A CHINESE WEEKLY OF NEWS AND VIEWS eview
, No.6 February 8-14, 1988 Zhao on Development of Coastal Areas Farmers of Zhangbaling Village, Jiashan County, Aniiui Province, studying the control of pests. /)r Zhang Yinzcni;
Huang Zhaogen, a farmer in , Henan Province, at his agriculture technology class. by Li Jin
P.
• Beijing««vir HIGHLIGHTS OF THE WEEK VOL. 31, NO, 6 FEB. 8-14,1988
CONTENTS NOTES FROM THE EDITORS 4 Zhao on Coastal Areas' Development Grain Production: Today and ToiTtorrow • During his recent inspection tours of southern coastal areas. Party General Secretary Zhao Ziyang outlined the EVENTS/TRENDS 5-9 development strategy for these areas: to make the best of their Emancipating the Mind strong points to develop labour-intensive industries and an Underlined export-oriented economy, and to expose producers to Hainan to Feature Market international competition and accustom them to operating on Economy the international market (p. 14). China's Agricultural Policies Chanllengcd Regulations to Keep out AIDS China to Wipe Out IVIonopoiy Prices Enterprises Likely to Bankrupt Merged • Some enterprises and trade associations have been taking China's 10 Best Athletes in 1987 advantage of their new freedoms to raise the prices of their More Losing Firms Going Bankrupt goods. This damages the interests of the state and the Weekly Chronicle (hm. .25-31) consumer, and the State Council has recently issued regulations to curb these activities (p. 20). iNTERNATiONAL 30-13 Middle East: Efforts to Reuolve The Palestinian Problem Grain Production Under IVIany Pressures FRG-Czechoslovakia: A.New Starting Point in Relations • Handicapped by a growing population, shrinking available Nicaragua-US: Peace Efforts farmland and reduced investment, China's grain production Encounter Interference cannot keep up with the fast growth of consumption. The USA: Reagan- -Before the ultimate solution is to intensify farming and increase per- Curtain Falls hectare yield (p. 4).
Zhao on Coastal Areas' Development Strategy lA Party Head Stresses Emancipation of the IVIind China Aims to Wipe Out Monopoly Prices 20 • Hu Qili stressed the importance of emancipating the mind. i China's Burgeoning Electronics I le criticized abstract argument over what constitutes socialism Industry 22 while the development of productive forces is ignored (p. 5). , Revaluation of NT$ Hits Taiwan's Exports 26 China's Burgeoning Electronics Industry i FROM THE CHINESE PRESS 28-29 BUSINESS/TRADE 30-31 • The new technological revolution and the mounting CULTURE/SCIENCE 32-33 domestic demand for electronic products have spurred China's TOURISM 34 electronics industry into a rapid growth. Successes have been COVER: An assembly line of colour scored in satellite telemetry and telecontrol, computer iclevisions at the Dongfcng Television development and new printing technology (p. 22). Factory in Beijing. Xu Xiangjun
Published every Monday by Subscription rates (1 year): ,.. US$24.00 BEIJING REVIEW General Editorial Office Tel; 8314318 Australia A.$24.00 Canada.. ..Can.$23.00 24 Baiwanzhuang Road, English Dept Tel 831.5599 Ext 546 New Zealand NZ.$33.0a Beijing 100037 Distributed by China International Book UK £13.00 The People's Republic of China Trading Corporation (GUOJI SHUDIAN) P O Box 399, Beijrng, China Hi NOTES FROM THE EDITORS
Grain Production: Today and Tomorrow by Han Baocheng
hina produced just over 400 in agriculture in recent years has worked out specific measures, Cmillion tons of grain last year, also affected grain production. including increasing winter crops about 10 milion tons more than in The state's investment in in the warm south, and expanding 1986, but 7.3 million tons less than agriculture's capital construction the area of multi-crop cultivation, the record year of 1984. has dropped from an average 11.9 as part of the plan to expand land percent of its total investment in given over to grain by over 1.9 Handicapped by a constantly capital construction in the pre- million hectares to bring the total increasing population and shrin• 1979 years to about 3.4 percent to the 1979 level of 110 million king available farmland, China's today. The stagnation of grain hectares. At the same time, the agriculture has failed for three production has concerned the State Council has decided to consecutive years to fulfil its whole of China. With this in mind. increase investment by opening up targets, and found difficulties in Party Genernal Secretary, Zhao more channels through which to keeping up with the fast growth of Ziyang, stressed the importance of finance agriculture. consumption. In 1984, China's grain production at the 13th Party To mitigate the effects of a per-capita grain output averaged Congress last October, and at the growing population and shrinking 394kg, but it dropped to 376 kg medting of the NPC Standing farmland, the State Council has last year. The problem has been Committee just recently. decided to organize people to aggravated by a mounting de• reclaim wasteland under a unified mand for grain-related commod• The problem, however, is not programme, especially in the ities such as pork, liquor, beer and likely to be solved soon, since Three River Plain (the Heilong- other alcoholic drinks. Reduced raising the price of grain, to make jiang, Songhua and Wusuli rivers) grain output has caused animal it worthwhile for farmers to grow, in northeast China and the valleys feed shortages, price rises and a will cause repercussions right of the Huanghe (Yellow), Huaihe slump in pig-farming. As a result, across the price system and have a and Haihe rivers in north China. It pork has been rationed again in direct impact on people's living is planned to improve 670,000 the state stores of many cities, standards. The prices for farm hectares and open up another Beijing included. produce can only be raised in line 670,000 hectares of farmland in with the state's financial strength the northeast, and in the north to The slump in grain production and in such a way as not to improve 13 million hectares of is due chiefiy to the low price of damage living standards. This low-yield farmland by 1990. With grain in relation to other farm year, the state will continue to the completion of these projects, produce. In 1985, the state reduce the amount of grain it these two areas will be able to deregulated the prices of most purchases under contract and will supply 50 million tons more farm products, leaving them to also slightly raise the prices of commodity grain and many other find their market value. Grain, some of the contract grains. In crops. The State Council has set treated as a special commodity, is addition, strict measures will be up a land development fund with an exception, and its price remains taken to guarantee the supply, at the taxes on farmland, which will controlled by the state. Commod• state-set prices, of materials such co-ordinate the land reclamation ity grain, supplied to the cities, is as chemical fertilizers, insecticides, on a larger scale. bought on contract by the state diesel oil and plastic sheeting grain management departments In the long term, China's which are needed for commodity from the farmers, and is also agriculture will continue to suffer grain production. bought off contract as surplus the dual pressure of mounting grain at higher prices. However, demand and inadequate re• the low price of the contract China plans to produce 410 sources, and it seems the only way purchases is a disincentive to million tons of grain this year. The out is intensive farming, increas• farmers. Ministry of Agriculture, Animal ing per-hectare yield, and deter• Husbandry and Fishery, and local mined efforts to maximize grain In addition, reduced investment agricultural departments have output. g
4 BEIJING REVIEW. FEBRUARY 8-14, 1988 EVENTSARENDS
whom belong to minority nationalities. Emancipating the IVIind Underlined The island is rich in natural resourses. More than 50 kinds of minerals are found there, and it n January 25 Communist Hu said it is necessary to urge also boasts tropical crops, marine Party leader Hu Qili stressed writers and artists to study O resources and tourist attractions. the importance of emancipating Marxism so that they may gain a However, because of its geograph• the mind, saying that the primary clearer understanding and a better ical isolation and some historical ideological task for 1988 should be capacity to analyze real life factors. Hainan's potential has not to achieve a deeper understanding without becoming confused by been I'ulK realized and it remains of Party General Secretary Zhao superficial appearances. an underdeveloped area, lagging Ziyang's report to the 13th Nevertheless, it is up to the far behind China's other coastal National Congress of the Commu• writers themselves to determine regions. nist Party of China. what to write and how to do it as To improve the situation, the He said that but for the process they engaec in their artistic 22nd meeting of the Sixth of intellectual emancipation creation, he said. National People's Congress started in 1978, the Party's current As regards academic issues and (NPC) Standing Committee, policies could not have been how to judge artistic creation, which took place last August 28- formulated and there would be no there should be an atmosphere of September 5, agreed on a proposal ongoing reform. democracy and equality which by then Premier Zhao Ziyang to Therefore, "only by further allows for free debate. • make the island a separate emancipating of the mind can we province. The proposal will be fully implement the guide lines of submitted to the first session of the the 13th Party Congress," he said. Seventh NPC. Hu Qili, member of the Hainan to Feature Standing Committee of the CPC Market Economy According to the planners, Committee and its Secretariat, development will proceed in three stages. The first will take three to was speaking to a meeting of Party s Hainan Island moves away five years and aims to outstrip the information chiefs from all parts from a closed economy it will A nation's average economic level of the country. go one step further than China's and double Hainan's current He said emancipating the mind four special economic zones in output. The second will take five involves the dual process of letting the market economy play a to seven years and aims to match upholding the four cardinal dominant role, say Xu Shijie and developed areas in China and principles (of adherence to Liang Xiang, who head a quadruple the island's current socialism, the Party leadership, preparatory group setting up the output. The third stage will take the people's democratic dictator• new province. ship and to Marxism-Leninism about 10 years and aims to surpass The new economic system will developed areas. and Mao Zedong Thought) and be unique to the island, they said daring to eradicate dogmatic on January 11. It entails building a Since the plans for the island interpretations or erroneous ideas market economy tl.at retains the were first announced, a Hainan alleged to be of Marxist. basic elements of socialism and craze has spread across China's He also criticized abstract combines what the planners call campuses and throughout the argument over what constitutes "effective practices and expe• country. In the past two months, socialism while the development rience" drawn from other coun• more than 10,000 people from all of productive forces is being tries. Exports will be emphasized corners of the country have visited ignored. "Productive forces," he and industry will become the the island to check out the said, "must be recognized as the leading sector, according to an possibilities. Others have sent decisive factor determining social initial economic development plan written job inquiries and appli• development." drawn up by the preparatory cations to the personnel exchange All policies and measures group and the Chinese Academy centre, the preparatory group or helpful to the promotion of of Social Sciences. other organizations on Hainan. productive forces are necessary Hainan, the country's second- According to a graduate under socialism; all factors largest island after Taiwan, is now student studying economic man• hampering the development of a special administrative district of agement at the People's University productive forces run counter to Guangdong Province. It covers an of China in Beijing, who is also a scientific socialism and should not area of more than 34,000 square leading member of the student- be permitted to continue t-o exist, kilometres and its population is sponsored Hainan Economy he said. 6.05 million, about one-sixth of Study Association, more than 80
BF.IJING REVIEW., FEBRUARY S-14, 19X8 5 • EVENTSARENDS percent of the 50,000 applicants young people but that all But in the following three years, it across the country are graduating applicants should be mentally was 379.1 million, 391.5 million college students. prepared for arduous work. and 400 million tons respectively. In new China's 39-year history, "Don't rely on a moment's "China's agricultural output since urban students have never before enthusiasm," the official said. 1985 can be characterized by one been so fascinated by this remote An elderly teacher who recently year of dramatic decreases island. travelled to Hainan said the island followed by two years of slow "The major reason for the craze is extremely beautiful with its growth," He said. is people's confidence, which has tropical scenery. "But so far it The minister blamed the been cultivated by the achieve• remains basically an uncultivated country's slow agricultural growth ments of the current reform and virgin land." There are almost no and increased consumption de• openness," said a doctoral student rail lines and the energy and mands as the main reasons behind at Qinghua University in Beijing, communications infrastructure the rationing of pork, eggs and who is going to take his family to pose big problems, she said. sugar supplies in China's major settle on the island. "What bothered me most was cities. "One reason for farmers' lack of power. In a hospital lack of enthusiasm for raising Observers say the craze con• attached to where I stayed, there grain, pigs, cotton and sugar- trasts sharply with the situation was no power in the dayfime. In canes is that the state pays such several years ago when the the evening, we were supplied with low prices for these commodities," Shenzhen Special Economic Zone, electricity for only one hour. After he said. "Low sale prices based on China's first experiment in the 7 pm, the hospital generated low purchase prices and high state field of large-scale economic electricity by itself After 11 pm, subsidies encourage increased reform, was set up. At that time there was no power at all. And I'm consumption." fewer people understood the told that almost every shop works potential of the special zone, and the same way. It's very inconve• Between 1979 and 1986, meat most graduates were more interes• nient. And the price of candles output increased at an annual rate ted in working in a major city than keeps rising. In addition, the of 12 percent, but pork production in Shenzhen, although some supply of running water is dropped by 360,000 tons in 1987. enterprising young people went intermittent." Increased meat output was offset there. Since then, Shenzhen has The teacher said fulfilling the by increased pork consumption. prospered, and three other special ambitious development plan will In the first half of 1987, state economic zones have been es• be tremendously hard work. purchases of live pigs dropped by 5 tablished. Today people generally "From the papers, we all know percent, while pork sales increased believe that the more fiexible that Hainan will be a very special 12 percent. Between January and policies to be implemented on zone — a future free port — and August, pork sales in major cities Hainan mean bright prospects for the young people are looking jumped 15.7 percent, with even the island and the people who go forward to it. But of those who higher figures registered in there. come here, I doubt that all of them Beijing, Tianjin and Shanghai. Young people see an opportun• will stay long," she said. • He said the current sluggish ity to devote themselves to the grain production is partly the island's development and at the result of shrinking farmland in same time achieve self-fulfilment. China's Agricultural recent years. The loss of cultivated They think they will have fewer land to construction or other non- opportunities for success if they Policies Ciialienged agricultural purposes has not been choose to stay in big cities, which effectively controlled. are full of talented people. A During the period of the Sixth recent survey showed that 80 hina is facing a shortage of key Five-Year Plan (1981-85), avail• percent of college graduates want Cagricultural and animal pro• able arable land shrunk by an creative jobs, which are thought to ducts, particularly pork. He Kang, average of about 470,000 hectares be easily found in some remote, minister of Agriculture, Animal a year. In the past two years, it frontier areas. Husbandry and Fishery, said in dropped further by a total 670,000 But some people are too his report to the 24th meeting of hectares. Thus it has been difficult romantic about the tropical the NPC Standing Committee on to increase the sown acreages of island, or are thinking about the January 16. both grain and cash crops like high pay they are likely to get For the past three years, grain cotton, sugar-canes and oil- rather than their potential contri• production has stagnated and bearing crops to ensure steady bution to the region. An official of failed to meet the state plans. In output increases in all of them. the preparatory group said the 1984, China's grain output hit the Meanwhile, state investment in local authorities welcome talented all-time high of 407.3 million tons. the agricultural infrastructure has
