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SHOOTINGHIGH Sport's developmentfueled by Olympic hopes

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VOL50 NO. 48 • " _ NOV. 29, 2007

2 EDITOR'SDESK 2 A Nation in Training 3 PEOPLE& POINTS 4 WEEKLYWATCH ] OWORLD 10 Building a Harmoniuus Partnership The China-EU summit kicks off 12 Going European The Chinese seek public COVER STORY It's difficult to envision that as administration skills in the West recently as half a century ago, China was a mere blip on the international sporting radar. Sport was the exclusive 14 Europe's Sweet Talk province of the well-heeled and influential, while the Major European countries woo majority of the people were too consumed by daily survival America all over again needs to pay it much attention. After 1949, however, the general population's lot improved and the government 18 actively began to publicize sport and good health as essential 18 What's Driving China's Transition? lifestyle attributes. State-sponsored clubs and events opened A renowned professor tells it like it is hitherto-closed doors to the common man, and sporting icons were born. Today, with some 2,000 international 20NAT,ON championship titles to its credit, and 286 medals from six 20 Path to Sporting Power summer Olympics~ China stands on the brink of being a Why a comprehensive exercise regimen must true world sporting superpower. Yet there remains a be followed nationwide yawning disparity between its few elite superstars of sport 23 Women Lead Medal Haul and the vast numbers of aspirants in training, a gap that Chinese women continue to outperform their can only be breached with a reallocation of funds and a nationwide program that brings gameplay and health to male compatriots the masses. 24 Sports on Campus 24 More Than a Game 37 Chinese Economy Remains Stable 26 Check on Power The sub-prime crisis blows over A bill aimed at curbing illegalities in sight 38 Cooling Fund Fever China's latest business vogue threatens to get 2 8 ,N ocus out of hand 28 Medals With Chinese Flair 40 Market Watch Harmony and sophistication are embedded in these new Paralympic medals 44CULTURE 44 Is the Writing on the Wail? 32Bus,. ss A dying script is given fresh sustenance 32 Overseas Expansion Merging with foreign banks becomes more bankable 46 Should the Car Free Day Initiative Be 34 Who'll Turn on the Lights? Compulsory? Energy issues plague the administration 36 U.S. Rate Cut Causes Reverberations 48 EXPAT'SEYE How China can manage its economy 48 The Real Taiyuan independently of America An idyllic city for the un-citified EDITOR'S DESN BEllINGREVIEW A Nation in Training By zHou JIANXIONG A News Weekly Published Since 19S8 http:/Avww.b~view.com . i eijing's successf~ bid to host the 2008 Summer Olympics has E--mall: " " been.viewed by many as something of great significance, as it INe~tlent & Editor la Chief: Wang Gangyl symbolizes the confidence the world Olympic family has in Deputy FAir in Chief: ~..g Wmdi B Vice Preside.t: qi Wengong China's organizationalability, and represents the global communi- Amodate Editon tn Chief: Li Jtang.o ty's acknowledgements of China's robust economic progress and HuemgWei people-centered social development. It can also be seen as a con- F.xt~G~ Edlilm~. ~aou Jianxiort8 gratulatory message from international sports circles for China's Assistant F_~ematlveEditors: Yao Bin, Ding Zhimo, extraordinary aehi~ts in developing its physical culture pro- 7Za~ Zhi#ng, Francisco Little Falitol'lal.Adm!nlqrators: Li Ning, Sh[ Bosen grams in the past two decades. Senior ComuRant: Shao Hahning The emergence of China as a rising sports star has come a long OldnkntEdltm~. Yae Bin World Editm-:D~ng Zhimo way. Until the first half of the 20th century, at a time when the NaU~mEdltme: Tang Qinghug cotmtry was plunged into sheer destitution, s(~al upheavals and Bustmm Editon: Ye Shujtm, Lan Xinzlgm foreign invasion, spoas activitieswere confined only to a privileged Odtu~ gdUm-:Zsn Jifang Editorial Censultants: John Butch.. Mieha~ Standae~ few, while the majority of Chinese led a miserable life. It was not Ka~k i~Jslma, Roseanne C.-m-ht until the founding of the People's Republic in 1949 that sporting Staff ltel~rte~: Tang YmmkeJ,F~g Jieahua. activities were embraced by the ordinary people. And along with Din8 Y'mg, Ni Yanshuo. Diug Wenlei. Wang Jun,. Yml Wet, the gradual improvement of the people's livelihood, due attention Tan Wei, Li Li, Lie Yu, Liu Yunlam. was paid to bettering their physical fimess and enriching their ¢xd- Yh pumin,j~ Xtua~ ~ Xi=q~ tural life. In the spirit of uplifting the health standards of all citi- l-lnYee. Yuan Yuan F~ gtUter,Wang Xims zens, not only have relevant guidelines and arrangements been Photographer= 7mngXiaoylng,Wel Y~o made to encourage active participation in mass sports and fitness Art: Li Shigoag schemes, but many state-owned sports facilities have been opened ~: Qkx Wenli to the public, either for free or with a nominal charge. Tens of thou- Onane Edlt0r:. Li 23mtzho, sands of sports societies or organizations have sprung up across rite Adverth:h,~ ~ Dai Xiaohea country, providing technical guidance to amateurs, promoting dif- Dl~trnmtrvnl)lreetor~ WangWelwra. r~m Cha.~ ferent kinds of sports, and organizing contests at the grassroots Hmmmtan~ Z]~tSl~Xiaoli level. la~ Cmperettom paa sh=msqin Le~t Ce.mel.-Y.e Che~ Meanwhile, China also has exhibited growing prowess in sports Nol~h Amed~ iln/¢ml competitions, with its remarkable performance on global sports are- Chiet: Wa.g Y~juan has during the preceding decades. Since rejoiningthe International Rm~(t': Che. Wen Olympic Committee (IOC) in 1979, what was once perceived to be Td/Fu= 1-201-792-0334 E-nm~ [email protected] "an inferior race" by Western nations, has, thanks to state-spon- Geneml Edltor~ ~ sored sports development strategies, captured some 2,000 champi- Tel-.86-10-68996252 onship rifles in major sporting international events, and grabbed a Fu: 86-10-68326628 ~us~ r~nu,u total of 286 medals, including 112 gold, 96 silver and 78 bronze, in Tel: 86.10.68996259 the six summer Olympic Games the country has pacdcipated in. Ad This has put China on par with some of the world's sports giants, Fax: 86-I0-68329398 such as the United States, Russia and Germany. l~mmall: ad@blm,iew.eom.=n Chinas ongoing internationalsporting achievements have [~uuaou inspired local citizens and further stimulated their enthusiasm in Tel: 86-10-6831~07 F~B: 86-10.68328738 sports activities, Sports news claims one of the largest national audi- E,.maih cimtflafi~a@~review.~ ences and is always a favorite topic of discussion, while fimess exer- Pub~h~ everyThunday.by cises have become fashionable for the young and old alike, because BE~J)NO ~, 24 B~ I,a. Beljing 100037. China. practicing sports is.conceived to be a route to a healthierlifestyle. As Overseas Dlm.lbetmn a',/na lnten~atlmml Book Trading the BeijingOlympics draws closer, more and more people have Corporation (Guoji Shudian), P. O. BOX 399, become sports-conscious and expectant of their athletes' good perfor- Beijing 1(X)044, China. Tel: 86-10-.68413849 Fax: 86-I0q584(2166 E-maih Despite the impressive showings in global sports competitions, there are differing views on what is the most approtaSate strategy to ~.~e~ o~-t~- ~- ~ ~.~ ~l'I~r~: an-n China into a t~al spore power. The main dispute lies in the dis- 17/H. Paramotmt Bkls, 12 I~ Yip St, Chal Wan. HK proportionate allocation of resources for.the state sports dev¢lopmem. 852-28046~7Fay 852-280464O9 While an astronomical figure has been used to train world-class champions, gov~Jnent ~g on mass sports activities b-'UBSCP.IPI"ION~ (I Year) Amtmlla...... AUD 1,8.80 ~m~Jainslargely inadequate and can barely meet the growing demand New Zealtod ...... NZD 144.00 of the masses. The best approach secms to be a substantial Ixldget L,'K ...... GBP 53.~ USA...... :...... : ...... u~ 85.3O on public sports facilities,equipmeat, and trainingprog3"atm, Om~t~ ...... CM3 t~.~ so that the fitness levels of thv whole nation can be raised. • 1"~ imblkat~ Iresjetned BIJYtt~ Media ~ notwerk in ~ar.rated hotels. CmUaettelephem number=O10.59254944 t..lavea cm',n~, c~int ~"question? Be~,~ ~wedmmes F~ k~t~u:k Prlnted In Chim bt E-mallow ~ teamat ¢e,,daet@l~m,iew.~m.(;n ~ writeto us at BeijlngReview, c&c ac~rr r,pJ~mNo.CO. 0B~E,~) L~. ,Z4eatmmumg l.u,Beqing te003L Chh~. i..~e~s may be ~ ~ Je~h orcmlent

2 BELLING REVIEW NOVEMBER 29, 2007 Rice Scientist "We now have $1.4 trillion Predicts Record in foreign exchange reserves, and I tell my foreign friends Yield I have never been under more Though the survival pressure." '~I~' ~,• _.~ .1." _~ of our world should not Chinese Premier Wen Jiabao, describing . be linked to the efforts China's huge foreign exchange reserves as a • of a few elite, Yuan symbol of both strength and huge responsibili- ' ' Longping is definitely ty when he delivered a speech at the National someone who has made University of Singapore on November 19 a bigger contribution. Known as "the father of "Anthropogenic warming hybrid rice" the Chinese agronomist has and sea level rise would ,seen the grain species continue for centuries due to be developed grown in the timescales associated as much as 50 percent of China's total rice with climate processes and fields, with an annual feedbacks, even if greenhouse yield enough to feed 60 gas concentrations were to million people. At a forum on be stabilized:' : November 18, Yuan Intergovernmental Panel on Climate Change, revealed that his three- in its report released on November t7 stage super hybrid rice development pmbmam is close to maximum output, which, in 2010, will drive the rice harvest permu (a Chine~ measurement "This work represents a equivalent to 1/15 hectare) up to 900 kg. This figure climl'-e.d to 700 kg in 20fl0 tremendous scientific and 800 kg in 20(14 respectively. More importantly, Yuan .,:,aid that the potential yield of super hybrid rice is as high at 1,500 kg per mu. milestone--the biological Yuan, 77, began research on breeding high-yield hybrid rice in 1964, and, in equivalent of the Wright 1973, he discovered the genetic basis of heterosis in rice, a phenomentm in Brothers' first airplane." which the progeny of two distinctly different parents grow f.,,ster, yield more and resist bettcr than either parent. On this basis, Yuan and his team soon produced Dr. Robert Lanza, who owns a company Nan You No.2, a commercial variety with yields 20 percent higher than those of engaged in the research of stem cell cloning, previous species, and released it in 1974. The new crop has greatly improved after scientists in the United States Chlna's fo(x.t availability. and Japan created the equivalent of embryonic Yuan's other achievements include developing a new technique for increas- stem cells from ordinary skin cells, a break- ing hybrid seed yields through resuiction of self-pollination, facilitating the through that could someday produce new establishment of the hybrid rice seed production industry in China and develop- treatments for disease without the ing new strategies to further improve hybrid rice. He has also spread his tech- explosive moral questions of embryo cloning niques for hybrid rice throughout Asia and to Africa and the Americas. and trained thousands of ~ientists and researchers from over 25 countries. "They get our oil and give us a In 2('KX). Yuan was awarded the inaugural State Supreme Science and worthless piece of paper." Technology Award of China. On his long list of honors there are also the 2001 Iranian President Mahmoud Ahmadinejad, Magsaysay Award, the UN FAO Medal of Honor for Food Security. the 2004 World F(xx:l Prize and the 2(IO4 Wolf Prize in Agriculture. blaming U.S. President George W. Bush's policies for the decline of the dollar and its negative effect on other countries, when he ~ Drofessor Yuan Longping's pioneering addressed the media after the close of the summit of the Organization of Oil Exporting II research has helped transform China from Countries on November 18 food deficiency to food security within three decades. His accomplishments and clear vision "Cooking this data would be helped create a more abundant food supply and, almost impossible:' Dr. Paul De Lay, Unaids's director of through food security, a more stable world." monitoring and policy, replying to the idea that The UN Food and Agriculture Organization earlier estimates of people infected with HIV were deliberately inflated. After releasing new i I; ~'irst we must have enough food, then comes figures on November 21 showing that the global AIDS epidemic is smaller than it /eating well." previously reported, the AIDS*fighting agency Yuan Longping, talking about his firm belief in denied that it had inflated estimates for years the importance of food security for developing countries in an alarmist effort to raise funds

BEIJING REVIEW NOVEMBER 29, 2007 3 WEEKLY WATCH

OPINION gartens, something that comes as a huge relief to parents both psy- No More Fare Hikes Please chologically and financially. It's still months before the 2008 Spring Festival, but a recent Parents are aware enough to know that extra curricular classe~s government report forecast that due to the rising prices of fuel, it's am in most cases a way for kindergartens to make more money, impossible to keep wain ticket prices at the ,same level as 2(~Y'/. but in order that their children will not be left behind in the com- It's true that railway operators are faced with higher operation petitive future environment, they have no option but to send their costs and rising fares am a future trend. But to what extent should children to sports, dancing, painting, piano and a host of other the fare spike keep pace with the rising oil prices? If the railway 'additional cla.sses. To stop bilingual classes is a welcome move and industry operates in accordance with the market rule, it's accept- more of these "'other" programs should be cancelled as well. A able to keep the ticket prices at the level of operation costs. The problem that arises as a consequence, however, is that once such key to this, however, is that railways, as well as aviation, in China classes am eliminated, children will have almost nothing to learn, am state-owned monopoly businesses and thus they need to shoul- a~ the entire kindergarten system is now operated in the form of der some social responsibilities instead of focusing on profit mar- extra curricular programs---so that operators can charge more. gins. To teach children such skills as foreign languages and painting The year 2007 has already seen too many price hikes. As the should actually be part of the regular tuition, and it is unacceptable public suffers under the burden of a host of price inc~, it's t'or kindergartens to separate these from the required curriculum necessary for transl~rt sectors to try to curb fare increases st) that and selt as special commodities. " travel during the Spring Festival. which celebrates family reunion, Workers" Daily can be easier for the masses. Henan Business Treat the Disease Not the Symptom After a big fire killed 14 people in a foot massage center in Kindergarten Corruption Must Stop Chengde City, north China's Hebei Province, on November 14, the Recently, the Education Bureau of Qingdao, east China's authorities swiftly launched a sweeping inspection into local enter- Shandong Province, issued a ban on bilingual teaching using the tainment venues and Interact cafes for hidden danger points, with a mother tongue and a .second language (usually English) in kinder- view to prevent similar future incidents. These measures are necessary, hut history shows that safety campaigns seldom really help to prevent the next disaster, because almost all consequent measures are temporary in nature and are unable to cope with similar disasters should they occur. A typical example took place after a blaze claimed the lives of dozens of firefighters in Hunan Province's Hengyang City in November 2(X')4, which was also followed by a series of rectification cam- paigns, yet when four years later in 2(~-/the city was hit by anoth- er fire, the result was again serious human and property losses. Therefore, it's important to make safety inspections a stringent routine, so that any bidden trouble can be found out ahead of time. For the sake of life and property, the government needs to get tough on this. Sanqin Metropolis Daily P Avoid Tragedies by Planning After a deadly stampede in a Carrefour outlet in Chongqing earlier this November, the local government of Hangzhou, Zhejiang Province, announced a ban on sales promotion of daily necessities in supermarkets and marketplaces, to ensure customers" ,safety. Soaring prices are increasing the economic burden on ordinary people. There is nothing wrong with markets holding regular "sales promotions of everyday goods and currently no law prohibits this practice. It's true that an oil promotion triggered the Carrefour stampede in Chongqing, but this does not necessarily mean future promo- tions will inevitably lead to disasters provided if they are well planned. Thus, the sales promotion ban can only make the public's life more difficult. To effectively tackle the sales promotion issue, instead of imposing a ban on daily necessities, relevant departments should impose .adequate .safety measures on big retailers. More important- ly, retailers should not offer reduced prices for limited periods, as it is the amount and time restrictions that eventually led to the CLASS CON: Kindergartens charge for special skills Carrefotn- stampede. Only by carefully dealing with these things classes, which should actually be covered can we expect to see safe promotion activities. in routine education China Youth Daily

4 BEIJING REVIEW NOVEMBER 29, 2007 WEEKLY WATCH

Cyclonic Fury A Bangladeshi woman and her baby stare helplessly at the piles of debris left after the worst cyclone in 130 years hit her village in Khulna District, some 320 km south from the capital Dhaka, on November 15. The official death toll reached 3,447 as of November 20, while about 3 million displaced survivors were in desperate need of tents, food, drinking water and medical supplies. Financial aid by the international community is being offered, with the Chinese Government donating $1 million worth of emer- gency assistance to the country. In a message sent to his Bangladeshi counterpart lajuddin Ahmed on November 18, Chinese President Hu Jintao offered the nation's sympathies to those affected.

||EIJINi; REVIEW NOVEMBER 29, 2007 WEEKLY WATCH

~LOCIETY Li was involved in a case Helping Migrant where the former chief warden Population of Chuanxi Prison, Wu Zhang Xinfeng, Vice Bangzhi, took more than 2 Minister of Public Security, million yuan ($270.000) from said in Beijing that his ministry a prisoner in return for secretly will soon issue a circular letting him out of confinement throughout China to improve a number of times. access to better housing, med- According to Chinese ical services and education for laws, procuratomtes set up the children of the country's offices in prisons and centers colossal migrant population. of reeducation. Prosecutors China has 140 million farmers corrected about I 1,(K)0 who have left their tba-mland to improper cases over the past seek employment in cities. five years and detected 26,000 which account for about I0 cases of illegal detention, percent of China's total popu- release and punishment. lation. Smooth Lunar Exploration According to the released China's first lunar orbiter draft document, local govern- Chang 'e. 1, which is now cir- ments are required to provide cling the moon at a stable alti- education for children of tude of 200 kin, has opened its DISTRICT LEADERS FOR HONG KONG Hong Kong Special migrant workers; build dorms facilities to transmit data back Admlnlatrative Region Chief Executive Donald Tsang (left) for migrant workers to improve to the Earth, said Pei Zhaoyu, opens a ballot box at a polling station in Hong Kong on their living conditions; raise spokesman for the China November 18. More than 1.14 million registered voters voted their social insuraJlce coverage; National Space Administration that day to choose leaders for 405 constituencJes and provide them with the on November 20. moon in late November. Regional Meteorological same free services available to He added that the orbiter is Bureau. city residents, such as infec- in good condition and facilities Global Warming Toll Song cited two major dis- tious disease prevention and on board will be tested over Meteorological experts in asters in 2000, which caused treawnent~ children's vaccina- the next few days. southwest China's Tibet total losses of 1.4 billion yuan tions and maternity care. The satellite has undergone Autonomous Region have ($189 million), In April 2000, Wardens Turned Prisoners a number of tests since it exp~ssed concern that global a thawed snowcap triggered an China has punished 3,149 entered the moon's orbit on warming is threatening the •almost unprecedented large- corrupt wardens over the past November 7. On November ecology of the region. scale landslide in southeast five years, according to the 19, it adjusted its position to 'q'he warming climate has Tibet. More than 300 million Supreme People's point its probing facilities caused more meteorological cubic meters of debris, piling Procuratorate, toward the moon, positioned disasters than ever in Tibet. up to 100 meters high, blocked A number of senior war- the probe's solar panel toward Problems like receding snow a river and besieged more than dens were caught taking the sun and the directional lines, shrinking glaciers, drying 4,000 people. The other disas- bribes, including Li Wenhua, antenna toward the Earth to grasslands and desert expan- ter was a once-a-century flo~, the former director of the allow data to be transmitted sion are increasingly threaten- which affected more than Bureau of Prison back to the F_anh. ing the natural eco-system in 60,(XX) people and inundated Administration in southwest Chang'e-I is expected to the region;' said Song thousands of hectares of crop- China's Sichuan Province. relay its first picture of the Shanyun, Director of the Tibet land.

