A CHINESE WEEKLY OF NEWS AND VIEWS
Vol. 31, No. 40 October 3-9, 1988 Projected Trends in Chinese Consumption Women as Half the Sky (photo by Bapbtepmchana, USSR) represents the labour strength of women who make up half the workforce. The photo is selected from the International Photo Exhibition, China Through Foreigners'Eyes.
by Zhang Yanbo BeijingR^vir HIGHLIGHTS OF THE WEEK
VOL. 31. NO. 40 OCT. .Vy, Future Development of Chinese Consumption CONTENTS • Despite being labelled an underdeveloped country, China's consumption of basic commodities in 1986 was already way NOTES FROM THE EDITORS 4 ahead of 1990 estimated averages for all developing countries. I'actory I.)ircLtors" Worries Based on the level of its current productive forces, China should EVENTS/TRENDS 5-9 now diversify its patterns of consumption (p. 20). Zhao: China's Future r
Subscription rates {1 year); USA _ US$24.00 Published every Monday by General Editorial Office Tel: 8314318 Australia A.$24.00 Canada CBn.$23.00 BEIJING REVIEW English Oept Tel: 831.5599 E«, 546 New Zealand ltlZ.$33.00 24 Baiwanzhuang Road, Distributed by China International Book UK £13.00 Beijing 100037 Trading Corporation (GUOJI SHUDIAN) The People's Republic of China P.O. Box 399, Beijing, China •i NOTES FROM THE EDITORS
Factory Directors' Worries by Jin Qi
t a recent forum organized by street with everybody yelling kill strative organizations. It has been Athe China Enterprise Manage• them! Kill them!" disclosed that a director of the ment Association to discuss But why has it proved so Balizhuang neighbourhood com• improvements to the economic difficult to handle cases that have mittee in Beijing's Chaoyang environment, directors and man• been investigated and confirmed? District openly reprimanded fac• agers called for the elimination of A commentary published in tory directors: "As long as your "the three pests"—officials who Renmin Ribao (People's Daily) on factories are located on our street, resold goods in short supply at September 16 analysed a case that no matter how large they are, we high prices (the "official rack• occurred in Shangyu County, have our own way to rule over eteers"), indiscriminate and arbit• Zhejiang Province, pointing out them." rary charges, and administrative that it could not be effectively Clearly the stipulations of 1984 interference with enterprises' dealt with because higher officials that government administrations decision-making powers. The dir• pleaded on behalf of the should not interfere with enterpr• ectors said "official racketeering" speculators. The commentary ises' decision-making powers poses the greatest threat. For refuted the argument that specul• (which were written into the example, the price of aluminium ation can develop production as Enterprise Law last year) have not ingots and siUcon steel plates has the profits obtained do not line been fully implemented. As reform doubled since the beginning of this private pockets but go to work has granted enterprises more year, forcing enterprises depend• units. rights, some administrative ent on these materials to limit It added that the Shangyu case bureaus have attempted to retain production. At present, enterpr• was only a small one, and asked their power by forming "admini• ises get about 40 percent of their whether there would be greater strative companies" and then capital goods through commercial difficulties in handling larger establishing "operational com• channels, with 60 percent directly instances of speculation where panies." allocated according to the state high-ranking officials are given plan. unprincipled protection by their By and large, they have been According to the State Admini• superiors. successful, for as the signs in front stration for Industry and Com• In recent years, with the of their buildings change over and merce, between 1987 and June development of economic reform over again, their power to interfere 1988, investigations into 317 and production, enterprises have with enterprises' autonomy has confirmed cases of speculation increasingly accumulated funds. not weakened. The argument used revealed 95 where capital goods This has led to many requests for to defend these actions runs had been resold, of which 58 "financial aid" and "support" simply that a socialist enterprise involved departments handling from local administrations. These cannot be without its superior. the supply of materials and charges, however, are often barely There are also complaints that equipment. Abusing their powers, disguised extortion. For instance, state-owned companies abuse they purchased capital goods in one instrument factory emitted their privileged buying rights. A short supply at a fair price and white smoke, but the department director of a cotton yarn factory resold them at far higher rates for responsible for checking pollution has said that under the system enormous profits, seriously dis• asserted it was black. The factory where the state had monopoly on rupting the market order. had no choice but to give a the purchase and marketing of The State Council has ordered banquet to treat these officials. capital goods, individual firms just the banning of "official racketeer• Having been feasted, they changed passed all their goods onto the ing" and public opinion strongly their minds and declared the state-owned companies. Now, demands punishment of those smoke was "white." however, these companies only involved, calling for them to be Enterprises also face many take products enjoying a ready treated like "rats crossing the charges from grass-roots admini• market — they will do nothing
4 BEUlNG REVIEW, -OCTbiBER 3-9, 1988 m EVENTS/TRENDS
Zhao: China's Future Reforms to Focus On Three Problems he conditions are now right for measures to separate the owner• TChina to introduce a stock ship of state-owned enterprises system, Zhao Ziyang, general from management powers. The secretary of the Communist Party contract responsibility system will of China, said on September 19 be practised in many enterprises, during a meeting with American and then, a system of stocks, in economist and Nobel Prize winner which the state will be the major Milton Friedman. shareholder, will be introduced. He pointed out that China's "This means major reforms in future reforms will focus on state-owned enterprises," Zhao about other products. resolving three problems— said. "And now the conditions Invigorating enterprises has reforming the pricing system, exist in which China can introduce always been the core and hope of controlling inflation and introduc• a stock system." China's economic reform. There• ing a stock system in enterprises. Zhao stressed that the direction fore, the problems uppermost in Pricing reform will go to the top China's economic reform will take the minds of factory directors and of the agenda, Zhao said. The will not change. The reforms will managers are major issues that reform will not simply involve be carried out unswervingly. must be tackled to consolidate the state readjustment and control of However, he added, some mea• reform programme at its present prices but also help establish a sures may need to he readjusted to crucial stage. This means: In mechanism for forming a pricing meet changing situations within accordance with the requirements system. Price reform will proceed tlie country. for developing a socialist com• along with controls over inflation, Zhao quoted an ancient modity economy, it is simulta• Zhao added. Chinese philosopher as saying, neously necessary to adjust "In the course of reform, we nationwide power structures ra• Reforms to enterprise mechan• should judge the time and size up tionally, establish an appropriate isms will also be carried out to the situation, keeping a balance economic order, and ensure the improve enterprise performances between relaxation and existence of effective regulatory and allow them to assume sole strictness." mechanisms. This involves both responsibility for profits and During the meeting, Friedman economic and political restructur• losses, he continued. briefed Zhao on his views on price ing and truly effective legal With this purpose in mind, reform, inflation and enterprise support — where "everyone is China will first of all adopt reform. • equal before the law." If this Chinese Communist Party ieader Zhao Ziyang meets with American economist iWiiton cannot be guaranteed, then illegal Friedman on September IS in Beijing. ^^^j JI^NEUQ encroachments upon the powers and interests of the state, the public, enterprises, and so on cannot be checked. In October, a nationwide campaign will be launched to combat tax evasion, financial irregularities and speculatory price hikes. It will concentrate on violations of discipline and the law by large enterprises and economic management departments. It goes without saying that the public hope this will effectively resolve problems and bring to justice those people who have taken advantage of reform to abuse their power for personal gain. • I
BEIJING REVIEW, OCTOBER 3-9,1988 5 • EVENTS/TRENDS
lists co-operate in this regard. the state power," the Chinese "You may set up several joint Youth News commented. Yet Technology Comes ventures or wholly-Japanese- today they tend to forsake their funded steel plants in China," said former choice. Before Loans Deng. • Zhang Liang, a 30-year-old functionary in a state ministry, enior Chinese leader Deng said he had been "under illusions S Xiaoping said in Beijing on Government Sees a about the state organizations" September 24 that his country Brain Drain before he was assigned a job there. hoped Japan would adopt an open He later found his initiative policy on technology transfer to hampered. He also found that ormerly pursued positions in China. employees in his department were government institutions are This would be more important F not promoted according to their losing charm for many of the than providing China with loans. talent and achievements, but to young employees during a struc• Deng said this at a meeting with a their Communist Party member• tural reform aimed at skimming Japan-China Economic Associ• ship and the leaders' own likes and the fat from government bodies ation (JCEA) delegation led by its dislikes. and improving efficiency. What permanent adviser, Kaheita they scramble for are now jobs Moreover, payment for govern• Okazaki, the chairman of the where they can get a higher pay. ment employees, especially young Japanese Federation of Economic people, is lowest compared with In the State Building Material Organizations, Eshiro Saito, and those in other walks of life. Their Bureau, for example, 60 percent of the chairman of JCEA, Ryoichi average monthly income is about young staff members under the Kawai. 100 yuan (US$26.8), while that for age of 35 have applied to work for Deng discussed with the company employees may double, newly estabhshed companies. In Japanese visitors the further or even triple. That casts a gloomy the bureau's Investment Admini• expansion of Sino-Japanese shadow on their life at a time of stration Division, only one of the economic co-operation. inflation. seven young employees was Some critics see the fact that "We are generally satisfied with willing to remain in the office. young intellectuals leave govern• the development of bilateral As too many young employees ment organs and cross over to relations in economy, trade and are leaving for new jobs,' the companies as a change of concept. other areas," Deng said. bureau, which formerly had 120 And this shift from pursuing extra employees, is now facing He said he hoped that the power to industrialism reflects a personnel deficiency. The direc• Japanese industrialists would take social progress, they say. a long-term view of Sino-Japanese tors have to talk with those who But others argue that the brain relations and asked the more than have not left, telling them to "take drain from st^te organizations 60 members of the delegation to the whole situation into account" may sacrifice the future quality of raise suggestions for China's and remain in the bureau. government personnel. "It is a economic construction. A circular was also delivered in dangerous sign," they say. Many Eshiro Saito said the present the bureau advising the young of them say a pay raise may be the principles and policies being people not to leave before ultimate cure for the brain drain. implemented by • China are replacements arrive. However, feasible. many young people are constantly He stressed the importance of trying to leave despite the circular. developing the steel industry, In the Ministry of Light Taiwan 'Legislator' adding that the average capacity Industry, 80 percent of the 936 in the world is 160 kilogrammes staff members expressed a desire Visits for Unity per person per year. To reach this to work for companies when asked • level, China needs to set up 10 about their aspirations during the ember of Taiwan's "Legisla• complexes the same size as the structural reform. Most of the 100 M tive Yuan" Hu Chiu-yuan is largest in the nation, the Baoshan people who have been transferred very eager to see the reunification' Iron and Steel Complex in to companies were young talents. of China's mainland and Taiwan Shanghai. Tens of thousands of graduates in his hfetime, and he demon• Deng agreed with his view on and post-graduates have poured strated this aspiration by flying to the importance of the develop• into central governmental depart• Beijing via the US on September ment of the steel industry and ments since 1982. "They are 12. suggested that Japanese industria• considered the promising future of On September 21, while Hu was
