SIGNED, SEALED, DELIVERED Clean Sweep As Beijing Olympics Succeed on All Levels

Home , Andrei Rybakou, Big Three (Greece), Chen Gang (badminton), Chen Qi (table tennis), Football Icon, Jin Jing

OLYMPIC DREAM MOVES ON TO LONDON Page 12 VOL.51 NO.36 SEP. 4, 2008

Page 16 SIGNED, SEALED, DELIVERED Clean sweep as Beijing Olympics succeed on all Levels

CHINESE BANKS ESCAPE GLOBAL FINANCIAL CRISIS Page 34 FIRST ANTI-MONOPOLY LAWSUIT FILED Page 33

北京周报英文版 2008年第36期 ISSN 1000-9140 广告许可证 0171号北京市期刊登记证第733号邮发代号2-922·国内统一刊号：CN11-1576/G2 国内零售价：人民币6.00元 U.S.A...... USD 1.70 AUSTRALIA...... AUD 3.00 UK...... GBP 1.20 CANADA...... CAD 2.60 SWITZERLAND...... CHF 2.60 JAPAN...... JPY 188 EUROPE...... EURO 1.90 TURKEY...... YTL 5.00 HK...... HKD 9.30

VOL. 51 NO. 36 SEPTEMBER 4, 2008

EDITOR’S DESK 22 Slam Dunking Good 36 At Full Throttle 2 Olympic Legacy U.S. basketball team gets job done Train producer lists in Shanghai and Hong Kong PEOPLE & POINTS 23 Fast Water Secrets of the Water Cube 37 A Smooth Takeoff WEEKLY WATCH 25 Asian Heroes India’s Jet Airways’ global WORLD China, ROK and Japan score big ambitions 10 Embracing the World With 26 Out of Africa 38 Market Watch Confidence African athletes shine in Beijing Hu’s Asian tour sets LIFESTYLE post-Olympic diplomacy 28 Coaches Made-in-China 40 Reinventing Culture Chinese overseas coaches also Giving the classics a musical 12 Welcome to London strike gold How will British capital fare in twist 2012? BUSINESS 42 Going for Glass 14 Play for Power 30 Right on the Money An ancient craft is resurrected Less rigid monetary policy mooted Pakistan’s political turmoil FORUM 32 Getting Down to Business OLYMPICS IN FOCUS 46 What Does Winning the Gold Nuts and bolts of Anti-Monopoly 16 Record Breakers Law Medal Count Really Mean? 18 Olympic Figures 33 First Monopoly Lawsuit 47 China’s Growing Confidence 20 Beijing’s Olympic Scoreboard Testing the Anti-Monopoly Law Olympics promote Examining all the facts 34 Golden Prospects understanding and figures Chinese banks unscathed by 21 What the People Say… global financial slump EXPAT’S EYE Opinions on Beijing and 35 Banking on the Big Apple 48 Such a Perfect Day Olympics ICBC to set up branch in New York What to get up to in Beijing

16 Cover Story Bravo Beijing

Beijing Review (ISSN 1000-9140) is published weekly for US$64.00 per year by Cypress Book (U.S.) Co., Inc., 360 Swift Avenue, Suite 48, South San Francisco, CA 94080. Periodical Postage Paid at South San Francisco, CA 94080. POSTMASTER: Send address changes to Beijing Review, Cypress Book (U.S.) Co., Inc., 360 Swift Avenue, Suite 48, South San Francisco, CA 94080. EDITOR’S DESK PEOPLE & POINTS

A News Weekly Magazine Published Since 1958 http: //www.bjreview.com E-mail: [email protected]

President & Editor in Chief: Wang Gangyi Deputy Editor in Chief: Jiang Wandi Vice President: Qi Wengong Associate Editors in Chief: Li Jianguo Huang Wei Olympic Legacy Executive Editor: Zhou Jianxiong Assistant Executive Editors: Yao Bin, Ding Zhitao, Zhang Zhiping, Francisco Little By ZHANG ZHIPING Editorial Administrators: Li Ning, Shi Bosen Senior Consultant: Shao Haiming As the 16-day sports extravaganza drew its curtains, Beijing Opinion Editor: Yao Bin World Editor: Ding Zhitao captivated millions of world viewers again with a colorful clos- Nation Editor: Tang Qinghua ing ceremony. During the titanic seven years of preparation, the Business Editors: Yu Shujun, Lan Xinzhen Culture Editor: Zan Jifang ancient capital city has been revitalized by the modern Olympic Editorial Consultants: John Butcher, Games. Over the past weeks, Beijing has fully presented to the Roseanne Gerin, Jennifer Jett Staff Reporters: Tang Yuankai, Feng Jianhua, world the Olympic spirit of liberty, equality and endeavor, and Ding Ying, Ni Yanshuo, the whole city is still immersed in the charms of sport. Long af- Ding Wenlei, Wang Jun, Yan Wei, Tan Wei, Li Li, ter the sacred flame was extinguished at the Bird’s Nest National Liu Yu, Liu Yunyun, Stadium, its glow has remained. Yin Pumin, Jing Xiaolei, Pan Xiaoqiao, Hu Yue In the stadium, sports excellence drew loud cheers from the Yuan Yuan, Wang Hairong spectators across races and nationalities. American swimmer Photo Editor: Wang Xiang Photographers: Jiang Xiaoying, Wei Yao Michael Phelps won eight titles, breaking the single-Games Art: Li Shigong record for gold medals. Jamaica’s Usain Bolt sprinted to 100 Design & Layout: Xu Husheng, Wang Yajuan, Zhao Boyu and 200 meters gold in record times and it was the first time that Proofreading: Qin Wenli, Ma Xin athletes from Mongolia, Togo, Afghanistan and Tajikistan won Online Editor: Li Zhenzhou medals at an Olympics. These groundbreaking victories have Advertising Director: Zhang Di Distribution Directors: Wang Weiwei, Pan Changqing not only fulfilled dreams of honor, but also created new Olympic Human Resources: Zhang Xiaoli history. International Cooperation: Pan Shuangqin Legal Counsel: Yue Cheng When the winners moved the audience by extraordinary per- North America Bureau formances, we were also inspired by those unremitting struggles Chief: Wang Yanjuan Reporter: Chen Wen against setbacks, which enriched the meaning of sports and Tel/Fax: 1-201-792-0334 raised the Olympic spirit to higher levels. E-mail: [email protected] General Editorial Office Beijing will never forget the thundering acclaims and gen- Tel: 86-10-68996252 erous cheers for injured Korean weightlifter Lee Bae Young, Fax: 86-10-68326628 despite his failure in the third attempt. Beijing will always English Edition Tel: 86-10-68996259 remember the friendship between Chinese and U.S. gym- Advertising Department nasts. When the Chinese girls took the women’s team trophy, Tel: 86-10-68995813 Fax: 86-10-68329398 American gymnast Shawn Johnson was first to congratulate E-mail: [email protected] them. Beijing will not lose sight of celebrating hugs in the pool Distribution Department Tel: 86-10-68310644 between swimmers of different nations. When Japanese prodigy Fax: 86-10-68328738 swimmer Kosuke Kitajima broke the men’s 100 meters breast- E-mail: [email protected] stroke world record, American Brendan Hansen, former world Published every Thursday by BEIJING REVIEW, 24 Baiwanzhuang Lu, record holder of this competition, passed through several lanes Beijing 100037, China. to congratulate him. The charms of sport brought Georgian and Overseas Distributor: China International Book Trading Corporation (Guoji Shudian), P. O. BOX 399, Russian athletes to kiss each other on the podium, and inspired Beijing 100044, China German Steiner Matthias to win the competition for his departed Tel: 86-10-68413849 Fax: 86-10-68412166 E-mail: [email protected] wife and Oksana Chusovitina for her sick son. The Beijing event Website: http://www.cibtc.com is over, but the Olympic spirit brings eternal joy and love to the General Distributor for Hong Kong, Macao and Taiwan: Peace Book Co. Ltd. human race in pursuit of social progress and world peace. 17/Fl, Paramount Bldg, 12 Ka Yip St, Chai Wan, HK The success of the Beijing Games is attributable to the ef- Tel: 852-28046687 Fax: 852-28046409 forts of athletes, to the efforts of volunteers, to the enthusiasm of Beijing Review (USPS 2812) is published weekly in the United States for US $85.30 per year by Cypress Book (U.S.) Co., Inc., the spectators and to the devotion of millions of Chinese. When 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 our friends leave with satisfactory smiles on their faces, every- News Postage Paid at South San Francisco, CA 94080 POSTMASTER: Send address changes to Beijing Review, thing we did has paid off, and what they left will be remembered Cypress Book (U.S.) Co., Inc., 360 Swift Avenue, Suite 48, here. n South San Francisco, CA 94080

SUBSCRIPTION RATES (1 Year) Australia...... AUD 148.80 New Zealand...... NZD 144.00 UK...... GBP 53.80 U.S.A...... US$ 85.30 Canada...... CAD 126.90 Printed in China by C&C JOINT PRINTING Co. (BEIJING) Ltd.

BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com PEOPLE & POINTS

http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW PEOPLE & POINTS

Punching His Way to Glory “Through these Games, the world When light flyweight boxer Zou Shiming learned more about China, and China stepped onto the Olympic podium to receive his gold learned more about the world. These medal on August 24, the groundbreaking victory made him the first Chinese to claim champion’s titles were truly exceptional Games.” in the 48 kg division at major events—the World President Jacques Rogge of the International Olympic Championships and Olympic Games. Committee, in his speech at the closing ceremony of Born in 1981, Zou learned martial arts at 12, but the Beijing Olympic Games on August 24 switched to boxing at 16, and was selected for the national team three years later. At the 2003 World Boxing Championships, Zou’s international debut “We excel in few of the biggest events. finished with a historic silver medal, the first-ever for “ There is still a huge gap between a Chinese boxer at world-level competitions. One year later at the Athens Games, Zou won China’s China and outstanding teams like the first Olympic medal as a light flyweight. Zou was crowned at the 2005 World United States.” Championships, and successfully defended the title in 2007. Liu Peng, head of the Chinese Olympic delegation Zou’s secret to winning is his famous “pirate” boxing style, characterized by great speed and excellent footwork. Zou has no advantages in physical strength compared with his powerful rivals, but he used his kungfu background to great “Whether opportunity knocks or dif- advantage with flurries of quick punches and excellent balance. ficulty arises, we should keep in mind Tough Hockey Coach Gets Results our goal of a denuclearized Korean Peninsula and a peaceful and stable As Korean coach Kim Chang Back led the Chinese women’s hockey team to the finals by de- northeast Asia, honor our commit- feating Germany at the Beijing Olympics, it marked ments, enhance mutual trust and his ninth year in charge, the longest term for a foreign coach in any Chinese sports team. work closely to push the six-party The 53-year-old trained the South Korean talks.” women’s team from 1989-94 in his home country. Chinese Foreign Ministry spokesman Qin Gang, after Under Kim, the Chinese team finished fifth at the North Korea announced on August 26 that it had Sydney Olympics and fourth the Athens Games. stopped disabling its nuclear facilities in Yongbyon in Kim’s coaching style is typical of South Korean revenge of the U.S. failure to remove it from a terror- sport, high demands plus intense training, earning ism blacklist him the nickname “devil trainer” by his players. Over the past years, Kim has brought advanced skills and a teamwork ethic to Chinese hockey. Self-discipline and self-respect share equal importance in his team, and he always requires the “This is not an easy choice, but it is the hockey players to act as a group. The Chinese women’s hockey team was the runner-up in the Beijing Olympics, only way to save the lives of people.” but Kim believes he will eventually lead his players to win the Olympic champion- Russian President Dmitry Medvedev, after signing de- ship. He plans to retire after his coaching days in China are over. crees recognizing the independence of South Ossetia and Abkhazia, the two breakaway regions of neighbor- Gymnast Is a Supermom ing Georgia on August 26 Veteran gymnast Oksana Chusovitina earned a silver medal for Germany in the women’s vault on “There is an agreement between the August 17 at the Beijing Games, her fifth Olympics. two sides that there will be no foreign When asked why she is still active on-court at 33, the oldest female gymnastics competitor at the Games soldiers in Iraq after 2011.” referred to her 9-year-old son, suffering from a fatal Iraqi Prime Minister Nuri al-Maliki, quoted in an disease, as the reason. August 25 statement from his office A native of Uzbekistan, Chusovitina won the gold medal in the women’s team for the former Soviet Union at the 1992 Barcelona Olympics. She “In the final analysis many fossil fuel retired and married wrestler Bakhodir Kurpanov in subsidies are introduced for political 1996, and three years later, their son Alisher was born. Alisher was diagnosed with leukemia in 2002, and she was forced to make reasons, but are simply propping up a comeback to earn money to save her son. It was the illness that brought her and perpetuating inefficiencies in the to Germany to obtain favorable medical treatment after the 2006 Pusan Asian Games, at which she won gold medals in vault and free exercise at the age of 27. global economy—they are thus part Alisher has now recovered and is back in school, while Chusovitina continues of the market failure that is climate to enjoy her unusual gymnastic experience. “I won it [the vault medal] for my son, change.” and I will be there in London in 2012,” said Chusovitina when receiving 300,000 yuan ($43,800) in cash donations from warmhearted Chinese fans in Beijing. Achim Steiner, Executive Director of the UN Environmental Program BEIJING REVIEW SEPTEMBER 4, 2008 ”http://www.bjreview.com WEEKLY WATCH GAO JIE

Igniting the Paralympic Flame Deaf-mute Jiang Xintian lights a small cauldron in the hands of wheelchair- bound fencer Jin Jing at the Paralympic Flame Lighting Ceremony in Beijing’s symbolic Temple of Heaven on August 28. For nine days until September 6, when the 13th Paralympics opens in Beijing, a total of 850 torchbearers would relay the Paralympic flame along two routes through 11 Chinese provinces, autonomous regions and municipalities. About 4,000 disabled athletes from around the world will compete in 472 events in 20 sports during the September 6-17 Games.

http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW WEEKLY WATCH

SOCIETY Province, west China. The ministry will also take steps to im- With a budget of more than 500 million prove traffic flow during peak periods when Open to Tourists yuan (about $73 million), Yushu airport students are going to or leaving school. Beijing’s Olympic venues will open to began construction in May 2007. It also re- tourists during the weeklong National Day quires construction of a 4,000-square-meter holiday beginning October 1, an official said terminal and is designed to handle planes New Sports Award on August 27. such as the Airbus A319. Sergey Bubka, Senior Vice President of The venues, including the National In accordance with the schedule, all in- the International Association of Athletics Stadium and the National Aquatics Center, frastructure for the airport should be finished Federations and a member of International will be open to the public as they appeared by the end of this year, so the facility can be Olympic Committee Executive Board, during the Games, and an aquatic amuse- put into service in June 2009. launched the Bubka Sports Award to ment park project will begin operation in the promote the spirit of sport at Care for National Aquatics Center at the end of the School Bus Safety Campaign Children, an organization that facilitates year, said Vice Mayor of Beijing Chen Gang. Public security officials will conduct orphaned children leaving institutions and a national school bus safety campaign in becoming part of a long-term foster family, So far, 80 percent of the media village flats September and October. which has 30 project sites in orphanages have been sold, and buyers can move in by Buses that transport high school, elemen- across China. the end of the year. tary school and nursery school students will Bubka, who is regarded as the greatest be included, according to the Ministry of pole-vaulter of all time, makes visits to chari- Earthquake Rocks Tibet Public Security. table sports establishments around the world A strong earthquake measuring 6.8 on Areas of concern include unmarked or in a bid to encourage more young people the Richter scale rocked Zhongba County, overloaded buses and those that are driven to take up sport and to offer his support to Xigaze Prefecture in Tibet at 9:22 p.m. on by unlicensed or drunk drivers. sporting initiatives worldwide.