ABDUCTED I I ~ FIRST BABIES , I i ~ After the RESCUED Police '1''~ I - ; T ~ first major in central Henan Province look In on four baby girls rescued from November traffickers on a - l 4' 19, street bus from southern j cleaners in Guangdong northeastern Province to Jilln City central Shanxl shovel snow Province. T .'~ :'"~:-""":-~:-:~-~:~'~':-J~-"::~#-~ to guarantee The four children ..... smooth city are being ..... - ,.- ::,_: traffic temporarily taken ~. ~:: . care of by a local =. • =4~'-_~. ~ ~- ---*-~-'~,=_,~ orphanage

6 BELLING REVIEW NOVEMBER 29, 2007 ECONOMY Province. But he also said But Zhang stressed that macroeconomie controls and Gold Rush Overseas domestic supply of grain foreign investors were restrict- more sciendfic mid- and long- The Bank of China (BOC) would fall short of denmnd in ed from setting up businesses term economic planning, a opened a new outlet in London the long term, without clarify- for export only in China. and notice on the Central on November 21, on the heels ing how long the period would banned from creating polluting Government's website said. of the launch of a lending cen- be. projects and those that rely on The census aims to gather ter covering the European mar- "As the rural population consuming large amounts of information on layouts and ket in the city. moves to urban areas, fodder energy and resources. energy consumption of all grain and oil-bearing crops indusuial and service-sector With registered capital of China's Top Ten Vehicles such as soybeans are already in entities in 2008. 200 million pounds, the new Beijing-based Research short supply:' said Fang. Statisticians will also col- oudet will target middle-class Institute of Machinery Industry To ensure adequate supply lect data on ownership, finan- and high-end locals as well as Economics & Management and improve the quality of cial results, production capaci- Chinese people living in announced its top ten most farm produce, China wilt boost ty, staff and research and London. popular China-designed vehi- large-scale production rather development activities, the The second biggest cles for 2007 in Beijing recent- notice stated. Chinese lender's expansion than production by scattered, ly. Chang'an Benben, was part of the ongoing "go- small farms during the 2006- Wuling Sunshine out" move of major Chinese 2010 period. minibus, Chery A5, banks with abundant capital Open to More Foreign Geely Vision, Brilliance raised from share offerings. Investment Splendor, FAW Bestum, Within merely one year, the China will gradually scrap Roewe 750, Jiangling BOC launched a suing of new restrictions on the destination, Landwind, Dongfeng branches and other outlets in stock ownership and business Future and Delong of Indonesia, Viet Nam, Canada, scope of foreign inveslanent in Shaanxi Auto Group Brazil and Russia. the service sector, said Zhang were honored. As China opens its finan- Man, Vice Minister of the Liu Baowen, Vice cial market to overseas National Development and Director of the institute. investors, locai banks face Reform Commission at a said standards in select- heated domestic competition multinationalCEO roundtable ing the winning models from foreign rivals. Excess liq- meeting in Beijing. But, he included branding value, uidity and a tightening mone- added, existing restrictions on overall quality, safety, tary policy in China have also foreign investment in key environment-friendliness, pushed them m seek new prof- industries concerning China's comfort, value and after~ it sources. national security and its citi- sales service. "? Grain Self-Sufficient zens" livelihood would remain New Economic China will remain 95 per- unchanged. Census cent self-sufficient in grain Zhang said foreign invest- China will conduct production in the future by ment would be encouraged to its second national eco. HERBAL WEALTH The development expanding both output and enter hi-tech equipment and nomic census in 2008 to of the traditional Chinese medicine re.serves, said Fang Yam a new material manufacturing gather accurate data for industry in southwestern Guizhou senior official with the Province, from total sales of 3.7 and logistics businesses. He scientific policy forma- billion yuan ($500 million) in 2001 National Development and added the central and western tion, the State Council to 9.9 billion yuan ($1.3 billion) in Reform Commission, at a con- hinterlands would be open to announced. 2006, has brought money-making ference in Guangzhou, capital foreign investment with more The results will facil- opportunities to farmers in of south China's Guangdong incentives. Rate more effective mountainous areas

BLACK DAY ~~~i MY PUPPETS, FOR WHITE g MY SHOW ANTS An expert Primary and on white ants middle school gives guidance -~,~" students of to farmers living ~ Huanxian near Chaowu .... ~ ~i.' .t~.::~~. ~:~= Countyof Lake, in central Gansu Province Anhui Province, take a handcraft on ways to class on how to destroy white make puppets ant nests. White for leather ants are a shadow shows, major danger to and give the safety of the performances lake dam with their own props

BEIJING REVIEW NOVEMBER29, 2007 7 WEEKLY WATCH

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GAS COOPERATION Greek Prime Minister Kostas Karamanlis (right), his Turkish counterpart Recep Tayytp Erdogan (center) and Azerbaijan's President Ilham Allyev attend the Inauguration ceremony of the Greece-Turkey natural gas pipeline in Ipsala, November 18. The Greece-Turkey natural gas pipeline project, slated for completion in 2011, will eventually extend to Italy via the construction of a Greece-italy natural gas pipeline, and is a supplement to the Greek-Turkish pipeline, transporting 8 billion cubic meters of natural gas per year

~. CLOSER ALLIES U.S. President George W. Bush (right) shakes hands with Japanese Prime Minister Yasuo Fukuda after a joint statement in Washington, i D.C. on November 16. The two leaders announced during the meeting that they would stick to the U.S.-Japan alliance

PRESSURE ON SARKOZY Thousands demonstrate on November 20 in Paris, as part of a nationwide day of protest of French civil servants and students, I joining a week-long stoppage by transport workers. State employees, including teachers, postal workers and air traffic controllers, launched their strike in support of demands for pay increases and an end to job cuts

SCORPION KING The University of Bristol released a photo on November 20 showing a giant sea scorpion. British and German researchers discovered the giant fossilized claw of an ancient sea scorpion that, in its heyday hundreds of millions of years ago, would have been some 2.5 meters long. The find, in a quarry near the western German border town of Pruem, is the biggest specimen of an arthropod ever discovered

8 IIEI.JINC RF:.%"IEVI'NO%'t,':MIIER 29. 2007 OIL BARONS Iranian President Mahmoud Ahmadinejad, his Venezuelan counterpart Hugo Chavez and Saudt King Abdullah bin Abdul Aztz aI-Saud wave as they stand next to Iraqi President Jala[ Talabani prior to the start of the OPEC summit in Riyadh, November 17. OPEC heads of state met in FOOT-AND-MOUTH SCARE Culled sheep are driven Riyadh for a rare summit, with the organization divided over the falling U.S. away after Cypriot veterinary authorities started a dollar and attempts to give a political impetus to the oil-exporting cartel slaughter at the largest farm at the center of the island's foot-and-mouth scare, in the southern Larnaca district, November 14. The latest cull is part of an effort to contain the island's first outbreak of foot-and-mouth disease in more than 40 years

FINGERPRINTS PLEASE Foreign residents and their supporters protest in front of the Justice Ministry in Tokyo, on November 20, against a new fingerprinting and photographing program for foreigners entering Japan. Japan modeled the tighter immigration controls on the controversial U.S.-Visit system, which keeps biometric data of foreign visitors CALLING IT QUITS? Pakistani President Pervez Musharraf (left) administers the oath to Mohammadmian Soomro as caretaker Prime Minister during a ceremony at the Presidential House in Islamabad on November 16. Musharraf said he will quit as army chief before December 1. He also suggested holding the country's parliamentary elections on January 8, 2008

~1MINE TRAGEDY Ukrainian President Viktor Yushchenko talks with miners at the Zasyadko coal mine in the eastern Ukrainian city of Donetsk on November 19, A gas explosion ripped through the notoriously dangerous Ukrainian coal mine the previous day killing at least 80 miners and leaving 20 missing

BEIJING REVIEW NOVEMBER 29, 2007 9 Building a Harmonious Partnership International affairs, trade, the environment and energy will top the agenda at the Cbina-EU Summit

By YAN WE! by the 1.23 million visas that EU member China and the EU. He said trade and the new states issued to Chinese visitors last year. China-EU Partnership and Cooperation espite lingering concerns over Portuguese Prime Minister Jose Agreement (PCA) would be the most impor- issues ranging from trade imbal- Socrates. whose country currently holds the tant topics. ;~rlces to human rights, leaders in rotating presidency of the EU, President of The PCA is a new framework that will Cltina and Europe are optimistic the European Commission Jose Manuel govern China-EU relations over the next and confident that they will solidify Barroso, other senior EU officials and top decades. NegotiatJons on the PCA, which Dtheir tics at their annual summit this month Chine,~ leaders will attend this year's sum- began early this year, have progressed in Beijing. mit on November 28, the 10th meeting steadily, and there could be an "early har- 'q'he partnership between China and since the summit was launched in 1998. Europe has developed harmoniously and ve,sf" at the summit, Abou said. Experts are keeping a close watch on Chinese and European leaders also will effectively:' said Ambassador Serge Abou, topics such as current international affairs. head of the delegation of the European talk about implementingthe Kyoto Protocol trade, the environment and energy, believ- and finding a successor for it in preparation Commission to China at a recent press con- ing the summit will help enhance coordina- ference. "'We can be proud of what we have for next month's global-warming confer- tion between China and the EU on these ence in Bali, Indonesia, Abou said. achieved:' highly charged issues. The EU is China's largest trading part- At the annual meeting of the UN ner, and China is the EU's largest supplier. All-encompassing discussions Framework Convention on Climate The EU is also China's largest partner in the Liu Jiansheng, an associate research fel- Change, government ministers will discuss field of science and technology. About low who specializes in ELI studies at the proposals on mitigating global warming, 120,000 Chinese students study at China Institute of Intemational Studies, said further developing the global carbon market European universities. Cooperation in the purpose of the summit is to cement the and financing responses to climate change tourism is rapidly expanding, as evidenced political and economic relations between after the Kyoto Protocol expires in 2012.

l0 BEUING REVIEW NOVEMBER 29, 2007 • : -:..~: ;,

"Energy-saving, environmental protec- tion and developing alternative sources of energy in China are sectors with high growth potential," Abou said. "Protecting the environment and saving energy are not in contradiction with high growth. They could lead to very l~st growth and .serve the general interests of China and the Chinese people:' Regarding the trade imbalance, Abou said there are no "philosophical disagree- ments" between China and the EU on this issue, because China is convinced that a huge wade surplus is not healthy for its own interests. But the problem will not be solved easily or immediately, he said. The summit is expected to give it an impetus at the lead- ership level, he added. The wade volume between China and the EU is projected to exceed $300 billion this year, with European countries' wade deficit dramatically on the rise, Liu said. It is no wonder that trade frictions have been increasingly frequent in recent years, he said. Feng Zhongping, Director of the Institute of European Studies at the China Institutes of Contemporary International Relations, said current China-EU relations are characterized by "new developments" "If we look at the needs of China in the next 10 years and "new challenges:" While progress has and the direction China is going in, we consider we been made in the fields of trade, strategic dialogue and cultural exchange, challenges have a lot [to offer] in cooperating with the country;' are emerging. One of the most dif- --Ambassador Serge Abou, head of the delegation ficult challenges is that the China- of the European Commission to China EU economic and trade relations are becoming both complemen- its cooperation with China to improve the companies are trying to put them into prac- tary and competitive, with the lat- s~ety of Chinese products in foreign mar- rice, he said. ter aspect gaining prominence. kets and the Chinese market as well, he "If we look at the needs of China in the Given its huge trade deficit, the said. next 10 years and the direction China is EU is likely to pressure China to The two sides also will sign some spe- going in, we consider we have a lot [to appreciate its currency even more, cific agreements, Abou said. The European offer] in cooperating with the country,' he ' he said. Investment Bank will give a 500-million- said. - Along with the China-EU curt loan to help China tackle climate Apart from probing each other's strate- : ~ Summit, there will be a business change. China and the EU will sign an gic need.g, leaders are set to discuss the summit that focuses on diaiogue agreement on training management profes- international political situation at the sum- . between Chinese and European sionals at the Shanghai-based China Europe mit. Their topics could include antitermr- companies. Intellectual property International Business School. Also, the ism, Africa, Myanmar, North Korea and the rights and product safety will be EU's proposal to start a Sino-EU clean- Middle East, Abou told reporters. high on its agenda. energy center in China may get a favorable Both Liu and Feng singled out China's "We cannot compromise the response. policy toward Africa as a major point of safety of our consumers, but we contention, As it is impo~ible to stop do not like to use this to justify the More common ground China's involvement in Africa. the EU protectionist stand against China;' The EU has developed a regional policy should enhance policy consultation with Abou said. The EU will increase to balance the rich and poor areas of China and explore ways of c(x~pemtion Europe, as well as a social policy to deliver through dialogue. Feng .said. HI-TECH PARTNERS.' Wu social security benefits to Europeans for Experts also pointed out that new Zhongze (third from left), health care, unemployment and retirement European leaders are adjusting Europe's China's Vice Minister of Science pensions, Abou said. It has technologies. foreign policy. While trying to mend their and Technology, attends standards and legislation to protect the envi- relations with the United States by increas- the closing ceremony of the ronment and save energy. ing bilateral strategic coordination, some year-long ChinaoEU Science and Technology Year in Lisbon on EU states am among the most energy- European countries have taken steps on November 9. China and Europe efficient nations in the world. Also, the EU China's human righm issue, exerting mount- enjoy fruitful cooperation In the has set objectives for tackling climate ing pressure on the country's internal fields of science and technology change, and European governments and affairs, Liu said. ,,

BEIJING REVIEW NOVEMBER 29. 2007 It ! '7'r r !'T"] .

key points in texttxx>ks, European professors use various interactive approaches to enhance the capacity of the students in such Going European fields as case studies, brainstorming sessions •and prec~ntations,he .said. Lu believes that the program will have Chinese civil servants look to the West far-reaching implications for China's gov- ernment reform and the improvement of for public administration expertise Chinese civil servants' capabilities and has benefited the country on both conceptual By YAN WEI International Exchanges and Cooperation in and technical levels. Given the Chinese China's Ministry of Personnel, and the pro- Government's long-term focus on econom- t wasn't just the demanding in-class gram chalked up another success. ic development and investment utilization, questions. Giving challenging presenta- Harry List, the program's European Co= the program's first senior forum created a tions and taking nerve-wracking oral director, was also optimistic about the sensation when it put forth the forward- exams were also the most difficult activ- achievements he and his colleagues made looking nodon of"social services" in 2004. ities for Jiang Wei, a Chinese civil set- over the past four years. "We have fully met 'q'oday, however, the concept is gaining IvanE, who spent a year studying for a the objectives in our work plan;" he said. currency as the China emphasizes public Master's degree in European politics and "We have even done more?' health, education, housing, urban develop- policy at the Catholic University of Leuven To ~, some 3,000 people have been ment and crisis management" Lu said. in Belgium. involved in various activities in the prugram in According to Du Zheng'ai, a researcher at The 27-year-old was one of thousands of China. Thirty-seven short-term study visits to the China National School of Administration participants in the China-Europe Public Europe have been organized, while 25 schol- (CNSA), trainingcivil .servants internationally AdministrationF'rogram that smt't~ at the end ars and government officials have completed is an emergingglobal uend. of 2(,03. The program provides assistance to long-term study visits ranging from one to six Along with economic globalizadon, Du China's economic and social reform activities, months. Four young civil servants, including said that many problems have transcended increases understanding between China and Jiang, took part in yearlong Master's degree nadonal borders and cannot be addressed by the EL1 and exc"hanges public administration prograrrLs at European institutions. a single country alone. "Receiving waining knowledge between the two sides. Four senior public administration forums in foreign countries can help broaden the Although Jiang did not have an easy have been held in Beijing, where European vision of civil servants and make them more time at the university, he believes the expe- experts shared their knowledge and experi- capable in the era of globalizadon," he said. rience was rewarding. ence with their Chinese counterparts. This The CNSA, China's national training "The program gave me an opportunity year's forum, with the theme "Public Sector center for mid-level and senior civil ser- to learn the theories of public administration Reform and the Improvement of vants, senior executives of major state- systematically and understand the political Government Performance,' drew more than owned enterprises and policy research fel- systems of European countries" Jiang said 400 participants from China and Europe on lows, cooperates with more than 40 coun- one recent morning as he accompanied a November t3-15. tries, including the United States, Britain, foreign delegation on a bus trip to the Great Lu Linxiang, the program's Chinese Co- Canada, Germany and Australia. It offers a Wall. "More importantly, it helped me director, said them is a "fundamental differ- wide range of internadonai projects to develop crucial skills for analyzing prob- ence'" between European and Chinese teach- trainees. For example, it has signed collabo- lems to find solutions?' ing methods used to wain civil servants. ration agreemenm with the Kennedy School After Jiang received his degree, he Unliketheir Chinese counterparts who usual- of Government at Harvard University, the returned to his job at the Department of ly spend most of their class time explaining Wharton School at the University of

with China in early 2009 after the current program con- A Fruitful Program cludes at the end of this year, List said. The China-Europe Public Administration Program is The program has also introduced European public admin- funded mainly by the European Commission and co- istration techniques to China. According to Lu Unxiang, the financed by the Chinese Government. A consortium of program's Chinese co-director, the country is adapting the seven partners led by the European Institute of Public European assessment system, under which the performance Administration in Maastricht, the Netherlands, implements of different government agencies can be compared on a the program on the European side. The program's major quantitative basis. As in business organizations, the efficiency Chinese beneficiaries are government-affiliated schools of of government agencies can be assessed by =by costs," he administration at central and provincial levels, the Ministry of said. Personnel and the State Commission Office for Public The EU funds assistance programs in many countries in Sector Reform. Eastern Europe, Africa and Asia. Compared with programs The China-Europe Public Administration Program also in Africa, which are typically "development aid," programs in offers assistance in developing training methodology and China are more within the framework of "cooperation," said management. It has piloted methods for selecting and Harry List, the program's European Co-director. assessing civil servants and measuring the performance of "if you have close contacts and exchange your experi- public administrators for a number of local government ences and knowledge on different levels, you can achieve a agencies across China. Considering the satisfying achieve- greater level of understanding and cooperation in the ments, the EU has decided to launch another joint project future," List said.

