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VOL. XXV No. 7 July 2013 Rs. 10.00 Tourists are enjoying the beautiful scenery in front of China’s National Grand Theatre (National Centre for the Performing Arts) in Beijing on July 2, 2013. Chinese State Councilor and Defense Minister Chang Chinese State Councilor Yang Jiechi and Indian National Wanquan held a welcoming ceremony for visiting Indian Security Adviser Shivshankar Menon attended the 16th Defense Minister A.K. Antony before their talks in Beijing Round of China-India Special Representatives’ Talks on on July 5, 2013. Boundary Question in Beijing on June 28 and 29, 2013. Chinese Foreign Minister Wang Yi met with Indian Chinese Ambassador Wei Wei met with Siddaramaiah, National Security Adviser Shivshankar Menon in Beijing Chief Minister of Karnataka on June 28, 2013 during his on June 28, 2013. visit in Bangalore. The two sides exchanged views on how to strengthen bilateral cooperation. Chinese Ambassador to India Wei Wei met with Shekhar Chinese Ambassador Wei Wei visited the Shanghai Urban Gupta, Editor-in-Chief of The Indian Express at the Construction India Company in Chennai on July 1, 2013. residence on June 20, 2013. The two sides exchanged He encouraged the Chinese enterprises to participate views on Sino-Indian relations and other international more in the infrastructure development of India. and regional issues. CONTENTS I. CHINA-INDIA RELATIONS 1. Chinese Premier Meets with Indian Defense Minister 4 2. Chinese State Councilor Meets with Indian Defense Minister 4 3. Full Text of Joint Statement by Chinese and Indian Defense Ministers 5 4 Premier Li Keqiang Meets with National Security Adviser Shivshankar Menon of India 6 5. China, India Hold 16th Round of Border Talks 8 6. China, India to Find Solution to Border Disputes 8 7. Senior Chinese Leader Meets Indian Communist Party Delegation 9 8. Foreign Minister Wang Yi Meets with External Affairs Minister Salman Khurshid 10 9. Ambassador Wei Wei Forwards Chinese Donation to the Indian Red Cross Society 10 II. FIFTH ROUND OF CHINA-US STRATEGIC AND ECONOMIC DIALOGUE 1. Fifth Round of China-US Strategic and Economic Dialogues Opens 11 2. Fifth Round of China-US Strategic and Economic Dialogues Closed 14 3. US President Barack Obama Meets with Wang Yang and Yang Jiechi 17 4. An Opportunity to Strengthen US-China Ties 18 5. US, China can Forge a More Cooperative Relationship 20 6. China, US Hold Talks on Cyber Security 22 7. Key Dialogue One Step Further in Redefining China-US Ties 23 III. EXTERNAL AFFAIRS 1. Chinese, ROK Presidents Hold Talks, Pledge All-Round Cooperation 24 2. Xi, Park Continue to Discuss Major Issues 26 3. China, Russia Hold Joint Naval Drills 27 4. Backgrounder: China-Russia Joint Military Exercises since 2003 28 5. Chinese President Meets with Pakistani Prime Minister 29 6. Yang Wraps up Nepal Visit, Extending Support to Nepal’s Political Process 30 7. Chinese FM: Confrontation not Conducive to Solving South China Sea Issues 31 IV. DOMESTIC AFFAIRS 1. China’s Slowing GDP Growth within Gov’t Tolerance 32 2. Xi: Upcoming CPC Campaign a “Thorough Cleanup” of Undesirable Practices 34 3. China’s Shenzhou-10 Mission Successful 36 4. Reforming Rail Freight 38 5. Frank Facts on Frankenfoods 40 6. Spreading Seedlings 44 V. TIBET TODAY 1. Panchen Lama Tours Northwest China 47 2. World’s Largest Thangka Displayed in Tibet 48 3. First Arts and Crafts Masters Contest Held in Tibet 48 4. Tibet Medicine Distrbution Guild Founded in Lhasa 48 5. First Forum on Princess Wencheng Held in Lhasa 49 6. World’s Highest,Longest Plateau Railway Enrich Tibetans 49 7. Lhasa Facelift 51 8. A Vigorous Woodblock Carving Artisan Tsepel 54 9. Losang 57 Flights Between China and India 60 Reader’s Opinion 62 July 2013 NEWS FROM CHINA 3 China-India Relations I. CHINA-INDIA RELATIONS Chinese Premier Meets with Indian Defense Minister Chinese Premier Li Keqiang met with visiting Indian Defense Minister A.K. Antony in Beijing on July 5, 2013. Li said China and India are both important neighbours and partners, and the friendly neighbourhood as well as their joint push for common prosperity benefits not only the two nations, but also Asia and the world at large. China will enhance strategic t r u s t a n d b o o s t p r a c t i c a l cooperation with India to further promote bilateral ties, said the premier. Li said the cooperation between play an active role in cementing the strategic China and India, both countries with partnership between the two countries. populations exceeding 1 billion, will generate Recalling Li’s visit to India in May, Antony great opportunities and serve as a driving said the premier’s tour was a historic force for the development of the two milestone for bilateral ties. countries, South Asia and the whole world. The leaders of the two countries reached Both China and India have the political important consensus on advancing bilateral willingness to appropriately address border ties, expanding cooperation and