August 25. No casualties have been reported. ZHOU HUA The epicenter was about 10 km underground at 31 degrees north and 83.6 degrees east, according to the China Earthquake Networks Center. Gerze and Coqen counties in Ali Prefecture also felt the quake, but the county seats suffered no damage, said the regional earthquake bureau. Zhongba, in the west of Xigaze, with a population of 18,000 and covering 43,594 square km, is located in an area with frequent quakes. Airport on Plateau Workers on August 27 completed construction of a runway for a new airport in the heart of China’s Qinghai-Tibet Plateau. The 3,800-meter-long runway, 3,900 meters above sea level, is part of a planned airport about 20 km away from Yushu, also known as Gyegu, seat of the Tibet DEADLY BLAST Smoke rises after an explosion at a chemical plant in Autonomous Prefecture of Yushu in Qinghai Yizhou City, in south China’s Guangxi Zhuang Autonomous Region, on August 26. So far 20 people have been confirmed killed in the blast WEI YAO YANG SHOUDE

HARVEST SETTING FESTIVAL THE STAGE A member Director of the Tu Meng Jinghui ethnic group talks to the celebrates press on the Nadun August 26 Festival, about the which is held Beijing Youth at harvest Theater time every Festival, year. During which will the festival Tu be held from people stage September performances 10 to 28 and pray for good fortune

BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com WEEKLY WATCH

ECONOMY the country’s largest aluminum company, declining overseas demand amid the global received approval from the Australian economic downturn. Help for Small Businesses Government to raise its current 9-percent From January to July, the country’s The government will stop charging ad- stake in Rio Tinto Group to 11 percent. chemical fiber production rose 4.76 percent ministrative fees for sole proprietorships and Chinalco had teamed up with Alcoa from the same period a year earlier. But this individual market vendors as of September Inc. in February to buy the 9-percent stake. was 13.23 percentage points less than during 1, according to a joint circular recently is- Analysts say Chinalco’s increased holding the same period last year, touching the low- sued by the Ministry of Finance, National may pose a stumbling block to the all-stock est growth rate since March 2006, according Development and Reform Commission and offer of BHP Billiton Ltd. to take over Rio to CNTAC. Yarn production grew 10.78 the State Administration for Industry and Tinto. percent during the period, but was 9.41 per- Commerce. “This will underpin the Rio share price centage points less than a year earlier. This move is designed to cut costs for

and also create uncertainty about whether WANG LIPENG individual business owners as part of the or not BHP will get its deal over the line,” government’s efforts to aid the private econ- Stephen Bartrop, a resource analyst in omy and increase employment. Australia, told the local press. The administrative fees, which are almost double the amount of business taxes Forging a Tobacco Giant a firm must pay, have been blamed for the Hongyun Group and Honghe Group, country’s shrinking number of sole propri- two major tobacco firms based in southwest etors from 31.6 million in 1999 to fewer than China’s Yunnan Province, plan to merge to 26 million in 2006. form a giant cigarette maker, the Shanghai Securities News reported on August 26. Mann Expands in Shanghai The merger is part of the country’s ef- MannHummel GmbH, the world’s lead- forts to consolidate its fragmented tobacco ing industrial and automotive filter maker, is industry. China is currently the world’s larg- spending 40 million euros ($59 million) to est cigarette producer and consumer with a build a new plant in Shanghai to meet grow- growing market of more than 300 million ing market demand and push it into the top smokers. five auto suppliers in Asia, according to a The report said if the deal were ap- report by Shanghai Daily. proved, the new group would surpass The new 60,000-square-meter plant in Imperial Tobacco Group Plc. of Britain to Jiading District, Shanghai, which is known become the world’s fourth largest tobacco as the biggest auto components park in producer by number of cigarettes sold. The Asia, will be MannHummel’s fourth facil- current top three tobacco producers are ity in China. It also will be the company’s Philip Morris International Inc. of the United headquarters in China and its Asian research States, British American Tobacco Plc. and and development center, said Manfred Japan Tobacco Inc. Wolf, Senior Executive Vice President of SPANNING THE FUTURE MannHummel in Shanghai, in the article. Textile Growth Slackens The new Tianluo Bridge in Ningde of The construction of the Shanghai com- Fujian Province has been completed China’s textile sector has shown signs on August 26. It is the longest bridge plex will begin in January with production to of a slowdown with decreasing output dur- start in 2010, Wolf said. along the Wenzhou-Fuzhou Railway, ing the first seven months of the year, the which is currently under construction. China National Textile and Apparel Council The railway is expected to connect Chinalco Gets the Rio Nod (CNTAC) said on August 25. Fujian with the Yangtze River Delta to Aluminum Corp. of China (Chinalco), CNTAC attributed the slowdown to facilitate the area’s development HAI MINGWEI GA MA BACK TO BORN TO RIDE SCHOOL Riders in Students the Qinghai of Yingxiu motorcycle Primary competition School, located enter the at the epicenter second phase of the May 12 of the event on earthquake, August 26. The hold their first route of the flag-raising competition ceremony passes since the through the quake, on Qaidam Basin August 27 and lasts for almost 1,500 km

http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW WEEKLY WATCH

1. KYRGYZSTAN 2. SPAIN 3. RUSSIA Rescuers work around a destroyed plane Smoke rises from the Vandellos 2 Russian President Dmitry Medvedev fuselage about 2 km from Bishkek’s nuclear power station near Tarragona, appears in a television interview in Sochi Manas Airport on August 24. A Boeing northeastern Spain, on August 24. on August 26. Medvedev announced 737 passenger plane carrying 90 people Authorities shut down the power the recognition of the independence crashed shortly after takeoff, killing 70 station due to a fire in an electrical of Georgian breakaway republics generator, which was put out later with Abkhazia and South Ossetia that day no environmental damage reported XINHUA/AFP 1 2

BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com WEEKLY WATCH

4. FRANCE 5. CHILE 6. THAILAND A rescue team searches for survivors The photo shows an aerial view of A crowd of Thai protesters wave on Mont Blanc, the highest peak in the the Mapocho River in Santiago on banners demanding the prime minister’s Alps, in France’s Chamonix Valley on August 21. The polluted river will resignation after breaking through a August 25. An August 23 avalanche left be cleansed through an innovative barricade and occupying his office at least eight injured and 10 missing project, including a 28.5-km compound on August 26 in Bangkok underground tunnel to direct sewage XINHUA/AFP XINHUA/AFP XINHUA/AFP 3 4 LING SHUO XINHUA/AFP 6

http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW WORLD Embracing the World With Confidence President Hu Jintao’s Asian tour thrusts post-Olympic China into global spotlight

By YAN WEI Chinese international studies experts hailed China’s economic base is incomparable s Chinese President Hu Jintao Hu’s remarks for their relevance. They say that to that of Japan or South Korea, and the embarked on his first overseas trip China will conduct itself on the world stage with Olympics have had only a limited role in after the Beijing Olympics, hopes a better image and greater confidence in the powering the Chinese economy, Shi said. were high that this tour would set the years following the successful Beijing Olympics. China showcased its profound culture to A the world through the Olympics, he said. He tone for post-Olympic Chinese diplomacy. The president addressed this issue at a lun- The Olympic factor believes this is conducive to improving the cheon in Seoul on August 26. “Hu made a proper speech at a proper country’s international standing. “We are clearly aware that China still is time,” said Jin Canrong, Deputy Dean Although it takes time to observe the impli- the largest developing country in the world,” of the School of International Studies, cations of the Olympics, it is certain that China he said. “China will unswervingly follow a Renmin University of China, referring to the has gained respect from the international com- path of peaceful development and an open- president’s luncheon remarks. “The speech munity for its success in organizing the Games ing-up strategy that is mutually beneficial contains important information, although it and its athletic excellence, Jin said. and brings about win-win results. It pursues may not convince foreign critics prejudiced The Olympics provided an unprecedent- development based on peace, openness and against China.” ed opportunity for the outside world to learn cooperation.” The Chinese are ready to join Hu’s reiteration that China remains a de- about China in a “direct and comprehensive hands with other nations to build a “har- veloping country is relevant because the 1964 manner,” thus changing its misconceptions monious world of lasting peace and shared Olympics in Tokyo and the 1988 Olympics about the country, he said. The Games en- prosperity,” he added. in Seoul preceded major economic transfor- abled Westerners to get a more accurate South Korea was the first stop on Hu’s mations in Japan and South Korea, said Shi picture of China, which is a relatively mod- three-nation tour from August 25 to 30, which Yongming, a research fellow at the China ern nation instead of the feudal backwater also took him to Tajikistan and Turkmenistan. Institute of International Studies. depicted in some Chinese movies or the JU PENG

GREETINGS: South Korean children welcome visiting Chinese President Hu Jintao in Seoul on August 25, along with South Korean President Lee Myung Bak

10 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com political heretic portrayed by the Western comprehensive way. China and South Korea It reached $159 billion in 2007 and $75.8 media, he said. established diplomatic relations in 1992. The billion from January to May this year. After the Olympics, however, the two countries upgraded their relations to a stra- The great achievements in the politi- Western media will continue to find fault tegic cooperative partnership during Lee’s first cal, economic, social and cultural relations with China, partly because they need to catch state visit to China in May this year, paving the between China and South Korea since 1992 audiences’ attention to make money and have not only benefited the two countries, partly because the conflicts between China but also contributed to peace and devel- and the West remain unresolved, he said. opment in Asia and the whole world, the He believes the Olympics will lead Western South Korea is China’s third communiqué said. countries to both respect and fear China more, a largest trading partner and In the communiqué, China and South trend that some countries will respond to by co- fourth largest source of Korea agreed to enhance political trust, operating with China while others will explore support each other’s peaceful develop- ways to guard against its rise. foreign direct investment. ment, strengthen high-level contact, expand The success of the Olympics has imbued The two countries’ trade communication between the governments, the Chinese with a strong sense of national volume has increased by parliaments and political parties of the two pride, he said. With this sense, China will show countries and increase dialogue on defense. greater openness and be more willing to follow 25 percent annually since They also vowed to coordinate on re- international rules, a posture welcomed by the 1992. It reached $159 billion gional and global issues—maintaining peace outside world. At the same time, the Chinese in 2007 and $75.8 billion and stability on the Korean Peninsula and may become less willing to compromise from January to May this in Northeast Asia, participating in Asian with foreign countries, mounting pressure on regional integration and strengthening coop- China’s diplomatic officials. Which one will year eration on international affairs. become the dominant mentality in China has South Korea will seek to develop ties with yet to been seen, he said. North Korea through reconciliation and cooperation, while China supports the two countries’ Toward regional unity way for expanded bilateral collaboration. reunification, according to the communiqué. In Seoul, President Hu met South Korean China is currently South Korea’s largest Today, Northeast Asia is in a “subtle leaders including President Lee Myung Bak, trading partner, export market and over- historical period” beset with complicated pledging to make joint efforts to further their seas investment destination. South Korea problems, Shi said. While the United States bilateral relations. is China’s third largest trading partner and plays a predominant role in the region with In a joint communiqué issued on August fourth largest source of foreign direct invest- Japan as its follower, the Asian countries 25, the two countries agreed to promote ment. The two countries’ trade volume has have yet to unite. So the upgraded ties be- their “strategic cooperative partnership” in a increased by 25 percent annually since 1992. tween China and South Korea are essential

XINHUA to regional solidarity and stability, he said. As South Korea shifts its diplomatic focus from the United States and Japan to China, it expects China to play a role in fa- cilitating improved relations between South Korea and North Korea as well as progress in the six-party talks aimed at resolving the North Korean nuclear issue, he said. During Hu’s visit, China and South Korea signed a number of cooperative documents on trade, high technology, energy conservation, desertification control and the hosting of world expos. Shanghai and Yeosu, South Korea, will host the World Expo in 2010 and 2012, respectively. The two countries designated 2010 as Visit China Year and 2012 as Visit Korea Year to bolster people-to-people exchanges. A record 6 million people traveled between China and South Korea in 2007. By the end of 2007, the number of South Koreans staying in China on a long-term basis had reached 700,000, while more than 530,000 Chinese lived, worked and studied in South Korea. By the end of last year, the number of Chinese students in South Korea had exceeded 34,000, accounting for two thirds of all overseas students there. South Korean GREEN COMMITMENT: College students students in China had totaled 64,000 by that from China and South Korea make Olympic time, more than students from any other for- rings with flowers in the Beijing Botanical eign country. Garden, as part of a youth exchange More than 830 flights shuttle between 40 program on environmental protection cities in China and South Korea every week. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 11 WORLD LIU YU NEXT STOP LONDON: A double-decker bus from London navigates the National Stadium at the closing ceremony of the Beijing Olympics on August 24

Welcome to London How will the British capital replicate Beijing’s glory four years from now?

By YAN WEI Jinlong, Mayor of Beijing, handed the mances against the backdrop of its world- hen British football icon David Olympic flag to his London counterpart renowned landmarks. London won its bid Beckham kicked a ball from the Boris Johnson. to host the 30th Olympiad in 2012 at the top of a double-decker bus into A double-decker bus entered the stadium, 117th session of the International Olympic Wthe crowd of athletes gathered also called the Bird’s Nest, followed by British Committee held in Singapore in 2005. at the National Stadium at the closing cer- Olympic cyclists dressed as ordinary riders on The 2012 Olympics will make London emony of the Beijing Olympics to invite a London street, with typical London commut- the first city to host the modern Olympic them to London, there was no question ers waiting by a zebra crossing. Games three times. The British capital previ- that London is determined to continue the dream so vividly exemplified in Beijing. When the bus pulled in, a British girl got ously hosted the Summer Games in 1908 For eight minutes during the closing off. Another girl named Erika Tham with and 1948, when the event was considerably ceremony on August 24, British performers Chinese, Canadian, Malaysian and Ukrainian smaller. Only 22 nations competed in the bicycled, danced and beamed in a dazzling, heritage presented her a football marked fourth modern Olympiad in 1908. The 1948 culture-laden extravaganza. The message with the Olympic rings, symbolizing that the Games, the first Olympics after World War was unmistakable: Welcome to the fantastic Olympic Games are a gift to London from II, drew athletes from 59 nations. city of London. Celebrating such concepts as the rest of the world. Britain was fourth in the medal tally for involvement, sustainability, cultural diversity The bus then transformed into a privet the Beijing Olympics with 19 gold medals, and a focus on young people, London seems hedge featuring famous London landmarks more than double the number four years ago poised to stage a unique Olympiad with such as the Tower of London, Battersea in Athens. British characteristics in 2012. Power Station, the Gherkin skyscraper and St Paul’s Cathedral. Strategic partners London carnival In its Olympic bid, London vowed to The hosting of two successive Olympics The grand show started after Guo inspire athletes to deliver their best perfor- in Beijing and London presents opportuni-

12 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com LIU JIANSHENG OLYMPIC BONDS: Chinese President Hu Jintao meets British Prime Minister Gordon Brown in Beijing on August 22

ties for China and Britain to deepen their safeguard world peace and promote common deployed the world’s largest-ever volunteer ties, Chinese President Hu Jintao said in a development, Hu said. For example, they can group to help make all foreign guests feel at meeting with visiting British Prime Minister consult with each other to help resolve inter- home by minimizing language barriers and Gordon Brown on August 22. China is national issues, jointly push for the reopening inconveniences in a strange city. It also of- ready to share its experience in organizing of the Doha Round of world trade talks and fered comfortable venues and an Olympic the Olympics, implement the two countries’ explore new frontiers of cooperation in ad- Village with easy access to the venues, ca- plans for Olympic collaboration and make it dressing climate change and energy security. tering to the needs of athletes with different an important new area for their bilateral co- cultural and religious backgrounds. operation, he added. A sense of responsibility The application of high technology Brown, who came to watch the closing In a recent editorial, Hong Kong-based not only made the opening and closing ceremony of the Beijing Olympics, said the newspaper Wen Wei Po said Beijing has set ceremonies more entertaining and visually Britain-China strategic partnership is forging an example for a “green Olympics,” “peo- appealing, but also helped athletes improve ahead with rapid progress in trade as well as ple’s Olympics” and “hi-tech Olympics.” their performance, it said. London is ex- cultural, educational and people-to-people Although the international community pected to do even better than Beijing in this exchanges. Britain hopes to work more questioned Beijing’s air quality before regard, it said. closely with China in the fields of science the Games, it turned out to be an environ- Beijing’s security measures are another and technology, climate change, nuclear mentally friendly city, it said. London’s legacy for London, which faces an even tougher power, renewable energy and African devel- pollution has also been under interna- security situation in light of the terrorist attacks opment, he said. It is also willing to make tional scrutiny. The British have expressed it has suffered in recent years, it said. joint efforts with China to curb trade protec- discontent over higher taxes on heavily London does not feel pressured by the suc- tionism and work for the establishment of an polluting vehicles and a rule prohibiting cess of the Beijing Games, said Sebastian Coe, open, stable world trade regime. spectators from driving to Olympic events. Chairman of the London Organizing Committee Hu also commented positively on the London needs to communicate with Beijing for the Olympic Games. At an August 22 press two countries’ relations. He called on both to ensure a green Olympiad in 2012, the conference at the Beijing International Media countries to view their relations from a editorial said. Center, Coe said that every Olympic host city is strategic perspective, respect each other’s During the Olympics, Beijing did a good obligated to organize the Games successfully, concerns and continue to advance mutually job accommodating more than 16,000 ath- present its best face to the world and leave a beneficial cooperation. letes, over 80 top foreign leaders and some positive legacy for the Olympic movement. On a global level, China and Britain 30,000 journalists from across the world, Beijing has inspired London to repeat its suc- have great potential for working together to the newspaper said. For instance, Beijing cess in 2012, he said. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 13 WORLD Play for Power Musharraf steps down under pressure, but Pakistan’s political battles are far from over ZHOU LEI cians abroad and a growing pro-democracy movement at home. As the Taliban and Al Qaeda militants in the Pakistan-Afghanistan border region grew stronger, the United States pushed him to be more aggressive and began to value him less as an asset in the war on terror. Musharraf kept an uneasy hold on power. After the election, it was Sharif who led the calls for Musharraf to resign. The two men have a rancorous relationship. Musharraf ousted Sharif in 1999. Sharif worked to drive Musharraf from office while in exile before returning to Pakistan in November 2007. In recent months, Sharif threatened to pull the PML-N from the coalition unless PPP leader Asif Ali Zardari agreed to seek Musharraf’s impeachment. On August 7, the government gave Musharraf an ultimatum: request a vote of confidence or face impeachment proceedings. Then, three of Pakistan’s four provincial parliaments passed resolutions publicly condemning the president for violat- ing the constitution. Musharraf was besieged on all sides, thus he had no choice but to step down. Pakistan’s military leaders took a neu- tral position, further weakening Musharraf. General Ashfaq Parvez Kayani, who became Chief of Army Staff in November 2007 when Musharraf gave up the title, hopes to keep the FAREWELL: A file photo of former Pakistani President Pervez Musharraf, military removed from politics. He has prohib- who resigned on August 18 ited soldiers from meeting with politicians and ordered all active officers to resign from civilian By ZHANG LIJUN Party (PPP) and the Pakistan Muslim League government positions. The new policies indicate Kayani’s stance: Unless it is unavoidable, ecently, Pakistan had a political earth- (Nawaz), or PML-N, led by former Prime Minister Nawaz Sharif—formed a multi-party Pakistan’s army will not intervene in politics. quake. On August 18, President Pervez The military’s attitude was pivotal in determin- Musharraf announced his resignation coalition government in February, united in their opposition to Musharraf’s rule. But the two ing the outcome of the recent political crisis. Rin a nationally televised speech. After Without military support, Musharraf’s political parties disagree on how to fight extremism and the Pakistani Parliament accepted his resigna- foundation was shaky at best. terrorism, while lacking experience in this field. tion, the 57-year-old Speaker of the Pakistan The Pakistani people were unenthusi- Sharif withdrew his party from the coalition on Senate, Muhammadmian Soomro, became astic about Musharraf’s cooperation with acting president in accordance with Pakistan’s August 25, citing the PPP’s reversal on reinstat- Washington in the war on terror. Musharraf Constitution. Lawmakers must select a new ing judges dismissed by Musharraf. Although relied on the U.S. aid and support to maintain president within 30 days. the coalition government will stay in place, it political power, but he also faced a dilemma. Pakistan, an important ally of the United now has a powerful opponent—Sharif. The United States required him to sweep the States, is now at a crucial point in the war Reasons behind Pakistan-Afghanistan border region, root out on terror. Some Western media worry that the Taliban and Al Qaeda fighters entrenched Musharraf’s resignation might further de- There were several reasons behind there, and assist in the search for Osama bin centralize power inside Pakistan, leading to Musharraf’s resignation. Huge political pres- Laden. However, the border region includes political disintegration in the country. The two sure from the ruling alliance left him with little Pashtun tribal areas controlled by religious largest political parties—the Pakistan People’s choice, especially after the PPP and PML-N parties, beyond the central government’s agreed to pursue impeachment. Even before his authority. If Musharraf launched military opponents won the parliamentary election in The author is deputy director of the Department for attacks, not only Pashtun tribe leaders and Information and Contingencies Analysis at the China February, Musharraf’s situation was precarious. soldiers would resist, but also major religious Institute of International Studies He faced strong criticism from exiled politi- parties would be enraged. If Musharraf per-