12 BEIJING REVIEW NOVEMBER 29, 2007 Pennsylvania and the University of Georgia in the United States. The school has also established cooper- Meeting Singapore ative ties with British organizations and uni- versifies. Among them, Britain's Overseas Chinese Premier Wen Jiabao Development Administration provides attended a series of multilateral funds for academic seminars, official visits and bilateral meetings on and book donations, with the University of November 18-22 in Singapore and Birmingham serving as the organizer. The reached a wide-ranging consensus CNSA and the United Kingdom Civil with other East and Southeast Service College have exchanged official Asian leaders on enhancing top-level visits. regional cooperation. In the past decade, the CNSA has sent During his official visit to more 3.(,~) students overseas to receive Singapore, the first by a Chinese training in public administration or as part premier in eight years, Wen held of exchange programs such as the China- talks with his counterpart Lee Hsien Europe Public Administration Program. It Loong, President S.R. Nathan, also has trained more than 600 foreign civil Senior Minister Goh Chok Tong and servants mainly from developing countries. Minister Mentor Lee Kuan Yew. The China-Europe Public Administra- The two prime ministers tion Program has benefited other countries, agreed to strengthen the role of especially some East European ones. At the the joint cooperation commission program's annual forums, officials and schol- at the vice-prime minister's level ars from countries such as Latvia" Slovenia and other consultative mecha- and Bulgaria, always find they have much in nisms, take bilateral economic and common with their Chinese colleagues. trade cooperation to a higher level, "Like China, these countries are in tran- push forward negotiations on sition from a planned economy to a market- establishing a free trade area and oriented one and are therefore interested in LONG-TERM COMMITMENT: Chinese establish a dialogue mechanism China's experience in this regard," Lu said. Premier Wen Jiabao gave prominence on defense policy. Following the "'Developed west European countries can to Chlna'e opening-up strategy when he delivered a speech at the National talks, they signed a framework get some insight fi'om China's approach to University of Singapore on November 19 agreement on the construction of development as they work together with an eco-city in Tianjin and officially China on the program as well:' launched the Singapore-China Foundation, an organization that will advance the Being a diversified bloc, the EU has a two countries' cooperation in education and human resource development. special advantage in cooperating with In a speech delivered at the National University of Singapore, Wen said that China in the field of public administration, China's opening up is comprehensive in nature. 'We are open not only to devel- List said. He explained that China finds the oped countries, but also to developing countries. We are open not only in economy, EU interesting because it is like "a Chinese but also in fields such as science, technology, education and culture," he added. meal" in which there are dishes of different According to Wen, China's opening-up policy is based on mutual benefit, flavors to choose from. and China is committed to conducting mutually beneficial cooperation on an DifferentEuropean countries have differ- equal basis with all other countries in the world. ent social and historical ,backgrounds and The premier also attended the 11th ASEAN (Association of Southeast Asian their public "administration systems develop Nations) plus Three (China, Japan and the Republic of Korea) Summit, the 1 lth in different ways. According to List, the China-ASEAN Summit and the Third East Asia Summit. China-Europe Public Administration This year marks the 10th anniversary of the ASEAN plus Three mechanism. Program makes sense because it helps China At its summit meeting on November 20, Wen made a five-point proposal on find its own way while taking into account strengthening and deepening cooperation among the 10 ASEAN states and the experiences of other countries instead of China, Japan and the Republic of Korea. copying European or American models. The summit adopted the Second Joint Statement on East Asia Cooperation That's precisely how Jiang felt. The and the ASEAN Plus Three Cooperation Work Plan 2007-17. courses he took in Leuven presented the After the China-ASEAN Summit, Wen and ASEAN leaders attended the various social systems in Europe without signing ceremony of a memorandum of understanding On strengthening China- providing a uniform model. ASEAN cooperation on human and plant health. "We do not want to copy European prac- At the East Asia Summit, Wen elaborated on China' position on climate tices:' Jiang said "'We want to learn what the change and the measures the country has taken and further steps it will take to Europeans have done ,so that we can draw on address climate change. their successes and avoid their failures" At a trilateral meeting, Wen, Japanese Prime Minister Yasuo Fukuda and the Chinese" civil servants have yet to Republic of Korean President Roh Moo Hyun agreed to strengthen their cooper- improve their team spirit and ability to make ation in fields such as trade, finance, currency stabilization, environmental pro- oral presentations, Jiang said. He believes it tection, resource conservation and youth exchanges. They also pledged to is particularly important to offer training to enhance their coordination on regional and international issues and hold dia- young civil servants. logues on foreign policies concerning Africa. "'Overseas training can have a lifelong Wen also held bilateral meetings with leaders of several other countries. • effect on them:" Jiang said. • Source: Xinhua News Agency

BE|JING REVIEW NOVEMBER 29, 2007 13 Europe's Sweet Talk France, Germany and Britain talk up their ties with the United States but still find they are an ocean apart on international policy

By ZHAO CHEN home is an expression of warmth and Brown noted that the history of the 20th respect. 'q'hat's how I feel about Chancellor Century proved that when Europe and the s of November, exchanges between Merkel:" Bush said. United States kept their distance from each the trans-Atlantic became a hot When she wrapped up her U.S. visit at a other, instability occurred; when they formed topic. The leaders of France. press conference, Merkel called Bush "'dear a partnership, the world became stronger. He Germany and Britain had some George," and thanked him for inviting her said he believed that over the next years, • very warm words for the United and her husband to "a very beautiful part of Europe and the United States would have the AStates, but Ibr some European media, this this planet." She also allowed U.S. techni- best opportunities that they have had in rhetoric was over the top. cians to install video devices in her office in recent eras to make historical progress "We love America" Berlin, so that she could contact the White together on dealing with global issues. On November 6, Nicolas Sarkozy start- House direcdy in the future. The two lead- On the Iran nuclear issue, Brown took a ed his first two-day official visit to the ers will use the communications system to harder stance than his predeces~r by saying United States. Before this trip, the new have regular discussions on issues like [ran, that if Iron continued to disregard the interna- French President spent his summer vacation Afghanistan, climate change and wade. tional community's concern about its urani- in the United States. Sarkozy, who some Although British Prime Minister Gordon um enrichment activities, Britain would prod European media say is possibly the most Brown didn't visit Bush in Crawford, he, too, other countries to stop investing in Iran's oil pro-U.S. French President, addressed the has had warm words for the United States of and natural gas industries as well as in finan- U.S. Congress, visited George late. In his first foreign policy speech on cial areas. According to an Associated Press Washington's mansion at Mount Vernon, November 12, Brown surprised critics by report, observers 'said that before Brown's Virginia* and recalled the Franco-American saying he had *'no truck with anti- speech, they never predicted he would friendship formed during America's War of Americanism:' He reiterated that "America uphold the British-American alliance and say Independence. is still Britain's most important friend on the that it would benefit the whole wodd; they "We love America," Sarkozy said dur- world stage," and that Britain's ties with other had believed Brown would keep his distance ing his state visit, clearly expressing his European countries were ,second to its rela- ~)m the United States. wishes to improve Franco-American ties. "I tions with the United States. "It is good for want to re,conquer America's heart" Britain, for Europe and for the wider world Bush suddenly becomes attractive In his speech to the U.S. Congress, that today France and Germany and the In 2(X')3, the lraq War divided the United Sarkozy said France was willingto strength- European Union are building stronger rela- States and its traditional European allies, en its cooperation with the United States on tionships with America." France and Germany. Former U.S. issues such as anti-terrorism, the tense situa- tions in Afghanistan and karl, and the peace- fill negotiations between Israel and Palestine. He especially stressed that the French army would not leave Afghanistan until the war was over. On the lran issue, he repeated that France would not accept a nuclear weapon- armed nation. He also suggested that some French companies should withdraw their capita] from Iran. U.S. Secretary of State Condoleezza Rice appreciated Sarkozy's hard-line attitudes and hoped that France's stances on these issues would serveas a model for other European countries. Sarkozy was not the only new European leader to visit the United States. Two days after he left, U.S. President George W. Bush welcomed German Chancellor Angels Merkel and took her tbr a ride in his pick~up truck at his ranch in Crawford, Texas. Bush also said in his un~phisticated cowboy way that in Texa~, inviting someone to your HOMELY WELCOME: President George W. Bush (rlght) drives with German Chancellor The author is an assistantresearcher with the Angels Merkel (left) and First Lady Laura Bush (center) to his ranch in Crawford, Institute of European Studies under the Chinese Texas, on November 9. The leaders met there for two days and discussed the wars Academy of Social Sciences in Iran and Afghanistan

14 BEIjING REVIEW NOVEMBER 29, 2007 which will help improve U.S. consciousness about environment protection. In another example, Sarkozy fully displayed his diplo- marie artistry when he visited the United States by requiting that the country take the lead in coping with global warming. In doing .so, he achieved the goal of tying America to environmental protection. An equal relationship? In his speech to the U.S. Congress, Sarkozy called on the United States to not be afraid of a strong EU with an indepen- SARKOZY PLEASES AMERICA: French President Nicolas Sarkozy receives a round of dent defense policy, because NATO cannot applause after a speech to the U.S. Congress on November 7 be everywhere a conflict or crisis occurs. He Secretary of Det~nse Donald Rumsfeld cat- The European Union, especially France, also stres.~ed that France and the United egorized anti-war countries, like France and Germany and Britain, is America's most reli- States were now allies and would be allies Germany, as "old Europe?' In the meantime, able force. After the three big countries forever. Sarkozy's warm rhetoric showed France and Germany publicly opposed the changed leaders, the Bush "administration that France hadn't given up its existing start of the Iraq War, because U.S.-led mili- was eager to win the new leaders' support. stance, but merely changed its strategy to tary actions were without UN authorization. Sarkozy's and Merkel's visits, on some lev- gain practical benefits. Four years later, after several big els. can be considered two of Bush's diplo- Currently, the U.S.-EU relationship is European countries changed leaders, the matic shows. just as Sarkozy characterized it in May, after cold U.S-European relationship started to Europe and the United States depend he won France's presidential election. He warm up again, then returned to normal. deeply on each other for economic reasons c',dled the Americans "friends that can rely There are two explanations for this change. and have common interests and s~ategic on our friendship," and said, "France will The first explanation holds that the new goals, But although France, Germany and always be next to them when they need us" leaders of France and Germany are "right- ies" with a pro-America bent. Their values are similar to Bush's conservative stance, so While America has several strategic goals and they are easier to arrive at an understanding with him. But this view is not convincing. interests in common with European countries like Former French president Jacques Chirac France, Germany and Britain, the latter's ideas himself was also considered a right),, but he still stood at the forefront of the European on many regional and global issues differ from leaders who were anti-Bush. those of the United States The second explanation is that European leaders have not settled on Bush himself, but am priming them.selves for his suece,~sor. Britain assign themselves to the same But, Sarkozy also added, "Friends can think Therefone, their friendly rhetoric is paving "'Western camp:' their ideas on the use of differently:' the way for them to improve U.S.-European military three, global management, climate Indeed, the warm rhetoric cannot cover relations after Bush leaves office. But one and environment, and even their general up the truth: the United States and Europe problem with this view is that no one knows views of the world am quite different. still have many different opinions on world whether a Republican or Democrat will win With the enlargement of the EU, the issues. the presidential election. The other problem curt and U.S. dollar have stood up to each America's attitude is turning tough. It with it is that the "pre-warming" tactic has other as equals. Europeans are spreading warned Iron that if the country could not come too early for the European countries to their ideas and actions on foreign "affairs to prove it did not intend to develop nuclear create its desired effect. the rest of the world, which is the root of the weapons, it would receive a punishment Why then, did Bush suddenly become conflicts between Europe and the United worse than just sanctions. But France and attractive to the three European leaders? The States. Before the lraq War, America's fame Germany worried that if military action was reason was not based on the leadership and force reached the zenith of the country's used instead of diplomatic negotiation, the changes themselves in France, Germany and power. Conservative American political result could be just as disastrous as the lraq Britain, but on changes on the Bush side. commentator Robert Kagan described this War, Britain took a double standard on this Europe hopes to use the timing of America's with a metaphor: Now that America is dri- issue: calling for sanctions against Iran, temporary weakness to influence its policy ving, Europe doesn't count on grabbing the while offering the country 290 million and concept, and the first step to this is to steering wheel. pounds (about $599 million) in loans. warm their relations with the United States. Currendy, America is in a comer and On the Afghanistan issue, although The lraq War has prompted the United urgendy needs allies. The EL1, and in partic- France and Germany said they would stand States to adjust its foreign policy. Rumsfeld's ular, France, Germany and Britain, hopes to by America's side until the end of the war, departure marked the ebbing tide of net-con- seize this opportunity to influence the only the two countries do not want to send more servatism and the return of realism and ratio- superpower in the world with very flexible lax)ops to war-tom Afghanistan. nalism in U.S. foreign policy. Relying more diplomatic tactics. For instance, it awarded a In the meantime, the United States will on international multi-lateral systems, the Nobel Peace Prize to former U.S. Vice not change its policies on climate change, United States is socking progress on various President AI Gore for his outstanding anti-missile defense bases in Eastern international and regional .security issues. achievement on environment protection, Europe or the weak U.S. dollar. •

BEIJING REVIEW NOVEMBER 29. 2007 15 ,;,. ;

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Customers First

Hong Kong has long been famous for its exquisite architecture and effective administration. Its ~~e,,~=~" t= '~ hotels are no exception. Last week, we had a chance to experience the five-star Langham Hotel Hong "~- "!~'---'~ Kong and learn about its design and management concepts, namely its unique characteristics and " "-" .... - 14' people*oriented services, L-..J~_- " Langham Hotel Hong Kong, recognized as a new landmark in the Meng Kok area of Hong Kong. ~:"~"-:.. belongs to Langham Hotels International, a wholly-owned subsidiary of the Hong Kong Great Eagle - . ~. Group, the flagship hotel of which is located in the center of London and has a history of 140 years.

TheEagleLangham••te•H•ngKonghadbeenre•••d•evera•timas,andwa•finai•yacquiredbytheGreat Group. After that, the Great Eagle Group built several other new hotels and based their head- ~~.__.~.11 . quarters in H0ng Kong. The hotel is the embodiment of fashion and modernity, setting it apart from other hotels. When referring to its management, the administrator of the hotel said, "We offer services that bring comfort to our customers." Indeed, comfort and relaxation will immediately be felt upon your entry into the hotel. As part of its uniqueness, the hotel is equipped with eateries catering to a variety of palates:The Place, for its international buffet, The Backyard, for its barbecue buffet, The Minx Court, for its Guangdong-style buffet, and finally The Portal-Word & Play, for its vintage wine and music. It is worth mentioning that The Backyard has an outdoor dining gazebo. You can sit under a mango tree, look up into the sky and relax during a wonderful night talking with friends or family members. The hotel is delicately decorated, mostly with contemporary Chinese artwork and sculpture, Thehotel has coilected more than 1,500 pieces of artwork, tops among all of Hong Kong's hotels, With the aim of propelling artistic innovation and promoting local artistic develop- ment, the hotel displays the talents of artists from Hong Kong and Chinese mainland. These artworks have broad subjects ranging from natu- ralistic to satirical. Customers can enjoy the artworks in the hotel lobby, aisles, elevators, business halls and dining rooms. The guestrooms are modern, light and spacious, and come equipped with 42*inch plasma "IV sets. In order to meet the needs of its cus- tomers, wireless/cable ADSL Internet access is also provided in the guestrooms. The Cisco telephone network also adds to its convenience. As soon as you check in, you and your partners can automatically establish a special bond through this small phone. If you press the part- ner's name, a connection to his room will automatically be established. Through this phone, you can set your alarm clock, order hotel ser- vices for yourself or the members of your group. You can even go shopping in the Langham Place, an integrated Siamese building for business, shopping and entertainment, where you can also enjoy the convenience provided by the longest "sky elevator" of Hong Kong, at 83 meters in length. Here, you can appreciate won- derful digital films played by the first digital screen of Hong Kong and take in the view of the entire hotel at the 8th-12th floors. According to Lo Ka-shui, President of Langham HoteF Hong Kong, the average room prices of Langham Hotel Hong Kong and Langham Hotet Mong Kok have grown 15 percent and 24 percent respectively. The average occupancy rates of the two hotels have also increased 5 percent and 16 percent respectively. The Langham Group has full confidence in the Chinese mainland with its booming economy and tourism, so the group wants to pay more attention to the new market in the near future, It plans to build or invest in 20 new hotels in the main- land in the next five years. Their first Langham Hotel project on the mainland is scheduled to break ground in Chaoyang District, Beijing in 2009 and open in the same year. "We view developed areas like Beijing, Shanghai and Guangdong as the main targets, and other targets include Shenyang, Tianjin, Hangzhou, Dalian, Xiamen and Chongqing. Some other second-tier cities may also be taken into consideration," he added. The 2 nd Asia Property Investment Conference

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-: Ch=naRea{ Estate Market Outlook :" MuLh-financing channel of China real estate market Tapping AIternal&,e Global Cap,tat lot Mid-Sized Developers - 0TC and NASBAQ, Pn~te Wealth and AIM (Londonl ": Current market opportunihes for PEm China real eslate market IndustmaL & Logistics Investmenl New models, trends arid outlook in Chlna's commercial real estate Cooperative System and Operationa[ Model ol Overseas investmenl 0rganizat~ons and Real Estate Oorporai~ons ~n the Fields ot Reta~( Real Es(ate Ibis • Growing Path in China "- Economy hotel ~n PRC: Ihe upcoming favoured ~nvestrnen{ hype T Int'I leading hotel groups and Chinese developers. Expectatmn ot~ yleLds ['C,1I rh*;IL irl!~.rfl .;L,CJh ~liJOLJl I*'~lL~[edtJOrl OI ~]f.)n~OI r Proiect and Cot poratmn Financing - Temporary so{ution or permanent ¢ure'~ ,,pp,}r tUftll'*', pLt "J~_' £uflr,i( 1%,,,,iti-i - Investing m the Future ot Shopping Centres in China: Ecoaomic out!ook and Iong-lerm assessment ": Assessln 9 the attractiveness of Ch,na's her 2 ClheS

