ONTO the STAGE Xi Jinping Elected China’S New Leader

FRETTING OVER SMART PHONES P.30 LENOVO AT PC PINNACLE P.36

VOL.55 NO.47 NOVEMBER 22, 2012 WWW.BJREVIEW.COM

ONTO THE STAGE Xi Jinping elected China’s new leader

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VOL.55 NO.47 NOVEMBER 22, 2012 INDEX

THE DESK BUSINESS 2 Entrusted With a Mission 18TH CPC CONGRESS THIS WEEK WORLD 34 A More Global Yuan Demand for the Chinese currency rises worldwide 36 On Top of the PC World Lenovo tops PC sales 38 Market Watch 3 18th CPC Congress A new lineup of CPC leaders CULTURE 28 Which Is the Way Out? Syrian opposition faces tough choices NATION 4 A Strong Mandate China’s leaders forge a plan for the future 42 Two Worlds Become One 9 New Guidelines Where art and science collide CPC Congress revises the Party Constitution Forum 30 The Antisocial Network 46 Opportunities Prevail Smart phones strain the social 10 Organization Chart of CPC Seizing the moment in a fabric Central Leadership changing world

12 Who’s Who in the EXPAT’S EYE Party Leadership 48 Journey to the West A traveler’s trip to Yunnan

COVER PHOTO: Xi Jinping, General Secretary of the CPC Central Committee, at his media debut after election on November 15 (WU ZHIYI)

Beijing Review (ISSN 1000-9140), is published weekly for US$64.00 per year by Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080, Periodical Postage Paid at South San Francisco, CA 94080. POSTMASTER: Send address changes to Beijing Review, Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 THE DESK

A News Weekly Magazine Entrusted With a Published Since 1958 iPad APP Mission http: //www.bjreview.com E-mail: [email protected] President & Editor in Chief: Wang Gangyi The 18th National Congress of the Communist Party of China (CPC), held Vice President: Qi Wengong from November 8 to 14, has drawn worldwide attention for a host of rea- Associate Editors in Chief: Li Jianguo, Huang Wei, sons: The CPC is the world’s largest political party, boasting more than 80 Wang Yanjuan, Zhou Jianxiong Assistant President: Li Zhenzhou million members; it has been the ruling party in China for 63 consecutive Assistant Editor in Chief: Wa Chunfang years, one of the longest in office; and under its leadership, China has made Executive Editor: Ding Zhitao extraordinary progress, especially since the late 1970s. More importantly, Assistant Executive Editors: Yao Bin, Zhang Zhiping the congress and its first plenary session have elected a new top echelon Editorial Administrators: Zhang Xiaoli, Shi Bosen of leaders—a seven-member standing committee of the Political Bureau Senior Consultant: Shao Haiming of the CPC Central Committee, which will lead China in the following Opinion Editor: Zan Jifang World Editor: Yan Wei decade. Nation Editor: Yao Bin The 18th CPC National Congress was held at a time when China Business Editors: Yu Shujun, Lan Xinzhen is faced with fast-changing and increasingly complex domestic and in- Culture Editor: Liu Yunyun Editorial Consultants: Joseph Halvorson, Evan Z. Hall, Elvis Anber ternational issues. While the country has been able to maintain a rapid Staff Reporters: Tang Yuankai, Ding Ying, Ding Wenlei, Wang Jun, Li Li, and prosperous development during the past 30 years or so, it has run up Yin Pumin, Liu Yu, Pan Xiaoqiao, Yuan Yuan, Wang Hairong, Liu Xinlian, against a series of daunting challenges in the course of its economic and Yu Yan, Yu Lintao, Zhou Xiaoyan, Bai Shi, Xu Tao, Deng Yaqing, Ji Jing Photo Editor: Wang Xiang social transition, such as a widening individual income gap, deteriorating Photographer: Wei Yao environmental conditions, rampant corruption, as well as security threats Art: Li Shigong from outside. With all these and other problems posing as roadblocks to the Art Director: Wang Yajuan Chief Designer: Cui Xiaodong nation’s future development, the ruling Party needs more than ever to come Designer: Zhao Boyu up with an entirely new set of effective strategies to cope with each and ev- Proofreading: Qin Wenli, Ma Xin ery one of them. Distribution Director: Pan Changqing In this respect, the just concluded CPC congress is rightly hailed as a Human Resources: Hou Jin International Cooperation: Zhang Yajie very important and successful event for the Party and the nation it leads. Legal Counsel: Yue Cheng Notably, it has unanimously decided to deepen the nation’s reforms by set- North America Bureau ting a number of grand goals in a wide spectrum of areas. These include Chief: Huang Wei transforming China’s economic growth model, doubling people’s income, Tel/Fax: 1-201-792-0334 pursuing ecological development, launching political reforms, and building E-mail: [email protected] up the nation’s cultural power. Given the major role that China now plays General Editorial Office Tel: 86-10-68996252 in the world economic and political arenas as a developing giant, many of Fax: 86-10-68326628 those strategies adopted at the congress may bear profound and long-lasting English Edition Tel: 86-10-68996259 global significance. Advertising Department Meeting the press at the close of the First Plenary Session of the 18th Tel: 86-10-68995813 CPC Central Committee, Xi Jinping, the new Party General Secretary, Fax: 86-10-68329398 E-mail: [email protected] highlighted the responsibilities of the newly formed CPC leadership and Distribution Department put forth priorities to fulfill the goals mapped out at the congress. His frank Tel: 86-10-68310644 and to-the-point remarks were well received, and viewed by some as a Fax: 86-10-68328738 preview of his mission. To live up to the earnest expectations of the whole E-mail: [email protected] Party and the Chinese people, Xi and his colleagues now must be deter- Published every Thursday by BEIJING REVIEW, 24 Baiwanzhuang Lu, mined and perseverant while bringing their courage, wisdom and vision Beijing 100037, China. into full play. 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2 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com 18TH CPC CONGRESS XU XUN

Leading Men Xi Jinping, Vice President, newly elected General Secretary of the Central Committee of the Communist Party of China (CPC) and Chairman of the CPC Central Military Commission, and Li Keqiang, Vice Premier and a member of the Standing Committee of the Political Bureau of the CPC Central Committee, wave to journalists at a press event debuting the CPC’s new top leaders in Beijing on November 15. “Under the new conditions, our Party faces many severe challenges, and there are also many pressing problems within the Party that need to be resolved—particularly corruption and being divorced from the people,” Xi said at the press event. “We must make every effort to solve these problems. The whole Party must stay on full alert.” Xi and Li are expected to become China’s president and premier respectively early next year. http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 3 18TH CPC CONGRESS

A Strong Mandate The CPC is poised to usher in a new era of China’s growth with leaders newly positioned at the helm By Yan Wei & Zan Jifang

4 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com NEW HELMSMEN: General Secretary of the CPC Central Committee Xi Jinping and the other newly elected members of the Standing Committee of the 18th CPC Central Committee Political Bureau Li Keqiang, Zhang Dejiang, Yu Zhengsheng, Liu Yunshan, Wang Qishan and Zhang Gaoli (left to right) attend a press event in Beijing on November 15

improved housing conditions, and a better environment. They want their children to have sound growth, have good jobs and lead a more enjoyable life,” he added. “To meet their desire for a happy life is our mission,” Xi stressed. The seven officials, all members of the Standing Committee of the CPC’s Political Bureau, compose the top leadership of China’s ruling party. Xi was also named chairman of the CPC Central Military Commission. At the National People’s Congress to be held next spring, some of them will be elected or appointed to high-ranking government posts with five-year terms, formally taking the reins of the world’s second largest economy. While Xi is expected to assume the presi- dency to succeed Hu Jintao, 57-year-old Vice Premier Li Keqiang, who is second in rank among the top seven, is widely assumed to replace Wen Jiabao as premier. With extensive experience at the grassroots level, Xi “understands the feelings of ordinary people and is closely in touch with them,” said Shi Yongming, an associate research fellow with the China Institute of International Studies. Also, he is good at handling international relations and capable of coping with complicated situations, Shi added. Xi started his career as Party secretary of a village before rising steadily through the ranks. As China’s vice president since 2008, he has assisted President Hu Jintao in state affairs including foreign relations. His widely watched trip to the United States in February helped bolster mutual understanding between China and the United States. He also showed a people-friendly image as he returned to

XU JINGXING an Iowa town that he visited 27 years ago as a local official from north China’s Hebei Province. Of the seven new senior officials, only Yu Zhengsheng, former Party Secretary of hinese Vice President Xi Jinping members of the Party, the 59-year-old CPC Shanghai, majored in technology at college. made his debut as the new leader of General Secretary told reporters with great The other six majored in social sciences such the ruling Communist Party of China confidence, “We are greatly encouraged by as economics, political science and history. (CPC) on November 15 with a strong both the trust all the comrades of the Party In the previous Political Bureau Standing Cmandate to continue the country’s eco- have placed in us and the great expectations Committee, only Xi and Li were students of nomic miracle, improve the lives of the 1.3 the people of all ethnic groups in China have liberal arts. The other seven held degrees in billion Chinese people and to tackle problems of us, and we are keenly aware that this is also areas such as hydraulic engineering, geology ranging from a growing income gap to cor- an important responsibility for us.” and geophysics. ruption. “Our people have an ardent love for life. “The new leaders are full of vigor,” Appearing before a press conference at They wish to have better education, more said Shen Beili, a delegate to the 18th CPC the Great Hall of the People in Beijing to- stable jobs, more income, greater social secu- National Congress from the International s s gether with six other newly elected leading rity, better medical services and healthcare, Department of the CPC Central Committee. http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 5 18TH CPC CONGRESS

Convened at a time when the world’s economic future is tied to China’s growth, the 18th CPC National Congress was not only a landmark event for China but also had global implications. Most importantly, the congress showed the CPC’s commitment to delivering prosperity and equity to all Chinese people. As it pushes for more balanced development with new leaders in place, China will continue to serve as a global economic powerhouse as well as a staunch guardian for international justice. Mindful of the opportunities and challenges lying ahead, the new leaders will put the policies agreed upon at the 18th CPC National Congress into practice, observers said. “The congress is significant,” said Philip Ogunmade, a journalist with THISDAY, the largest newspaper in Nigeria. “China is growing so much. Its development is a miracle. And it took up the opening-up [policy]. Like before, the opening up will continue under the new leadership.” Better lives Wan Yu, a delegate from north- east China’s Jilin Province, said she was excited and heartened after hearing the report delivered by Hu Jintao. Wan, principal of a school for orphans in the provincial capital Changchun, told Beijing Review she was glad that the report gave priority to improving people’s livelihoods and SMOOTH TRANSITION: Chinese enabling them to benefit substan- leaders Hu Jintao and Xi Jinping tially from China’s development. chat following the first meeting In her view, these messages are a of the presidium of the 18th CPC National Congress in Beijing on blessing to orphans, a vulnerable November 7 and often marginalized group. “Grand goals such as a moderately prosperous society and social harmony come down to raising people’s living standards,” “They will build on the achievements of their the 18th CPC Central Committee at its first said Xie Chuntao, a professor with the Party predecessors to scale new heights.” plenary session, held the day after the conclu- School of the CPC Central Committee. Hu Shen said she pins great hopes on these sion of the 18th CPC National Congress on Jintao’s report to the 18th CPC National leaders. “Under complicated and changing November 14. At the congress, more than Congress called for further improvements in international and domestic circumstances, 2,300 delegates approved a report by Hu crucial social services such as education, so- they will undertake arduous tasks as they lead Jintao, General Secretary of the 17th CPC cial security and healthcare. Chinese people in building a moderately pros- Central Committee, charting the course for With the bar having been raised, pres- perous society. But I’m confident they will China’s development in the years ahead. They sures on the new leadership are daunting, accomplish a lot,” she added. also cast votes to elect the 205-member 18th said Kerry Brown, Executive Director of the The leaders were elected by members of CPC Central Committee. China Studies Center of the University of

6 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com Sydney. “There are great challenges of social currently enjoy the standard of living as en- the CPC will spearhead a change in China’s cohesion, inequality and balance in the hard- visioned in a moderately prosperous society, development model. The outdated model ware and software of society,” Brown said. said Hu Angang, a renowned economist with under which China pursued GDP growth at “For the new leadership, these challenges will Tsinghua University and a delegate to the the cost of resource depletion, environmen- only grow in complexity as China becomes a 18th CPC National Congress. When the goal tal degradation and a widening income gap middle-income country.” is realized, 1.3 billion Chinese will join this will give way to a new model defined by The report also set the goal of doubling group of affluent people, marking an unprec- the Scientific Outlook on Development. The China’s 2010 GDP and the per-capita income edented improvement in the well-being of political theory, which was written into the of urban and rural residents by 2020. It was mankind, he said. CPC Constitution as one of the Party’s guid- the first time for the CPC to include per-capita “My core argument is that China’s suc- ing principles during the 18th CPC National income in China’s 2020 blueprint for a mod- cess is a success for the world and China’s Congress, advocates comprehensive, balanced erately prosperous society. Previous targets failure is a failure for the world,” he said, add- and sustainable development and a people- merely called for GDP growth. ing that China will not fail. first approach. The per-capita disposable income of In a report published in early November, Hu Jintao gave greater prominence to environmental protection by incorporating urban residents in China rose 8.4 percent to the Paris-based Organization for Economic ecological progress into the country’s overall 21,810 yuan ($3,498) in 2011 from a year Cooperation and Development said China development plan together with economic, earlier after deducting inflation, according to will overtake the United States by 2016 to the National Bureau of Statistics. Meanwhile, political, cultural and social progress. He become the world’s largest economy. the per-capita net income of rural residents coined the catchphrase, “Beautiful China,” in The International Monetary Fund also grew 11.4 percent year on year to 6,977 yuan his report to the 18th CPC National Congress. predicted in April that China’s economy will ($1,119). Bridging the wealth divide will surely be bigger than that of the United States by Despite the global economic slowdown, top the Chinese Government’s agenda. the CPC has promised to make this goal a 2016 in terms of purchasing power parity. Ogunmade, the Nigerian journalist who reality—a pledge that highlights its devotion Paradigm shift was in China to cover the CPC congress, to the well-being of Chinese people, Xie said. said he was amazed by the transformation Fewer than 2 billion people worldwide While placing emphasis on economic growth, of Shenzhen in south China’s Guangdong XIE HUANCHI