6 BEIJING REVIEW, OCTOBER 3-9, 1988 visiting other mainland cities, reunify in this century, the "China showed that the two drivers forgot Taiwan's ruling Kuomintang century" some predict for the next to slow the train down until it had (KMT) decided to expel Hti from century will never become a almost passed through the station. the KMT for his mainland visit, reality, he told students and In addition they had turned off the which clashes with the KMT's "3- teachers at Beijing University. cordless telephone linking them no's" policy (no contact, no As a scholar, Hu also discussed with the dispatcher's office, so negotiations and no compromise philosophy, history, art, literature they were unable to hear a warning with the mainland). It seems wbat and culture with scholars from the from the dispatcher. As a result, most upset the KMT was Hu's mainland. According to Hu, their train entered onto the main contact with certain Communists, China's civilization was once the track after breaking out of the particularly VIPs such as Li brightest in the history of the siding and collided with the Xiannian, chairman of the world, but since the Opium War in oncoming train No. 208. National Committee of the the 1840s, its glory has dulled. Hu, The two drivers were arrested Chinese People's Political Consul- along with many other main- last April after the public security tive Conference, and Li's landers,'believes that a revival can department of the Shanghai predecessor—Deng Yingchao. be expected in the near future. Railway Administrative Bureau During the past 40 years, Hu by Li Halbo investigated the circumstances said, both sides of the Taiwan leading up to the accident. At the Strait have achieved much success: hearing, the two drivers pleaded The mainland displayed the ability Train Drivers guilty to the charges and asked the of the Chinese to build a strong Sentenced court for clemency. xountry with the launch of its Officials from the Japanese rockets, and Taiwan attracted Consulate-general in Shanghai wo Engine drivers who caused worldwide attention with its and 300 spectators attended the a shocking train accident on the economic development. "If T hearing. • China's mainland and Taiwan can outskirts of Shanghai on March successfully reunify, the country 24 were sentenced to prison terms will surely prosper and become of six and one-half years and three Begging Becomes strong," he said. years in Shanghai on September 22. Popular Profession Hu, 78, also honorary chairman The court found that as a result of the China Reunification League of the negligence of the two lthough China never com• and publisher of the monthly drivers, the No. 311 passenger Apletely eliminated begging, a magazine Chung Hwa, discussed train from Nanjing to Hangzhou new kind of beggar has recently his views with people from collided with the NO. 208 train appeared. More people are different circles during his visit. from Changsha to Shanghai in choosing begging as a way to "Wlien it comes to the question of Jiading County on the ourskirts of make an easy living. It is quietly the country's reunification, people Shanghai. and gradually becoming a I talked to in Beijing shared almost A total of 28 Japanese and one profession. the same views," he said. The Chinese were killed in the crash, Everywhere—on city streets further development of relations and an additional 36 Japanese and and in public places such as between the two sides is irresi• 62 Chinese passengers were cinemas, restaurants and stible, obstacles may arise, but injured. The train wreck also stafions—one meets beggars they will eventually be removed, caused economic losses valued at stretching out their hands for "I am confident of that," Hu 3.4 milhon yuan and held up money with a sad story. But a added. traffic for 23 hours. recent investigation showed that Speaking of the way to only 20 percent of them have been reunification, Hu suggested that The court decided that Zhou reduced to begging by difficulties all political parties and groups on Xiaoniu, driver of the NO. 311 in life, compared with 80 percent both sides unite to seek a road passenger train, and his assistant before 1980. The rest—able- which all the Chinese people, driver, Liu Guolo'ng, were held bodied men and women who are at including those living in Taiwan, responsible for the accident. least able to make ends meet—see should take. There are foreign According to the schedule, the begging as an easy way to make forces who want to see the train should have halted at a money. In some places, a beggar separation continue for a long siding at the Kuangxiang station can make more than 100 yuan a time, so that they can use it to their and waited for the No .208 train day, about the amount an advantage. If China can not from Changsha to pass. Evidence ordinary worker earns in a month. . ; > y-i . . - iu BEIJING REVIEW, OCTOBER 3-9, 1988 7 1 EVENTS/TRENDS
One man from Anhui Province some beg in the day and prostitute The need for such a centre built new houses for his three sons themselves or gamble at night. became evident as the country's with the money he earned from Last year in Guangzhou, 35 reforms called for trained judges begging. A peasant from Hunan percent of the beggars were also and lawyers. Some believe that the Province said the money from classified as criminals. This success of China's ambitious begging is so good in Guangzhou seriously threatens the social modernization drive depends to a that 80 percent of his fellow order. large extent on its building up a villagers have done stints at it. Chang Dejiang, vice-minister of comprehensive legal system. The Civil Affairs, traced begging to opening of the centre will These professional beggars try two basic roots. Economically. contribute towards this, said one every way to win other people's China is still underdeveloped. of the centre's students. sympathy. They make up various Poverty-stricken regions and tragic stories, cry for help, or take After passing through a selec• families can be found in the people in with soft words. tion and examination process, 163 countryside, and many elderly people were enrolled into the At the train station in Xuzhou, people, children and handicapped centre. The students were mainly Jiangsu Province, a middle-aged people who are maltreated or vice presidents of intermediate man tried to help a female beggar abandoned by their families are people's courts or deputy chief over 30 who was weeping her heart forced to live on begging. justices of higher courts, as well as out because of the maltreatment The begging phenomenon some judges. Of the enrolled she supposedly received from her should not be neglected, Chang students 120 will be non-degree family. In the end, he was robbed said. "It is an important social graduate students, and the rest will of a suitcase with 500 yuan in it by task for the government to oversee be studying for masters or the woman and other beggars. and control beggars." doctoral degrees. Only then did the man see the trap Each year, the State Council hidden in the beggar's tears, and The centre, founded on Feb• allots tens of billions of yuan to ruary 13, is the first of its kind in his own tears started to flow. promote economic development One-quarter of Chinese beggars the country. Sponsored by the in poor areas. The government Supreme People's Court and the are women. Some of them are also spends an annual average of escaping from forced marriages State Education Commission, it 50 million yuan sending beggars has no campus, but has entrusted arranged by their parents. Some back home through 639 collection are mental patients. Others are the training of its students to stations nationwide. Beijing University and China people whose desire for money But the problem of begging surpasses their sense of shame. People's University, both boasting remains difficult to resolve. Chang strong law faculties. Children and teenagers make up called for better co-ordination China is by and large a country another 25 percent of those who among local authorities and beg. They haunt restaurants and ruled by leaders rather than laws, departments of transport, public but it is widely believed that a free markets in groups, stealing as security and civil affairs. well as begging. With the money, society controlled by laws is much The Ministry of Civil Affairs is fairer and more reasonable. they eat, drink, watch violent seeking to work out a policy that videotapes and go to the Chinese people began to realize prevents people without dif• this in the late 1970s, as the dancehalls. Some of the young ficulties from begging while people say openly that the plan to "cultural revolution" (1966-76) helping those in trouble improve came to an end and China opened go on begging. "I will never regret their lot through honest work. • it," one said. its doors to the outside world. To prevent the recurrence of a Some children under 10 years China Trains "cultural revolution" and to catch old are forced to beg by their up with developed countries, parents, particularly at train High-level Judges Chinese authorities recognized stations. One girl of about eight that they needed to build their own has begged at Jinan station for very year various new training legal system. When they set about four years. Nobody knows where Ecentres and schools make their this task, though, they found they she comes from or why she is appearance in China, but few seem faced many problems which could begging. She never says a word; to have raised as much attention not be solved in a short time. One her only action is to stretch out her as the China High-Ranking of them was a lack of legal httle hand to people who pass by. Judges Training Centre, which personnel. Today more beggars are taking held its opening ceremony in Now, after 10 years, things have to crime. Some steal and cheat; Beijing on September 13. changed greatly. According to
8 BEIJING REVIEW, OCtOBER 3-9, 1988 Teng Teng, vice minister of the Peng says China follows an ECONOMIC State Education Commission and independent, peaceful foreign September 19 deputy director of the centre, in policy and is willing to develop its the past decade, the rate of relations with other countries on • Three new corporations have enrolment of law students is the basis of the five principles of been set up to replace the former higher than for any other peaceful co-existence. He says all ministries for coal, oil and nuclear speciality. In 1987, he said, 13,139 countries, large and small, can energy disbanded in the re• students enrolled to study law in contribute toward defending structuring of central government universities and colleges, ten times world peace. organizations to separate govern• the number in 1978. "In 1979, we ment functions from those of had only 122 law graduated • A Communist Party and enterprises. students; last year we had 3,951," government delegation, headed by They are the China General Teng said. Vice President Wang Zhen, leaves Coal Corporation, the China Oil Beijing for Ningxia in northwest and Gas Corporation and the Nevertheless, China has fewer China to celebrate the 30th China National Nuclear qualified legal personnel than it anniversary of the founding of the Corporation. needs and there are more judges' Ningxia Hui Autonomous posts than the law graduates can Region. September 22 fill. Many senior judges who are Ningxia is China's only • The total industrial output experienced but less educationally provincial-level Moslem Auto• value for the Shenzhen, Zhuhai qualified need to receive further nomous region. It has a popul• and Shantou special economic training. ation of more than four million in zones in Guangdong Province In some cases the post of judges an area of 66,000 square totalled 4.45 bilHon yuan in the can be gained only through kilometres. first half of this year, the overseas recommendation and promotion edition of Renmin Ribao (People's rather than election and exami• Daily) reports. nation. To remedy this situation, September 22 Their total value of exports for Ren Jianxin, president of the • The Political Bureau of the Supreme People's Court and Chinese Communist Party Central the same period exceeded US$1 director of the centre, said China is Committee called a central work billion. drafting its first law on judges, conference in Beijing from CULTURAL which specifies that a national Septemeber 15-21, Xinhua examination system be passed and reports. September 19 a selection system used under Presided over by General • A new TV series based on which a judge of a senior court Secretary Zhao Ziyang, the famous Chinese writer Ba Jin's must be selected from outstanding conference discussed the country's novels. Family, Spring and judges in subordinate courts. The economic situation and worked Autumn, has been filmed jointly by supreme court and some selected out important policy proposals on the Shanghai and Sichuan TV local higher courts will reportedly checking inflation and deepening stations, Xinhua reports. try the new method of judicial reform. The 19-episode series, which is appointments next year. being dubbed into Enghsh, is the second longest Chinese television "The foundation of the China September 24 series of the year, following The High-Ranking Judges Training • The Political Bureau of the Last Emperor. Centre will pave the way for the Central Committee of the enactment and practice of the new Communist Party of China (CPC) Septemeber 22 ^ law," said Ren. holds its 12th plenary session in • The China Science and Tech• by Li Haibo Beijing today, Xinhua reports. nology Museum, the first of its The session has decided that the kind in China, opens to the public. Weekly Chronicle third plenary session of the 13th Situated in the northern part of (September 19-25) Central Committee of the CPC the capital, the museum covers an will be open on September 26. The area of 7.1 hectares and has a floor POLITICAL meeting discussed and passed the space of 53,000 square metres. Party's working report made by On display are more than 500 September 20 General Secretary Zhao Ziyang, exhibits showing the development • In talks with visiting Sri which will be submitted to the of ancient Chinese tradifional Lankan Prime Minister Ranasing- forthcoming third plenary session technology and 125 exhibits on he Premdasa, Chinese Premier Li for examination. modern science and technology.