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"Development and Transition: Idea, Strategy and Viability" Before I answer the question of is the title of a lecture given by Justin Yifu Lin, professor at whether East Asia's success, especially its transitional experience, has a general the China Center for Economic Research of Peking University, implication for other developing and tran- when he spoke at the Cambridge University-sponsored sitional economies, I need to provide an Marshall Lectures from October 31-November 1. In his talk, analysis of the failure of gradual reforms in Poland, Hungary and the former Soviet Lin elaborated on the successes and failures of China's econom- Union in the 1980s before their adoption of ic transition along with those of other developing countries. shock therapy. They also tried to reform Excerpts follow: their planning systems by giving state- owned enterprises more autonomy. Their partial reforms did not, however, have the East Asian economies seem to be rather post-war development thinking and tried to positive results of the reforms in China and special in terms of their development and protect and subsidize the development of Viet Nam. A number of explanations are in transition performance since Wodd War I1. heavy industries by using quantitative order. First, unlike in China and Viet Development "miracles" occurred in the restrictions, tariff barriers and subsidized Nam--where state-owned enterprises, newly industrialized economies in East credits via strict regulation of banks and after fulfilling their plan obligations, were Asia and transitional miracles in China and other financial intermediaries. The attempt, allowed to sell their extra outputs at market Viet Nam. however, caused severe budget deficits and prices---the enterprises in Eastern Europe As discussed, China, Viet Nam and high inflation. The govemment in Taiwan and the former Soviet Union were not other East Asian economies adopted a dual- had to give up the attempt and devalued its allowed to set their prices. This price rigid- wack, gradual approach in their transition currency, liberalized trade and raised the ity meant that excess demand and chronic from centrally planned to market real interest rate to encourage savings and shortages remained and the state producers economies, which violated the basic tenets contain inflation. Without preferential pro- did not have the incentives to allocate their of the Washington Consensus and shock tection and subsidization, industrial upgrad- products to more efficient users, who therapy. In effect, for its transition from a ing in Taiwan foltowed closely the changes would then have been able m pay higher wartime economy after World War I1, Japan in its comparative advantages. prices for their products. also adopted a gradual approach, whereas A CAD strategy is very inefficient. How Second, market entry by non-s~ate enm-- Germany adopted a big-bang approach. In long such a strategy can be maintained prims was subject to severe restrictions. terms of development policies In Korea and depends on the level of resources the gov- Production remained monopolized and Taiwan, both governments initiallyadopted ernment can mobilize to subsidize the non- international trade was centrally regulated. a policy mix--including financial repres- viable enterprises and to support the invest- The existing stete-owned enterprises there- sion, overvalued exchange rates, deficit merit in the prioritized industries. Resource fore never faced real competition pressure budgets and neglect of the agricultural sec- mobilization is constrained by the natural from domestic ~ international sources and tor----co support the development of labor- resource endowment and population size. lacked the incentives to improve productivity. intensive primary manufacturing industries Contrasting with the case of "resource Third, in the traditional Soviet-type sys- to substitute the imports of manufactured curse" in many parts of the developing tem, to prevent managerial discretion under household products---referred to as "prima- world, the East Asian economies were the distorted macro-policy environment, ry import substitution" The policy package lucky in the sense that their governments state-owned enterprises were not allowed to was typical in countries that adopted a com- needed to be pragmatic in their policies and set their workers' wage level. In the Chinese parative advantage-defying (CAD) strategy. unintentionally follow a CAF strategy-- case, after the profit-sharing arrangement It was not, however, the intentional even though their governments had strong was introduced to the state-owned enterpris- choice of the government in Japan and other motivations for nation building. China's es, wages were still controlled by the state, East Asian economies to follow a compara- Confucian ~ulmre---which has a strong A worker's wage would increase only if the five advantage-following (CAP) strategy in impact in East Asia is pragmatic in nature. enterprise's profits exceeded a preset level. pursuit of economic development. The core of Confucianism is zhongyong, the In Poland, Hungary and the former Soviet Governments in East Asia also had a strong golden mean, which advises people to Union, however, partial reforms gave the desire for the development of advanced cap- maintain balance, avoid extremes and enterprises the autonomy to set their work- ital-intensive industriea----just like govern- achieve harmony with the outside, changing ers' wages. The weakening of state control ments in other developing counlries in the world. The political philosophy and policy on wages gave managers and workers an 1950s and 1960s. Their economies were. principles promoted by the Communist opportunity to increase their incomes at the however, relatively small in population size leadership of Mao Zedong, Deng Xiaoping expense of the state by absorbing whatever and their natural resource endowments were and Jiang Zemin, Hu Jintao are, respective.- income flow and whatever assets they could extremely poor, which greatly constrained ly, shishiqiushi (finding truth from the obtain from state-owned enterprises. The their ability to mobilize enough resources to facts), jiefangs~ang (freeing one's mind state's revenues were thus greatly curtailed. subsidize the non-viable enterprises in the from dogmatism), yushijufin (adapting to Fourth, wage inflation caused the capital-intensiveindustries in the early stage the changing environment) and ]w.xie (har- shortage to become even more acute; gov- of their development. In the early 1950s, mony)--all reflecting the traditional ernments in Poland and in the former Taiwan was influenced by the fashionable Chinese culture of zhongyong. Soviet Union then tried to play a populist

18 BEIJING REVIEW NOVEMBER 29, 2007 I/IEWPOIP game. They increased the imports of con- • The government can take measures to resulted in a dramatic increase in agricul- sumer goods and forced a heavy burden of improve individual incentives by granting tural productivity and output growth. The foreign debt on their countries. Because of partial managerial autonomy and profit- government of the former Soviet Union this, instead of bringing continuous growth sharing to farms and state-owned enterpris- under Mikhail Gorbachev adopted sinlilar and a gradual transition to a market econo- es in order to improve incentives and allow reforms of its state farms with 50-year leas- my-at in China and Viet Nature par- the economy to move closer to the produc- es. Theoretically, the Russian reforms tia[ reforms led Poland and the former tion frontier, which will induce a new seemed to be better than the Chinese Soviet Union to the brink of bankruptcy s~_.am of output growth. reforms because of their longer and more and hyperinflation. • The government can introduce a secure tenure arrangements; however, the The transition from a CAD-type econo- dual-lxack price and allocation system to Soviet government had a hard time finding my to a market economy in socialist and replace the old single-track plan. It can farmers willing to accept this arrangement. developing countries proved difficult. A remove market entry restrictions to allow In hindsight, the failure of the Soviet transitional economy's institutions must be resources to be allocated increasingly by Union's reforms might have been because weak and there will be severe distortions in the non-state sector to the previously sup- its state farms were highly mechanized, prices and production structures. Shock pressed, more productive industries, while depended heavily on purchased inputs, therapy--which characterizes a macro-first maintaining the quota obligations of state- such as chemical fertilizers and fuel, in the approach to building up the requisite market institutions---cannot deliver a rapid jump to a prosperous market economy. The experi- ences in China and other East Asian economies show that deep and extensive reforms are not required for dynamic growth at the onset of the transition. As such, the crucial issue in wansition is to have a strategy of sequencing reforms that identifies the most pressing bottlenecks and concentrates resources on the relaxation of binding constraints, removing the sup- pression of incentives and inspiring people to improve perforn~ance to achieve a better life through their own efforts. The IMF/World Bank's macro-first reform approach might be appropriate for an econ- omy in which market institutions are more or less intact and the structural imbalance is small. To use the famous analogy in a some- what different version, "When the chasm is narrow, it's all right to jump over it:' The stabilization program can achieve its goal immediately and the economy can soon operate in a normal market environment. In CHINA SPEAKS: Professor Justin Ylfu I.in is the first Chinese economist to speak at a country that has pursued a CAD strategy the world-renowned annual Marshall Lectures, which selects well-known economlste for a long time with severe distortions and a from around the world to participate large number of non-viable enterprises, the chasm will be too wide and too deep. A owned enterprises and farms in order to production process and were far away from jump without careful preparation will result secure adequate resources to subsidize the markets, As such. a small individual hot~se- in a disastrous fall. In such a situation, it is existing non-viable enterprises. hold farm was not viable. The opposite was desirable to fill and narrow the chasm • When the products in a sector am allo- true in China. before making the jump. cated largely by the market track, it is time In a gradual, piecemeal reform, them- The East Asian experience suggests that for the government to introduce full market fore, the government should not have a pre- with a small change that provides the right libemliTation in the sector. determined, grand blueprint. Instead, it incentives for people it is possible to • The government should introduce should follow a diagnostic approach, find- unleash dynamic growth on a weak institu- continually the necessary regulations and ing out the most crucial binding constraints tional base, leading to an eventual transition laws to strengthen market institutions dur- on incentives and resource allocation and to a fulIy-fledged, well-functioning market ing the above process. introducing reform measures that are effec- economy. For a developing country that fol- The above principles or experiences of Uve but which can be regarded as "halfway lows a CAD strategy, there must be distor- other countries should not be applied in a measures" by market fundamentalists. In tions in the incentive system, which sup- dogmatic way. One example is China's the process, the government should encour- press individual efforts in production, and 1979 reform of its household responsibility age and pay attention to local and private there must be industries that are consistent system, which leased collectively owned initiatives in institutional innovations. In with the economy's comparative advan- land to farm households for 15 years. Like this regard, political wisdom derived from tages but which am repressed. The useful many reforms in China, it was initiated by Chinese culture--shishiqiushi, jiefangsixi- lessons from the gradual, dual-track, micro- farmers, sanctioned by the government and ang and yushijt,jin----could be relevant to first approach to transition in East Asia can introduced nationwide only after its perfor- reform-minded governments in other devel- be summarized as follows. mance was demonstrated. This reform oping and transitional countries. •

BEIJING REVIEW NOVEMBER 29, 2907 19 NATIOI PATH TO SPORTINGPOWER With the Olympics approaching, China has begun to question its future in international sport

By TANG YUANKAI Administration of Spon, and President of the participation in exerci,~ and the develop- Chinese Olympic Committee, said recently, ment level of sports industries. "'Sports 'hen China returned to the "China still lags far behind sports powers power should be a comprehensive concept," Olympic Games in Los such as the United States and Russia:" Yuan said. Angeles in 1984 after a 50-year Liu's predecessor Yuan Weimin voiced Yuan also believed that China would not absence, the Chinese national the szm~e concern three years ago after the become a real sports power without produc- rerun staged a wonderful debut, conclusion of the Athens Olympics. Yuan. ing excellent swimmers, field and track ath- Wgrabbing 15 gold medals. Over the following who was head coach of the Chinese letes and water sports players. Ren Hai. a five Olympic Summer Games, Chinese women's volleyb',fll team when it took its professor at Beijing Sport University. said tearrts won another 97 gold medals and third word champion title in a row at the these events are the best index for the gen- received their besl tally, 32 gold medals, al 1984 Olympic Games. even retorted to a eral fimess of a country's population. the Athens Olympics, secxmd only to 35 for joum'alist, "'Do you think the~ gold medals China has developed substantial advan- the United States. Now, with the Olympics alone can make us a sports power.'?" tages in ,several Olympic events, which have coming to China, the Chinese people are Yuan believed the strengths of a sports become the major gold medal ,sources for the hoping for an equally powerful performance, t~wer should be reflected in many aspects. country over the years. Amon~ the 28 ~old NATIC in 2IXX), 21 ctune ~)m table tennis, diving, gold medals than China at the Bei.iing Tian, Vice Minister of the China General badminton, weighdifting and gymna,~fics. Olympic Ganges next year. Administration of Sport. Meanwhile,in the three categories with most The China General Administration of The Chinese Government stm'ted to land gold medals: athletics, swimming and water S~rt drafted a development plan for com- professional sports teams in the 1950s. sports, Chinese players snatched just one out petitive sports by 2(110, whose general goal Under this system, Chinese athletes have of 119 gold medals. is to prepare the country to participate in reaped almost 2,(XX)world champion titles. After the Sydney Olympics, Yuan put competitions among first-layercountries. In Ren said, "A country's peffommnce at fbt'ward a strategy to build China's prowess 2(~)4, Xiao Shouzhang, Vice President of international sporting competitions is .,~me- in athletics, swimming and water sports. His the Chinese Olympic Committee, said that how an index of the country's national strategy yielded remarkable results at the China would challenge the forerunners at strength, vitality and capacity for sustainable Athens Olympics, where Chinese athletes the Beijing Olympic Ganles. development, which is decided by the coun- l:xx:keted four gold medals, two silver n,edals Bao Mingxiao, a senior research fellow try's comprehensive strength?' He said coun- and one brtmze medal in events of the three with the China Institute of Sport Science, tries with ptx~r comprehensive strength could categories. ~lese medals included China's said. "'Although China for the first time at best exhibit outstanding edges in a small first Olympic track-and-field gold in a men's became a first-layer country at the 2(X)4 number of events for a short period of tinle event tbr star hurdler Liu Xiang. Olympics, the following two Summer Ganges but couldn't maintain competitivene,ss in a Even in competitive sports, China's com- in 2(X)8 and 2012 will be the key stages to test wide range of events. preherLsive strenmhs remain far behind the and enhance China's swengths." China's government-sponsored sports United States and Russia. In 2005. U.S. ath- system is totally funded by the government letes won a total of 41 world charnpion tides Government-sponsored and features a three-layerrelining system of in 41 ()lvmnie evenls_ Ru~;~ian alhlete.,~ 34 "Government's long-term funding nrofe~ional a~hleze~ where coaehe~ find ml- IATION expenses 'and entrance fees for international professional sports in China," said Fang "We will strive to raise this proportion competitions. Athletes and their families do Xuefeng, a senior sixes journalist on Beijing to 40 percent by 2010." said Ji Chuan. an not need to nmke any risky investment and Television. Before the Atlanta Games, the official in charge of mass sports in the China the system has excelled in producing talented prizes for Olympic champi(ms came mainly General Administration of Sport. athletes over a short period with limited gov- from the government and overse~s founda- One of China's national sports meet- emment investment. A direct result of the tions. Yet since the AtlanticOlympic, s, a gilt,r- higs. slated for the second half of 2010, system has been China's quick rise in the ing number of slat Olympic athlea~, have start- will host mainly non-Olympic sports Olympic medal rankings over the last two ed to reap "handsome profits from participating designed lbr exercise rather than competi- decades. The system has also helped China in commercial activities, including shooting tion. advertisements. According to Wu Shaozu, former head Over the last of China's sport administrative authorities, China would not become decade, reform of the government money spent on encouraging government-sponsored mass sports will help the country's Olympic a real sports power without system has continued. medal prospects. producing excellent swimmers, Professional sports Many experts complain that the social development has basis for many competitive sports remains field and track athletes and become ~ inclusive, poor. Many people have questioned the encouraging the partic- logic of nurturing a team of talented players water sports players ipation of other forces against encouraging mass participation in from society. There are sports, which would give every sport a larg- more and more professional teams to maintain a long-term edge in certain sponsored er pool of talent. by businesses, institutions of higher learning, sports, demonstrated by the five Olympic The China General Administration of commercial clubs and even individuals. The gold medals in a row in women's three-meter Sport and other government departments are state renmins the while acdve springboard diving. major sponsor investing more in the organization of mass participation by various forces from society has sports. China's economic boom has promot- Commercial operation relieved the government's financialborden. ed a rise in living standards. Compared with "Mum used to be a star as big as Michael Mass participation the past, the Chinese people worry less about Jordan in China," Lang Ping told her daughter, A survey in 2000 found that the number food, clothing or housing and more about who was born and raised in the United States. of active sport participants, defined as those their health and fitness. Taking part in sports As arguably the most revered volleyballplay- who take part in at least three sessions of has become part of life for an increasing er in the world in the 1980s, 'Lang, together more than half-an-hour of exercise every number of people. "China's dream of with her teammates, swept five major world week, account for about one third of becoming a genuine sports power relies on tides in succession in the 1980s, includingone China's total population. these people" said Wu. s Olympic gold medal. Yet Lang's 15-year-old daughter has to grow older to understand that her mother made almost no money out of her fame during the pnme of her sporting career. The biggest monetary reward Lang ever got was lO,OfX)yuan. In 1996, the governmentsport administra- tive author-ides formulated an advertisement regulation for professional athletes. Article One of this regulation starts by saying: 'The invisible assets of professional athletes all belong to the country:' which is understand- able since the state has paid the expenses for nummng their talent. But this regulation has not been well implemented in practice. In 2001, the Chinese men's soccer team for the first time qualified for the final round of the World Cup. Major players in the team signed several advertisement contracts with- out ratification from the national team and China General Administration of Sport. Some years ago, the Chinese national table tennis team even tried a commercial agent system out on its players, which allowed them to seek agents and companies to spon- sor" them. The trim turned out a failure because, except for a handful top ranking players, most players could not find enough money to support their living and training, let alone their air fares to compete abroad. "The AtlantaOlympics in 1996 unleashed a new chapter for the co~ali7xion of

22 BEIJING REVIEW NOVEMBER 29, 2007 ~IATIO WOMEN LEADMEDAL HAUL Chinese women have overshadowed their male counterparts in sporting events and look likely to do so again at the next Olympics

By TANG YUANKAI Olympic gold medal and the country's first like soccer and weighflifting are due to the world championship tide in a team evenL fact that these events have developed longer t a workshop organized by the China's splendid sports honors have been in China than in other countries, before they Chinese Olympic Committee in achieved by both male and female athletes:' were listed as Olympic events. When Beijing on November 17, the spot- Li Xiaozhi, a sports historian, believes women athletes of European countries and tight was focused on one person, that the development of female competitive the Unites States accumulate enough expe- 70-year-old Zheng Fengrong. sports is attributable to several factors. rience, our advantages in these events will AExactly 50 years ago, 20-year-old high Chinese historians agree that the jumper Zheng leaped into history, creating a women's movement in the West new high jump world record of 1.77 meters, was different from the women's and recording the first track-and-field movement in China. 'q'he record by a Chinese athlete. women's movement in the West A congratulatory telegraph to Zheng emphasized the fight against male from the President of the International supremacy while ignoring reforms Olympic Committee (IOC) Jacques Rogge on existing unfair factors in social was read at the workshop. Rogge praised life and reforms in economic sec- Zheng as "the first Chinese woman to create tors," said Li. He said that by com- a world record?' parison, during the feminist move- In the history of China's competitive ment in China, .socialist public sports, women have outperformed men in ownership had provided the basis terms of medals. At the Athens Olympic for equal economic status between Games, the American team topped the gold men and women, which helped to medal table with 35 gold medals. Yet look- guarantee completely equal politi- ing at the performance of women athletes cal rights between the two genders. alone, China had the strongest female team "These conditions have among all countries, which collected 19.5 ensured that women are treated gold medals, the half coming from the bad- equally in the drafting of sports minton mixed doubles competition. development strategies, which is At the 20q0 Sydney Olympics China's the primary impetus to the rapid female athletes won 16.5 gold medals while development of women's sports in the men won 11.5. In Atlanta, China's China" women won nine and men seven. And in Some experts say that govern- Barcelona women beat men in terms of gold ment sponsorship for professional medals by 12to four. teams in China also helps women So far, of the 114 Olympic gold medals, athletes achieve better perfor- SOARING TO SUCCESS: In November 1957, Chinese China has won at both Olympic Summer mances compared with their for- high jumper Zheng Fengrong Jumped over 1:/7 maters, and Winter Games, 67 have been awarded eign competitors of the same becoming the first Chinese woman to create a world to female athletes. level. In many countries, some record The trend of a stronger Chinese female women athletes, especially those team has shown no trace of diminishing. At in less commercialized sports, cannot afford diminish, especially in strength-demanding the latest continental games China took part to go professional. In China. the govern- events," said an expert who requested in, the Doha Asian Games in 2006, Chinese ment pays for the training of athletes in all anonymity. female athletes snatched 93 gold medals out Olympic events. Medical experts have pointed out the of the total 165. China's athletic female [au- Dong Jinxia, a profes~r at Beijing psychological factors prompting Chinese reates included top-notch performers at Sport University, said the rise of Chinese women athletes to outperform male athletes Athens as well as younger "dark horr------~swho female competitive sports and development in Olympic Games. According to national are expected to create a surprise at the of world female sports in general have physical surveys in China, Japan, the United Beijing Olympics, become inspirations for each other. 'q'he States and Canada conducted from the late Beijing-based freelance writer A. Dai principle of fair play in sports has provided 1970s to the mid-1980s, Chinese women wrote in his blog: "Chinese men sometimes men and women with an absolute equal were physically closer to women in other l~el a loss of dignity seeing the opposite sex opportunity, if not the only equal opportuni- countries than were Chinese men. Chinese grab top honors in international competi- ty, to prove themselves and pursue excel- women's rising performance in internation- tions. But they are more often proud of their lence," said Dong. al competitions has also fueled women's l~malecompatriots' stunts. After all, Chinese Some experts believe Chinese women enthusiasm in sports, which has made them male athletes won the country's first teams' outstanding performances in events healthier and happier, i