6 BEIJING REVIEW, FEBRUARY 8-14, 1988 dropped to 3.4 percent of the water conservancy facilities are in The vice-minister said the three country's total capital construc• bad repair," Wang Yongxing said, AIDS cases found in China were tion investment in recent years, "the government should take all foreign tourists or overseas compared with an average of 11.9 measures to encourage water Chinese. Two of them have died percent during the 29 years from conservancy projects." Wang also and the third has been deported. 1950 to 1979. As a result, water suggested a law be drawn up Meanwhile, four Chinese in conservancy facilities remained in concerning the protection of water Zhejiang Province were found to disrepair and the country's total and electric power resources. • have contracted the virus through irrigated farmland shrunk by imported contaminated blood 660,000 hectares between 1980 products. Three of them were and 1986. children and one has since died. Regulations to To prevent the spread of the Discussing He Kang's report, killer disease from abroad, she members of the NPC Standing Keep Out AIDS said, China has since 1984 Committee said there are conducted AIDS tests on some still very serious problems in hina's first administrative people coming from abroad. agricultural production which will C regulations designed to pre• Other steps towards education, become a major obstacle to the vent AIDS from entering or quarantine, scientific research, country's current drive for spreading in the country went into and training for workers dealing socialist modernization. Govern• effect on January 14. with AIDS have also been taken. ments at various levels in China The regulations were jointly The vice-minister commented should attach more importance to issued by the Ministry of Health, that the regulations "will not only the country's agricultural produc• the Ministry of Foreign Affairs, function to control AIDS in tion, they said. the Ministry of Public Security, China, but will have great China saw an encouraging the State Education Commission, significance to the development of development in agriculture in the the National Tourism Administr• preventive medicine in the period immediately after the ation and the Civil Aviation country." • implementation of the household Administration of China. They contract responsibility system, stipulate that all people entering according to Zhaxi Wangqug, a China must fill in a health form, Tibetan member of the NPC and foreigners intending to stay in Enterprises Likely to Standing Committee, but the China longer than one year must following policy of readjustment provide a health certificate which Bankrupt IVIerged of grain prices and reduction of includes verification of an AIDS state investment in agriculture test from a hospital. he merger of enterprises is a proved less successful. Trecently introduced practice in The work of basic organizations According to the regulations,, some Chinese cities. So far, 27 in rural areas has been at a the importation into China of factories on the verge of standstill over the past few years. blood, blood products, organisms bankruptcy in Wuhan have been Zhang Chengxian commented. and animals possibly contami• merged with local profitable This has hindered capital con• nated with the AIDS virus is enterprises. The practice was struction for agriculture. "Devel• prohibited. described by the government of oping animal husbandry without The regulations state that it is a Hubei's capital as an effective way consideration to the pace of person's duty, when under to deepen enterprise reform in the agricultural and forestry develop• investigation, to provide inform• city. ment has resulted in damage to ation to health officials or Wuhan is one of the 16 pilot arable land," Lin Yishan said. departments. But to protect AIDS cities in China to attempt Some members suggested that patients and virus carriers, the structural reforms to the urban farmers' enthusiasm should be regulations state that their names economy. In March 1986, the fully mobilized through increases and addresses can not be made Wuhan Radio Fittings Factory in incomes and the relaxation of public by any unit or individual. bought out the Jiangan Lock controls on the price of farm and "More than 72,000 AIDS Plant of Wuhan, drawing muCh sideline products. victims have, so far, been concern. The practice then Wang Pu recommended that identified in 128 countries, and the continued in the city, encouraged agricultural legislation be impro• World Health Organization esti• by the Wuhan municipal ved and laws concerning grain mates that there will be 50 to 100 government. production and investment in million carriers of the AIDS virus "Some enterprises, which have agriculture be passed as soon as by 1991," said He Jiesheng, vice- been or are going bankrupt, may possible. "Since many farmland minister of Health. see better financial results after
BEIJING REVIEW, FEBRUARY 8-14, 1988 7 joining with competitive com• result of poor management, are ment personnel in some failing panies," said Zhao Baojiang, unable to repay the loans. The enterprises adopted a passive mayor of the city. bank has now recovered more attifude to mergers, fearing that than 10 million yuan through the they would lose their positions The director of the Wuhan auction of the 27 failing after their enterprises were Towel Plant said the plant has enterprises. merged. In this situation, the expanded its production and In the city of Baoding. Hebei responsible departments would lowered costs since it bought out Province, competition has have to facilitate a coercive the Third Towel Plant of Wuhan. brought about various changes in merger. After only one month, the plant the relations between enterprises. In the past, thousands of set aside 3.5 million yuan for The practice of merging poorly- workers in unprofitable enterpr• production expansions and in• performing enterprises with suc• ises were ideologically confused by creased profits by 400,000 yuan. cessful ones is considered one of stagnant production and slack "The auction of failing enterprises the main changes. management. Many of them felt will speed up capital turnover and Mergers between enterprises the prospects for their companies benefit intensive management," successfully transformed failing were gloomy. After the mergers, said the director. enterprises and brought them these workers were assigned new According to an official of the increased economic results. jobs and guaranteed wages and local industrial and commercial In the process of realizing bonuses. Some enterprises also bank, as much as 10 billion yuan mergers between enterprises, some provided training for all em• has been extended in loans over departments concerned in Bao• ployees. All these changes quickly the past few years to some ding saw administrative measures set their minds at rest. unprofitable plants which, as a as necessary at times. Manage•
China's 10 Best Athletes in 1987
Top row, from left: He Zhuoqiang (weightlifting), Lou Yun (gymnastics), Huang Xiaomin (swimming), Nie Weiping (go), Yang Yang (badminton) Bottom row, from left: Gao Fenglian Judo), .Hang Jialiang (table tennis). Li Lingwei (badminton). He Yingqiang (weightlifting), Liu Haiguang (soccer)
s BEIJING REVIEW, FEBRUARY 8-14. I9K8 More Losing Firms. Weekly Chronicle January 28 (January 25-31) • The China National Offshore Going Banl BEIJING REVIEW, FEBRUARY 8-14. 1988 9 • INTERNATIONAL The four Western European MIDDLE EAST countries, maintaining their close political and economic relations Efforts to Resolve the Palestinian Problem with Egypt, support the intern• ational peace conference proposal and share fcommon stands with the The Palestinian struggle attracts international attention and Arab countries on the settlement calls for a just solution to the problem. of the Arab-Israeli conflict and the Gulf war. Mubarak requested that e upsurge in the Palestinian conference to resolve the Palest• the four countries put political and rstruggle against Israeli occup• inian problem. economic pressure on Israel to ation of Arab land, which began With its return to the Arab ease its position. He also hoped last December, is still continuing. world, Egypt is increasing its role that they would use their positions Mass protests and demonstrations in Arab affairs. President Hosni as allies of the United States to broke out almost daily during the Mubarak, before visiting Western influence Washington. past weeks. The situation has once European countries and the Federal German Chancellor again brought focus to the United States, called for a six- Helmut Kohl told Mubarak the Palestinian problem and intern• month halt to violence between conference issue will be put on the ational calls for its resolution have the Palestinians . and Israelis to agenda of an extraordinary been raised from all quarters. pave the way for peace in the European Community summit The current struggle of the Middle East. He also set four goals scheduled to be held in Brussels Palestinian people is characterized to be met in the six-month period: this month. by their clear and common aims to a halt lo all Israeli settlement The United States was the key oppose Israeli occupation, obtain operations, respect for the free• consideration in Mubarak's tour. freedom and establish their own dom and political rights of the After conducting successful visits country. A new generation of Palestinian people, the ensured to eight West Asian countries not Palestinians with the indomitable safety of the Palestinian people long before, Mubarak not only Palestinian will are rismg at the through international guarantees, represented Egypt but also the forefront of the struggle, injecting and an international peace Arab countries in his request that new vigour into the cause. conference on the Middle East. He the United States take the Last year, Israeli Premier stressed discussions on the new- responsibility for holding an Yitzhak Shamir refused time and peace proposal and sought international conference and see• again to hold an international support for it in the course of his king a resolution to the Palestinian conference on the Middle East visits to Federal Germany, problem. situation under UN auspices, and Britain, France and Italy and the The US position indicated tried to force Arab frontline United States. recently by a White House countries to make a separate peace with it based on the acceptance of Israel's accomplished invasion On January 23, more than 50,000 Israelis in Tel Aviv protested against the oppression and occupation of Arab territories of Palestinians by authorities. in an attempt to blot out the Palestinian problem. Meanwhile the Gulf tension distracted international attention from the Arab-Israeli conflict and the Palestinian problem at its core, and diverted the energies of Arab countries from resistance to Israeli invasion and expansion. The West Bank and Gaza Strip became "forgotten corners." However, last year's massive Palestinian demonstrations shat• tered Shamir's plans. Since the beginning of the upsurge, the Palestine Liberation Organization (PLO) has appealed for intern• ational support for the Palestinian people and an international 10 BEIJING REVIEW, FEBRUARY 8-14. 1988 spokesman is that direct negoti• ities are also facing internal The international community ation is necessary between Israel pressure. Israeli Foreign Minister now requires urgent efforts for the and its neighbours, and that an Shimon Peres, leader of the just settlement of the Palestinian international peace conference Liberal Labour Party, praised problem. With the hightening of could be a helpful vehicle to Mubarak's peace initiative. On the Palestinian struggle, strength• achieve this. The Reagan admini• January 23, 50;0OG Israelis in Tel ened solidarity in the Arab world stration declined to clarify its Aviv held demonstrations oppos• and the development of intern• position on PLO participation in ing their government's policy on ational forces demanding a the conference. the West Bank and Gaza Strip. resoludon to the Middle East Mubarak publicly stated that he Some demanded that the Shamir problem, Israel, in its repeated did not expect the immediate regime end its occupation of Arab attempts to forcibly occupy Arab acceptance of his proposal by all territories and hold peace negoti• territories, can only become more parties. He recognized the dif• ations with concerned Arab isolated than ^ver. ficulties involved in changing the parties. by Zhao Xin US position on the PLO and Palestinian rights to self- determination. Moreover, this FRG-CZECHOSLOVAKIA year is one of general election for the United States, so exactly how A New Starting Point much can be achieved by the in Relations Reagan administration goes with• out saying. It will by no means be Federal German Chancellor Helmut Kohl's visit to easy for Mubarak to make any real breakthroughs towards Czechoslovakia is a sign of improved relations between the changing the traditional pro- two countries and between the East and West. It is also seen as Israel US Middle East policy. a vital move on the part of Federal Germany towards However, Egypt's efforts will promoting relations with East European countries. strengthen the position of the Arab countries and promote moves for peace in the Middle uring his two-day (January 26- promote understanding and co- East. D27) stay in Prague, Federal operadon. Soviet leader Mikhail Gorba• German Chancellor Helmut Kohl Relations between the two chev recently stressed the need for held talks with Czechoslovak countries have been cool due to a speedy solution to the Arab- leaders on political, economic and both historical and existing Israeli conflict and for a Middle human rights issues. Czech• factors. Except for an ecounter East peace conference attended by oslovak leader Milos Jakes told between Chancellor Kohl and the PLO, the five permanent Kohl he has high regard for the President Husak at the Moscow members of the UN Security development of relations achieved funeral of late Soviet leader Council and other concerned by the two countries in recent Konstandn Chernenko in 1985, pardes. years. He briefed Kohl on the the heads of these governments UN Secretary-General Javier principal goals of economic have not met in the past 15 years. Perez de Cuellar on January 22 reform in Czechoslovakia and said Historically, the Munich agree• called on the Security Council to they open up new possibilities for ment signed just 50 years ago by initiate an urgent international further co-operadon between the Neville Chamberlain of Britain, effort to solve the Palestinian two countries in economics, Edouard Daladier of France and problem through a UN-sponsored science and technology. Adolf Hitkr of fascist Germany international conference. This was Kohl's first visit to the amounted to a sell-out of Chinese Communist Party East European nation, but the Czechoslovakia. This was fol• leader Zhao Ziyang in a recent second one by a Federal German lowed by fascist occupation of the letter to Chairman Yasser