BEIJING REVIEW, OCTOBER 3-9, 1988 9 INTERNATIONAL
UNITED NATIONS conventional weapons and to stop the arms race in space. Because of 43rd Session Faces Challenges the US ' stubborn oppo• sition, the session failed to reach a final unanimous agreement. But some resolutions on disarmament A new trend of international detente offers the latest United in the current session will reflect Nations General Assembly session an opportunity to assert ideas most countries had itself in settling some long-standing world problems. supported. There will also be an intense struggle around the long-standing Kampuchea problem. In recent elegations from 159 member problem, seeking to find a way to months, with the Soviet troops' Dstates of the United Nations resolve it. withdrawal from Afghanistan and. attended the 43rd session of the Disarmament is another im• the ending of the Iran-Iraq war, UN General Assembly, which portant topic in this session. world opinions and deep concerns opened on September 20 in New Caputo described the recent are focusing on the conflict in York. change in the world scene as the Kampuchea. It is predicted that in With the settlement of some most important one since World this session there will be more calls conflicts in Afghanistan, southern War II. The session will further for Viet Nam's immediate with• Africa and the Persian Gulf, the encourage the current disarma• drawal from Kampuchea in order intense world situation seems to ment tendency. Although a good to clear the way for a true political have turned to detente. Clearly, beginning appeared in the dis• settlement of the conflict. the United Nations is playing an armament treaty between the In coping with its unpre• increasingly large role in mediat• United States and Soviet Union, cedented isolation on the world ing difficult problems, and implementation will be difficult. stage, Viet Nam has been feigning Secretary-General Javier Perez de In the third special session on a desire for a political settlement Cuellar himself has drawn due disarmament of the General so that it would not be labeled an appreciations from the intern• Assembly held in June this year, aggressor. Viet Nam has attem• ational community. In accordance most countries gave suggestions pted to confuse the session by with the changing situation, the urging the United States and insisting that removal and con• General Assembly put economic Soviet Union to carry through on demnation of the Coahtion development, disarmament and disarmament of nuclear and Government of Democratic Kam- local conflicts on its top agenda. "We should endeavour to settle inequalities between the Northern and Southern hemispheres," The 43rd session of the UN General Assembly may be the most influential one yet. by GAO XUEYU stressed Dante Caputo, the newly elected president of the General Assembly. In 1988, the world economy developed slowly, and the existing gap between the South and North widened. Currently, the total foreign debts of developing countries have exceeded US$1,200 billion. The payments per year, principal plus interest, amount to about US$ 150 billion. This greatly exceeds recent annual foreign aid. The crisis of debts in developing countries not only decreases the world market but also retards the growth of developed countries. The 43rd session of the UN General Assembly will discuss the worldwide concern for this
10 BEIJING REVIEW, OCTOBER 3-9. 1988 puchea is the key to resolution. Now the majority of countries, the US Congress asserts that Thereby, the Vietnamese govern• in the spirit of detente, are Soviet electronics and computer ment has demanded modification determined to jointly discuss, science drags behind the United of resolutions on the Kampuchea consider and deal with intern• States from seven to 10 years. problem passed by all previous ational affairs and further con• Proceeding from these realities, sessions. Viet Nam's activities tribute to the cause of peace and Soviet leader Mikhail Gorbachev have thus raised the watchful development. reconsidered the status quo of concern of many delegations.. by Chu Qimen socialistic and capitalistic systems. An offer was made to readjust relations with the United States US-USSR and the Soviet foreign policy in the hope of gaining a peaceful international environment to Detente Reflects Economic Pressures realize the Soviet long-term economic development strategy The recent readjustment in US-Soviet relations has deep and narrow the distance Moscow economic roots and is expected to exercise a favourable has fallen behind Washington. influence on international relations in the long run. The US foreign poHcy since the Second World War has been characterized by an attempt to The signing and implementation national product (GNP). it is contain the Soviet Union and the of a treaty on the elimination of third, having already been sur• spread of socialism. For this end, intermediate-range nuclear mis• passed by Japan. in 1951 the United States passed siles between the United States According to Japanese official the Marshal Plan and provided and the Soviet Union marked a statistics, the Soviet GNP was 52.3 US$13.3 billion in aid to Western new era in their bilateral relations. percent that of the United States in Europe, greatly accelerating its Confrontation and a race for arms 1980, 52.4 percent in 1986 and is economic recovery and develop• has changed to a dialogue and expected to fall to 50.7 percent by ment. Washington also tremen• economic competition. 2000. dously promoted Japanese This economic competition is a Soviet official figures place the economic revival and structural race of "comprehensive national Soviet national income at around readjustment by providing tech• strength." A Japanese research 31 percent of the US figure in nology, market and other pre• institute defines it as a country's 1950, 58 percent in 1960, 65 ferences to Tokyo. In the eyes of ability to contribute, survive and percent in 1970, 67 percent in 1975 US authorities, Soviet economic reinforce. But economists gener• and 66 percent in 1985. might is still no match and ally believe that it is mainly It is noteworthy that in the constitutes no actual threat. centred on econoiriic might and 1950s and 1960s, the Soviet Union An August 11 US Wall Street the level of scientific knowledge was catching up with the United Journal article said a series of and technology. States mainly by taking advantage major changes that recently have Studies show that the compre• of resource superiority. Though taken place in the world have hensive national strength of the having exceeded the United States forced the United States to United States is 10, the Soviet in certain areas, such as the yield reassess its national interest. The Union, 8 and 4-5 for Japan and of oil, cement, iron and steel, the old security policy to contain Western Europe respectively. Soviet Union still lags far behind communism, which it has pursued Detente has been a result of the United States in economic consistently, has proved unsuit• growing economic pressures on efficiency, quality and technology. able for today's new situation. The the United States and Soviets to Some Soviet economists estimate accent of new policy should be compete. Since the mid-1970s, the that their country falls behind the centred on how to deal with Soviet economic growth rate has West more than a decade in those economic competition, the article slowed down markedly and come areas. said. to a halt, revealing a gap that is re- Some Western scientists agree In fact, it is now Western widening between the Soviet that in high-tech fields, such as Europe and Japan who have economic might and that of the computer science, life science, new become arch economic rivals for United States. In terms of materials and photoelectronic the United States. This can been comprehensive national strength, technology, the Soviet Union seen in regard to Japan as follows: the Soviet Union is still second in trails not only the United States the world. But in terms of gross but also Japan. A report issued by First, Japan is narrowing its gap
BEIJING REVIEW, OCTOBER 3-9, 1988 • INTERNATIONAL
with the United States in is meeting with fierce competition million mainly inhabiting the economic strength. Statistics show from Japan. The Japanese govern• cities and flatlands along the the steady rise of Japanese GNP in ment is co-operating with enterpr• Mekong. Thailand forms the main proportion to that of the United ises in a major effort to develop corridor for its imports and States: one-twentieth in 1950, one- high technologies. This has exports. An estimated 90 percent eighth in 1965, one-third in 1985 aroused grave concern from the of goods on the markets in and one half in 1987. The Japanese Unites States. Vientiane come from Thailand. per-capita GNP figure has already Faced with such a challenge, the In the first half of this year, the surpassed that of the United United States naturally welcomes trade volume between Laos and States. the Soviet peace offensive. In Thailand increased by 82 percent Second, the United States has doing so, the United States can from the same period last year. In fallen to become the largest debtor improve its relations with the early September the two countries nation in the world. By the end of Soviet Union and concentrate on signed a contract on the joint 1987, US net foreign debt its competition with Japan. establishment of a clothing amounted to US$368.2 biUion. The readjustment in US-Soviet manufacturing plant. The con• Japan, on the other hand, owns relations is not tactical but rather tract marks the first jointly- US$240.7 billion in net overseas strategic. The relaxation of their financed project since Laos issued assets, ascending to the largest relations benefits not only the two a law on foreign investment in July creditor nation in the world. countries but will produce a vast this year. Under the law, Laos is Japanese capital is flooding into influence on world politics and expanding its economic, scientific the United States, and some economy. Countries throughout and technological co-operafion Americans have begun to ask the world can make use of the with foreign investors to exploit its themselves: "Is America for sale?" favourable environment to carry potential resources. Third, in high-tech areas, out economic adjustment and Trade relations between Laos although still maintaining its reforms. and China have been gradually leading position, the United States by LI Changjiu developing on a mutually beneficial basis since their dip• lomatic relations at the am• LAOS bassadorial level were restored. In early September, a Chinese trade delegation visited Laos and the Foreign Trade Ties Expand two sides held friendly talks on a long-term trade agreement and a Since the Lao People's Revolutionary Party instituted a series trade agreement for 1989. They of reform measures at the Fourth National Congress in 1986 also amicably discussed the issue and began implementing economic reforms, Laos has seen of border trade. many changes for the better, especially in foreign trade. An underdeveloped country with many mountain areas, Laos is rich in natural resources. But ie Laotian People's Demo• mainly balanced by foreign aid backward communications and Tcratic Republic has established and loans, 80 percent of which transportation systems, and a lack and developed trade relations with came from the Soviet Union and of funds and technical personnel many countries and regions in the other European countries. have meant the resources cannot world, including Hong Kong, Laos' main export goods be fully exploited. This is the Japan, Singapore, Thailand, include electrical products, coffee, main problem' facing the France, the United States and tin, gypsum, handicrafts and economic construction. The law China. forestry products. Exports to on foreign investment was passed In 1987, Laotian Vice-Minister capitalist markets in 1987 amoun• to try to ease such difficulties. of Foreign Economic Relations ted to US$35 million, US$32 As part of its economic reform and Trade Somphavan Inthavong million of which came from programme, the Laotian govern• said, the country's total trade electrical products and timber. ment is also expected to open more volume was US$280-million, with Exports to sooialist countries were to the outside world.- A series of exports accounting for US$64 valued at US$29 million. measures have been adopted in the milUon and imports US$216 Located on the banks of the past two years to turn the million; this put the trade deficit at Mekong River, Laos is an inland economy around. Apart from the US$152 million. The deficit was country with a population of 4 law on foreign investment and
12 BEIJING REV«EW, OCTOBER>B-.9,/1M8a agricultural reforms, they include welcomed by industrialists and ges the Palestinians' inalienable relaxing restrictions on trade businessmen in Vientiane. rights. Arafat carefully sidestep• larifts for imports and exports, Although progress has been ped the issue at the European simplifying entry and exit form• made in economic reforms and Parliament, apparently in a bid to alities for imports and exports, foreign trade expansion, Laos still head off more internal quarrels. and making it possible for both faces many difficulties: it lacks the Nevertheless, the PLO leaders state and private enterprises to funds and qualified personnel have agreed to refer the issue to the expand import arid export trade needed to exploit its rich natural 450-member Palestine National With foreign countries. The resources, and is plagued by a Council (PNC), or parliament in reforms and the policy of opening poorly developed infrastructure. exile, to decide. The PNC had to the outside world are widely by Ling Dequan delayed its scheduled full session till October in Algiers to allow PLO more consultafions. But no firm date has been set so far.
