an impor• truction" into "mutually as• Taiwan policy is not likely to tant significance not only for sured security." Therefore, no see any fundamental changes. the two countries themselves party in the US-Sino-Soviet Moreover, a few people in the but also for the mainteinance triangle any longer shows United States are likely to of stability in the international great worries about improve• cause dissension on the issues political order. Bush's exper• ments in the other two coun• of human rights and national• iences in China are another tries' relations. A high-ranking ity, hence interfering with the plus for the further develop• US official said that this trian• development of Sino-US rela• ment of relations between the gular diplomacy has not died, tions. •

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 13 INTERNATIONAL ment has created some changes. After due consideration, it has reversed its part of stressing the economy and un• derestimating arms and has issued a new strategic con• cept. Towards the end of the 1970s, the Ohira cabinet issued a strategy for the comprehensive guarantee of secur• ity. It stressed that security could best be guaranteed by the synthesis of many means, ad• vocating an active safeguarding of the Demonstrators march in Japan for peace. MENG XUEJUN Japanese-US joint system and an increase in Ja• that deterrent forces based on Kaikyo, Tsugaru Kaikyo and pan's own defence forces with a balance of strength including Tsushima Kaikyo in time of an aim towards strengthening nuclear weapons are a guaran• war has become a target of def• self-defence. In 1983, former tee for world peace and secur• ence. The Nakasone govern• Prime Minister Yasuhiro Na- ity. He indicated that Japan ment furtherstated that "self- kasone likewise advocated that must face the stern reality defence action" beyond 1,000 Japan should become a ma• and seek good-quality defence nautical miles would be al• jor poliitcal power, emphas• forces with appropriate equip• lowed by the constitution. This izing the need to safeguard ment. His words reflected Ja• would not only expand the Ja• Japan's security, raise its in• pan's latest consideration of panese defence range, but it ternational position and in• readjusting its defence policy would also overstep the protec• crease its defence forces. and heightening its defence tive boundaries designated After Noboru Takeshita be• capability. by the Japanese-US Security came prime minister in Octo• Treaty. The guiding ideology ber 1987, he took a two- of a passive defence has trans• pronged approach. On the one Broader Range formed into one of active pre• hand, he stressed that Japan Since World War II, Japan war preparations to defeat the should launch diplomatic ac• has adhered to the principle of enemy at first blow. The stra• tivities that would reflect its self-defence and strictly limit• tegy of wiping out the enemy principle of independent di• ed the range of defence to its at the beachhead has turned plomacy, make multiple and territory. The prevention of into one of attacking the ene• especially economic contribu• enemy attacks on its territory my at the sea, and a fight at tions to the world, and acceler• and the occupation of its key the distant sea. In a word, ate the steps towards becoming areas was its guiding ideology. the Nakasone government a political power. On the other In recent years this defence changed the land-based def• hand, he issued a defence pro• policy has undergone major ence principle and confirmed a posal involving policy and changes. The Nakasone gov• defence at sea strategy, which arms. On March 21 last year, ernment would like to build has been inherited and devel• Takeshita, at a graduation cer• Japan's territory into an un- oped by the Takeshita cabinet. emony for students of the sinkable aircraft carrier and Meanwhile, the Japanese Japanese Defence University, safeguard the security of its military forces have been con• said that Japan would seek a transportation lines for 1,000 stantly recruited and streng• defence capability worthy of nautical miles. At the same thened. Since the mid-1970s its state strength. He also said time, to blockade the Soya Japan has been seeking to

14 BEIJING REVIEW, FEB. 27-MARCH 5. 1089 heighten its defence capabili• equipped with overvisional ra• of five-year defence expenses. ty. In the past 30 years since dar that can detect targets be• That year saw Japan's defence their formal organization, the yond 3,000 kms. Japan, togeth• spending surpassing 1 percent Japanese Self-Defence Forces er with the United-States, will of the GNP. The total sum of have developed to a consider• produce the next- generation the defence forces' reorganiza• able size and gained possession FSX support fighting planes, tion programme at midpoint of of advanced weaponry. Ac• whose combat operative radius the 1986-1990 period is 18.4 cording to the target stipulated will double that of the present trillion yen, and defence ex• in the Outline of Defence Plan and reach 840 kms. Thus the penses in 1988 accounted for of 1976, a defence force that fighting capability of the self- 3735.4 billion yen. This was a could maintain a vigilant pos• defence forces will be greatly 6.2 percent increase in com• ture and could effectively strengthened. A US defence parison with the previous year, counteract a small-scale ag• official said that by 1990 Ja• and it was 1.013 percent of gression would be set up. In pan will possess 200 F-15 jet 1988's GNP. Although this 1984 this outline was greatly fighters and 100 F-4 jet figh• edge is small, its significance revised. In view of changes ters, surpassing the total num• lies in the "breakthrough." in the international situation ber of areoplanes that the Un• since the latter part of the ited States has deployed in Ja• Japan is an economic heavy• 1970s, Japan believed it need• pan, South Korea and the Phi• weight. Its GNP is big, as is ed to make a new study and lippines. The naval self- its scale of growth. Therefore, strengthen its defence capabil• defence forces will possess 60 even if the defence expenses ity. destroyers and 100 P-3-C anti• were still held to 1 percent of At present, the total number submarine cruise aeroplanes. the GNP, its growth speed and of the Japanese Self-Defence This is respectively three and absolute quota would be quite Forces is about 300,000, but five times those owned by the generous. According to Ja• their equipment is fine, they US Seventh Fleet. panese officials, Japan's def• are well trained and their ac• ence expenses ranked sixth be• tual strength is strong enough. hind those of the United The officers of the ground, na• More Funds States, the Soviet Union, val and air forces surpass the In recent years, the Japanese Great Britain, Federal Ger• number of soldiers, but if a government has energetically many and France. However, war should break out, the adopted some measures to in• Japan's method of statistically three armies could be quickly crease defence spending and tallying defence expenditure is expanded. The ground self- speed up the military's scien• different from that of NATO defence forces total 180,000 tific and technological re• countries. It does not include with more than 1,000 tanks search. This has created fa• the military pensions and ex• and 300 various missile launch vourable conditions for the fu• penses of the maritime sea se• vehicles. The naval self- ture rapid development of the curity agency. If NATO's sta• defence forces are about military forces. tistical criteria were applied, 45,000 and possess 165 various For years Japan's allotment Japan's defence expenses warships and 155 airplanes. for military expenses was lim• would be found to overtake The air self-defence forces are ited within 1 percent of the those of Britain, France and more than 45,000 with 350 GNP. After becoming prime Federal Germany and would combat aeroplanes and 180 minister, Nakasone began to place third, tailing those of the ground-to-air missile launch promptly increase weaponry in United States and the Soviet vehicles. order to pursue his general Union. According to Japanese According to the develop• post-war political policy and newspapers, the Japanese Def• ment programme of the to co-ordinate with the US pol• ence Agency decided to ask Self-Defence Forces' military icy towards the Soviet Union. the Ministry of Finance to in• equipment, by the early 1990s In July 1985, he proposed that crease defence expenses by 7 Japan will have built more defence expenses exceed the percent when it worked out than 30 vessels, bought over ceiling of 1 percent of the the 1989 government budget. 100 combat aeroplanes, air• GNP. In January 1987, the If Japan's defence expenses in• borne warning and control sys• Japanese government formal• crease by 7 percent, they will tems, tanker aircrafts, anti• ly announced a cancellation of be 3959.3 billion yen (about submarine cruise aeroplanes the quota policy and instead US$29.7 billion). and missile destroyers chose to publish the total sum (To be continued)

