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Eview 6U MUONI FOREIGN FUNDS eview Vol. 30, No. 3 January 19, 1987 Combating Bourgeois Liberalization Disarmamenf: New Development 6U MUONI FOREIGN FUNDS A second-generation giant panda bred by artificiai insemination. The mother panda, Dandan, looking after her baby, LeIe, born September 8, 1986, in Beijing Zoo. U Shuzhong HIGHLIGHTS OF THE WEEK VOL. ^U. No. 3 JAN. 19, 1987 CONTENTS EVENTSARENDS 49 ()ITici;il Stresses the Four Piinctpies , C'oinpiiier Giani Eves Home Market Shanghai's Iiiditsfry:Fi"Cfitful Trends in 'M Memorial Meeting for Genera! P- 17 P. 6 . Hiiiing i Fabricated Letter Arottsls ; Concerrr • China Sticks to Socialism tiovertiment Changes University • Leaders • Two important pieces in Renmin Rihao (People's Daily) are 'A'ecklv Chronicle (Jan. .5-11) printed in full. They discuss the need to combat.the call for "complete Westernization." This is the central theme of the iNiERNATlONAL 10-14 current struggle against bourgeois liberalization (pp. 15-16). i:S\: Fcononiic Cirowth Slows Fang Lizhi, a Hefei. university vice-president, has been Down sharply criticized as typical of this capitalist trend. He was J.ipan: Defence Budget Stirs Con- dismissed from office alongside the president who was charged trcnersy with "seriously neglecting his duty" (p. 8). I'urkex; \cv. ^ear New Chal- Chen Junsheng, Secretary-General of the State Council, lenges expounds why China should follow the road of socialism (p. 4). Chad-l.ibyii: Hope of Unity Full text of this article, published in all major Chinese .•\pj'!cars in War • •' newspapers, will be printed in BR next week. .A.rgeiiitnva: Implement an In• dependent Foreign Policy \ Resolutely Combating Bourgeois Disarmament: Clianges in tlie New Context Liberalization 15 Compfete Westernization Ne- ' • The international struggle centring on disarmament today gates Socialism 16 has taken on some important new aspects because of the many Significant Advances for the Open changes that have taken place in the world in recent years, Policy 17 especially the changes in US and Soviet strategies. This article Facts and Figures: Development examines these new aspects and assesses their implications (p. Of Economic Sectors 21 24). Disarmament: New Aspects of an Old Issue 24 Foreign Firms: New Autonomy in Gu IVIu on the Use of Foreign Funds Hiring 26 BOOKS 27 • State Councillor Gu Mu in his interview with Beijing Review FROM THE CHINESE PRESS 28 29 elaborates the following points: as application of the open BUSINESS/TRADE 30-31 policy spreads from the coast to the hinterland, the number of CULTURE/SCIENCE 32-33 foreign-funded enterprises has increased to over 7,000; the LETTERS 34 special economic zones are developing an export-oriented COVER: fill Mu. economy; implementation of regulations encouraging foreign Ma Juntian investment has helped improve investment climate (p. 17). Genera! Editoriot Office teli 893860 SubscripHon prices (t year;: USA ; US$22.00 &ubli5*t**d ©very Moncioy by Eigiish Pepartinent Teli 1 -546, Austcalia A.$22.00 Canada Con.$21.00 Distributed by Cliina In'ernotianal Book New Zealand NZ.$30.00 24 fioi /^anzhuang R6cjd, Beijing TrodinB- CorpotoMon (GOQirSHUDIAH) ^he Peopte's Repobiic ai China P.O. Box 399, peijjng, Chtaa UK £12.00 m EVENTS/TRENDS V^g^'-IE-^SJ^M:-- Official Stresses the Four Principles senior official said on Jan. 12 are the main problems that should nation if it had not taken the A China will persist in the four occupy the minds of young socialist road. cardinal principles in carrying out people," Chen said. "Therefore, socialism is the reform and the policy of opening Those in favour of capitalism historically correct choice of the to the rest of the world. forget China's modern history and Chinese people," Chen said. In a long article in Renmin their views are at variance with Among the more than 100 Rihao (People's Daily), Chen China's actual conditions, Chen countries in the world today which Junsheng, secretary-general of the said. have capitalist systems, only about State Council. China's highest A poor economic foundation, a 20 can be considered affluent and governing body, said that reform large population and limited developed, while the rest are still and opening to the outside world agricultural land are the problems developing countries, Chen said. are China's established that China has been tackling. Although China's economic policies and the determination to Imperialism, feudalism and development now is not equal to carry out the four cardinal bureaucratic capitalism had made that of some developed countries, principles is also firm and China a poor and backward he said, there is no social unshakable. country. Though great progress polarization in China and, except The principles refer to adhere• has been made in economic con• in a few areas, the people across nce to the socialist road, to the struction since New China was the country are well-fed. people's democratic dictatorship, founded in 1949, China is still a If China gives up