Arafat Drums Up World-wide Support At the verge of proclaiming the Yasser Arafat recently proposed a comprehensive solution to provisional government, the PLO's foreign affairs spokesman the long-standing Arab-Israeli conflict based on UN-relevant Farouk Kaddoumi attended a resolutions when he addressed the European Parliament. non-aligned meeting in Nicosia, capital of Cyprus, on September 8. He urged the UN to shoulder ready to talk with any Israeli asser Arafat, chairman of the temporary responsibility for the officials about the projected Y Palestine Liberation Organiz• West Bank and Gaza Strip, where establishment of a Palestinian ation (PLO), had an opportunity a popular uprising against Israeli state "within the framework of the recently to express at a European occupation is maintaining mom• United Nations." forum the desire to forge a lasting entum after nine months and peace with Israel by establishing Arafat's move is seen as part of breathing new life into the an independent Palestinian state. a drive to drum up world-wide Palestinian movement. Addressing the Strasbourg- support for the PLO in confront• . To get the plan to work, Arafat based European Parliament in ing new challenges arising from has to persuade some of his France on September 13, the PLO Jordan's July 31 decision to cut off colleagues first to accept the chief suggested a comprehensive legal and administrative links with reality — the "de facto" recog• solution to the long-standing the West Bank. nition of Israel within the pre-1967 Arab-Israel hostility be based on a Jordan described its withdrawal boundaries. Abu Sharif, one of package of UN-relevant reso• as a move to strengthen the PLO's Arafat's closest aides, earlier this lutions, including the controver• position in future negotiations. year advocated a two-state sial Resolution 242 of 1967. Surprised by such a decision, the solution (acceptance of Israel Despite international pressure, the PLO, known as the sole and along with a Palestinian state) to PLO had refused to accept the legitimate representative of the the Arab-Israel dispute. But that resolution because it fails to Palestinian people, had to fill the triggered a wave of protest by address the Palestinians' rights to vacuum and assume responsibility Damascus-based hardline PLO self-determination and an inde• for the West Bank. But the PLO groups. pendent state. leaders seem not to have yet Altiiough Arafat had previ• reached a consensus on the ways The most formidable obstacle ously put forward similar pro• and means of tackling the issue. comes from Israel, which has long posals in interviews and individual During a series of meetings in stubbornly rejected a Palestinian meetings with politicians, his Baghdad in mid-August, some state or even talks with the PLO. Strasbourg speech marked the PLO leaders suggested a provi• Nor has the United States first time he laid down such a sional government, comprising retreated from its stand of no talks detailed written plan to an known PLO figures and leaders with the PLO. international gathering, indicating from inside the occupied territory, No matter what will happen in a "fundamental change" in the be established as a prerequisite for the future, the worldwide general way the PLO presents itself. an independent state. But the so- peace trend is not reversible. The To further the PLO's peace called "hardhners" considered it Middle East, also, will surely find image, he indicated at a press as equal to the recognition of a way out of the present deadlock. conference the next day that he is Israel before Tel Aviv acknowled• B6WIN.6rR£VIEW, OCTX3BEBL.3-9, ia8& 13 •i ARTICLES Arts and Crafts: Protection, Expansion, Innovation China tool< another step towards protecting and fostering its traditional arts and crafts by conferring the honorary title of "Master of Chinese Arts" on 96 of the nation's most accomplished artists and craftspeople at the Third National Assembly of Art Workers last April. These masters will be given better working and living conditions; biographers will write books about them; and their works will be collected. by Our Correspondent Li Li hina took another step about the time of the Han Dynasty includes many subtypes; for Ctowards protecting and foster• (206 BC-220 AD), and from then example, sculpture includes work ing its traditional arts and crafts on both pottery and porcelain in jade, ivory, stone, wood, by conferring the honorary title of became major forms of traditional bamboo, bone, and clay, among "Master of Chinese Arts" on 96 of Chinese art. Other forms include other media. Also considered as the nation's most accomplished the tri-coloured glazed pottery of part of Chinese arts and crafts are artists and craftspeople at the the Tang Dynasty (618-907), the a profusion of other forms such as Third National Assembly of Art printed white porcelain of the sandalwood fans, silk figures, Workers in April. Song Dynasty (960-1279), blue- potted landscapes, leather sil• This unprecedented event was and-white porcelain of the Yuan houettes, opera facial makeup, evidence of the government's Dynasty (1279-1368), and the coloured lanterns, papercuts. The effort to protect and preserve a enamelled glaze ware of the Ming list numbers in the thousands. major aspect of the nation's and Qing dynasties (1368-1911). Chinese arts and crafts are cultural heritage. The masters Traditional Chinese arts and famous not only in the homeland named this year, and others who crafts include ceramics, sculpture, but also abroad. The ten best- will be named every three years metalwork, lacquerware, knitting known centres for their produc• from now on, will be given better and drawn-work, embroidery, and tion are the cities of Beijing, working and hving conditions; carpet-weaving. Each category Tianjin, and Shanghai, and the biographers will write books about them; and their works will be collected. Long History, Wide Variety It was as long as 4,500 years ago that the ancient Chinese began shaping and firing clay, creating painted pottery in the forms of bowls, basins, pots, and other household objects. The red, grey, white, black, and multicoloured containers were decorated with carvings of animal figures, geometrical patterns, and depic• tions of human beings. Their natural, delicate and aesthetic quality is still valued today. Porcelain manufacture began 14 BEIJING REVIEW, OCTOBER 3-9, 1988 •i ARTICLES goblets from Jiuquan in Gansu, and coconut sculptures from Hainan. Government Support The 40 years since the founding of the People's Republic have been a flourishing period for traditional arts and crafts. For one thing, the number of craftspeople working in these fields has increased enormously. According to 1987 figures, 3,600 enterprises. 770,000 workers, and 3.6 milHon involved in village and town units and households are producing arts and crafts. The output value of and foreign currency earned by arts and crafts have also grown. In 1952, total output value in this A Suzhou sandalwood fan. XU XIANGJUN area was less than 100,000 yuan; by 1987, it was 9.5 bilHon. Foreign currency revenues rose from provinces of Jiangsu, Zhejiang, national art treasure. A weaver at work in the Shandong Province Taian Carpet Factory, famous Shandong, Fujian, Guangdong, If Beijing is known as a capital abroad for its antique style carpets. Hunan, and Sichuan. Beijing is for all the arts and crafts, Tianjin is YANG LIMING not only the political capital but best-known as China's major also the capital of arts and crafts, producer of high quality carpets. witl>dozens of ateliers turning out Tianjin's 90-warp, pile-cut rugs jade objects, ivory carvings, are made of the finest-quality wool carved lacquerware, cloisonne, and are characterized by resi• filigree, and jewelry. Jade carving lience, exquisite craftsmanship, is one example. Artists such as Li and various beautiful designs. Bosheng, a 47-year-old "Master" Luxurious silk carpets are another who works at the Beijing Jadeware major product. By the beginning Factory, carved an image of the of this century, Chinese rugs had "Buddha of Infinite Longevity" become a major export item; they on a piece of agate which had more have won many prizes at than ten colours. Like other jade international fairs and expo• carvers, he matched his workman• sitions. The large Great Wall ship to the jade's natural forms, tapestry in the lobby of the United veins, and colours to create a Nations Building in New York natural-looking, harmonious was made in Tianjin. work. A dark reddish-brown The varied arts and crafts which section became the Buddha, while make use of local raw materials a bluish-white section was carved from China's provinces include to depict the Buddha's patchwork Nanjing scaling tissue, red pottery robe (the Buddhist kasaya), the from Yixing, clay figurines from moon, floating clouds, and the Huishan Mountain in Wuxi, flowing water. Another grey- Jiangsu, Duanyan ink-slabs: from coloured section became flying Zhaoqing in Guangdong, iron birds, an incense burner, and pictures from Wuhu in Anhui, gentle waves. It is no wonder that bamboo-and-silk fans from Zi- this work has been named a gong in Sichuan, translucent wine BEIJING REVIEW, OCTOBER 3-9, 1988 15 •i ARTICLES US$36.8 million in 1949 to US$2.2 voted to this field have been arts and crafts. billion by 1987. established. These schools teach In July 1957, the First National This period has also seen ceramics, clothing design and Assembly of Art Workers opened important innovations in design, manufacture, dyeing and weaving, in Beijing. The meeting adopted techniques, the use of raw furniture design, lacquerware, the fundamental principle of materials, and new varieties of decorative painting, sculpture, "protecting, expanding, and pro• crafts. For example, straw weav• and other subjects. moting" traditional arts and ing formerly used only wheat Traditional arts and crafts have crafts. It also adopted measures to stalks, cat-tail stems, mat straw, also enjoyed increasing intern• care for elderly artists, train new and a few other materials. Since ational prestige during the past 40 workers, and encourage the the early 1960s, new materials years. They have been exhibited creation and design of new art such as corn husks, cobs, alpine on more than 300 occasions in 100 forms. These actions were so rushes, salt-water straws, nations and regions and have successful that from 1957 to 1965 bamboo-shoot shells, and many received acclaim from viewers and the total output value of the arts kinds of weeds have come into use. critics. Between 1979 and 1988, 23 and crafts industry tripled. Recently developed crafts include products including Chinese car• China's First National Arts and feather-and-shell pictures which pets, carved lacquerware, carved Crafts Exhibition took place in developed in the late 1950s, plastic porcelain, embroidery, and jew• 1972, during the "culturar revo• flowers which developed in the elry have either won gold medals lution." More than 10,000 visitors 1960s, and the polyester flowers or taken first place at various from 90 countries came to view the and coloured-stone and thin- international fairs and 30,000 works on display. The wood inlaid pictures of recent competitions. exhibition, sponsored in comp• years. These results are due in no small liance with Premier Zhou Enlai's Another indication of the measure to support by the Chinese instructions, played an important development of Chinese arts and government. In the early years role in counteracting the prevalent crafts has been the establishment after the founding of the People's ideology of rejecting China's past. of schools and departments for the Republic, the government made The second exhibition, held in training of artisans in addition to efforts to halt the decline of the 1978 after the end of the "cultural the traditional apprenticeship arts and crafts industry by revolution," was another affirm• system. The Central Fine Art instructing local institutions to ation of the government's policy Institute, China's only compre• help folk artists who had given up of protecting and expanding hensive art institute, was founded their trades and encourage them to China's arts and crafts. in 1956, but since then more than return to their original profession. The Second National Assembly 60 college departments and The government also collected, of Art Workers was held in Beijing secondary technical schools de• excavated and collated traditional in 1979. It reviewed the orient• ation, planning, and tasks of arts A piece of iacquerworit made in Stiangliai depicting a Confucian Temple in Taiwan. and crafts creation and design under the new circumstances, and singled out many outstanding older artists and designers for commendation. The Third National Arts and Crafts Exhibition, held in 1987, documented the remarkable achievements of the previous eight years. Exhibits included not only valuable classic works but also a large number of newly created pieces which combined traditional techniques and innovative ideas. Like earlier exhibitions, it won wide acclaim. New Problems, Solutions Although China's arts and 16 crafts industry is now better- traditional works to be halted, modern art, foreign art, and the developed than ever before, it still And the combination of low arts of China's minority peoples. faces difficulties and problems as profits and low wftgesha* deterred Designers should be aware of the nation's economic and social many ambitious young people current living trends so they can reform proceed. For example, from becoming apprenticed to create practical works by combin• traditional arts and crafts are less master artisans, thus thrtatening ing traditional art with modern competitive than other industries the future development of the life. Only in this way can the arts because they are usually small- industry. and crafts industry satisfy the demands of the international market, expand exports, and at the same time broaden domestic sales. The assembly also agreed that measures must be tnkea to protect the arts and crafts industry from being squeezed out in the heated competition gifitnUNMA by China's move to a coffilAdliifi^ «ft»nomy. The participants' stiidy of pro• blems being faced by the industry and an examinatioD of the experiences of other nations in this area led them to decide to: • Classify and label traditional works in order to manage them and guarantee quaUty and authen• ticity. The departments concerned are now preparing certificates and marks which will be used for instructions, trademarks, packag• ing, and advertising. Pieces and enterprises not eatttled to use these designations will be for• bidden to use them. • Grant preferential treatment and support from governments at all levels in taxation, credit, and supplies of materials to designated enterprises. Detailed rules and reguladons governing these proce• dures are now being studied. HUANG JINGDA • Create the system of honorary Artist JIa Yusen (left) completes a Jade carving of flowers and Mrde at the Beijing titles mentioned at the beginning Great Wall Arts and Crafts Factory. of this article. • Collect and protect classic arts and crafts works. The first China scale enterprises where the The problem of protecting the Arts and Crafts Exhibition Centre production process is long and arts and crafts industry was a will open in Beijing in 1989. It will labour-intensive and profit mar• major topic of discussion at the house all the ancient, modern, and gins are low. Third National Assembly of Art contemporary works collected by In addition, rapid increases in Workers this year. The partici• the nation. the cost of raw materials, coupled pants agreed that artisans should with supply shortages, have begin integrating traditional con• • Speed up the training of caused production of some cepts with recent achbvements in -^alified artisans. • 17 >i«BIJltC(?lREVIEW, ommm 3-9,US>88 Modern Chinese Embroidery by Our Correspondent Li Li A double-sided embroidery entit- traditional handicrafts. This form stitches in use during the Han led Gazing at the Moon hangs of embroidery, in which two Dynasty (206BC-220) are still in in a Beijing museum. One side entirely different scenes are use today. During the Ming and shows the back of a woman, created on one backing, began in Qing dynasties (1368-1911), pain• wearing a gown of silk gauze and the late 1970s. When works using ters became involved in the gazing at the moon. The other side this technique were exhibited in design of embroidery patterns. shows her beautiful face. The hazy the United States and Canada a The Hunan style tends to be moonlight, vividly portrayed few years later, viewers reacted realistic and to use vivid colours. through the use of diaphanous enthusiastically. The use of varied stitches and blackish-green lustring and special China has four major centers of precise outlines gives a three- light-refracting threads, creates embroidery: Hunan, Guangdong, dimensional effect. This form of shadows that bring out the Sichuan, and the city of Suzhou in embroidery which offers two woman's longing for her far-away Jiangsu Province. Fragments patterns totally different in either lover. discovered in ancient tombs colour or stitching evolved from This embroidery is an ingenious indicate that folk embroidery single-side and straight double- and lovely example of a newly dates back to the fifth century BC sided embroidery, which presents developed Hunan art based on in Hunan and that many of the the same image on both sides of a backing. The exquisite Hunan embroidery of Luo Zibin, a designer at the Hunan Embroidery Huang Cuifeng, a master Research Institute, has proved highly popular. NING GUANGOIAN designer at the Hunan Embroid• ery Research Institute, was the creator of this unique de• corative art form. A native of Guangdong Province, Huang, now 49, graduated in 1964 from the department of traditional Chinese painting of the Guangz• hou Art College and was.assigned to the Hunan institute. After becoming a specialist in Hunan embroidery, he began designing patterns inspired by the depictions of beautiful women found in traditional Chinese painting and worked with artisans to see if they could be created through needlework. Huang has used traditional skills to express new ideas. For example, in 1985 he and his colleagues adapted the succinct• ness, unpretentiousness, and fine texture of Hunan folk stitcherto create patterns made up -'of coloured geometric planes. This introduction of modern aesthetic elements proved highly successful, and within six months they had 18 BEIJING REVIEW, OCTOBER-3-?;! 