Arafat chancellor since the two countries East European country the of the PLO reiterated China's established diplomatic relations in following year. This painful support of the Palestinian people 1973. At that time former period of history left an indelible and for the convocation of an Chancellor Willy Brandt also paid mark on the minds of the international conference on the a visit to Prague. Czechoslovak people, and has Middle East question under the The visit, which took place at a stood in the way of steady auspices of the UN. dme when East-West relations development of bilateral relations. Israeh Premier Shamir rejected were showing signs of relaxation, both Mubarak's proposal and de offered a welcome opportunity for During the post-war period, the Cuellar's call. But Israeh author• the two neighbouring countries to two countries, as major members BEIJING REVIEW, FEBRUARY 8-14, 1988 11 •1 INTERNATIONAL of two opposing military blocs, To increase the role of Federal Soviet relations. Therefore, there NATO and the Warsaw Pact, were Germany and Western Europe in is a long way to go before Bonn poised on the frontline of East- East-West relations, Bonn has and Prague, East and West West rivalry with a massive since 1983 increased contacts with Europeans, can achieve a real concentration of troops and East European countries. Last closeness. rockets. Progress in bilateral year alone, it played host to heads relations was out of the question of state or government from However, the general trend of then. Bulgaria, Yugoslavia, the German increasing European co-operation Although relations between the Democratic Republic and Hun• through contacts and dialogue will two countries did not reach a gary. At the same time. Federal not be reversed. Recent develop• complete standstill in the past 15 German Foreign Minister Gen• ments have proved to Europeans years, substantial progress was not scher visited Bulgaria, Czech• that it is not in their interests to made until the detente in East- oslovakia and Romania and just attach East and West European West relations in recent years. The returned from a trip to Poland. It relations entirely with relations foreign ministers of both countries is believed that talks between Koh between the United States and the exchanged visits in 1984; then and Czechoslovak leaders wil Soviet Union. More and more there was the funeral encounter exert a positive influence on the Europeans have come to realize between Kohl and Husak in continued relaxation of East and that they should take matters of Moscow the next year, and West European relations. regional security and peace into another exchange of visits by Rapport between Federal Ger• their own hands. Only in this way, foreign ministers in 1986. many and Czechoslovakia, as well can peace and security in Europe Besides, Federal Germany is as within Europe as a whole is be safeguarded. Kohl's trip to Czechoslovakia's largest trade largely subject to the development Prague is an obvious reflection of partner in the West. Exports to of East-West relations and this. Czechoslovakia showed a marked restricted in particular by US- by Dai Lubin increase in 1987, while trade with other East European nations generally declined. Trade between the two countries totalled 2 billion NICARAGUA-US marks (US$1.24 billion) in the first half of 1987, with Federal German Peace Efforts Encounter Interference exports up 11 percent to one billion marks (US$620 million). Nicaragua took definite, significant steps towards peace Kohl's choice of Czechoslo• vakia for his first overseas visit this both during and since the January 15-16 summit meeting year is a further proof of of the five Central American presidents held in Costa improvement in bilateral re• Rica. US President Ronald Reagan's insistence on lations. This warming-up in their contra-aid has met strong resistance at home. relations is the result not only of improvements in East-West rel• ations, but also the down-to-earth ie two-day Central American issued, demanding the immediate and patient approach of both Tsummit in the capital of Costa implementation of those clauses in countries. In the words o(^ Federal Rica, San Jose, the first since the the peace pact concerning cease• German Foreign Minister Hans signing of the August 7 peace fire, amnesty, democratization, Dietrich Genscher, "positive ele• accord, was crowned with success. including freedom of the press and ments in the bilateral relations In the early stages of the summit political pluralism, and an end to have outweighed existing the condemnation by Honduras aid to irregular forces. problems." and El Salvador of Nicaragua's failure to implement the Central Ortega's statement was mainly Kohl's recent visit represents a American peace agreement and to the effect that the Nicaraguan new starting point and has the dispute between the five government would end its state of instilled fresh dynamics to presidents over whether to defer emergency, hold immediate direct bilateral relations in the political, the implementation of the peace ceasefire talks with the contra economic and cultural spheres. In pact caused an impasse. However, forces, issue an amnesty decree as a broad sense, the visit has the timely 4-point statement by soon as a ceasefire was achieved significance to Europe's security Nicaraguan President Daniel and the contra rebels returned to and stability, to the disarmament Ortega restored the situation so normal life as citizens, and process and to future East and that agreements could be reached, conduct elections according to West European relations. and a joint statement was later schedule. 12 BEIJING REVIEW. FEBRUARY 8-14. 1988 The statement indicated con• based on the common efforts of January 21 when the mayors of 40 cessions on some significant issues the countries of the region to avoid US cities issued a joint statement, by the Nicaraguan government, war; the US government should opposing the federal government's and it is these concessions that respect the process, limit its reduction of funds to domestic saved the summit from failure. involvement, and support rather cities while it continued sending The 4-point statement was also than hinder the intentions to huge sums of money in aid to the welcomed by Nicaragua's oppo• achieve peace. An even more Nicaraguan contra rebels. sition parties who regarded it as a pointed attack was made on by Chen Xiao major contribution to national reconciliation. Nicaragua is the focus of conflict in Central USA America and some observers maintain that ^e Nicaraguan Reagan — Before the Curtain Falls government's move will un• doubtedly facilitate the progress As well as some thorny domestic problems, Reagan will have towards peace in Central to face the challenges presented by a new round of arms talks American. and aid to Nicaraguan contras in his last year in office. Immediately after the summit ended, the Nicaraguan govern• ment held its first direct talks with nited States President Ronald Resuming aid to the Nicar• one of the anti-government U Reagan delivered his State aguan contra rebels topped the organizations. On January 19, a of the Union address on January agenda of Reagan's foreign policy. presidential decree announced the 25, laying out the agenda for his Reagan said that he would lifting of the state of emergency last year in office and trumpeting a formally submit to Congress a and an end to the anti-Somoza resurgence of political and request for additional aid to the tribunals. On January 24, the economic freedom, the twin goals contras and urged the law-makers Nicaraguan government held of his conservative revolution. to approve the request. But ceasefire talks with a contra force Reagan gave his address as according to some analysts, there minorities organization. On Congress opened for the 1988 will be fierce manoeuvring in the January 28, the Sandinista session. The Democratic- legistative body and the White government held direct ceasefire controlled Congress is likely to House. Opponents to the talks with contra rebels. back Reagan on some of the president's initiative said that new However, the peace'efforts of questions on arms control but US aid would torpedo the regional the Nicaraguan government are oppose him on further aid to peace plan signed in August by the coming up against attempts by the Nicaraguan contra rebels. leaders of the five Central United States to prevent any real Summing up his record over the American countries. progress. The day after the San last year using the words strength, The treaty on eliminating Jose summit ended. President prosperity, peace and freedom, intermediate-range nuclear forces Reagan, reluctant to give up US Reagan's speech ' concentrated (INF), signed last year by Reagan military intervention in Central heavily on the effervescent US and Soviet leader Mikhail Gorba• America, asked Congress for more economy. He said that one of his chev, is now on its way to the aid to the Nicaraguan anti- basic objectives in the year ahead Senate. Reagan pressed the government rebels. On January is to maintain US economic Senators to approve it so that he 19, the Reagan administration growth, low inflation and full will be able to leave for Moscow to decided to resume US military aid employment, the success of which attempt to reach another accord to the contra forces. relies on the control and eventual elimination of federal deficits. He on halving long-range offensive nuclear weapons arsenals. But the demands of the Central once again requested the right to American nations and people for veto individual appropriation bills Apart from opposition from peace, the prompt settlement of and the passing of a constitutional some conservative elements in the region's conflicts and non• amendment on budget balancing. Congress, expected fierce bargain• intervention by the superpowers Turning to trade problems, ing over category, verification and are gaining strength. And Reagan emphasized the danger other technical questions concern• Reagan's tough Central American posed by trade protectionism to ing strategic weapons reduction policy is receiving more and more the global economy, pointing out will make it difficult, if not criticism and opposition at home. that a strong economy, full impossible, for Reagan to gain On January 19, a US news daily employment and even the future another triumph in his last year in carried an article saying the of the United States hinge on free, the White House. Central American peace process is open and fair international trade. by Xin Di BEIJING REVIEW. FEBRUARY S-I4. 1988 l.t m ARTICLES Zhao on Coastal Areas' Development Strategy Since last November, Zhao Ziyang, general secretary of the Chinese Communist Party Central Committee, has conducted two inspection tours of coastal Zhejiang, Jiangsu and Fujian provinces and the Shanghai Municipality. The following are his remarks on the economic development for these coastal areas which he delivered during the tours. he state of the reform, opening changes and competition, and If the coastal areas, including Tup and economic construction energetically develop an export- the Zhujiang (Pearl) and Chang- in the coastal areas is excellent. oriented economy. jiang (Yangtze) river deltas, the Importing foreign investment and expanding exports to earn more foreign exchange are both good trends. Facts would indicate the level of economic development in the coastal areas will rise considerably so long as we adopt a correct development strategy. Good Opportunity Economic development in China's coastal areas is making the best use of a good opportunity. Due to rises in labour costs, the developed world has been readjus• ting its industrial setup, and moving labour-intensive indus• tries to places where labour costs are low. In this process, China's coastal areas are attractive since they have low-paid but fairly skilled labour, good transport facilities and infrastructure, and very importantly, a good scientific and technological development potential. So long as they do well, China's coastal areas should be able to secure sizable foreign investment. China has in the past missed a few good chances for develop• ment, we must not miss this one. We must have a sense of urgency. To make use of this opportunity, the coastal areas must draft an appropriate development strategy. It is necessary for the coastal areas, with their popul• ation of one or two hundred million, to take their place on the international market in a planned way and step by step get further involved in international ex• 14 BEIJING REVIEW, FEBRUARY 8-14, 1988 southern Fujian triangle, and the Shandong and Liaoning penin• sulas, fulfil their potential on the international market, and develop a solid export-oriented economy, this will not only expedite the economic development of the coastal areas themselves, but will certainly also boost the develop• ment of the central and western regions. Politically and economi• cally, this is of great strategic significance. To realize this development strategy, China should attend to the following priorities: First, it is necessary to lay emphasis on developing labour- intensive industries, China has an ample supply of human resources, labour costs are low but their Zhao Ziyang inspecting an export sports shoe factory in Quanzhou during his tour of quality is good. We should make the southern Fujian triangie last November. XIAO HUUIA full use of this advantage, and make energetic efforts to develop labour-intensive industries, as well attention should be paid to conditions can begin to produce as industries that are both labour- developing labour-intensive in• replacements for components and and knowledge-intensive in the dustries, as well as those which are spare parts which are now coastal areas. Processing with both labour- and knowledge- imported as well as raw materials, supplied and imported materials is intensive, because labour-inten• so as to raise the value added on in fact export of labour in the form sive industries can make an easy products and improve the export of finished products, and it should start and suit the current products. be actively developed. We have conditions in many of our coastal In attracting foreign funds, the plenty of coal which can be used to areas. focus should be on drawing generate electricity. The coastal Second, the processing indus• investment from overseas busi• areas must develop their power tries in the coastal areas must nesses to develop the foreign- industry, so as to provide energy follow the principle of "putting funded enterprise sector. This way for the development of labour- both ends of the production the foreign investors will make intensive industries and an export- process (the supply of raw common cause with us; they will oriented economy. We have plenty materials and the marketing of have the motivation to improve of cheap labour, coal, sand and products) on the world market" product quality, technological stone for building, and they can be and import more raw materials level, enterprise management and used to develop the building and export more products. What product marketing. materials industry, which is also a with the increasing demand for large labour-intensive field. The raw materials from the coastal export of building materials has processing industries and the great potential and a bright future. economic development of the Reforming Trade Structure inland areas, the old method of The vast rural areas along the relying solely on the inland areas For this strategy to succeed, it is coast should also look to the for all raw materials will not do, necessary to reform the old foreign international market and to an for it will inevitably aggravate the trade structure and make sure that agriculture which earns foreign competition for raw materials the localities and enterprises can exchange. While making efforts to between the coastal and inland import and export as they see fit. develop labour-intensive indus• areas. The fundamental problem of tries, the special economic zones, The various localities should be China's current foreign trade major cities and other places with encouraged to use part of the structure is the practice of "eating appropriate conditions can also foreign exchange they retain as from the same big pot" (meaning develop some high-tech industries. working funds, and energetically that foreign trade companies But judging from the overall develop processing with imported receive the same benefits regard• situation at present, primary