SUCCESSFUL CONCLUSION: Delegates to the 18th CPC National Congress walk out of the Great Hall of the People in Beijing on November 14 after the congress drew to a close s s http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 7 18TH CPC CONGRESS

Province from a fishing village to a modern forts to increase the representation and voice takeoff by participating in global competition metropolis in less than three decades after a of developing countries in international af- in accordance with the rules of the World visit there. But he expected China to grow fairs, while taking an active and responsible Trade Organization, he said. In light of its more evenly. role in global issues. per-capita GDP, China needs to focus on its “It should not be only in Guangdong “We will decide our position and policy own development and is therefore unable to or Beijing; I think all provinces should be on an issue on its own merits and work to up- threaten other countries. Moreover, traditional developed as well. We believe that the new hold fairness and justice,” the report said. In Chinese culture highly prizes harmony and leadership will take this move further, so keeping with this principle, China contributes peace. that when we come here five years from to the resolution of international hotspot is- China’s peaceful development, however, now, other provinces [will] have grown like sues such as the ongoing Syrian crisis with an hinges on the external environment. Peaceful de- Guangdong,” Ogunmade said. impartial stance, Chen said. velopment is possible on condition that China’s As it rebalances its economy, China will Shi of the China Institute of International core interests are protected, Chen said. deepen reforms politically to promote social Studies shared Chen’s opinion. He said parties “We are firm in our resolve to uphold harmony. Hu Jintao vowed in his report to concerned are prone to taking biased views and China’s sovereignty, security and develop- support the exercise of state power by the radical actions when dealing with hotly contested ment interests and will never yield to any people through people’s congresses, improve international issues, such as the Syrian crisis outside pressure,” Hu said in his report. the system of consultative democracy, expand and the Korean Peninsula nuclear issue. China In this sense, China’s military buildup and community-level democracy and deepen the therefore plays an indispensable role in ensuring strong measures to protect territorial integrity reform of the administrative system. fairness, preventing the escalation of conflicts are not contradictory to its goal of peaceful Under the leadership of the CPC, China and maintaining peace. development, Chen said. has advanced political reforms in an incre- China will not abandon the principle of Nevertheless, long-held tenets such as mental way over the past years, Xie said. For non-interference in other countries’ domestic “peaceful development,” “an independent instance, the National People’s Congress ad- affairs, Shi said. However, it will share its foreign policy of peace” and “a win-win strat- opted an amendment to the Electoral Law in views and experience with other countries egy of opening up” will remain guidelines for March 2010 granting equal representation in during bilateral exchanges. China’s diplomacy, Chen said. legislative bodies to rural and urban residents. “Peaceful development” has been a buzz- At the press conference following his Apart from elections, China emphasizes word in China’s diplomacy in the past decade. election, Xi also took an open, inclusive Proposed at the beginning of Hu’s first ten- stance. “Just as China needs to learn more democratic consultation: The ruling CPC regu- ure as general secretary of the CPC Central about the world, so does the world need to larly consults other political parties, and villagers Committee, the notion aims to address fears n now also have opportunities to freely air opinions learn more about China,” he said. about the “China threat,” said Xie. on village affairs to forge consensus, Xie said. These fears are unjustified primarily Administrative reforms, designed to get rid [email protected] because China has achieved an economic of approval procedures that have become obso-

lete in the market economy, will help prevent ZHEN WENHUA abuse of power and corruption, Xie added. Global vision While vowing to pursue sustainable development and strengthen CPC self-discipline, Hu Jintao set China’s diplomatic priorities in his report to the 18th CPC National Congress. The report shed light on some emerging trends on the world stage, said Chen Dongxiao, Vice President of the Shanghai Institutes for International Studies. For instance, it underlined the importance of cultural diversity in response to the misconception that the U.S. model would dominate the world, a view expounded by many Western scholars since the end of the Cold War. It recognized the emergence of an information society given the impact of new media on information dissemination and international relations. Against this backdrop, China will continue to cement bonds with other major powers, neighbors and fellow developing countries, THE WORLD’S ATTENTION: Journalists at the press event debuting the CPC’s new top leaders the report said. In particular, it will support ef-

8 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com New Guidelines The CPC makes major changes to its Constitution while preserving core theories and values By Zhao Zhikui

The author is a research fied the system, path and theories of socialism Party’s work and Party building. Overall, the fellow with the Chinese with Chinese characteristics. “The path of Party Constitution remains stable, and chang- Academy of Social Sciences socialism with Chinese characteristics is the es have been made only when necessary and way to reach the goal, the system of theories with Party consensus. of socialism with Chinese characteristics of- The current Party Constitution was first fers a guide to action, and the socialist system adopted at the 12th CPC National Congress in with Chinese characteristics provides the fun- September 1982. It has been revised at several damental guarantee. The three function as an subsequent congresses to adapt to new trends integral whole in the great practice of building and tasks. socialism with Chinese characteristics,” it The theory of building socialism with batch of amendments to the Constitution says. Chinese characteristics was enshrined in of the Communist Party of China (CPC) Greater strategic importance has been at- the Constitution at the 14th CPC National Awere deliberated and adopted at the Congress in 1992, Deng Xiaoping Theory tached to ecological progress in the amended 18th CPC National Congress, which concluded was added as a guiding theory for the CPC in Beijing on November 14. Constitutional Party Constitution. It states that the overall approach of the Party is to “promote eco- to stand next to Marxism-Leninism and Mao amendments formed a major part of the agenda Zedong Thought at the 15th CPC National for the congress. nomic, political, cultural social and ecological progress.” Previously, promoting ecological Congress in 1997, and the important theory Unlike the Constitution of the People’s of Three Represents was written in at the 16th Republic of China, the highest law of the nation, progress was not listed as an overall approach. This marks a historic progress in the Party’s CPC National Congress in November 2002. the CPC Constitution is a charter that guides The CPC adheres to intra-Party democ- Party organization and development. governance philosophy. The amended Party Constitution has put racy and values Party members’ collective Major changes forth new requirements on Party building. It wisdom in revising the Constitution. states that all Party members must focus on The 17th CPC Central Committee solic- One of the major amendments is to establish strengthening the Party’s governance capac- ited suggestions on the agenda for the 18th the Scientific Outlook on Development as a ity, advanced nature and purity. CPC National Congress in January. Many guiding theory of the Party. According to the amended Constitution, localities and departments had proposed The Scientific Outlook on Development an important mission of the CPC is to rally amending the Party Constitution, making it was first written into the Party Constitution and lead the people in completing the build- reflect new developments in the Party’s theo- during the 17th CPC National Congress in ing of a moderately prosperous society in all retical innovation and practice, promote the CPC’s work and strengthen its construction. 2007, yet it had not been elevated into a guid- respects, in advancing socialist moderniza- On September 4, the draft constitutional ing theory. tion and in achieving the great renewal of the The new guidance puts people first, amendments were distributed to some Party Chinese nation. Facing the new developments, calls for comprehensive, balanced and sus- members. Feedback from 4,015 members was the progress in the cause and the expectation tainable development and serves as a long- incorporated into the draft, which was then of the people, the Party should comprehen- term guiding principle the Party must adhere to. unanimously agreed upon at the Seventh Plenary sively carry out the great new undertaking of “The congress unanimously agreed that Session of the 17th CPC Central Committee Party building in an innovative reform-driven along with Marxism-Leninism, Mao Zedong that closed on November 4. The draft amend- manner. Thought, Deng Xiaoping Theory and the ments were submitted to the 18th CPC National important thought of Three Represents, the Keeping up with times Congress for deliberation, where deputies also Scientific Outlook on Development should advanced many pieces of constructive advice. n be made a part of the Party’ s guide for action The CPC’s Constitution outlines the Party’s in the Party Constitution,” a resolution of the core theories, policies and views, as well as its 18th CPC National Congress said. organization system and institutional mecha- [email protected] The amended Party Constitution has clari- nisms. It provides overarching guidance to the http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 9 18TH CPC CONGRESS Organization Chart of CPC Central Leadership

Central Committee (205 members, 171 alternate members)

National Congress

10 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.comhttp://www.bjreview.com General Secretary Xi Jinping

Standing Committee of the Political Bureau

Xi Jinping Li Keqiang Zhang Dejiang Yu Zhengsheng Liu Yunshan Wang Qishan Zhang Gaoli

Political Bureau Secretariat

25 7

Xi Jinping, Ma Kai, Wang Qishan, Wang Huning, Liu Yunshan, Liu Qibao, Zhao Leji, Liu Yunshan, Liu Yandong (female), Liu Qibao, Li Zhanshu, Du Qinglin, Zhao Hongzhu Xu Qiliang, Sun Chunlan (female), Sun Zhengcai, and Yang Jing (ethnic Mongolian) Li Keqiang, Li Jianguo, Li Yuanchao, Wang Yang, Zhang Chunxian, Zhang Gaoli, Zhang Dejiang, Fan Changlong, Meng Jianzhu, Zhao Leji, Hu Chunhua, Yu Zhengsheng, Li Zhanshu, Guo Jinlong and Han Zheng

Chairman: Xi Jinping Central Military Commission 11 Vice Chairmen: Fan Changlong, Xu Qiliang

Members: Chang Wanquan, Fang Fenghui, Zhang Yang, Zhao Keshi, Zhang Youxia, Wu Shengli, Ma Xiaotian and Wei Fenghe

Secretary: Central Commission for Discipline Inspection (130 members) Wang Qishan

Deputy Secretaries: Zhao Hongzhu, Huang Shuxian, Li Yufu, Du Jincai, Wu Yuliang, Zhang Jun, Chen Wenqing and Wang Wei

http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 11 18TH CPC CONGRESS Who’s Who in the Party Leadership Members of the Standing Committee of the Politic al Bureau of the 18th CPC Central Committee

Zhengding County Committee, Hebei Province Committee; First Commissar, Fujian 1983-85: Secretary, CPC Zhengding Provincial Antiaircraft Artillery Reserve County Committee, Hebei Province; concur- Division (1998-2002: Studied Marxist the- rently First Commissar and First Secretary, ory and ideological and political education Party Committee, Zhengding County Military in the In-service Postgraduate Class at the Affairs Department School of Humanities and Social Sciences 1985-88: Member, Standing Committee, at Tsinghua University, and awarded the CPC Xiamen Municipal Party Committee; Vice Mayor, Xiamen degree of Doctor of Laws) 1988-90: Secretary, CPC Ningde 2002-02: Deputy Secretary, CPC Prefectural Committee, Fujian Province; Zhejiang Provincial Committee; Acting and concurrently First Secretary, Party Governor, Zhejiang Province; Deputy Committee, Ningde Military Sub-region Director, National Defense Mobilization 1990-93: Secretary, CPC Fuzhou Committee, Nanjing Military Area Municipal Committee, Fujian Province; Command; Director, Zhejiang Provincial Chairman, Standing Committee, Fuzhou National Defense Mobilization Committee Municipal People’s Congress; and concur- 2002-03: Secretary, CPC Zhejiang rently First Secretary, Party Committee, Provincial Committee; Acting Governor, Fuzhou Military Sub-region Zhejiang Province; First Secretary, Party 1993-95: Member, Standing Committee, Committee, Zhejiang Provincial Military CPC Fujian Provincial Committee; Secretary, CPC Fuzhou Municipal Region; Deputy Director, National Defense Xi Jinping, ethnic Han from Mobilization Committee, Nanjing Military Fuping, Shaanxi Province, born in Committee; Chairman, Standing Committee, Fuzhou Municipal People’s Congress; Area Command; Director, Zhejiang June 1953. He joined the Communist Provincial National Defense Mobilization Party of China (CPC) in January First Secretary, Party Committee, Fuzhou Committee 1974 and graduated from the School Military Sub-region 1995-96: Deputy Secretary, CPC Fujian 2003-07: Secretary, CPC Zhejiang of Humanities and Social Sciences Provincial Committee; Secretary, CPC at Tsinghua University, majoring in Provincial Committee; Chairman, Standing Fuzhou Municipal Committee; Chairman, Committee, Zhejiang Provincial People’s Marxist theory and ideological and Standing Committee, Fuzhou Municipal political education, with a degree of Congress; First Secretary, Party Committee, People’s Congress; First Secretary, Party Zhejiang Provincial Military Region Doctor of Laws. Committee, Fuzhou Military Sub-region 2007-07: Secretary, CPC Shanghai General Secretary of the CPC 1996-99: Deputy Secretary, CPC Fujian Central Committee, Chairman of the Provincial Committee; First Commissar, Municipal Committee; First Secretary, Party CPC Central Military Commission, Fujian Provincial Antiaircraft Artillery Committee, Shanghai Garrison Command Vice President of the People’s Republic Reserve Division 2007-08: Member, Standing Committee, of China (PRC), Vice Chairman of the 1999-2000: Deputy Secretary, CPC Political Bureau; member, Secretariat of the PRC Central Military Commission, Fujian Provincial Committee; Acting CPC Central Committee; President, Party and President of the Central Party Governor, Fujian Province; Deputy Director, School of the CPC Central Committee School. National Defense Mobilization Committee, 2008-10: Member, Standing Committee, 1969-75: Educated youth and Party branch Nanjing Military Area Command; Director, Political Bureau; member, Secretariat of the secretary, Liangjiahe Brigade, Wen’anyi Fujian Provincial National Defense CPC Central Committee; Vice President, Commune, Yanchuan County, Shaanxi Mobilization Committee; First Commissar, PRC; President, Party School of the CPC Province Fujian Provincial Antiaircraft Artillery Central Committee 1975-79: Student of basic organic syn- Reserve Division 2010-12: Member, Standing Committee, thesis, Department of Chemical Engineering, 2000-02: Deputy Secretary, CPC Tsinghua University Fujian Provincial Committee; Governor, Political Bureau; member, Secretariat of the 1979-82: Secretary, General Office, State Fujian Province; Deputy Director, National CPC Central Committee; Vice President, Council and Central Military Commission Defense Mobilization Committee, Nanjing PRC; Vice Chairman, CPC and PRC (AD) Military Area Command; Director, Fujian Central Military Commission; President, 1982-83: Deputy Secretary, CPC Provincial National Defense Mobilization Party School of the CPC Central Committee

12 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com Members of the Standing Committee of the Politic al Bureau of the 18th CPC Central Committee