1988. d s produced a collection of more than 500 items, including wall hangings, screens, cushions, bags and clothing which have sold well domestically and abroad. Although there are few dif• ferences in the stitches used in Sichuan and Hunan embroidery, the Sichuan style has its own characteristics. Peng Yongxing is the best- known master of contemporary Sichuan embroidery. He began learning embroidery when he was nine and is now working at the Chengdu Embroidery Factory. In the late 1950s, Peng designed a single-sided embrodidery screen, Lotuses and Carps, a strongly three-dimensional piece which features clusters of lotuses of varying heights and plump carp swimming against a background of white satin. This classic work too is now at the Beijing museum. Guangdong-style embroidery is noted for its use of embossing; the use of layers of thread heightens the three-dimensional effect. The lavish use of bright red, green and gold threads makes many of these A Suzhou embroiderer. XU XIANGJUN works bright, and even sometimes garish. It is used in many decorative items given at wedd• the Song Dynasty (960-1279). By Europe displaying her works, ings, births, and on other the 15th century, the characteristic which elicited wide praise. In occasions. Suzhou style—winsome cats and recent years, she has not only One famous Guangdong-style elegant goldfish are typical continued producing her own work is Nine-Dragon Screen, an subjects — was already fully devel• embroidery but has also been adaptation of a traditional oped. In the past 40 years, and duplicating ancient designs and Chinese theme. This 1983 piece especially during this decade, writing books on basic stitches of uses the typical layering, this time Suzhou embroidery has reached Suzhou embroidery, double-sided of gold thread, to depict rtine new heiglits. The city alone has embroidery, and other subjects. golden dragons leaping majesti• three embroidery factories which Gu believes that the quality of cally from the ocean's waves. The employ more than 3,000 workers. Suzhou-style embroidery must be dragons' scales stand out as much There is also a research institute improved if it is to survive and as two centimetres from the with 300 staff members. In flourish. She has therefore been backing. The effect of the ocean's addition, as many as 100,000 working to establish a Suzhou spray is created with silver thread individuals in nearby towns, embroidery research institute piled up layer upon layer so it villages and households specialize where ancient works will be stands out from the blue waves. in producing embroidered works. preserved and duplicated and the Of all four Chinese embrodiery Gu Wenxia is the head of the feasibility of new styles studied. styles, that of Suzhou was the Suzhou Embroidery Museum. She However, she added that the earliest to develop on a large scale. comes from a family of em• institute's most improtant task Centralized embroidery work• broiderers and is an expert in will be to train and raise the shops and neighborhoods ap• Chinese arts and crafts. In the standards of Suzhou's embroidery peared there as early as the start of 1950s, she travelled to Western artisSns. • B^N(S REVIEW, OCTOBER 3-9, 19'88' 19 m ARTICLES Projected Changes in Chinese Consumption With a per-capita GNP of less than US$1,000 a year, China Is clatflf|*tf as an underdeveloped country. Yet, in 1986, Its consumption of basic commo#iiil Was way ahead of the estimated averages for all developing countries. BulMnHi on this foundation, China is aiming to structure its consumption along the itfiii of the economically developed countries of Western Europe and North America. by Ding Shengjun ie World Bank classifies With sufficient supplies of most other textiles with sji^lfisjal fibres. Tnations into three categories: necessities for life, it is now Between 1971 W» ll8l, the economically underdeveloped, i.e. perceived that China should percentage of cotton in all fibres with a per-capita GNP of less than attempt to structure its consump• fell by 6 percent, and it is expected US$1,000 per year (36 percent of tion along the lines of the to drop another 3.7 percent by ihe world's countries); secondary economically developed countries 1990. In the past 30 years, per- developed countries, with a per- of Western Europe and North capita income spent on clothing capita GNP of US$1,000-5,000 America. has fallen 30 to 60 pfettent. (34 percent of countries); and Since World War II, these 3. With increased buildings, developed countries, with a per- countries have witnessed both an renovafion and itiodernization, capita GNP of more than increase in per-capita GNP and a expenditure on housing has USS5,000 (30 percent). diversification of their patterns of increased to around t-\Q percent China falls into the first consumption. The major changes of total expenditure. category. But among the economi• have been: 4. The growth ifl c|r ownership cally underdeveloped nations, 1. Expenditure on food has been and tourism has puahtd expendi• Chinese consumption of basic reduced to less than 20 percent of ture on transport and travel up of commodities in 1986 was already total expenditure. 38-250 percent. way ahead of the 1990 estimated 2. Lacking large-scale cotton 5. The percentage ©f expendi• averages for all developing growing areas, many economi• ture on services has riseh 50-140 countries, as the table belo'w cally developed countries have percent. More money is now spent shows. replaced cotton in clothing and abroad and individMl Consump• tion has become llxible and Annual Per-Capita Consumption of Basic Commodities individualized aerSSS many varieties of goods. . Developing Estimated The structure of eeasttmption in Country China China Average China differs greatly from the Average 1980 1986 for DCs 1990 Western model. In 1986, around (1979-81) 55 percent of per-eapita expendi• ture went to food. The egahtarian Total grain 213 kg 330.5 kg 391 kg 232 kg practice, known as "everybody Feed grain 36.3 kg 39.2 kg 69.8 kg 43.2 kg eating from the same big pot," Meat 12.6 kg 12.8 kg 17.5 kg 13.9 kg combined with a welfare type of Heat (daily) 2350 kcal NA 2485 kcal* NA distribution and artifieially low Protein (daily) 57.5 g NA 66.8 g* NA prices for farm produce have Fat (daily) 40.6 g NA 49.3 g* NA contributed to the current situ• Clothing- -total ation where increased purchasing fibre 3.42 kg 3.48 kg 10.58 kg 3.83 kg power is principally used for Cotton 2.16 kg 2.63 kg 3.16 kg 2.22 kg buying more food. The demand fof food has brought greater pressure on the '=1982 figures. supply of farm produce and has 20 ^BEIJINGiReVIEW, OCTOBeRm.a.TO88 hampered the expansion of standards of living and conve• oped countries was 175.5 kilo• expenditure on housing, cultural nience in China. grammes, but the figure for the and educational matters, and Changes to the Menu feed grain was 408.5 kilo• services. All of which have raised grammes— or 2.3 times more problems for the balanced growth Although eating habit and diets grain was eaten via meat than of the Chinese economy. vary enormously from one directly. country to another, they all The excessive consumption of roughly fall into one of two animal foodstuffs can lead to heart Restructuring categories: either principally com• disease, hardening of the arteries Consumption posed of grain and other and obesity, seriously threatening people's health. Therefore, nutrit• Based on the level of its current ionists in the West have long been productive forces, China should arguing that the consumption of diversify its pattern of consump• IPlans have been drawn up animal foods must be reduced and tion along the following Hnes: to ensure the nation a healthy replaced with vegetables. 1. Now that most people in diet. The annual per-capita Clearly it is not just a matter of China have adequate supplies of consumption should consist of choosing one of the two fundamental diets: elements have food and clothing, and indeed 210-230 kg of grain, 25-30 kg should see an increase in the to be taken from both of them. absolute volume of these vital ofmeat, 10-12 kg of eggs, 15- China therefore has to adopt the commodities for the next few 20 kg of milk and 10 kg of rational and scientific course of years, expenditure on food will aquatic products. adding more animal proteins and drop as a percentage of total Supplemented by fruits, nutrients to its predominantly grain, vegetable and fruit based expenditure. Forecasts suggest vegetables and pulses, every that the figure will fall from 55 diet. percent in 1986 to less than 45 individual should receive Restructuring the national diet percent by 2000. 2,500 kcal of energy, 75 g of has to be planned with China's 2. Expenditure on clothing protein and 59 g of fat daily, physical and human geography in should stabilize or slightly in• thus satisfying or surpassing mind. With its huge population, crease. Handicapped by a lack of internationally agreed per-capita farming land (including cotton and fur resources, synthetic minimum nutritional grasslands and waters) amounts to just 0.1 hectare. and blended fabrics will mainly be requirements. used for garments, reducing pure By 2000, the population will cotton cloth and other valuable have reached 1.25 bilUpn. The materials to a secondary position. vegetables supplemented by maximum grain harvest will be no 3. With the growth of new animal products, or principally more than 520 million tons — or houses built by farmers in rural composed of meat, eggs and milk 416 kg per person. Once seed areas and the implementation of and other animal products grain, contributions to grain commercial housing in cities and supplemented by grain and other reserves and wastage are de• towns, the percentage expenditure vegetables. The former has short ducted, the figure drops to less on housing should grow. food chains, is energy efficient and than 400 kg. 4. Expenditure on high-quality so is low in cost. Fundamentally a However, plans have been and durable consumer goods, healthy diet, it has the disadvan• drawn up to ensure the nation a household appliances, cultural tage of lacking animal protein. healthy diet. The annual per- and educational articles and The advantage of the animal capita consumption should con• sports equipment will rise. Energy produce diet is rich in protein, but sist of 210-230 kg of grain, 25-30 consumption should also increase, has long food chains, and large kg of meat, 10-12 kg of eggs, 15-20 but because of power shortage, energy consumption. kg of milk and 10 kg of aquatic household air-conditioning equip• For example, the prodution of products. Supplemented by fruits, ment will be restricted. one kilogramme of beef, pork and vegetables and pulses, every 5. Many service industries have poultry will respectively require individual should receive 2,500 yet to be tapped in China, despite four, three and two kilogrammes kcal of energy, 75 g of protein and the fact that great potential for of concentrated feed. As a result of 59 g of fat daily, thus satisfying or their development exists. The this, between 1979 and 1981 the surpassing internationally agreed promotion of tertiary industry annual per-capita consumption of minimum nutritional require• should be a priority for raising grain in the economically devel• ments. • X ^fflEUrNffi REVIEW, OCTOBER 3-9,^r988 21 Non-Governmental Bank in Chengdu Successful The non-governmental Huitong Urban Co-operative Bani< in Chengdu has not only been Highly successful, but—despite its small size—has exerted a great influence on the current reform of China's financial system. by Our Correspondent Lu Yun ince its establishment in Huitong Financial Company, his work. SOctober 1986, the non• established in February 1985 by The bank now plays an governmental Huitong Urban Co• Zhang Wei and a few other young important role in the local operative Bank in Chengdu has economic theoreticians and economy. It has lent a farmer 1 not only been highly successful, educationalists. Zhang's aim was milhon yuan to build a chicken but—despite its small size—has to push for reform of the financial farm which, with a total exerted a great influence on the system and collect funds for investment of 1.5 million yuan, is current reform of China's finan• theoretical research. The company expected to produce 20,000 meat cial system. offered loans to private business• chickens a month. Another rural men who could not open accounts enterprise with a batch of The bank was opened by selUng with the state banks, and generally unsaleable plastic products was on shares to both individuals and helped to supplement state the brink of bankruptcy. After an private, collective and state banking activities. In October investigation, the bank offered it enterprises. And under the 1986, the company was re• another 70,000 yuan instead of leadership of its board of organized into the Co-operative reclaiming its previous loan of directors, the bank is responsible Bank with support from the 50,000 yuan by selling off its fixed only to its shareholders. The provincial government and finan• assets. At the same time, people wages and benefits of its staff can cial institutions. were dispatched to sort out the rise and fall, and interest rates are company's administration and co• fixed according to the market. The Now, it has well-estabUshed operation was encouraged with a local people's bank has no powers lending and borrowing relations machinery and electronic app• to interfere in the bank's affairs with the state banks, and possesses liances research institute to (apart from the indirect administr• a first-class credit rating. Princip• develop new products. Last year, ation of financial rules and ally a commercial bank serving the enterprise not only repaid the regulations). industry and agriculture, Zhang 50,000 yuan loan but made a The bank has 3 million yuan of hopes it will specialize in handling profit of 80,000 yuan. This year capital, 50 million yuan in savings high-risk investment in science profits should reach 400,000 yuan. deposits and 30 million yuan and technology. available for lending. So far, 2,000 Zhang is confident of the bank's enterprises have opened accounts Zhang Wei said the practical future. He beheves it is impossible with the bank. experience he has gained at the to rely solely on the state financial bank has enriched his university institutions to meet the needs of The bank's 60 staff and four lectures and papers. In the last few future economic development. business centres are the responsi• years he has published a dozen Non-governmental banks can do a bility of general manager Liu papers and translated articles. The lot in this field, he said. But he Yimin, deputy -head of the papers include "Thoughts on expressed fears that his bank has Southwest University of Finance Non-governmental Financial In- not got the necessary legal and Economics' Financial De• sdtutions," "Opinions on Reliev• protection to create a sure sense of partment. Liu's deputy is Zhang ing the Shortage of Funds in stability. He joined the China Wei, 31, a lecturer at the same Sichuan," and "The Need for Democratic National Construc• university and an alternate Practical Training in Economic tion Association both to increase member of the China Democratic Education." He