14 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com formed his antiterror duties in a perfunctory tacks on the United States in 2001, Washington Challenges ahead manner, Washington would discard him and heaped praise and rewards. The United States Although Musharraf has resigned, political find another partner. not only lifted sanctions it had imposed on acrimony remains. The PPP and the PML-N While the United States accused Pakistan Pakistan, but also provided more than $10 bil- already clash on a number of issues. Now they of being unable or unwilling to strike the lion in aid. At the same time, however, some begin a new dispute over power distribution, Taliban and Al Qaeda, the Pakistani people be- Americans feared their cooperation with which could be a destabilizing issue. Moreover, came angrier at the United States. The U.S.-led Musharraf was weakening democratic forces the ruling alliance has few political achieve- war on terror has cost Pakistan’s military about in the South Asian country. They pointed out ments to show for the past four months, and its 1,000 lives. In June 2008, tensions increased that, as Pakistan is a politically volatile country approval rating has hit rock bottom. Lawmakers when a U.S. air strike targeting militants killed with a population of 165 million, the United will almost certainly redistribute decision- 11 Pakistani infantrymen instead. Moreover, States should not rely purely on government or making powers and weaken the presidency. some people in Pakistan, as in other Muslim military officials. They believed that the United Now the focus is on who will fill the position. countries, are displeased with U.S. diplomatic States should assist Pakistan’s democratic forces Zardari is favored to win the September 6 elec- policy and consider the war on terror a war instead. The U.S. Government was not satisfied tion, while the PML-N has put forward Saeed- against Islam. Musharraf thus was condemned with Musharraf’s antiterror efforts, either, with uz-Zaman Siddiqui, a former judge. as a mouthpiece for the United States. The some officials questioning whether they were The new Pakistan Government will face Pakistani people projected their dissatisfaction worth the price tag in aid. a series of problems, primarily combating ter- with the United States onto Musharraf, making As Musharraf relinquished his military rorism and developing the domestic economy. him the scapegoat. position and saw his opponents elected to Just one day after Musharraf resigned, a suicide Recently, anti-American sentiment parliament, the Bush administration distanced bomb at a hospital in northwest Pakistan killed in Pakistan has become seemingly over- itself from him. When Musharraf was under 26 people. On the same day, five Pakistani whelming. People believe that the country heavy pressure to resign, his American allies soldiers and 14 Taliban members died in a is involved in a war it can never win. Some did not offer him a helping hand as usual. In an clash between security forces and militants Pakistanis blame Musharraf’s support for the August 18 statement on Musharraf’s resigna- in the border region. Militant group Tehrik-e- U.S. effort for the growing violence inside tion, U.S. Secretary of State Condoleezza Rice Taliban Pakistan claimed responsibility for the the country. As Musharraf lost his people’s expressed support for the democratically elected hospital attack, warning that it would launch hearts, he also lost his political foundation. government. “We believe that respect for the more attacks in other Pakistani cities. Pakistan’s Musharraf was losing American support democratic and constitutional processes in that economic situation also continues to deteriorate, as well. When Musharraf pledged his support country is fundamental to Pakistan’s future and with rising inflation and increasing shortages in for the war on terror after the September 11 at- its fight against terrorism,” she said. food and electric power. n XINHUA/AFP XINHUA/AFP

SHARIF QUITS: Former Pakistani Prime Minister ZARDARI AS CANDIDATE: Asif Ali Zardari (right), co-chairman Nawaz Sharif holds a press conference in Islamabad of the ruling Pakistan People’s Party (PPP), addresses the on August 25. Sharif announced his party would Central Executive Committee meeting in Islamabad on leave Pakistan’s ruling coalition after the Pakistan August 22.The PPP announced Zardari’s candidacy that day People’s Party, its coalition partner, broke promises for the presidential election to be held on September 6 http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 15 OLYMPICS IN FOCUS Record Breakers 1 2 3

8 9

13 14 15

1. Kosuke Kitajima, Japan: 4. Gulnara Galkina-Samitova, Russia: 7. Eamon Sullivan, Australia: two world two world records in men’s the world record in the women’s records in men’s swimming competitions breaststroke competitions 3,000 meters steeplechase 8. Andrei Rybakou, Belarus: 2. Stephanie Rice, Australia: 5. Rebecca Soni, the United States: the world record in men’s 85 two world records in women’s the world record in the women’s kilograms weightlifting swimming competitions 200 meters breaststroke 9. Rebecca Adlington, Britain: 3. Liu Chunhong, China: 6. Ryan Lochte, the United States: the world record in women’s three world records in women’s 69 two world records in 800 meters freestyle kilograms weightlifting competitions swimming competitions

16 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com 4 5 6 7

10 11 12

15 16 17 18

10. Jang Miran, South Korea: three 13. Elena Isinbaeva, Russia: the world 16. Aaron Peirsol, the United world records in women’s 75 kilograms record in the women’s pole vault States: two world records in men’s weightlifting competitions swimming competitions 14. Federica Pellegrini, Italy: the world 11. Usain Bolt, Jamaica: three world record in women’s 200 meters freestyle 17. Kirsty Coventry, Zimbabwe: records in athletics competitions two world records in women’s 15. Liu Zige, China: the world record backstroke competitions 12. Michael Phelps, the United in women’s 200 meters butterfly States: seven world records in 18. Andrei Aramnau, Belarus: three swimming competitions world records in men’s 105 kilograms weightlifting competitions

http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 17 OLYMPICS IN FOCUS

18 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 19 OLYMPICS IN FOCUS

team in Olympic history. Their smiles and dedication made the Olympics more beautiful. The Beijing Olympics were one of the most watched Games in the history. More than 220 television agencies and over 25,000 journalists covered the event. The IOC site logged 5 million clicks during the entire process of the Beijing Games, whereas it logged 2.8 million clicks during the Athens Olympics. More than 80 heads of states and governments participated in the opening ceremony of the Beijing Games. About 80 percent of the people in China and about half of the people in the United States and Europe watched the opening ceremony on television. This was a record number. Few other events have received so much attention. LIU YU Medals were awarded to 87 Olympic delegations, the largest number since the Olympics began. Afghanistan, Mauritius, FOND FAREWELL: An athlete raises the head of a Fuwa, the Olympic mascot, during celebrations Tajikistan and Togo won their in the Bird’s Nest at the Olympic closing ceremony first Olympic medals in history, and Bahrain, Mongolia and the Panama won their first Olympic gold, while India won its first Beijing’s Olympic gold in an individual event. Many delegations and athletes fulfilled their Olympic goals. Team China had a remark- Scorecard able performance. When the Games concluded on August 24, they had pocketed 51 golds, 21 By YI JIANDONG Committee for the Games of the XXIX silvers and 28 bronzes, making exactly 100 eijing has successfully delivered an Olympiad, 38 world records and 85 Olympic medals in total. Olympic Games to the world. The records were broken in the 2008 Games. The Olympic Games have also popular- 2008 summer Games were marked More world records and Olympic records ized sports in China’s schools, and helped with distinct Chinese elements, while were broken in the Beijing Games than in to promote friendship and understanding B the Athens or Sydney. the rules specified in the Olympic Charter between nations. and the International Olympic Committee’s Numerous Olympic miracles and glo- A total of 556 model schools of Olympic (IOC) written agreement with the host city rious moments were born in the 12 new education have been selected from schools were strictly followed. Olympic venues, including the Water Cube across China. More than 200 middle or Seven years ago, when granting the and the Bird’s Nest. In addition, 11 reno- primary schools have established friendly hosting rights of the Games of the XXIX vated venues and eight temporary venues ties with the Olympic committees of other Olympiad to Beijing, the IOC was confident in Beijing, as well as six sports arenas in countries or regions. The Olympic spirits of in the city, and believed that holding the the co-hosting cities, were also used for the solidarity, friendship, peace, and fair com- Games in China would facilitate the dissemi- Games. petition have been spread to innumerous nation of the Olympic spirit among its 1.3 A total of 11,468 athletes from 204 coun- students. The scale of Olympic education is billion people, leaving an unrivalled legacy tries and regions competed in the Beijing unprecedented. in Olympic history. Games. Beijing saw the largest number of More than 400 youths, including 10 Data about the 2008 Games suggest that female athletes competing in the history of disabled youngsters, from 204 Olympic the IOC made the right decision in choosing the Games, to the relief of the IOC, which is committees gathered at the Beijing Olympic Beijing as the host. committed to popularizing Olympic ideals Youth Camp in Beijing in August. The According to the Beijing Organizing and gender equality. young campers experienced Chinese culture About 100,000 Olympic volunteers, and customs, and watched the torch relay 400,000 city volunteers, and 1 million so- and Olympic competitions, actively promot- The author is the dean of the Sport Journalism and cial volunteers formed the largest volunteer n Communication Department, Beijing Sport University ing friendship and peace.

20 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com What the People Say...

By YUAN YUAN and JOHN BUTCHER James Peterson is from Australia and different from what I expected. It is very works in Hong Kong managing a real Question: What was your favorite mo- modern and fashionable. China will become estate company. He came to Beijing on ment of the Games? the place to visit after these Olympics. business during the Olympics and also Answers: Joe Fuentes: The opening Hao: The traffic has been much better. found time to enjoy some of the events ceremony was just incredible. I think it was Before the Games there were so many cars the best ever. on the road and there were always traffic Alastair Robinson: I loved watching jams. During the Olympics the odd and even the competitions, especially the fencing and traffic system worked. swimming. I just interviewed Phelps. There Li: Smiles form the heart. Before the were quite a few athletic legends created at Games people were busy with their own these Olympics. stuff. During the Games everybody just James Peterson: The people here are wanted to help each other and do the best for very friendly. They always smile and the visitors to the city from around the world. volunteers are very helpful. I am impressed by the good attitude of the local people. Is Beijing a convenient city to spend Hao Jingyi: The opening ceremony, time in? Joe Fuentes is an architect from when I saw Sarah Brightman singing. Fuentes: As long as you find a subway New York City. He came to Beijing station, you can go almost anywhere you during the Olympics on vacation Li Jingdi: The moment I saw an and stayed for 10 days Olympic ticket. Suddenly I felt close to the want to go. And because of the car limitation Games. measures, there were few traffic jams. Robinson: Compared with my experi- Alastair Robinson is a Has the event been well organized? ence in Beijing in the past few years, I think journalist with Fuentes: Yes. I’ve been staying here for the city, during the Olympics, has enjoyed a Reuters. He has almost one week. Everything is just in order relatively peaceful time. This makes people been to Beijing and I can feel the happy Olympic atmo- relax from the busy life in a way. several times and sphere everywhere I go. Peterson: There are very many vol- spent the 16 days Robinson: As a journalist living in the unteer stands in the subway stations and of the Olympics Olympic media village, I can feel everything scenic spots and around the Olympic ven- in various venues around the city has been prepared very well. China has ues. The volunteers can speak English, and taken great effort to make this the greatest you can always get a satisfactory answer Olympics in the history. from them. Peterson: Beijing did a good job in or- Hao: If Beijing had more subways it would be more convenient. When you ganizing this great event. People enjoyed the Li Jingdi is a sport and it was really just a big feast for the go to work it’s too crowded on the bus 23-year-old whole world. and subway. It has been better during the music teacher Hao: Yes. I heard they cooked different Olympics. from Urumqi, in food for athletes from different countries in Li: It’s a big city so it has obvious incon- Xinjiang Uygur the Olympic Village. veniences. It’s a little bit expensive to travel Autonomous Li: Absolutely yes. Everybody who has around town. A taxi costs a lot and the bus Region, who eyes and nose and ears can feel this has been takes a lot of time and energy. has been living a good Games. The traffic has been much in Beijing for several years better and the environment in general has What do you think of Beijing’s air gotten better. quality? Fuentes: I never thought Beijing would What impressed you most about be so clean before I came here. Very com- the city and the changes made for the fortable. Olympics? Robinson: The air was obviously very Fuentes: Beijing has built such incred- well controlled during the Olympics. We ible buildings, such as the Bird’s Nest. It is have enjoyed nice weather these days. very impressive. Besides, the transportation Peterson: The air was very healthy. It system is very convenient, especially the made me feel like I was at home. subway system. Hao: I can’t feel that it’s gotten any bet- Robinson: I came to Beijing several ter. I’ve lived here for four years and there’s years ago, and I can feel the changes every been no change. Maybe it’s better, but if time I come here, especially this year. It has you live here all the time you don’t see the become very neat and the air is so fresh. I change. can tell that Beijing has done a lot to improve Li: It’s not good, but it’s getting better. the environment for the Olympics. The local I’m a little worried that when the Olympic people are more open to foreigners as well. Games finish the air quality will get worse Hao Jingyi is a 22-year-old Peterson: It is my first time here. It is again. n auditor working in Beijing http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 21 OLYMPICS IN FOCUS LI JUNDONG LI JUNDONG

REDEEM TEAM: U.S. basketballers celebrate their Olympic championship NET BOUND: Kobe Bryant flys to the at the Beijing Olympics hoop in the Olympic final against Spain Slam Dunking Good U.S. basketball back to its winning best at the Beijing Olympics

By XIAO XIAO superstar-filled lineup. Dwyane Wade and Tim Duncan. The bronze obe Bryant, the most valuable player “If we didn’t have great character we medal also resulted in a new nickname for in the 2007/8 NBA season, pointed would not be able to beat another team that James—“LeBronze.” to his U.S.A. vest in triumph as the had great character. Spain was fabulous,” “Going through that experience really final whistle blew on the clash with U.S. head coach Mike Krzyzewski said. helped me to learn the international game,” K In Beijing, Jason Kidd, the Dallas Anthony said. Spain. The United States ended an eight- year title drought in men’s basketball on Mavericks’ All-Star point guard, won his After the disappointing finish in Athens, August 24, after its “Redeem Team” pipped second gold medal after playing for the U.S. the Americans realized that a hastily assem- Spain 118-107 to earn the gold at the team at the 2000 Sydney Olympics and ran bled team of NBA players cannot guarantee Beijing Olympics. his unbeaten record in international tourna- a victory against a finely tuned foreign team, The U.S. team knew they had been in a ments to 56-0. and a deeper understanding of international battle. “The Spanish men were incredible. But, it was the first gold medal for every play is needed. They are world champions, but we came up other player on the team. A three-year commitment was addressed for a big win,” Bryant said. Before 2004, the Americans suffered by Jerry Colangelo, Managing Director of the LeBron James, the Cleveland Cavaliers’ only two losses in the Olympic basketball U.S. Men’s Senior National Team Program, All-Star forward who finished the game with tournament; but in 2004 in Athens, they were before the 2006 FIBA World Championships 14 points, also spoke highly of the challenge defeated in three matches against Puerto in Japan, where they suffered a shock loss to from the reigning world champions. He said, Rico, Lithuania and Argentina. It was the Greece in the semi-final. Building a program “The intensity was unbelievable. This will first time that the Americans failed to defend consisting of 33 best players from the United probably go down in history as one of the their Olympic men’s basketball champion- States, and four of the most successful coach- greatest Olympic games ever.” ship since NBA players started competing es, Colangelo and his colleagues proceeded to The U.S. team’s win was attributed in 1992, despite the fact they had big names create a true senior national team program. to the breathtaking performance of its all- such as Lebron James, Carmelo Anthony, Then came coach Krzyzewski with