materials. Places with appropriate less of their efficiency—Tr.). BEIJING REVIEW, FEBRUARY 8-14, 1988 15 •1 ARTICLES I— volatile, whose demand can swing i by wide margins. Therefore, a big country like ours should have some "regulatory" stockpile, which can help keep domes'tic prices relatively stable and enable us to stand changes in the world market. Role of Rural Enterprises To develop an export-oriented economy in the coastal areas, there are matters of policy, systems and enterprise manage• ment still to be solved. The focal point of our policies should be to XUE CHAD mobilize the initiative of the The decorative porcelain produced by the Baitenghu Joint Development Company in Doumen County, Guangdong Province, sells well both at home and abroad. people, tap their potential and let them work with all their might. Only then will there be any hope of Solving this problem will certainly reform can not proceed well. Only establishing an export-oriented release great potential. by giving foreign trade enterprises economy in the coastal areas. It is right that we should move full authority over management Experience over the last few carefully on the issue of reform. on the basis of making them years has taught us that a good We have been prudent. Comrade wholly responsible for their own system allows the realization of Deng Xiaoping has repeatedly performance, can production be potential, while a poor one will told us to be a little more bold and co-ordinated with marketing and lead inevitably to lots of not be afraid of taking risks. His the producers be properly exposed difficulties. Over the last two opiniohs are very important. If we to international competition and years, we have done a great deal to always hesitate in making deci• gradually get accustomed to improve the management mech• sions, we will accomplish nothing operating on the international anism of large and medium-sized and miss good opportunities. Of market. enterprises. We must continue course, I am not for adventurism. making realistic efforts to rejuve• But decisions must be made where There are two other problems nate all our large, medium-sized they are needed. It is high time we related to foreign trade. First, I and small enterprises. But, given solved the problem of the "same suggest the various localities put our present economic environ• big pot." aside as much of their retained ment, it will be very difficult to foreign exchange earnings as invigorate the large and medium- As for the reform of the possible as their working funds sized enterprises in the short term. structure of foreign trade, I said in while the central government can Small enterprises, meanwhile the report to the 13th National continue making allocations to the those in the rural areas in Party Congress, "The reform localities. This would help make particular, are filled with vigour should be designed to give foreign up the shortage of foreign from the very start because they trade enterprises full authority exchange needed to import raw are operating with a sound over management and full res• materials and export products on management mechanism. Rural ponsibility for profit and loss. This a large scale. enterprises in the coastal areas will ensure better co-ordination now look set for a major boom. between industry and foreign Second, it is necessary to trade and lead eventually to a introduce a system of risk funds Since they came into being, the system whereby foreign trade for farm and sideline products. To rural enterprises have operated the corporations can act as agents for link the coastal areas' economy mechanism where they take sole other enterprises in the export of with the international market responsibility for their perfor• their commodities." Letting for• more closely, we must find a way mance. They have grown amid eign trade enterprises take full of mitigating the influence of competition where those which responsibility for their own profit swings in the international succeed develop, and those which and loss is the essential first step. If market. There are some products fail go bankrupt or are forced to this question is not solved, the whose market is particularly switch to other lines of prodiac- 16 BEIJING REVIEW, FEBRUARY 8-14.. 1988 9 tion. They have a strong sense of making full use of their existing backward, have great potential. competition and survival. They facilities, and not spend precious The key lies in management and in are flexibly managed and able to money on constructing more motivating the people. Experience adapt themselves to market buildings. They should develop over the last few years has proved changes. They also offer good like a snow ball — first accumulate that the contract system promotes services, and their delivery time is funds by exporting products and the formation of such a short. All this makes foreign trade then import some new equipment mechanism. companies happy to deal with and build more facilities. They The specific methods of running them and foreign business people must improve the training of an enterprise well must be to co-operate with them. Gener• workers and make efforts to explored in practice. The principle ally, rural enterprises are not improve the quality of their labour is to let competent people run overstaffed like large state enter• force. At present, only by having a enterprises. Those who are prises, and are efficiently low-paid, but highly qualified capable of generating profits for operated. In the face of fierce labour force, can the rural the state and the employees should market competition, rural enter• enterprises hope to keep a good be allowed to take charge, prises keep a close watch on position in the world market. regardless of whether they are technological advances and the Chinese or foreign, local or from development of new products. The another place. Larger enterprises management mechanism of the Foreign Management can run smaller ones and small rural enterprises is conducive to enterprises may run large ones. exports and helps them hold a Backward management of en• The methods can be management strong position in the market both terprises is common in China, and under contract, or under lease, or at home and abroad. the scale of the waste caused by management with joint stocks. Over the last few years, rural poor management is horrifying. It It is necessary to let foreign enterprises have multiplied in the is true that some of our equipment business people manage foreign- Zhujiang and Changjiang river is outdated. But our management funded enterprises. For a while, at deltas, as well as on the Shandong is even more backward. Our least, the management of Sino- and Liaodong peninsulas. Many enterprises have many ad• of them started in extremely vantages— low labour costs, high simple and crude conditions. This technological skill and fairly good Small lathes produced by the Ningbo can change very quickly. In factory buildings and equipment. Machine Tool Factory are exported to the Wujiang County, Jiangsu Pro• However, these advantages are vince, I visited a textile mill. It is more often than not offset by poor fitted with advanced Swiss management. equipment. Many rural enter• In order really to strengthen prises have put up new factory and improve enterprise manage• buildings which are just as good as ment, we must resolve to state-owned factories. The pro• implement the contract system. portion of foreign exchange Only by doing so, can ownership earned by rural enterprises within and management of enterprises be the total of the coastal areas has truly separated and the directors' shot up. They have become the managerial authority be genuine. new impact force for the My discussions with factory development of labour-intensive directors in Shenyang suggest that industries, the establishment of an the bigger the risks involved in a export-oriented economy, and the contract, the greater the authority expansion of foreign currency- of the director. Some places have earning exports in the coastal tried collective risk bearing, and areas. bidding for contracts. To expand further, rural When a contract is a success, enterprises must continue to work everyone benefits. If it is not, all in a spirit of austerity. In the first the people who took on the risk stages of the development of an suffer smaller bonuses and export-oriented economy where welfare. Everyone is in the same there is a shortage of funds, boat. This will give rise to many enterprises should use what funds new ideas for success and will there are to import foreign result in the eventual improve• wherewithal for processing and ment of management. Now, all assembling export products while factories, both advanced and BEIJING REVIEW, FEBRUARY 8-14, 1988 17 m ARTICLES many advantages. First, it will help shake off the fetters of the old system, and promote strict man• agement. Second, the foreign managers tend to show more concern for product quality, technological advance and the marketing of products abroad. They will make earnest efforts to tackle these issues and increase the enterprises' income. Third, their financial success will attract other foreign business people to China. Fourth, they can help us train modern managers. And fifth, they can help train our workers, thus improving the quality of the labour force. CUIBAOZHANG .Last year, this electronics factory with its workforce of 100, in Putlan County, Fujian Province, made 300,000 yuan in profits by processing supplied materials. Science and Technology foreign joint ventures and co• natives of that country. Some of We have quite a potential for operative enterprises should be our state-owned enterprises, such scientific and technological devel• left to the foreign side or left as the Wuhan Diesel Engine Plant, opment. Very few developing mostly to them. They should be have invited foreigners as direc• countries have as strong a force as allowed to run the enterprises tors, and this has proved a great we do. The problem is that we according to international norms: success. To allow foreigners to run have not made full use of this advertising for employees publicly joint ventures and co-operative advantage due to problems in our and freely and dismissing enterprises should not be a policies and systems. It is workers according to contract. In problem so long as they run them necessary to mobilize and organ• a word, it is necessary to create an well. ize our scientific and technological environment where foreign man• Allowing foreigners to run such force and see to it that it makes agers can run enterprises accord• enterprises benefits both the maximum contributions to ing to international standards. foreign side and our side and has China's participation in intern- Whether an investment envi• ronment is good or not can be judged by whether a foreign Various decorative plates and murals made by Yantai's Zhifu District Enamelware Factory are exported to Europe, Japan, the United States and Hong Kong and IVIacao. business can make a profit or not. WANG HUl The key lies in letting foreign managers run enterprises directly and respect their managerial authority, while protecting the legitimate rights of the Chinese party involved. If a foreign manager runs an enterprise well and makes more money by exporting more products, we all get an increased share. In the past there was an erroneous view which said that to let a foreigner run an enterprise was to give up sovereignty. This view must be corrected. It is common practice to hire pro• fessional managers from abroad. In the developed Western coun• tries, the managers of big companies are not all necessarily 18 BEIJING REVIEW, FEBRUARY 8-14, 1988 ational role. The participation »of that can use and demonstrate drastic reduction in the equipment scientists and technologists in research results—should be set China must supply and helping the China's reforms is extremely up. This will be conducive both to state to bring investment and important to the realization of the the development of scientific credit in fixed assets under development strategy for coastal research and to our economic control. areas. develppment. To import foreign funds for the It is imperative to change the technological revamping of exist• view in the field which looks down ing enterprises and let foreign on small enterprises and sees work The Coast and Inland Areas businesses take care of the in rural enterprises as a loss of management, it is necessary to At present, there are two face. In fact, the rural and make a realistic evaluation of the contradictions that merit atten• township enterprises are the most original property and sort out the tion: One is the contradiction ready to assimilate the results of problems of cutting down the arising from the transition from scientific research. Once science managerial staff and finding new the old system to a new one, and and technology are combined with jobs for the redundant workers. the other is the imbalance in the their flexible management, rural Thus importing foreign funds for development of the coastal and enterprises will have a greater the technological renovation of inland areas. These problems must future. existing enterprises not only helps be handled properly. We must integrate scientific save money and quickly raise the research with production and link There are big differences in the technological level of old enterpr• the interests of scientific research economic and cultural conditions ises, but in the process also institutions with their research of the coastal and inland areas, promotes reforms in the personnel results. We must allow the and it is impossible to conduct and labour systems of our research insititutions to earn a economic development through• enterprises. This is of great living through their research out the country at a uniform pace. significance. In this regard, results and thus introduce compe• First, it is necessary to ask the experiments should be conducted tition into scientific research. The coastal areas, as they work on and practical measures worked better their research results, the their reforms and on expediting out. more they are needed by society their opening up, to avoid Finally, to develop their and the greater their rewards. unnecessary conflicts and frictions economy, the coastal areas should Some people say that in this way with the country's economy as a find more ways of raising all research institutions would whole. This is especially pertinent construction funds from their own undertake short-term research to pricing. The measures they localities. They should make every projects at the cost of long-term adopt should be well thought out effort to increase production and ones. This is nothing to be afraid and they should do all they can to cut expenditure. This is the most of The long-term scientific reduce any bad effects these important point. In the coastal research projects, which have an measures might produce on the areas, there are many poorly important bearing on the develop• inland areas. managed small shops and fac• ment of the country or of a Second, while seeking economic tories which have long been losing pardcular region, can be in• devleopment, the coastal areas money, and become financial corporated into the plans of should avoid scrambling for raw bufdens. They can be auctioned governments at various levels and materials and a home market with off to collectives or individuals or be given special support. They can the inland areas. Instead, they other efficiently managed enterpr• be distributed through public should endeavour to build an ises. This should greatly improve bidding. export-oriented economy. their chances of turning a profit, We should allow scientists to Third, in importing foreign and the state will be able to divert start up their own enterprises, funds, the coastal areas should lay more funds to key construction especially those in technology- emphasis on the establishment of projects. intensive industries. There are foreign-funded enterprises, and on Paid land use can also be a some people who are good at other direct foreign investment. major source of income. Towns in scientific research but poor at Particular efforts should be made the coastal areas have no small management. They can concen• to import foreign funds to re- source of revenues in selling their trate on research. There are others equip existing enterprises. This old houses. This can also benefit who are able in both; they should will help reduce the foreign funds the