BEllING REVIEW NOVEMBER 29, 2~17 2.3 ATIO~

classrooms to do sport. Schools were ordered to set aside one hour for physical training each day. Due to exam and homework pressure, SPORTS ON CAMPUS one hour every day .seems quite luxurious, and demonstrates the government's firm Traditionally chained to the desk and worried stand in promoting and enhancing the impor- about impending exams, an increasing number of tance of sports activities in elementary and middle schools. Few schools have reached Chinese students are now taking a break from the goal of an hour of sport a day, but things their studies to participate in sports are changing in the right direction. ChenjinglunMiddle School is a key mid- die school in Beijing. The school reformed By YUAN YUAN China promulgated a Students' Physical its physical training classe~s in 2003, and PE Heath Standard in July 2002 toreplace the lessons became a daily class. The contents of I ! A Iways studying hard in front former one which was failing to fully reflect of a desk which is full of the classes changed too. Students no longer the health condition of students. The new 'all recei,)e the same training, but get to hooks and exam papers, standard added height and weight among solemn-looking, no smile, choose an activity according to their interest. the standards of physical health. In addition, There are nine different courses, including ~ccasionally looking up students of different grades were given dif- with a pah" of g]~lsses perched on his face" ping-pong, basketball, football, "badminton ferent sports activities to do. For example, and Taekwondo. That was the typical image of a high-school students in grades one and two in elemen- student, or even an elementary school stu- "'It was quite enjoyable to have PE tary ~hools will have sit-and-reach tests, (physical education) lessons in my middle dent, a couple of years ago in China. Sports while students in grades three and four will were rarely part of the educational picture. school" said Yin Yuge, a student who just take part in a 50-m run. graduated from Chenjinglun Middle Physical training In May 2007 the State Council of School. He took a course in Taekwondo, In order to change the poor level of China implemented a plan under the slogan which enhanced his confidence level. physical exercise among students as well as "sun sports for 100 million students of Kaifeng High School is a key. high ideas about sports ha general, governments China," calling for physical training of at school in Henan Province. PE lessons are at different levels have implemented poli- least one hour every day for juveniles with the first thing to be taken into consideration cies to improve the conditions for sports. the purpo~ to encourage students in ele- when making class schedules each new The General Administration of Sport of mentary and middle schools to leave their semester. The school makes sports plans

and can be played almost anywhere. The second advantage is that playing jianzi can exercise the body in a compre- hensive way as it requires coordination of MORE THAN A GAME the whole body. Many health experts believe that playing jianzi is also a good The traditional Chinese sport of jianzi, or way to exercise hand-eye coordination, shuttlecock, has found a niche in modern China which is good for the health of the brain. Thirdly,jbmz/can be played by a group and also the world of people, so it can help to foster inter-per- sonal communication. By JING XIAOLEI jianzi experience with players acres China Through thousands of years of social "I think playing jianzi is the most sim- he ancient sport of jianzi, which evolution, the old game ofjianzi has persist- ple and efficient exercise for those who ed in its existence and found a niche in the originated in China during the 5th spend most of their work time sitting in the Century BC, is growing in popular- modern world where people have many office and so have a problem finding ways ity both across Asia and the world. other spoas and activities to chose ~)m. to build their health during work hours:' Jianzi involves juggling a feathered In China's big cities, such as Beijing, said Timeless-love. Tshuttlccock using the knees and feet. Played people of all ages can be seen playingjianzi casually, it has no winners or lo~rs, although "A shuttlecock was the first toy for me alone or in groups, in parks and play- in professional competitions it can. when I was a kid. My sister and I had to work grounds, in the mornings and evenings. It was first called 7"/Jian Zi, or simply hard to support the family so there was not In 2001, a national educational policy to "kicking shuttlecock" and is believed to much time for us to play around and the little promote traditional Chinese sports and have evolved from an ancient military exer- game of playingjianzi became my favorite:' exercises was launched. The policy stated cise before spreading across Asia taking on Timeles.~love told Belling Review. that ~hools in different regions of China different names as it travelled. The fan club founder believes jianzi could add traditional sports and exercises to The late,steditkm to thejbz,~' craze is neti- enjoys three major advantages over many their physical education programs. zen qqmeless-love who foutrl~ an online fan other sports. Firstly, it requires just a shut- As well as being a fun sport played club in November and hopes to share the tlecock, which costs no r0ore than five yuan across China, jianzi is also played comped-

24 BEllING REVIEW NOVEMBER 29. 2007 NATIC

tively and has graced the country's cinema was so successful that it won an internation- founded the Amateur Union of Shuttlecock, screens. The first national jianzi comped- al movie festival gold medal. which in 1994 changed its name to Hong tion took place in 1933 in Nanjing at the In 1984, shuttlecock-kicking became an Kong Association of Shuttlecock (HKSA). fifth National Sports meeting, In June, official national sport. The same year an While it is already well-known in Asia, 1961, a movie called The Flying Feather enthusiastic group of fans in Hong Kong the game has been gaining popularity in Europe too. The World Shuttlecock Championship is an annual event that has been held since the founding of the International Shuttlecock Federation (ISF) in 1999. Until then, various countries have taken turns organizing championships. The stx~rt continues to receive greater recognition, and was included in the 2003 Southeast Asian Games. Among the mem- ii ' bers of ISF are China, Fin]antL Germany, the Nethedands. Hungary, Laos, Vietnam, Greece. France, Romania. and Serbia. Viet Nam and China are generally con- sidered the leading teams in terms of ranking, while in Europe, Hungary and Germany are -.. ~ - "i~L t.A -.,..~ _ considered the best, On August I1, 2003, delegates from Finland, France, Germany, Greece, Hungary, Romania, and Serbia founded the Shuttlecock Federation of Europe (S.EE.) in Ujszasz (Hungary). • • I KEEP IT UP: Young people play the traditional sport of jianzi near Houhal Lake in Beljlng

BELLING REVIEW NOVEMBER 29, 204)7 2.5 IATION Check on Power Chinese legislators remain deadlocked over a bill aimed at protecting the public from abuses of administrative force

By FENG JIANHUA essential role in pushing the transformation is difficult for the vicdrm of these abuses of of government to a service-oriented one;' power to win compensation. fter two years of debate, China said Ying Songnian, a professor of law of Professor Ying ,said the Administrative remains undecided over a bill that China National School of Administration. Mandatory Law is essentially a law to regulate would regulate the power of gov- who has participated in the drafting process administrative Vawer by outlining limits on ernment, but dc~ remain alive and and two readings. government Ixwcer and what kind of prtx:e- ,kicking, and a step closer to Yang Jianshun, a professor in the Law dares should be adopted to ~al with different Abecoming law. School of Renmin University of China, is Differences of opinion over the ground- sittmtions. He said the abuse of administrative pessimistic about the law's second reading. mandatory sanctions remains wi~ For breaking Administrative Mandatory Law He believes that legal experts remain diver- have so far stifled and almost suangled it. example, some local governments use coer- gent on some coercive measures, such as cive ~ure~ in 'land requisition cases against According to China's Legislation Law, if restrictions on personal freedom and intru- deliberations on a bill before the Standing residents that refuse relocation an'angemenL% sions into private residences by force, and often leading to conflict; and environmental Committee of China's National People's that further debate is needed. Congress (NPC), the country's top legisla- pnaection agenci~ fail to impose mandatory ture. are suspended for two years or longer Abuse of power sanctions on factories that pollute the environ- and the bill has not been placed anew on the Legal experts have accused local gov- ment China urgently ne~s the Administra- Standing Committee agenda, the bill is ter- ernments across China of exploiting legal tive Mandatory Law, according to Ying. minated. That almost happened to the loopholes. They say that administrative Legal experts, including Professor Ying, Administrative Mandatory Law, but on agencies have issued regulations to design believe that the new law could create an awk- October 24 it was .saved when the latest mandatory sanctions under the name of ward situation regarding government power. draft of it was submitted to the Standing enhancing efficiency. These regulations, While power is abused in some cases, Committee of NPC for a second reading. issued by different government devartments, infringingon the legal interests of individuals "It is a pity that it has taken almost two usually fail to outline specific procedures, or organizations, it is too weak in other cases, years between the f'Lrst reading and the sec- leaving room for the abuse of power by enabling illegalacts to go on without forceful ond reading of the bill considering the law's administrative organizations. Meanwhile, it intervention from the government.

26 BEIJING REVIEW NOVEMBER29, 2007 ~iATIO

some support from the public. atmse of adminiswative power and punish- Professor Ying, who supports a ment should be imposed on the direct supervi- quick passing of the law, admitted sors and people responsible for the a~se. that some "administrative compul- To reduce often violent conflicts during sory measures contained within land requisition cases between government the draft law could be a double- staff and residents that retiLSe relocation edged sword, either raising arrangements, the second draft has added administrative efficiency or hin- provisiorL~ that forbid government bodies dering the interests of ordinary from cutting water, power, heating and nat- people. uml gas supplies as a means to force people Most people are concerned to fulfill their administrativeduty. that the government's coercive Controversial issues powers could further expand as a Of all the mandatory measure.s, the result of the law. In recent years most controversial are restricting personal there have been numerous cases freedom and intruding into private resi- REFUSING TO SHIFT: Law enforcement officers of local governments using vio- dences. The first draft of the law outlined in BelJlng try to persuade a watermelon vendor to lence against citizens in the name remove en Illegal stand from a curbside in the cry strict rules regarding these measures includ- of implementing the law. ing ratification from the head of the relevant Coercive measures government body, presentation of identifi- Biggest barrier The draft law Lists some administrative cation cards and informing the people con- China began the drafting of the mandatory measures that can be used, inchid+ cemed of the reasons for the action as well Administrative Mandatory Law as early as ing restrictions on personal freedom, sealing as how to apply for compensation in the March 1999 and a preliminary draft came up or sequestering property, freezing bank event of an atmse of power. out in 2002, which was open to suggestions accounts and entering private resider~es by During the second reading of the dm~ from the public. When the draft law was force, among other coercive measures. some lawmakers said that stricter proce- submitted to the NPC Standing Committee for deliberation in December 2005, legal experts optimistically e.stimated that the draft would become law soon. Of all the mandatory measures, the most Law Professor Jiang Ming'an of Peking University amibuted delays in adopting the controversial are restricting personal freedom law to differing opinions on the legislation within it. Debates on the law have fallen into and intruding into private residences three categories: whether China needs such a law now; whether administrativecompulsory measures should be regulated by a law Ira> According to legal practices in other coun- dures should be adopted to curb the use of mulgated by the NPC, regulations issued by tries, legislation on .administrative coercive these coercive measures. In light of this, the government or by local people's ~sures aims to fulfilltwo goals. Ftrstly, it is second draft stated that limits to personal congresses; and who between needed to confine the coemive ~c~s of freedom should be abolished once their goal "administrative organs and the courts administrativeorgans so that the personal free- has been achieved. has the authority to implement dom and the ~ of citizens do not fall The second draft also included stricter •, administrative compulsory mea- victimto random intrusion by the govemrnent. procedures for intrusion into private resi- SUI'eS. Secondly, it grants administrativeorgans cer- dences, stating that a warrant must be issued Ma Huaide, a professor at tain coercive powers so that administrative by a government body of county level or China University of Political efficiency can be raised and the administrative above. However, many people still think it is Science and Law, said one of the organs can play a better mie in safeguarding not strict enough. He Zhongtai, a represen- strongest voices agairL~ hurriedly public interests and order. tative to the NPC who participated in the passing the Administrative The emphasis in China's draft law is second reading of the law, said, "A_~a harsh Mandatory Law comes from gov- placed on preventing the abuse of power. coercive measure, entering private resi- eminent agencies that are afraid of For example, it is written in the principle of dences must get permission of the court." losing power. the law that without authorization under Another lawmaker,Li Dekuai, questioned Members of some administra+ law, no government body or organization why the draft law fails to detail prtx:edmes for tive organs, such as law enforcement can take coercive measures. The draft says imposing resu'i~ons on personal freedom and officers of city administration and that mandatory sanctions should not be used intrusion into private residences. market supervision, am concerned if non-mandatory measures, like persua- Furthermore. divergences remain over that the law could weaken their sion, can achieve the desired goals. The use what kind of laws and regulations can powem and limit their ability to do of coercive administrative measures should include coercive measures. According to their jobs efficiently. Many of them cause minimaldamage to the interests of the Professor Yang, the first draft only covered support the drafting of laws and reg- party concerned. the powers of the NPC, while the second ulations to avoid the a~se of admin- Some lawmakers insisted on putting limi- draft was expanded to include the State istrative powers but t~tyse strict tations on iterrts that can be confiscated. Thus Council's regulations and regional regula- rules thai could handicap adminis- the .second draft "added pn3visions that the tions made by local people's congresses. trativeorgans. seizazeof itexm not related to illegalacts it for- *'This change was made after the legisla- The concerns raised by admin- bidden. The draft also says people should be ture listened to the suggestions of legal experts istrative organs have received compensated for any damage ~used by an and I am one of them" said Yang. ,,

BEIJING REVIEW NOVEMBER 29, 2,007 27 OLYMPICS IN FOCU Medals With Chinese Flair The medals of the Paralympic Games mix traditional Chinese qualities with a robust design

By TANG YUANKAI n November 14, the Beijing Organizing Committee for the Games of the XXIX Olympiad I BOCOG) unveiled the medals for the Paralympic Games of 2008. The Odesign concepts of the medals echo those of the Games of the XXIX Olympiad, and con- vey the theme of"One World One Dream" A jade disc is set into the obverse of each Beijing 2008 Paralympic medal, and the emblem of the Beijing2008 Paralympic Games is found at the center of the jade dis. On the reverse side are the emblem of the International Paralympic Committee (IPC), the name of the event and "Beijing 2008 Paralympic Games" in Chinese, English and Braille. The color of jade varies with the medal: white jade for the gold medal; gray-white jade for the silver medal; and gray jade for "~ -. ~ .- the bronze medal. "We Chinese traditionally use jade to represent good virtue. Using this special material in the medals of the Paralympic Games vividly interprets Chinese national values. It's a perfect combination of the Chinese nation and the Paralympie Games,'" said Hang Hal, a professor with the the Central Academy of Fine Arts and also one of the chief designers of the medals. 'q'he design of the medals embodies the spiritual strength of the Paralympic athletes and represents the harmony and peace of WINNING DESIGNS: The front and back of the gold, silver and bronze 2008 Paralymplc human beings," Hang added. medals

and its Escondida and Spence operations in Chile will provide Olympics Briefs the materials needed to produce the gold, silver and bronze Medal production medals for the Games. According to the medal producer for the 2008 Olympic and Foreign language speaking volunteers sought Paralympic Games in Beijing, the BHP Billiton, a global for Beijing Olympics resources company, will produce more than 50,000 medals Although the number of applicants (730,000) has surpassed before June 2008. The medal production is expected to con* the required amount, more foreign language speakers are need- sume 13 kg of gold, 1.3 ton of silver and 6.9 tons of bronze. ed to offer volunteer services for the Beijing Olympic Games, There are 1,000 gold, silver and bronze medals needed for according to the Office of the Volunteer Work Coordination the two games. Some 40,000 souvenir medals are needed for Group for the Beijing Olympic Games. the 2008 Olympic and 10,000 for the Paralympic Games. The office sincerely invites people of all circles who can The Australia-based BHP Billiton became medal sponsor for communicate in any of the foreign languages chosen by the Sydney Olympics in 2000. The company signed a contract BOCOG and meet the volunteer requirements to seize the with BOCOG in 2005 to sponsor the Beijing Olympics and began opportunity to register as volunteers. The departments con- to provide raw materials for the medal production. cemed witl go on a new round of selection and testing process ~ The company's Cannington mine in Queensland, Australia, es in mid December.

28 BEIJING REVIEW NOVEMBER~9. 24)07 )LYMPICS IN FOCU

The materials, weight, measurements and patterns of the Paralympic medals strictly follow all guidelines set out by the IPC. In its letter of approval, the IPC relayed a congratulatory message regarding the design program for the medals. Extensive research and planning for the medal design for the Paralympic Games of 2008 began in November 2006. The final design was chosen from 21 draft works sub- mitred by the design group, which had stud- ied designs from past Paralympics. Using the successful de,signs for the Beijing Olympic Games as their template, specific designers were invited to create the "look" and "feel" of the Beijing 2008 Paralympic medals, including designers from the Central Academy of Fine Arts, the Academy of Fine Arts at Tsinghua University and China Banknote Printing and Minting Corporation. All of the designers had originally sub- mitted enlries in the original campaign for the Beijing Olympic Games medals. On December 7, 2006, a meedng was held to launch the medal design competi- tion. Through December 31, 2006, the aforementioned organizations submitted a total of 21, two-dimensional designs. On January 9, 2007, at the invitation of i BOCOG, leading Chinese experts and

• \ scholars from the arts, sculpture, mindng and Paralympic sports appraised the 21 pieces of work. / BOCOG then asked the relevant organi- zations to make modifications and improve- i ments to the designs. BOCOG and the IPC approved the final deigns on September 20 and October ] I, 2007. "At the beginning, we wanted the Paratympic medals to be different from the Olympic medals, at least in shape. But we had a consensus to use jade as it is a symbol of Chinese culture:' said Hang. At lasL Hang and his team decided to follow the medals of THUMBS UP: Paralympic athlete Yang Bozun shows his approval of the Parelymplc the Olympic Gam~ for the re~cm that the gold medal at a press conference to unveil the medal designs on November 14 two games share the same spirit. •

The Beijing Olympic Games are expected to provide ser- Monitor Food Safety vices in 55 languages. They are English, French, Spanish, China has established two electrical monitoring networks using Russian, Arabic, Japanese, Portuguese, German, Korean, a website platform to guarantee food safety during the Beijing Italian, Greek, Polish, Hungarian, Czech, Romanian, Serbian, Olympic Games, according to Li Yuanping, an official in charge of Ukrainian, Croatian, Slovak, Thai, Turkish, Persian, Danish, the safety of imported and exported products at the General Uthuanian, Hebrew, Azerbaijani, Norwegian, Latvian, Armenian, Administration of Quality Supervision, Inspection and Quarantine. Vietnamese, Mongolian, Slovenian, Hindi, Georgian, The China product quality monitoring website is a public Macedonian, Indonesian, Amharic, Lao, Estonian, Albanian, information platform where people can inquire about product Farsi, Icelandic, Pilipino, Cambodian, Burmese, Moldavian, quality and food security. Every product on the website has an Catalan, Luxemburgish, Bosnian, Dutch, Finnish, Swedish, electdcal monitoring code. Bulgarian, Malay and Urdu. By sending text messages, calling, and seamhing on the Teachers and students in Beijing's universities, including Internet, consumers can judge whether a product is real or fake. foreign students (teachers) can register at the Chinese Five licensed Olympic food suppliers in Beijing have joined the Communist Youth League of their universities, while other peo- network. ple can register online at the website of any of 8eijing's 18 dis- U said that all the Olympic food would be included in the tricts or counties. product quality-monitoring network to guarantee food safety.