22 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com three NCAA titles and the start of selec- tion of players who could commit time and energy to the cause and could work well Fast Water together. ESPN made a video program about these players’ journey for gold in Beijing, Road to Beijing’s Water Cube tailor made for Redemption, and the players came up with a swimming success nickname—“The Redeem Team.” “I want U.S. basketball to be dominant again,” James said. By XIAO XIAO between 2 and 3 meters. The pool in the Passion, teamwork and a coach familiar Water Cube is 3 meters in depth and has 10 with international basketball rules—all these he water in the Water Cube pool is lanes rather than the usual eight. key factors helped the chemistry in the team. tranquil now. The predatory power of Some people therefore attribute the good The Americans claimed gold at the 2007 American Michael Phelps churning results in the Beijing Games to the pool, FIBA Americas Championships in Las Vegas, his way to an unprecedented eighth T because deeper and wider pools allow the Nevada. With a 10-0 win-loss record, they ac- gold medal in the men’s 4x100 meters med- complished their first goal of qualifying for the ley relay, took swimming to new heights. waves to dissipate to the bottom and both 2008 Olympic basketball tournament. And there is no doubt that Beijing’s bubble- sides, leading to less water disturbance to After two summers of training and inter- shaped aquatics center helped in the process swimmers. national competitions, Krzyzewski knew that of the 21 new world swimming records. “It doesn’t beat you up like shallow the U.S. team was gaining important things During the nine-day swimming competi- water does,” U.S. coach Eddie Reese told that past teams didn’t have. tion, a total of 21 world records were broken China’s Xinhua News Agency. “A chemistry and the continuity of hav- at the venue, equalizing the collective total The pool in the Water Cube also has ing layers year after year,” the coach said. of Athens (8) and Sydney (13). The longest- perforated gutters on both sides to absorb the “We all know each other. We have devel- surviving world record, in women’s 800 waves aside from the wave-flattening lane oped friendships and trust. The cornerstones meters freestyle, standing for 19 years, was markers, which use spinning plastic baffles of any successful organization start from broken by Rebecca Adlington from Britain to suck energy from waves. in 8 minutes, 14.10 seconds. those core values.” Bubbly feeling Veteran leadership is a must for any team “We are calling it the ‘swimming temple’ hoping to capture the Olympic gold. As for of the world,” Cornel Marculescu, Executive Lighting is allegedly a vital factor to the U.S. team for the Beijing Olympics, Kidd, Director of the aquatic sport governing body Phelps’ amazing achievement in the Water 35, and Bryant, 30, filled that role. Of the 12 FINA, told reporters covering the Olympic Cube. According to him, the lamplight and members, six were part of the team for the swimming competition. The record-breaking natural light high up on the roof and the “bub- 2006 FIBA World Championships and eight spree has sparked many debates on reasons bles” refracted, which he saw when he was were part of the team for the 2007 FIBA why performances had been so speedy here swimming on his back, made him “feel great.” Americas Championships. Anthony, James in the Water Cube. The “bubbles” mentioned by Phelps is and Dwight Howard were on both teams. the membrane structure of the Water Cube. This team went unbeaten in the Olympic Deep pool The thin transparent material, called ETFE

qualifying matches and extended their According to FINA regulations, the (Ethylene Tetrafluoroethylene), is segmented s s winning streak until the end of the Beijing depth of a standard swimming pool ranges into 3,000 air-filled cushions that let in light

Games. XIAO YONG The 1992 Dream Team, with Michael SWIMMING TEMPLE: Beijing’s ‘Water Jordan, Magic Johnson, Larry Bird and Cube’ Aquatics Center witnessed 21 new Charles Barkley on its roster, overcame world records during the Beijing Olympics its opponents by an average of more than 40 points a game. This time, the “Redeem Team” outclassed its opponents by an average of 30 points before the final. In their eight-game run to the gold medal, the Americans forced an average of 19.4 turn- overs per game, shot 55 percent from the field and outscored their opponents 17.4 to 4.1 points a game on the fast break. “We were at America’s lowest point in 2004 and to be sitting here, on top of the world, I think we did a hell of a job of putting American basketball back where it’s supposed to be,” Anthony said. As for Bryant, the Beijing Olympics offered him the chance to get the only gold medal he hadn’t already owned in his career. “It is more important and more special than any championship any of us will ever win,” said Bryant. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 23 OLYMPICS IN FOCUS but hold in heat, which helps swimmers feel of good energetics. The 7.8-km north-south water like a hot knife through butter,” said more comfortable. city axis, which runs through Tiananmen Australian swimmer Grant Hackett, who Japanese Olympic champion swimmer Square and the Forbidden City in downtown broke the Olympic record in men’s 1,500 Kosuke Kitajima, who broke the world re- Beijing, perfectly dissects the two modern meters freestyle, in an interview with the cord in men’s 100 meters breaststroke and landmarks, which represents the Chinese Swimming World magazine in February. the Olympic record in 200 meters breast- people’s pursuit of tranquility and peace. stroke, said it was very comfortable when Many fengshui enthusiasts studied the Hardworking athletes swimming in the “bubbles,” which made distribution of Olympic venues and even When asked what makes a faster pool, him feel like a fish in water. the layout of Beijing City. It is said that the John Mcllhargy, who consulted on the de- Beiding Niangniang Temple, one of the most sign of the Beijing pool, said that it was “a Comfortable temperature famous religious sites in Beijing’s history, faster swimmer.” Cold water could lead to the waste of is right between the Bird’s Nest and Water FINA’s Marculescu also said that it is swimmers’ energy, while hot water would Cube. The temple is associated with “wa- the athletes who create world records, down- prevent the swimmers from generating heat. ter,” one of the five elements (metal, wood, playing the importance where they swim and The Beijing pool’s temperature is water, fire, and earth) that form the origin of what they wear. kept at between 26.5-26.9 degrees Celsius the world according to fengshui theory. For Japan’s Kitajima, for example, has a (79.7-80.4 degrees Fahrenheit), which is many this is a convincing answer for a big disadvantageous height of 1.78 meters. But considered ideal. haul in the pool. for what he is lacking, he made up through “The pool is great. The water tem- tough training. perature is awesome. It feels fast,” Greek Speedo swimwear “I’ve been training rather hard,” the swimmer Apostolos Tagkarakis was quoted Swimming suits that mimic shark skin 25-year-old told the media before the Beijing by Xinhua as saying after his first training are cited as another hi-tech factor behind a Olympics. “I must do my best in Beijing session at the Water Cube. spate of new world records. Olympics.” Since its debut at the beginning of this Kitajima’s efforts paid off when he Good geomantic location year, almost all the record-breaking feats defended his titles in men’s 100 and 200 Some also believe that the location of were connected with the Speedo LZR Racer breaststroke, becoming the only swimmer the Olympic venues bring good luck for the suit. Known as the fastest suit available, the who had won four Olympic breaststroke gold athletes. swimwear, designed with help from U.S. medals, two in Athens and two in Beijing. According to fengshui, an ancient space agency NASA, keeps swimmers in a In the Beijing Games, the United States Chinese system of designing buildings and corset-like grip that is said to allow wearers (12 gold medals) and Australia (6) main- space according to the flow of energy aimed to maintain the best body position in the wa- tained their lead in Olympic swimming at achieving harmony with the environment, ter for longer and reduce drag. competition. Britain, Japan and Germany the two main Olympic venues—the Bird’s “You feel so streamlined in the water. each won two gold medals. Nest stadium and Water Cube—are at places You feel like you are cutting through the The Chinese also joined the gold jubila- tion when 19-year-old swimmer XINHUA Liu Zige rewrote Australian Jessicah Schipper’s world record in women’s 200 meters butterfly by more than 1 second, snatching host China’s only swimming gold at the Beijing Games. Swimmers from France, the Netherlands, Zimbabwe, Italy, South Korea, Brazil and Tunisia also secured gold medals at the Water Cube. A total of 21 countries won medals in the Beijing pool. And the magical Water Cube witnessed another record as for the first time swimmers from all the five continents went on the podium in one Olympic Games. n

CLEAN PLUNGE: Australian Matthew Mitcham dives to gold in the men’s 10 meters platform on August 23 at the Water Cube

24 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com Asian Heroes China, South Korea and Japan keep Olympic flag flying GESANG DAWA WU WEI

HOT SHOT: A member of South Korea’s women’s NUMBER ONE: The Japanese softball team celebrates archery team releases an arrow during the finals. The victory after stunning three-time world champions the team won a gold medal in the event on August 10 United States 3-1 to clinch gold on August 21

By LU WEIPENG Archery is another field that has been track and field events and under-performed total of 19 countries and regions of dominated by Koreans since it was officially in other events too. The final result for Japan Asia competed at the 2008 Beijing included in Olympics in 1972. At the Beijing was nine gold medals, six silver medals and Olympics, winning 86 gold, 54 Games, Korean athletes took both the men’s 10 bronze medals, which ranked it eighth on silver and 72 bronze medals. Their and women’s team gold medals, achieving the medal chart. A the third successive Olympic victory for the Judo used to be a big source for gold gold medal haul accounted for 28.5 percent of the total 302 gold medals awarded. men’s team and a sixth successive victory medals for Japan, but its judo team encoun- Of the Asian medal winners, China, for the women’s team. tered very strong competitors and only took Japan and South Korea were the top three South Korea also won two gold medals home four medals, two less than expected. accounting for 73 gold medals, and 84.9 in weightlifting and one in baseball. Japan won two gold medals in wrestling percent of all medals won by Asian coun- The country’s hottest sports star, Park at the Beijing Games, equaling that of the tries. Tae-hwan won the gold medal in the men’s Athens Games in 2004. The top three have traditionally been 400 meters freestyle, the first Olympic Japanese swimming star Kosuke strong in sports, competing with each other swimming gold medal in history for Korea. Kitajima successfully defended his in the Asian sporting arena. At this Olympics He also won a silver medal for men’s 200 Olympic crown with a new world record however, China outdid the competition, meters freestyle. of 58.91 seconds in the men’s 100 meters leaving them fighting for the second place in The other three gold medals of the breaststroke at the Beijing Olympic Games Asia. country were obtained in shooting, judo and on August 11. Later he set a world record South Korea sent 267 athletes to the badminton. in the men’s 200 meters breaststroke on Beijing Olympics to compete in 25 sports, At the 2004 Athens Olympic Games, August 14. winning an unprecedented 13 gold medals Japan made a record-breaking of 16 gold Japan won nothing in track and field (one more than that in the Seoul Olympics in medals to surpass South Korea for the first events, but its women’s softball and football 1988), and placing them above Japan. time since 1988 and took the second place in teams had more success. The softball team Taekwondo has been a steady source of Asia after China. In Beijing, Japan dispatched beat the United States, who were defending gold medals for South Korea since it was an unprecedented delegation of 576 people champions, to win the country’s first gold officially admitted to the Olympic Games with the goal of winning at least 10 gold med- medal in this event. The football team beat in 2000, and it claimed four gold medals in als and more than 30 medals in total. China in the quarterfinal match. Beijing. Before the Games, Japan had aimed at Japanese women’s football team had gold medals in judo, wrestling, swimming, demonstrated their strength to beat down The author is with the Policy and Law Department of gymnastics and track and field events. The the stronger Chinese team, and step into the the State General Administration of Sport country gained nothing in gymnastics or world first-class football club. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 25 OLYMPICS IN FOCUS LIU YU AFRICAN HEROES: African runners Sammy Wanjiru from Kenya (center), Jaouad Gharib from Morocco (left) and Tsegay Kebede from Ethiopia (right) stand on the winners podium showing their medals for the men’s marathon event

Out of Africa Continent shows its stars and future potential in Beijing

By NI YANSHUO race with a time of 29 minutes and 54.68 world record at these Olympics by that time. or a continent that hits the headlines seconds; and of the top eight men’s football “I just can’t wait to go back to Zimbabwe most often for wars and famine, the teams, three were from Africa. to celebrate with my compatriots,” recalled Olympics offered Africa a chance to Kenya was the most successful African Coventry excitedly in an exclusive interview make the news for more positive rea- country in Beijing with 14 medals, including with Beijing Review. “I was so happy when F five golds. The result was much better than I heard the national anthem of Zimbabwe in sons, and its athletes obliged with a host of outstanding achievements. at the Athens Olympic Games four years Beijing. At the closing ceremony held on ago, where the country only won seven med- “I have trained hard for four years for the August 24 at the National Stadium, or the als, including one gold. highest competition in the swimming world so Bird’s Nest, the main venue for Beijing “Our youth program has really increased as to be on top form,” said Coventry, adding Olympics, three African athletes, Sammy and it’s really helping. It’s a very good that her success will surely encourage more Wanjiru from Kenya, Jaouad Gharib buildup toward these kinds of events,” said Zimbabweans to take up swimming. from Morocco and Tsegay Kebede from David Okeyo, head of the Kenyan Olympic Born in Harare, capital of Zimbabwe, Ethiopia, walked to the winning podiums Committee, in Beijing. in 1983, Coventry showed great interest in of the men’s marathon event to receive Kenya will host the Africa swimming as a child. “We do not have in- medals from Jacques Rogge, President Championships in 2010 in Nairobi. Okeyo door pools, so swimming in winter is very of the International Olympic Committee. said in anticipation that Kenya is working hard,” said Coventry. They were the final three medal winners of hard on track and field events. In 2000, the 17-year-old high school student the Beijing Olympic Games. entered the Olympic delegation of Zimbabwe African athletes not only made outstand- Harare’s swimming champ and participated in four competitions in Sydney. ing achievements in track and field, an area Thoughts of Africa often conjure up an It was her debut in Sydney that caught the at- they are traditionally strong in, but also in arid image, and it’s true that the continent does tention of Auburn University, Alabama, in the other sports events. To compete in Beijing, not have abundant water resources. However, United States, which is famous for swimming African countries dispatched large athletic Africa still managed to provide a world record- education. The university granted her a scholar- delegations. More than 10 state and govern- breaking swimmer to the Olympics in the form ship for four years. ment leaders and several dozen ministerial- of Kirsty Coventry from Zimbabwe. “It was really a good opportunity for me, level officials came to Beijing to encourage Coventry attended four swimming though it was very hard for me to leave home,” their teams. competitions. After finishing second on she said. She won a gold, a silver and a bronze African athletes demonstrated their three occasions, she finally made history by at the Athens Olympics in 2004. This was strength in various sports events. The top eight defending her Olympic title and winning a the first gold medal for Zimbabwe since the in the 10,000-meter race were all from Africa; gold in the 200-meter women’s backstroke country’s hockey team won an Olympic gold Ethiopian female athlete Tirunesh Dibaba on August 16, with a world record time of 2 medal in 1980 in Moscow. In Beijing, her ef- broke the world record in the 10,000-meter minutes 5.24 seconds, the 22nd swimming forts took Zimbabwe to the seventh place on the

26 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com DING XU LI GA FLY THE FLAG: Ethiopian athlete Tirunesh Dibaba celebrates after winning gold in the women’ s 10,000-＝＝meter race and setting a world record

GOLDEN PERFORMANCE: RECORD JUMP: Defending Olympic Kirsty Coventry cheers champion Francoise Mbango of after winning a gold Cameroon breaks the Olympic LIAO YUJIE medal at the Beijing record in the women’s triple Olympic Games jump at the Beijing Olympics

swimming medal list, behind the United States, Mozambique 10 years ago via Portugal,” Talent drain Australia, China, Britain, France and Japan. said Coach Omar Omar of Mozambique. A major problem for many African Coventry is currently studying in the United “Judo is a booming sport in our country. countries is how to keep talented athletes at States. “I go back to Zimbabwe at least once a We are considering putting the sport into our home. “African athletes perform very well year and my parents, grandparent, uncles and school education system.” in the Olympic Games, but the continent aunts and cousins are living there,” stressed With a population of 20 million, faces a serious drain of athletes. The IOC Coventry. Mozambique has 2,000 people in the should take measures to prevent the spread country’s Judo association and, according to of this phenomenon,” said George Gomez, Judo potential Omar, the figure is increasing by around 75 head of the Gambian Olympic delegation African athletes also showed potential percent each year. to Beijing. in other traditionally weak sports across In recent years, many African athletes the continent. On August 10, Algerian ju- Olympic dream have chosen to become naturalized as citi- doka Soraya Haddad won the first Olympic Only the FIFA World Cup rivals the zens of European countries. “Meanwhile, medal for Africa, taking bronze in the Olympics as a world sports event. In two years in order to occupy preferential positions women’s 52kg category. Three days later, time, the FIFA World Cup will be held in South in medal lists, some rich countries pay her compatriot Amar Benikhlef won a silver Africa. Could an African country also host the huge expenses to buy African athletes to in the men’s 90 kg judo competition, and Olympic Games in the near future? compete for them. This will harm Africa’s the bronze medal in this category went to To date, Africa is the only continent that efforts in training sports reserves,” stressed Egyptian judoka Heshan Mesbah. African has not hosted the Olympic Games, among Gomez. countries won more judo medals in Beijing the five inhabited continents. Experts say that At the Commonwealth Games held in than they have in all previous Olympics with the FIFA World Cup being held in South 2002 in Manchester, Britain, Gomez led combined. Africa, the Olympics is likely to follow. 14 young Gambian track and field athletes Benikhlef’s breakthrough was cultivated by Cape Town in South Africa competed out, and all of them later disappeared and the International Judo Federation (IJF), estab- for the right to host 2004 Olympic Games in did not return to Gambia. “This was a great lished in Morocco, where judokas were coached 1997, together with Athens, Rome, Stockholm loss to Gambia. Actually, such a phenom- by former Italian judo star Ezio Gamba, who and Buenos Aires, but failed. Rogge has indi- enon can be seen in almost every country was Olympic champion in Moscow in 1981 cated on many occasions that he hoped to see in Africa.” and won silver in Los Angeles in 1984. the Olympic Games held in Africa. Several years ago, African countries “The International Training Center in Born in the West, the Olympic Games suggested the International Association of Morocco was a test project which proved in used to be held only in European and Athletics Federation (IAAF) forbid track a short period of time to be very successful. American countries. It has since expanded to and field athletes from African countries, IJF will soon open a training center on each become a truly global event. who have changed their nationalities, par- continent to develop judo all over the world,” According to Colin Moynihan, Chairman ticipating in international competitions on said IJF President Marius Vizer. of the British Olympic Association (BOA), behalf of other countries within six years African countries sent 41 Judokas to the Olympic Games was centered in Europe of changing nationality. The IAAF only compete in Beijing, mainly from northern in the 20th century, and in the 21st century agreed that such athletes should be kept Africa, including Algeria, Tunis, Morocco it should be more internationalized. He away from international competitions for and Egypt. stressed that the Olympic Games will come three years, or one year if the athletics as- Some 10 African countries sent just to Africa soon since the world’s top sports sociations of both countries agree. “Such one judo competitor each, among them, events should embrace every continent the prescription is unfair to African countries,” is Mozambique. “Judo only came to five-ring logo represents. said Gomez. n

http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 27 OLYMPICS IN FOCUS ZHAO ZHONGZHI HAPPY DAY: Jenny Lang Ping (fourth from left), head coach of the U.S. women’s volleyball team, celebrates with the team after they beat Cuba 3:1 in the semifinal, on August 21