maintaining issues through dialogues and consultations to peace in border areas, Antony said. jointly maintain peace, tranquility and The Indian side will make joint efforts with stability in border areas, Li said, “which will China to further advance bilateral ties in a help ensure the achievement of common comprehensive way, he added. development of the two countries.” Earlier on the same day, Antony also held Li said he hopes the two militaries will talks with his Chinese counterpart, Chang increase exchanges and boost cooperation to Wanquan. Chinese State Councilor Meets with Indian Defense Minister Chinese State Councilor Yang Jiechi met July 6, 2013. with Indian Defense Minister A.K. Antony on Yang said China and India, as the biggest 4 July 2013 NEWS FROM CHINA China-India Relations developing countries and emerging economies, have broad and important common interests while shouldering great responsibilities for world peace and development. China attaches great importance to developing relations with India and is ready to work with India for partnership of common development and prosperity, he said. He said the two neighbors should make joint efforts to maintain peace and stability in border areas. Antony expressed hopes of developing friendly relations with China and willingness to maintain peace and stability in border areas. Full Text of Joint Statement by Chinese and Indian Defense Ministers A joint statement by Chinese and Indian and cooperative partnership for peace and Defense Ministers was issued on July 6, prosperity. 2013. The full text is as follows: 3. Noting that peace and tranquility in their border areas was an important guarantor Joint Statement for the growth and development of bilateral cooperation, the Ministers emphasized the 1. The Indian Minister of Defense, Mr. A. importance of enhancing mutual trust and K. Antony, paid an official visit to China from understanding between the two militaries. 4-7 July, 2013 at the invitation of the Chinese They reviewed the working of agreements Defense Minister, Gen. Chang Wanquan. He and protocols dealing with the maintenance of held talks with his counterpart, Gen. Chang peace and tranquility and directed that it be Wanquan. The Indian Defense Minister also further strengthened. Appreciating that called on Chinese Prime Minister Li Keqiang, border defense cooperation would make a and had a meeting with State Councilor Yang significant contribution in that regard, they Jiechi. agreed on an early conclusion of negotiations 2. The two Defense Ministers held talks in for a proposed agreement on border defense a cordial and friendly atmosphere and had an cooperation between the two Governments. extensive exchange of views on a wide range 4. The Ministers discussed ongoing and of defense and security issues. They proposed bilateral exchanges and welcomed reaffirmed that defense exchanges were an the holding of the counter-terrorism bilateral important facet of the India-China strategic joint exercise between their armies in China in July 2013 NEWS FROM CHINA 5 China-India Relations 2013. They also agreed on the following 5) The Air Forces will carry out high level additional exchanges and visits between visits and expand their functional exchanges. India and China: They would focus on topics of mutual interest 1) Senior military commanders from including flight safety, aviation medicine and service headquarters, command/military training. region and field formations will exchange 6) Military training institutions will also visits regularly on a mutually agreed annual strengthen their exchanges at the faculty and schedule. student levels. 2) Visits of border troop delegations 7) To promote greater awareness and would be enhanced to promote dialogue and understanding among young officers of the strengthen trust and cooperation. armed forces, visits and exchanges will be 3) Border personnel meetings (BPM) will carried out annually. take place with greater frequency and 5. Defense Minister Antony invited his additional locations will be finalized after Chinese counterpart Gen. Chang Wanquan to discussion. visit India in 2014 as convenient. The Chinese 4) The Navies will increase ship visits, Defense Minister accepted the invitation. consider conducting joint maritime search 6 . M i n i s t e r A n t o n y e x p r e s s e d and rescue exercises and cooperate in appreciation for the warm hospitality counter-piracy operations. The call by PLA extended by the Minister of Defense of the Navy hospital ship ‘Peace Ark’ to Mumbai in People’s Republic of China to him and his August 2013 was welcomed. high level delegation during the visit. Premier Li Keqiang Meets with National Security Adviser Shivshankar Menon of India On June 28, 2013, Premier of the State Council Li Keqiang met at Diaoyutai State Guesthouse with N a t i o n a l S e c u r i t y A d v i s e r Shivshankar Menon of India, who is visiting China for the 16th Special Representatives’ Meeting for the China-India Boundary Question.