reform of the housing be allowed to start businesses. the state must borrow, stabilize distribution system. It is also Around the scientific research the economy and improve profits. necessary to try out the joint-stock centres and institutions of higher Foreign funds can be used mainly system and turn more short-term learning, some technology- to import key equipment and funds into long-term funds so as to intensive enterprises — enterprises technology, thus producing a increase construction funds. • BEIJING REVIEW, FEBRUARY 8-14, 1988 19 m ARTICLES China Aims to Wipe Out {Monopoly Prices With the economic reforms, producers have been allowed to have a say in the prices they charge, and some have taken advantage of this to set high monopoly prices. Here we survey this disturbing new phenomenon and what is being done about it. by Ling Bin hina used to have a highly jointly to raise the prices of a who objected with suspension of Ccentralized, planned economic certain kind of refractory material their power supply. system. The overwhelming major• they produce. ity of the commodity and labour Enterprises in the same line of prices were controlled by the state business jointly decide to find the Contributory Factors pricing management organs; the highest prices for any of their producers of these commodities products whose prices are under Over the last few years, with the had no role in the matter. state control but which are subject reform of the economic structure, In 1979, China opened to the to market fluctuation. A number market regulation has been outside world and began loosen• of ball bearing factories did so in introduced into the planned ing its economic policies. Having a December 1986. economy and cross-regional say in the prices of their products Enterprises decide to raise the economic associations formed. has encouraged enterprises to prices of products subject to This has broken the compartmen- speed up commodity production market regulation under the guise talization which had existed and revitalize themselves. It has of trade meetings or trade between different regions and also resulted in some enterprises associations. For example, the trades. In their new found unity seeking unfair profits by conspir• " 1987 price negotiation meeting of some groups began to decide on ing to monopolize prices. the national steel ball industry," the scale of their products" attended by representatives of 27 marketing and the prices, and to factories, decided to raise the work out restrictive quotas. prices of steel balls by 50-60 During the price reform, IVIuitifarious Monopolies percent beginning January 1, planned prices began to give way 1987; and the national association to different, less rigid pricing Enterprises in the same line of of sliding wheel makers asked its systems. The state allows enter• business usurp the pricing organs member factories to go along with prises to fix the prices for the by together fixing the prices of the new price the association had products they sell themselves, their products. Last year, directors fixed. including the above-quota part of of 18 printing and dyeing factories Trade groups fix base prices for certain means of production. decided to raise the prices of over products which are in ample Products are being sold at 50 dyestuffs; ten pharmaceutical supply. For example, in 1986, the different prices at the same time. plants, which produce raw electricity meter joint group This makes it possible for materials for the production of decided to maintain a base selling producers to seek monopoly Xinmmin, an anti-biotic, raised price and impose quota sales prices. the price of their products; restrictions on electricity meter Some enterprises have a leve• representatives of the vinylon factories last year, it also decided rage role within their own trade, factories in Shanghai, Beijing and to ban its members from providing while others are sole producers of four provinces raised the price of electricity meter parts and compo• a product. Many of them are polyvinyl alcohol; 108 low-voltage nents to non-group enterprises. contracted out to individuals, or electrical goods enterprises in Some trades arbitrarily decide are now responsible for their own March 1987 issued a "joint letter to increase their charges. For performances—easily allowing to consumers," in which they example, some units in the railway for monopoly pricing. announced price rises for 260 industry decided to increase the Many important goods are in products; in November, nine charges on consigners and passen• short supply in China. Their enterprises in Beijing, Chongqing, gers; some units involved in power producers are ideally placed to Shenyang and five other cities supply decided to raise the price of monopolize prices for higher called a meeting and decided electricity and threatened people profits. 20 BEIJING REVIEW, FEBRUARY 8-14, 1988 Different Contexts at a time when the market system quality of their products and is in its infancy, market compe• reduce production costs, but are Monopoly prices are the tition is only beginning to be felt simply forcing prices up for the product of a commodity economy. and many commodities are in sake of higher profits. This is Nonetheless, they take on differ• short supply. harmful for the working of the ent characteristics depending on In the capitalist world, the market and the healthy develop• their economic and social monopoly prices are in some ways ment of a planned commodity contexts. supported by the banking system. economy; it impedes technological progress and the restructuring of In the capitalist world, the the economy. It damages the monopoly prices are based on the interests of the state, the private ownership of the means of consumers and other businesses. production, with the extra profits he monopoly price fixers Its spread will hamper the smooth earned belonging to the capita• progress of the economic reforms. lists. But the monopoly prices in are forcing prices up for China are fixed mainly by the higher profits. The State The State Council promulgated state-owned enterprises with pub- Council promulgated regulations last year to strengthen he ownership of the means of the management of the pricing of production. The extra profits are regulations last year to capital goods and to check wild partly used as bonuses or strengthen the management price hikes and charges. They allowances for the employees, of the pricing of capital goods stipulate that no enterprise may with the ramainder belonging to and to check wild price hikes. work to fix a monopoly price the enterprises. However, this whether or not the state has does harm the interests of the worked out a ceiling price for the state, the consumers and other product, or decreed it subject to businesses. In China, however, these prices notation or market regulation. are free of any bank support. In the capitalist world, the The State Council promulgated monopoly prices take shape other regulations last year on through market competition and Counter-Measures management of pricing, which list in the context of monopolized monopolized prices fixed by enterprises or trade organizadon production. In China, however, The monopoly price fixers are as being in violation of the state monopolized prices are appearing not attempting to enhance the law and pricing policy. On January 11, the State Council decreed that the state prohibits all monopoly prices set by enterprises and associations, ANNOUNCEMENT and undertook to punish any business which, taking advantage Beijing Review \d celebrations on March 4 this of its monopoly position, inflates year to mark the 30th anniversary of its founding. prices for higher profits or which During these 30 years, Beijing Review has aimed at conspires with others to force up promoting understanding and friendship between the prices. The existence of such prices people of the world. It provides information on China's indicates that the state needs a law political, economic and cultural.developments, the domestic to eliminate and prevent mono• and external policies of the Chinese Communist Party and poly pricing and needs to look government and their perspectives on important world again at its policies on industry. events. Meanwhile, the state needs to co• We will continue in future to make every effort to ordinate prices and replace strengthen friendship and co-operation between the monopoly prices with reasonable ones. The state must give guidance Chinese and the people of the world. to enterprises on how to manage To commemorate our 30th anniversary we are planning the pricing system. While streng• to publish special articles in Beijing Review in March. We thening state supervision, efforts welcome your letters and contributions. should be made to reinforce Editorial Dept. mutual supervision within indus• I Beijing Review tries and the supervision of society to check the rise of new monopoly prices. • BEIJING REVIEW, . FEBRUARY 8-14, 1988 21 •i ARTICLES China's Burgeoning Electronics Industry by Our Correspondent Liu Jianjun purred by the new technolog• China is one of the few space Liu says that China began Sical revolution and the mount• powers in possession of such a researching and manufacturing ing domestic demand for technique. the radio-telecontrolling system electronic products, China's Liu Tieying, an official of the for atom bomb fuses in 1963, and electronics industry, starting from Ministry of Electronics Industry, succeeded in igniting its first atom a very weak foundation, is now says China began researching'this bomb by remote control in 1964. experiencing rapid growth. Last system in the early 1960s. It has In 1965, China formulated its year it produced over 40 billion since developed a dozen or so satellite launching programme yuan in total output value, six similar large-scale electronic trac• and began researching and times as much as it did in 1978. king and control systems for the manufacturing the missile radio China manufactured 510,000 installation of a high-precision exterior ballistic measurement and television sets in 1978 and about telemetry zone and a medium- range safety control system. This 16.8 milHon sets last year. In the precision telemetry and telecon• system, complete with a radio nine years since economic reforms trol network. continuous-wave component vel• were launched, 70 million TV sets, For example, China has ocity measuring system, a control 177.4 million radios and 50 million equipped the high-precision tele• centre and five other attachments, radio-cassette recorders have been metry zone with a continuous- is China's first-generation teleme• made in China. wave interferometer system, a try and telecontrol system for China is now able to design and multi-station telemetering system monitoring the launching of produce 1,200 kinds of electronic and mono-pulse instrumentation missiles and satellites. equipment and attachments, some radars. The application of tele• In the 1970s, China set out to of which are as advanced as any in metering stations and the opt• develop its second- and third- the world either in precision or in imum trajectory evaluation generation missile radio telemetry their manufacturing technique method has made it possible to and telecontrol systems. The and have been widely used, reduce the error in measuring the accuracy of telemetry and telecon• notably in missile and satellite component velocity to the trol and the multi-purpose use of manufacture. cm/second requirements. the channels were much enhanced. Since 1980, China's major electronics producer, the Ministry of Electronics Industry, has made nearly 4,000 research break• throughs, some of which have won international acclaim. Telemetry & Telecontrol On August 5, 1987, China successfully launched and re• covered a satellite. It was the 20th since China began launching satellites in 1970. In launching these satellites, China has been using the sophisticated missile- satellites radio tracking and control system, which China developed independently and which measures and controls the velocity, orbit, tilt angle and attitude of missiles and satellites. 22 BEIJING REVIEW, FEBRUARY 8-14. 1988 In 1985 a US space delegation China's navy is working on generation transistor computer. visited a satellite launching fitting all its submarines with About ten years later, it manu• control centre in Shaanxi Pro• electronic devices. Having already factured the third-generation vince, which is composed of a installed optical fibre, computer small integrated circuit computer. telemetry and telecontrol system and satellite communications In the 1980s, the computer and a satellite ground station. One devices, the Chinese navy fleets are industry has been developing member on the group said in an now able to communicate with rapidly. It has designed and article he published in the US headquarters anywhere. manufactured gigantic computers Aviation Week & Space Tech• China has now outfitted its and various universal computer nology, that China is extensively military ships with radar systems and micro-computer series. China updating its satellite launching and its missile-destroyers with now boasts a computer industrial control centre to bring it up to technically advanced air sur• system complete with hardware advanced 1980s levels. veillance radars, low-altitude sea and data processing enterprises. For the telemetry and telecon• searching radars, target-indicating Nationally, there are now over 200 trol system, China has also radars as well as various kinds of computer manufacturing enterp• designed and applied the new laser fire-control radars. rises, which turned out 2,000 cinetheodolite, and fulfilled the The electronic ground com• computers of varying sizes and initial task of telemeteriftg carrier mand system, upon which the over 200,000 micro-computers rockets for synchronous satellites. state conferred a special prize in between 1981 and 1986. 1985, has proved able, in large- Before 1980, China imported scale military exercises, to im• over 500 large and medium-sized prove the co-ordination and computers from the United States, National Defence responsiveness of army groups. Its Britain, France, Japan, Romania application represents an import• and nine other countries. Since A highly placed official in ant step towards electronic then, it has imported or tech• charge of China's electronics warfare. nologically upgraded more than production said that electronics 50 micro-computer production technology is the core of weapons lines and nearly 20 exterior device modernization. To modernize Computers China's weapons and military production lines, which will be equipment through extensively able to produce over 400,000 applying electronics will be the China began developing com• micro-computers a year. The focus for modernizing China's puters in the mid-1950s and turned Great Wall-0520 micro-computer, armed forces in the future. out its first small digital vacuum- derived from advanced foreign tube computer in 1958. In the early technology, has won international China has already equipped its 1960s, it made its second- recognition. It is now widely used latest "Qian-8" high-altitude, high-speed fighter planes with fire- control radar, aviation-guidance Experts checking the computer-laser Chinese-character typesetting system. radar, rangefinder, radio altimeter and plane tail warning sets, all designed and manufactured in China. Since the early 1950s when it set out to research military radar and related electronics attachments, China has designed and turned out more than 30 airplane- and ship- borne radars and other electronics devices. In 1981 the Chinese Academy of Sciences succeeded in producing China's first state-of-the-art air• borne imaging radar. It has also made a breakthrough in air-borne pulse Doppler technology. In 1986, China's air force developed and put into service the Type-ZS Light-weight reconnais• sance plane equipped with a video camera and a radio system. BEIJING REVIEW, FEBRUARY 8-14, 1988 23 •1 ARTICLES in the country and some have been exported. An important breakthrough in China's computer industry is the birth of the Galaxy super• computer, capable of making 100 million calculations per second, and the 32-bit NCI-2780 mini• computer. In 1985, said Lu Ning, an official of the Ministry of Electronics Industry, when Beijing University developed the Galaxy super-computer, China became one of the few countries able to make such gigantic computers. The Galaxy, with its super-speed and large