Coaches Made-in-China China’s latest export, an overseas coaching legion, received lots of attention as well as understanding in Beijing REN LONG By TANG YUANKAI table tennis and gymnastics. Some outstand- n the evening of August 23, one day ing coaches have been appointed as head before the closing of the Beijing coaches of the teams they work for. Olympics, the Chinese diving team Raising the bar was only one gold short of its dream. O This was not the first time one of The last diving event was the men’s 10 meters platform. The Chinese audience was Tong’s disciples had taken gold from China. confident that their divers would secure this Chantelle Newbery, the Australian woman gold. who claimed gold in the women’s 10 plat- The audience was stunned as Matthew form at the 2004 Athens Games is also Mitcham, an Australian, made a flawless last Tong’s student. dive, and snatched the gold with a score of While Tong was in China, he was a 112.10. It was only the second Olympic gold gold medalist in several major international in men’s diving ever won by Australia, 84 competitions including the Asian Games, years after Richmond Eve won gold in men’s the World Cup and the World University platform diving at the 1924 Paris Games. Games. In 1987, he was named World’s Best Mitcham, 20, can speak a little Chinese. Man Platform Diver by the U.S. magazine His current coach, Tong Hui, is from China, Swimming World. After retiring from the and is now serving as head coach of the Chinese team in 1989, Tong was invited to Australian diving team. serve as a coach in a diving club in Canada. According to the State General In 2001, he went to teach in Australia. Less Administration of Sport, since China first than three years later, his student Newbery THAT'S MY COACH: Qiao Liang poses sent coaches to teach overseas in 1957, it has was decorated with an Olympic gold in the with his student Shawn Johnson dispatched 2,547 coaches to 123 countries Athens. At the Beijing Games, Australia won after she wins a gold in the balanced or regions in 36 events, including diving, silver in the women’s 10 meters platform, los- beam event, on August 19

28 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com ing only to China. but she refused. Five years later, the United the world as a family. Sport is borderless,” Several other Chinese-born coaches also States extended another invitation, and Lang Lang said. “In the Beijing Olympics, I feel came to Beijing’s National Aquatic Center decided to think about it, because she wanted very much at home.” including Ma Jin, who coaches the Mexican to be close to her daughter who was study- Chinese-born coach Qiao Liang also at- diving team and Chen Wenbo, coach of the ing in the United States. Lang spoke with tracted attention from Chinese audiences in U.S. diving team. friends about what she should do. Some Beijing. Ma left China to coach the Mexican div- asked her, “You are a Chinese heroine. “I do not feel any pressure from the audi- ing team six years ago. Her two Mexican If you coach China’s rival team, can you ence. Rather, they support every outstanding students won the bronze in the women’s stand up to the pressure from the Chinese athlete and applaud for them,” Qiao said of the synchronized 10 meters platform in Beijing, people?” Though usually a resolute person, audiences in Beijing. “I am impressed by the claiming the country’s first Olympic diving Lang could not make up her mind for several open-mindedness of the Chinese audiences.” medal in history. months. China’s famous Internet portal, sina. Qiao used to be a major player in China’s na- In addition to diving, there are a number com held an opinion poll on the subject, and tional gymnastics team in the 1980s. of Chinese table tennis coaches overseas. One the poll surprisingly showed that a majority Now Qiao is the coach of Shawn of the best known is Liu Guodong, head coach of voters supported Lang to coach the U.S. Johnson, the U.S. gymnast who pocketed a of the Singapore women’s table tennis team, team. The poll helped Lang to make her final gold in the balanced beam, as well as silvers whose younger brother is the incumbent head decision. in the floor individual, the all-around indi- coach of the Chinese men’s table tennis team. After the United States beat the Chinese vidual and the team event on her Olympic Over a short period, the Singapore women’s women’s volleyball team, few condemned debut in Beijing. Johnson said that Qiao was team has risen from settling for fifth or the sixth Lang as a traitor. “I feel that volleyball unites like a father and never lost his temper. n place in Asian competitions to claiming second place in Beijing, winning the first Olympic medal for Singapore. Although Chinese athletes in general are not strong in track and field, surprisingly, James Li, manager of the U.S. track and field team, was born and grew up in China. He was known as Li Li in China. Li is famous for coaching Bernard Lagat, the current 1,500 meters American record holder and two-time Olympic medalist. On surface, the Chinese-born coaches teaching abroad have made it more difficult for Chinese teams to win gold, even in events that China traditionally excels at. On the other hand, with stronger foreign con- tenders, events traditionally monopolized by China will become more exciting to watch. Homely welcome Chinese-born coaches working overseas were warmly welcomed in Beijing. Jenny Lang Ping, China’s volleyball heroine, received loud applause from Chinese audiences when the American women’s volleyball team she coached beat the Chinese team. A household name in China, Lang was nicknamed the “iron hammer.” In the 1980s, she served as the chief spiker of the China women’s national volleyball team and helped it to win three major international competitions, including the Olympics. Having taken five consecutive world titles in the 1980s, the team was legendary for their “spiritual legacy.” Lang later served as the team’s coach and led it to claim silver in the 1996 Olympics and at the 1998 world championships. At the Beijing Olympics, the U.S. team that Lang coaches beat the Chinese women’s team 3 to 2. The U.S. team won silver in Beijing, while the Chinese team won bronze. After the 2000 Sydney Games, the American Volleyball Coaches Association invited Lang to teach the U.S. national team, http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 29 BUSINESS Z hu xiang WAIT AND SEE: The Chinese property market, propped up by excessive liquidity, is expected to cool down in the second half of this year

Right on the Money Now that it has a handle on excessive liquidity, the central bank hints at a looser monetary policy

By LAN XINZHEN amounted to 44.3 trillion yuan ($6.49 tril- tuations in the capital market had forced a he report issued by People’s Bank of lion), an increase of 17.4 percent year on huge amount of money to flow back into the China on August 15 indicated rosy year, and was 0.7 percentage point lower banking system so that individual and corpo- results for the country’s monetary than the growth rate at the end of May. rate fixed deposits soared year on year. The policy during the second quarter of The outstanding balance of narrow money, central bank report showed that by the end T or M1, stood at 15.5 trillion yuan ($2.27 of June, the residents’ renminbi deposits had this year. The good news was that the central bank said the nation’s financial market trillion), an increase of 14.2 percent year risen 1.5 trillion yuan ($220 billion) year on was “moving smoothly toward the mac- on year, while the growth rate was 6.7 per- year, and corporate fixed deposits had grown roeconomic control direction” it had set. centage points lower than that at the end of 758 billion yuan ($111 billion). It also said China’s financial market had June last year. Cash in circulation, or M0, weathered the storms of the U.S. subprime stood at 3 trillion yuan ($439 billion) by The supple yuan mortgage crisis, serious domestic natural the end of June, an increase of 12.3 percent The Chinese currency has been appre- disasters, the appreciation of the renminbi year on year, while the growth rate was 2.3 ciating since the government introduced and inflation. percentage points lower than the same pe- a policy of exchange rate reform in July riod last year. 2005. At the end of June, the central par- Going up “The money supply growth rate is de- ity of the renminbi against the U.S. dollar Since the second half of 2006, China’s creasing, showing the excessive liquidity was 6.8591. The renminbi has appreci- financial market has been suffering from se- problem is now being relieving as is inflation ated 20.66 percent against the U.S. dollar, rious liquidity problems, because too much pressure,” said He Liping, a finance profes- depreciated 7.54 percent against the euro, money is in circulation. As a result, the sor at Beijing Normal University. and appreciated 13.33 percent against the consumer price index (CPI), a barometer for The central bank report gave two reasons Japanese yen since 2005. inflation, soared 8.7 percent in June year on for the money supply slowdown. First, the The central bank report said it had year, the second highest level in history since bank had stepped up its efforts to absorb ex- enhanced the flexibility of the renminbi ex- the figure has been calculated. cessive money. In the first half of this year, change rate policy by letting the currency Yet, money supply growth has been de- it withdrew 19.4 billion yuan ($2.84 billion) fluctuate in accordance with major world creasing. The central bank report indicated by raising the reserve requirement ratio and currencies. In the first half of this year, the that by the end of June, the outstand- interest rates. central parity of the renminbi against the U.S. ing balance of broad money, or M2, had The second reason was that big fluc- dollar once reached 6.8591, while the lowest

30 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com was 7.2996, and the biggest single day ren- risks for property developers,” He said. “It might be an indication that the strin- minbi gain was 0.35 percent. The renminbi gent monetary policy which was carried out appreciated on 74 trading days and depreci- Let’s get loose in the past two years will be loosened,” He ated on 45 during 120 trading days, showing Unlike previous central bank reports, the said, adding that a loosened monetary policy the full flexibility of the Chinese currency. second-quarter monetary report rarely used would stem from a reduction in inflation Zhou Maoqing, a research fellow at the pressure. Chinese Academy of Social Sciences, noted Despite these rosy prospects, domestic that the renminbi’s appreciation was within “It might be an indication enterprises looking for financing are still en- a reasonable range. He said the renminbi’s that the stringent monetary countering serious problems. A report issued flexibility must be kept at a stable speed in in July by the National Development and accordance with macroeconomic stability, policy which was carried Reform Commission said about two thirds of employment, performance and supervision out in the past two years small and medium-sized enterprises (SMEs) of the financial system, the sustainabil- will be loosened.” were suffering from financing problems ity of companies and foreign trade. In the He Liping, a finance professor at Beijing which restricted their development. It also meantime, the government had to take Normal University said 66,000 SMEs had shut down because of into account how the renminbi’s flexibility finance-related problems. would affect currencies in neighboring coun- In response, banks have started readjust- tries and regions and the world economy. the phrase “stringent monetary policy.” On ing loans for companies in trouble. In early Therefore, the government should not permit the contrary, it said the government would August, the central bank allowed commercial drastic fluctuations in the renminbi’s ex- maintain the stability and continuity of its banks to increase the loans issued to busi- change rate, Zhou said. current monetary policy. It also said the nesses by 5-10 percent to help agricultural central bank would mildly readjust macro- and SME development. Decreasing housing loans control policies according to international The overall balance of commercial hous- and domestic economic situations, so as to Stable and healthy ing loans stood at 5.2 trillion yuan ($761 achieve a balance between inflation control The central bank also said in its report billion) at the end of June, a 22.5- percent and fast and sound economic growth. that the economy would maintain its steady increase year on year. The growth and relatively fast growth rate CHEN QI rate was 2 percentage points in the second half of this year. lower than the end of June last Although it noted that many year, representing a decline for uncertainties could affect eco- the seventh consecutive month. nomic development, it affirmed Among the balance of proper- the economy had continued to ty loans, the total balance used for maintain its vigorous develop- real estate development was 1.95 ment momentum thanks to trillion yuan ($286 billion), up industrialization, urbanization, 17.7 percent year on year, while internationalization, industrial the growth rate was 8 percentage restructuring and growing con- points lower than the year earlier sumption. period. The report said domestic con- “Though the growth slowed sumption would maintain its fast down, the total money invested in growth, but it also noted that price property was still too high,” He surges could negatively affect it. said. The central bank vowed to rein Figures from the National in surging consumer prices and Bureau of Statistics showed 260 maintain steady growth in con- million square meters of housing sumption. worth of 1 trillion yuan ($146 He also said shrinking con- billion) were sold in the first half sumer demand and money supply, of this year, down 7.2 percent as well as the decreasing price and 3 percent, respectively, year of agricultural products were all on year. The sale of commercial conducive to bringing down con- floor space in Beijing, Sichuan sumer prices. and Guangdong dropped 47.1 The central bank’s report also percent, 22.7 percent and 20.3 warned about potential factors percent, respectively. that might push up prices. It said Housing prices stayed high, large-scale industrialization and even though price growth slowed. urbanization would cause short- In June, property price grew 8.2 ages of raw materials, which in percent year on year, while the turn would drive up prices of other growth rate was 3.1 percentage goods. It also said the rising costs points lower than in January. of labor would continue to be a Month-on-month home prices big problem for many companies. showed a negative increase in 16 SOS: The Chinese textile industry has suffered because of The central bank cautioned that cities in June. the global economic downturn and a stringent domestic inflation risk should not be ne- “Home price drop might pose monetary policy glected. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 31 BUSINESS FAN CHANGGUO sor at the University of International Business and Economics, said the new regulations have expanded the spectrum for investigations of potential monopolies, because they would prevent a major crash on the domestic market caused by an economic giant. Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said that the detailed regulations were very necessary in the new century, according to an article on the People’s Daily website. He cited the example of Australian FIGHTING MONOPOLIES: Experts believe that foreign company BHP Billiton Ltd.’s acquisition mergers and acquisitions by companies outside of Rio Tinto Group. Both are foreign com- China, such as Australia’s iron ore giant BHP Billiton’s panies registered outside of China, but they acquisition of Rio Tinto, should be subject to China’s exert enormous influence on the domestic anti-monopoly regulations, as the deal will have a iron ore market. Therefore, the acquisition great impact on China’s iron and steel production should be subject to China’s Anti-Monopoly Law, he said. “The whole world produces approximately 1 billion tons of iron and steel each Getting Down to year, and China produces nearly half of the amount,” Mei was quoted as saying. “BHP Billiton’s merger and acquisition in Australia must be restricted by the U.S. and the EU’s Business anti-monopoly laws. The company’s aggre- gated iron ore exports to the two economic Regulators issue detailed rules and regulations entities are even less than its exports to China alone.” for enforcing the nation’s new Anti-Monopoly Given the restrictions under U.S. and EU anti-monopoly laws, the deal also should be Law checked by Chinese anti-monopoly investi- gators, because it would have a great impact By TAN WEI companies each reported more than 400 mil- on China, Mei said. n August 4, the State Council offi- lion yuan ($58 million) of revenue in China It will be difficult for regulators to en- cially announced the first series of in the previous fiscal year; companies whose force the law’s application standards, Huang regulations for determining poten- combined revenues in China exceed 2 billion said. If the application standards are too low, tially monopolistic behaviors among yuan ($293 million); and activities involv- the companies would have to apply and seek O ing at least two entities each of which has companies and other business entities. It approval even for the smallest merger activ- is expected to issue further detailed guide- reported more than 400 million yuan ($58 ity. This would increase their operational lines for enforcing the country’s new Anti- million) of revenue in China in the last fiscal costs and not be conducive to their econo- Monopoly Law, which went into effect on year. Companies that fall into these catego- mies of scale. But if the standards are too August 1. ries but fail to apply for and receive approval high, a lot of monopolistic behaviors would According to the regulations, all “combi- from regulators will not be allowed to carry be easily neglected, Huang said. nations” must apply for and receive approval out their proposed combination activities. The new regulations stipulate that the from the government authorities in charge Before the Anti-Monopoly Law came into majority of domestic companies will not of anti-monopoly checks. Combinations effect, foreign companies only had to apply have to apply for permission for their merger include mergers and acquisitions, share or for approval from Chinese regulators if they and acquisition efforts. A National Bureau of asset sales that give one company control of were going to acquire or merge with a domes- Statistics report issued in 2006 showed only another, and deals on human resources and tic company. The previous regulation on the 3 percent of the country’s 440,893 compa- technology control in which one company takeover of domestic enterprises by foreign nies in the fields of manufacturing, mining, can gain control of or be able to impose de- investors, which was revised in 2006, was power, coal and gas, transportation, storage cisive influence over another firm through based on the concept of market occupation. and postal services, construction and retail- signing a contract or by other means. Among It required foreign entities or their relevant ing, had annual revenues of 400 million yuan these activities, mergers and acquisitions are companies to report to regulatory departments ($58 million) and would potentially qualify the most important and most common forms if they obtained more than 20 percent of any for anti-monopoly reviews. of combinations. given market in China and would eventually Nevertheless, the application standards The regulations set specific standards increase their market share to 25 percent. The described in the regulations are suitable about which business entities must apply for new regulations have replaced market oc- for the country’s current economic condi- and receive approval from the Ministry of cupation with revenue, because it is easier for tions, Huang said. He also noted that it is an Commerce. They include companies whose regulators to determine a company’s revenue internationally recognized practice that the joint global revenues exceeded 10 billion than its market share. majority of the business entities do not have yuan ($1.46 billion) in the last fiscal year; In an interview with Beijing Review, to apply for proposed mergers and acquisi- proposed deals in which at least two or more Huang Yong, an anti-monopoly law profes- tions. n