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 15 The Rural Private Economy During 1988, the China Democratic National Construction Association (CDNCA), one of China's eight democratic parties, conducted an investigation into the rapidly developing private economy of Wenzhou Prefecture in Zhejiang Province. In this report, Feng Tiyun, CDNCA's vice-chairman, and Wu Honglin, deputy director of CDNCA's Central Research Department, both outline the positive economic role private enterprises perform and scrutinize their negative aspects. —Ed. by Feng Tiyun and Wu Honglin

ver the last ten 3'ears, operating in the co-operative main thrust has been to furth• many rural businesses or collective name, the number er the development of a social• O have expanded from rose to more than 200,000. ist commodity economy. being purely household opera• It is important to note, how• tions to small enterprises hir• Positive Role ever, that this economic sector ing employees. Indeed, it is At the primary stage of so• remains under the supervision true to say that around cialism, the private economy's and management of the state. 1980-81 wage labour reap• principal beneficial effects It is linked to the public- peared in China. have been to raise productivity owned economy, which still Recognizing that the private and promote the commerciali• being clearly dominant, influ• sector of the economy was well zation, socialization and mod• ences and restricts it. suited to the country's current ernization of production in From the CDNCA's investi• economic conditions, the First underdeveloped areas. Its gation into the economic life Session of the Sev• enth National Peo• Ye Wengui (left) with workers in hiis Wenzhou Rolled Plastic Film Factory. XU BANG ple's Congress adopted a constitu• tional amendment on April 12, 1988, clearly outlining its nature and func• tions. With their exist• ence protected and guaranteed by law, private enterprises (individually owned enterprises with more than eight em• ployees) then start• ed to expand their investment and size. By the end of 1987, 115,000 of them ex• isted throughout the country. Taking into account those 16 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 of Wenzhou, Zhe- jiang Province, the following conclu• sions on the role of China's private economy can be drawn: 1. It has served to promote the esta• blishment of an open, commodity- based economy in an underdeveloped area. For example in 1977, Wenzhou's rural commodity economy accounted for only 10 percent of Wenzhou's total rural products. By 1987 this figure had risen to 60 percent. 2. It has absorbed surplus rural la• Chen JJashu holds up an aluminium alloy roadsign from the badge factory he started with bour. For example, several other people. OU QIMING of the 107,000 work• ing people in the Tangxia Dis• businesses. In the towns, lar• demand has had a beneficial trict of Wenzhou's Ruian City, ger factories are more com• effect on the formation of only 22 percent were working mon, often tying together sev• market mechanisms necessary in agriculture in 1987. The rest eral processing plants. for the development of a com• were all in private industrial 6. The private economy has modity economy. Wenzhou's and commercial enterprises. In helped to balance the indus• ten principal specialized mar• addition, an extra 2,000 people trial composition of the rural kets are, in effect, comprehen• had been hired from outside economy, enlarging the share sive production and marketing the area. of secondary and tertiary in• bases. For example, the pros• 3. It has needed little or no dustry. In Pingyang County, perity of the Qiaotou Button state loans or investment to for example, the proportion of Market, now well-known ac• start up. Initial funding for the output value of the three ross China, is directly connect• private enterprises has been industries in the county's gross ed with the success of 450 local drawn mainly from funds output value in 1980 was 50.2 private factories. lying idle in society. Along percent for the primary indus• 9. The private economy has with their self-development try, 41.2 percent for the secon• accelerated the construction of and the appreciation of capi• dary industry and 8.6 percent rural towns, promoting the in• tal, these enterprises have paid for the tertiary industry. With tegration of the city and the taxes to the state, thus increas• the development of the private countryside. ing social wealth. economy, the proportion was Clearly, the private econo• 4. With greater managerial respectively 34 percent, 56 my performs various functions flexibility and more manageri• percent and 10 percent. which other forms of owner• al rights, the private enterpris• 7. By gathering scattered ship cannot, making it a posi• es have generally proved more and small-scale resources of la• tive element in the overall de• competitive than state- and bour, funds and techniques velopment of China's produc• collectively owned companies. from society, the private econ• tive forces. 5. In rural areas, private en• omy has increased productivi• terprises generally operate on ty and economic efficiency. New Stratum a small scale but with co• 8. The private economy's operation between different role in balancing supply and As the private economy has BEIJING REVIEW, FEB. 27-MARCH 5, 1989 17 cadres or staff in employer and employed, parti• state-owned en• cularly in realizing the theo• terprises or insti• ry that workers should be the tutions, and 12.5 masters of their enterprises. percent were 5. The combination of ov- unemployed. errapid capital accumulation The principal with a fear that policies fa• reasons given for vouring private enterprises starting private may change in the future fre• enterprises were quently resulted in profits the introduction being directed to consumption of new policies rather than reinvestment. permitting their 6. In their pursuit of profit existence, support at all costs, enterprise manage• from local Party ments sometimes engaged in il• and government legal activities. leaders, a desire To promote the healthy de• to use latent man• agerial skills and velopment of the private econ• the pursuit of omy, legitimate management prosperity. needs to be encouraged. This requires fully protecting en• Negative terprises' legal rights while of• fering incentives for them to Factors meet their social obligations such as investing in the prod• While undoubt• uction of goods needed by so• edly proving be• Liu Wencheng at work in liis hiouseliold ctiemicals ciety. The employer-employee workshop In Liaoning Province. LITIECHENG neficial overall, the Wenzhou stu• relationship of interests and dy revealed that that between different social the private econo• strata need rectifying, and the grown in strength, a new stra• my had engendered various nature of the relationship be• tum has appeared as its social negative features. tween private enterprises and representative. The Wenzhou 1. Most enterprises were in• other sectors of the economy study revealed its possession terested solely in the pursuit and society needs to be speci• of the following characteris• of short-term gains. With^ no fied more concretely. tics: long-term plans, they com• Private entrepreneurs Middle-aged ownership: 70 monly embarked on any should also be encouraged to percent of enterprises were course of action likely to real• form their own organizations owned by people aged 30-40, ize profits. Their management so that they can incorporate 15 percent were owned by peo• tended to be characterized by themselves fully into educa• a lack of an overall strategy, ple aged 29 and under, and an• tional, political and social ac• other 15 percent aged over 50. rapid policy fluctuations and a tivities. Trade unions should tendency towards speculation. Education: 70 percent of be encouraged to represent the owners had either junior or 2. For various reasons, capi• rights and interests of employ• senior middle school educa• tal accumulation was too rapid ees. tion. Only 2.5 percent had had and its appreciation abnormal. higher education. 3. Large income disparities . With its extensive connec• Previous occupation: Before within enterprises were fre• tions with industry and com• starting their enterprises, 15 quent, with managers often merce, the CDNCA should percent of owners were farm• earning 10 times as much as also strive to establish a role as ers, 20 percent were workers in their employees, and some• a political party, as should the collectives or township enter• times up to 30 times as much. Chinese Federation of Indus• prises, 27.5 percent were either 4. Because of these in• try and Commerce as non• buyers and sellers or service come disparities, contradic• governmental chamber of labourers, 22.5 percent were tions have emerged between commerce. •

18 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 Going It Alone —An Account of Private Entrepreneur

Zhang Baoning, 42, is one of China's more than 200,000 private entrepreneurs. Starting with just a small sum of funds and his professional knowledge, he has nursed his printing business into a sizeable concern with assets of more than 500,000 yuan. He is now a deputy to the Beijing Municipal People's Congress and enjoys a high social and political status. From Zhang's example, a clear picture can be drawn of how Chinese entrepreneurs have worked their way to success. This is his personal account of how he became a self-made man. —Ed.