1974-76: Educated youth, Dongling 1998-99: Deputy Secretary, CPC Henan Brigade, Damiao Commune, Fengyang Provincial Committee; Acting Governor, County, Anhui Province Henan Province; and concurrently Director, 1976-78: Secretary, Party Branch, Yellow River Food Control Headquarters Damiao Brigade, Damiao Commune, 1999-2002: Deputy Secretary, CPC Fengyang County, Anhui Province Henan Provincial Committee; Governor, 1978-82: Student, Department of Law; Henan Province; and concurrently Director, and leader, Students’ Union of Peking Yellow River Food Control Headquarters University 2002-03: Secretary, CPC Henan 1982-83: Secretary, Committee of the Provincial Committee; Governor, Henan Communist Youth League (CYL), Peking Province; and concurrently Director, Yellow University; member, Standing Committee, River Food Control Headquarters CYL Central Committee 2003-04: Secretary, CPC Henan 1983-85: Director, School Department, Provincial Committee; Chairman, Standing CYL Central Committee; Secretary General, Committee, Henan Provincial People’s All-China Students’ Federation; alternate Congress member, Secretariat, CYL Central Committee 2004-05: Secretary, CPC Liaoning 1985-93: Member, Secretariat, CYL Provincial Committee Central Committee; Vice Chairman, All- 2005-07: Secretary, CPC Liaoning China Youth Federation (September- Provincial Committee; Chairman, Standing Li Keqiang, ethnic Han November 1991: Student of a further studies Committee, Liaoning Provincial People’s from Dingyuan, Anhui Province, born course for provincial and ministerial-level Congress in July 1955. He joined the CPC in May officials at the Party School of CPC Central 2007-08: Member, Standing Committee, 1976 and graduated from the School of Committee) Political Bureau, CPC Central Committee Economics at Peking University, major- 1993-98: First member, Secretariat, CYL 2008- Member, Standing Committee, ing in economics, with a degree of Doctor Central Committee; President, China Youth Political Bureau, CPC Central Committee; of Economics. University for Political Sciences (1988-94: Vice Premier; Deputy Secretary, Leading Member of the Standing Committee Studied economics in an in-service postgradu- Party Members’ Group of the State Council; of the Political Bureau of the CPC ate program at the School of Economics at Director, Three Gorges Project Construction Central Committee, Vice Premier of the Peking University, and awarded the degrees Committee and South-to-North Water State Council and Deputy Secretary of its of Master of Economics and Doctor of Diversion Construction Project Committee, Leading Party Members’ Group. Economics) State Council

1970-72: Administrative secretary, Publicity Zhang Dejiang, ethnic Group; and Secretary, CYL branch of the Han from Tai’an, Liaoning Province, Wangqing County Revolutionary Committee, born in November 1946. He joined Jilin Province the CPC in January 1971 and 1972-75: Student of Korean language, graduated from the Department of Department of Korean Language, Yanbian Economics, Kim Il Sung University in University the Democratic People’s Republic of 1975-78: Deputy Secretary, General Party Korea (DPRK). Branch, Department of the Korean Language; Member of the Standing Committee member, Standing Committee, Party Committee; of the Political Bureau of the CPC and Vice Chairman, Revolutionary Committee; Central Committee, Vice Premier of the Yanbian University State Council and member of its Leading 1978-80: Student, Department of Party Members’ Group and Secretary Economics; Secretary, Party Branch of Chinese of the CPC Chongqing Municipal Students at Kim Il Sung University, DPRK Committee. 1980-83: Member, Standing committee, 1968-70: Educated youth, Taiping Party Committee; Vice President of Yanbian Brigade, Luozigou Commune, Wangqing University s s County, Jilin Province 1983-85: Deputy Secretary, CPC Yanji http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 13 18TH CPC CONGRESS

Municipal Committee; member, Standing of the Ministry of Civil Affairs CPC Central Committee; Secretary, CPC Committee, CPC Yanbian Prefectural 1990-95: Deputy Secretary, CPC Jilin Guangdong Provincial Committee Committee; and concurrently Deputy Provincial Committee; Secretary, CPC 2007-08: Member, Political Bureau, Secretary, CPC Yanji Municipal Committee Yanbian Prefectural Committee CPC Central Committee in Jilin Province 1995-98: Secretary, CPC Jilin Provincial 2008-12: Member, Political Bureau, 1985-86: Deputy Secretary, CPC Committee; Chairman, Standing Committee, CPC Central Committee; Vice Premier Yanbian Prefectural Committee, Jilin Jilin Provincial People’s Congress and member, Leading Party Members’ Province 1998-2002: Secretary, CPC Zhejiang Group of the State Council; and concur- 1986-90: Vice Minister and Deputy Provincial Committee rently Secretary, CPC Chongqing Municipal Secretary, Leading Party Members’ Group 2002-07: Member, Political Bureau, Committee (March 2012)

1968-71: Technician, Zhangjiakou No. Qingdao Municipal People’s Government, 6 Radio Factory, Hebei Province Shandong Province 1971-75: Technician and leader, Qiaoxi 1992-94: Member, Standing Committee, Radio Factory, Zhangjiakou, Hebei Province CPC Shandong Provincial Committee; 1975-81: Technician and engineer, Secretary, CPC Qingdao Municipal Research Institute for Promotion and Committee; Mayor, Qingdao Municipal Application of Electronic Technology, People’s Government Fourth Ministry of Machine-Building 1994-97: Member, Standing Committee, Industry CPC Shandong Provincial Committee; 1981-82: Assistant chief engineer, Secretary, CPC Qingdao Municipal Research Institute for Promotion and Committee Application of Electronic Technology, 1997-98: Secretary, Leading Party Fourth Ministry of Machine-Building Members’ Group; and Vice Minister of the Industry Ministry of Construction 1982-84: Deputy Director, Research 1998-2001: Minister and Secretary, Institute for Promotion and Application Leading Party Members’ Group of the of Electronic Technology, Ministry of Electronics Industry; Chief, No.2 Systems Ministry of Construction Section, assistant chief engineer; and 2001-02: Secretary, CPC Hubei concurrently Director, Department of Provincial Committee Microcomputer Management of the 2002-03: Member, Political Bureau, CPC Administration for the Computer Industry; Central Committee; Secretary, CPC Hubei Yu Zhengsheng, eth- Deputy Director, Planning Department of Provincial Committee; Chairman, Standing nic Han from Shaoxing, Zhejiang the Ministry of the Electronics Industry Committee, Hubei Provincial People’s Province, born in April 1945. He 1984-85: Chief, Vice Chairman, Congress joined the CPC in November 1964 Executive Council, and member, Leading 2003-07: Member, Political Bureau, CPC and graduated from the Department Party Members’ Group of the China Welfare Central Committee; Secretary, CPC Hubei of Missile Engineering at the Harbin Fund for Disabled Persons (December 1984: Provincial Committee Military Engineering Institute, ma- Departmental-bureau level; January-March 2007-08: Member, Political Bureau, CPC joring in automatic control systems 1985: Acting General Manager, China Central Committee; Secretary, CPC Shanghai of ballistic missiles. Kanghua Industrial Co. Ltd.) Municipal Committee Member of the Standing 1985-87: Deputy Secretary, CPC Yantai 2008-11: Member, Political Bureau, CPC Committee of the Political Bureau Municipal Committee, Shandong Province Central Committee; Secretary, CPC Shanghai of the CPC Central Committee and 1987-89: Deputy Secretary, CPC Yantai Municipal Committee; First Executive Secretary of the CPC Shanghai Municipal Committee, Shandong Province; Deputy Director, Organizing Committee; Municipal Committee. Mayor, Yantai Municipal People’s and Director, Executive Committee; for 2010 1963-68: Student of automatic control Government, Shandong Province World Expo in Shanghai systems of ballistic missiles, Department 1989-92: Deputy Secretary, CPC 2011-12: Member, Political Bureau, CPC of Missile Engineering, Harbin Military Qingdao Municipal Committee, Shandong Central Committee; Secretary, CPC Shanghai Engineering Institute Province; Deputy Mayor and Mayor, Municipal Committee

14 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com Central Committee, member of its Committee Secretariat and head of its Publicity 1987-91: Member, Standing Committee Department. and Secretary General of the CPC Inner 1964-68: Student, Jining Teachers’ Mongolia Autonomous Regional Committee; College, Inner Mongolia Autonomous Region Secretary, Working Committee of the Organs 1968-69: Teacher, Bashi School, Tumd Directly under the CPC Inner Mongolia Left Banner; and worker, Sobugai Commune, Autonomous Regional Committee Tumd Right Banner, Inner Mongolia 1991-92: Member, Standing Committee, Autonomous Region CPC Inner Mongolia Autonomous Regional 1969-75: Administrative secretary, Committee; Secretary, CPC Chifeng Publicity Department, CPC Tumd Right Municipal Committee Banner Committee, Inner Mongolia 1992-93: Deputy Secretary, CPC Inner Autonomous Region Mongolia Autonomous Regional Committee; 1975-82: Reporter and deputy chief, and concurrently Secretary, CPC Chifeng Agricultural and Animal Husbandry Section; Municipal Committee (1989-92: Student member, Leading Party Members’ Group of Party and government administration, of Inner Mongolia Bureau of Xinhua News Correspondence School, Party School of the Agency (March-August 1981: Student, Party CPC Central Committee) School of the CPC Central Committee) 1982-84: Deputy Secretary of the CYL 1993-97: Deputy head, Publicity Inner Mongolia Autonomous Regional Department, CPC Central Committee Committee and its Leading Party Members’ 1997-2002: Deputy head, Publicity Liu Yunshan, ethnic Han Department, CPC Central Committee from Xinzhou, Shanxi Province, born Group 1984-86: Deputy head, Publicity (October 1997, ministerial level); head, in July 1947. He joined the CPC in General Office, Central Commission for April 1971, with a university education Department, CPC Inner Mongolia at the Party School of the CPC Central Autonomous Regional Committee Guiding Cultural and Ethical Progress Committee. 1986-87: Member, Standing Committee 2002-12: Member, Political Bureau; Member of the Standing Committee and head, Publicity Department of the CPC member, Secretariat; and head, Publicity of the Political Bureau of the CPC Inner Mongolia Autonomous Regional Department of the CPC Central Committee

born in July 1948. He joined the CPC 1982-86: Section chief and research fel- in February 1983 and graduated from low at the deputy-bureau level, Rural Policy the University Regular Class at the Research Office, Secretariat, CPC Central Department of History at Northwest Committee; and Deputy Director, Liaison University, China, majoring in history. Office, Rural Development Research Center, Member of the Standing Committee State Council of the Political Bureau of the CPC 1986-88: Research fellow at the bu- Central Committee, Secretary of the reau level, Rural Policy Research Office, Central Commission for Discipline Secretariat, CPC Central Committee; Inspection, Vice Premier of the State Director, Liaison Office, Rural Development Council and member of its Leading Research Center, State Council; Director, Party Members’ Group. National Office for Pilot Areas of Rural 1969-71: Educated youth, Fengzhuang Reform; Acting Director and Director, Commune, Yan’an County, Shaanxi Province Development Institute, Rural Development 1971-73: Worked at the Shaanxi Research Center, State Council Provincial Museum 1988-89: General Manager and Secretary, 1973-76: Student of history, Department Party Committee of China Rural Trust and of History, Northwest University, China Investment Corp. 1976-79: Worked at the Shaanxi 1989-93: Vice Governor and mem- Provincial Museum ber, Leading Party Members’ Group of 1979-82: Intern researcher, Institute of the People’s Construction Bank of China

Wang Qishan, ethnic Modern History, Chinese Academy of Social (September-November 1992: Student, Further s s Han from Tianzhen, Shanxi Province, Sciences Studies Class for Provincial- and Ministerial- http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 15 18TH CPC CONGRESS

level Cadres, Party School of the CPC Central 2000-02: Director and Secretary, Leading Leading Party Members’ Group of the Beijing Committee) Party Members’ Group of the Office for Organizing Committee for the Games of the 1993-94: Vice Governor and member, Economic Restructuring of the State Council XXIX Olympiad Leading Party Members’ Group of People’s 2002-03: Secretary, CPC Hainan 2007-08: Member, Political Bureau, CPC Bank of China Provincial Committee; Chairman, Standing Central Committee 1994-96: Governor and Secretary, Committee, Hainan Provincial People’s 2008-11: Member, Political Bureau, Leading Party Members’ Group of People’s Congress CPC Central Committee; Vice Premier and Construction Bank of China 2003-04: Deputy Secretary, CPC Beijing member, Leading Party Members’ Group 1996-97: Governor and Secretary, Municipal Committee; Acting Mayor, of the State Council; Chairman, Organizing Leading Party Members’ Group of China Beijing; Executive Chairman and Deputy Construction Bank Secretary, Leading Party Members’ Group Committee for the 2010 World Expo in 1997-98: Member, Standing Committee, of the Beijing Organizing Committee for the Shanghai CPC Guangdong Provincial Committee Games of the XXIX Olympiad 2011-12: Member, Political Bureau, CPC 1998-2000: Member, Standing Committee, 2004-07: Deputy Secretary, CPC Beijing Central Committee; Vice Premier and mem- CPC Guangdong Provincial Committee; Vice Municipal Committee; Mayor, Beijing; ber, Leading Party Members’ Group of the Governor, Guangdong Province Executive Chairman and Deputy Secretary, State Council

