VOL. XXIV No. 2 February 2012 Rs. 10.00

Spring came to the "Spring City" of Kunming, Yunnan Province of , followed by the numerous migrant black-headed gulls to the Green Lake of the city. Zhou Yongkang, a member of the Standing Committee of Chinese State Councilor Dai Bingguo met with Indian the Political Bureau of the CPC Central Committee and External Affairs Minister S.M. Krishna in Zhongnanhai in Secretary of the Committee of Political and Legislative Beijing on February 8. Affairs of the CPC Central Committee, met with visiting Indian External Affairs Minister S.M. Krishna at the Great Hall of the People in Beijing on February 8.

Chinese Foreign Minister Yang Jiechi met with his Indian Chinese Ambassador Zhang Yan attended the launching counterpart S.M. Krishna in Beijing on February 8. ceremony of the India-China Center sponsored by Bridging Nations in Pune on Jan.24.

Chinese Ambassador Zhang Yan handed over certificates Minister Counselor Deng Xijun of the Chinese Embassy in to trainees of the EDP Training for PMEGP Benificiaries in India delivered a speech on the FICCI-PD Monthly Foreign Pune on Jan.25. Policy Forum on the Role of BRICS in the New Emerging World Order in New Delhi on Jan. 31. NEWS FROM CHINA /FEBRUARY 2012 3

CONTENTS

I.CHINA-INDIA RELATIONS

1. Zhou Yongkang Meets with Indian External Affairs Minister Krishna 4 2. Dai Bingguo Meets with Indian External Affairs Minister Krishna 5 3. China, India Pledge Closer Ties for Common Development 5 4. Remarks of H.E.Ambassador Zhang Yan at the Launch Ceremony 7 of the India-China Center 5. Speech on the Role of BRICS in the New Emerging World Order 11

II. EXTERNAL AFFAIRS

1. China, EU Seek Stronger Partnership Amid Euro Debt 13 2. Wen Jiabao Holds Talks with Canadian Prime Minister Harper 16 3. Top Chinese Political Advisor’s Visit Helps Promote Friendship, 17 Cooperation with AU, Ethiopia 4. Chinese VP Meets Obama, Senior US Officials on Bilateral Ties 19 5. Chinese Vice President Attends Luncheon Hosted by Biden, Clinton 21 6. Chinese VP Hopes U.S. Presidential Vote Won’t Have Negative Impact on Sino-U.S. Ties 23

III. DOMESTIC AFFAIRS

1. President Hu Joins Public to Celebrate New Year 24 2. Premier Stresses Unwavering Reform, Rural Democracy 25 3. China Vows Enhanced Agricultural Investment to Stabilize Output 26 4. Government “Must Utilize Blogs Better” 27 5. China’s Economy to See Soft Landing 29 6. Economy Throttling Down 30 7. Bigger and Better Health Care System 34 8. Spring Steps to Promote Traditional Culture 37 9. Managing the Mass Migration During the Spring Festival 41 10. 339,700 Chinese Choose to Study Abroad in 2011 43

IV.TIBET TODAY

1. Chinese Premier Wen Meets Panchen Lama 44 2. Tibet Received 8.7 Million Tourists Last Year 45 3. Full Speed Ahead for Tibet Railway Extension 46

V. TRAVEL IN CHINA

1. Lantern Festival Brings Festive Outdoor Fun 46 2. Backgrounder: Chinese Lantern Festival 47 3. Palace Opens More Doors to Present New Face 50 4 NEWS FROM CHINA /FEBRUARY 2012

I. CHINA-INDIA RELATIONS

Zhou Yongkang Meets with Indian Foreign Minister Krishna

On February 8, 2012, can deepen political trust, Zhou Yongkang, a member improve personnel of the Standing Committee exchanges, properly of the Political Bureau of handle questions left over the CPC Central by history, such as the Committee, and secretary border issue, and jointly of the Committee of safeguard peace and Political and Legislative harmony in border areas. Affairs of the CPC Central He also hoped that both Committee, met with nations can expand visiting Indian Minister for pragmatic cooperation in External Affairs S.M. infrastructure cons- Krishna at the Great Hall of truction, information the People. technology and Zhou recalled his visit manufacturing in order to to India in 2010 on the boost two-way trade to occasion of the 60th anniversary of the 100 billion U.S. dollars by 2015 and push China- establishment of China-India diplomatic ties. India strategic cooperative partnership to a new During the visit, Zhou had candid, friendly and level. Zhou also expressed his appreciation for in-depth exchanges of views on issues of India’s firm support for China on Tibet issues, common concern with Indian Prime Minister stating that the issues concern China’s national Singh, President of the Indian Congress Party interests and that the Chinese government will Sonia Gandhi and other leaders and attended the crack down on secessionists and safeguard its second seminar on Sino-Indian relations with the territorial integrity according to relevant laws. Indian Foreign Minister. He said the visit Krishna hailed the achievements of showcased the friendship of Indian people and the cooperation between both sides in recent years, growing momentum of China-India relations. saying that India and China have maintained Zhou said the 21st century should be a sound coordination in dealing with major century of peace, friendship and cooperation. international affairs. The Indian government is China and India, as the world’s largest committed to consolidating and promoting India- developing countries and emerging economies, China friendly and cooperative relations, Krishna enjoy rare opportunities for national said, reiterating that India recognizes Tibet as a development and huge room for bilateral part of China and will not allow any forces to use cooperation. Zhou said he hoped the two sides its territory to get involved in anti-China activities. NEWS FROM CHINA /FEBRUARY 2012 5