socialism, he to the leadership of the Commu• developing country. It is not easy said, the developed foreign nist Party of China, and to for a developing country to feed, capitalist economies will occupy Marxism-Leninism and Mao and provide adequate education China's markets and destroy Zedong Thought. and employment for a population China's national economy, and "Nowadays, a few people are of 1 bilhon, the official said, politically China will fall under arguing that socialism is inferior adding that "this is not the fault of their control and lose its to capitalism and nothing in China socialism." independence in foreign affairs. is as good as in the Western The article said it is not Thanks to socialism and an countries. Therefore, China must scientific to compare China, which economy with public ownership be Westernized," Chen said. has suffered so much and just playing the leading role, China Such an argument is nothing begun to prosper, with developed remains strong politically and new, because it was advocated capitalist countries. Such a militarily, stands independently in eight years ago, Chen said. But comparison can only make people the world and is respected by this time the advocates of this loose their national pride and people the world over. erroneous line have raised it under confidence in building China into In all, he said, China will neither the banner of "Speeding up a prosperous country. follow the capitalist road nor copy political restructuring" and Refuting the idea that if China the Soviet model nor return to the "fighting for democracy and takes the capitalist road it can be old track before 1979. The only freedom." economically developed, Chen way for China is socialism with China's senior leader Deng said the bureaucratic capitalism Chinese characteristics. Xiaoping said in 1979 that the then ruling Kuomintang once "We'll learn everything from although such people were few in practised led to the collapse of the other countries which is useful for number, their role should not be country. If New China had our construction," Chen said. underestimated. followed suit, it would not have "But the process of learning The article quoted Premier won popular support nor could it certain items of technology and Zhao Ziyang as saying recently have aroused the people's en• management from capitalist coun• that two questions must be made thusiasm to change the chaotic tries must not become worship of clear to young people: first, a situation left over by the capitalism, and lead to corruption developing country should not be Kuomintang. by capitalism and the loss of compared with developed capita• Morever, he said, the United national pride and confidence." list countries; second, the crucial States then supported Chiang It is understandable for the point is whether socialism or Kai-shek. China would not have people to be anxious for capitalism can save China. "These even survived as an independent accelerated construction and re- 4 BEIJING REVIEW. NO. 3 form and for more affluence, he \y will all come from the right to after-sales service and said. But two points must be made '[ corporation. training. This concentrated align• clear. First, the four moderniz• It will be able to build on the ment will spur development and ations programme needs hard great progress China achieved in husband scarce resources by work. Second, reform is a the computer industry during the avoiding costly duplication and complicated process which calls Sixth Five-Year Plan (1981-85). dispersal, because the successful for substantial efforts. The output value of the industry computer industry can only be Democracy is also a long-term increased at an average of 44 built where the necessary in• process, he said. Without democ• percent during this period. In tellectual resources and modern racy, there would be no socialism 1985, China produced more than industrial infrastructure is at or socialist modernization. But, 30,000 computers. In 1986, some hand. democracy and modernization 50,000 were produced. The industry demands the should progress step by step. Despite these advances, the people, the facilities and the The article concludes that to foundations of the computer institutions offered by a modern ensure stability and unity in industry are shaky and the city. Beijing is the birthplace of the China, the leadership role of the technology needs modernization. country's computer industry and Party must be strengthened. The scale of computer production is emerging as its future. It is Without such leadership, there needs to be further expanded and already home for 28,000 computer would be upheavals and social resources to be concentrated for professionals, one-third of the divisions throughout the country, expansion. Without these con• nation's total. The city, with its 77 he stressed. ditions, China's computers will colleges and institutions of higher remain uncompetitive in a cut• learning, almost one-fifth of the throat world market.
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