has also co-edited contact with economists, entrepre• National Construction Associa• "The Issue and Administration of neurs and other experts and as a tion's Central Committee. Shares," and in 1986 was awarded possible pressure group if his bank The bank's predecessor was the a special prize by his university for runs into trouble. • 22 BEIJING REVIEW, OCTOBER 3-9, 1988 FACTS & FIGURES (A Decade of Reform II) The Industrial Economy by the State Statistical Bureau ince 1979, China's economy annual output value of 200 billion ministration with enterprise man• Shas burgeoned. The reform yuan, 14.4 ' percent of total agement, China implemented the programme has eliminated barr• industrial output, foreign-funded director responsibility system in iers erected over decades, and the enterprises and associated 1984. country's planned socialist com• organizations produced 2.02 perc• By the end of last June, 80.7 modity economy has made rapid ent of total industrial output in percent of China's enterprises had progress. Tens of thousands of 1987. Most gratifying, however, adopted the system, and in the first entrepreneurs have thrust them• has been the rise of township and half of 1988 their output value had selves forward, and 90 million rural enterprises. In 1978, their risen by 13.3 percent and their industrial_ workers now go about output value was 38 bilUon yuan. profits and taxes by 15.9 their tasks with a new sense of It had increased eight times by percent—figures higher than purpose and urgency. Industrial 1987. Many township industrial those recorded by state-owned and technological standards have enterprises in the coastal areas industrial enterprises during the risen dramatically, and efficiency have absorbed foreign capital, same period. has improved. In sum, China's imported advanced equipment, The director responsibility sy• industrial economy has and become a vital part of China's stem was introduced to separate blossomed. drive for exports. the ownership from management —Operational freedom. Since of companies. Combined with the discarding its rigid administration simultaneous introduction of the The Major Changes of the economy, China's enterpr• contract and leasing responsibility ises have acquired their own systems, a bid was made to reform — Overall growth. To expand decision-making powers and the enterprises' operational the productive forces of the abiUty to accumulate capital, and mechanisms. primary stage of socialism and remodel and expand their produc• By the end of June, 90 percent of consolidate and develop the tive forces. This has expedited large and medium-sized state- industrial economy owned by the modernization and the upgrading owned industrial enterprises had whole people, state-owned com• of products. implemented contract manage• panies, collectives, individuals and It is estimated that state-owned ment responsibility systems, and other associated organizations industrial enterprises have raised 53.3 percent of the small ones had have been encouraged to develop 20 percent of capital construction been handed over to collective and absorb foreign capital. investment and more than 33 ownership or leased to individ• In 1987, although the output percent of technical retooling uals. This reform of operational value of state-owned enterprises funds raised by themselves. procedures has proved a major was double that of 1987, its As a result, state-owned enter• incentive for enterprises to percentage of total industrial prises have increased their ability develop production and improve output value had fallen from 80.8 to adapt to market changes. In their management. percent to 59.7 percent. The recent years, industrial output — Diminishing mandatory output value of collectively owned value has increased at an average planning. The establishment of a enterprises had quadrupled, and annual rate of 11.8 percent, and commodity economy has nar• accounted for 23.9 percent of total profits and taxes by 8.4 percent. rowed the scope for mandatory industrial output — up from 19.2 — Director responsibility. planning and expanded the role of percent. Greater operational freedom has market regulation and guidance. Urban and rural individually proved a major incentive for both The number of products subject to run industries and various co• management and production. To mandatory planning dropped operative industries, which grew rectify the defects arising from the from 127 to 60 in 1986, and their out of nothing, produced an integration of government ad- proportion of total industrial BEIJING REVIEW, OCTOBER 3-9, 1988 23 j^90t or •"• -Tt\r-i ! T tin ARTICLES output value has dwindled from 40 percent and 28.4 percent respec• industrial production with com• percent to 20 percent. tively. With the introduction of merce or foreign trade; • At the same time, a consumer market mechanisms, enterprises • 1,008 (14.9 percent) pro• goods market has gradually taken have been transformed from pure cessed parts supplied by other shape. By 1986, 76 light industrial- production to production and enterprises; products were subject to the management. A sample survey • 543 (8 percent) formed other guidance plan, and only salt, revealed that 80 percent of kinds of economic associations. cigarettes, newsprint and anastatic companies believed that market Overall, these associations have printing paper came under the changes should be taken into proved successful. In 1987, output mandatory plan. All other light account in planning production, value for the enterprises involved industrial products were regulated and 90 percent believed raw in them rose by 38 percent over the through the market. materials should be purchased on preceding year, profits were up by Because of this, commercial the market. 38.1 percent, and the profits on enterprises have been free to draw All the companies surveyed sold each 100 yuan of output value up their own purchasing plans and their products through their own amounted to 12.54 yuan—1.36 contracts, and have been able to channels and said that this yuan higher than in state-owned select the most suitable time to buy encouraged them to cut down on enterprises. their materials. This has led to wastage of materials and improve The structure of horizontal companies negotiating their own quahty to obtain economic economic associations is now sales. In 1987, two-thirds of the returns. In the past ten years, being developed further. The total output of 24 major products were energy consumption for every 100 number of enterprises joining sold by commercial enterprises million yuan worth of output them is growing, and by the end of themselves. With the market thus value has fallen by 30 percent in 1987, nine conglomerates had playing a far greater role than Chinese enterprises, and the powers to draw up their own before, both consumers and amount of steel products con• development plans independently. producers have benefited. On sumed has dropped by 23 percent. The number of regional associ• ations has been increasing, and shop shelves, goods are in ample — Conglomeration. Horizontal there are now more than 100 supply, and the stagnation that economic associations have great• trans-provincial, municipal and had existed for decades in ly increased since the State regional economic and technolog• consumer goods production has Council issued its Provisions on ical co-operative networks. partially been removed. the Further Promotion of With the deep reform of the Horizontal Economic Associ• planning and material supply ations in 1986. systems, the number of materials According to official statistics, The Results of Reform distributed solely by the state fell 12.57 billion yuan was invested in After a decade of reform, the from 279 in 1979 to 24 in 1987. 6,780 new economic associations vitality of China's industrial Likewise, the proportion of by industrial enterprises at county enterprises has been strengthened, materials distributed according to level and above in 1987. These and with the emergence of the a central plan has also dropped. In associations had a total of 3.42 socialist commodity economy, 1988, the state distributed: 46.8 million workers and staff at their industry has entered a new stage of percent of steel products; 43.5 disposal. development. percent of coal; 13.6 percent of Of the 6,780 new economic cement; and 25.9 percent of associations: — Sustained and balanced timber. • 536 (7.9 percent) were growth. Industrial production has The proportion of materials formed either to manufacture maintained a steady and sustained subject to unified distribution by brand name and quality products development. In 1987, total trade has also fallen. During the or by other key industrial industrial output reached 1,381.3 Fifth Five-Year Plan (1976-80), enterprises; billion yuan — double that of 81.6 percent of steel products were • 2,754 (40.6 percent) were 1978. In real terms, it had grown at centrally distributed by the state set up by funds pooled by various an average rate of 11.8 percent a machine-building industry. In the partners; year, unprecedented since the Sixth Five-Year Plan (1981-85), it • 1,143 (16.9 percent) off• founding of the People's Republic was 52.4 percent. And in the first ered technical services; of China. three years of the Seventh Five- • 285 (4.2 percent) were Between 1953 and 1978, Year Plan (1986-88), the figures specialized economic associations; industrial output value had have been 45.8 percent, iij^§,: • 511 (1,5 percent) combined increased at an average annual 24 BEIJJNG RE,V,tfiW, OCTOBER ;3-?i.l^*i?iH rate of 11.3 percent. There were, ten years than in the entire 1953-78 stations has progressed rapidly, however, marked rises and falls. period. For example: paper was and China's first 500,000 voll For four years, China registered 1.5 times greater; bicycles, 3.7 power grid has operated success• negative industrial growth. In the times; chemical fibres, 4.3 times; fully for four years. best year of this period, industrial petroleum, 1.8 times; electricity Through co-operation with output value rose by 54.8 percent, generation, 1.7 times; cement, 2.3 foreign countries, hot and cold and in the worst it fell by 38.2 times; motor vehicles, 2.2 times; cotinuous steel-rolling mills and percent. But in the last ten years, chemical fertilizer, 2.7 times; and continuous casters for the second there have beeti no years of finished steel products, 1.4 times. phase of the Shanghai Baoshan negative growth: the increase in The output of durable consumer Iron and Steel Co.'s construction annual output value has varied goods such as televisions, tape programme are of advanced world between 21.4 percent and 4.3 recorders, household electrical standard. percent. appliances and cameras have The successful production of a The ratio of heavy to light either grown from nothing or collider set in Beijing, the industry has become better increased up to several dozen application of optical fibre balanced over the last decade. times. telecommunications technology Between 1979 and 1981, priority China is now the world's largest and the positioning and recovery was given to the development of producer of cotton cloth, cement of satellites reveal that China can light industry, and its ratio to and raw coal. It is the third largest develop first-rate high- heavy industry changed from producer of sulphuric acid, fourth technology. Not only have new 43:57 in 1978 to 51:49 in 1981 and of steel and generated electricity, industries thus emerged in China, 50:50 in the ensuring years. and fifth of crude oil. but they have succeeded in greatly The structure of Hght industry In 1987, China's fixed industrial expanding the cuntry's industrial has also changed. The proportion assets had a value of 915.8 biUion range. of products manufactured with yuan, 568 billion greater than in — Export drive. Since 1978, agricultural materials has dropped 1978. Since 1978, state-owned China has exported US$145.5 as more industrial and mining enterprises have generated 1,000 billion of industrial products — 83 materials havp been used billion yuan in profits and taxes — percent of total exports. This In heavy industry, the propor• 1.3 tinies that of the 1953-78 figure is 5.5 fimes greater than the tion of raw to semi-finished period. total exported in the 1953-78 material has risen and fallen with - Advancing technology. period. fluctuations in processing indus• Alongside industrial gowth, China The kind of goods exported has try. Because of the rapid has made major advances in also changed. In recent years, the development of China's process• incorporating technologically de• proportion of heavy industrial ing industry, many materials are veloped methods and machinery. products has risen. In 1987, they still in short supply and have to be Since 1978, 230 billion yuan has accounted for 33.6 percent of total imported, but no major im• been spent on retooling industrial export volume, and had increased balances have occurred like the enterprises, and 10,000 items of by 33.2 percent on the previous one in 1978. Clearly, China's advanced equipment worth year. ability to exploit its own resources L)S$15 bilHon have been put to In the first five months of 1988, has improved and self-regulation work. export volume rose 41.03 percent of production has strengthened This has served to promote compared with the same period of the industrial economy. industrial and technological 1987. In the first six months of 1988, growth, and generate new pro• — Changes in the industrial growth has been maintained. ducts. China has designed and workforce. A survey o/8,285 large Total industrial output value manufactured 23-cubic metre and medium-sized enterprises (excluding village enterprises) has power shovels and 154-ton revealed that 94.9 percent of risen 17.2 percent over the same automatic dumpers. Its first cadres were young or middle- period of 1987, and it is expected 600,000 kw thermal generating aged, 51.9 percent had a university that the growth rate for the entire unit has successfully been pro• or college education, 16.5 percent year will be 16 percent. duced, and overall its thermal had studied at a secondary Industrial Qrowth. In the last generating power equipment is vocational school, and 10.1 decade, Clyna has witnessed now equal to that produced in the percent at a senior middle school. industrial growth ' 10 percent developed countries during the Overall, 54.4 percent of the cadres greater than in the 16 years that late 1970s and early 1980s. had technical qualificafions, of preceded it. Many major indus• The production of auxiliary which 38 percent were high or tries manufactured more in these equipment for nucledn ipOwer m^^m grade. 25 ARTICLES Of the 22.05 million workers years) and 49.8 percent up on problems still face China's in• and staff surveyed, 1.113 million 1978. dustrial and economic develop• were scientists and technicians (5.1 With rising productivity and the ment. For instance, the planned percent), young workers made up ensuing economic growth and commodity economy has to be 65 percent of the workforce, and accumulation of industry, the further refined and expanded, middle-aged workers 34.1 percent. living standards of the Chinese markets have to be established for Those with junior and senior people have both risen and been the means of production, the middle school education amoun• enriched. Simply by entering a relation between wages and prices ted to 67 percent. Chinese department store it can be has to be balanced, and there are The refonns of last ten years seen that the decades when still bottlenecks in energy, trans• have succeeded in motivating the consumer goods were either port, and raw and semi-finished industrial workforce and kept lacking or of a monotonous material production. But if these productivity growing. In 1987, sameness have passed. Now, well- problems are still to be overcome, average productivity in state- designed high-quality consumer at least China can draw strengh owned companies reached 16,171 durables have entered ordinary from the economic and industrial yuan—7.9 percent up on 1986 households. achievements of the last decade.