once worked as a designer shop. During my time in the signing, plate-making, colour and typesetter in a state- factory, I had once drawn harmonizing, packing and I owned factory. In 1966, I many designs incorporating transporting my products to was severely burnt in a big fire traditional Chinese symbols. customers. In order to produce when I moved state property to However, I was frustrated on schedule and supply goods safety. I then stayed in a hos• when the factory leadership on time, I sometimes work un• pital and a sanatorium for turned them down simply be• til after midnight. My hard three years. In 1969, complete• cause they didn't appreciate work has always paid off: in ly recovered, I resumed my them. In my own shop, I print• my first 18 months I made work in the factory. However, ed them on T-shirts and other 130,000 yuan in foreign ex- the slow pace of work in state- garments. To my surprise, they ..change. That's big money. Be• owned factories and the peo• were well received by foreign cause I keep my contracts, so ple's traditional way of think• tourists, and sold well in Bei• far there have been no cases of ing made it difficult for me to jing's tourist hotels and scen• consumers asking for a refund, continue to work there. I don't ic spots. In the first month, I even though I offer a full qual• like to while my life away. made more than 5,000 yuan ity warranty. The high quality Largely inspired by the deci• in foreign exchange, far more of my products and service sion of the Third Plenary Ses• than a state-owned workshop has not only won high acclaim sion of the 11th Party Central of 30 workers earned over the from hotels and retailers at Committee at the end of 1978 same period. scenic spots around the city, to reform the economy and I was the first to start a pri• but has also laid the solid open China to the outside vate printing shop in the city. foundations for the further de• world, I rethought my career As an old Chinese saying goes, velopment of my business. and decided to quit my job. I "Newborn calves are not af• Eighteen months after I submitted my resignation in raid of tigers." Now I can com• opened my printing shop, and October 1980. pete with any factory with my after paying my taxes, I found low prices, high quality and I had scraped together 50,000 First Steps stylish designs. I have suc• yuan. In 1983, a city district ceeded. official in charge of industry I then started a printing I do everything myself, de• and commerce said that he

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 19 and contract law. At present, I have to pay 11 kinds of taxes and duties, such as business tax, income tax, and taxes for education, con• struction, real estate, land use as well as industrial and com• mercial consolidated duties. To be frank, I am taxed too much. Anyway, I have always paid my dues on time, and nev• er refused, evaded or delayed. Ever since I started my bus• iness, I have maintained a sound book-keeping system re• cording all transactions from the purchase of raw materials and production through to marketing. Recently, the city's tax collectors came to check my accounts. No problems were discovered. The city gov• ernment has cited my business as "a civilized shop with high credit." Every year, the city hoped I would hire some laxed. I've always wanted to government praises me for young people to earn more for• develop, but have also always abiding by the law. I am now a eign exchange for the country. worried that the government deputy to the Municipal Peo• With the support of the dis• would change its policy to• ple's Congress and a member trict government, I erected a wards private enterprises and of the city's federation of in• makeshift plywood workshop label me a "capitalist." How• dustry and commerce associa• covering more than 70 square ever, this fear was finally re• tion. metres and hired seven young moved by the Party's decision In business, I have never people and retired workers. at its 13th National Congress given government officials any In 1985, I opened another in 1987 that China needs bribes or offered salesmen any arts and crafts factory to hire a multi-ownership economic rebates. I run my business ful• some disabled young people. structure with public owner• ly within the boundaries of the On September 4, 1985, former ship predominant at the pri• law and state regulations. US President Richard Nixon mary stage of socialism. toured my factory, wishing me Therefore, the development of a prosperous future. individual businesses and the Honest Money In July 1986, I built a two- private economy was to be en• According to an ancient storey factory furnished with couraged. I feel much relieved Chinese saying, gentlemen new equipment. I also bought at the promulgation of the make honest money. For pri• a truck and opened a store in Provisional Regulations Con• vate entrepreneurs like me, the Summer Palace, a tourist cerning Private Enterprises this is a good creed. To make attraction in west Beijing. and the insertion of a special money, one must rely on good Now my factory has total as• provision on private enterpris• credit, quality products and sets of more than 500,000 yuan es in the Constitution. good service. However, there and employs more than 20 Private enterprises can de• are quite a few individual bus• workers. velop freely so long as they inessmen who make money in confine their business activi• crooked ways. These people ties within the limits of the law will never succeed. Legal Backing and state policies. There are Since China's private enter• Although I have succeeded now dozens of laws and regula• prises are still in their infancy, in business in the past few tions relating to private enter• society holds many prejudices years, I have never felt re• prises, including taxation law against entrepreneurs and

20 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 lacks confidence in their pro• Good service. Good service is conduct market investigations jects. For example, when I ad• my factory's lifeblood. I train to find out what consumers vertised my products to some my employees to treat their like most and why. For exam• big hotels in my early days, clients as supremacy. One day, ple, on one batch of T-shirts I they declined to deal with me a foreign woman came to my printed a Han Dynasty design when they discovered I ran shop, one of my attendants of a warrior riding a chariot. a private shop. Even today, mistakenly overcharged her Alongside I put a verse by the some state-owned shops still one yuan. Checking the ac• Song Dynasty poet Su Shi "En• refuse to place orders for my counts in the evening, I dis• joying a Sightseeing Tour in products. Well, I have to do as covered the error and imme• the Motherland" with the En• best I can, but nonetheless the diately went to the hotel to re• glish words "China, My Moth• discrimination rankles. turn the one yuan to the lady erland." To my surprise, the To overcome these prob• and apologize. Much moved T-shirts were well received by lems, I have taken the follow• by our way of doing business, overseas Chinese on tourist ing measures: the woman repeatedly praised trips to China. One overseas High quality at low cost. My our shop for its high business Chinese from Indonesia said, shop sells about 1,000 kinds of ethics. "As leaves fall back to the traditional Chinese arts and After-sales backup. Refunds, roots sooner or later, I must crafts, all of them of high replacements and maintenance come back to my homeland." quality. I buy them directly are guaranteed on all sales. I Moreover, my products have from producers to sidestep the try to satisfy all the require• also found their way to the costly intermediate links, and ments of my clients. Atten• United States, Japan, France, then sell them at prices about dants, if found quarrelling Italy, the Federal Republic of 33 percent lower than in state with consumers or behaving Germany and Hong Kong. Re• shops. My aim is to sell more badly in any other way, will be cently I was granted the power at a lower profit margin. In fired without delay. to trade directly with foreign the last few years, we have re• New and fashionable com• businessmen. ceived more than 5,000 foreign modities. I am responsible for I am very ambitious, and customers. A lot of them have developing new designs and don't feel satisfied with my returned many times. Many styles. I am deeply convinced success on the domestic mar• Chinese about to go abroad that only a factory that keeps ket. I want to carve a big• come to buy gifts for their for• turning out good products can ger share of the world mar• eign friends. ket. This month, I am going to survive in the market. I often Bolivia to see how my products might fare in South America. Ex-US President Rictiard Nixon tours Zhang's shop on his fifth visit to China in September 1985. My Employees As everyone knows, rela• tions between a Chinese boss and his employees are delicate in China. For a while they get along quite well, and then sud• denly a dispute erupts. Accus• tomed to the old way of "eat• ing from the same big pot" regardless of how hard they worked, some of my employees lacked a sense of responsibility and tended to take things easy. Some of them came to my fac• tory through the recommenda• tion of big shots, and others were disabled, assigned to my factory by the government to help them support themselves. These are some of the difficul-