1970-77: Worker; Secretary, Office, Secretary, Leading Party Members’ Group of the Production Headquarters; Secretary, CYL Guangdong Provincial Planning Commission General Branch, Political Department; Deputy 1994-97: Member, Standing Committee, Secretary, CYL Committee of the Guangdong CPC Guangdong Provincial Committee; Deputy Maoming Petroleum Co. under the Ministry of Governor, Guangdong Province; head, Leading Petroleum Industry Group for Planning and Coordination Work of 1977-80: Secretary, CPC General Branch; the Pearl River Delta Economic Zone and political instructor of No.1 Workshop; 1997-98: Member, Standing Committee, and Deputy Secretary and Secretary, Party CPC Guangdong Provincial Committee; Deputy Committee; Refinery, Guangdong Maoming Governor, Guangdong Province; Secretary, CPC Petroleum Co. under the Ministry of the Petroleum Industry Shenzhen Municipal Committee 1980-84: Member, Standing Committee, 1998-2000: Deputy Secretary, CPC Party Committee; chief, Planning Section; Guangdong Provincial Committee; Secretary, and Deputy Manager of Maoming Petroleum CPC Shenzhen Municipal Committee Industrial Co. under the Ministry of the 2000-01: Deputy Secretary, CPC Petroleum Industry Guangdong Provincial Committee; Secretary, 1984-85: Deputy Secretary, CPC Maoming CPC Shenzhen Municipal Committee; Municipal Committee, Guangdong Province; Chairman, Standing Committee, Shenzhen Manager, Maoming Petroleum Industrial Co., Municipal People’s Congress China Petroleum Chemicals Corp. 2001-02: Deputy Secretary; CPC 1985-88: Director and Secretary, Leading Shandong Provincial Committee; Acting Zhang Gaoli, ethnic Han Party Members’ Group of the Guangdong Governor and Governor, Shandong Province from Jinjiang, Fujian Province, born Provincial Economic Commission 2002-03: Secretary, CPC Shandong in November 1946. He joined the CPC 1988-92: Deputy Governor, Guangdong Provincial Committee; Governor, Shandong in December 1973 and graduated Province (April-July 1990: Student, Further from the Department of Economics at Studies Class for Provincial- and Ministerial- Province Xiamen University, majoring in plan- level Cadres, Party School of the CPC Central 2003-07: Secretary, CPC Shandong ning and statistics. Committee) Provincial Committee; Chairman, Standing Member of the Standing Committee 1992-93: Deputy Governor, Guangdong Committee, Shandong Provincial People’s of the Political Bureau of the CPC Province; Director and Secretary, Leading Party Congress Central Committee and Secretary of the Members’ Group of the Guangdong Provincial 2007-07: Secretary, CPC Tianjin CPC Tianjin Municipal Committee. Planning Commission Municipal Committee 1965-70: Student of planning and sta- 1993-94: Member, Standing Committee, 2007-12: Member, Political Bureau, CPC tistics, Department of Economics, Xiamen CPC Guangdong Provincial Committee; Deputy Central Committee; Secretary, CPC Tianjin University Governor, Guangdong Province; Director; and Municipal Committee

16 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com Other Members of the Political Bureau Of the 18th CPC Central Committee

Ma Kai, eth- Liu Yandong, Force’s Fifth Aviation School, with a junior nic Han from ethnic Han from college education. Shanghai, born Nantong, Jiangsu Member of the Political Bureau of the CPC in June 1946. Province, born Central Committee, Vice Chairman of the CPC He joined the in November Central Military Commission and Member of Communist 1945. She joined the Central Military Commission of the People’s Party of China the CPC in July Republic of China (PRC), holding the rank of (CPC) in 1964 and studied general in the PLA Air Force. August 1965 political theory and gradu- at the School of ated from the Administration at Sun Department Jilin University, Chunlan, of Political with a degree of Doctor of Laws. ethnic Han Economics at Renmin University of China, Member of the Political Bureau of the from Raoyang majoring in political economics, with a de- CPC Central Committee, State Councilor and County, Hebei gree of Master of Economics. Member of the Leading Party Members’ Group Province, born Member of the Political Bureau of the of the State Council. in May 1950. CPC Central Committee, state councilor, She joined the CPC in May member of the State Council Leading Liu Qibao, Party Members’ Group and concurrently ethnic Han from 1973, with Secretary General of the State Council and Susong, Anhui a postgradu- Secretary of the Leading Party Members’ Province, born ate education Group Under the State Council, Secretary of in January from the Party School of the CPC Central the Working Committee of Organs Directly 1953. He joined Committee. Under the State Council and President of the the CPC in Member of the Political Bureau of the Chinese Academy of Governance. December 1971 CPC Central Committee, Secretary of the and gradu- CPC Fujian Provincial Committee and ated from Jilin Chairwoman of the Standing Committee of Wang University, the Fujian Provincial People’s Congress. Huning, majoring in na- ethnic Han tional economic planning and management, Sun from Laizhou, with a degree of Master of Economics. Zhengcai, Shandong Member of the Political Bureau and ethnic Han from Province, born Secretariat of the CPC Central Committee, Rongcheng, October 1955. Secretary of the CPC Sichuan Provincial Shandong He joined the Committee and Chairman of the Standing Province, born CPC in April Committee of Sichuan Provincial People’s in September 1984, studied Congress. 1963. He joined international the CPC in July politics at the Xu Qiliang, 1988 and gradu- Department of ethnic Han ated from China International Politics at Fudan University from Linqu, Agriculture and attained a degree of Master of Laws. Shandong University, majoring in agricultural science, Member of the Political Bureau of the Province, born with a degree of Doctor of Agricultural CPC Central Committee and Director of the in March 1950. Science. Policy Research Office of the CPC Central He joined the Member of the Political Bureau of Committee. CPC in July the CPC Central Committee, Secretary of 1967 and the CPC Jilin Provincial Committee and graduated from Chairman of the Standing Committee of Jilin the PLA Air Provincial People’s Congress. http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 17 18TH CPC CONGRESS

Li Jianguo, Zhang postgraduate education while in service, with a ethnic Han from Chunxian, degree of Master of Engineering. Juancheng, ethnic Han from Member of the Political Bureau of the Shandong Yuzhou, Henan CPC Central Committee, State Councilor, Province, born in Province, born Member of the State Council Leading Party April 1946. He in May 1953. He Members’ Group, Deputy Secretary of the joined the CPC joined the CPC Committee of Political and Legal Affairs un- in June 1971 and in November der the CPC Central Committee, Minister of graduated from 1973 and gradu- the Ministry of Public Security and Secretary the Department ated from the of its Party Committee, and Commissioner of Chinese Harbin Institute General of Police. Language and of Technology, Literature at Shandong University, majoring in majoring in management science and engineer- Chinese language and literature. ing, with a degree of Master of Management. Member of the Political Bureau of the Zhao Leji, Member of the Political Bureau of the ethnic Han from CPC Central Committee, Vice Chairman and CPC Central Committee, Secretary of the Xi’an, Shaanxi concurrently Secretary General of the Standing CPC Xinjiang Uygur Autonomous Regional Province, born Committee of the 11th National People’s Committee, and the First Political Commissar of in March 1957. Congress and Member of its Leading Party the Xinjiang Production and Construction Corps. He joined the Members’ Group. CPC in July 1975 and received a Li Yuanchao, Fan postgraduate ethnic Han from Changlong, education at the Lianshui, Jiangsu ethnic Han Central Party Province, born from Dandong, School. in November Liaoning Member of the Political Bureau and the 1950. He joined Province, born Secretariat of the CPC Central Committee, the CPC in in May 1947. Secretary of the CPC Shaanxi Provincial March 1978 and He joined Committee, and Chairman of the Standing received post- the CPC in Committee of the Shaanxi Provincial People’s graduate training September 1969 Congress. at the Central and received a Party School, university edu- with a degree of Doctor of Laws. cation at the Central Party School. Member of the Political Bureau and head Member of the Political Bureau of the of the Organization Department of the CPC CPC Central Committee and Vice Chairman Hu Chunhua, ethnic Han Central Committee. of the CPC Central Military Commission, from Wufeng, holding the rank of general. Wang Yang, Hubei Province, ethnic Han from born in April Suzhou, Anhui 1963. He joined Province, born in Meng the CPC in March 1955. He Jianzhu, eth- April 1983 and joined the CPC nic Han from graduated from in August 1975 Wuxian County, the Department and received a Jiangsu Province, of Chinese university educa- born in July Language and tion at the Central 1947. He joined Literature at Peking University. Party School, the CPC in June Member of the Political Bureau of with a degree of 1971, gradu- the CPC Central Committee, Secretary Master of Engineering. ated from the of the CPC Inner Mongolia Autonomous Member of the Political Bureau of the Shanghai Institute Regional Committee, and Chairman of the CPC Central Committee and Secretary of the of Machinery, Standing Committee of the Inner Mongolia CPC Guangdong Provincial Committee. majoring in systems engineering and received a Autonomous Regional People’s Congress.

18 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com Li Zhanshu, Guo Jinlong, Han Zheng, ethnic Han from ethnic Han ethnic Han from Pingshan, Hebei from Nanjing, Cixi, Zhejiang Province, born in Jiangsu Province, born in August 1950. He Province, born April 1954. He joined the CPC in July 1947. joined the CPC in April 1975 and He joined the in May 1979 graduated from CPC in April and graduated the Department 1979 and from Institute of Political graduated from of International Education, Department Studies at East Evening College, of Physics China Normal Hebei Normal University, with an executive at Nanjing University, majoring in international relations MBA degree. University, majoring in acoustics. and world economy, with a degree of Master of Member of the Political Bureau of the CPC Member of the Political Bureau of the Economics. Central Committee, member of its Secretariat, CPC Central Committee, and Secretary of Member of the Political Bureau of the CPC Director of its General Office, and Secretary of the CPC Beijing Municipal Committee. Central Committee, deputy secretary of the CPC the Working Committee of the Organs Directly Shanghai Municipal Committee, and mayor of Under the CPC Central Committee. Shanghai.

Other Members of the Secretariat of the 18th CPC Central Committee

Du Qinglin, Zhao Yang ethnic Han from Hongzhu, Jing, ethnic Panshi, Jilin ethnic Han from Mongolian Province, born Ningcheng, from Jungar in November Inner Mongolia Banner, Inner 1946. He joined Autonomous Mongolia, born the CPC in Region, born in in December March 1966 and July 1947. He 1953. He joined graduated from joined the CPC the CPC in the School of in August 1969 August 1976 Economics and and received a and received a Management at college educa- postgraduate Jilin University, majoring in national econom- tion at the Party School of the CPC Central education at the Party School of the CPC ic planning and management, with a degree of Committee. Central Committee. Master of Economics. Member of the Secretariat of the CPC Member of the Secretariat of the CPC Member of the Secretariat of the CPC Central Committee, Deputy Secretary of the Central Committee, Deputy head of the Central Committee, and Vice Chairman and Central Commission for Discipline Inspection, United Front Work Department of the CPC member of Leading Party Members’ Group of Secretary of the CPC Zhejiang Provincial Central Committee, and Minister in charge the 11th National Committee of the Chinese Committee, and Chairman of the Standing of the State Ethnic Affairs Commission and People’s Political Consultative Conference. Committee of the Zhejiang Provincial Secretary of its Leading Party Members’ People’s Congress. Group.

http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 19 THIS WEEK SOCIETY

pension system. affordable homes by 2015 in a bid to make Pension Insurance Coverage Premier Wen Jiabao pledged in October housing accessible for low-income families. China’s urban and rural pension insurance to increase government spending on the social “We haven’t encountered major financial systems covered 459 million people at the end pension insurance system to address the prob- problems concerning the project,” Jiang said. of October, the Ministry of Human Resources lem of the country’s surging aging population. The minister also said the government and Social Security said on November 13. will see to it that low-income housing is fairly As many as 125 million elderly people re- Affordable Houses distributed. ceive pensions every month, the ministry said in a statement posted on its website. China will start the construction of around Fewer Accidental Deaths Over the past few years, China has taken 6 million low-income housing units next significant steps to improve the country’s pen- year, Minister of Housing and Urban- The number of accident-related deaths in China sion and social security system. The country Rural Development Jiang Weixin said on over the first 10 months dropped 13.7 percent kicked off a rural pension pilot program in November 12. year on year, the country’s work safety watch- 2009 and announced a pilot program offering China plans to build more than 7 million dog said on November 11. social pension insurance for urban residents in government-subsidized units this year as part Meanwhile, the number of accidents 2011 to expand the coverage of the country’s of its five-year plan to offer 36 million such declined 14.1 percent from the same period last year, data released on the website of the

ZHANG CHAOXIANG State Administration of Work Safety (SAWS) showed. MID-AIR SHOW A member of Breitling Wingwalkers, a famous European aerobatic team, performs during According to information unveiled earlier the Ninth China International Aviation and Aerospace by the SAWS, 210,797 accidents occurred in Exhibition, which opened in Zhuhai, Guangdong China during the January-September period, Province, on November 13 down 21.3 percent year on year. The accidents altogether claimed 45,409 lives, representing a 15.3-percent year-on- year drop, the SAWS said. In its efforts to improve work safety, the SAWS planned to shut down 625 small coal mines that pose safety risks by the end of the year. ZHANG MING HUANG XUHU

ART ON A STRING Students from the Shanghai Theatre Academy perform with marionettes at a symposium on puppeteer training in Shanghai on November 13

NOT SINGLE ANYMORE Sixteen couples wed in Hezhou, south China’s Guangxi Zhuang Autonomous Region, on November 11, dubbed Singles’ Day in the country because the date is made up entirely of the number one