* (the highest growth rate in recent There is no denying that some SCHWABE WILLIAMSON & WYATT ATTORNEYS AT LAW Exclusive Northwest legal represerttative for China Industry & Commerce Development Corporation (INCOMIC) Headquartered in Beijing, INCOMIC reports directly to the PRC State Council and offers complete trade services, including governmental representation and joint ventures. INCOMIC serves as primary liaison to more than 600 chapters of the All-China Federation of Commerce & Industry. Portland Seattle Washington, D.C. 503-222-9981 206-621-9168 202-785-5960 26 BEIJING REVIEW, OCTOBERS-?, 1988 Indispensable for managers seeking BECOME A 'NEW CHINA cooperative ventures with Chinese Industry HAND' —FOR LESS THAN Compiling Committee "Cliina Macliinery Industries Yearboolt" 40 CENTS A WEEK! (Ed.) If you've been subscribing to Beijing Review for the past year, you've already read: China Machinery Industries "THE ABC OF INVESTING IN CHINA" —Our series for businesspeople and companies who want to do business in China... Yearbook 1987 "CHINA'S SECOND REVOLUTION" —Reports on the Impact of China's economic and social reforms... "OPEN POLICY AND CULTURAL FERMENT"—A veteran reporter's travels through his changing homeland... "CONFUCIANISM TODAY" —The continuing relevance of China's oldest philosophical system... MaMnery Now, YOU CAN SAVE 17% while continuing to receive our Industries exclusive weekly: Yeartmok Analyses of political, economic and sociCil issues. Reports-on current news events. 1987 Reprints and excerpts from the Chinese press. Translations of government documents and policy statements. Official data and statisticol reports. Coverage of the arts, culture, and sports. AND, especially for North American readers, eight pages a week of exclusive stories on Sino-US and Sino- 1988. Conadian relations in trade, politics, and culture. Approx. 460 pages. Hardcover $78.00. Subscription Rates ISBN 0-387-18725-1 Country 1 year 2 years 3 years From the book: For a long time in the past, it was very difficult to obtain comprehensive and systematic information and data USA (US$) 24 41 57 on China's machinery industry. The "China Machinery Indus• England (£) 13 22 31 tries Yearbook" is now published. 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Box 399, Beijing, China: • China Books & Periodicals, Subscription Department, 2929, 24th Street, San Francisco, California 94110, USA. for ^ 1 subscribers to Beijing Review (North American Edition): • Management Department, Beijing Review, 24 Baiwanz- Springer huang Road, Beijing 100037, China. Readers in China may subscribe to Beijing Review at local postal offices. • FROM THE CHiNESE PRESS economy caters to improving Characteristics of Private Enterprises people's lives, provides funds for state finance, and stimulates the development of the state "JINGJIXUE ZHOUBAO" Pioneering spirit. With chang• economy. In addition, the (Economic Weekly) ing market demand, private existence of the private economy enterprises can boldly implement helps improve the production and igh efficiency. More and new plans and blaze new trails. management styles of state and Hmore private enterprise bosses Complementary to the public collectively owned sectors of the have turned their attention to the sector. The private sector of the economy. utilization of surplus employee (July 3, 1988) labour hours. High efficiency, a steady work rhythm and a full IVlore Facilities for the Elderly load have become major features of labour productivity in private According to statistics from 27 "ZHO^pGUO LAONIAN " enterprises. provinces, municipalities and (China's Elderly) Better returns. In terms of autonomous regions, China now production and management, the has about 37,000 old folks' homes private sector lays more emphasis nder the leadership of the and social welfare institutions on economic returns from invest• UParty Central Committee and taking in more than 440,000 ment and uses it as the yardstick the State Council, many new elderly widowers and widows. for enterprise production and facilities for the elderly in China In many urban residential management. ' have been opened up in recent districts and rural villages house• Hard work and thrift. In private years to create better conditions hold groups have also been enterprises both the bosses and for the older members of the formed to help those old people employees are hard-working and population. living at home to care of thrifty to a level no state-run Organizational networks. Since themselves. In Jihn Province for enterprise can compare with. the founding of the China example, there are 576 service Good service. Compared with National Committee for the centres for childless and infirm the state-owned sector, the private Elderly in March 1982, organi• elderly citizens, with 2,550 village- sector has a far better approach to zations for the elderly have formed level service stations under them serving its customers. Many a network across China. To date^ manned by 709 full-time person• private enterprises have adopted these committees have been nel. Moreover, more than 6,700 the principle of "customers first" estabhshed in 27 provinces, household groups have been to attract business. municipalities and autonomous established to take care of more iVIanual labour. At present, regions, and in 92 percent of than 50,000 childless old people. most of China's private enterpr• China's prefectures and cities, and ises still rely heavily on manual 63 percent of China's counties. Hospitals for the old. Not long operations. They have also been set up in some ago, a sample survey of old people IModerate exploitation. The urban neighbourhoods, enter• was conducted in Shanghai, the relation between employers and prises, institutions and scientific results of which indicated that employees in private enterprises is research institutions. Many towns most old people would like state based on a hire system. Employers and villages in rural areas have departments to run medical and use surplus labour value created also estabhshed their own as• health care undertakings for the by their employees for developing sociations for the elderly. All these elderly. production and their own organizations have played a part According to recent statistics consumption. in safeguarding old people's from 21 provinces, municipalities Profit-making first. The pri• legitimate rights and interests. and autonomous regions, 86 vate sector lays stress on the laws Old folks' homes and social hospitals with about 7,000 beds of value and market demand. It is welfare facilities. To guarantee have been estabUshed and more concerned mainly with making that elderly widowers and widows than 3,000 clinics opened. In profits. spend their remaining years in addition, about 280,000 elderly Taking risks. Compared with happiness, old folks' homes and citizens who have trouble getting leaders in other sectors of the other social welfare facilities have about are cared for in their own economy, managers in private been estabUshed in every part of homes by visiting doctors and enterprises shoulder greater risks. China. nurses. 28 BEIJING REVIEW, OCTOBER 3-9, 1988 Universities for tlie aged. bell sounded at 9:00, many of them differ greatly. More and more retired officials live in a residential quarter less On June 21 the temperature in are seeking new knowledge to than 100 metres from the plant. At Beijing was very high. At 2:00 pm, keep up with the changing times. 9:45, groups of workers could be the employees of three non• Since the founding of China's first found sitting in the doorways of government scientific and tech• university for the elderly by the each workshop chatting. The nological companies on Zhong- Shangdong Provincial Red Cross lunch hour begins at 12:00, but guancun's electronic^ street were in September 1983, education for workers in all workshops stopped very busy at work. One girl with the elderly has rapidly developed. work at 11:00. In the afternoon, the Kehai Company, for instance, Up to the end of 1987, China had workers and staff produced even wiped the sweat away as she kept established 221 such universities less work and began to leave for busily typing to fujfil her daily taking about 70,000 students. In home at 15:30. quota of 12,000 words. addition, 188 schools for the Of the 1,100 employees in this On June 24 in the Beijing Jeep elderly have been set up and more state-run enterprise, only 454 are Co. Ltd., a Sino-American joint than 40,000 old people have productive workers and appren• venture, work hours were due to completed their studies in these tices. The rest are managerial start in two minutes. A woman schools. personnel and staff members in worker clocked in and then Recreation centres. Once their non-productive jobs. Initiative hurriedly set out_ for the work• material needs are satisfied, the among productive workers is not shop. She was the last one to clock elderly have a strong desire to high owing to the egalitarian pay in. In the chassis workshop, meet their spiritual needs and system. workers were busily doing their more and more facilities have been work and not one left his or her set up in recent years to provide Beijing Switcii Factory. Work post one minute before time. activities for the aged to satisfy hours begin at 8:15 am. Biit at Each section of the workshop these needs. According to stat• about 9:00 on June 20 in the No. 6 has perfected a set of necessary istics from 24 provinces, municip• workshop, chatting and animated regulations and is strict and fair in alities and autonomous regions, laughing could be heard as more meting out rewards and penalties. more than 51,000 such places have than 10 girls passed colour photos About 40 percent of the best been established to provide the round; four workers in the workers are.given an increase in aged with social contacts, and assembly group were bent over wages every six months in addition recreational and sporting their desks, sleeping. In the to considerable financial rewards activities. doorway of the testing hall, two each month. (No. 5, 1988) young workers were playing weiqi The chassis workshop originally (go) with screws and nuts. had about 700 members produc• ing an annual output of 20,000 front and rear axles. After US co• Beijing No. 3 Radio Elements operation was introduced, the Plant. Work hours should start at How Much Time for number of employees was reduced 8:20 am. But at 9:00 on June 26, to 480 and production ran up to Work in Eight Hours less than 350 of the more than 800 40,000. employees had arrived for work. (July 12. 1988) In the No. 1 workshop which has "BEiJiNG QiNGNIAN BAG 17 advanced production lines, (Beijing Youth News) only about 20 people were working on five of them. hina's factories and companies The plant's major production Care still adopting the eight- lines were imported from Japan hour day. A recent survey of some several years ago, so the plant Beijing factories and companies must also import components and provided the following insight into raw materials from Japan. It has factory operations. been operating below capacity ever since their installation owing Beijing Smaii IVIotors Plant. to a shortage of foreign exchange. Work hours are from 9 am to 5 Some workers are now receiving pm, but late starts and early 60 percent of their monthly wages finishing hours are common. Take to stay at home. June 20 for example. Ninety-four Conditions in non-government people arrived for work after the enterprises and joint ventures BEIJING RfiVlEW, OCTOBER 3-9, 1988 29 m BUSINESS/TRADE Telephone Network World Bank Loans to China Increase Looks to the Future hina borrowed US$1.69 bil• the loans. The money has been put he Ministry of Post and Clion from the World Bank in into energy development, trans• TTelecommunications plans to the fiscal year to June 30, 1988, port, culture, education, health, continue importing advanced making it one of the world's industrial and agricultural pro• electronic equipment to modern• largest borrowers, according to jects (see Table II). ize China's telephone network. the bank's newly published annual Of the projects benefiting from Around 80 percent of its money report. the World Bank's loans, a will be spent on buying pro• China resumed full legal university has been finished and gramme controlled telephone membership of the World Bank on three container ports at Shanghai, exchanges, the rest will go on pulse May 1, 1980. Since then, co• Tianjin and Huangpu, and a coding equipment and production operation has constantly devel• scheme for transforming saline lines for optical fibre and cable. oped, with China's borrowings alkah land on the North China As far as the standard of increasing annually (see Table I). Plain have all seen better equipment goes, there is httle Table I: Loans to China by the economic results. difference between China's tele• World Bank According to an official from phone system and those of the Unit: US$ billion the External Finance Department developed countries — in some 1982 0.26 of the Ministry of Finance, to cases, the proportion of pro• 1983 0.61 improve its debt structure China gramme controlled calls is higher. 1984 1.04 plans to replace short-term China's problem, however, is its 1985 1.10 international commercial loans overall lack of telephones. There 1986 1.14 with more long-term ones at low are only 0.75 telephone per 100 1987 1.42 or zero interest rates from the people (one-sixteenth of the world 1988 1.69 World Bank. average, one-quarter of the Asian Total 7.26 At present, the ratio of soft to average, and half of the African hard loans is 4:6. It is planned to average). Of the total, US$4,447 billion change it to 3:7 as China increases In < Beijing, for example, are hard loans, due to be repaid its hard loans. although 20-30,000 new tele- over 20 years with five years of The World Bank has promised pnones are installed annually, grace, and US$ 2.822 billion are to lend China another US$12 there are still 70,000 households soft loans to be repaid over 50 bilHon between 1988 and 1992. By on the waiting list. years with 10 years of grace. then, it will become China's Although China has already By the end of last June, China largest creditor. imported programme controlled had made use of US$2.6 billion of by Li Ping exchanges, demand still far outstrips supply. One of the major Table II: Projected Use of Loans reasons for this is a shortage of Unit: US$ billion funds. So in the past few years, China has taken out governmental loans from France, Spain, Item Loans Sweden, the Federal Republic of Amount Percent Germany, Canada and Japan to Energy 13 1.578 21.7 improve its postal and tele• Transport 12 1.721 23.7 communications network. Industry 6 0.504 6.9 During the recent visit of Agriculture, forestry and Japanese Prime Minister Noboru water conservancy 13 0.980 13.5 Takeshita to Beijing, a third series Culture, education and health 11 0.954 13.1 of Japanese loans were agreed on. Environmental protection 2 0.225 . 