32 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com By TAN WEI not acting impartially or objec- n August 1, the day tively in promoting the services the Anti-Monopoly First Monopoly of PIATS, which is operated by Law (AML) came into CCIT. force, four Beijing- On April 17, the AQSIQ held O a press conference in Beijing, de- based companies filed the first Lawsuit lawsuit against the General claring that its Information Center Administration of Quality sold 30-percent stake in PIATS to Supervision, Inspection and A government agency is the first the CITIC Group. But the agency Quarantine (AQSIQ). The case to come under the new Anti- said it would continue to promote companies (Beijing Pan-Pass the tracking system’s electronic Information Technology Co. Monopoly Law supervision code, because PIATS Ltd., Orient Anti-Forgery was an important tool in estab- CHEN JIANLI Technology Co. Ltd., CSDN lishing an efficient supervision Alliance Information & mechanism for product quality Technology Co. Ltd. and and food security. Hengxin Digital Science and Competition for Technology Co. Ltd.), all engaged in digital anti-coun- survival terfeiting technologies, believe “From the beginning of the agency is an administrative 2005 to the end of 2007, the monopoly. AQSIQ made many efforts Two other anti-counter- to promote the services of feiting technology companies, TRACING PRODUCTS: An PIATS, but the result is far China Commerce Networks employee demonstrates how to away from its goal,” said (Shanghai) Co. Ltd. and Jiangsu check the electronic supervision Long Gang, Deputy General Nanda Digital Science and code on a beverage bottle using Manager of Beijing Pan-Pass Technology Co. Ltd., sued the a product identification and Information Technology, AQSIQ for the same reason authentification system developed in an interview with China on August 11. Two more anti- by CITIC Quality Supervision Business News. “It aimed to Information Technology Co. Ltd. counterfeiting technology firms, have several hundred thousand Shenzhen Benow Telecom company members, each of Co. Ltd. and Guiyang Gaoxin which would need to pay 600 Huameilong Technology Co. Ltd., filed a ordered to stop what they believe to be un- yuan ($87.72) in access fees every year.” lawsuit in the Beijing No.1 Intermediate lawful behavior. Long said both small and large companies are engaged in creating anti- People’s Court on August 17 for the same Behind CCIT reason. counterfeiting technologies. But for small Statements submitted by the com- Several public documents indicate that firms that have a limited number of clients, panies say AQSIQ has been promoting the AQSIQ and CCIT have closely linked the AQSIQ’s behavior could squeeze the the services of the China Product interests. Information from the Hong Kong space for them, and they could lose their cus- Identification, Authentification and Exchanges and Clearing Ltd. shows that tomers. And large companies could see their Tracking System (PIATS) operated by CCIT is mainly engaged in identification business volume shrink by 20-30 percent, a firm called China Credit Information and authentification services for products Long said. Technology Co. Ltd. (CCIT) since April made in China. Jointly registered by CITIC “Large companies may be able to re- 2005. They say the agency has unfairly 21CN Telecom Co. Ltd., the Information main standing, but the losses are still heavy,” promoted PIATS in its circulars and at Center of the AQSIQ and China Huaxin said Long. Hengxin Digital Science and various conferences. The AQSIQ has Telecom Economic Development Center, Technology had to cut its headcount to eight required the companies to pay certain CCIT has registered capital of 60 million employees from more than 70. Beijing Pan- service charges to PIATS and print super- yuan ($8.77 million). CITIC 21CN Co. Pass Information Technology, once one vision codes on their product packages, Ltd., a Hong Kong-listed company, owns of the top firms in the industry, has seen and stipulated that products made by com- 100 percent of the subsidiary CITIC 21CN its business volume drop dramatically, he panies in nine industries, such as home Telecom. added. appliances, food and cosmetics, cannot Fifty percent of CCIT’ shares are “Over the past three years, we be sold without the supervision codes and owned by CITIC 21CN Telecom, 30 companies in the anti-counterfeiting tech- access to PIATS. Meanwhile, the AQSIQ percent by the Information Center of the nology business have been talking with also has linked the promotion of PIATS AQSIQ and 20 percent by China Huaxin the AQSIQ, but it just takes a perfunctory with appraisals of famous Chinese brands Telecommunications. Of the total registered attitude and speeds up its compulsory and products that are exempt from product capital of 60 million yuan, the 18 million promotion of PIATS,” said Guo Sheng, inspections. yuan ($2.63 million) of cash invested by the Deputy General Manager of Hengxin The companies that filed the three law- Information Center of the AQSIQ was paid Digital Science and Technology, in an suits argue that the AQSIQ has turned CCIT by CITIC 21CN without interest, while the article in China Business News. “We feel into a monopoly because it is engaged in the Information Center paid back the investment that such a marathon will not have a result, same business as they are. The companies in the joint venture along with dividends. so we decided in April this year to file the say they are encountering unfair competi- The companies that filed the lawsuits argue lawsuit on the first effective day of the tion and request the government agency be that as a shareholder of CCIT, the AQSIQ is AML.” n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 33 BUSINESS

which the government decreased the corporate tax rate to 25 percent from 33 percent, Golden Prospects also bolstered bank profits. Analysts say the Chinese banks could remain unscathed by the subprime shockwaves Chinese banks come out on top by remaining largely because they have had little exposure virtually untouched by the global financial to overseas markets relative to their sizes and their lack of sophisticated credit instruments. downturn ICBC, for instance, has a market capital- ization of $235 billion, but has limited its exposure to the subprime crisis. It said it held By HU YUE the first half of the year in line with forecasts. bonds related to Fannie Mae and Freddie hile Chinese athletes were busy Widening interest margins and growth in the Mac, the ailing U.S. housing mortgage agen- winning competitions at the bank’s fee income pushed up profits, the com- cies, totaling $2.7 billion, or equivalent to Beijing Olympics, the country’s pany said. Jiang Jianqing, Chairman of ICBC, only 0.2 percent of its total assets. state-owned banks were enjoying said at a recent press conference that the bank Analysts also say Chinese banks have W had a strong performance because China’s their own gold-medal performances in the been largely unaffected by the subprime global financial sector. vibrant economy boosted the overall banking mortgage crisis, because the bulk of their According to Bloomberg, Chinese banks sector. CCB also saw its first-half net profit revenues come from domestic deposits are in three of the top seven positions among grow by a whopping 71.34 percent to more than and loans. But Vincent Cheng, Chairman the world’s largest financial companies in 58 billion yuan ($8.5billion). of HSBC, told China Business News that terms of market value. The Industrial and China’s banking upswing started earlier banks, overly dependent on a single source Commercial Bank of China Ltd. (ICBC), this decade when the government began re- of income, are vulnerable to outside risks. China Construction Bank Corp. (CCB) and structuring drives to bailout low-quality state- Kevin Watts, President of Merrill Lynch the Bank of China Ltd. ranked number one, owned banks. The government pumped in huge & Co., also echoed Zheng’s opinion, saying two and seven, respectively. Only two years amounts of money to lower their bad loan ratios that Chinese banks should diversify their in- ago the list was still dominated by Citigroup and invited foreign strategic investors. The vestment channels to hedge against risks while Inc. and Bank of America Corp. of the banks then went public on Hong Kong’s H-share at the same time cement their overseas earning United States, and UBS AG of Europe. market and the domestic A-share market. The capacities to compete with foreign peers. Analysts say the Western giants, mired creation of modern commercial banks in China Domestic banks expect to see their in financial straits, have been falling down is expected to breathe new life into the develop- growth taper off when the Chinese economy the ranks because massive write-downs and ment of the country’s banking system. starts to slow down. In the meantime, the loan losses have caused their share prices to Analysts say the Chinese banks also government has tightened its quotas on loans plummet. London-based HSBC Group, the have benefited from government controls on to fight off inflation; but this move could end largest non-Chinese bank, which reported the interest rates that guarantee income through up squeezing the banks’ margins. largest profits of any bank last year, recently large spreads between deposits and lending Besides this, home buyers in some cities said its first-half net profit fell 29 percent to rates. For example, ICBC’s first-half net could default on their mortgage payments if $7.72 billion from the same period in 2007. interest income rose 28.9 percent to 131.8 the market values of their homes shrink to By sharp contrast, the Chinese banks have billion yuan ($19.3 billion), which accounted amounts that are less than their total mort- fared much better and remained largely immune for about 50 percent of its total revenue. Its gage payments as a result of dropping home to the global financial downturn. ICBC said in net interest margin was 3.01 percent in the prices. As a result, the banks could see an in- its interim report that its net profit jumped 56.75 first half, compared with 2.8 percent in 2007. crease in their non-performing loans, which percent to 64.9 billion yuan ($9.5 billion) in Besides this, another reform this year, in would hurt their asset quality, analysts said.

B y ZHAO YINGQUAN Moreover, individual savers, put off by the country’s bearish stock market, may prefer to keep their money in banks for longer terms to receive higher interests. This also would cast a shadow over the banks’ profit prospects, analysts said. But Chinese bankers remain optimistic about their performance for the rest of the year. China Securities Co. Ltd. said in a report that domestic commercial banks could still retain their profit growth with the help of domestic credit businesses. ICBC Chairman Jiang said that the bank would keep optimizing its asset and income structures and tap other fields such as securities and insurance, which would help it maintain its growth momentum for profit. CCB also projected in its interim report that its profit in the second half would con- ROAD TO RICHES: China’s state-owned banks tinue to grow and pledged to improve its have increased their market values thanks performance by increasing share incentives to their booming domestic businesses for its staff. n

34 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com Banking on the Big Apple The country’s largest lender receives permission to set up a branch in New York

By HU YUE acute need for fresh sources of funding, said est rate differences,” said Jiang Jianqing, fter nearly 10 years of waiting, the Guo Tianyong, Director of the China Banking Chairman of ICBC, in an article in China Industrial and Commercial Bank of Research Center at the Central University Securities Journal. ICBC plans to raise its China (ICBC) received permission of Finance and Economics, in an article in overseas business to account for around 10 from the U.S. Federal Reserve (Fed) National Business Daily. percent of its total assets and profit from the A The approval marks an important mile- current 3-4 percent, Jiang said. on August 5 to upgrade its office in New York to a branch. stone in the process of globalization for At the end of 2007, the bank’s overseas net- ICBC had set up a representative of- ICBC, said Wu Bin, Chief Representative of work had expanded to 13 countries and regions, fice in New York in 1997, but it was barred the ICBC New York Representative Office, with 112 overseas branches. It also went on an from providing banking services and could in the article. It would accelerate the bank’s overseas investment spree, purchasing a 20-per- only act as a middleman between the bank’s global operating strategy and add to the cent stake in the Standard Bank of South Africa headquarters and clients in the United States. competitiveness and influence of China’s Ltd. for $5.46 billion last year. It was the biggest In accordance with the Fed stipulations, financial industry in the world, he said. acquisition by a Chinese bank. the branch will engage primarily in wholesale Analysts say the bank’s growing profits ICBC’s past acquisition efforts have fo- deposit-taking, lending, trade finance and other and ability to manage risks also paved way for cused on Africa and Southeast Asia, where banking services. Although it has yet to be its foray into the United States. The bank has operation costs are lower. The proposed branch determined when ICBC can set up the branch, undergone an astounding transformation in the in New York could help the bank make ac- it will become the Chinese bank’s business last four years, culminating in October 2006 quisitions in the United States by offering platform in the United States, fuelling trade when it raised $22 billion in the world’s larg- information about potential takeover targets and

transactions between the two countries. ZHAO YINGQUAN Prior to this, the Fed had issued autho- BANKING ABROAD: rized banking licenses to the Bank of China The opening of in 1982, the Bank of Communications in ICBC’s branch in 1989, and China Merchants Bank in 2007. New York is expected ICBC’s journey to the U.S. financial to lead the bank’s expansion in the market has been a bumpy one. In the past, the United States Fed had withheld its approval of a banking license for ICBC because of concerns over money laundering and the financial security of the United States. ICBC is one of the hold- ings of China’s sovereign wealth fund, China Investment Corp., which is the parent company of the Central Huijin Investment Co. Ltd., the bank’s largest shareholder. But the Fed finally softened its stance during the fourth round of the China-U.S. Strategic Economic Dialogue in Washington in mid-June, because China had introduced a comprehensive anti-money laundering law and pledged to increase the transparency of its sovereign wealth fund. The Fed issued a public statement, say- est initial public offering after completing its adding to its bargaining power, Guo said. ing it was satisfied that Chinese regulators, shareholding restructuring program. The Fed’s order prohibiting the New York including the China Banking Regulatory The bank had cut its bad loan ratio in branch from engaging in retail banking services Commission, were actively working to put in half to 2.41 percent from 2005 to the end would not hurt ICBC’s prospects, Guo said. The place measures for the consolidated supervi- of this June. It also had more than doubled Chinese companies that invest in the United sion of ICBC and controls and procedures its net profit to 83.7 billion yuan ($12.2 bil- States and the U.S. companies that have trade for the proposed branch to ensure its compli- lion) at the end of 2007 and at the same time exchanges with China would comprise the bulk ance with U.S. law. streamlined its portfolio. This year the bank of the branch’s customers, and their business “In addition, ICBC has stated that it will has defied the sizzling U.S. subprime melt- would be buoyant enough to shore up ICBC’s apply strict anti-money laundering policies and down by recording a dizzying 57-percent development in the United States, he said. procedures at the branch consistent with the increase in its first-half net profit thanks to its But Guo also cautioned that the bank U.S. law and regulations,” the statement said. booming domestic credit business. must keep a vigilant eye on exchange risks, The U.S. subprime loan debacle also But the bank is not resting on its laurels. because the New York branch would still helped force open the door for ICBC, because “We cannot rely only on profits at home rely on its domestic headquarters to replenish foreign companies in financial distress have an that leverage the deposit and loan inter- its capital reserve. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 35 BUSINESS

80 billion yuan ($11.76 billion). Despite the bearing stock market, inves- At Full Throttle tors have put faith in CSR’s listing. Unlike other large dual offerings, CSR first issued 3 billion A-share stocks at 2.18 yuan ($0.32) China’s largest train maker seeks to lower its per share to raise 6.54 billion yuan ($962 million). Three days later it issued 1.6 billion high liability-asset ratio through a dual listing in shares at HK$2.6 ($0.33) per share on the Shanghai and Hong Kong Hong Kong exchange to raise HK$4.16 billion ($528 million). The dual listing would help CSR to re- By TAN WEI with other global stock markets, and China’s duce its liability-asset ratio from 80 percent hina’s largest train maker debuted IPOs (initial public offering) have slowed to at the end of March to 60 percent, said Zhao on Shanghai and Hong Kong stock a trickle. IPOs in the A-share market in the Renqiang, CSR’s Secretary of the Board, in exchanges in August—the country’s first half of 2008 raised less than 70 percent of a Xinhua News Agency report. first domestic initial public offering the amount they did during the same period CSR said 559 institution investors par- C last year. Of this year’s IPOs, only four issued ticipated in the subscription of the off-line (IPO) in the second half of the year. China South Locomotive & Rolling more than 100 million shares and raised a share allotment worth a total of 357.1 billion Stock Corp. Ltd. (CSR) raised $1.5 billion total of 64.32 billion yuan ($9.46 billion). The yuan ($52.5 billion). Individual investors during IPOs on the Shanghai exchange on number of IPOs and the amount of funds they also poured 2.26 trillion yuan ($332.35 bil- August 18 and the Hong Kong exchange on raised decreased by 64 percent and 49 percent, lion) into the company’s shares, with 1.9 August 21. respectively, year on year. trillion yuan ($279.4 billion) from online CSR’s dual listing drew wide media cov- subscriptions for the offerings. erage in part because the company is China’s Riding high CSR’s successful IPO not only reflects largest manufacturer of rail transportation CSR expects a hefty boost in revenue the promising future of the industry, but equipment and the only major competitor of as the government invests more money in also its comparatively low price-to-earnings China North Locomotive and Rolling Stock railway transportation infrastructure construc- (P/E) ratio, said Zhang Haidong, an analyst Industry (Group) Corp., the other domestic tion over the next decade to meet the growing at Bohai Securities Co. Ltd. CSR had an IPO rail equipment giant. demands for urban rail transportation facilities. P/E ratio of 18.59 based on the diluted earn- “CSR enjoys comparative advantages According to the government’s 11th Five-Year ings per share of all its shares in the A-share with a market share of more than 55 percent Plan for the country’s economic development and H-share markets, making it “very tempt- in the emerging multiple-unit train and urban between 2006 and 2010, the investment bud- ing for investors,” he said. rail train business, though in the traditional get for railway infrastructure construction will Data from the Shanghai Stock Exchange locomotive, passenger car and truck business reach 1.25 trillion yuan ($183.8 billion). Li show that some of the 21 large IPOs that the company has a market share of 50 per- said he expects the government to spend 240 have issued more than 200 million shares cent,” Li Chao, an analyst at China Jianyin billion yuan ($35.3 billion) on railway vehicle since early 2007 have had P/E ratios that Investment Securities Co. Ltd. wrote in a purchases from 2008 to 2010. are considerably higher than CSR’s. Their company report. According to CSR’s last annual report, average IPO P/E ratio was 37.699. Of these CSR’s dual listing also was significant be- the company had revenue of 27.4 billion companies, China COSCO Holding Co. Ltd. cause it came at a time when mainland stock yuan ($4 billion). The value of its orders as had the highest P/E ratio of 98.67. Ping An markets have had bearish performances along of mid-July this year had already exceeded Insurance (Group) Co. of China Ltd. had the second highest at 76.18. XINHUA Jinduicheng Molybdenum Co. Ltd. and Chongqing Iron & Steel Co. Ltd. had comparatively low IPO P/E ratios of 17.47 and 20.28, respectively. CSR’s shares also had a fairly good performance in their first week of trading. On the first trading day, they closed at 3.45 yuan ($0.51), an increase of 58.26 percent. This was much higher than the average growth rate of stocks listed this year in Shanghai, or 47.85 percent, on the first day of trading. n

POISED FOR SUCCESS: China South Locomotive & Rolling Stock Corp., the country’s largest train maker, is a leader in the multiple-unit and urban rail train business