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past several years. For example, CC'B, BOC, ICBC "and some regional shareholding banks have been listed on the stock market and atwacted overseas strategic investors in sac- Overseas Expansion cession after 2003. By September 30, 2.~7, ICBC, CCB and BOC ranked, respectively, the world's first, fifth and sixth large.st listed Cbina's banks are launching overseas banks by market value. It has been a must choice for Chinese expansion projects while multinational enterprises eager to overcome their develop- ment bottleneck to invest overseas in order banks vie to start operations in China to obtain resources, energies, brand influ- By TAN WEI he Industrial and Commercial Bank of China (ICBC), the world's biggest lender by market value, will acquire,a T 20-percent stake in South Afrieas Standard Bank for $5.5 billion, said ICBC President Yang Kaisheng, at the 4th Annual Conference of International Finance Forum just concluded on November 8. If the acquisition is closed smoothly, it will be a milestone for China's commercial banks that are striving to deliver a better per- formance on the global financial stage. Differing from the small Bank Halim of Indonesia and Seng Heng Bank of Macao which the Chinese bank purchased several months ago, Standard Bank of South Africa is truly a major international bank. Standard Bank ha,; a presence in 18 African countries STEP-BY-STEP: Cross-border mergers and acquisitions have become a major method and 19 major financial centers in Europe, for a majority of Chinese banks to tackle overseas markets in recent years North America and Asia, and is focusing its expansion in burgeoning markets. It topped the Chinese Banking industry under the ence and sales channels, and the banking all other African banks in terms of assets Central University of Finance and sector is no exception. and profits and ranked 106th in the Top Economics. "But confronted with foreign "It's the right time for Chinese banks to 1,000 World Banks by The Banker maga- banks keen on securing larger stakes in the launch overseas expansion," said Luo zine last year. Chinese market, Chinese "banks have to get Zhiheng, General Manager of BOCI Besides this recent news, China stronger through investing overseas, and it's Research Ltd. "The great pressure of ren- Minsheng Bank Corp. also announced on undoubt~lly an effective way to lower risks:' minbi appreciation and excess domestic liq- October 8 that it would pay up to 2.5 billion uidity needs to be eased by investing over- yuan ($333.3 million) for a 9.9-percent Bigger and stronger seas, and besides, it will be a good bargain stake in UCBH Holding Inc., the Nasdaq- The two-way opening up of China's for Chinese banks to purchase international listed parent company of U.S.-hased United financial industry~lowing foreign banks financial assets against the backdrop of Commercial Bank. This was the first over- to invest in the Chinese market and encour- China's bullish stock markets and excess seas acquisition of the Beijing-based mid- aging domestic banks to seek shares of foreign exchange reserves:' sized lender as well as the first ever acquisi- overseas markets---is a trend of globaliza- By the end of the third quarter this year, tion of a U.S. bank by a Chinese bank. On lion, said Peng Xingyun, a researcher with China's foreign exchange reserves had November 8, China Merchants Bank got the the Financial Research Center under the swelled to $1.43 trillion, remaining the green light from the U.S. Federal Reserve Chinese Academy of Social Sciences. world's largest. China still faces severe liq- for opening a branch in New York--the first Nobody would have taken Peng's opin- uidity. The net injection of money was nod given by the financial security watch- ion seriously if he had expressed it several 195.8 billion yuan ($26.1 billion) for the dog to a Chinese bank for branch operations years ago when almost all China's commer- first three quarters of this year. a year-ore in U.S. territory after it implemented the cial banks suffered from non-performing year increase of 30.2 billion yuan ($4.0 bil- Foreign Bank Supervision Enhancement loans (NPLs) accumulated before the lion). As a solution, the government has Act of 1991 (FBSEA). 1990s. and extremely low capital adequacy founded the China Investment Corp. to soak In recent years, more Chinese banks rates which failed to offset any risk. up excess liquidity and at the same time including the Bank of China (BOC), China "'Huge changes have taken place in moderately released liquidity and increased Construction Bank (CCB) and China China's banking industry in recent years" qualified domestic institutional investor Development Bank (CDB) have concluded said Peng. China's -banking sector has taken (QDII) quotas to encourage the outflow of overse~s acquisitions deals. on a new look due to the fact that all major capital from China. "The domesdc market will remain the state-owned commercial banks have taken "Agairtst this "backdrop, Chinese banks major source of profits for Chin~',;e banes for pains to rid then'calves of historical burdens, could avoid risks in the exchange rate market quite a long period of time" said Gno lowering the rate of NPLs and preparing for •and help to ease the pressure on the govern- Tianyong, Director of the Research Center of through sharebolding reform over the ment from its huge forex reserves through

32 BEIJING REVIEW NOVEMBER 29, 2007 According to Luo, the major problem CASH ADVANCE: Egypt is the first African country to host China's ArM services, enabling customers to withdraw cash from ATM terminal machines with Chinese banks' overseas expansion is high bidding. "Even some large mature overseas asset.s acquisi- resources, optimize banks will make such mistakes;' said Luo, tion:' said Guo. "Chinese banks resource allocation, citing the famous deal of the Development Cai Esheng, Vice could avoid risks in increase its market shares, Bank of Singapore (DBS) acquiring Hong Chairman of the China lower its operational costs Kong's Dao Heng Bank in 2001. DBS Banking Regulatory the exchange rate and augment its profits. " merged Dao Heng at a price three times high- Commission (CBRC), market and help to Burgeoning markets er than its book value, and as a result a term made it explicit that the ease the pressure on are the targets of acquisi- "Singapore premium" was created to refer to CBRC would actively tion for many Chinese acquisitions at a high price in the internation- encourage and support the government from banks. "ICBC wilt panic- al financial market. CtaTendy, in other fields Chinese financial institu- its huge forex ularly keep an eye on the of merger and acquisition, the term "'China tions to seek overseas reserves through emerging markets premium" is prevailing. Whether it will be expansion. overseas assets because of the high frequently referred to in the banking acquisi- growth and development tion lexicon remains a question. Stepping stones to acquisition" potential there, " said Furthermore, lack of experience will success --.Guo Tianyong, Director Jiang Jianqing, ICBC's also bring Chinese banks great risks in "Cross-border merg- of the Research Center of the Board Chairman, explain- ers and acquisitions have cross-border acquisitions. Chinese Banking industry, the ing why they took an "Apart from economic risks, there are been a major method for a Central Universityof Finance interest in South Africa's majority of Chinese banks and Economics also risks related to politics and sovereign- Standard Bank. "Besides, ty," said Peng. '*Some Western countries, in to tackle overseas markets the banking sector in in recent years," said Yang. "The world's fear of China's rapid econonfic growth and these markets opens up faster to allow in globalization progress, will consolidate top 10 banks by market value last year all more and more cross-border acquisitions. " got bigger through merger and acquisition their political intentions and foment nation- China's banks have seldom gained a alist agitations in its people" activities.'" foothold in regions enjoying huge business High-quality services are the only key According to Xia Bin, Director of the potential such as South Asia, the Middle for Chinese banks to tackle overseas mar- Institute of Finance Research under the East, Africa and Latin America, Wang Development Research Center of the State Lijun, General Manager of BOC's Overseas kets. according to Cup. '°The biggest risk Council, overseas acquisition is the most Branch Department, pointed out. But for rests with whether they can adapt their convenient way for banks to implement China's commercial banks, these regions management style to the needs of overseas global expansion strategies as it helps to will offer remarkable opportunities for busi- operations;' said Cup. Cup also pointed out augment their capital size. "The size of a ness expansion and growth. that China's commercial banks, except for bank changes in direct proportion to cus- "The Asian market will become a main the Bank of China, all lack experience in tomer wast a~s well as the bank's market stage for Chinese banks to carry out their overseas operations and remain domestic share," said Xia. "An impressive size overseas expansion strategies in the coming bank in terms of their management, busi- endows a bank with a competitive edge, and few years," Cup said. "Compared with the ness concepts, and the competitiveness of acquisition also helps a bank to save their staff. •

Overseas Acquisitions by Chinese Banks world's largest lender's first overseas acquisition. The Indtm~trial and Commercial Bank of China (ICBC) China Development Bank (CDB) October 2007: The [CBC announced it would acquire a 20- July-August 200=/: The CDB signed a ptu~chase agreement percent stake in South Africa's Standard Bank for $5.5 billion to and a cooperation memorandum with Barclays Bank of England become its largest s "hareholder. on July 23, and paid $3 billion for a 3,l-percent stake in August 2007: The [CBC p,'fid $583 million for an 80-per- Barclays' existing share capital in August, cent stake in the Seng Heng Bank of Macao. China Construction Bank (CCB) December 2006: The ICBC acquired a controlling 9(l-per- August 2JNIt: The CCB agreed to buy out the Bank of cent stake of the Bank Halim of Indonesia. which marked the America's Hong Kong and Macao operations for $1.2 billion.

BEIJING REVIEW NOVEMBER29. 2.007 33 ;USINESI

the Ministry of Elecwicity and take over •,mhninistration functions of the three other energy-related ministries, which were turned Who'll Turn on the Lights? into three enterprises. However, the decision failed to win suplx~rt from the petroleum and coal ministriesand 20-~xJd tbrmer officials of China is faced with the tough task of the coal ministry appealed to the State Council to resume the ministry. reshuffling current overlaps in energy During the 1993 institutional refonn, administration, in order to create a cen- their wishes canae true when the Ministry of Energy disappeared and the Ministry of tralized ministry of energy Coal Industry and the Ministry of Electricity came hack. China's energy By LAN XINZHEN this government will expire in early 2(X]8, administration was again scattered and the coming March will reveal a better administration efficiency crippled. he draft of China's first encrgy law is chance for the energy ministry, otherwise, it In 1997. the Ministry of Electricity was currently being discus.~d by all relat- might have to wait five years for another turned into the State Grid Corp. of China ed deparmaents and enterprises. As opportunity. and the Ministry of Coal Industry was abol- T the discussions get deeper, there ,are ished. increasing voices c-'~lling i'br reestablishing Overlapping decision-making In 2(X)3, the NDRC wa,~ established and the Ministry of Energy. Before the Ministry of Energy was set an energy bureau was set up under it to take The law, aimed to standm'dize energy up in 1988, four /briner ministry-Ievel over the energy administratkm functions. supervision, covers all aspects of China's organs were reSl:Xmsible for energy admin- Seon, officials with the NDRC's energy cncrgy strategies and programs including istration, namely, the Ministry of Petroleum bureau became embarr-a,;sed by their role-- energy exploration, efficiency, security and Industry, the Ministry o[' Coal Industry. the the administrative level of their bureau was emergency response at,;well a,; international Ministry of Nuclear Industry and the lower than those ministry level or vice-min- cooperation. Ministry. of Electricity. istry level agencies and enterprises such as China set up the Ministry of Energy in During the institutional reform in 1988. Sinopec and the State Electricity Regulatory 1988 hut it was dismantled five years later the Ministry of Energy was set up to replace Commission. because its adn'tinistrative functkms over- lapped with other departments. Faced with increasing energy shortages, the govern- £ BOTTLENECK: The ment .set up an energy bureau under the energy issue has National Development and Reform become one of the Commission (NDRC} in March 2003. The major bottlenecks for bureau was crippled, however, because much of the adminiswativc power in the energy sector was scattered between differ- ent goverrmlent organs and major oil, power and coal companies including the State Electricity Regulatory Commission, the State Administration of Coalmine Safety, the Ministry of Water Resources, the Ministry of -I-I-I-I-I-I-I-I-I-~ndand Resources, China National Petroleum Corp., Sinopec Group and State Grid Corp. of China. Energy issues have become one of the major bottlenecks for China's economic development tbllowing its rapid m'owth in the last decade. It is imperative the govern- ment .vet up a unitbrm body tbr energy macro-control and supervision. Economists and energy experts have called for reestab- lishing the Ministry of Energy, especially after China suffered a widespread energy crunch in 2004. Many delegates have sub- mitred proposals to establish a ministry of energy to the National People's Congress (NPC). China's top legislature, in March of the past lWO years. Usually, creating a ministry as impor- tant a,; the energy ministry is only possible when the tdnure of the current government ends and the newly elected one carries out institutional reform. As the office term of

34 BEIJING REVIEW NOVEMBER 29, 2007 IUSlNE~

The related administration functions tire pauem made it nearly impossible to This is difficult in China, but it's good for have now been handled by a variety of min- plan energy strategies and failed to meet the the implementation of the state's develop- isa-ies, resulting in a lack of planning for demands for sustainable economic growth:" ment strategies as well as the long-term energy exploration, consumption, savings said Wang Weicheng, a member of the national interests, Zhao said. and reserves. NPC's Environmental and Resources China needs a minister of energy from As a solution, the State Energy Leading Protection Committee. Wang submitted for the policy-making team, said Li Puming, a Group was established directly under the a third time his proposal on setting up an researcher with the NDRC's policy research State Council to help manage the energy office. He argued that in dialogues China industry in 2005, with Premier Wen Jiabao has with other countries on energy issues, heading the group, and Ma Kai, Minister of one energy minister instead of a dozen min- the NDRC, acting a~ the office director. isters from all energy-related departments Yet, since the main role of the group is will definitely do the job much more effi- to organize and coordinate, the overlapping ciently. and scattered administrative pattern An International Energy Agency (IEA) remains unchanged. report said China's increasing consumption '"This scattered would make it the world's largest consumer administra- of energy by 2010. China's energy demand is projected to more than double from 2(~5 to 2030, the report said. As the second largest oil consumer after the United States, China has no authoritative energy adminis- wation organ, which made problems worse during recent global oil price hikes. Difficulties to overcome De~ite all the calls about the impor, tance of setting up a powerful, unified ener- gy ministry, mountains of difficulties are ahead for the government to overcome. & To set up a new ministry means a power and personnel reshuffle among all these COMPROMISE: Ma Kai, Minister of the NDRC, is also acting as the office direc- related energy organs. The biggest difficul- tor of the State Energy Leading Group, ty is how to make those already accustomed established in 2005, to coordinate to and satisfied with their posts and duties between different energy-related min- satisfy again with their new roles, and to istries break the balance of power and restore it in terms of interests. energy ministry to the NPC in March this The 1988 institutional reform during year. which the former energy ministry was set Strategic importance up involved only four ministries, and today The energy ministry should cover all it could involve a dozen. It remains related energy organs and be entrusted with unknown whether officials from the above- strong power to make decisions and work mentioned ministries will disagree once the out energy strategies, said Zhao Xiaohui, an new energy ministry takes over their admin- official with the Ministry of Information istration power. Industry. It was reported that there were four can- "We should set up a new energy min- didate plans circulating before the leading istry as soon as possible:' continued Zhan. group was formed in 2005. The idea of form- "Because China has already lagged behind ing an energy Icading group should win out in terms of working out energy policies and because the other three, to set up an energy strategies to meet huge domestic demand~ ministry, to form a state energy commission for energy and resources:' China has to and to promote the NDRC's energy httreau enhance its administrativeefficiency and set as a vice-ministry level agency, all contain up an energy ministry to facilitate asset the possibility of claiming energy adminis- restructuring and acquisition between enter- tration power from related ministries. prises, look for global cooperation for oil It still remains to be seen whether the and gas exploration and stipulate related energy ministry will acquire its due author- policies. "It's tar from enough to rely on the it), if it is eventually established. At present, government to play the coordinator," Zhao the Central Government gives priority to added. energy efficiency and environmentalprotec- Zhao believes a breakthrough would be tion while the local governments pursue possible only when the Central Government economic growth. The authority and. i~lage makes up its mind to overcome barriers of the energy ministry will be trimmed if it between different ministries which do their fails to coordinate between these govern- best to guard their own interests and power. ment organs. •

BEllING REVIEW NOVEMBER 29, 2~107 35 maneuver in China. Another potential impact is that the abnormal fluctuations of U.S. dollar, gold U.S. Rate Cut Causes and oil prices brought about by the Fed's moves may not only fail to stimulate U.S. economy, but also create more turmoil for the U.S. and global economy. Reverberations "If the U.S. economy really slows down or even recedes, its impact on China may be heavier than on the U.S. economy," Yi said. The United States is still the largest developed In his opinion, interest rate reduction can economy in the world, and at the same time, further push up assets prices and stimulate inflation. Thus, the problem will not only be China's major export destination. If the U.S. dollar depression and inflation driven by imports, but that the confidence of dollar- economy slows, China's economic development nominated debm holders could be shaken. leading to an underselling of U.S. treasury will be affected for the worse bonds. Because the Chinese Government holds a large number of U.S. treasury bonds, By LAN XINZHEN tion is the most direct impact of the interest the potential risks will be higher. reduction in the United States. According to However, the Chinese Government, n September 18. the U.S. Federal Hu, the sub-prime crisis has led the United unlike economists, hasn't shown much Reserve (Fed) reduced, for the first States into an interest reduction cycle, while worry "about the Fed's recent moves. ti me in the pm~t four years, the federal the inflation pressure has led China into an Zhou Xiaochuan, Governor of the O ftlnds rate by 50 basis points, down to interest raising cycle. Driven by Ix~thfactors, People's Bank of China (PBC), the country's 4.75 percent. A month later, the Fed reduced the U.S. dollar is more likely to further central bank, pointed out on September 18 the interest rate again by 25 basis points to depreciate. The reduction by the Fed has when the Fed made the first interest reduc- 4.5 percent. shortened the interest difference between the tion that the PBC didn't feel pressure from The two interest rate reductions in a peri- two countries, intensifying pressure for ren- changes in interest difference between China od of less than two months proved the dam- minbl appreciation. and the United States. This is because age of the sub-prime crisis to the U.S. econ- "It may cause too much hot money to China's central bank pays more attention to omy is greater than expected. Judging from swarm into China, aggravating the excess changes in economic activities such as the Fed's moves, the economic slowdown liquidity in China." Hu said. "Further expan- domestic consumption and investment, and led by the shrinking housing market is their sion of liquidity will also cause the further decides its monetary policies based on these major worry. accumulation of an asset bubble in China." changes. In other words, even though the Fed "'From the positive view, if the Fed's Yi Xianrong, a Chinese economist, ,'saidthe reduced the interest rate. becau~ of the rapid interest reduction can help alleviate the slow- two reductions in the United States and several increase of the consumer price index in the down and promote economic development interest rate rises in China will make the domestic market, to curb the overheated in the United States, it will benefit China's Chin~,e c~ipitalmarket more alluring. Inflow of domestic economy and inflation is still the external demand:' said Fred Hu, Managing more capital will further inoe.a.~ China's for- primary goal of the govemment's monetary Director of Goldman Sachs Asia. In Hu's eign exchange reserve, and curbing inflation policies. opinion, the Fed's interest rate reduction is will be a more arduous task for China's central tt's not difficult to judge from the actions obvious helpful to stabilizing market and bank. At the same ~ pressure on the ren- of the PBC that the central bank's monetary investor confidence. minbi to appreciate will intensify. policies pay c]o~ attention to changes of However, Hu said that the U.S. economy Yi pointed out that the Fed reduction will monetary polici~ of the Fed, but still set the is now in a very vulnerable and unstable have a huge impact on the Chinese ecouomy. goals of its monetary policies based on stage. If the situation was not improved soon. While China is continuously raising the inter- changes of domestic economy and invest- U.S. economic growth would be much lower est rate, the Fed's reduction will limit the ment. That is to say, although the Fed's than the potential growth rote of 2.5-3 per- space of that rise. Together with surging prices moves do influence the Chinese economy. cent, and recession might rear its ugly head. and higher as.set prices in the domestic market, these effects are not yet enough to change the Heavier pressure on renminbi apprecia- monetary policies will have little room to course of China's monetary policies. •

36 BEIJING REVIEW NOVEMBER 29. 20117 IUSINE. c Chinese EconomyRemains Stable The World Bank contends that China's growth will remain strong even in the face of a modest impact from the U.S. sub-prime crisis