20 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com JIANG HONGJING TEDDY GIRLS “They will stay in space for 15 days, A Teddy Bear Museum opens operating both automated and manual space in Chengdu, dockings with the target orbiter Tiangong-1, southwest China’s conducting scientific experiments in the lab Sichuan Province, module and giving science lectures to specta- on November 11, displaying more tors on Earth,” Niu said. than 1,000 stuffed In the coming mission, Shenzhou-10 bears will offer ferrying services of personnel and supplies for Tiangong-1, further testing the astronauts’ ability to work and live in space, as well as the functions of the lab module, he said. Bible Publication China has become the biggest Bible publisher in the world after printing its 100 millionth, according to the country’s only authorized Bible-printing company. Community Corrections The survey team will trace the porpoises On November 8, Qiu Zhonghui, Chairman using a sonar system along the middle and of the Board of Amity Printing Co. Ltd. in Around 1.16 million convicts in China have lower reaches of the river, collecting data on Nanjing, east China’s Jiangsu Province, said served their sentences in the community the species’ population, which will assist in that the 100 millionth copy was printed in July. instead of in prison since 2003 as part of the making future protection policies. About 60 million holy books, including country’s efforts to prepare criminals for a re- The initial results of the survey will be nine ethnic minority language editions, have turn to society, Vice Minister of Justice Zhao published in December. been printed by Amity Printing. The company Dacheng said on November 13. has provided 40 million copies in over 90 lan- Of those convicts, more than 650,000 Space Flight guages to around 70 countries and regions in have finished their community service, Zhao China plans to launch another manned the world, Qiu said. said. Amity Printing is a joint venture between He dismissed concerns over threats to spacecraft, Shenzhou-10, in early June 2013, a leading space program official said on China’s Amity Foundation and the United public safety, saying only 0.2 percent of con- Bible Societies. The company has been pub- victs committed crimes again while serving in November 10. Like in the Shenzhou-9 spacecraft mis- lishing the Bible since 1988. the community, an extraordinarily low level China has more than 16 million Christians, compared to other countries. sion in June, the crew might include two male astronauts and a female, to enter the 55,000 churches or gathering venues, 36,000 China began its program of community missionaries and 100,000 church volunteers. service in 2003 in Beijing, Shanghai and four Tiangong-1 space lab module, according to Niu Hongguang, Deputy Commander in In addition, it has 18 divinity and Bible schools other areas, and extended the program to the with 1,800 seminarians. rest of the country in 2009. Chief of China’s Manned Space Program. The country has also stepped up the re- education of prisoners, Zhao said, with 1.25 NEW RECORD Water level rises to 270 meters on November 12, the highest in history, in Xiaolangdi Reservoir million criminals having received literacy in Henan Province, a major water control project on the Yellow River, China’s second longest waterway training and compulsory education in prisons ZHAO PENG since 2008. Survey on Porpoises Chinese scientists on November 11 launched a survey of endangered finless porpoises in the country’s longest waterway, the Yangtze River. The survey team consists of researchers from the Ministry of Agriculture, the Chinese Academy of Sciences (CAS) and the World Wide Fund for Nature. The planned 40-day survey will be the most comprehensive since 2006, when a survey found the population of finless porpoises was down to 1,800. There are probably only 1,000 finless porpoises in the Yangtze and two lakes linked to the waterway after continuous drops in the number, said Wang Ding, a researcher with the Institute of Hydrobiology under the CAS. http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 21 THIS WEEK ECONOMY XU YU Inflation Eases Further China’s consumer price index (CPI), a main gauge of inflation, dropped to a 33-month low of 1.7 percent in October, according to the National Bureau of Statistics. The inflation rate, which dropped to its slow- est pace since January 2010, dropped from 1.9 percent in September and 2 percent in August. On a month-on-month basis, October’s CPI fell 0.1 percent from the previous month. Slowing growth in food prices and fewer carryover effects from last year contributed to the slight drop. Food prices in October rose by 1.8 percent year on year and fell by 0.8 percent month on month. In the first 10 months, the CPI grew an average of 2.7 percent year on year, showing a further decline from the 3.3-percent rise in the first half of the year. The producer price index (PPI), which measures inflation at the wholesale level, dropped 2.8 percent year on year in October. It marked the eighth straight month of decline after the PPI dropped in March for the first time since December 2009. “We expect the mild inflation trend to persist through the first half of 2013,” said Li POWER ON A worker installs photovoltaic ceramic roofing in a village in east China’s Zhejiang Province on November 14. The generated power will be used for household electricity consumption Huiyong, chief economist with the Shenyin Wanguo Securities Co. Although the country is poised to meet its goal of keeping inflation under 4 percent for than the 9.9-percent increase registered in est biannual trade fair, where total turnover the year, analysts have warned of rising con- September. dropped 9.3 percent compared with the fair’s sumer prices in November and December, as Imports climbed 2.4 percent year on year spring session. the cold weather will likely push up vegetable in October, unchanged from the growth in In the first 10 months, foreign trade vol- and meat prices. September. ume expanded 6.3 percent from the same This resulted in a widening trade surplus period last year. Mild Trade Improvement of $31.99 billion in October, compared with China has targeted growth of 10 percent $27.67 billion in September and $26.66 bil- in total foreign trade this year, a figure that of- China’s trade surplus widened in October, lion in August. ficials concede will be difficult to achieve. as export growth accelerated and import The rise in exports was the strongest since growth remained steady, said the General May, but analysts have been cautious to call it Administration of Customs. a solid recovery because of sluggish external EU Dumping Probed Exports rose 11.6 percent from one year demand. The European Union has been dumping toluene earlier in October, beating market expecta- Weakening demand was reflected in the diisocyanate (TDI) into the Chinese market, the tions for a rise of 9 percent and stronger recently concluded Canton Fair, China’s larg- Ministry of Commerce said on November 13.

Numbers

19.1 billion yuan 4,273 The amount of money that Alibaba, China’s The number of large passenger aircraft that Chinese e-commerce giant, cashed in during the “Singles’ Day” airlines will demand in the next 20 years, according shopping promotion on November 11, a date bearing to a report released by Commercial Aircraft Corp. of four “1s,” emphasizing singles. China on November 13.

22 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com An eight-month investigation found im- mining and processing of the minerals, includ- ported TDI from the EU was as much as 37.7 ing new industry entry requirements, stricter Sinopec Boss Awarded percent below normal prices and that such emission standards, production caps, as well dumping has hurt domestic producers, the as export quotas. Fu Chengyu, Chairman of China Petrochemical Corp. or Sinopec, was ministry said in a preliminary ruling. awarded the title of the Petroleum Importers of such products are required Economic Census Executive of the Year in London on to pay anti-dumping fees to China’s customs November 12 by the world’s leading authorities. The deposits will be charged ac- China will carry out its third economic energy research group Energy cording to the dumping margins of different census in 2013, said the State Council on Intelligence, becoming the first producers, said the ruling. November 12. Chinese to win the title in 15 years. In March, the ministry launched an anti- Statisticians from around the nation will The Petroleum Executive of the survey all enterprises in secondary and tertiary Year award, the most prestigious dumping probe into EU-exported TDI, a main award in the international energy raw material for polyurethane products. TDI sectors and the census will facilitate further economic planning. industry, recognizes outstanding is widely used for rubber surface coating and The researchers will collect data related to executives’ leadership in the field. in the textile processing, petroleum, mining, enterprise ownership, financial status, produc- Fu started his career in the oil and automobile industries. industry in 1982 in China National tion capacity and research and development Offshore Oil Corp. He became activities during the yearlong census. Sinopec’s chairman More Eligible Producers The Central Government and its local in 2011. Under his Regulators gave the green light to the first branches will jointly pay for the census. leadership, Sinopec’s batch of companies to extract rare earth The State Council ordered local gov- overseas operation has rapidly expanded minerals under the country’s new entry re- ernments to clamp down on potential irregularities in the census, including the fal- to more than 20 quirements. countries and regions The seven qualified companies included sification of data, forging census results and interfering in the census process. in Southeast Asia, a subsidiary of Inner Mongolia Baotou Steel Africa and South Rare-earth Hi-tech Co. (REHT), China’s America. largest rare earth producer, said the Ministry

of Industry and Information Technology on LIU CHAN November 12. The new entry requirements for the rare earth industry, released in August, listed a series of rules for project setup and layout, production scale, energy consumption and environmental protection. The sector has been weighed down this year as rare earth prices fell from dizzying AUTO BOOMING Workers put the heights due to weak external demand and new finishing touches on a rare earth production coming online. vehicle at a Lifan Auto As the world’s largest rare earth producer, plant in Chongqing, where auto output and China supplies more than 90 percent of global sales both rose above demand for the minerals, which are crucial in the national average in the production of a range of hi-tech commodi- the first three quarters ties such as wind turbines, hybrid car batteries and smart phones. China has announced various measures to control environmental damage during the

6.1% 1.04 trillion yuan The year-on-year increase of China’s electricity China’s fiscal revenue in October, up 13.7 percent consumption, a barometer of economic activities, in year on year, according to the Ministry of Finance on October, more than doubles September’s 2.9-percent November 14. rise, said the National Energy Administration on November 14. http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 23 THIS WEEK WORLD

ITALY A man carries luggage on flooded St. Mark’s Square on November 11 in Venice. Rain and wind hit north Italy and caused flooding that reached 1.5 meters in the city XINHUA/AFP

THE UNITED XINHUA/AFP STATES

Thousands of job seekers wait in line at Kennedy-King College to attend a job fair hosted by the city of Chicago on November 9

24 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com XINHUA/AFP AUSTRALIA

The diamondring effect is observed following a total solar eclipse in Palm Cove in northern Queensland on November 14 XINHUA/AFP

A Palestinian man reacts upon arrival at a hospital in Gaza City after being wounded from Israeli shelling as clashes erupted along the border on November 10 PALESTINE XINHUA/AFP XINHUA/AFP

BELGIUM

European Commission President Jose Manuel Barroso (right) welcomes Greek Prime Minister Antonis Samaras prior to A Buddhist monk tries to salvage a Buddha statue in a village in central their meeting in Brussels on November Myanmar on November 12 following a destructive earthquake 13. Greece raised 4.06 billion euros ($5.16 billion) that day in an emergency bond sale to avert a messy default MYANMAR http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 25 26 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 27 WORLD

In fact, Syrian opposition groups inside and outside the country have not seen eye to eye with each other on strategies to end the unrest that flared up 20 months ago. The exiled opposition Which Is the continues to call for foreign intervention, while the Syria-based opposition rejects such an approach and accuses the exiled groups of engaging in a foreign conspiracy. Way Out? Luai Hussain, head of the opposition Building Syria State Party, said the agreement reached by the new bloc will further compli- The new Syrian opposition coalition faces two cate the situation on the ground. According to the agreement, once the new options for resolving the crisis By Yu Lintao coalition wins international recognition, it will form an interim government in exile and call for a national conference if the current Syrian nder the mediation and support of countries soon after its establishment. administration is ousted. The opposition bloc the United States and some Middle The Arab League recognized the opposi- also agreed to establish a new supreme mili- UEastern countries, a new coalition tion bloc as “the representative of aspirations tary council to take overall command of the of Syrian opposition groups was formed on of Syrian people.” Washington also swiftly rebel groups. November 11 in the Qatari capital of Doha. declared its backing. During an interview with China’s Xinhua The newly united opposition, which is named “The reshuffle was led by the United News Agency, Hussain said his party will re- the “Syrian National Coalition for Opposition States and some countries in the region. ject anything that comes out of the overseas- and Revolutionary Forces,” includes most Washington wasn’t satisfied with the per- based opposition. “The formation of any Syrian opposition groups, but has yet to show formance of the former coalition, which was interim government abroad would be condu- whether it can bring long-awaited peace to loose and ineffective in confronting the Syrian cive to increasing division in Syrian society, the war-torn country. authorities,” An said. and thus would widen the platform of a civil Observers said that as the strength of the He said the total opposition forces have in- war,” he said. Syrian opposition increases with the estab- creased somewhat, but whether they would take “To some extent, the establishment of the lishment of the new bloc, an opportunity will a unified position is uncertain. new coalition at least added weight for the arise for the opposition to negotiate with the Xue Qingguo, a professor of Arab studies opposition to conduct political negotiations Syrian authorities. But whether the newly at Beijing Foreign Studies University, said with the Syrian Government. It should be an formed bloc will seize the initiative is ques- that although the new coalition included most opportunity,” An told Beijing Review. tionable. opposition groups, some military factions Though the coalition declared it would “The reshuffle of Syrian opposition inside Syria are unwilling to join it. The mili- not have dialogue with the Assad regime, An groups aims to strengthen the power of the tary power of the new opposition bloc is not claims that such posturing may sometimes opposition as a whole. But it is still hard to say guaranteed. differ from its true stance. whether the move is geared toward reaching “Besides the goal of overthrowing the “From the current balance of military military goals or achieving to negotiate with Bashar al-Assad regime, there are many power, it is impossible for the opposition bloc the Syrian Government,” said An Huihou, divergences among the opposition groups— to defeat government troops without mili- a senior visiting researcher with the China from religious faiths to interests and from tary interference from the West or regional Institute of International Studies. ideologies to crisis-resolving approaches,” countries. In addition, most members of the Reshuffle Xue said to Beijing Review. international community hope for a peaceful “It is very doubtful that the new bloc settlement to the Syrian crisis,” said An. The new Syrian opposition coalition won could form a unified fighting capacity. An im- An said the integration of the opposition the recognition of the Arab League, the Gulf mediate ability to turn the situation around is groups is of particular significance because Cooperation Council and some Western almost impossible,” Xue added. it could enable the opposition to play a

“The establishment of the new coalition at least added weight for the opposition to conduct political negotiations with the Syrian Government. It should be an opportunity.” —An Huihou, a senior visiting researcher with the China Institute of International Studies

28 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com XINHUA/AFP

FIERCE BATTLE: Smoke billows from burning tires as a Syrian opposition fighter fires at government forces during clashes in the northern city of Aleppo on November 13 bigger role in negotiating with the Syrian sentation. draw troops from the Middle East, Xue said. Government to promote ceasefire and end The spillover effects brought by the ongo- “Obama should admit that the Syrian au- violence. Only this outcome lies within the in- ing Syrian crisis have severely impacted its thorities continue to have majority domestic terests of Syrian people and the expectations neighboring countries. Latest statistics from support by far,” said Xue. of the international community. the UN High Commissioner for Refugees An said it is not impossible that Obama show that there are more than 407,000 Syrian would choose another kind of approach apart Settlement refugees in Iraq, Jordan, Lebanon and Turkey from military interference in resolving the cri- At a regular press briefing in response to a after the crisis broke out in March last year. sis. After all, the spreading violence will be of question regarding the new coalition, Chinese “If the crisis continues, it might bring no benefit to Washington. He said that as the United States’ strategic Foreign Ministry spokesman Hong Lei re- disaster to the region and even influence the attention turns eastward, grappling too much iterated China’s stance that the Syrian crisis West. They should recognize the significance with the Syrian issue does not match its for- should be settled through a political transition of resolving the crisis through political nego- eign policy goals. process led by Syrian people. tiations,” said An. On November 14, in his first press confer- “China has consistently held that foreign An said that at present the largest obstacle ence at the White House since his reelection, countries should not interfere with Syria’s to the political settlement of the crisis is the Obama said categorically that Washington internal affairs,” said An. He added that China precondition set by the West and some re- would not arm the Syrian opposition for the has no private gains from the issue. China’s gional countries that Assad must step down. moment. He also ruled out an immediate rec- stance is totally based on the interests of the Xue hopes that U.S. President Barack ognition of the new Syrian opposition bloc as Syrian people. Obama could give up the precondition in his “some sort of government in exile,” though During a recent trip to Beijing by UN- second term; or else the situation may become his administration had declared its backing for Arab League joint special envoy Lakhdar more difficult. the coalition just days before. n Brahimi, China put forward a new and more Obama is faced with contradictions over detailed and practical proposal to facilitate the Syrian crisis. On the one hand, he is under the political settlement of the Syrian conflict. pressure from some domestic political forces to It calls for implementing a region-by-region interfere in Syrian affairs; on the other hand, he or phase-by-phase ceasefire and establishing wants to change the misguided policies of his [email protected] a transitional governing body of broad repre- predecessor George W. Bush, seeking to with- http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 29 NATION The Antisocial Network Smart phones are intruding on people’s lives at a much faster pace By Yuan Yuan ic

t is getting more difficult to get up in her statement: She can exchange messages with Information Technology show that 172 mil- the morning for Liu Juan, a freshman in other iPhone users free of charge, check e-mails lion smart phones were sold in China from Icentral China’s Wuhan University. Liu anytime no matter where she is, as well as take January to September this year, an increase of received an iPhone 4S from her parents as her pictures and share them online instantly. As a 183.4 percent compared to the same period in college admission gift in September and since person who has no sense of direction, the map 2011. then the phone has become an irreplaceable installed in the smart phone is a great help. It is commonplace for each person sitting in part of her life. “Smart phones are not just fashionable. a subway or bus each to have a smart phone in “I never thought this phone could occupy so They are necessary,” Liu said. hand, playing games or surfing the Internet. much time in my life and it seems I cannot go a Liu’s three roommates all have smart Huang Zixian, a 33-year-old woman in day without it now,” said Liu, who added that al- phones. “Every night after we switch off the Beijing, was once a victim of pickpocketing. “I most everybody in her freshman class uses smart light in the dorm to go to bed, you can see realized what made me feel panic is the loss of phones. “Besides avoiding the feeling of being four shining phone screens over the beds,” Liu the smart phone, not money,” Huang said. “I isolated from the class, this phone is indeed really said. “Sometimes we share news. Sometimes don’t mind spending money and time restor- useful and convenient. It is like a portable laptop. we just keep silent and play.” ing my ID card and bank cards, but without the Except for typing long articles, it can do almost Far reach phone, I am really at a loss as to what to do next.” everything that a laptop can do.” Pu Yu, another woman in Beijing, agreed Liu listed quite a few reasons to ground Statistics from the Ministry of Industry and with Huang. Pu once left her bag in a restau-