36 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com COMPANY PROFILE COURTESY BY ZHANG JINGWEI By LU CHENG and donate the money he saved to the et Airways (India) Ltd., earthquake-stricken areas in Sichuan India’s second largest Province. Jet Airways also donated internatonal airline estab- 200,000 yuan ($29,412) through the lished in 1993, started Consulate General of the Republic J of India in Shanghai to Sichuan. The its inaugural daily Mumbai- Shanghai-San Francisco flight company’s headquarters in Mumbai on June 14, becoming the first also accepted Zhang’s advice to private Indian carrier to operate donate 1 percent of ticket sales for to China. flights from June 14 to September China became India’s largest 30 to Sichuan, as well as the pro- trade partner last year with bilat- ceeds from an online auction for 10 eral trade volume reaching $38.7 business-class tickets. billion, a 32-fold increase from These moves helped Jet Airways that in 1995 or an annual growth receive very positive media cover- of 34 percent. The passenger age. Zhang had been advised to traffic volume between China offer discount airfares on the flights and India was about 600,000 to gain recognition and expand the while there were only 22 flights company’s market share as soon as shuttling between the two coun- possible. But he declined, because he tries every week last year—too THE RIGHT STUFF: Zhang Jingwei, Jet Airways’ General believed the discounts would have few to meet the demands of busi- Manager in China, has suceessfully marketed the Indian carrier’s had a negative effect on the airline’s ness travelers, tourists and other new flight from Mumbai to San Francisco via Shanghai high-end targeted brand image. passengers. After further discussions with his Jet Airways submitted an marketing team, they decided to offer application to start the new a limited number of discount tickets route with the Civil Aviation A Smooth for individual flights in the hope that Administration of China (CAAC) more passengers would enjoy the in early 2007. Although the two company’s high-quality service at countries earlier had signed a economical prices without affecting memorandum on Sino-Indian Takeoff its brand image. civil aviation transportation in After having first taste of Jet April 2005, the CAAC did not Jet Airways introduces a new Airways’s service, clients who val- approve the application un- ue quality flight services are very til Zhang Jingwei became Jet flight from Mumbai to San likely to fly again on Jet Airways Airways’ General Manager in Francisco via Shanghai in hopes even without airfare discounts, China in January 2008. Zhang said. The airline also of- of becoming one of the top five fered travel agencies, exhibition First stop—Shanghai international airlines in 2012 companies and news agencies dis- Upon taking his post, Zhang count tickets to increase its “word- of-month” recommendations discovered there was an unsettled Marketing breakthrough issue regarding “fifth freedom traffic rights” within those industries and promote group in the Sino-Indian 2005 memorandum. This After the introduction of the new flight sales. So far, flights for the new route have refers to the rights of an airline from one route, Zhang faced a tougher challenge in se- been fully booked during weekends, and country to land in a second country and pick curing a desired market share from the many reservations for weekday flights have been more passengers before flying to a third rivals that were already operating flights growing steadily, Zhang said. from Shanghai to San Francisco. country. Future plans “There were difficulties for us, be- “Let the brand play on the emotional cause no Chinese airline had ever launched connection between an enterprise and the The International Air Transport direct flights between Shanghai and San clients, which is where the value of a brand Association has forecast that Asia expects to Francisco,” said Zhang. lies,” Zhang said, stressing the importance of see a 300 million increase in the number of After much communication and coor- brand publicity in marketing. “We will con- air passengers during 2007-2011, of which dination, the civil aviation administrations vey through varied channels the brand image Shanghai could account for 20 percent. The of both sides met in New Delhi on March of Jet Airways to high-end clients who value passenger volume of air carriers in Shanghai 19 to revise the 2005 memorandum. They flight quality.” could exceed 60 million this year, Zhang said. reached an agreement to let Jet Airways As one of these measures, Zhang posted ad- The goal of Jet Airways is to become start the Mumbai-Shanghai-San Francisco vertisements for the flight service on trains that one of the top five international airlines in flights and signed a new memorandum the run along Shanghai’s east-west subway Line the world by 2010. Zhang said the company next day. 2, which connects to the terminal for the high- plans to introduce more services for the Jet Airways submitted another applica- speed, magnetically levitated train that runs Chinese market in the near future. tion to the CAAC at the end of March and to and from Shanghai’s Pudong International “The flights between India and China received approval on April 16, becoming Airport. every week will increase to more than 100 the first foreign airline to be granted “fifth Zhang had planned an impressive cer- from 22 at present,” Zhang said. “I don’t freedom traffic rights” by China to operate emony to introduce the new service, but later think it will take a long time for us to achieve flights from China to the United States. decided to pare it down to a news conference that goal.” n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 37 BUSINESS

TO THE POINT: China’s state-owned enterprises are focusing on the stalwarts of the domestic economy, including the oil, telecommunications and power industries. Although auto sales have seen a period of sluggish demand, luxury car imports have been increasing. Steel mills will drop their prices in the fourth quarter because of excessive supply. China’s stock markets, once taking the global lead in share price increases, have become the worst performing markets in the world. Along with the declining stock markets, mainland-listed companies also saw their profits drop in the first half of this year. By LIU YUNYUN

MARKET WATCH

SOE Wrap-up Auto Import Boom prices in the fourth quarter of the year. Baoshan Iron & Steel Co. Ltd. (Baosteel), State-owned enterprises (SOEs) have Major auto producers increasingly have the country’s largest steel mill, said it would always been a main gauge of China’s eco- been turning to the Chinese market in light cut prices starting in October. Other mills are nomic development trend. of the enormous losses they have suffered as expected to follow. The State-owned Assets Supervision and a result of the global economic slump. Baosteel said on August 25 that it would Administration Commission (SASAC) sum- In the first seven months, China im- slash the price of its cold-rolled steel prod- marized the current situation of the country’s ported approximately 48 percent more motor ucts by 300 yuan ($44) per ton. It also will SOEs at a recent conference. It said the vehicles year on year for a total of 247,000 cut prices for galvanized sheet products by country has 149 centrally administered cars valued at $9.17 billion, according to the 100 yuan ($15) per ton, hot-rolled pickled SOEs, down from 196 in 2003. The number General Administration of Customs. steel products by 300 yuan ($44), and gal- is expected to shrink to between 80 and 100 The government agency said most of vanized fingerprint-resistant sheet products by 2010 through mergers and restructurings. the imports were luxury cars. It also noted by 400 yuan ($59). Despite the price cuts, These enterprises have been concentrating on growing imports of sport utility vehicles and Baosteel’s prices will remain higher than critical industries such as oil, petrochemicals, high-emission vehicles, whose sales in the those of other mills, because its products are power, national defense, telecommunica- United States deteriorated because of soaring of higher quality. tions, transportation, and mining, which oil prices in the first half of this year. This Analysts said the country’s excessive comprise about 83 percent of the total assets was part of the reason why Ford Motor Co., steel supply and weak demand prompted the of the centrally administered SOEs. one of the big three U.S. auto manufacturers, price cuts. Chen Kexin, an analyst at Bsteel. From 2002 to 2007, the centrally ad- posted a loss of $8.7 billion in the second com.cn, an online steel industry consultancy, ministered SOEs saw their assets rise by 1.5 quarter of this year. said in a report that steel makers would trillion yuan ($219 billion). Their sales rose A report issued by the agency said slug- likely keep their prices down because major by 1.3 trillion yuan ($190 billion) and profits gish international auto demand prompted steel-consuming industries, such as build- by 150 billion yuan ($22 billion) each year. producers to shift their focus to China, and ing construction and auto manufacturing, Almost two thirds of the centrally that major producers increased their supplies showed signs of a slowdown. administered SOEs and their subsidiaries of new models to the Chinese market. Chen said the global economic downturn have become shareholding companies fol- Japan, the EU, South Korea and the also had led to shrinking steel demand on the lowing the country’s rapid restructuring United States were the top four sources for international market, which has forced do- efforts. A number of large SOEs have gone China’s auto imports. mestic producers to lower their prices. China public on both domestic and foreign stock has been a net steel exporter since 2006. exchanges. Of about 1,500 listed companies on China’s A-share market, more than Steel Prices Down 1,100 are wholly or partly state-owned, ac- After three quarters of price increases, Stock Market Woes cording to the SASAC. domestic steel manufacturers will lower Investors dumped shares on the main-

38 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com ZHANG MENG Numbers of the Week

$78 billion The government collected approximately 532 billion yuan ($78 billion) in taxes nationwide in July, an increase of 13.8 percent compared with the same month last year. $28.65 billion In the first seven months, China reaped total revenue of $28.65 billion in overseas project contracting, up nearly 50 percent from the year-earlier period.

land stock markets, which have fallen for 10 cies and losses from stock trading. Tourism in Poor consecutive months, making the country’s Listed companies’ profits grew less than domestic A-share markets the worst-per- half as fast in the first half of 2008 as they Regions forming ones in the world. did during the same period a year earlier, The government plans to invest heav- Globally, U.S. markets have picked up according to a report in Shanghai Securities ily in exploring the tourism potential of momentum as crude oil prices have started News on August 26. It said as of August 25, some of the country’s less-developed re- falling. Crude oil futures climbed to a record 1,178 listed companies, or 73 percent of the gions in a bid to bridge the rich-poor gap high of $147 a barrel in July, but have been total, had released their preliminary results between thriving regions and underdevel- dropping ever since. for the first half of the year. These reports oped ones. Meanwhile, mainland markets have showed the companies earned a total of 323 The National Development and continued to fall to a 20-month low with the billion yuan ($47 billion), up 31 percent year Reform Commission, along with the on year. The year-earlier growth rate was 70 benchmark Shanghai Composite Index dan- National Tourism Administration and four percent. gling at around 2,300 points. The index had other Central Government departments, The companies’ revenues grew 28 hit a record high of 6,124 points on October issued a joint statement on August 27, say- percent to 3 trillion yuan ($440 billion), 16, 2007, but plunged to 2,284 points this ing they would take a number of measures August 19. but operating cash flow contracted sharply, to boost the nation’s tourism market with a Analysts cited several reasons for falling 60 percent to 413 billion yuan ($60 special focus on the less-developed west- the heavy losses, including greater sell- billion). ern and central parts of the country and ing pressure caused by a huge number of The newspaper report said profits had the old industrial bases in the northeastern non-tradable shares being made tradable, been affected by a global economic slow- provinces. weakening market sentiment, the outflow of down and a weak domestic stock market, hot money and stricter government supervi- while last year’s results had been boosted The statement said the government is sion of the financial sector. by a bullish equity market. The stock mar- considering the introduction of tax incen- The average share price of compa- ket has declined by more than half since it tives and subsidized micro-credit loans for nies listed on mainland stock markets has peaked last fall. companies to develop tourism services and dropped to around 8.2 yuan ($1.2), down For instance, PetroChina Co. Ltd., the facilities and train professionals. from the peak price of 20 yuan ($3) in July country’s largest oil producer, posted a Xinhua News Agency reported that do- 2007. 34.5-percent profit decline in the first half mestic tourists spent 778 billion yuan ($114 compared with the year-earlier period. billion) last year, up 47 percent from 2005. Although more than 20 percent of listed Spending by urban residents increased by Shrinking Profits companies have yet to release their half-year 51.8 percent to 555 billion yuan ($81 bil- China’s listed companies saw their prof- results, analysts said overall corporate profit lion), while spending by rural residents rose its slow down in the first half of this year, growth would likely fall between 20 percent 36.2 percent to 222 billion yuan ($33 bil- largely because of state macro-control poli- and 30 percent. lion). n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 39 LIFESTYLE/MUSIC Reinventing Culture Singer puts a modern musical face on ancient cultural classics

By ZAN JIFANG Dynasty (1046-771 B.C.). But Ha hopes to want to sing about,” said Ha. n traditional loose sleeved Chinese develop a new music style based on this cul- She said she is a quiet person and is not costume and a hairstyle straight from tural heritage. used to the competitive side of fame and the ancient China, a slim female singer “Before this song, I spent two years im- pressures of the entertainment industry. stepped onto the stage, singing a wistful mersing myself in the Chinese classics,” But how does she define post-classical I said Ha. According to her, when working on music? She said it is the combination of clas- song called Li. “Li is respect, Li is elegance, Li is purity, Li is tranquility; Li comes from the lyrics of the song, she transformed her sic and modern, with post-modern elements a smile, Li comes from love, Li comes from understanding of Li into simple and modern thrown in. The essence of post-classical the heart,” she sings, accompanied by a language. music should come from the roots of the melody of haunting court music. The singer “After studying traditional classics, I original music, but that does not mean mere is appearing on CCTV, China’s National gradually found that the long and rich culture imitation. TV station, in a music program aired during of China is a great spiritual treasure for us “Let’s put it in this way,” Ha said, “I the 2008 Olympic Games. to absorb and I finally realized what I really want to make modern music that contains The song was specially composed for the feeling of ancient elegance and allows the Beijing Olympics and is among top 30 people to use their imagination.” songs selected from global entries. It’s sub- New innovative album sequent popularity is based on the concept of Li being an important part of traditional After Li, she completed an album in Chinese philosophy. It was a system of post-classical music style, planned for release institutions, social conventions and ethic early next year. The lyrics of the 11 songs on standards in ancient China and the core of the album are all chosen by Ha from China’s Confucian teachings, often mentioned in his classic poems or other literary works, includ- classical work The Analects of Confucius. ing Shi Jing, or The Book of Songs, China’s oldest poetry collection that is said to be Post-classical music compiled by Confucius. The singer of the song is Ha Hui, The music of the album is composed by 30, from an art troupe of the Chinese Lin Hai, a gifted musician in China, who is Air Force. Besides singing, she also well-known for his capability in blending helped write the lyrics. The song is West and East, traditional and modern part of a post-classical music road music elements. Ha admires the artistic Ha is taking to further her career. talent of Lin. She was especially im- Chinese classical music pressed by one of Lin’s recent albums normally refers to the ancient of pipa, (lute) music. Chinese court music, or cere- “He perfectly combines the monial music, which started traditional Chinese instrument in the early period pipa and the modern style, and of the West the effect is amazing,” said Zhou Ha. The sample of the new

IMMERSED IN HISTORY: One of Ha Hui’s hobbies is to play Guqin, an ancient musical instrument

40 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com album of Ha has impressed all that have lis- tened to it by its unique mergence between the ancient and the modern and between the Chinese and the West. Crying Ospreys is the lead song of the album. It is a poem from Shi Jing. The com- poser uses a five-beat rhythm and employs various Chinese and foreign instruments, making the centuries-old poem sound more modern and listenable. “The music has mobilized all my music cells and passion and it completely represents what is post-classic music in my heart,” said Ha. The song Green Jade Cup on this album is more creative. The lyrics are from one of the most famous works of Xin Qiji (1140-1207), one of China’s greatest poets in the Southern Song Dynasty (1127-1279). The producer uses a humorous and fun way to present it. There is a perfect combination of different oriental and Western instruments, such as piano, electric guitar, flute and pipa, which conveys a strong yuppie style. “It is a bold creation and a try to present the poem of Xin in this way. The heroic style of the poem and the graceful voice of the singer combined perfectly,” said a blogger in a message left on Ha’s website. Spreading culture Talking about this album, Ha seemed very excited. “This album is a turning point of my art career,” she said, “I have put all my passion and inspiration into it, hoping to realize my dream and also present the essence of China’s ancient culture through my music.” Her efforts have already been noticed. The new album of pot-classical music has been chosen by the Chinese Foreign Ministry as a gift to foreign guests. Currently, Ha has her own studio called Lian (Lotus), which represents nobility, elegance and purity in Chinese culture. Located in a small hutong near the well-known Houhai area in north Beijing, the studio is decorated like a study in ancient China. In her spare time Ha plays guqin, an ancient Chinese instrument that has a history of more than 3,000 years, practices cal- ligraphy, reads classical literary works in her studio. Now she is learning English and German, hoping to know more about the history and culture of other countries and understand the cultural differences between China and the West. Her new album will also be distributed overseas and she hopes to spread the ancient Chinese classics to new ears worldwide, helping more people understand China and its culture. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 41 LIFESTYLE/GLASSWARE

the organizer of the exhibition in the Beijing Olympic Green. Going for Glass There is a long story behind LiuliGongFang. In 1987, Yang Hui-shan and Chang Yi, award-winning Taiwan actors, put A forgotten royal craft is making a colorful their film careers on hold to learn an art of making liuli, which at that time was only mas- transparent return tered by the French. The skill is called pate- de-verre production method. Hoping that this By FENG JIANHUA However, things are changing. Entering skill could help Chinese express their own orth of the Bird’s Nest in the Beijing the Taiwan Olympic House of Fortune, the thoughts and feelings through liuli artifacts, Olympic Green, there is an exhibi- liuli products displayed are very impressive. they founded LiuliGongFang studio. tion area called House of Fortune. Under the bright lights the items are crystal- With little expertise, over the next few It displays the intangible cultural like glittering and transparent. Crowds years most of their experiments failed. N thronged to have a look. heritage of China and colorful folk cultures Originally, they thought that liuli crafts- of every province of the mainland, Hong According to Yang Hong, an exhibitor, manship originated from the West and they Kong, Macao and Taiwan. their exhibition drew an average of 8,000 could only learn the art through reading Each impressive display covers about people daily from August 9. foreign books until they found that Chinese 100 square meters and among them the “In the past, few people knew about were making liuli in the Han Dynasty (206 Taiwan Olympic House of Fortune, featuring liuli, but now we have raised awareness of B.C.-A.D. 220). Yang Hui-shan, Chang and glass works, stands out as something special. the products and how they are made,” Yang their colleagues turned to learn from Chinese The glass items shown in the stand are said. historical documents and since then they called liuli, the name people gave glass in In ancient China it was seen as one of have made great improvements. ancient China. Today the word liuli is used the five famous materials (the other four Today, the products of LiuliGongFang to describe what we know as glass art, or the were gold/silver, jade, porcelain and bronze). are not limited to the artifacts of ancient adorn- colored glass products that are fired by add- However, because of its fragility and the ments and are gradually expanding to products ing metal oxides. The production process of prejudice toward liuli (people believe that liuli for daily life. Yang Hong said that the products liuli is very complicated and needs 10 steps, is just beautiful glass), it was rarely collected that imitate ancient adornments are pure art most of which are done by hand. when compared with the other four materi- creations, but the daily life wares are for general als. Yang said that Chinese people normally consumption. In recent years LiuliGongFang Long history prefer jade, believing that it is a lucky material has made considerable profit and has opened As an old craft, liuli-making has a his- and a medium between man and nature. branches on the mainland of China. tory of more than 2,000 years in China. But But now it’s different. The art value of In March 2007, LiuliGongFang held a in the past liuli products were exclusively liuli has gradually been noticed by more and liuli exhibition at the Leo Kaplan Modern used by royal families. In the middle period more people in China, and its market poten- in New York, and one of their creations was of the 14th century, this skill almost became tial is growing. Now, many liuli firms have collected by the Corning Museum of Glass extinct. At that time, the liuli products were been founded in China, though most of them of the United States. To LiuliGongFang, this not very transparent. are of a small scale and the products are was a milestone and showed that the world To most Chinese, the word liuli will only made by unskilled craftsmen. has recognized their efforts and quality. remind people of the colorful glazed tiles Taiwan liuli “Reviving the art of liuli is to express on the roof of the Forbidden City and these our feelings to life through glass works and products are still rarely seen in houses of or- One of the most successful liuli busi- to study the history and culture of our nation dinary Chinese people. nesses is LiuliGongFang in Taiwan, which is once again,” said Yang Hong. n