By WANG dUN China's GDP would grow 11.4 percent for crisis on East Asia will be modest. the whole year of 2007 while the growth for Preliminary assessments suggest that direct he World Bank maintained its 2007 the fourth quarter would be 11.2 percent. exposures of East Asian financial institu- forecast for China s economic growth tions to su~prime risks have been relative- rate at 11.3 percent and predicted that Blows from sub-prime crisis limited ly limited, although risks may increase if Although concerns about the U,S. sub- T growth may slow only modestly in global economic instability and the tighten- prime crisis and increasing global oil prices 2008 to 10.8 percent. The bank attributed ing of credit markets intensifies and leads to are growing, the World Bank still believes the high gross domestic product (GDP) further declines in prices of various other China is well-placed to absorb the impact. growth mainly to the continued strong con- struca.zreA assets held by banks. According to the report, China is the largest tribution of external trade and investment- Record-high oil prices, meanwhile, driven recovery in domestic demand. overseas holder of U.S. mortgage-backed will test the resilience of the region's "China's macroeconomic prospects securities--around $260 billion--mosdy economies next year, the bank said. Amid generally remain good," the World Bank through its international reserve holdings surging global demand and supply tight- announced on November 15. According to and through holdings in commercial banks. ness, average crude oil price has risen from the six-month report, prospects remain But most of these holdings are backed by about $53 a barrel in January to more than buoyant domestically. With profit and cred- private firms in the United States such as $90 in early November. At $90 a barrel, it growth strong, investment is likely to con- Fannie Mac, the largest buyer and backer of the price of oil would be linked to an tinue to expand solidly. Consumption is home mortgages in the United States. income loss in the region of about 1.1 per- The main impact of the banking interna- expected to remain strong as well, although cent of GDP in 2008, according to the a high consumer price index and inflation tional turmoil is likelyto run via the real econ- bank's calculations. could constrain real consumption growth. omy. Although the world economy still The World Bank estimated in April that retains momentum, China will be affected Curbing trade surplus China's GDP would grow 9.6 percent and more than most other large emergingmarkets The external balance remairts China's raised its forecast to 10.4 percent in May. In by an economic slowdown in key markets. main macroeconomic issue, said the World September, it lifted the estimate once again This is mainly 'lxe.attse of the importance Bank's report. According to figures from to 11.3 percent during its China Quarterly exports have on China's economy. At the the General Administration of Customs of China, in October, China's trade surplus Update. same time, China is bc~cr placed than many According to figures released by the countries to deal with the impact. "A moder- reached a record high of $27.05 billion, Nadonal Bureau of Statistics. in the first ate global slowdown would mitigate pres- accelerating 13.5 percent year on year. The World Bank report notes that China three quarters, the country's GDP grew 11.5 sures of concern to pelicymakers on ove~l percent over a year ago. The quarterly GDP growth, inflation, and the trade surplus, while has become a major export market for the rest of East Asia but warns that economies growth rates were 11.1 percent, 11.9 percent China's strong macroeconomic position pro- and 11.5 percent, respectively, year on year. vides room to adjust the domestic policy need to remain focused on finding new On November 16, the State Information stance, if necessary:' the report said. ways to meet China's ever-changing and Center, an information research institution Moreover, the recent World Bank report highly competitive market. "The new chal- under the State Council, predicted that also said that the impact of the sub-prime lenge for China's East Asian neighbors will be in making the transition from supplying inputs for China's exports to also supplying its domestic market--something that might =r' r require significantly different research, pro- .t,-;...ar~-' ,,~76..b, duction, branding and marketing skills and channels," said Milan Brahmbhatt, the _r,) report's lead author. , .. : .~-~ ~'-- In the long term, the key challenge remains to rebaiance the economy. According to the World Bank, a package of policies to deal with these challenges would include real exchange rate appreciation, with, over time, more exchange rate flexibility; monetary policies that tighten liquidity and ,~.~.~i~- , .'~ ~ _ increase interest rates, a change in the com- position of fiscal spending, with more spend- ing on health and education: further financial sector reforms: structural policies that change it the relative attractiveness of manufacturing HIGH TURNOVER: China's consumers continue to shop. Here, an employee at a versus services: and removal of remaining Carrm'our store in Shanghai arranges goods obstacles to rural-ttrban migration. []

BEIJING REVIEW NOVEMBER 29, 2007 37 IUSINESS

stock market could tumble from the stricter controls, individual investors' interests will be protected in the long run. Inhaling fund helium Cooling Fund Fever Since the beginning of 2t207, enthusiasm for the purchase of new funds has surged. "Have you bought any funds?" or Many new funds were sold out on their first day of issuance. On April 10, a new fund "How much did your funds increase called China International Domestic Demand Dynanlic Stock Fund attracted 90 lately?" have become typical greetings billion yuan ($11.7 billion) on its first trading day while its upper limit of scale was 10 bil- rnnn fri p.n d,q lion yuan ($1.3 billion). Statistics from the CSRC show that by the end of October, 59 fund managemem companies were operating a total of 341 dif- tbrent funds. To~al ~ale of the funds was 2.06 trillion units, and they possessed 3.31 trillion yuan ($440 billion) of total market value, 2.8 and 3.8 times greater, respectively. compared to the start of this year. Third quarter reports from fund manage- ment companies revealed that the asset scale of 10 fund companies exceeded t(D billion yuan ($13.33 billion), such as Boshi Funds. China Asset Management and E Fund Management. Money managed by Boshi Funds and China Asset Management sur- passed 200 billion yuan ($26.67 billion) respectively. Compared to the second quar- ter, reports at that time showed only five fund management companies with assets over 100 HARD KNOCKS: More and more Chinese Investors have turned to fund management companies to manage their assets, believing that risks in the stock market are out of billion yuan. their control Zhang Jianhui. an analyst with Sinollnk Securities, said the swelling fund scale was By TAN WEI there were at the end of 2006. "Have you partly because of the increasing awareness bought any funds'?" or "'How much did your about• investment among ordinary Chin~e cit- lothing dealer Duan Tianyu owns a shop funds increase lately.'T' have become typical izens and that funds are becoming accepted as in Beijing. "lhree times a week he g~ greetings among friends. In just a short perk a way of wealth management. On the other back and forth to the bank to manage his od of time, funds have become one of the hand, some fund management companies C hank accounL In the la.~t two months. hottest topics for ordinary citizens. have manipulated their stock prices to pursue Duan ha~ developed a new habit before going Under such circumstances, the superviso- rapid scale expansion in a short period of time. to the banking the newspaper to see if ry department has stazt~ to strengthen con- It is understandable why fund managers any new funds have been issued. trois over the rapidly expanding funds. On did that, Zhang said. Mutual funds can earn "If there are new funds for sale, I go to November 4, the watchdog issued "Document more money by charging a management fee. the bank after 3 p.m., which is the official 44;' which requires all fund management In order to achieve this goal, fund managers closing time for purchasing funds. comvanies to stick to long-term and stable have tried hard to expand their scale. Otherwise, half the day will be lost waiting in operational plans, matching asset expansion Correcting the false the bank" explained Duan. He complained with the management capability, while strictly Document 44 has specified the regula- of the great number of people lining up to forbidding the blind pursuit of scale. tor's requirements for the fund markeL buy funds, forcing him to walt until the wave Three days after the document was For instance, the document forbids fund is over after three. "People are going crazy. issued, many fund management companies management companies or their sales agents They .~em to believe that once they buy a suspended their marketing efforts and from tempting investors to falsely believing fund, they will get rich overnight. They investors were not able to buy funds. that funds with low net value are cheaper. already have more than half the bank coun- "The individual investors are now turn- The fund management companies are also ters dedicated to them, but they still complain ing to professional investment institutions not allowed to create an atmosphere where about the speed" Duan said. instead of operating by themselves" said investors believe that the fund is hot and that Duan's experience is not uncommon. Jiang Haichuan. economics professor with if they don't buy it now, they will never be Since the second half of 2(X)6, the soaring net University of International Business and able to buy it. Meanwhile, fund managers value of mutual funds has lured many to join Economics. "It is a major advance for this must control the scale of their funds. the stock feast. The latest figures from the country." However, Jiang also pointed out Moreover, fund companies must warn Chinese Securities Regulatory Commission that funds are not as profitable as people investors of risks they might Pace if they bey (CSRC) showed that by the end of October, imagine and risks still exist. Jiang argued that funds, They must market suitable products the number of fund investors had reached an the issuance of Document 44 was intended to according to the situation of each individual astonishing 90 million, nine times more than cool down the fund buying fever. Though the invest¢~.

38 BELLING REVIEW NOVEMBER 29, 2007 |USINEI

Document 44 has made it clear that fund by China Asset Management on September 20. Liu was caught in a dilemma. "If I sell management companies must maintain a 5. The stock market has lacked sufficient the funds, I lose several thousand yuan,*' Liu long-term operational method and that blind fund support ever since. said. "If I don't, who knows how much they expansion is strictly forbidden in an effort to Zhang Yu, a fund analyst with China will continue to fall?" Liu said her frien6~ pro~ect the long term interest~ of investors. Jianyin Inv~tment Securities, said the regu- who had made money earlier were also com- latory department should not do the risk con- plaining of shrinking assets due to the Straightjacket on fund mania trol alone. The fund managers and fund gloomy stock market performance. Currently, assets managed by fund man- investors must readjust their mentality before Song Sanjiang, market director at agement comvanies account for over one third they invest. Fortune SGAM Fund Management, is opti- of the tracl-hle market value in the mainland "Since the beginning of 2(X-)6, tempted mistic about the future of market trends. stock market and have become the biggest fac- by the money-making effect of funds, Song believes mainland investors are becom- tor influencing the stock market. Doom~nt investors have been at ease when putting ing more and more mature. "Even when the 44, aimed at cooling fund enthusiasm, had also caused tile stock market to suffer. On November 5, the first Monday after On November 4, the Chinese Securities the document was issued, the mainland stock Regulatory Commission issued Document 44, market wimessed its biggest weekly slump in history. In one week (November 5-9), the which requires all fund management benchmark Shanghai Composite Index companies to stick to long-term and stable dropped 8 percenL making it the shar0est weekly index drop. In the fund markeL 27 operational plans, matching asset expansion funds fell under their paper value of one yuan. with management capability, while strictly for- Meanwhile, the net value of 214 out of 270 equity funds fell 4 Wa'cent in a single week. bidding the blind pursuit of scale "As long as there is new money being invested in the funds, the fund managers will their money into the hands of fund man- fund value dropped, they did not run to need to buy stocks," Zhang Jianhui said. "Yet agers:' Zhang said. "Nearly all of them made redeem the fund. Although the purchase under the pressure of redemption, the man- money:' However, when the profitability of value also declined, the fund companies still agers will be forced to sell:' funds suddenly dropped, the enthusiasm was have more money coming in than out." Since October 17, the mainland stock mar- deeply curtailed, said Zhang. Song said that although fund managers ket has wimessed a new round of adjusmmat. After seeing her friends and neighbors were unable to expand fund scale at will, this Many fund investors started to redeem funds to making money by investing in funds, Liu did not mean the money supply to the stock avoid ~ risks. However, to cope with tSe Linqing, a self-employed shop assistant, market would drop. The supervisory depart+ redexnpdon, managers have had to sell even withdrew hail of her life savings---30,000 ment's intention was to guide the fund indus- good-performing blue chips, which in turn yuan---and bought three funds. She bought try into a healthy development trend, not to caused even a rnom serious market decline. the funds on October 10, but by November call off fund management totally, Song said. Worse still, the issuance of new fuads 20, her assets had shrunk to no more than Since November 14, over 10 funds have has been restricted. Statistics show that 25,000 yuan a~ the Shanghai Composite resumed selling to investors and these new except for qualified domestic institutional Index dropped from the peak of 6,124 points purchases will inject an estimated 130 billion investors, the last fund that was issued was on October 16 to 5,293 points on November yuan ($17.57 billion) into the stock market. •

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BEllING REVIEW NOVEMBER 29. ~ 39 |USINESS

don, and human resources costs are on the rise, and we have been striving to cut MARKETWATCH costs through optimizing the supply chain:' the company said, "But we can- TO THE POINT: The Chinese central bank governor not absorb nll rising costs, so we have to raise the price:' claimed he was satisfied with the current mainland Affected by rising raw material interest rate, and some took this to mean that anoth- prices, the listed dairy companies suf- fered from stumbling stock prices. From er rate hike was not likely in the near future. November 12 to 16, Mengniu Dairy Following the price hikes of other foods, dairy compa- stock price plummeted I7.4 percent. Wang Dingmian, deputy head of the nies were also forced to raise milk prices due to high- Dairy Association of Guangdong er cost. Therefore, next month's consumer price Province, said after a period of rapid development, the two dairy giants- index will remain at a high level, as prices in the food Mengniu and Yili--will be confronted sector continue to rise. The shortage of refined oil on with a bottleneck. "It is hard to say when the risk will subside" the mainland put pressure on the major oil refineries, Wang previously said that some which vowed to increase the domestic supply despite dairy producers could not make money so they quit raising cows, leading to losses. China responded quickly to the World Bank shortage of milk. The Cenwal report and polluting companies are forbidden from Government promulgated measures to encourage farmers to keep cows. "'It being listed. takes one-and-a-half years to raise a cow, By LIU YUNYUN so we are not optimistic about the near future milk price;' said Wang. Interest Rate Satisfactory tral bank will have to correct the prices Safe at Home The Chinese central bank Governor of public transportation and facilities, China's biggest oil producers, known Zhou Xiaochuan, after five rounds of which means that inflationary pressure as Sinopec and PetroChina, planned to interest rate hikes, said for the first time will rise. boost output and imports to cope with this year on November 19 that he was In the future, Zhou said the central the oil shortage in the mainland market "satisfied with the current interest rate." bank will further raise the reserve as the international oil price soared People have grown accustomed to requirement ratio to absorb liquidity. above $I00 a barrel. expecting another interest rate hike each There is still much room to raise Mainland oil prices are set by the time after the monthly consumer price reserves that banks must keep with the government and are lower than the index (CPI) has been released since central bank. international level. Therefore, the two June. Between March and October, the The governor also stated that China major producers would rather export oil CPI growth rate hovered above 3 per- supported the idea of a strong dollar and than supply the domestic oil needs. Not cent--a recognized rate indicating infla- wanted to see dollar grow stronger. long ago, the National Development and tion, forcing the central bank to raise the Reform Commission ordered the two one-year benchmark interest rate from Expensive Milk companies to "strictly control export 2.52 percent to the current 3.87 percent. Food prices are slowly driving peo- quantity:' The central bank has encouraged ple crazy~e vegetable price surged Sinopec claimed that it had suspend- people to put more money into banks after the meat price hike; the edible oil ed refined oil exports to ease the oil rather than blindly investing in the stock price soared when the vegetable price pressure domestically. market in a bid to curb excessive liquidi- was still escalating. When the other Analysts say that Pe~hina and ty. prices are running high, the milk price is Sinopec take the leading role in domes- Zhou said, the central bank "will pay starting to catch up. dc oil supply and export, and it is their close attention to the future statistics" In the middle of November. Bright responsibility to first satisfy the domestic and the country needn't readjust the Dairy raised prices of some of its milk need rather than seeking profit by interest rate too frequently, but possibili- products by 2-3 percent, following a 10- exporting oil. ties exist for further rate hikes. percent price hike in August. In a video conference held during the Zhou said, "It is complicated to ana- China Business News quoted people emergency, Su Shulin, General Manager lyze the economic statistics" and the in the know who said the wholesale of Sinopec, stated that the subsidiary cenwal bank wilt correct the sudden price of some Mengniu Dairy products refineries have been ordered to refine oil chm]ge of traditional prices. He also will be raised 1,5-2 yuarv--about 20-25 to their largest capability, perfect the claimed that inflationary pressure next percent. quality of refined oil and stabilize the year should not be too heavy. China is Bright Dairy claimed this round of market supply domestically. transforming from a planned economy price hikes covered 30 percent of all However, if the two companies sell to a market economy, meaning the. cen- products. 'q'he milk, energy, transporta- oil in the mainland market, they will suf-

40 BEIJING REVIEW NOVEMBER 29, 2007 IUSlNE$

[er huge losses, as the sales price is lower than the cost. It is widely expected NUMBERS OF THE WEEK that the Central Government will com- pensate the two at the end of this year, like what it did in 2006. The oil firms halted imports of refined oil this September and October as domestic oil prices dropped lower than import prices. Quite a number ofoil filling stations across the country are suf- China, the world's most populous nation, will remain 95 percent fering from supply shortages. self-sufficient in grain in the future by expanding both output and No Plan to Buy reserves, according to the National Development and Reform Rumors have been circulating that Commission. The department said fodder grain and oil-bearing crops three Chinese banks would acquire a 17- such as soybeans are in short supply and future constraint is percent stake in the Standard Chartered unavoidable. Bank, but senior officials of the Chinese banks denied the report. Financial 77rues, a well-known British newspaper, reported earlier that Industrial and Commercial Bank of China (ICBC), Bank of China (BOC) and China Construction Bank (CCB) trillion yuan planned to buy a ! 7-pereent stake which is currently held by the Singaporean China Railway Group raised 3.3 trillion yuan ($445.95 billion) in its Temasek Holdings. yuan-den0minated A-share market initial public offering--the biggest China News Services cited an ICBC on record and tantamount to nearly one third of the GDP in the first official as saying that the bank had half of this year. "'never made such a contract with Temasek." Spokesmen for CCB and BOC said they had no knowledge of any levels of work and school absenteeism, Plan and is working to build a "resource- such planned acquisition. said a World Bank report jointly issued saving society" Temasek holds more than 17 percent with China's State Environmental To cope with pollution, the SEPA, of the shares of Standard Chartered. Protecdon Administration (SJ~PA). the top environmental watchdog, said Analysts said it was important for Do]'lar said it would be a cost-effec- major indusuial polluters will be barred Temasek to remain Standard Chartered's five move to reduce air pollution by from raising capital on the stock market. biggest shareholder and that the moving manufacturing plants out of city "Enterprises found guilty of environ- Singaporean firm had no reason to sell centers, replacing coal-burning stoves mental violations or failing to meet pol- its shares. with liquefied gas-fuelled heating sys- lutant discharge requirements will not be Chinese banes had made six over- terns, increasing state investment in pub- allowed to list their shares:' said Zhou seas acquisitions by the end of October, lic transport and limiting the use of pri- Shengxian, Minister of SEPA. with the total value exceeding $10.7 bil- vate cars. In addition, starting from 2009, .all lion. Despite the pollution challenges, the enterprises which discharge pollutants No More Pollution, Please World Bank has affimled China's com- must obtain environmental permits. The World Bank warned that air pol- mitment to "address the problem. China "Otherwise, they will not be allowed to lution is costing China 3.8 percent of its has put environment protection as its continue, or start, operations:' Zhou GDP, causing more diseases and claim- highest priority in its 1 l th Five-Year warned, • ing more lives. David Dollar, the World Bank coun- try director for China and Mongolia, said air pollution poses higher costs Writing Competition for than water pollution. The combined health and non-health cost of outdoor Foreign Students Kicks Off air and water l~)llution for China's The "China and I" themed essay writing and photographycompetition for for- economy stands at around $100 billion eign students in China, which is hosted by the Service Center for Studying a year, or about 5.8 percent of the coun- Abroad of the Ministry of Education and supported by Beijing Review magazine, try's GDP. will be launched soon. The competition is to demonstrate foreign students' bonds Air pollution, especially in large with ancient and modern China and the upcoming Olympic Games. cities, is leading to higher incidence of For more information please visit: www.studyinchina,net,¢nor lung disease, including cancer, re.spirato- www, bireview.com ry system problems and therefore higher

BEIJING REVIEW NOVEMBER 29, 2007 41 English culture posters ~-~ decorate your school 4~-~'~'. with a wonderful new worlili ~"

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BEIJING REVIEW NOVEMBER 29, 201]? 43 ;ULTURE Is the Writing on the Wall? The ancient script of the Shui ethnic minority teeters on the brink of extinction, amid efforts to save this intangible heritage

By ZAN JIFANG fish or other things found in nature, and Pan inmxluces, onIy a ~l~t group of ".~x)ut even symbolic animals such as dragons. In 5(X) sh,i .~'h, m~L`iterscan read the .v.:ript. an Zhtmgxi daily lamcntx her son's academic circles these characters arc seen These masters comnland a high status inability to gr~L`ip the language of a.s a livingexample of hieroglyphics, as they in the Shui ethnic group, and are highly their Shui ethnic group. "'My hus- are still used tcxlay. respected, by others. They play a very band and I speak Shui at home, p Shui shu ha.,; a double meaning---one is important role in the life of Shui pcc,ple. All hoping our .son can learn the lan- the writing ~ript of the Shui ethnic b~'uup, ~tnd important activities, such as house building. guage, but so far ",.although he understands the t.~ther is the booLs wriaen in Shui charac- weddings, funerals or ancestor worship, us, be cannot speak any of the words," said require the presence and assistance of shui Pan. Director of the National Institute of ters, which normally cover ~stronomy. calen- dars, geography, religion, folk customs and sh. masters. These masters can determine Sandu Shui Autonomous County in .south- the fight season, date and even time of a day west China's Gubthou Province. ethics. ',d m~st like an encyclopedia of the Shui. It is regardty_l as extreme disrespect to sit on. to hold such activities or ceremonies. Pun's 14-year..