30 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com “When people live under great pressure and there are not many channels for release, smart phones are the choice to relax and kill time.” —Ma Meiying, a professor of sociology at Zhejiang University in Hangzhou rant. “Thankfully, my phone was not in the In Su’s opinion, smart phones have en- ties, no matter what they were doing, were bag! So, it didn’t matter that much to me at larged the distance between people. “People always checking messages and couldn’t con- all,” Pu said. stare at their phones but ignore friends near- centrate. “It is really annoying and impolite, A survey of college students in Wuhan, by,” she said. but they don’t care and take it for granted.” Hubei Province, showed that 63 percent of Su gave a widely reported example: A Xiao Linqiu, a woman living in Shanghai, the respondents spent time on smart phones grandfather arranged a dinner party for two echoed Gao’s frustration. Xiao likes to have at bedtime and 56 percent of them spent more grandchildren, who spent the entire evening dinner with friends, but almost every time than half an hour. They read novels, visited staring at their phones. The old man became there are one or two people at the table who social networking sites, chatted or played irritated and left before the meal ended. don’t talk with anybody and stare at their games. Only 12 percent said that they kept Sina.com, one of China’s leading Web phones instead. “I think it is basic etiquette not from their phones at all at bedtime. portals, recently conducted a survey on smart to do that. It seems they don’t need anything “It has already become a must-do thing. phone addiction among people under 35 years in the whole world but that phone,” Xiao said. Without smart phones, I couldn’t even fall old. The results showed more than 50 percent “I doubt whether they still have the ability to asleep,” said Meng Tingting, a student from of young people preferred communicating via communicate with people face to face.” smart phones or social networking sites than Central China Normal University. “Some of Quest for liberation my classmates even use them until 1 or 2 a.m. by talking face to face. every night.” “Almost once every half an hour, I will “I really want to change this harmful habit. Jian Xinke, a sophomore at Zhongnan check on my micro-blog account with my I cannot get my hands away from the smart University of Economics and Law in Wuhan, smart phone to see whether I have new mes- phone and I cannot concentrate on my work at speaks highly of smart phones’ role in re- sages or not,” said netizen Rainingbow. Self- all,” said a netizen known as Sunflower, who lieving pressure. “We have a busy schedule proclaimed as an introvert, he said that being asked other netizens for methods to control able to closely follow friends’ movements via during the daytime, and playing with phones the habit. But the replies elicited were not op- smart phones provides the feeling of being before sleep is a way to relax.” timistic. Many said that their addictions were involved in groups. More than 55 percent of the students in- more severe. One even said that he had to get “It is hard to say whether smart phones volved in the survey in Wuhan said that they up at midnight every day to check the news make the distance between people longer or would not reform their smart phone habits on his phone. shorter,” said another netizen, Ancleer, who Ma Meiying, a professor of sociology despite possible health risks. claimed to be a sophomore in college. “It all “Whatever harm there may be to health must at Zhejiang University in Hangzhou, east depends. It truly makes me interact less with China’s Zhejiang Province, thinks the reason be very limited,” said Song Meng, a student at my classmates, but it shortens my distance Huazhong Agricultural University. “It has been a for smart phone addiction lies mostly in the with my friends in other places, even over- immense pressure and spiritual emptiness of source of entertainment before sleeping. I cannot seas. I can get in touch with them any moment imagine if not having a phone.” modern life. “When people live under great I want.” pressure and there are not many channels for Human distance But for Gao Qi, a 29-year-old man living release, smart phones are the choice to relax in Beijing, smart phones are more of a head- and kill time.” Liu Juan’s cousin, 30-year-old Su Huijun, ache than useful tools. As the main organizer Ma regards smart phone addiction as said that her college life was different. of Beijing fans of an Argentinean football an extension of Internet addiction. “It can “When I was in college around 2000, team, Gao’s club gathered together almost be more severe as the phone is much easier there were no smart phones at all. We had once every week, but now he doesn’t want to to carry,” he said. “The user should have a dorm chat every night after the lights were participate any more. stronger mind to control this. Smart phone switched off and it was one of the happi- “In the past, the meetings were a lot of producers should notify users of the harms of fun,” said Gao. “We met new friends here and est memories of college life,” said Su, who overuse as well.” n also admitted that she has become gradually played games or cards. But now that every- hooked to the smart phone. “But I would body carries a smart phone, the atmosphere has changed a lot.” rather have spent my college life without such [email protected] phones.” Gao revealed that many people in the par- http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 31 32 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 33 BUSINESS

A More Global Yuan Sales of RQFII products prove international demand for the renminbi is growing By Lan Xinzhen

emand for the renminbi in Hong for renminbi qualified foreign institutional financial institutions to apply for the RQFII. Kong has led several senior officials, investors (RQFII) by coordinating with the Industrial insiders think expanding the Dincluding Financial Secretary John People’s Bank of China (PBC) and the State RQFII investment quota and relaxing ap- Tsang Chun-wah, Secretary for Financial Administration of Foreign Exchange (SAFE). plication qualifications will undoubtedly Services and the Treasury K.C. Chan and Hong Kong appealed for another RQFII accelerate the capital account convertibility of Hong Kong Monetary Authority (HKMA) investment quota of 100 billion-200 billion the renminbi and promote the process of its Chief Executive Norman T.L. Chan, to pay yuan ($15.9 billion-31.8 billion), which has internationalization. a visit to Beijing on October 29, asking the been supported by the CSRC. On November Hong Kong is the world’s largest ren- China Securities Regulatory Commission 13 the CSRC, PBC and SAFE agreed to in- minbi offshore center, and the source of most (CSRC) for support and exchanging views crease the RQFII quota by 200 billion yuan of the present RQFII capital. According to with CSRC Chairman Guo Shuqing. ($32.12 billion). figures from HKMA, renminbi deposits in A senior CSRC official disclosed Besides raising the investment quota, Hong Kong had reached 550 billion yuan on November 2 that upon request of the the commission will also consider further ($87.44 billion) by the end of September. It is government of the Hong Kong Special improving the RQFII system by expanding expected that as the renminbi is more interna- Administrative Region, the CSRC is plan- its investment scope and relaxing investment tionalized, the amount of RQFII capital will ning to further enlarge the investment quota restrictions so as to allow more Hong Kong increase steadily. Thirsty market ZHANG CHUNLEI This is the third and largest expansion of the RQFII. The CSRC and SAFE jointly launched the RQFII system at the end of 2011 with an initial quota of 20 billion yuan ($3.18 billion). Qualified fund management companies and securities companies are allowed to issue renminbi-denominated funds and invest them into the mainland capital market. Most of the first batch of RQFII products were launched at the end of March and were mainly invested into the bond market. Benefiting from relaxed money supplies and narrowing interest difference in the mainland market, these RQFII products have performed well. Public figures from Hong Kong show that the average growth rate for the net value of the first batch of RQFII products is 1.2 percent. China raised the quota by 50 billion yuan ($7.95 billion) in April, capping it at 70 billion yuan ($11.13 billion). USING THE YUAN: China is accelerating the process of internationalizing its currency Different from the first batch, the newly increased quota can be used to develop Exchange Traded Funds (ETFs) that are

34 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com invested in the stock index of the A-share to expand RQFII quotas. According to a re- Wei Yanshen, a researcher at the Institute market. The decision was widely welcomed port by Hong Kong Phoenix TV, Hong Kong of Asia-Pacific Studies at the Chinese for satisfying the demand of institutional in- financial authorities also think present RQFII Academy of Social Sciences, says the eco- vestors to track the performance of stocks in should be further revised. nomic strength of a country dictates whether the mainland market. At present, only fund management com- a currency goes international. Therefore, the In July, the ChinaAMC CSI 300 Index panies and insurance companies are qualified internationalization of the renminbi should ETF, which China Asset Management (Hong for the RQFII, and there are still limits on the move forward based on China’s internal Kong) Limited (CAMHK) listed, was in high investment proportion of stocks. Moreover, dynamics rather than by external factors like demand upon its availability on July 17. Later the 70-billion-yuan quota was too small economic recession in the West. debuted RQFII products, such as CSOP A50 compared with the huge offshore renminbi China’s economic growth and the ETF, EFUND CSI100 ETF and HGI MSCI reserves in Hong Kong. progress in multilateral trade have further CN A, were also highly sought after. Therefore Hong Kong’s financial officials improved the international status of the ren- The approved quotas for the CSOP A50 had to seek help from the CSRC, requesting minbi, says Wei. Since entering the WTO, ETF and the EFUND CSI100 ETF are 5 to increase the RQFII threshold. China has been increasingly integrated in the billion yuan ($794.91 million) and 2 billion global economy. yuan ($317.97 million) respectively. Since the Toward internationalization Growing economic ties with other capital raised during their initial public offer- Other good news from the CSRC is that the countries have increased the demand of the ings had already reached the upper limit, both commission, in cooperation with Hong Kong renminbi and pushed forward the process of funds closed for purchase after their debut. financial authorities, is studying mutual rec- its internationalization. Today, China takes up On August 29, the SAFE raised the quota ognition of cross-border funds. 22 percent of all manufacturing trade in East by 3 billion yuan ($46.95 million) for the This policy will allow fund products rec- Asia and has become a regional trade center. EFUND CSI100 ETF, helping it open for ognized by supervising authorities from the As the world’s biggest exporter and a net purchase. On September 7, the CSOP A50 mainland and Hong Kong to be listed on each creditor nation for more than a decade, and ETF also saw its quota rise by 2 billion yuan, other’s market without further recognition. because of its economic strength and stable which was soon digested by the market. On Similar policies have been carried out for environment, China is in excellent shape to October 24, the CSOP A50 ETF suspended years in EU countries. internationalize the renminbi. purchase again because its 7-billion-yuan If this policy is adopted, fund products from However, related Chinese departments ($1.11 billion) quota had been used up. the mainland can be sold in Hong Kong and vice have made steady progress in international- SAFE had approved 21 RQFIIs by versa. The renminbi will become the leading cur- izing the renminbi. At the end of February, September 30. The A-share market is a major rency in the capital markets of both places. China extended cross-border renminbi trade source of income for RQFIIs. By November According to a report issued by the settlement to the whole country. 5, the CSOP A50 ETF had issued 1.05 billion Peterson Institute for International Economics In June, six ministries and commissions fund units, with a market value of 7.8 billion in the Untied States on October 22, the ren- under the State Council jointly issued a list yuan ($1.24 billion). The ChinaAMC CSI 300 minbi’s influence has been greatly enhanced of renminbi settlement enterprises in export Index ETF issued 221 million fund units, with and the renminbi has become the dominant goods subject to special supervision. The a market value of 5.09 billion yuan ($809.22 reference currency in East Asia. In this region, CSRC also said it would further expand the million). The EFUND CSI100 ETF issued seven currencies out of 10 are more closely pilot scale of RQFII and investment quotas, 116 million fund units, at a market value of linked with the renminbi than with the dollar. accelerating capital account convertibility of 2.57 billion yuan ($408.59 million). The HGI The Royal Bank of Scotland (RBS) is- its currency. MSCI CN A issued 244 million units, at a sued a report on the same day saying that the Wei adds that during the process of pro- value of 1.94 billion yuan ($308.43 million). current global climate favors the Chinese cur- moting renminbi internationalization, the Therefore, since July 17, there have been 18 rency as both the U.S. dollar and the euro are renminbi settlement business for cross-border billion yuan ($2.86 billion) of offshore ren- under pressure and that global investors are trade has shown powerful growth. However, minbi flowing into the A-share market via the looking for an alternative reserve currency. China should be fully aware of the problems RQFII. The RBS expects the renminbi to become and risks associated with internationalizing its The RQFII funds are performing well fully convertible in the next five years, which currency. in terms of investment returns. Open market will further globalize the currency. For example, the acceptance of the ren- figures show that all the RQFIIs are making However, Guo Tianyong, a professor of minbi by foreign traders should be further money, with net value growing between 0.17 finance at the Central University of Finance and improved. Moreover, preventing risks and en- percent and 3.76 percent. The top three return Economics, says the global economic recession suring safe economic and financial operations are also important on the path to international- makers are the EFUND CSI100 ETF, the cannot be the major driving force behind the in- n CSOP A50 ETF and the ChinaAMC CSI 300 ternationalization of the renminbi. ize the renminbi. Index ETF. The internationalization of a currency Due to their stable performance and high depends on the world’s confidence in it, the convenience of currency settlement and its us- market demand, many RQFIIs are pressuring [email protected] Hong Kong’s financial authorities to appeal age in global trade, says Guo. http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 35 BUSINESS