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 21 state-owned factory. My fami• ly and I live in a home of one- and-a-half rooms, fitted with furniture I made myself. Like an average Chinese home, we have just a few electric appli• ances and consumer durables. I have never dined at the city's big hotels and restaurants even though I often visit them on business. I remain an ordinary Chinese. However, I never hesitate to spend on things I regard as be• neficial to society. For exam• ple, I have donated more than 12,000 yuan to the Children's Foundation and the Founda• tion for the Disabled. My Problems Although developing the private economy is China's Goods piled high in Zhang's shop. XUE CHAO long-term policy, some private entrepreneurs still worry that it might change someday. It's also worrying that some grass• ties of management. However, we don't always roots cadres don't carry out It's no easy job to operate a see eye to eye, especially over the Party's policy to the letter. private factory. I have to income distribution. They They often give private entre• do almost everything myself, think I must have made big preneurs a hard time, by levy• from arranging production money by exploiting them. ing heavy duties, for example. and dealing with public re• They never feel satisfied even There .is widespread prejud• lations through to marketing though they are much better ice against and misunder• and receiving visitors. Every paid than their counterparts standing of private entre• month, each of my employees in state-owned factories. I am preneurs in our society. Some is required to fulfill a quota of going to try out the joint-stock people only see how much 5,000 yuan; my own quota system with my workforc-e money we have made. They is somewhere between 20,000 with dividends distributed ac• don't see how much labour we and 30,000 yuan. cording to the stock they hold. have put in. In addition, few private en• However, my employees and trepreneurs are well educat• I respect and treat each other Lifestyle ed and enterprising. Employ• as equals. I am always ready to My factory makes more than ees in private enterprises are discuss problems with any of 100,000 yuan a year. Apart much less educated and profi• them. Sometimes we shout at from paying taxes and my em• cient in management. In parti• each other, but mainly we re• ployees' wages, I spend most of cular, there is a shortage of main on good terms. the surplus on expanding prod• personnel in private enterpris• I offer my employees the uction. I hold in high esteem es capable of conducting for• same fringe benefits as work• the fine Chinese tradition of eign trade. ers enjoy in state-owned enter• plain living and hard work. Although faced with a large prises, such as food and hous• Although I now have a big sum number of problems and dif• ing subsidies, welfare insur• of money, I never squander a ficulties, private enterprises ance, various leaves and penny. Every month, I draw have a promising future. They recreational amenities. In my wage of 150 yuan, and now should march forward in the addition, they can come and go have savings of 20,000 yuan in next few years in large strides. any time they like. the bank. My wife works in a • 22 BEIJING REVIEW, FEB. 27-MARCH 5, J 989 FACTS & FIGURES The Individually Owned Economy

by the State Statistics Bureau hina restored indivi• important supplementary part education, public health, so• dually operated or of China's economy. Accord• cial welfare, public utilities or C household businesses in ing to the State Administra• consultancy services—close to 1978. Since then, this sector tion for Industry and Com• 650,000 people altogether. of the economy has registered merce, by the end of 1987, Only 17,000 worked in agricul• rapid growth in both rural and China's licensed self-employed ture, forestry, fisheries or wat• urban areas, largely in indus• had accounted for 4.1 percent er conservation. trial and commercial enter• of the total social workforce, With this broad spread, the prises. or 16.4 percent of all workers individually owned economy in state-owned and collective• can play a positive role in na• Expansion ly managed enterprises. In the tional economic development same year, urban and rural in• given the condition of produc• Since 1981, the number of dividually operated industry China's urban and rural house• produced a total output value tive forces at the primary stage hold enterprises and their em• of 50.239 billion yuan, 3.6 per• of socialism. ployees has increased yearly cent of the national figure, and In rural areas, the number of (see table). paid 7.959 billion yuan in tax• workers in industrial and com• The development of the es to the state. mercial households increased household economy has creat• from 1.219 million in 1981 to ed many new jobs, thus ab• 16.66 million in 1987. Of this sorbing large numbers of idle Distribution total, 5.076 million (30.4 per• workers and school graduates By the end of 1987, the vast cent) were engaged in industry (particularly in the coun• majority of China's urban self- (including handicrafts), com• tryside) and ensuring social employed, 4.87 million people, munications and transporta• stability. According to initial worked in tertiary industries. tion; 9.274 million (55.7 per• statistics for 1983-87, of all Some 800,000 worked in indus• cent) in commerce and cater• newly employed urban resi• try and construction (up from ing; and 2.31 million (13.9 dents, 4.22 million found work 120,000 in 1981). With the percent) in other trades. with household enterprises. continued expansion of mater• In 1987, these small rural As the number and income ial and cultural demands, a businesses produced 24.45 bil• of this economic sector have large number had started bus• lion yuan's worth of output increased, it has become an inesses in the fields of culture, value on a total business vol-

Unit: 1,000 1981 1982 1983 1984 1985 1986 1987 Number of households 1,829 2,636 5,901 9,304 11,710 12,111 13,725 Urban 868 1,132 1,706 2,222 2,799 2,910 3,383 Rural 961 1,504 4,195 7,082 8,911 9,201 10,342 Number of employees 2,274 3,198 7,465 13,031 17,660 18,459 21,583 Urban 1,056 1,358 2,086 2,911 3,849 4,076 4,923 Rural 1,218 1,840 5,379 10,120 13,811 14,383 16,660

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 Tibet: Human Rights and Religion Human rights, religion and education are the major issues examined in the second instalment taken from "100 Questions About Tibet," just published by Beijing Review Press. Based on first-hand accounts and historical documents, the book aims at answering many of the questions raised about Tibet in recent years. The first instalment and a full review of the book appeared in our last issue. —Ed.

Q: Some people have said that crimination" in Tibet. What is proportion of high officials. Tihet has several hundred pri• the reality? All prefectural, county and sons holding many thousands of township leaders are Tibetans. political prisoners. Others have A: This just is not true. Clearly, the Tibetan people are claimed that Tibet has 73 pri• China is a multi-national their own masters. sons with 80,000 prisoners. country, and the Tibetans are What are the facts? just one of China's 56 nation• Q: Some people have said that A; Neither of these claims alities. The Chinese Commun• Tibetans cannot act freely in are true. At present, the Tibet ist Party has always carried Tibet, and that Tibetan cadres Autonomous Region has only out the policy of equality be• and children aged under 18 can• one prison and two reform- tween all nationalities. After not travel abroad. Is this true? through-labour teams. Be• the peaceful liberation of Ti• tween them they hold some bet, the central government A: That isn't how things 900 prisoners. All of them are showed great concern and gave stand. Like all Chinese, Tibe• criminals who violated China's much support to developing tans enjoy the full rights of Criminal Law. All the prison• the region and improving the democracy and freedom en• ers who participated the 1959 livelihood of its people. Their shrined in the country's Con• rebellion have already been re• religious beliefs, customs and stitution. Because of this, leased. habits have been respected and China welcomes foreign visi• regional autonomy fostered. tors to travel to Tibet and dis• Q: Some people have accused Now, more than 61 percent of cover for themselves the true China of carrying out "racial Tibet's government employees condition of the region. segregation" and "racial dis• are Tibetans, including a great It is also false statement to ume of 70.23 billion yuan. have reinvested most of their prises has come from illicit or Their retail sales totalled 48.7 profits in expanding produc• illegal sources. Both of these billion yuan (8.4 percent of na• tion and hiring more workers. factors disrupt the normal or• tional retail sales), and by the Most, however, have not. Be• der of social and economic ac• end of the year they had 18 cause the educational level of tivity. billion yuan at their own dis• most owners is low and govern• At present, privately owned posal (according to the State ment management of this sec• enterprises appear to make Administration for Industry tor of the economy is inef• better use of their income than and Commerce, the figure for fective, their predominantly individually owned business• urban and rural industrial and short-term orientation needs es. They not only tend to have commercial enterprises com• correction. At present, a large higher rates of productivity bined was 23.61 billion yuan). proportion of their income but also use more advanced As their incomes have in• goes on consumption, while technology and equipment, creased dramatically, some in• some part of the increased val• thus proportionately creating dividually owned enterprises ue and capital of their enter• more social wealth. •