storage capacity, has proved applicable in space aviation, aircraft design, global weather forecasting and geophys• ical prospecting. The 32-bit NCI-2780 mini• WU ZUZdENG computer, made in 1984 as the first The "Long March-3" rocket at the Xichang satellite launching centre, Sichuan of its kind in China, has proved Province. highly efficient and reliable. This computer, say some experts, is scientific research results regis• ing production costs by 50 percent well-structured and has many tered in 1986, this system, the first and raising efficiency 5 to 10 times, programming languages. Its best of its kind in the world, with its jthis system, when used nation• features are flexible addressing, unique data-condensing tech• wide, will greatly improve the capacica'- virtual memory and nology, is able to reduce the 2.5 country's 11,000 printing and multi-programme functions. billion bytes of Chinese characters publishing organizations. This computer technically com• 500 times. Its use requires a parable to the internationally smaller workshop and much less applied VAX-11/780 of the manpower and electricity than the Colour Televisions American DEC company, has traditional stereotype, and it also proved to be the most advanced of avoids the risk of exposure to lead. In the spacious dust-free all the early 1980s designs. Now in The following table gives a workshop of the Beijing Televi• service at the Xian Satellite comparison of the requirement for sion Factory are installed two Control Centre and on the producing 50 million Chinese colour TV production lines, one Yuanwang ocean-going prospect• characters by the traditional and imported from Japan and the ing ship, this computer has been new methods: other, made in China. Computer- one of the few selected for use by According to an official of the controlled robots "plant" parts the armed forces. Ministry of Electronics Industry, and components on circuits while These two kinds of computers China has manufactured 32 such workers assemble and check the mark the birth of China's fourth- typesetting sets for the Xinhua completed sets as they come off generation computers. New Agency and other news the production lines, one every 45 organizations. Capable of reduc- seconds. Printing Technology The computer-laser Chinese- Traditional stereotype Laser Typesetting character typesetting system manufactured by Beijing Univers• A workshop 1,500 square A workshop 200 square ity in 1985 undoubtedly heralded a metres in area metres in area revolution in China's printing and 335 tons of lead, worth publishing industry. A gold prize 1.14 million yuan No lead needed winner at the 14th Geneva Scientific and Technological Fair 330 workers and one of China's top ten 25 workers 24 BEIJING REVIEW. FEBRUARY 8-14, 1988 The factory's Peony brand will continue to do so in the future. making it a powerful player on the colour televisions, known as "a According to the Ministry of competitive world market. flower of Beijing," sell very well in Electronics Industry, one-third of "The total export volume of Sweden, Norway and many other China's electronics enterprises China's electronics products," countries. have been revamped through says Ni Zhen, marketing manager China now has altogether 113 technology imports. Almost half of the China National Electronics such production lines, of which 29 of the total output value of the Import and Export Corp., were made in China. These lines electronics industry is obtained by "amounted to almost US$500 are able to make over 15 million importing advanced foreign million in the January-September sets a year.. technology. period of 1987, and it is expected An official from the Quality An official of the China to reach about US$1 billion in Contral Department of the National Electronics Import and 1990." Ministry of Electronics Industry Export Corp. said that between At present, he says, China's said China's 12 types of 14-inch 1980 and 1986 his company signed electronics exports consist of colour televisions produced in contracts with overseas businesses nearly 100 types. Such products as 1986 each have a fault-free service for importing 475 large and radars, televisions, radio-cassette period of over 20,000 hours. They medium-sized electronics projects, recorders, communications de• are technically comparable to worth over US$3 billion, of which vices, electronics parts and their Japanese counterparts. In 319 have gone into operation. The attachments each earn China over some respects, such as sensitivity import of foreign technology has US$1 million a year. and power consumption, they are quickened the development of The mix of export products has more than a match for their China's electronics industry by 10 also changed greatly, from low- foreign rivals. to 20 years and raised the quality grade electronics parts to high- of electronics parts by one grade. China signed a colour kinescope grade complete sets of electronic Take the company's .Beijing glass lube agreement with the devices. In addition, some of subsidiary for example. About 1 United States in October 1986 and China's electronic products have billion yuan of its 1985 output two months later a general been well received on the value came from its imported agreement with Japan on produc• international market. For projects. ing colour kinescopes in Shaanxi, example, China's 4-CK transmitt• The official said that substan• Shanghai and Nanjing. This laid ing tube series exported to the tial changes have taken place in the foundation for localizing the United States measures up to the China's imports, which are entire process of colour TV client's military standards. China shifting from complete sets of production in China by 1990. has also exported to the United equipment to technologies not• Apart from continuing to mass- States electron tube assembling ably in the form of licensed trade. produce 14- to 22-inch domestic and testing equipment, technology The focus is on the technological colour televisions, China has been and scattered electron tubes. It is transformation of existing enter• devoting great efforts to develop• the first time for China to sell prises through software imports in ing new television technologies. It electronic technology to a devel• particular. has already made much headway oped country. in researching into two-picture The import of foreign tech• Overall, continues the official, televisions, colour televisions up nology can be conducted in the China only has a small share of the to PAL, Secam and NTCS form of joint ventures, co• international electronics market. standards, high-resolution colour operative management, joint ten• It pales in comparison with televisions and stereoscopic dering for some projects, tech• countries such as the United States colour televisions. nology transfers and co-operative and Japan. China is unused to production. world market developments and International Orientation China also absorbs advanced slow to follow new trends. So its foreign technology through hold• products, often poorly packaged, ing international symposia and are obsolete as soon as they Importing and absorbing ad• exhibitions. For example, Beijing appear. Efforts are being made to vanced world technology from sponsored a "Federal German change this situation. Some 17 which to produce for export is a Electronics Week" last July, and electronic production and export shortcut for China to reach Nanjing held an international bases and many more electronic advanced technological levels. microelectronics and mini-electric groupings have been set up in Since China opened up to the machinery exhibition last Beijing, Shanghai, Qingdao, outside world in 1979, its September. Nanjing and Guangzhou to electronics industry has been Importing advanced foreign develop and export electronic geared up for full-scale imports of technology has boosted China's products matching the demand of advanced foreign technology and electronics exports considerably. the international market. • BEIJING REVIEW. FEBRUARY 8-14. 1988 25 m ARTICLES Revaluation of NT$ Hits Taiwan's Exports Taiwan iias been tliriving on its export-driven economy for years. Now, tlie very strengtli of its currency is tiireatening Taiwan's success. We examine tlie nature of tlie present crisis and wliat is being done to avert it. by Ling Li y late last year, the New reserves rose from US$22 billion toy-making firms particularly BTaiwan dollar was rising by in late 1985 to around US$75 hard. about three cents a day. By billion late last year, an Last year, Taiwan had a good December 4, the rate of exchange exceptional phenomenon. harvest in 54 kinds of fruit. between thp New Taiwan dollar Today, Taiwan is the 16th However, the strong New Taiwan and the US dollar had broken the trading power of the world, and dollar blocked their export while 29:1 level. "The price of the US over half of its foreign currency is fruit imports increased. According dollar is exceptionally low," cried earned from its trade with the to the paper Ming Pao, last the Taiwan newspapers. "Bad United States. In 1981, Taiwan September Taiwan imported consequences are inevitable." registered a surplus of US$3.4 89,820 tons of fruit valued at billion in its trade with the United US$45 million, an increase of States. The figure rose to US$9.8 more than 50 percent over the Strong NT Dollar billion in 1984 and further to same period the year before. As a USS16 billion in 1986. Last year, result, fruit prices^ on the island By late 1987, the New Taiwan even though the United States plummeted. The price of oranges dollar had risen 22.62 percent over forced the New Taiwan dollar to dropped from NT$23 to NT$5 a its January level, a rate slightly rise and squeezed many American pound. The Central Daily News lower than the 22.66 percent products on to Taiwan's market, noted: "The hardworking farmers increase of the Japanese yen, but Taiwan still had a surplus of have suffered a merciless blow." higher than the rise of the DM of US$13.7 billion in its trade with The Wanchong Leather Pro• Federal Germany, the South the United States. duction Co. is Taiwan's chief Korean won and the Hong Kong Under strong political and leather exporter. Due to the dollar (which rose 17.71 percent, economic pressure from the revaluation of the New Taiwan 8.2 percet and 0.31 percent United States, the exchange rate dollar, orders for its shoes respectively). This indicates that between the New Taiwan dollar dropped 30 percent last year and it the New Taiwan dollar is one of and the US dollar rose gradually had to sack 100 employees. the world's strong currencies. to the present rate of 29:1. It is Taiwan's cobblers union es• In the 1960s, Taiwan's economy reported that by the end of this timated that orders for Taiwan- began its meteoric development year, the exchange rate is expected made shoes generally dropped and its industrial setup became to rise to 27:1 and stay at around around 30 percent last year. In the foreign-orientated. Supported by 25:1 for the next few years. last two years, 52 shoe factories on the United States, Taiwan's Taiwan suspended production foreign trade turned from deficit and another 158 closed down. to surplus. Two years ago, the rate Export Producers Suffer The marketing manager of the of exchange between the New Kuangnan Industrial Co., a Taiwan dollar and the US dollar The strong New Taiwan dollar prestigious tennis racket pro• was still unobtrusively at 40:1. is not at all a good thing for ducer, said the revaluation of the This decade, with the rapid Taiwan whose economy is based New Taiwan dollar might force development of Taiwan's foreign on export-oriented processing and 25-30 percent of Taiwan's smaller trade (which makes up 88 percent manufacturing businesses. The sports goods factories to close of its GNP), its foreign exchange revaluation- of the New Taiwan down. reserves have bulged, increasing dollar hit Taiwan's agriculture Taiwan's textiles had always by US$20 billion-30 billion a year and traditional labour-intensive been exported at minimal profit since the mid-1980s. These industries: textiles and shoe-'and margins and were squeezed hard 26 BEIJING REVIEW, FEBRUARY 8-14, 1988 by stiff competition from South US$10.5 billion. Today, Taiwan's mainland will become one of Korea, Singapore and Hong largest trade partners in Europe Taiwan's four biggest markets. Kong. Now even those tiny are Federal Germany, Great Today, Southeast Asian coun• margins cannot be retained and Britain and the Netherlands. tries are attracting more and more many smaller textile mills in Recently, Taiwan began to Taiwanese investment, being geo• Taiwan are running at a loss. strengthen its trade with East graphically close and rich in Every day, small textile factories European socialist countries. natural resources, raw materials are closing down. Taiwan now mainly exports and cheap labour. They are also Systems which Taiwan export household electrical appliances, waiting to be economically producers used previously to fall textiles and rubber and plastic developed and have sizeable back on to offset rises in the New products to Europe while import• overseas Chinese populations. To Taiwan dollar are beginning to be ing from there chiefiy chemical expand Taiwan's export market, broken up. For example the products and machinery. the Taiwan authorities now Central. Bank of China started in To expand this market, Taiwan encourage local business people to September 1986 to buy long-range has, in recent years, been invest abroad, particularly in foreign exchange at work• exchanging trade delegation visits Southeast Asia because this is seen able rates of perhaps 90 percent with European countries and as being helpful to Taiwan's from the Taiwanese foreign encouraged businesses from these exports there. exchange banks. "This is a thing of countries to establish representa• Of the Southeast Asian coun• the past," declared the United tive offices in Taiwan. Thus far, 12 tries, Thailand has stood out Daily News. The Central Bank of European banks and 11 trading because of its very cheap labour. China' has now suspended this businesses have set up representa• Furthermore relations between practice. It is predicted that tive offices in Taiwan. Recently, the Thai and Chinese populations smaller businesses in Taiwan will the Taiwan authorities relaxed are good, and many of the Chinese suffer more blows this new year. restrictions on trade with East there are Chaozhou and Shantou Europe and permitted local (Swatow) dialect speakers, as are Extending Export Markets business people to trade directly many Taiwanese. with the German Democratic Officials of the Thailand Taiwan's economy was built up Republic. Poland. Czechoslo• investment bureau said many by the export processing industry. vakia, Hungary, Yugoslavia, Bul• Taiwan paper mills, toy factories Today, 700,000 of these small and garia and Romania, in an effort and textile mills intend to invest in medium-sized businesses (over 95 further to diversify Taiwan's Thailand, and they have begun to percent of the island's total) are European market. do so. One Chinese paper there still the backbone of its economy Stressing Soutiieast Asian IVIar- says 49 investment projects and their export earnings now ket. Taiwan has also turned its applied for by Taiwan businesses make up about 72 percent of its attention to the nearby Southeast were approved by the Thai total exports value. Asian countries. The Taiwan authorities in the first half of 1987, All these smaller enterprises are Commercial Times revealed that a three-fold increase over the same labour-intensive businesses with the Taiwan authorities have period the year before. They were less advanced technology and decided to emphasize the island's valued at US$235 million, a nine• weak competitiveness. They are entrepot trade with Hong Kong, fold increase. extremely sensitive to changes in Macao and Singapore. However, Taiwan faces stiff the exchange rate and find it hard This is a way of expanding competition from Japan, Hong to bear the losses inflicted by the Taiwan's trade with the mainland. Kong, South Korea and Sin• New Taiwan dollar's rise. To According to the Far East gapore who are also expanding survive, they are trying to turn Economic Review, the mainland their Southeast Asian markets. themselves into technology- has already become one of These countries and regions, intensive businesses. However, Taiwan's 10 principal markets. In which are also being hit by this is a long-term task. Currently the first nine months of