On Top of the PC World Lenovo has overtaken HP to become the world’s top computer maker, but the company has even greater ambitions By Zhou Xiaoyan

hina’s personal computer manufac- prise in the PC market is just a milestone in among customers away from older types of turer Lenovo Group Ltd. overtook Lenovo’s development, as it is also looking to computers toward mobile tablet devices. CU.S.-based Hewlett-Packard Corp., become a leader in other markets.” Despite a gloomy outlook for PCs, or HP, in the third quarter to become the larg- Lenovo’s success is attributed to its Lenovo’s net profit from April to September est seller of personal computers (PCs) in the long-term focus on emerging markets and totaled $303 million, up 20 percent year on world measured by shipments, said the IT successful overseas M&As. Facing a low year. During the same period, its sales revenue research company Gartner Inc. in October. profit margin in the PC business and fierce amounted to $16.68 billion, up 22 percent, According to the internationally recog- competition from tablet PCs and smart according to Lenovo’s quarterly financial nized research firm, Lenovo accounted for phones, the company is embarking on plans statement. PC sales of the company surged 17 15.7 percent of all PC shipments in the third to diversify its businesses. percent while those of the whole world shrank quarter, while HP held 15.5 percent. Another by 5 percent. U.S.-based PC maker, Dell Corp., controlled Reasons for success Lenovo defied the odds because of about 10.5 percent of the market during the some of its acquisitions and relatively high period. HP stood atop the rankings as the world’s exposure to emerging markets, which are out- Yang Yuanqing, Lenovo Chairman and biggest PC maker for the past six years, but performing developed markets in sales, Brent CEO, said Lenovo would not become com- its market share loss came amid upheavals in Bracelin, an analyst at Pacific Crest Securities placent. its management and changes in its business Inc., told China Daily. “Although competition has been fierce plans. At one point, the company had consid- In the past, Lenovo learned from HP, in the PC market, I firmly believe there is ered spinning off its PC unit, a proposal that IBM and other Western IT companies, Wang still room for continuous profit growth,” was later abandoned by Meg Whitman, HP Jiping, a senior analyst from the U.S.-based Yang said at a press conference on Lenovo’s CEO. research firm International Data Corp., told quarterly financial results held in Beijing on The company has also been hit hard by China Daily. November 8. “Becoming a leading enter- the world’s economic malaise and a shift Lenovo started to develop its own sales and operations model in 2004 and then acquired IBM’s PC division in 2005. Now its business model and strategy have spread to global markets. Wang said Lenovo in 2009 became the first PC company to classify countries into two categories: emerging markets, such as China, India and Brazil, and mature markets, such as the United States and Japan. Lenovo then developed a different strategy for each. Such a strategy has now been widely adopted among multinational IT companies. The main reason the company is the top PC seller is its strategy of penetrating into lower-tier cities in China and emerging markets, Wang said. About six years ago, Lenovo started sell- ing more of its products in China’s rural areas, a step that Wang believes will contribute to the company’s development in the next five AT FULL STEAM: Workers assemble desktop PCs years. CHEN FEI at a Lenovo factory in Shanghai In China, Lenovo has a 34-percent share of the PC market, up 2.4 percentage points

36 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com year on year, and ship-

ments increased 8 percent YANG LEI year on year in the second quarter of 2012, according to a company statement. In other emerging markets, Lenovo FANCY PRODUCT: A Lenovo salesman showcases a laptop—Idea Pad Yoga—at the Las Vegas Interna- surpassed Dell and HP earlier this year to oc- tional Consumer Electronics Show in January 2012 cupy the top spot in India and announced a few weeks ago that it would cooperate with a company in Brazil to expand its presence has millions of users in the educational field by 2016 or possibly earlier. there. and the U.S. public sector. “Becoming the clear leader in global PC Meanwhile, Lenovo has become the The same month, Lenovo agreed to buy market of course remains one of Lenovo’s top PC shipper in India and is aggressively the Brazilian consumer electronics maker aspirations, but it only represents one more expanding in Latin American countries with CCE in a cash-and-shares-deal worth about milestone in our journey as a company. We factories in Brazil and Mexico. 300 million Brazilian reals ($147 million). are setting our sights on delivering long-term While some Chinese IT industry players The purchase of CCE, Brazil’s largest domes- profitable growth, while leading the way for- have tumbled in overseas M&As, Lenovo has tic maker of electronics, will allow Lenovo to ward into the PC Plus era,” said Yang. witnessed enormous success from its overseas more than double its share of the PC market Lenovo launched a new strategy this year deals. in the world’s sixth largest economy—from called “PC Plus” to focus more on other prod- In 2005, Lenovo acquired IBM’s PC busi- 3.7 percent to 8 percent—and diversify its uct lines such as mobile devices and build its ness for $1.25 billion, and it also shouldered product portfolio from single PCs to other cloud-computing offerings that allow users $500 million of the latter’s debt. The takeover electronic products such as tablet PCs and to access data remotely or control different provided the company with American know- smart phones. devices via a single computer. how to expand globally. By making Lenovo The deal will also add mobile phones and Yang said that Lenovo is looking to ex- the third largest PC producer worldwide, the televisions to its product line in Brazil, where pand its tablet and smart phone businesses. acquisition gave Lenovo’s PC business a it recently announced plans to build a factory In the third quarter, the sales revenue from boost. Lenovo’s Mobile Internet and Digital Home “We benefited in three ways from at a cost of $30 million. Lenovo will continue to make acquisi- Department, such as tablet PCs and smart the IBM acquisition,” said Liu Chuanzhi, phones, totaled $718 million, accounting for 8 former board chairman of Lenovo, in an in- tions to boost its growth in global markets, said Lenovo’s Chairman Yang. percent of the company’s total sales revenue terview with China Central Television, the between July and September. During the country’s national TV station. “We got the A larger ambition period, Lenovo smart phones held 13 percent ThinkPad brand, IBM’s more advanced PC of the market share in China, up 11.6 percent manufacturing technology and the company’s Despite Lenovo’s market performance in the year on year and second to Samsung’s market international resources, such as its global sales PC business, worries abound that the sector’s share of 15 percent. channels and operation teams. These three low profit margins will eventually become a The company also plans to sell smart elements have shored up our sales revenue in burden for Lenovo with the increasing popu- phones in Indonesia, the Philippines and Viet the past several years.” larity of tablets and smart phones. Nam in the near future. In August 2012, Lenovo signed an agree- In the third quarter, 87.5 million PCs were Lenovo will place a greater emphasis next ment with the U.S.-based data-management shipped in the world, down 8.3 percent year year on increasing profits “rather than grab- company EMC Corp. to develop and sell on year, said Gartner. bing more market share,” and aim to lift its server and storage technologies. Because of the current global economic pre-tax profit margin by at least 1 percentage In September 2012, Lenovo delved into slowdown and competition from mobile point in three years, said Yang. n software development after buying the U.S.- Internet products, PC shipments have been based cloud-computing company Stoneware feeling the squeeze. [email protected] Inc. for an undisclosed amount. Stoneware Some analysts say tablets will outsell PCs http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 37 BUSINESS MARKET WATCH

18.1 trillion yuan

The total amount of China’s private fixed- asset investment from January to October, up 25.2 percent year on year. OPINION Diversifying Sources of Financing

Improving the structure of social financing, a reached 2.94 trillion yuan ($472.16 billion), a broad measure of funds raised by entities in sharp increase of 162.5 percent year on year. the real economy, has always been a major is- Most of the issuers are government agen- sue in China’s financial reform. cies and local enterprises in infrastructure Effective control of new yuan-denomi- investment like railways and expressways. nated loans and the expansion of credit bonds The solid performance of credit bonds is and trust indicate an improved structure of based on constantly growing demand. social financing. The process has been accel- Since regulators have begun to loosen erating recently in China. regulations over financial and assets manage- Statistics show that last year, the ratio of ment products, the demand for high-yield new yuan-denominated loans to total social fi- bonds has begun to surge. 8.07 trillion yuan nancing amount was 58.22 percent. In the first Third-quarter figures from the China 10 months of this year, the ratio fell to 55.53 Trustee Association suggested that by The amount of private fixed-asset investment percent. The ratios were 63.24 percent, 61.44 September 30 the total amount of trust assets in service industry from January to October, percent and 47.46 percent, in the first, second had registered 6.32 trillion yuan ($1.02 tril- up 21.6 percent year on year. and third quarters, respectively. lion), a year-on-year increase of 54 percent, In October, social financing became more hitting a record high. The size of the trust active. Statistics released by the People’s industry is almost the same as that of the Bank of China (PBC) suggest that in October insurance industry, China’s second largest new yuan-denominated loans dropped to financial industry with a total asset of 6.9 tril- 505.2 billion yuan ($81.14 billion), a record lion yuan ($1.11 trillion). low in the past 13 months and far less than the Overdependence on bank credit may lead market expectation of 600 billion yuan ($96.36 to narrow channels of investment and financ- billion), while social financing climbed to ing, which will not only hinder the spread of 1.29 trillion yuan ($207.17 billion). The ratio risks, but also reduce the efficiency of capital of yuan-denominated loans against social utilization. financing in October fell to a record low of China’s financial reform should focus on 39.2 percent. Meanwhile, the proportion of boosting the proportion of bonds, stocks and trust, bill and corporate bonds rose to 40.5 trust against social financing and enriching the percent, exceeding new yuan-denominated sources of investment and financing. trillion yuan loans, which reflects a more balanced financ- For now, improving the structure of social 3.65 ing structure. financing is speeding up. As financial reform The amount of private fixed-asset investment The PBC also plans to control the total continues to deepen, deregulations accompa- in west China from January to October, up new yuan-denominated loan amount between nying the upgrading of financial innovation 29.5 percent year on year, the fastest among 8 trillion yuan ($1.28 trillion) to 8.5 trillion and the release of investment and financing all regions. yuan ($1.37 trillion). demands will sustain the accelerated diversifi- Spurred by deregulation and increased cation of social financing. n demand, the amount of credit bonds and trust underwent a significant rise. Market data from This is an edited excerpt of a report by Anbound, a the Shanghai Stock Exchange show that since Beijing-based research company, published on the the beginning of this year, credit bonds— website of Caijing Magazine including short-term financing bills, medium- [email protected] term notes and corporate bonds—have

38 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com

Growth Rates of Fixed-Asset Investment (y.o.y.)

35.0% 30.9% 30.0% 28.9% 27.3% 26.7% 25.8% 25.5% 25.1% 25.1% 25.2% 25.0% 21.5% 20.9% 20.2% 20.1% 20.4% 20.4% 20.2% 20.5% 20.7% 20.0%

15.0%

10.0%

5.0% Private fixed-asset investment Fixed-asset investment 0 THE MARKETS Jan-Feb Jan-Mar Jan-Apr Jan-May Jan-June Jan-July Jan-Aug Jan-Sep Jan-Oct 2012 Falling Stockpiles Stockpiles of iron ore slid at 25 major Chinese ports during the week ending November 12, according to Xinhua’s latest iron ore price report. Private Fixed-Asset Investment by Industries, Jan-Oct (trn yuan) Inventories of imported iron ore at the ports stood at 97.43 million tons, down 0.52 480,000 tons from a week earlier. The price index for 63.5-percent-grade iron ore imports rose 1 point to 123 points during the period, while the index for 58-percent-grade imports Agriculture also climbed 1 point to stand at 105 points. In the first three quarters, given the gloomy economic climate both at home and Manufacturing abroad, domestic consumption of iron ore was 8.07 9.51 growing slowly. Import prices of iron ore were supported Services by speculations that the government may adopt more measures to bolster the slowing economy, and the prices will be relatively steady in the near-term with the consumption off-season approaching. Property Boom Private Fixed-Asset Investment by Regions, Jan-Oct (trn yuan) Amid the recovery of Beijing’s real estate market, commercial property sales in the capital increased by over 30 percent year on year to 13.1 million square meters in the first 10 months, according to statistics released by 3.65 the Beijing Municipal Bureau of Statistics. East China Home sales in Beijing soared by over 45 percent year on year to 10.1 million square 8.93 Central China meters during the same period. The sales surge comes as the city’s prop- 5.52 erty market continues to recover since May, West China when potential buyers snapped up bargains in the cooling market out of fears that housing prices would rise. The buying was further boosted by two interest rate cuts since June, which reduced mortgage costs and strengthened market (Source: National Bureau of Statistics) expectations that further loosening policies would trigger a stronger real estate market rebound. n http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 39 40 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 41 CULTURE ART

Two Worlds Become One A Look at the Third Art and Science International Exhibition and Symposium By Ji Jing

he closer you stand to this wearer’s heart beats faster. “So if a man wear- architectural and environmental design, and garment, the more transpar- ing this garment tells a lie to a woman, the visual design from 22 countries. The theme of “T ent it becomes,” said Daan garment will become transparent and expose this year’s exhibition is “information, ecology Roosegaarde, an artist from the Netherlands, his chest,” Daan explained. and wisdom.” introducing his hi-tech apparel to the audience Daan has merged science and modern Theo Jansen—another Dutch artist— at the Third Art and Science International technology with his artistic imagination in demonstrates his wisdom in creating a new Exhibition and Symposium at the China developing his Intimacy dress. life form, which he calls strandbeest, or “beach and Science and Technology Museum on “Since the 1960s, new technologies have beast.” November 1. given way to new forms of art. No matter The beach beast is made of plastic tubes The garment, named Intimacy, is made what form artwork takes, the purpose of and lemonade bottles. It can walk on its own of opaque smart e-foils developed by Studio art remains unchanged, which is to inspire in a beach environment on both wet and dry Roosegaarde. Smart sensors are woven within people to think about the relationship between sand and get its energy from the wind, which the material, causing the e-foils to become humankind and nature and inspire changes moves the feathers on its back and drives its transparent through social interaction. to society,” Qu Meng, a Chinese artist, told feet forward. Daan continued, “This garment points Beijing Review at the exhibition, which runs As soon as it walks into either the sea or to the future of fashion.” His workshop has until November 30. dry sand, it stops and walks in the opposite created a second-generation Intimacy gar- The exhibition has more than 100 displays direction. When a storm comes, it drives a pin ment, which becomes more transparent as the in the form of new media, product design, into the ground to stay put.