24 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 claim that Tibetan cadres and students are Tibetan; 2,130 of Q: It is reported that there are children under 18 are not al• the 3,060 students in secon• serious problems of unemploy• lowed to go abroad. Since dary vocational schools are Ti• ment and child labour among China implemented its reform betan; and more than 1,900 of the Tibetans. Is it true? and open policy, the number the 2,860 college students are of Tibetans travelling abroad Tibetan. To further develop A: Tibet's labour force is not to teach or study has gradually the region's education, the re• in the surplus; instead, it has increased. More recently, sev• gional people's government al• been falling short of demand eral art troupes have also visit• located one-eighth of its an• for the economic development. ed other countries to give per• nual budget for education, the The worker-recruitment quo• formances. In addition, ar• largest ratio in the country. tas set by the state for the ound 1,000 Tibetan cadres and In contrast to the present si• region every year are always citizens have visited their rela• tuation, there was not a single hard to meet. The so-called tives and friends abroad. Some modern school in Tibet before serious problem of unemploy• of them have taken their child• 1951. There were only a few ment is nonexistent in Tibet. ren with them. It has to be old-style private schools whose Among the recruited workers, noted, however, that because enrolment totalled less than Tibetans are always in the ma• some exiles still attempt to 600. Now 54.4 percent of jority. In terms of wages, indoctrinate young Tibetans school-age children attend fringe benefits and labour pro• with reactionary ideas of "Ti• school, and total enrolment at tection, the state treats Tibe• betan Independence," Tibet's all levels of schooling is close tan and Han workers equally. local government has to take to 150,000. Illiteracy has The Chinese government has some precautions. dropped from 98 percent in clearly stated a ban on child 1951 to 60 percent. Of course, labour. In Tibet child labour Q: The Dalai Lama and others this is still not satisfactory and has never been a serious prob• say that Tibetan children have great efforts must be made to lem. It is true that in the farm• been deprived of the right to improve the present situation. ing and pastoral areas of Tibet education and that Tibet has In any event, there is no way some children share their par• become an area of illiteracy. Is one can conclude that Tibetan ents' work. Although this of• this true? children have been deprived of ten adversely affects the popu• their right to education or that larization of primary educa• A: These remarks are not Tibet has been turned into an tion, it is a problem of a differ• based on facts. The real situa• area of illiteracy. ent nature. tion is: since peaceful libera• tion in 1951, there have Q: People at the side of been continual efforts The Living Buddha Pumi Qiangba Luozhu, deputy chair• the Dalai Lama also said man of the Tibet branch of the Buddhist Association of to develop education in China. In 1958 he was awarded a first-class Geshi (doc• that the hospitals in Ti• Tibet. By the end of torate) together with the 14th Dalai Lama. bet only serve the Han 1986, a total of 148,000 people. Is that true? students were enrolled in schools in the auton• A: Not at all. As is omous region. The re• well known, the gion now has three in• Chinese People's Liber• stitutions of higher ation Army garrisoned learning, 14 secondary in Tibet sent many med• vocational schools, 64 ical teams to cities, middle schools, and towns and the country• more than 2,300 elemen• side to give Tibetans tary schools. free medical care in the Tibetans make up a early 1950s. Since then, large proportion of the Tibet has been the only students. For example, place in China where all 109,000 of the 121,000 the people receive free elementary students are medical service. All Ti• Tibetan; 14,200 of the betans, government em• 21,950 middle school ployees or not, need pay BEIJING REVIEW, FEB. 27-MARCH 5, 1989 25 only been encour• aged among Tibetan cadres, workers and staff where the con• ditions were suit• able. The govern• ment has never asked the Tibetan farmers and herds• men to practise fam• ily planning. Even among the Tibetan cadres, workers and staff, the regula• tions are far more lenient than is the case with Hans in other parts of China. The state ad• Lamas in the Sera l\Aonastery attending their morning lesson. vocates one child per couple, permits neither for seeing a doctor nor two, and occasionally three for an operation. Even their Q: How long is the average life• under special conditions. expenses for medicine are span of the Tibetans living in At the same time, Tibet's borne by the state. Tibet? How is it compared with public health departments for more than 30 years, the what it was before the peaceful have actively strived to raise majority of out-patients and liberation of Tibet? health standards for women in-patients in the hospitals run and children. With the aim of by the autonomous region has A: Along with the rising of raising the birthrate and low• been Tibetans. For example, people's living standards and ering infant mortality, new the total number of out• the development of the med• midwifery methods have been patients in Tibetan hospitals ical and health facilities and popularized, women have been in 1986 was 6,340,165, of services, the Tibetan popula• encouraged to give birth in which 5,858,204 were Tibetan tion in Tibet has increased hospital and knowledge on in• patients, or 92.4 percent of the greatly since the region's fant health has been widely total. The total number of in• peaceful liberation in 1951. disseminated. As a result, the patients were 72,212, of which The size of the population has Tibetan population has risen 65,712 were Tibetans, or 91 expanded from 1.2 million in from 1.2 million in 1952 to percent. 1951 to today's 2 million. The about 2 million in 1986. According to census data, average life-expectancy of Ti• the birthrate in the population betans has risen from 35.5 Q: What were the conditions re• of Tibet in 1981 was 31.05 per years before the liberation to garding human rights in Tibet thousand. That was 10.15 per 63.7 today, a margin of 28.2 before democratic reform? thousand higher than the na• years. tional birthrate of the same A: Before democratic re• year. The mortality rate was Q: Some people have claimed form, Tibet was a feudal serf• 9.8 per thousand, compared that China practised forced dom. The entire means of with 30 per thousand before sterilization and the killing of production was owned by less the democratic reform in 1959. infants in Tibet. Is this true? than 5 percent of the popula• Population growth was 21.13 tion made up of officials, no• per thousand. It was good A: This is nothing other than bles and monasteries—the so- medical service and effective sheer nonsense. China began called three estate-holders. measures taken to prevent ma• to advocate family planning The majority of Tibetans were lignant infections and cure di• throughout the country in the slaves or serfs. Regarded as seases affecting natality that 1970s, achieving notable re• private property by their own• caused this situation. sults. In Tibet, however, it has ers, they were made to work

26 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 day and night, sold, exchanged centres have been renovated or mortgaged. If they diso• and reopened. beyed orders or did something The Tibetan branch of the wrong, they could be cruelly Buddhist Association of China tortured or even killed. Under and Buddhist associations in such conditions, most Tibe• all prefectures and cities in the tans could hardly even consi• region have been reinstated. A der personal freedom, let alone Tibetan Buddhist college has human rights. been established, and all mon• asteries have opened sutra- Q: Some people claim that the learning classes. The Sunning- Chinese Communist Party has the-Buddha Festival, in 1985, ' eliminated religion in Tibet. Is and the Monlam (summons this true? ceremony) of Lhasa in 1986, both of which had been sus• A: Any one who has been to Tibet and has no prejudice will pended because of the "cultur• say it is not true. al revolution" were revived. Hot Off the Press In Tibet there are now 1,142 During the 1966-76 "cultur• active monasteries and reli• al revolution," due to "leftist" One Hundred Questions gious centres. Incense smoke errors, the religious policies of About Tibet has just been can be seen everywhere cur• the Chinese Communist Party published in Chinese, En• ling up from the monasteries. were disrupted. Many temples glish, French, German and Spanish by the Beijing Re• Lamps in front of Buddhist and monasteries in Tibet suf• view Press. statues burn day and night. fered serious destruction. But The book covers 10 topics: There are always continuous this problem was not exclusive history, population, human streams of worshippers walk• to Tibet. Temples and monas• rights, the Dalai Lama, re• ing round monasteries and teries in other parts of China ligion, culture, autonomy, prostrating themselves in the also suffered. Now the catas• street to pray. Most Tibe• economy, people's liveli• trophe has passed, and the Par• tan families have niches for hood and the Lhasa riots. In ty's policy of religious Buddhist statues, and colour• a question-answer format, freedom is being fully im• ful sutra streamers are openly the book provides a wealth plemented. displayed. of historical records and Chinese Communists are facts for people at home and atheists, but they are not op• Q: Are there any professional abroad curious about the posed to others having reli• schools for training religious developments in Tibet. gious beliefs. They do not workers in Tibet? In a 34-mo format, the stand for the abolition of reli• book totals 70,000 words, gions by force. China's Consti• A: Yes, there are. The Tibet with 42 photos and a map of tution stipulates that all ci• College of Buddhism, founded Tibet. tizens have the freedom to in 1983, prepares students for Available from Business Department, Beijing Re• religious belief. But no state future religious work, and var• view, 24 Baiwanzhuang organs, social groups or indivi• ious large temples and mon• Road, Beijing 100037, duals are allowed to interfere asteries also open classes for China. with or discriminate against learning sutras. Moreover, a the religious beliefs of others. Price: high-level Tibetan Buddhist In fact, regular religious activ• Outside China-US$3.50 institute has been founded in ities are protected by the state. (including international Beijing mainly for cultivating In the past 10 years, the postage, surface mail); the living Buddhas. The presi• Chinese government has allo• US$5.00 (including interna• dent of the institute was cated more than 36 million tional postage, air mail); yuan in special funds to re• Bainqen Erdini Qoigyi Gyain- Inside China"RMB4.00 build and renovate monaster• cain, one of the two highest ies in Tibet that were des• living Buddhas in Tibet. He troyed during the "cultural died of heart attack on Janu• revolution." Many religious ary 28, 1989. •