last year, America's trade protectionism, all these businesses are extending over HK$6.6 billion worth of hope to expand their -trade their export markets to replace Taiwan goods were sold in the elsewhere. Competition is fierce. their dependence on the US mainland through entrepot trade, The Taiwan authorities now face market. up 53 percent over the same period the difficulties of deploying Expanding Trade With Europe. It the year before. At the same time, Taiwan's increasing foreign ex• is reported that in the first 10 HK$1.12 billion worth of main• change reserves and reducing the months of last ydar, the bilateral land products were sold in Taiwan adverse repercussions of the trade between Taiwan and EurOpe via Hong Kong. Western analysis revaluation of the New Taiwan was 65.2 percent more than the predicts that when Taiwan and the dollar on its export-oriented same period in 1986, being worth mainland begin direct trade, the industries. • BEIJING REVIEW. FEBRU.ARY 8-14, 1988 27 •i FROM THE CHINESE PRESS Polarization? which should focus on the regional Will Reform Lead to distribution of the work force, the size and density of the population, and the nature of urban organiz• "BAN YUE TAN" Obviously, this difference can not ation. In the areas rich in funds, (Fortnightly Forum) be regarded as a polarization of population, industries and non- rich and poor in rural areas. agricultural trades, the govern• The polarization of rich and ment should, by means of tax ill reform in China's rural poor would involve the private revenue and interest rates, guide W areas lead to a polarization ownership of the means of non-agricultural trades to concen• of rich and poor? production. In these circum• trate on building cities, and Since the implementation of the stances, a small group of people encouraging farmers to move contract responsibility system in owns a large proportion_ of the there. In other areas, the stress China's rural areas, farmers' means of production and p'ofits by should be placed on the develop• incomes have increased sharply. the hard work of others, while the ment of county seats and small In 1985 the annual per-capita net overwhelming majority of people towns within county boundaries. income was 397.6 yuan, 2.6 times have nothing to their names and At the same time, non-agricultural that of 1978, after the price rise has must make their living as part of industries and farmers should be been deducted. From 1978 to the work force. Since China encouraged to gather at county 1985, the average annual rate of operates under a socialist system, seats and small towns. increase was 14.9 percent, com• and the major means of produc• pared to only 1.7 percent from tion such as land and village and 2. In the coming decades, 1965 to 1978. In 1986 the average township enterprises in rural areas several hundred cities will spring per-capita net income for farmers are owned by the collective, the up' and more and more farmers was 424.05 yuan, an increase of 6.7 gap between farmers' incomes, will become city dwellers. In order percent on the 1985 figure. In the even if it is broad, cannot be to lighten the financial burden on first six months of 1987, incomes interpreted as an indication of the state caused by the high tide of increased by 6.7 percent over the polarization. urbanization, we must carry out reforms in urban construction and corresponding period for 1986, (Issue No. 22, 1987) allowing for rising prices. management, and the employ• ment and welfare systems. The difference in income among 3. The main factor restricting farmers is not great. According to the movement of rural popul• the State Statistics Bureau figures Moving tiie Rural ation to urban areas is the current based on internationally accepted land system. To promote the coefficient computations, the Labour Force movement of rural people and the coefficient of income differences businesses linked to agriculture, between Chinese farmers was we must separate the land's nature 0.2124 in 1978; 0.2366 in 1980; "RENMIN RIBAO" as means of production from its 0.2388 in 1981; 0.2318 in 1982; (People's Daily, Overseas Edition) function as a means of social 0.2459 in 1983; 0.2577 in 1984, and ince the implemetation of, the security. 0.2636 in 1985. Statistics gathered Scontract responsibility sys• 4. A pension system should be by the United Nations organi• tem which links remuneration to introduced in village zation concerned indicate that output, China's rural economy and township enterprises and new generally speaking, the coefficient has entered a new stage and is social security mechanisms es• should be between 0.2 and 0.6; working towards a rational tablished to replace the former coefficients below 0.2 or above 0.6 distribution of labour and re• social security provided by the are considered unreasonable. sources between town and country land. This will help promote Some departments hold that it is in line with the requirements of a the How of the rural population reasonable for China to control commodity economy. In effect, moving and the reform of the land the coefficient within the 0.3 to 0.4 the movement of rural labourers system. range. In recent years, the means the emancipation of the (December 9. 1987) difference in incomes has pro• social work force. gressively widened. However, this The success of the transform• was the result of a breaking away ation depends on the state's from the egalitarian system which overall guidance and a series of dominated in the mid-50s after the reforms. agricultural co-operative move• 1. From now on, the govern• ment and since 1958 when the ment should start drawing people's communes were set up. medium- and long-term land plans BEIJING REVIEW. FEBRUARY 8-14. 1988 r Pangolin scale, bear's gall and Remarriage for Mao's Daughter-in-Law otter's liver are also widely prescribed for various diseases. Mao began to directly talk with Animals Used as Sources of "JIEFANGJUN BAO" Essence. The musk, civet and her about her remarriage. He also (Liberation Army Daily) beaver are major world sources of introduced two men to Liu. essence. China has few beavers but many civets and the essences ecember 26, 1987 marked the Later, with a little help from Liu derived from Chinese civets D 94th birthday of Chairman Zhen, the former president of the compare favourably with those of Mao Zedong (1893-1976). Every Air Force Institute, Liu SongUn the African species. year for the last 10 years, Liu fell in love with Yang Maozi, a Animals Used as Sources for Songlin, Mao's former eldest teacher at the institute. Chairman IVIeat. These mainly include the daughter-in-law, went to the Mao presented them with a poem boar, hare and members of the ox Chairman Mao Memorial Hall on of congratulations and 300 yuan and deer families. In northern this day to pay her respects to her on their wedding day. China the roe deer is the prime father together with Mao Anqing Liu Songlin said that it was her source of meat, but in the south, and Shao Hua, Mao's son and good fortune to have such an the Asian muntjac family is daughter-in-law. enlightened father-in-law. Now, favoured. China's grassland and Liu Songlin, an editor for the she has two sons and two highland areas ase rich in oxen. Literature and Art Publishing daughters and lives a happy life. Tibetan gazelles and bharals. House of the Chinese People's (January 14, 1988) Animals Used as Experimental Liberation Army, said Chairman Subjects. The rhesus monkey, Mao was not only a great leader mainly found in the provinces and but also a loving father and sincere autonomous regions to the south friend. In strangers' eyes, Mao of the Changjiang (Yangtze) Zedong was a great figure in the Animals Withi River, ir. an animal favoured as a world and very few people knew subject for medical experiments. about his private life. Economic Value The tree shrew, sand mouse and In 1950, Mao Anying, Mao's mouse hare have also been used as eldest son and the former husband experimental subjects. of Liu Songlin, was killed in the "DA Zl RAN" (The Nature) In order to fully utilize its wild War to Resist US Aggression and animal resources. China has given Aid Korea. Liu was deeply hina has more than 430 a great deal of attention to the grieved. She refused to consider Cvarieties of wild animals, 10.71 domestication of many potentially remarrying for many years. This percent of the world's total. Of useful animals. worried Chairman Mao greatly. them, many are either rare animals (Issue No. 4. 1987) He felt that Liu should begin to or animals which have potential think about a new family. But, it economic value. The animals may was very inappropriate for him to provide a source for furs, meat, directly advise his daughter-in-law medicines and essence, or they to remarry. So whenever Liu may be suitable as the subjects of Songlin and his other unmarried experiments. children were all at home. Fur-Bearing Animals. The furs of Chairman Mao would encourage these animals are used in various them to look for a partner in kinds of garments such as coats marriage. and headwear. Of them, the furs of His children retorted in unruly the sable, marten, otter and lynx fashion. "Where can we find are the most highly valued. one?" "We don't know how to Animals Used as Sources of look for a partner." Mao Zedong Medicine. According to records in told them to close their eyes and medical books, 65 varieties of catch one in the street. Liu Songlin animals in China can be used as asked jokingly what they would do sources of medicines. The bezoar, if they caught a person with a musk and antler, for example, are pockmarked face. y all sources of medicines widely used for their curative powers. It was not unitl 1957 when Liu According to statistics, about 295 Songlin returned from her studies patent Chinese medicines contain in the Soviet Union that Chairman musk which acts as a tonic. BEIJING REVIEW. FEBRUARY 8-14. 1988 29 BUSINESS/TRADE open to such orders in over 20 Solving Joint Ventures' Problems countries around the world. The exports of Chinese ships ino-foreign joint ventures will many problems. These include too has developed amid intense S be helped in solving problems, much administrative interference, international competition. A according to Chu Baotai, deputy not enough freedom to make their slump in the market and an director of the Administration of own decisions, and poor supplies enormous drop in ship prices in Foreign Investment under the of raw materials. Some joint the last few years have intensified Ministry of Foreign Economic ventures find that other units ask the competition. Chinese shipbu• Relations and Trade. Not long for money and materials from ilders offer lower prices, good ago the State Council asked all them which cuts into their profits. quality and excellent service. Last local governments to send high- So the State Council issued its April the Hudong Shipyard level investigation groups to the order. Solving these problems will received an order to build a huge joint ventures in their areas to help improve the environment for air-cooled container ship for a them solve any problems they foreign investment, thus helping West German shipping company. have. This was to be done within foreign businesses to administer With its advanced technology it two or three months. and operate their joint ventures caused quite a stir in the world's In October 1986 the State according to the international shipping and shipbuilding circles. Council promulgated the 22- norms. A Japanese maritime newspaper article regulations on encouraging by Yao Jianguo commented that it will further foreign investment. Since then improve China's position in the various localities have been business. implementing it and also drawing China started to export ships in up their own economic rules and More Ship Exports the late 1970s and has contracted regulations to simplify approval Registered in 1987 to build a total of 168 ships with a procedures, they have established combined DWT of 1.9 million, a foreign exchange regulation mech• full 1.3 million tons of which were anisms and raw material supply completed by the end of 1987. centres, and sped up the he shipyards under the China China has also contracted to build construction of airports, har• TState Shipbuilding Corp. three offshore drilling platforms bours, highways, telecommunic• signed export contracts for a total and two oil extracting ones. The ations facilities, and water and of 335,000 tons last year, the total value of this trade, power supply projects, in an highest figure for five years. This, the exports of machinery and attempt to further improve the plus exports of machinery and electronic products, and ship environment for foreign electronic products and repairs of repairs were worth US$1.87 investment. foreign ships, boosted their trade billion. It is estimated that 2,230 foreign volume to US$305 million. Last year China exported ships businesses invested in the cons• Some of the commissioned with a total DWT of 275,200, 76 truction of new factories in China vessels require complicated tech• percent more than 1986, making last year, of which 1,399 are joint nology and advanced equipment. China the fifth biggest ship ventures. From 1979 to the end of The 280,000-cubic feet giant exporter in the world. 1987, a total of 10,008 foreign- refrigerator ship to be made by the by Li Rongxia funded enterprises were approved. Shanghai Shipyard and the air- They had a combined foreign cooled container ship (with a investment of IJSS21.96 billion loading capacity of 2,700 con• Power Projects for (USS8.47 billion of which has been tainers) to be made by the Hudong used). Most of the 4,000 joint Shipyard for Federal Germany Foreign Investment ventures which have already will be highly modern ships. Many started to operate have performed export ships have been designed well and increased their exports and developed by China, such as a he third group of power from USS480 million in 1986 to 3,600-ton freighter for Hungary, a Tprojects to be built with foreign USSl billion last year. Their 62,000-ton oil tanker for Chile, a investment has been decided ability to balance their foreign 16,500-ton multi-function con• upon, according to the Huaneng exchange accounts has also tainer ship for Bangladesh and a International Power Development improved. 64,000-ton oil tanker for Hong Corp. They include the four Owing to traditional manage• Kong. 300,000-kw coal-powered gen• ment methods and an imperfect Chinese shipbuilders won erating sets needed by the economic structure, some foreign- orders in South America for the Yingkou Power Plant construc• invested enterprises still have first time last year, and are now tion project in Liaoning Province 30 BEIJING REVIEW, FEBRUARY 8-14. 1988 and the Nanjing Thermal Power More Dukang Plant expansion project. These generating sets will be imported Liquor Exported from the Soviet Union on credit. The two sides have discussed the deal and plan to sign contracts in xports of Dukang liquor will be the next two months. E increased this year in order The Huaneng corporation has to meet the growing international been designated by the state as the demand, according to Zhong exclusive handler of foreign Guangxian, director of the investment in China's power Yichuan Dukang Liquor Distil• industry. Established in 1985, the lery in Henan Province. "Our corporation announced two factory plans to export 400 tons of groups of power projects to be quality Dukang liquor, about 100 undertaken with foreign invest• tons more than last year," said the ment. The first included the four director. coal power plants in Dalian The factory exported its liquor (Liaoning Province), Fuzhou first in 1981 and has increased its (Fujian Province), Shangan exports every year since then. The (Hebei Province), and Nantong liquor is now shipped to Japan, the (Jiangsu Province). Construction United States, Britain, France and started in August 1986 and the Southeast Asian countries. An four plants are expected to go into American academic said when operation this year. The Shantou visiting the factory in 1985, "The Power Plant in Guangdong Dukang distillery has some of the Province went into operation at best distillating skills and ability to the end of 1986. handle sorghum I have ever seen." In the second group of projects, Dukang liquor, named after a the corporation found investors in liquor master of 4,000 years ago, is The statue of liquor master Du Kang in the building theShidongkouNo. 