42 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com HOTEL INFORMATION

China World Hotel Beijing different sports were displayed throughout floor of Shangri-La’s Kerry Center Hotel in The U.S.-based Wine Spectator the lobby welcoming guests from various Beijing were decked in golden glory for magazine’s Award of countries. Greeting banners with Olympic Adidas’ star-spangled gala ball and party. Excellence has been slogans such as “One World One Dream” More than 400 dinner guests and 600 post- given to Aria at the and “Beijing 2008” speak of the hotel’s dinner party guests attended, including China World Hotel avid expectations for this great event. It is Romanian gymnast, Nadia Comaneci; Beijing’s signature estimated that the hotel has invested more Australian swimmer, Ian Thorpe; modern European then 50,000 Yuan in its Olympic decora- Chinese diver, Gao Min; actress, Maggie restaurant, for the tions. Cheung; and legendary actor, Jet Li. second consecutive year. Aria is one of Park Plaza Beijing Wangfujing Loong Plaza Hotel and Resort only eight restaurants Appoints Eric Kee as General On August 8, a grand “collective on China’s mainland Manager wedding” ceremony was held in the to receive the Carlson Hotels splendid Beijing Hall in Loong Plaza award in 2008. Worldwide-Asia Pacific Hotel and Resort. The ceremony “Aria continues to represent the recently appointed featured the theme “Love at the best of the best for China World Hotel, Eric Kee as General Electric Power Research Institute, and Beijing,” said Stefan Bollhalder, China Manager of Park Plaza passion for the Beijing Olympics.” World Hotel Beijing’s General Manager. Beijing Wangfujing. “I would like to commend Danny Kane, Kee brings with Aria’s manager, for his efforts in delivering him close to two an excellent wine list that manages decades of hospitality to achieve a fine balance between experience and innovation and consistency. I would also has held various senior management like to express my appreciation to Wine positions in international hotels around Spectator for once more recognizing the the world, including the United States, dedication of Danny and his team.” Macao, Japan and Malaysia. “I am very honored to be taking on Accor this leadership role with Park Plaza Beijing Wangfujing,” Kee said. “The hotel has Held on the same day as the Olympic displayed strong performance in the last opening ceremony, the wedding had two years since its opening. Selected as special meaning for the 24 nuptial couples one of the five Olympic Family Hotels from the Electric Power Research Institute by the Beijing Olympic Organizing in China. It was an unforgettable day for Committee, I look forward to ensuring them. The Olympic torch relay highlighted that we continue to deliver excellence the wedding ceremony. Torchbearers in guest services and facilities.” from the State Grid Corp. of China brought the torch to the wedding, which The Great Wall Sheraton Hotel the brides and grooms passed around. The couples were very excited at the Martijn Van Der Valk (middle), General Beijing Manager of the famous Pudi Boutique relay and felt happy and honored. They Hotel in Fuxing Park, Shanghai, welcomes blessed the Olympic Games with love. Herve Ladsous (left), the Ambassador of France, and Anne Denis-Blanchardon Novotel Beijing West (right), Deputy General Consul of France Zhongguancun in Shanghai, on July 22. They were invited Peter Lam has to the Pudi Boutique Hotel, which opened been appointed the last year to see the new addition to the General Manager of Accor hotel group. Perfectly located on the Novotel Beijing the pedestrian Yandang Road in the West Zhongguancun. French Concession, the hotel features Adriano Severi, General Manager A British citizen born 52 large and elegant rooms and suites. of the Great Wall Sheraton Hotel Beijing, in Hong Kong, Lam It is often described as “a private haven welcomes Mongolian President Nambaryn joined the Accor of elegance and compassion.” Enkhbayar, who came to the capital Group in 2000 and to attend the opening ceremony of the has worked in various The Crowne Plaza Beijing 2008 Olympic Games on August 8. Accor properties in Long before the Games of the XXIX key cities such as Olympiad opened on August 8, the Crowne Shangri-La’s Kerry Center Hotel, Shanghai, Beijing, Plaza Beijing, one of Beijing Suzhou and Harbin. Lam has 28 years the Olympic hotels of experience in the hotel industry. designated by the During this time he spent 14 years in Beijing Olympic China, working in senior positions at Organizing other hotel groups in China, including Committee, made the Ritz-Carlton Hotel, Regal Hotel preparation and International, Peninsular Hotel and completed its deco- Hyatt Hotels and Resorts. Most recently, ration for the Games Lam was the General Manager of the in mid July, which Grand Mercure Baolong Shanghai. He is gave the hotel an a member of the Institute of Hospitality appropriate atmo- and has been recognized as a certified sphere. Figurines On August 7, more than 20,000 square hotel administrator by the American of the lovely Olympic mascots playing feet of the Kerry Events Center on the third Hotel and Lodging Association. http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 43 44 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 45 FORUM What Does Winning the Gold Medal Count Really Mean?

The euphoria has gone and the stadiums achievements in the past decades. ing shadow boxing and dancing in parks, are empty. Memories of amazing perfor- The 1932 Olympics only saw one squares and residential communities, while mances on the track and in the pool linger Chinese participant in the Games. In 2008 the young are found playing basketball and after the Beijing Olympics closed in spec- the Chinese delegation had 639 athletes, out- doing hip hop dancing. Swimming pools, tacular fashion. And on the score board the numbering any other delegation. Once upon football fields, and gymnasiums are always numbers tell their own tale. The United a time, China did not have enough money full. Chinese people’s zeal for sports is evi- States won the overall medal count with a to pay for the journey of its athletes to the dent. Commercials on sports products are total of 110 medals, 36 of which were gold. Olympics, yet today China has successfully seen on TV and in street advertising. Sports China won 100 medals, 51 of which were hosted the Olympic Games. Once, it seemed are now popular with the Chinese and this is gold. Russia came in third with a total of 72 that Olympic gold medals would never come the basis for China winning more gold med- medals. to a Chinese athlete, and now the Chinese als. China views the number of gold medals delegation has harvested 51 gold medals at Gold medals can’t speak for all, but as its measure of success and the fact that it one Games. to some extent, it does reflect the Chinese has not only exceeded its own expectations Chinese athletes’ performance has al- enthusiasm for sports, the improvement of but also dominated the gold tally so conclu- ways kept pace with the country’s social people’s health and the country’s compre- sively gives rise to much debate about how and economic development. At the Atlanta hensive strength. this achievement was made and what are the Olympics in 1996, China ranked fourth on Yang Yuze (China Youth Daily): Some future implications of this outstanding result the gold medal tally with 16, and in Sydney, people argue that gold medals are not every- for sport in China. China ranked third with 28 golds. In Athens, thing, so people should not overestimate the China ranked second with a record 32 golds. impact of the medals. However, athletes and A reflection of progress China’s rapid economic growth makes it their coaches have worked hard to win the Dou Hanzhang (Nanhu Evening possible for the country to invest more finan- medals. If we really do not value gold med- News): In the past, to top the gold medal cial resources in sports and for the public to als, then please stop investing in sports. It’s tally seemed a dream for China, but now it pay more attention to health. People now have unreasonable to play down the significance has come true. the desire to take part in sports and fitness ac- of gold medals while inputting a lot. This is not an “overnight miracle,” but tivities and also have the money to do so. Some people are afraid that the Chinese the result of China’s great development Today, the elderly are found practic- would become arrogant because of the gold LI SHIGONG

46 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com medal harvest. So they deliberately play did not have to spend a lot of time on travel. Olympic medal competition, the develop- down the significance of great achievements. They were more familiar with the stadiums ment of mass sports and fitness activities in Indeed, gold medals can’t prove that China’s and facilities than athletes from other coun- the country seems to be falling behind. The national strength has surpassed the United tries. They would also feel more used to the physical quality of Chinese adolescents is States, but at least it reflects China’s great life in Beijing and they had huge crowd sup- reportedly far worse than those in the United investments in sports and the hard work of port. All these favorable factors should not States, as well as neighboring Japan and athletes and coaches. If we do not recognize be neglected. We have to ponder over this South Korea. their achievements, it’s unfair. question: Is the Chinese delegation able to Since 1985, China has carried out four To keep a clear mind amidst rapid eco- rank first without these advantages? surveys on the physical conditions of the nomic growth is great, but criticism should To be frank, most of China’s Olympic country’s adolescents. According to the not go too far. champions are the products of intensive results, the obesity rate has risen by five We must realize that China’s sports sys- training. They grew up in a condition with- times among Chinese youth in the past two tem needs improvement and reform. In the out regular education. It’s no exaggeration decades. The 1995 survey found Japanese United States, gold medal winners are trained to say that China’s sports development fol- adolescents were better than Chinese in by clubs or independent coaches and rely on lows a polarized model: excessive emphasis terms of nourishment and physical growth. corporate sponsorship. They make sports a on medals, little emphasis on the whole These statistics show that what count profitable industry, which offers many peo- population’s health; excessive emphasis on ple job opportunities and greatly improves the cultivation of an elite group of medal are not only Olympic gold medals, but also the country’s sports level. In China, athletes hopefuls in sports meetings of various levels, gold medals in real life. In China, the most are supported by the government and the ef- little emphasis on ordinary people and mass popular entertainment includes mahjong (a ficiency is relatively low. However, China’s sports and fitness events. kind of dominoes), karaoke and big dinners, lead in the gold medal tally at least proves Therefore, the challenge now is how to while in Western countries, mountaineering, that it’s possible for China to surpass former boost the attraction of mass sports and fitness skiing, bicycling are popular. sporting powers as long as it tries hard. activities, for the people to enjoy sports in We are now able to host the Olympics their daily life, to widely improve the whole and the growing number of gold medals re- Home ground advantage nation’s health and to train more sports flects China’s remarkable sports strength. So Wang Jie (www.eastday.com): First reserve talents. To make China into a real as we no longer need to prove how powerful of all, we must realize the advantage of be- sports giant needs continuous efforts. Chinese athletes are, it is time to shift the ing Olympic host helped tremendously in Wang Chong (International Herald emphasis to mass sports and the physical fit- the gold medal haul. The Chinese athletes Tribune): While China is doing well in the ness of adolescents. n

spite various difficulties, the Asia-Pacific China’s Growing Confidence region still maintains a strong momentum of development. In the first half of 2008, China’s economic growth rate was 10.4 The Beijing Olympics have helped to promote percent, no mean feat. If the world economy wants to extract itself from the valley it is the mutual understanding between China and currently in, it can’t do so without cooperation with East Asia and China—the most the rest of the world economically vigorous region in the world. By WU JIANMIN because the world got the opportunity to This year has proved to be harsh on a lthough we live in the informa- know more about China. Advanced infor- number of export-oriented Chinese enter- tion age, this does not neces- mation technology can’t replace people’s prises. The depreciation of the U.S. dollar sarily mean that the mutual personal experience. Misunderstanding and and appreciation of the Chinese currency understanding between differ- prejudice will be broken by truth. has resulted in a shrinking export market ent countries is easy. When the Olympics On August 8, President Hu Jintao held and also the increasing pressure from A a luncheon for heads of state and govern- inflation. But every coin has two sides. were approaching, China was under attack from some people and organizations, but ment and royal family members from around Severe conditions will force Chinese after the opening ceremony on August 8, the world. The distinguished guests came enterprises to seek ways of survival, de- negative reports fell sharply, replaced by to China for the Olympics and also to share velopment and upgrading. Confidence various positive reports. Media praised the in China’s joy. The deeper understanding matters greatly in economic development. opening ceremony for its striking Chinese between China and the rest of the world will The Beijing Olympics further strengthen characteristics, grand atmosphere and its surely help to promote deeper future coop- China’s confidence and this will be trans- reflection of a fast developing China. The eration. This cooperation will cover various formed into tangible gains. Predictably, quality of sports facilities that China built areas, including the economy. after the Olympics, China’s economy will for the Games also received favorable com- The Beijing Olympics were held at a maintain its stable growth. ments along with Chinese hospitality, good time when the world economy is threatened Although the Olympics are just a grand behavior and the great improvement of the by severe challenges. The U.S. economy is global sports event, it carries extensive air quality in Beijing. To some extent, it’s on the decline, and European and Japanese influence, materially and spiritually. This in- economies are also seeing a slowdown in fluence will continue to push forward world The author is president of the China Foreign Affairs growth. The world is plagued by oil, grain, progress as well as China’s scientific and University and former Chinese ambassador to France financial and climate crises. However, de- technological development. n http://www.bjreview.com SEPTEMBER 4, 2008 BEIJING REVIEW 47 EXPAT’S EYE JOHN BUTCHER ROOM WITH A ors, it can be relaxing, energetic and interesting VIEW: Much to all at the same time. We walk for a few hours, do on the streets taking the odd break for ice cream or a soft of Beijing drink, around the lake, over the park’s hills and amid its many temples. Later, it’s back to the apartment again to relax for an hour before dinner in Xizhimen at a great little Xinjiang restaurant. Rough and ready—its ashtray being the floor and toilets someplace down the street—yet with an opu- lent interior and great food, served by cheerful Uygur waiters amid a boisterous atmosphere. Some rare English-language commen- tary on the radio announces English football transfers while I’m there. Apparently Derby County has signed Wayne Rooney and Frank Lampard and are being tipped to win the Premiership next season. We eat mutton and carrots with rice and have a couple of beers, before leaving. Jingdi buys some Xinjiang bread from a vendor outside the restaurant to munch on as we head down the street. Following an after-dinner stroll through Xizhimen, we catch a taxi down to Houhai, a once tranquil lake that is now one of Beijing’s nightlife centers. We start with a quiet drink at Such a Perfect Day the “bar with no name,” before walking over to meet friends at Zoom Bar, where we sit out By JOHN BUTCHER After a 30-minute walk I’m at Jishuitan, front taking in a view of the lake. After an hour I head next door into the y favorite day in Beijing begins where I stop for a coffee at a shopping center. jazz bar with Jingdi where we take a window with a 9 a.m. start, and breakfast It’s a standard, fairly characterless café, but the seat. It doesn’t take long before the crowd at home in Xizhimen. I drink a staff are friendly, and it’s quiet and comfortable. is screaming for me to “Play! Play! Play!” cup of tea and eat some toast, as I settle down with my coffee and half-heartedly M Others are shouting “Drib! Drib! Drib!” my I watch the hustle and bustle of the market study Mandarin for an hour before turning to jazz nickname on account of being able to below my window. the television to watch the Olympic coverage. play Charlie Parker (Bird) songs backwards. Open-air stalls, some under brightly “And Great Britain won another six gold Reluctantly, I take to the stage and blow colored umbrellas to shade them from the medals yesterday afternoon, taking them into out Bird’s “Billie’s Bounce.” We leave to a summer sun, compete for space amid a a clear lead at the top of the medal table,” the round of applause. throng of customers. Behind the market, the commentator says. We take a 20-minute stroll over to the “They claimed their first-ever table ten- canal that runs through Xizhimen glitters be- Drum and Bell Tower area, one of my favorite nis gold with a stunning victory, and are yond a bank of weeping willow trees. places in Beijing. Through the quiet courtyard Directly below my apartment, and in expected to claim gold in synchronized tram- between the towers and onto a hutong behind, front of the market, a line of small restau- polining this morning after the favorite from we turn a corner to the right and enter a hid- rants serve breakfast on the street, as the day Canada had to pull out with mild burns after den bar where my friend’s from Zoom Bar are begins in earnest. falling asleep in a tanning salon.” now holed up. The place has the ambience of Finishing up a strawberry yogurt, I pull Later I take the subway down to the an exclusive London gentlemen’s club, mixed on some sandals, grab my door key, and a Tiananmen Square where I meet my girl- with Beijing vibes. After a few drinks and some bag holding my Mandarin study book, and friend, Jingdi. Vast, and surrounded by games of pool, Jingdi and I leave and hop in a head out the door. history, it makes a perfect place for a stroll taxi bound for Xizhimen once more. Nine floors down, across a courtyard and chat before we head for lunch at Guijie, The day ends back home, looking from and out…I pass the market and stroll along a street of food stalls selling everything from my window over distant neon signs and car the side of the canal, buying a slice of water- starfish on a stick to stinky tofu. lights as Beijing gradually goes to sleep. melon as I go. Brought in straight from the After lunch we catch a taxi up to the countryside around Beijing that morning, it Summer Palace for yet more walking. It’s a fan- Note: I don’t play the saxaphone, Derby were literally melts in my mouth. tastic place on the outskirts of Haidian District. relegated to the first division last season and have not signed Rooney or Lampard, and as I write Great Constructed in the Jin Dynasty (1115-1235), Britain are third on the Olympic medal table, but I The author is British and lives and works in Beijing and extended over the years by various emper- hope this gives you some ideas of what to do in Beijing

EXPATS, WE NEED YOUR STORIES! If you’re an expat living in China and have a story or opinion about any aspect of life here, we are interested to hear it. We pay for published stories. Submissions may be edited. E-mail us at [email protected]

48 BEIJING REVIEW SEPTEMBER 4, 2008 http://www.bjreview.com