BEIJING REVIEW. FEB. 27-MARCH 5, 1989 • Computer crimes. iVIany embezzlers juggling accounts for profit now commit their New Economic Crimes crimes with the aid of compu• ters. A cashier in a hotel in Arise Guangzhou, for example, stole 10,400 yuan in Foreign Ex• change Certificates and 11,000 JINGJI RIBAO time increase over the corres• yuan in Renminbi with the aid (Economic Daily) ponding period of the previous of a computer. year. • Absconding with funds. erious economic crimes • Younger offenders. Due In Guangzhou, Wenzhou and have continued to occur to rising patterns of consump• Bengbu, a total of 38 offenders S and some new situations tion, some young people in absconded with funds in 1988, and characteristics have charge of money and mater• including five from Guang• emerged in the last two years. ials have seriously attempted zhou who fled the country. This is because new economic to embezzle public funds order has not been esta• and commit other economic • Spending patterns. Since blished and appropriate mea• crimes. According to statistics 1987, a large number of of• sures have not been taken. from Huangshan and Chong• fenders have spent their illicit • More major graft and bri• qing procuratorates, between gains on expensive commodi• bery cases. In 1986, 39,600 cas• January and August 1988, 30 ties, fancy eating and drink• es of major graft and bribery offenders convicted of econo• ing, and gambling. were investigated by the peo• mic crimes were under the age (December 15, 1988) ple's procuratorial organiza• of 35. They made up 53 per• tions, accounting for 80 per• cent of the total number of cent of all cases handled by cases investigated and prose• Students Voice these organizations. In 1987, cuted. 28,000 such cases were investi• E Criminal partnerships. Be• Their Concerns gated, making up 75 percent of fore 1986, most crimes were the total cases on record. From committed by individuals act• January through October of ing alone. But after 1987, a 1988, the number of such cases pattern of crimes committed ZHONGGUOQINGNIAN BAO was 16,000, or 71 percent of in partnership has emerged. In (China Youth News) the total cases investigated. one county alone, from the be• recent survey asked 450 Among the economic cases ginning of 1987 to September Beijing students what handled by the people's pro- 1988, 14 such cases were re• concerned them most curatorates, major economic corded, and 63 people were Aand listed the ten top issues: cases numbered 5,392, or 17 found guilty. Each case in• 1. Some middle-school stu• percent of the total in 1987, volved an average of five part• dents are hesitant about apply• and during the first ten ners, and one case involved ing for higher education be• months of 1988, there were more than 100 people. cause of the state's new policy 2,400 such major economic • Officials in crime. The of not securing jobs for college cases, or 16 percent of the to• number of government offi• graduates as of 1993. That tal cases filed for investigation cials engaging in economic means those who become and prosecution. crimes has increased in recent freshmen at universities then In some regions the totals years. Of 31 offenders inves• will have to find their own jobs were even higher. In Guang• tigated by Jiangxi Xinjian when they complete their stu• zhou, there were 45 cases of County Procuratorate in 1986, dies in four years. Current major graft and bribery inves• for example, five (or 16 per• middle-school students aren't tigated by the municipal pro- cent) were leading cadres. sure which offers a better fu• curatorate between January From 1987 to September 1988, ture, going to college or find• and October 1988 that in• 31 of 89 economic crimes had ing a job right after gradua• volved more than 10,000 yuan been committed by unit lead• tion. each, or 40.2 percent of the to• ers, accounting for 35 percent 2. The students want to fol• tal cases recorded during that of the total number of such low the example of their for• period. This represented a 3.3 crimes in that county. eign counterparts and work 28 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 part-time during vacatiortS in women students even in front money and materials from so• order to earn their own pocket of school gates. ciety and people. As a result, money. But they find it is not {December 13, 1988) overlording has emerged. easy to get a casual job. This is vulgar power wor• 3. The method of students shipping. It has changed peo• choosing their own teachers Power Lures ple's social responsibility and has been adopted in some mutual help into power rela• schools and well received by Worshipers tions. students. Its strong points can Replacing law by power. Law arouse students' enthusiasm should be the criterion of ac• for studying and mitigate con• tion for all people in society. tradictions between teaching Its great significance lies in and studying. LILUNXINXIBAO the fact that every one abides 4. Students falling in love by the law. at an early age has become a (Theoreticallnformation) The "cultural revolution" • problem of much social con• here are characteristics (1966-76), presented the most cern. However, no good solu• T that indicate the existence ridiculous and longest farce of tion, if any, is available. Ac• of a worshiping power in power treading law ever seen cording to the survey, the China's present society. They in China. Even today many number of early lovers is in• are mainly as follows: power-wielders still hold that creasing. Official rank system. Offi• the law is to deal with the ene• 5. Students also are con• cial titles and ranks are seen my or restrain the masses and cerned about the way that as standards or parameters to has nothing to do with them. classmates help each other do measure people's social, There are many cases of power homework for money. Some political and economic pos• overshadowing law. students think that the prac• itions and the value of life. In Seeking pers.onal gains with tice reflects new values while the process of social manage• power. In our society, some others argue that it is nothing ment, it is not unusual to de• people regard power as some• short of capitalism in which termine the standards of var• thing more valuable than only money counts. The prob• ious social organizations and money. They try their best to lem is whether it is all right their members' posts and liv• transform power into proper• to introduce market rules into ing conditions according to ad• ty. The ways of transformation classroom. ministrative ranks. are various. The most popular 6. Students hope to introd• Essentially, the status of of• is the unhealthy tendency of uce the competitive mechan• ficial ranks correlates with the taking bribes. To give dinners ism to their classroom and degree of power, and power or offer gifts and bribes does elect class leaders by way of becomes the standard by not mean that ordinery people contest. which officials are ranked. hold those power-wielders in 7. Smoking has become a Therefore, the official stan• esteem. Actually, it means that common phenomenon among dard is the power standard in powerless people worship the male students. substance. power some people hold and 8. Students also complain Overlording. In a human so• hope to gain some benefits that they have no place to go ciety, each member constitutes from it. Writing a slip of paper for after-school refreshments a part of the society. Take is power; a ticket is power; and and activities. workers, farmers, tax collec• a signature is power. Those 9. Some schools collect tors, policemen, teachers and who have it can gain benefits. money from students under all customs officers for example. The phenomenon of bureau• sorts of pretexts. Take a school Each of them has his or her job cratic profiteers in recent in Beijing's Fengtai District that is indispensable to socie• years is an even more undis• for example. Each student ty. To safeguard the normality guised worship of power. Some payed an average of 116 yuan of social lives while working at social organizations and indi• for various activities during their posts is their duty. viduals take advantage of their half of a term. However, a number of peo• positions and power to disturb 10. Students lack a sense ple look upon their duty as nomal commodity circulation of security. Some lawbreak• means to achieve power. Be• and reap staggering profits. ers publicly extort money from cause they have special roles (December 12, 1988) students or take liberties with within society, they think that they have the power to extort BEIJING REVIEW, FEB. 27-MARCH 5, 1989 29 BUSINESS/TRADE