2 made of sorghum, wheat and Yichuan County, Henan Province. Power Plant in Shanghai, these quality spring water. It is clear and were the Swiss companies— BBC tasty and is good for the stomach, two other ginseng products which and Sulzder, and the American CE secretion of fiuids, for invigorat• ameliorate the effects of ageing, and S & L companies. The ing the spleen and for preventing made by the Jian Pharmaceutical Luohuang power project in ageing. • Factory in Jilin Province, won Chongqing, and the Yueyang silver prizes at the 36th Eureka project in Hunan Province are International Innovation Fair in under discussion. News in Brief Brussels. The factory has signed Thus far, the corporation has letters of intent for co-operation raised USS2.4 billion in foreign with businesses from the United • By the end of last year China investment for the partial cons• States and Japan. Some clients had conducted 30 bond issues truction of 13 electricity generat• from Federal Germany, Belgium, abroad worth a total of USS3.381 ing projects (with a combined Switzerland, Singapore and Hong billion, which accounted for 10.59 installed capacity of 7.6 million Kong are also looking for co• percent of foreign investment in kw). This year 1.4 million kw operation with the factory. • China since 1979 (or for 14.81 generating sets are expected to go percent of foreign loans raised into operation, and the rest (4.8 abroad in that time). million kw) next year. • The board of directors of the To import generating equip• World Bank officially approved ment, the corporation has also the third loan to the Chinese Bank agreed on barter trade. For the of Agriculture on January 26. The first set of projects, it signed 6 US$170 million loan is to be used barter trade contracts with to develop rural projects in Japanese, US and French com• Yunnan, Guizhou, Sichuan, panies, worth US$426 million. Hubei, Henan and Anhui This trade helps balance the provinces. corporation's foreign currency accounts. • The hair restorative, based on by Zhang Zhiping ginseng and deer's tail extract, and BEIJING REVIEW. FEBRUARY 8-14, 1988 31 • CULTURE/SCIENCE Eastern Tomb Area was built on the ground. Over the Eastern Imperial Tombs 2,000 Years Old Tomb Area there is a large rectangle earthern pile which is 400 metres long, 200 metres wide ecently a large imperial 57 metres wide and 25 metres and 4 metres high. The earthern R;enietery was found eight deep. The aisles from the east and pile is level and covers the coffin kilometres southwest of the the west have a total length of 163 chamber and the aisles. This style famous tomb of Qin Shihuang, the metres and the north-south aisle is is different again from the first emperor of the Qin Dynasty, altogether 70 metres long. The pyramid earthern piles built in the where hundreds of life-sized terra• larger end of the aisle is 32-34 later period. cotta warriors and chariots were metres wide, the small end 12-13.5 The initial excavation already found. metres wide. It is the largest coffin promises many relics in the According to some archaeolo• chamber ever unearthed in China. ancient tombs. In the side gists, the entire area of 24 square At the same time, two graves chambers, there are gilded kilometres is the burial place of with two sloping aisles and some bronzes, wooden articles, lacquer- seven kings in the 137 years before graves with one sloping aisle have ware, bone objects and many Emperor Qin Shihuang. also been found. pieces of pottery with seal script. Qin was a kingdom formed in Before the Qin Dynasty, tombs Formal excavation has yet to 770 BC in northwest China were built into the ground. The begin. • (present-day Shaanxi Province) and lasted 563 years, during which time four burial sites were built. All but the first two kmgs' tombs, 31 have been located. Of them, the Favourable Response to Scientific Films most famous tomb is the funeral pit of the terra-cotta army of Qin Shihuang unearthed in 1974. Qin very year China produces more research, a topic which accounts Shihuang (259-2I0BC) was the E than 200 scientific films and for one-third of China's scientific first emperor who unified China a dozen or so of these were shown films. and built the Great Wall to guard at the International Scientific Film The trichogramma is an insect against northern invaders. Festival held in Beijing in important in the prevention and November 1987. control of plant diseases and the The newly discovered Qin The film Crested Ibis produced eliminafion of pests. Cradle — imperial cemetery is called the by the Beijing Scientific and Artificial Eggs and Tricho- Eastern Tomb Area. The shape of Educational Film Studio docu• gramina. produced by the Shang• the tomb area is like a large ments the habits and behaviour of hai Scientific and Educational underground gully. Its outer wall these rare birds in their natural Film Studio, documents the is six to seven metres deep under environment. The discovery of the research process used to create the the ground and the gully is 10 crested ibis in the low-lying lands arfificial eggs for developing metres wide, a gigantic, complex of northwest China in 1981 caused trichogramma. The studies were project. a sensation in the world because based on the habits of this insect only here are the birds breeding which likes to lay eggs in and live Four tombs have been found in and growing in their natural on the eggs of insect pests. One the site. Of them, the largest one is environment. artificial egg is capable of four kilometres long and two Brown-Eared Pheasant, pro• producing more than 60 kilometres wide. duced by the China Agricultural trichogrammas. Of the four tombs, two Film Studio, also provides an Male plant sterility is an contained kings. They are appro- insight into the habits and abnormal phenomena in the • ached by sloping aisles from four environment of another rare natural world. The film Bright sides which lead to the coffin species found in China. The film Pearl in the Green Kingdom — chamber. The symbolism is that a makes use of minute description Male Plant Sterility outlines the king lives in a palace with four and detail to impress audiences way in which Chinese researchers doors facing the four directions of with the rarity of this bird. used this phenomenon to breed the compass, so the king has sharp new varieties of wheat and rice. eyes and keen ears and his power The films Cradle — Artificial extends everywhere. Eggs and Triehogramma and Of the films produced by the The two big tombs face east and Bright Pearl in the Green Beijing Scientific and Educational have the same size and shape. The Kingdom — Male Plant Sterility Film Studio, several are universal coffin chamber is 58 metres long. records successes in agricultural educational films. Nature's BEIJING REVIEW. FEBRUARY 8-14. 1988 Comeback records the develop• fessors from Germany invited me days of classes, my general ment and decline of Caohai — the to discuss my work. Soon after impression of them was that they natural freshwater lake in south• that, 1 was invited as guest had a good sense of music and west China and a world-renowned professor to the International were willing to learn, and eager to habitat for winter birds. The film's Music Seminar sponsored by the hear suggestions from the teacher. message stresses the importance of Franz Liszt Conservatory in We got along well with one protecting the environment for the Germany. I went there with my another. But I also felt that the sake of mankind. wife (as my piano accompanist) sound they produced lacked the Heredity and the Production of and began teaching violin classes. force which is indispensable for Good Offspring documents the On July 10, 1987, we arrived in soloists accompanied by a music causes of hereditary diseases and Weimar. ensemble on the stage. I also felt provides an elementary introduc• The seminar was the 28th that their playing fell short in tion to eugenics. The film International Music Seminar, meeting the music re^iuirements of Titanium — The Third Rising sponsored by the German Demo• each piece in speed and strength. Metal explains the characteristics cratic Republic. Most of the I once told a promising student, of titanium, its extensive uses in teachers were famous musicians "I feel German students not only daily hfe and its possible future from the United States, France, persist in using but study in depth influences on mankind. Finland and the Soviet Union. the bowing and fingering used in The International Scientific During their teaching period in the days of Bach, Beethoven and Film Festival featured more than Weimar they performed special Mozart. I agree with you and 60 highly rated films produced by concerts. admire this, but I hope my 16 countries including Australia, 1 was the first Oriental violinist students will be able to adjust their Austria, Bulgaria, Canada, to be invited as guest professor bowing to meet the needs of Federal Germany, France, Ger• and my teaching activities were modern audiences and the require• man Democratic Republic, Hol• highly valued. Before our arrival ments of the accoustics in grand land. Hungary, Italy, Japan, in Weimar, the president of the music halls. I hope they will not Korea (DPRK), New Zealand, conservatory Dr. Diethelm unconditionally use the original Poland, the Soviet Union and the Muller-Nilsson released the news style of bowing." The student United States of America. The that violin professor Zhang nodded when I said this but I did festival with its highly varied Shixiang from China's Shanghai not know whether he accepted my contents and friendly atmosphere Conservatory of Music would suggestion or not. was warmly praised by audiences travel to teach at the seminar. from many countries. The second Some younger students were international scientific film fest• Students at the seminar could not relaxed while playing. They ival is expected to be held in participate either on a formal level played by any means they could Shanghai in 1989. or as auditors to the classes. I because they had a strong desire to • asked all the students wishing to take centre style. They wished they take my lessons to play and I could have participate in the selected those who would receive Beijing Youth Violin Competition Teaching Violin formal lessons. Students who held a year ago. failed to be selected could During my 12-day teaching Abroad participate as auditors. Before activities, the local newspaper every class, I would post in front of issued several long articles on my n September 1985. I took two the classroom the time and classes proclaiming "the secret of I of my students to compete in content of the class. In this way. all his teaching success lies in his strict the International Youth Violin students could select the classes demands." Other articles such as Competition held in Poland. One which best met their own needs. "Class Organized with Wisdom student Wang Xiaodong took the One day to my surprise, I and Precision," "Friendly Atti• first prize in the youth group (and discovered an older Korean tude, Strict Demands" also also won a special prize for his member of the audience among appeared in the newspapers. I was rendition of Polish composer the students listening to my lecture later interviewed on a Sunday Szymanowski's works), and on Bach's Chaconne. I later learnt evening TV programme. .Zhang Le took the third place in that he was none other than the the youth group (and also won the famous violinist Professor Pack On the evening of July 29, the Mayor of Lublin Prize). Ko San who visited the Shanghai seminar ended on time and we left for home on the 30th. On the plane When the competition was over, Conservatory of Music 30 years I was deep in thought about the many of the violin teachers came ago to play Bach's Chaconne. results of this international to ask why Chinese boys won so My class was made up of eight teaching experience. many prizes in international violin college students and seven middle competitions. Several violin pro• school students. During the 12 by Zhang Shixiang BEIJING REVIEW, FEBRUARY 8-14, 1988 33 cations, hotels and other tourist International Tourist Film Festival facilities are much improved. Three highways run through the he First China International China International Tourist Film island. Hainan has regular TTourist Film Festival will be Festival will be attended by airroutes and chartered flights to held in November in Wuxi, a representatives from Korea, Beijing, Guangzhou, Hong Kong. picturesque city in Jiangsu Japan, Singapore, Thailand, the Singapore and Thailand. The Province. This is one of the United States, Canada, Mexico, microwave telecommunications highlights of 1988, the year of the Britain, France, the Soviet Union, exchange on the island has 1,800 dragon, according to a spokesman the Federal Republic of Germany, channels linking it with Guang• from the State General Administr• Bulgaria, Hungary, Hong Kong, zhou. In addition, 26 hotels are ation of Travel and Tourism. Macao, Taiwan and African open and nine others are under At the film festival, China will countries. construction. show five tourist films and 10 by Han Guojian Last year, Hainan received over video tapes on the subject. 100 foreign ambassadors and their The aim of the film festival is to wives from Beijing. They were all "promote the development of Newest Tourist surprised by Hainan's rich and tourism through film." Films and wonderful tourist resources. video tapes produced after Centre: Hainan Hainan could become a major November 1986 dealing with tourist area of the world, they said. tourist resources, programmes, ainan Island, soon to be facilities, services, and attractions Hdeclared a province, will be of various countries will be shown made into one of the major tourist Professional Tour at the festival. The best one will areas in China. By 1990, tourism win a "Gold-Dragon Prize." in Hainan will have expanded to a Groups in Cliina There will also be Silver- and yearly intake of 500,000 Chinese Bronze-Dragon Prizes. In ad• and foreign tourists. dition, four awards for best Hainan is China's second embers of the Sacramento director, best photography, best largest island, next to Taiwan. The M Youth Philharmonic music, and best special effects will island has 123 scenic spots, of Orchestra of the United States had be given. which, 20 have been developed. many opportunities to share China started producing tourist These include a vacation centre, techniques and exchange expe• films in 1982. Over the past five bathing beaches, a winter resort, riences with Chinese musicians years, over 50 tourist films and hot springs, and Soong Ching during their tour of China. The more than 100 videos on the Ling's (Madame Sun Yat-sen) conductor of the orchestra subject have been shot. Out of 20 family house. In addition, tourists expressed, on behalf of the tourist films selected for compe• can visit the Li and Miao minority orchestra, gratitude for the warm titions at five international people's villages in \yuzhi service provided by the China tourism film festivals held abroad, Mountain. Folk International Travel Com• 18 have won prizes, four of them In recent years, the Chinese pany during the trip. top medals. government has invested over 30 The company specializes in According to an official of the million yuan in developing receiving foreign professional tour State General Administration of Hainan's tourist resources. groups, and makes all the Travel and Tourism, the First Hainan's traffic, telecommuni- arrangements for their sightseeing and meeting Chinese colleagues. Blrd's eye view of Siianya City on Hainan island. Since it was founded in 1985, the company has received over 30 professional groups in education, medicine, the arts, agriculture and industry. The company has opened about 40 tourist routes, some of them follow the popular tourist routes through Beijing, Xian and Guilin; some are new, including one route, which goes along part of the ancient "Silk Road" from the Sino-Pakistan border to Urumqi, the capital of Xinjiang, via Kashi and Aksu. by Han GuoJIan Dragon Papercuts The dragon is the god of nature in ancient Chinese tradition. It is the product of the totemism of China's ancient clan society. It is also a symbol of the Chinese nation. Over the millennia the dragon's image has evolved and changed. These ore some folk dragon papercuts. NGLE-Brand Stai '^ware and Kitch China Nationallight Industrial Products Imj & Export Corporation, Tianjin Branch Address: 164 Liapning Road, Tianjin, Chin Cable: INDUSTRY TIANJIN TRIANGLE BRAND Telex: 23142 TJLIP CN