42 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com 1. STRANDBEEST: The “beach beast,” made by Dutch artist Theo Jansen, can walk on its own in a beach environment and get its energy from the wind 2. BREATHING LAMP: The lamp, created by Chinese artist Qiu Song, transforms inhaled dirty air into fresh air 3. THE SEA CHAIR: The sea chair is made from plastic debris, which is collected and processed by Studio Swine and Kieren Jones from Britain 4. INTIMACY: The closer one stands to this garment, the more transparent it becomes. The garment is designed by Dutch artist Daan Roosegaarde 5. MUSICAL LOOM: Hong Kong artist Kingsley Ng has turned a 250-year-old French loom into a musical instrument with an infrared radiation camera and ultrasonic distance sensors. Hands placed in midair above the loom’s threads cause it to create sounds

2 4 5

“Eventually I want to put these animals science, art is a highly disciplinary form of in- air, thereby replicating the function of a tree. out in herds on the beaches, so they will live quiry. Artists approach the world around them Qiu hopes to alleviate air pollution in China, a their own lives,” according to a quote by with a curiosity to know as scientists do.” growing and increasingly serious problem in Jansen on his website. However, art is also separate from science the country. “Leonardo da Vinci (1452-1519) was because art approaches ambiguities. Daan told Beijing Review that art of to- both an artist and a scientist. Art and science “It’s all right for each of you to have a dif- day should not just stay in the comfort of a are very close,” Julian Stadon, a media artist ferent interpretation of a painting or poem. A museum but should go outside and confront from Australia told Beijing Review. “A lot of work of art may have deep meaning, but it is the world. Artists should use imagination and artists use scientific methodologies in their not quite clear what it is to each of us,” Knox innovation to figure out new ways of dealing artworks. Art is in humanities; however, I said. “Scientists need to check and confirm with modern-day problems. “It’s not about think art should be in science because art is that everything they know is correct. Art is the medium, it’s about the message you tell,” experimental, as science is.” personal and subjective.” Daan said. n “Art and artists make unique and par- At the exhibition, much of the art con- ticular contributions to ways of exploring fronts such problems as pollution, which echo (Photos by Wei Yao) the world around us, and art is in fact a way the “ecology” theme of this year’s exhibition. of knowing,” Gordon Knox, Director of the The “breathing road lamp” by Chinese artist Arizona State University Art Museum, said Qiu Song aims to reduce air pollution. The [email protected] at the art and science symposium. “Similar to lamp transforms inhaled dirty air into fresh http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 43 44 BEIJING REVIEW NOVEMBER 22,8, 2012 2012 http://www.bjreview.com http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 45 FORUM

Opportunities Prevail By Li Junru

he Communist Party of China (CPC) World Expo in Shanghai, as well as China’s The author is former Vice first put forward the concept of the effective responses to the massive earthquake President of the T“important period of strategic oppor- in Wenchuan of Sichuan Province, the earth- Party School of tunities” in the 16th CPC National Congress quake in Yushu of Qinghai Province and the the CPC Central in 2002. This period covers the first 20 years mudslide in Zhouqu of Gansu Province from Committee, and the article is an of the 21st century. In the past 12 years, 2008 to 2010, have greatly burnished China’s edited excerpt many changes have taken place in the world. image and encouraged the Chinese people. first published in Whether the important period of strategic All these prove that despite all the newly the Beijing Daily opportunities still exists is a big question that emerged conflicts and problems, China’s rap- must be asked before development planning id development is still blessed with strategic is implemented. opportunities. on a roller coaster ride. Protectionism in inter- Rising status Objective judgments national trade and investment is mounting. China has been rapidly rising in the past 12 In light of the changes happening within As for the domestic situation, the task years. Along with the country’s rise come two China and in the world, the CPC Central to solve systemic and structural conflicts for kinds of “theories” in the international com- Committee has made two judgments fol- more balanced, coordinated and sustainable munity: One is the “China threat theory” and lowing comprehensive, objective and calm development is becoming increasingly urgent the other is the “China collapse theory.” analyses: First, China’s development is still in and difficult. New problems keep cropping up China is often embroiled in disputes with the important period of strategic opportunities; in the country’s economic development. For big economies like the United States over thus, there is still extensive space for China’s instance, China’s economic growth is under trade and the currency exchange rate, and further development. Second, China is faced the pressure of slowing down. Its consumer with neighboring countries over border is- with a variety of foreseeable and unforesee- prices remain high. The government’s macro- sues. At the same time, China’s internal social able risks and challenges. Based on the two control over the real estate market is at a and economic development has begun to see judgments, the CPC proposed to strengthen critical stage. It is difficult for agriculture to a widening gap between the rich and poor, the sense of opportunity and the sense of realize stable development and for farmers to an outdated social structure, as well as mass crisis. We have unified our minds based on keep increasing their incomes. Employment conflicts. As a result, some people think that the “two judgments” and “two senses.” Then is under structural pressure. Some businesses, China’s period of strategic opportunities has we’ll be able to remain confident in the face particularly small businesses, are facing prob- come to an end ahead of schedule. of complex and variable situations. lems in operation. The problem of excess China has already moved from the mar- Given the present economic and social capacity in some industries is becoming more gins to the center of the world stage, with its development in China as well as the inter- striking. The total consumption of energy is international status rising to an unprecedented national environment, we must keep a clear rising too fast. Some long-term conflicts are high. Particularly, the Chinese economy is mind. We face huge challenges and tests. In getting intertwined with short-term issues, contributing more and more and exerting a terms of the international situation, the global while internal and external problems are get- growing influence on the world economy. economy is recovering very slowly while ting mixed up. Thus, China’s macro-control There exist conflicts and frictions between the financial crisis is still ongoing. In some has to be conducted in a more complex con- China and big powers like the United States, countries, the sovereign debt crisis is unlikely text. but the mutually beneficial pattern has already to find relief in the short run. Meanwhile, Global changes taken shape. China’s cooperation with other major developed economies are plagued by developing countries is also extensive. The high unemployment rates, lacking the driving We need to realize that China is blessed with common interests between China and its force for economic growth, while emerging many favorable conditions for its stable and neighboring countries outweigh their conflicts. economies are under the double pressure of rapid economic growth over a relatively long Major events like the 2008 Beijing Olympics, inflation and a slower economic growth pace. period of time. In the second decade of the the celebration for the 60th anniversary of the The exchange rates of major currencies are 21st century, China is still in the important People’s Republic of China in 2009, the 2010 sharply fluctuating and commodity prices are period. Why?

46 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com Despite all the newly emerged conflicts and problems, China’s rapid development is still blessed with strategic opportunities

First, it was pointed out in the 16th CPC and the financial sector in major developed ties. For example, although China’s GDP National Congress held in 2002 that the first countries have been seriously hurt. Family growth rate stays high, its per-capita income two decades of the 21st century is an impor- debt rates and unemployment remain high in is still very low. There exists an imbalance tant period of strategic opportunities. What is developed countries, especially in the United between investment and consumption, with a the basis of this phrase? States. As a result, there is less demand. relatively low consumption level. China’s sci- In the international arena, peace and de- Moreover, developed countries’ excessive entific innovation is lagging behind developed velopment remain the themes of the times. reliance on the financial industry is unlikely countries. Meanwhile, the country’s input Global multi-polarization and economic glo- to continue. The global economic pattern in education, medical services, affordable balization are moving forward in a zigzagging that features energy supply from the Middle housing and social welfare is limited, unable way. Development of a more balanced econo- East, production in Asian countries like China to cover everyone equally. The social gap is my is making progress with each passing day. and consumption in American and European widening and social conflicts are increasing. The competition in comprehensive national countries is to be adjusted. In order to stimu- On the other hand, the second decade strength is becoming increasingly fierce. In late economic recovery, some countries insist of the 21st century is equipped with better the domestic arena, China has successfully on an expansionary monetary policy. This development conditions than ever before reached the first-step and second-step targets might lead to even more serious fluctuations since reform and opening up started in the of the “three-step” strategy of modernization. in the international financial market and a late 1970s. China’s development road has The Chinese people are now living relatively heavier blow to emerging economies. New obvious advantages. After 30 years’ reform well-off lives. This marks a great success for breakthroughs are made in science and tech- and opening up, China’s economic power the socialist system and a new milestone in nology innovation, with an accelerated pace and comprehensive national strength are on China’s history. The first two decades of the of industrial upgrading. With more complex a rapid rise. Since the 16th CPC National 21st century are critical for the improvement global competition, China is under heighten- Congress, China has abolished the agricultural of the socialist market economy system and ing external pressure. tax, implemented free compulsory education, the further opening up of the country. While the overall situation remains un- and set up a social security system covering Second, the profound changes occurring changed, profound changes have hit the world both urban and rural residents. in today’s world economy and politics are on economy and politics. This is the world we On the whole, China faces more opportu- the whole conducive to China’s peaceful de- are living in today. There are many opportuni- nities than challenges. In the face of so many velopment. ties as well as challenges. complex challenges, the key is to seek out the opportunities created by the challenges and to In terms of politics, major changes include Third, China’s economic and social n the United States’ return to Asia. Washington development has already reached a new his- be confident in the final success. has adjusted its strategy, extending NATO’s torical point. On the one hand, we are faced [email protected] antenna to China’s neighboring areas. Also, with a series of striking conflicts and difficul- the U.S. subprime credit crisis has caused the global financial crisis and later the sovereign debt crisis occurring in some European Dear Readers, countries have negatively impacted the world economy and affected the world’s political “Forum” is a column that provides a space for varying perspectives pattern. Particularly, it has weakened the United States’ control over the world. While on contemporary Chinese society. We invite you to submit personal the multi-polarization of the world pattern viewpoints on past and current topics (in either English or Chinese). becomes clearer, China insists on the road of peaceful development and holds a greater [email protected] influence in the world. In terms of economy, the world economic Please provide your name and address along with your comments. recovery from the financial crisis has been better than expected, but the real estate sector http://www.bjreview.com NOVEMBER 22, 2012 BEIJING REVIEW 47 EXPAT’S EYE Journey to the West Yunnan is a remote place of profound spiritual mystery and delicious yak kebabs By Evan Z. Hall LI SHIGONG

maker, with protecting As we looked for accommodations, we Xuanzang, as many were approached by a kindly old lady from monsters along the path the Bai ethnic minority group, who invited us considered the monk to stay at her home for a quarter of what we the “longevity monk” a might have paid to stay at a youth hostel. For tempting meal. At first the next few days we awoke to the crowing an unwilling bodyguard of roosters in this tiny courtyard enclosing a frustrated by his ward’s quaint vegetable garden. naivete, by the conclu- In Chinese, Bai literally means “white.” sion of the journey Sun After I overcame my typical linguistic confu- Wukong redeems his sion to understand that I am bairen (white past transgressions and people) and they are baizu (Bai ethnic group), attains enlightenment I came to realize that although my whiteness o west, young man, go west with help from his friends. tends to make me stick out like a sore thumb, and grow up with the coun- But I didn’t retrieve any lost sutras during of China’s many ethnic minority groups, the “Gtry,” is a phrase most com- my week visiting Buddhist sites in Thailand. I Bai people are among the most seamlessly monly attributed to newspaper editor Horace certainly didn’t find much peace during the gru- integrated into mainstream Chinese society. Greeley in 1865, as American westward eling series of bus trips through the unforgiving I fully realized this back in Lijiang’s expansion hit a fevered pitch at the end of the karst landscape of Laos. And when I crossed the Ancient City District, in the company of a bar U.S. Civil War (1861-65). The romantic ideo- border to Xishuangbanna of southwest China’s owned by a young Bai fellow, who serenaded logical spirit of manifest destiny inspired the Yunnan Province, I felt a lingering earthly at- us with a love song in his native language occidental ambitions of many young people tachment to the ubiquity of fresh bread and other while playing Western folk guitar, all before seeking new opportunities. Western staple foods in the former French colony decisively trouncing me in a Chinese drink- As a young man graduating from university, I had so recently exited. ing game. Chinese drinking etiquette gets me and one fully aware of the imperialistic conceits Perhaps this is what it would have been every time! informing that period of American history, I did like if Sun Wukong traveled unsupervised Yet for its remoteness, certain aspects with the slogan what Karl Marx did with G.W.F. by Xuanzang, and instead relied solely on his of Shaxi—not the least being the Bai and Yi Hegel’s idealism, and turned it on its head: In 108,000 li (54,000 km) cloud somersault to get people’s warm hospitality—made me feel my search for an approximation of the American from point A to point B. It was not until I arrived quite at home. After a punishing bike trek Dream, I went so far over the Pacific that I ended in Lijiang, northern Yunnan, that I was reunited through mountainous terrain at a far higher up finding work in bustling Beijing. with some of my friends from Beijing, and really mean elevation than I’m accustomed to, my So what is a small-town American expatriate began to enjoy my journey. friends and I stopped to dine at a courtyard to do in order to escape the manifest density and home. There was no menu, but the family breakneck pace of modern Chinese urban devel- The other ‘white’ people served purple potatoes and a local delicacy opment in search of a little inner peace? I took a Shaxi Town is located in Jianchuan County, called rubing, fried goat cheese. While my few pages out of the Chinese epic Journey to the Dali Prefecture, a few hours southwest of Chinese friends were nonplussed, my hanker- West, because although I’m not nearly as strong Lijiang. This quiet village is situated on the ing for Western comfort food of potatoes ‘ni’ or as clever as Sun Wukong, the mischievous Ancient Tea Horse Road. Along this trade cheese was immediately supplanted by a pow- Monkey King of legend, I’m equally hirsute and route, mule caravans exchanged Chinese tea erful yearning for more of the local flavors, to almost as handsome. for Tibetan ponies. I thought I was loaded the point where I begged my companions to Journey to the West recounts the adven- for bear with my 70-liter backpack, but the inquire about rubing at every single restaurant tures of a monk named Xuanzang on a quest bundles of tea bricks carried by ancient trad- we visited hence. So much for overcoming n to find an original Buddhist manuscript in ers dwarfed my meager burden. earthly attachments! India and bring it back to China. The epic It was also a destination for troublesome tale is allegorical of Buddhism’s deeply scholars, exiled from the ancient capitals by The author is an American living in Beijing rooted compatibility with indigenous Chinese imperial authorities, to live out their days re- [email protected] Taoism. Sun Wukong, an infamous trouble- citing poetry.

48 BEIJING REVIEW NOVEMBER 22, 2012 http://www.bjreview.com