Bush Looks Good for Sino-US Ties

ith George Bush at the helm, Sino-US eco• W nomic co-operation should advance rapidly and smoothly, a Beijing expert predicted recently. Kong Fanchang, a research• er at China's Ministry of For• eign Economic Relations and Trade, said that the United States was looking to develop overseas markets during the next few years to maintain its economic and trade strength. He said that American busi• Sino-US co-operation: A IVIcDonnel Douglas MD-82 made in China. ness circles were looking more YANG PUTAO and more towards Asian- Pacific countries because of its competitiveness and ex• projects in China at around their trade potential. With pand its share of world mar• 500, with total investment at China embarked on its mod• kets. US$3.17 billion. The US is ernization drive, prospects for With one country able to now the largest source of for• joint economic development supply the other's needs, Kong eign investment in China. were rosy. said, there was a wide range He added that over the next of possibilities for future co• In the first 11 months of few years co-operation could operation. 1988, bilateral trade to• become a springboard for eco• According to a Chinese com• talled US$7.14 billion, mak• nomic growth and trade: mentator, many of the coun• ing China the United States' China, with its rich labour re• try's official researchers are 13th largest trade partner. sources and huge potential confident that George Bush With 9 percent of China's for• market, needed investment will help Sino-US relations be• eign trade, the United States is and technology, while the Un• cause he has a greater know• China's fourth largest partner ited States, with abundant ledge of the country than his after Hong Kong, Japan and funds and advanced technolo• predecessors. the European Community. gy, badly needed cheap labour Recent government statistics from other countries to raise put the number of US-funded by Yue Haitao Some Imports Substandard uring 1988, China's im• fied in their contracts. Al• The quality of timber im• port inspectors uncov• though compensation pay• proved slightly, but supplies D ered many problems iii ments of US$100 million were were often underweight. the quality of imported goods. recouped, many Chinese man• As well as poor quality, According to Zhu Zhenyuan, ufacturers still suffered heavy there were several instances of director of the State Commod• losses. old manufacturing equipment ity Inspection Bureau, of the Among the major proble• being supplied. Among the 70,402 batches of imported matical goods were machinery, major cases were an American commodities examined, 15,902 electrical products, wool, na- bottle-making production line were below the standard speci• 'tural rubber and plastic resin. bought by Hubei Province,

30 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 BUSINESS/TRADE

French vegetable dehydrating equipment bought by Yun• nan Province, Belgian carpet Confidence Lifts Foreign Funding machinery for a gunny jac- quard loom bought by Hunan mproved operating results Additionally, he said that Province, Italian milk pro• for established investors in 240 foreign firms announced cessing equipment bought by I China and a growing in• commitments for wholly Shanghai and Tianjin, and a terest in the Chinese market owned ventures in China last French compound can produc• helped push commitments for year—the most difficult form tion line bought by Zhejiang direct foreign investment in for a foreign investor to real• Province. China to a record US$12.5 bil• ize. According to Anhui's in• lion in 1988, according to a Despite the increae in for• spection authorities, 22 per• recent study by A.T. Kearney, eign investment, however, cent of the 3,861 tons of plas• I Inc. That is double the US$6.3 Banks noted that some prior tic resin it inspected last year billion committed to invest• concerns about raw materials were substandard. ment in China in 1985, the last shortages, quality deficiencies The State Commodity In• time a record was set. and price escalation for raw spection Bureau said most of A.T. Kearney, an interna• materials and components re• the problems stemmed from tional management consulting main a stumbling block for inadequate procedures to veri• firm based in Chicago, origin• foreign investors, particularly fy the standard of technology ally conducted a study of for• in manufacturing joint ven• and commodities in contracts. eign manufacturing experi• tures. To rectify the situation, effec• ence in China in 1987 in con• tive measures are needed to "So, while China offers one junction with the Internation• strengthen the management of of the world's greatest oppor• al Trade Research Institute in examination and approval of tunities for trade and invest• Beijing. The 1988 data were imported items. Zhu said these ment growth—and joint ven• derived from the firm's first should be incorporated into tures are an excellent way to annual update. contracts, along with clauses secure a position in this mar• on compensation payments. Philip F. Banks, vice presi• ket—it is vital that a success• ful foreign joint venture be He added that quality lic• dent in charge of Kearney's in• able to offer a solution to the ences for imported commodi• ternational division and direc• raw materials and components ties would be introduced dur• tor of its operations in China, supply situation while address• ing 1989 for household electr• said the doubling of foreign in• ing the attendant matter of ical appliances, automobiles vestment in China has resulted foreign exchange," Banks said. and motorcycles. A full list of from improving conditions ex• goods requiring the licences perienced by current foreign In the past. Banks said, would be published during the investors and the growing im• joint manufacturing ventures first half of the year. portance of China as a market in China often had to import and for the sourcing of prod• China's Commodity Inspec• more supplies than originally ucts from this base on the Pa• tion Law should be examined planned. "For example, it has cific Rim. For example, inves• and approved at the sixth taken nearly three years for tors find that the payback meeting of the Standing Com• Volkswagen to achieve more point is being reached sooner, mittee of the National People's than 10 percent of its sourcing he said. Congress to be held later this from local suppliers in a joint year. It appeared that the fulfill• venture in Shanghai," he said.' ment of business contracts in "This type of situation has a by Li Ning China is becoming easier for significant influence on the foreign firms. Banks said. ability of a joint venture to "While only about US$2 bil• develop a positive net foreign lion of the US$6 billion com• exchange balance." mitted to Chinese investments "Our latest research indi• CORRECTION: in 1985 actually came to frui• cates that, in spite of difficul• In our last issue, the last line of tion, US$8.8 billion of the Editor's Note on p.21 should read "(a ties, confidence is definite• full review) by Israel Epstein, a noted US$12.5 billion in 1988 com• ly increasing among foreign writer who has visited Tibet four mitments has already been firms doing business in times.—Ed." realized." China," Banks said. •

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 31 CULTURE/SCIENCE

Break Dancing: A New Craze

t is not unusual to find at the capital of China, also held well as the viewers intensely I the empty spots along the a Best Breakdancer Contest. excited, and at the same time, road down, small lanes and The contestants were from all lighthearted and relaxed; it in the parks a cluster of young walks of life, including work• can be viewal as an explosion people breakdancers, with ers, cadres, middle school stu• of vitality. Some people noted that breakdancing was consi• rock'n' roll blaring from a re• dents and college students, as derably more free in action corder on the ground. At well as professional dancers. than other types of dancing, dance parties, break dancing During the contest, the Shou- and as a result, served as an lovers match skills with one du Workers Gymnasium, with expression of individual per• another, and even some of the a capacity of 12,000 people, sonality and character. Al• professional arts troupes per• had a full house. though there are many people form break dances to attract The Breakdancing craze who feel either curious or audiences. Last year, a feature among Chinese youngsters is a disgusted with breakdancing, most appreciate it or at least film entitled Young People of social reflection of today's li• Rock'n' Roll was produced by maintain a lenient attitude to• festyle and cultural psycholo• wards such a craze. the Beijing Youth Film Studio. gy. Fans said that the dances Many break dancing con• can make the participants as by Feng Jing tests were held in various parts of the A national break dance contest. TANG SHIZENG country. Such a con• test in Nanjing, a city in eastern China, lasted about 20 days, and each night, nearly ten thousand people at• tended. Those who failed to get a tick• et did their own breakdancing just outside, accompan• ied by the rock mu• sic from within. An• other such contest held in Shijia- zhuang, capital of Hebei Province, drew about one hundred breakdanc• ing stars from ten northern Chinese ci• ties. Provincial and city leaders were present and con• ferred the awards to (» i * * • *' * 4th. ^^^^^^ the winners. Beijing,