3.1 Of all the projects to be Intermediate bank loans 7 0.956 13.2 undertaken with the loans, four Policy making 1 0.300 4.1 are in telecommunications. Others 3 0.051 0.7 According to an official from Total 68 the Ministry of Post and 7.269 100 Telecommunications, China has 30 G REVIEW, OCTOBER 3-9, 1988 so far imported programme metallic minerals are presently chains and another nine motor controlled exchanges capable of being exploited, and annually vehicle components each month. handling 2.7 million lines and US$350 million worth are ex• If the quaUty proves satisfactory, long-distance call equipment that ported to Western Europe, North then the amount should be can handle 100,000 lines, as well as America, Japan and Southeast expanded. pulse coding equipment, optical Asia. Kato also plans to replace fibre and cable and various other China's exports of fluorospar, aluminium rivets currently made items of related equipment. barite, and rtvagnesite account for in South Korea with Chinese ones By the end of 1987, China's 50 percent of world trade in these that cost 20-30 percent less. long-distance direct dialling net• materials. Its graphite and talc Other Japanese car manu• work could handle 42,773 chan• also account for 40 percent. facturers are currently examining nels over its 21,624 km of cables — In recent years, the corporation the possibilities for importing 23 times more than in 1978. The has invested US$190 million in components from China. Plans country's cities could handle 4.947 contructing 23 processing projects have been driawn up for car aerial million calls. to improve the quality and production and transferring sus• China has imported machinery quantity of production. pension manufacturing tech• for manufacturing its own tele• It has also co-operated with nology to China. Products made communications equipment: companies from the United States, will then be exported to Japan and Shanghai has a Belgian produc• Canada, Britain, Spain, Singapore the United States. tion line for programme con• and Japan on 12 projects involving trolled exchanges, Chongqing sepiolite, kaolin, sillimanite, wol- makes pulse coding equipment lastonite, asbestos, graphite and with Italian machinery, and granite. So far, 32 joint ventures News in Brief Chengdu has an American have been established. The quality of China's non- production line for plastic electric • Volkswagen recently signed metallic minerals has improved cable. an agreement with the China with the importation of advanced by Li Rongxia Changchun No. 1 Automobile equipment and techniques. Manufacturing Factory to supply Chinese granite and marble has manufacturing equipment and recently been incorporated in components for assembling de• several high-quality overseas luxe limousimes. Annual output is Mineral Industry building projects. expected to reach 30,000 by 1992. From 1990-95, the corporation Gets Trading Co. • Spear brand scissors have aims to concentrate on developing become one of China's major 12 export bases for graphite, talc, he China National Non- export commodities. According to stone products and attapulgite Metallic Minerals Industry official figures, 42.62 million pairs T minerals. Corp. founded its Economic were sold abroad in 82 countries by Li Ping Relations and Trade Co. this and regions from 1983-87. September in Beijing. The Zhejiang Wenzhou Spear The new company will be Brand Scissor Factory, which responsible for the corporation's Japan Buys Chinese manuiiactures 100 products in imports and exports and intern• over 30 categories, was granted ational development. At the Automobile Parts powers to handle its own exports moment, the corporation includes last August. 155 specialized non-metallic ith the appreciation of the • The Italian government has mineral companies, 65 percent of W yen and the growth in donated US$200,000 to help the which produce goods for export. Japanese production costs, one of people of Fujian Province recover With its vast land area, China Japan's largest manufacturers of from recent flooding. The Italian has plentiful resources of many motor vehicle components has ambassador, Alberto Solera, non-metallic minerals, including decided to buy spare parts from handed over the money to Sheng the world's largest reserves of China. Jueren, vice-minister at the flake grahpite, fluorospar, gy• The Kato C-Budy Industrial Ministry of Foreign Economic psum, limestone, kaolin, talc, Co. Ltd. recently concluded an Relations and Trade, who ex• asbestos, bentonite, mirabilite, agreement with the China pressed the heartfelt thanks of the perlite and zeolite. Xinyang Motor Vehicle Co. to Chinese government for the More than 40 varieties of non- buy 2-3 million yen's worth of tyre Italian aid. • BEIJING REVIEW, OCTOBER 3-9, 1988 31 CULTURE/SCIENCE Painting Salon). Domingo Carries All Before Him The two shows of works by Jia Youfu mark the first simultaneous orld-famous tenor Placido instructions. He said he was much exhibitions to be held on both W Domingo entranced impressed by their performances. sides of the strait in nearly 40 thousands of Chinese in his recent Domingo treasured his China years. tour of Guangzhou and Beijing. visit. He said he had long wanted Jia's landscapes, inspired by Invited by China's Ministry of to perform in China because of his scenes in the Taihang Mountains Cuhure, Domingo arrived with interest in and love of ancient in north China, have been more than 100 musicians and Chinese civilization. He added described by James Cahil, a singers from Spain's Antologia de that he had received a warmer specialist in Chinese art at the la Zarzuela. He gaye two welcome in China than anywhere University of California, as performances in the Great Hall of else, even Latin America. representing one of the most the People in Beijing after an In an interview with CCTV, he original and satisfying directions earUer get-together with Chinese said he was greatly moved by being taken by traditional-style musicians and joumaUsts at the Chinese audiences: "I love this painting today. Beijing Concert Hall. beautiful land, I love its magnifi• Despite their strong roots in When he appeared on stage, he cent ancient culture and friendly tradition, which sometimes recall enraptured his audience as his people. I hope that I can return to the monumental landscapes of the voice transcended language bar• China someday." Northern Song Dynasty (960- riers. His repertoire at his Beijing by Wang Jian 1127) and at other times are debut included such classic pieces evocative of the small-scale scenes as El Sembrador from La Rose de typical of the masters of the Azqfran, Adios Granada... from Painter Exiiibited in Southern Song Dynasty (1127- Emigrantes, and Jota from La 1279), Jia's works are entirely of Dolores. He proved to his Beijing, Taibei today. The mountains and the audience just how perfect operatic lives for which they are a backdrop singing could be. he works of one of China's have given him deep insights into most accomplished contempor• both natural phenomena and China's radio stations made T ary traditional painters are being human existence. For example, his several broadcasts of Domingo's featured in two simultaneous evening scenes of returning wood- performances and praised him as exhibitions, one at Beijing's China gatherers and his renderings of "having unbelievable musical Art Gallery and the other at oxherds and their oxen strike a talent, an unparalleled voice and a Taibei's Xiongshi Hualang (Lion note of nostalgia seldom seen in warm, velvet singing quality." Renmin Ribao (People's Daily) Homesick. commented that Domingo's per• formance "had a unique and shocking charm. With every new song, he provided the audience with a new character and a new personahty that brought forth a new excitement and further aroused the expectations of the audience. From Domingo's per• formance, the audience would feel overflowing human love and understanding." But Domingo left China with more than his incomparable voice. His kind and modest personality will long be remembered. At the get-together with Chinese musi• cians, Domingo spent half the night listening to young Chinese singers, giving comments and 32 BEIJINQ KEVIEW, OCTOBER 3-9, 1988 Chinese paintings since the spirit and his assiduous ink-and- eyebrows, a large nose and heavy Southern Song. This sensibihty, wash creations embody vast beards, are evidently non- coupled with his extraordianry expanses of land and sky which Mongolians. technical mastery, makes Jia an have a striking effect on viewers." Some of the figures are dressed artist most deserving of attention. Nowadays, when the future of in robes, with riding boots and a ink-and-wash painting is a matter broad belt around their waists. of great concern in art circles, the The stone statues uncovered magazine has been the first to before the Alkat Grave on the publish Jia's own contribution to Alkat Grassland in Wenquan the debate. County are 2.88 metres high. Jia is a member of the Chinese Many stones surround the grave, Artists' Association and is an in which human ashes was associate professor at the Central discovered, indicating the noble Academy of Fine Arts. A status of the dead. monograph on his works entitled These recent discoveries have Jia Youfu Huaji (Collected Works helped to fill gaps in historical of Jia Youfu) has been issued by records on the physical ap• four pubhshers in China and pearance and dress of Xinjiang's abroad. His works have been nomadic tribes. Regarded as displayed in the Soviet Union, the particularly significant are various United States, Japan, Canada, characters carved on the lower Singapore, India, Malaysia, and body of some of the statues. • South Korea, and collected by experts in China and overseas. by Wei Liming Wliere tlie White Animals Roam Mother Moon and her children. Jia graduated in 1963 from the Statues Unearthed ore than 20 species of white Central Academy of Fine Arts in Manimals have been spotted in Beijing, where he majored in In Xinjiang Shennongjia Forest in central landscape painting. He spent the China's Hubei Province. next 20 years making no fewer ore than 200 stone statues The animals include monkeys, than 19 trips to the Taihang M from the Sui and Tang bears, wolves, snakes, squirrels, Mountains, where he developed dynasties (581-907) have been crows, turtles and spiders and so his unique style. discovered in the pastoral areas of the area has become known as the His work can be divided into Tianshan and Altay mountains in home of the world's white three stages. During his early trips, China's far northwest. animals. he was attracted to the scenery and Experts agree these statues were During the 1950s, several white the lives of the region's inhabi• carved by the nomadic Turk bears caught in the forest were put tants, so works of this period people, who, according to histor• on display in Zhongshan Park in depict an idyllic blending of work, ical records, erected statues and Wuhan, capital of Hubei. life, and the natural environment. placed stones representing the In 1977, a team was organized After several more trips, his grasp number of people killed around by the Chinese Academy of of the special characteristics of the the graves of their dead. Sciences to clarify reports of "wild men" in the area. Instead of mountains and their people The discovery of such a large catching "wild "men," they re• deepened, and he began producing number of figures and graves has turned with various species of monumental works. This orient• given convincing proof to the white animals. ation continued during his third accuracy of Chinese historical period, during which he has tried records. Initially no one was aware of the to express humanity's loftiest Most of the statues clearly scientific importance of these ideals. depict Mongolians, with broad, creatures. Now, however, Chinese Xionqshi Meishu (Lion Fine round faces, narrow eyes, low scientists believe they are descend• Arts), a magazine in Taiwan, said eyebrows, flat noses and little ants of ancient species, and that of his work, "As a middle-aged facial hair. A few, however, with their whiteness has been caused by mainland painter, Jia Youfu's long, flat faces, large eyes, high either inbreeding of albinos or BEIJING REVIE^?'oCTOfiER iV, 1^88 33 m CULTURE/SCIENCE environmental influences. the dramatic arts. More import• Mutiny based oh the popular Species of white animals exist ant, the move will benefit the American novel by Herman across the world: polar bears in the theatre's actors and actresses, Wouk. Arctic, tigers in India, monkeys in raising their performing level The restaging of good old plays Taiwan, Guangxi Zhuang Auto• through plenty of practice. in rotation is only one of the nomous Region and Yunnan Among the Chinese plays being theatre's major reform measures. Province. Most of these animals, resurrected are Xiaojin Lane and It will start with the plays that can however, are extremely rare, Gouerye's Nirvana; the foreign be easily prepared and those that whereas experts who have visited dramas include The Gin Game, A have been put on in recent years. Shennongjia Forest have been Child Prodigy Given by God on the In some cases the original actors surprised at both the range of death of W.A. Mozart, and and actresses will perform once species and the size of their Moliere's The Miser. The first two again; other plays will feature new populations. • dramas separately depict China's performers, with new performing urban and rural life in the last few styles. decades. The Gin Game is a famous Other reform measures adopted Theatre to Restage American drama acted out by only by the theatre include: Good Old Plays two characters; it describes the life • A responsibility system headed of an old couple and the way they by the theatre director. The cope psychologically with modern he Beijing People's Art director has under him a general society. TTheatre, China's modern first- art supervisor and a general class theatre, plans to restage some Lead actor in tlie drama "Gouerye's manager, who handle artistic of the best plays it has presented Nirvana." XIA XIAOXI practices and theatre administr• ation respectively. since its founding 38 years ago. The theatre will choose some 30 • A contract system was im• plays from its repertoire of 180, plemented for all employees, and also present a new play, Top including guest directors, actors Restamant. and actresses, and stage artists. In the past, plays were run until • The wages and bonus system is audiences tired of them, and then a based on performances, degree of new play would start its season. difficulty and contribution. Spec• The restaging of previously ial rewards are given for the best successful plays will, in fact, be scripts, directors, stage designers very worthwhile for the theatre, and managerial personnel. Titles of honour are also conferred on and for its cast, which should those who have made special always be prepared to perform any achievements or outstanding one of them. This is not a new idea, contributions towards the devel• but now the People's Art Theatre opment of the theatre. plans to make it part of its regular system, not only to enrich its • Convenient ticket sales and programme, but also to develop Two of China's best modern telephone reservation service are plays Thunderstorm by Cao Yu, a to be provided for the audiences. A scene from "A Child Prodigy Given by former director of the theatre, and • Tertiary industries which may God." XIA XIAOXI Teahouse by Lao She will be increase theatre revenue are to be staged next year. In 1954, the developed. theatre presented more than 300 These reform measures are performances of Thunderstorm, aimed at breaking with the old but since then, it has never been system of management, under restaged. Its presentation of which everybody "ate from the Teahouse was highly acclaimed by same pot." Under that system, Beijing audiences, prompting the there was no competition between theatre to take the play to Federal actors and actresses. Everything Germany, North America and was shared out equally. Singapore, where it also received The current reforms will good reviews. provide the impetus for the further This September the theatre will liberation of artistic production invite an American director to and the rise of performing skills. help with rehearsals of The Caine 34 BEIJING REVIEW, OCTOBER 3-9, 1988 by Chen Guoqiang Pile Driver by Zhang yanbo Woodcuts by Workers These woodcuts are carved by construction workers. Their woodcuts express their deep involvement in their career and their optimism in life. 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