ANCIENT TEXT: Shui shu is regarded as RECORDING HISTORY: Pan Zhongxl, bent on saving the centuries-old Shui script a living example of hieroglyphics

44 I;IEI,I[N(i. REVIEW NOVE.%IBFR 29, 2007 CULTUR pie have a basic knowledge of shui shu, and among teenagers aged from 7 to 16 years, no one can read Shui characters, December 17-19 December 9 Hiphop Dance from New Liu Suola 1997-2007 Review Concert "lt*s a serious problem," ,said Pan, '*as York Venue: ZhongshanMusic Hall most of these masters are now older than 60, Venue: Beijing Exhibition Tickets: and we are at a loss of how to replace them?' Theater 12000/10000/1080/880/680/480/280/180/ Stmi shu is the very ~s,sence of the Shui Tickets: 8801580/ 120/80/50 yuan culture, which, Pan ,,~aid, is why tile state is 380/180/80 yuan making eflbrts to re,~cue it. "If this script disap- December 14 pears we will have lost our history;' said Pan. December21-23 ~LJ~.J, ~ Fel Yuqing 2007 Vocal Concert, Beijing Dancing Shoes on I Venue: Great Hall of the People Keep the flame burning Christmas--Tap dance ~ ...... Tickets: 1580/12801980/680/ To find more materials to assist with the performance from 480/280/180/80/yuan study ofstudshu. Part and her co]l~agu~ often Chicago visit remote Shui villag~ to collect ,script Venue: Beijing Exhibitton February 14-16, 2008 ~ ~ Theater The Peony Pavilion-- books from villagers and shui shu masters. Tickets: 880/580/380/180/80 yuan the Kun Opera (kunqu) The masters have also made their con- veltsJon tribution to the preservation of the old lan- January 19-27, 2008 Venue: Beijing Exhibition guage and writing .scripts. Meng Xineng is Cats the Musical Theater one of the famous shui stzu masters in the Venue: Beijing Exhibition ~ Tickets: 580/380/280/200/ region who has offered his .services to the Theater 150/100/50 yuan local government to translate shui shu Tickets: VVIPNIP/ (~,TS.~= b~xoks into Mandarin. 880/680/480/280/180/80 December 17-18 This rescue work has had exciting results. yuan Original Music and Dance from Inner R~,;earchers have found more than 1,4(~ old December29 ~i Mongolia characters or signs, and some of them are sim- Qi Baoligao Morin Venue: Beljing Exhibition ilar to those on the ~ed potteries of Khuur Concert Theater China's Xia Dymtsty (2070 B.C.- 1600 B.C.), Venue: Beijing Exhibition Tickets: 880/580/380/180/80 yuan based on which exlx~S guess that the ances- Theater tors of the Shui people could v~n-y likely have Tickets: undetermined December23-24 originated in the Xia Dynasty. Tonight, Women Do Crosstalks There are also some contenL~ found to December14 --A new play by Lai Shengchuan Tsai Chin Old Songs Venue: Tianqiao Theater be closely related with ! Chhzg, or Book of Vocal Concert 2007, Tickets: 500(VIP)/300/200/100 yuan Changes, an ancient Chinese divination Beijlng manual and book of wisdom. Venue: Beijing Worker's December24 The county where Pan lives has now Stadium A Xin 2007 Christmas published a series of easy-to-learn texttmoks Tickets: 1680/1280/ Vocal Concert, Beljing al'x)utthe history, folk custort~s, language and 980/680/480/280/180 yuan Venue: Beijing Worker's wridng characters of the Shui, aiming to cxm- Stadium tinue the ethnic culture from childhexx]. November23-December Tickets: 1180/980/6801 "We intend to cultivate the Shui identity 480/280/180 yuan Prison Break by in our children. It is a natural duty of every Imperial Decree January 1-2, 2008 parent to make their children familiar with multi-media vaudeville Cross-talk of the New our own language and characters and not to Venue: Tianqiao Theater Year by Deyun Club tbrget our own ethnic culture" said Pan. Tickets: 880/680/480/ Venue: Beijing Exhibition The textb~oks are used in primary 380/280/180 yuan Theater .schools in local areas and shui shu ma~ters Tickets: VIP/680/580/ have been invited to give lectures at ~h(x~ls. December24 480/280t180 yuan Mo Hualun Christmas Another important work that Pan and Eve Concert December 22 her colleagues have undertaken is to record Venue: Great Hall of the Chris Lee 2007 Vocal Concert, geijlng the knowledge of shui shu masters. She .says People Venue: Beijing Workers Stadium the majority of the background to the Shui Tickets: 2008/12001800/ Tickets: undetermined is not found in books but in the memories of 500/300/100 yuan the masters. December6-16 All these efforts seem to be reaping div- January 21-22, 2008 Happy Fried Dough Twist 2008~ idends. More and more Shui people are now Moonlit Sea of Clouds--Joe Hisaishi no one is allowed to laugh~modern aware of the value of their language and concert comedy Venue: Poly Theater Venue: Haidian Theater scripts. Some young people have started to Tickets: 880(VIP)/580/380/280/180/80 Tickets: 880/680/4801380/280/ learn shui shu from masters, giving a ray of yuan 180180yuan hope. In June 2006, China listed shui shu as Book the tickets for the shows at one of the intangible cultural heritage of the www.piaowuton~com country, which ensure,,; that the old and mysterious scripts will be well protected Tel: 86-10-64068888, 400-818-3333 Piaowutong.corn and passed on to future generations. •

BEUING REVIEW NOVEMBER29, 2~t7 45 day" program on a monthly basis to promote the concept of green living through advocating Should the Car public transportation. Frequent vehicle restrictions have trig- gered debates among the public. Some civil- ians questioned the l~itimacy of this move, Free Day Initiative saying that it is improper to promote environ- mem-tiiendly concepts through the use of administrative power. They say them should be Be Compulsory? strict rules for the government to exercise its power so that people will feel they are tree to be socially responsible on their own terms. hen the Central With no subway system, traffic on more than 80 The c~ts for the car flee propo,"salin China Government decided to percent of artery roads and streets crawls 'along are substantially different from in We.stem cut down on pollution by at an average speed of 10-21 kph at rush hour. countries where car owners are totally exempt- calling for a Car Free Day The new Kanming initiative came about ed from additional financiM c(x~ts. If they in September, many after it was discovered that on the national Car choose not to'drive their cars. they don't have thoughtW it was a flash in the pan. But on Free Day, the major indice.~ of pollutants, to pay the fuel tax. But in China. owners of October 27, Kunming, in southwest China's including carbon-hydrogen compound and motorized vehicles pay for road maintenance Ytmnan Province, continued with the practice nitrogen dioxide, dropped 55,9 percent and on an annual basis. So, if Chinese drivers are when private cars were ,banned from city 45.1 percent in the city, respectively,as exhaust not "allowedto drive on car free days, for which streets, Now the last Saturday of every month fumes from motorized vehicles were reduced, they have paid road usage in advance, they will is officially "car free" in the city, apart from in addition to a 2.6-decibel decrease in noise definitely suffer financially. public transportation, police and emergency level with a 41-percent decrease in the number Considering the controversial legal basis vehicles, making Kunming the first city in of on-road vehicles. for such a decree, people asked whether con- China to adopt this initiative on a regular basis. Du Lingang, Deputy Secretary General of fining their cars at home has deprived them of Kunming's sneem are a traffic nightmare as the Kunming Municipal Govemnlent, said that their fights on free use of private possessions. the number of private cars grows each month. the local government has adopted the "~car free or if their road use charges would be refunded. Others complained of China's far legs developed public wans- portation infr,tsuucture in some areas. As a matter of facL more pressure has been in place after the car free policy was adopted in some cides, where public vehicle; were overloaded, or even close to collapse by the sudden increase of passengers, Take Kunming for example, According to It,~al tran~ portation authorities, public trans- port is capable of accommedaling only 23.5 percent of the total vol- ume of commuters, and city dwellers say there is insufficient public transport when they are not allowed to use their own cars. An overwhelming majority of citizens opt to take the m~t speedy, efficient and economical mode of transport, while the gov- ernment is keen to further pro- mote emission control policies to save energy resources and soothe transportation and environmental woes. The best solution would be that both sides can oompromise to meet their respective needs. One size doesn't fit all Shu Shengxiang (Hefei Evening News): Good city plan- ning and advanced management experience tail to function once they are transplanted to different locations. That is not becaum of

46 BEIJING REVIEW NOVEMBER 29, 2007 DRUI system deficiency, but wrong localization strat- unfair on them. The real car free living can be egy, meaning how to maintain the essence of by people's enhanced social and envi- m the system after it is moved is key. ronmental awareness, and their willingsupport Local governments are usually more inter- of public transpo~ ested in seeing instant effects of eased traffic R is too easy to solve all related problems BEIJlHGREVIEW congestion, namely saved fuel, reduced pollu- by banning private cars. Those in positions of tion and less traffic accidents on no car days, power who are too lazy to resolve the most instead of considering the opinions of affected complicated problems by the simplest method car owneTs. can only add fuel to the fire. It is a temporary solution for traffic and environment problems at best, and it cannot Car bans needed bring a dramatic change in mindsets on envi- Hong Qiaojun (,liangnan City Da//y): It ronmental awareness in the long tenn. is unfair to prevent car owners from using their To improve the efficiency of traffic plan- own possessions. However it is equa]ly unfair ning and utilization of public resources, a sim- for those who are not using cars to breathe the ple traffic control is far from enough. The polluted air from car exhausts. At ~, cente¢ of Shanghai's t~nspccIation hUbr We major value of this car free campaign is set to Critics, on one hand, complained of traffic jams, high emissions, and heavy pollution, and have the best iocatLon rot your £onnet'~k)n 'da Fdllr raise people's awareness in the protection of subw~ or highway, environment, and to exploit more potential thus they suggested the initiativeof this car free capacity of public transport. campaign. Yet when the government followed Yang Tao (Sanx/a Evening News): It is of through with the suggestion, it was accu.~l of impingingon individualrights. But the govern- no great help to soothe traffic jams and reduce ,tlrsllWle~= pollution levels by a dictated policy. People ment is only a guardian for the fights of a vast ,~ikl .%~> l~Lr~, I ~'n.'-"K,,..1%h,rll~Idr. ~'H I l"lh,l Ik--= L LKI, :'rlIM~-ll will naturally resort to more green traveling majority, rather than each individual. I¢l.[~h-.~l kd',.1~J ~4(N)K ) A~.:I.',4~..1 ~ I(,,L:~J ~]9 J,~ll.l r~.~" t4(R) K]414",1t,~ methods through changing their outlook. A if more people can be made aware of the policy may curb pollution and congestion each relationship between man and nature through day a month, but it cannot be effecdve all year banning cars, the point has been made. Xu Guangmu (Dahe Da//y): While we around. It is better to improve the efficiency of Grand Hyatt Shanghai public transportation. fully enjoy the comfort and convenience Private property and the fight to use it are brought by modem inventions like automo- Hilton Shanghai protected by the newly released Real Right biles, we are deeply troubled by its increasing- Hotel inter-Continental Pudong Law, and there is no exception to privately ly obvious side effects such as environmental Hua Ting Hotel pollution, traffic congestions and huge con- OWll@dcars. Jin Jiang Hotel Liao Dekai (YouthDa//y): The launch of sumption of energy resources. a car free program has largely displayed the But today, more and more people are get- Jin Jiang Tower government's determination in resolving traffic ring used to travelingby private cars, and there JC Mandarin Hotel and pollution issues that have long been a con- needs to be outside intervention to help them Marriott Hotel cem to the public, however, all that shodd be change their travelinghabits. Okura Garden Hotel Shanghai The car free initiativethat aims at fostering preconditioned on legitimacy. The national car RegaJ Shanghai East Asia free day, advocated by the Central a more healthy, enviromnent-friendly and civi- Government` is held only once a year. and this lized lifestyle, may encourage more people to Pudong Shangri-La Hotel frequency speaks volumes. choose alternative environment*agreeable Portman Ritz_-CaritonHotel Meanwhile, this event discloses Kunming ways of traveling. Regal International East Asia Hotel An Ping (Changfianglimes): Kunming's local government's lack of intelligencein gov- Sheraton Grand Tai Ping Yang emanee due to its "shortage of methods to deal local governmentis being accused of imposing with public emergencies. compulsory car bans on citizens. Actually, it is Holiday Inn Crowne Plaza Hotel Mao Jianguo (www.china.org.en): • e same as some other regions around the Hole{ Equatorial Shanghai Tramtx~ cona'o] is a possible way to improve world. For example, private cars are banned in Jianguo Hotel Shanghai downtown Paris. We need more time to test the envi~tal and traffic conditions. But the Ocean Hotel results are achieved at the expenses of the peo- efficiency of the new traffic policy before ple who own private cars, and it is absolutely drawing hasty conclusions. • Renaissance Yangtze Shanghai Hotel Shanghai Mansions Hotel Dear Readers, Shanghai Worldfield Convention Hotel "Forum" is a column that provides a space for varying perspectives on Shanghai International Convention Center contemporary Chinese society. In each issue, "Forum" will announce the topic for an upcoming issue. We invite you to submit personal viewpoints [.~ (in either English or Chinese). Shangri-La Hotel Shenzhen Upcoming Topic: What has caused the Chinese people's dilemma on the reform of their holiday system? Sunshine Hotel E.mail us at byao@ciDg, oro.cn Forum Hotel Shenzhen Please provide your name, telephone number, zip code and address along The Landmark Hotel Shenzhen with your comments. Mission Hills Golf Club Editor: Yao Bin

BEIJING REVIEW NOVEMBER29, 2007 47 !XPAT'S EYE

m around is not much trouble. On EXCELLENT SKILL: Chefs prepar(~ c~ to make Taiyuan's famous noodles weekends, ! get downtown by walking, always taking a minute or two to pause on the Fenhe Bridge. Here people feed the fish in the river below and fly exotic looking kites. It's always worth a stop. And public buses in Taiyuan do not resemble over-stuffed sar- dine cans. Ok, let's get something to eat. ,~ As Shanxi is famous for noodle ~,',' dishes, there are a great number .,,~. ~_ _,:-' of restaurants of this type. ~ . ~' "~ Though it's been eight years, I • '~' ~ ~" still have yet to complete the list .~\ ~.-:"K , / ~,~..~._ ~ of noodle possibilifes, i,m work -

~ " 1' .i"'~-= '~"~ I must mention Talyuan vine- [ ,: ....' gar! If you haven't lasted Taiyuan •.- ,/ ) ~ vinegar, your tongue has missed ~:~W~j// )' :'~~.'~ Ir ~ something. I will state flatly, " ~ hands down, nowhere el~ in the world, nay, the universe, could there be better vinegar than the The Real Taiyuan Taiyuan variety. Foreign foods, of the fast or regular speed, we've got as well. By ROBERT T. TUOHEY tion density: The 2.8 million people here Finding a McDonald's or KFC in Taiyuan can comfortably fit into the 7,000 square is about as tough as finding eggs in a aving lived in Taiyuan City, km of the city. This ratio, in combination Shanxi Province, for some eight- chicken coop. Downtown also has a few with the economic boost of the last few good coffee shops. H and-a-half years, I think it's not years, permits the residents here to enjoy unreasonable to call me a pretty fair judge As mentioned, shopping in Talyuan is a wide range of goods and services at of the place. In the time I've been here, quite reasonable. Supermarkets, clothing moderate price.s, and yet not deal with the stores, and media shops are all within i've seen everything from the size of the overwhelming, unmanageable aspects roads to the quality of the water easy reach. The Foreign Language found in mega-cities. improved. In fact, I can even remember Bookstore, while unable to compete with True, in major cities of modem China the big boys in Beijing, is nonetheless when there were no convenience stores, almost anything you want can be which now dot the city. Or, to use anoth- quite good. bought--but first you've got to go er example, when our Intemet connec- All these favorable conditions, psy- through the fiasco of finding it. Now, chologists tell us, affect people's outlook. tions were about as predictable as a maybe in Taiyuan that latest model MP3 baby's bottom----now it's all broadband. Maybe that's why the people of Taiyuan that simultaneously clips your toenails are so friendly. The pace of this city is not Yet, despite all these developments, and washes the dishes isn't available right for the foreigner (prey to guidebooks and breakneck, not hectic. Consequently, peo- this minute---but we will have it in a ple tend to behave with a bit more the Internet) or the Chinese citizen month or so. And not only do ! know (repeating run-of-the-mill non-wisdom), patience and more civility. exactly where to look, but it'll only take So, y~s, we do have a problem with the name Taiyuan conjures up just one us 20 minutes to get there. pollution in Taiyuan (although over the last dusty word: pollution. You see I want a city that is hard to get few years the severity has lessened), and Well, folks, I'm here to tell you that lost in; a city that makes you feel at home. no, you can't make as much money here as there's a whole lot more to Taiyuan than With one big thoroughfare, Yingze Dajie, you would in Beijing or Shanghai (but. just smoke. moving from e~st to west, the train station then again, prices are not so high here). To begin with. the city is nearly ideal is at the top and the old bus depot way Still, Taiyuan has .something about it that in terms of area-size in relation to popuia- down at the other end, you ahvays know has kept me here this long, and the way things are looking I'm probably going to The author is an American lecturer livingIn where you are. Taiyuan Naturally, with a city this size, getting be around for some time to come. a

48 BEUING REVIEW NOVEMBER 29. 2007 Beijing Global Trade Center {GTCI enjoys a privileged tocation on the soulheast of An2hen Bridge. which iS surrounded by business areas around

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