32 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 CULTURE/SCIENCE

Qin Terra Cottas: New Sites Ahead

n mid-December, Chinese hibition hall of 16 thousand cers, as well as a ring of 64 archaeologists began to dig square metres was built atop armoured warriors, which sur• I out and restore Cave No. 3 Cave No. 1, which greeted round the commander's char• of the Qin Dynasty Terra Cot- public eyes on October 1, 1979. iot at the centre. The only ev• ta Warriors and Horses, locat• So far, it has drawn more than idence of weapons are 30 ed about 40 km east of Xian 10 million foreign and domes• bronze shu (a kind of ancient in Shaanxi Province. The new tic visitors. lance), which serviced the site is scheduled to be opened The third cave's spanking- honour guards. Experts con• to visitors on October 1, 1989, new exhibition hall, with an cluded that this cave was the a date coinciding with the 40th area of 2,000 square metres, is command headquarters for anniversary of the founding located about 20 metres nor• troops quartered in the first of the People's Republic of thwest of the previous cave. and second caves. China. While the oldest hall is arch- Some 20 metres north of the The clay warriors and horses structured and employs natur• first cave is the exhibition are artifacts from the tomb of al lighting, the newest has hall of Cave No. 2. This Qin Shihuang, China's first a solid, earthy appeal. Its 12,500-square-metre construc• emperor, who unified the ladder-shaped structure and tion was first undertaken in country in 221 BC. Within artificial lighting highlight a early December 1988. More the mausoleum area, there are vivid ancient atmosphere. than 1,000 clay warriors and three caves for approximately The molded surface of the horses entombed in Cave No. 2 8,000 life-size clay warriors third cave enshrines a four- will be persued by the public and horses. Previously an ex• horse chariot and four offi• in 1990. •

Dai Qing: A Prolific Woman Writer

ai Qing is by no means from his wife who works in in two volumes titled No and China's only talented another place. When they fin• The Last Ellipse respectively. D contemporary woman ally are reunited, the engineer They all share the style of writer, ut since the publication catches a terminal disease and Lo«g/«g--simple, unsophisti• of her first short story. Long• dies. cated, but always driving a ing, in 1979, her choice of sen• Upon publication, the piece strong plot to a climax. sitive themes and use of a drew great attention, and Dai, One of the best of these tales straightforward but critical a graduate of Harbin Military is Snowball, the story of a cat style has attracted ever more Industry University in the who grows fat from easy liv• readers. northeast of China, said good• ing. Discontented with her Longing was a product of the bye to her original profession slothful existence, she resolves ten year turmoil of the "cul• to take up an invitation to to perform great feats. Ventur• tural revolution"( 1966-76). It work as a journalist for the ing out one night, she encoun• portrays an intellectual's life Guangming Daily. ters, fights and defeats a group and psyche in a fatalistic and Since then, she has written of homeless cats. But in her sad tone. Its leading character a series of short stories, 18 of moment of victory, she feels a is an engineer, long separated which have now been collected sudden perplexity. Finding the

BEIJING REVIEW, FEB. 27-MARCH 5, 1989 33 CULTURE/SCIENCE vulgarity of her wild sisters unknown to most people. She —all sensitive themes that unbearable, she decides to re• follows Liang and Mao's rela• have found a ready number of turn to the comfort of her mas• tionship from their early days readers. ter's warm home. Clearly alle• as town fellows and good Dai, 48, stands at the peak of gorical, Dai uses the story as a friends to Mao's rebuke of her creative career. Since the vehicle to explore the intellec• Liang for his frank criticism beginning of the year, she has tual's psyche and the way so• of the Party's policies in the started preparing a large-scale ciety and habits fetter human 1950s. With a style that is reportage series under the ti• beings. calm, objective and reserved at tle China's Modern Intellec• Some of Dai's most effec• all times, Dai produces a tale tual Group—From Chen Duxiu tive works written since the compelling throughout. to Fang Lizi. Comprising all mid-1980s have been in the Dai's other reportage works her works on intellectuals, this field of reportage. Liang include a series titled Chinese work will include some con• Shuming and Mao Zedong is Women which examines the troversial celebrities and his• generally acknolwedged as the views of women on marriage, torical events—reflecting both best. In this piece, Dai disclos• love, sex and even sexual Dai's bravery and confidence es a series of historical facts crimes in contemporary China in her own abilities. •

Panda Cousins: Biggest Threat

s panda populations tend changing panda populations \i ing, the biologist said that his to live apart, the main living in different localities, ii on-the-spot survey told him A threat to China's state- fiut this can be effected only that there are at least two protected treasure, the giant after long years of study. The kinds of bamboo growing in panda, is species degeneration professor said that the most each of the panda-inhabitated and ever weaker vitality due to urgent tasks are the enforce• areas. Different kinds of bam• inbreeding, according to a re• ment of a law prohibiting the boo have different flowering cent argument of Associate capture and killing of the pan• periods. Generally speaking, Professor Pan Wenshi of Bei• da, and the strengthening of the intervals between flower- jing University, Pan is both a management in the panda re- j jin g periods are around 50 biologist and panda expert. serves so as to create a har• years to as long as 100 years. At present, around 240 pan• monious living environment Pandas who have lived on the das are living on the southern for both man and panda. earth for more than 2.4 million slopes of the Qinling Moun• Pan said that in the panda- years have witnessed 20,000 to tain range. Research says that inhabited areas among the 40,000 flowering periods and only 92 individual pandas Qinling Mountain range, there survived. So there is no food have the ability to reproduce. are five "mountain islands" crisis for the animal. According to the population covered with dense vegeta• In fact, in autumn 1983 figures based on genetic theo• tion. Four of the "islands" are when large tracts of lengjian ry, all the pandas living there linked by "corridors" while bamboo {Sinarundinaria niti- for another 12 generations of another stands in complete is• da) in the Wolong Nature Re• about 80 years will become olation. Pandas living in the serve flowered 2,600 metres cousins. This means that the latter area face the most ser• above sea level, those huaji giant panda population has en• ious danger. Contacts between bamboo bushes below that lev• tered a blind alley of inbreed• "islands" should be guaran• el didn't. Most of the pandas ing. teed so that pandas can visit roamed down to where huaji How can the animal be re• one another. bamboo grew and survived. lieved of this genetic pressure? As to the long-supposed This shows that the flowering Pan suggested retarding the treat to the panda due to the of lengjian bamboo poses no speed of inbreeding by ex• dying of bamboo after flower- threat to the animal. [i

34 BEIJING REVIEW, FEB. 27-MARCH 5, 1989 Two Children. Goats and Hounds.

Sketches by Li Aiguo

Li Aiguo was born in 1958 in Shengyang, Liaoning Province. He now teaches in the art department of Beijing Teachers' College. He aptly studies Chinese figure paint• ings made with fine, delicate strokes. These reproductions are of sketches drawn in the Hi Ka• zakh Autonomous Prefecture in Xinjiang. Exhibition of Produce Import-Export Trade Economic Co-operation Nanjing 1989

CHINA JIANGSU TRADE FAIR

Scheduled for February ^7-March 8,1989 Jiangsu Province welcomes business and trade representatives from around tlie world, compatriots from Hong Kong, Macao and Taiwan, and overseas Chinese to attend the China Jiangsu Trade Fair for import-export negotiations and trade talks. Venue: Xihuamen Hotel, Nanjing, China Exhibition Site: Jiangsu International Exhibition Centre For further information, please contact the Jiangsu Provincial Foreign Economic Relations and Trade Commission Office.

Tel: 712136 712600 Telex: 34023 ETCNJ CN Businessmen from Hong Kong and Macao may contact the Zhongshan Co., Ltd. (Hong Kong). Add: 45/F China Resources Bldg. 26 Harbour Rd., Wanchai, Hong Kong Tel: 5-8329968 Telex: 89699 ZHOSA HX Jiangsu Provincial Foreign Economic Relations and Trade Commission ind Various Foreign Trade Corporations of Jiangsu