Dai Bingguo Meets with Indian External Affairs Minister Krishna

On February 8, 2012, State Councilor Dai of common development so as to further advance Bingguo met with Indian External Affairs Minister the China-India relationship. S.M. Krishna in Zhongnanhai. Krishna said over the past 10 years, India and Dai said China and India are the largest China have established a strategic cooperative developing countries as well as the fastest growing partnership and bilateral friendly exchanges and emerging economies. In recent years, China-India mutually beneficial cooperation have reached an relations have maintained sound development unprecedented level. The Indian government momentum with the deepening of cooperation in attaches great importance to friendly and various fields. He said the bilateral relationship is cooperative relations with China and is ready to becoming more and more important globally and work with the Chinese side to maintain the strategically. In the current international situation, momentum of high-level visits, deepen trade and China and India face rare strategic opportunities investment cooperation and expand humanities, and common challenges. He called on the two sides media and youth exchanges so as to push forward to grasp historical opportunities, grasp the general bilateral relations. direction of friendship and adhere to the lofty goal

China, India Pledge Closer Ties for Common Development

Beijing, Feb. 8 (Xinhua) — China and India Minister Yang Jiechi, and Wang Jiarui, head of the pledged Wednesday to boost their ties and seek International Department of the CPC Central common development as the South Asian Committee. country’s foreign minister paid a visit to Beijing. Ma Jiali, an India expert and executive deputy Indian External Affairs Minister Shri S.M. director of the Center for Strategic Studies of the Krishna is on his China trip to inaugurate the South China Reform Forum, said that the meetings Asian country’s new embassy complex in Beijing. showed that both China and India “attach great However, analysts say that his task is much more importance to and have great enthusiasm for” the than that. development of the bilateral relationship. Krishna said at the inauguration ceremony During his meeting with the Indian foreign Wednesday night that “a modern and expansive minister, Zhou said China and India, as the world’s chancery clearly reflects our expectations of ties largest developing economies, have multiple with China.” opportunities for national development and Earlier Wednesday, Krishna met with four bilateral cooperation, expressing his hope that both high-ranking Chinese officials in Beijing, including nations can expand cooperation in infrastructure Zhou Yongkang, a member of the Standing construction, information technology and Committee of the Political Bureau of the manufacturing in order to boost two-way trade to Communist Party of China (CPC) Central 100 billion U.S. dollars by 2015. Committee, State Councilor Dai Bingguo, Foreign It is estimated that the bilateral trade between 6 NEWS FROM CHINA /FEBRUARY 2012

China and India hit 70 billion U.S. dollars in 2011, can make a direct contribution to that goal,” he more than 20 percent higher than that of the said, adding that each of the two nations has previous years in spite of the global economic capabilities from which the other can greatly slump. benefit. In order to further enhance economic “Indeed, as neighbors, the stability and consultation and cooperation, the two sides predictability that we provide to the other is itself launched the Strategic Economic Dialogue of great value,” he said. mechanism last year, Krishna noted in a written “The rise of India and China cannot only be a interview. parallel process but, with vision and commitment, Zhou said he hopes the two sides can deepen actually a reinforcing process,” he added. political trust, improve personnel exchanges, In Beijing, Krishna and his Chinese counterpart properly handle questions left over by history — Yang exchanged views on bilateral relations and such as the border issue — and jointly safeguard international and regional issues of common peace and harmony in border areas. interest, according to another release. Last month, China and India signed an “They agreed that the two sides should make agreement in New Delhi on establishing a working joint efforts to maintain and strengthen the good mechanism for consultation and coordination over momentum of development of the China-India their border affairs, which Krishna said is “a relationship and lead their friendship into a new significant step forward in the direction of phase in accordance with the consensus reached maintenance of peace and tranquility along the by the leaders of the two nations,” it added. India-China border.” Krishna said that the two nations have agreed On Tibet, an issue that deeply concerns China, to designate the year 2012 as the “Year of India- Krishna reiterated that India recognizes Tibet as a China Friendship and Cooperation” after they part of China and will tolerate no anti-China celebrated the Year of Exchange in 2011. activities on Indian territory. “At this stage of growth, our targets should be In his meeting with Dai Bingguo, Krishna said ambitious,” said the Indian foreign minister. the friendship and cooperation between the two During his meeting with Wang, Krishna said nations have reached an unprecedented height, as a member of the BRICS, India is ready to work according to a press release from the Chinese side. with China to further enhance coordination and For his part, Dai said the bilateral relationship cooperation in regional and international affairs. is becoming more and more important “globally BRICS is a group of the major emerging and strategically,” calling on the two sides to grasp economies, Brazil, Russia, India, China and South historical opportunities while addressing common Africa. This year’s BRICS Summit is scheduled to challenges, so as to further advance the China- be held in India next month. India relationship with the general direction of “India-China relations go well beyond their friendship and the lofty goal of common bilateral aspect,” Krishna said, adding that “the development. larger region, indeed the whole world, observes “As the only two nations with a population of its progress closely.” more than a billion each, the foremost priority for “An important aspect of our growing both of us is to raise the quality of life of our cooperation is how closely India and China work people,” Krishna said in his speech at the together on global issues such as climate change, ceremony. food security and a more equitable world order,” “A stronger India-China economic relationship he added. NEWS FROM CHINA /FEBRUARY 2012 7

“China and India share common or similar prospects for further cooperation bilaterally and positions on many issues on the world stage,” said internationally. Ma, adding that the two nations have broad

Remarks of H.E.Ambassador Zhang Yan at the Launch Ceremony of the India-China Center

(Pune, Maharashtra, 25 January 2012)

Dr. Mashelkor, Professor and President of Global Research Center, Amb. Ronen Sen, Honorable Founding Chairman of Bridging Nations, Dr. Prakash Ambegaonkar, CEO and founder of Bridging Nations Distinguished Guests, Ladies and Gentlemen, It’s indeed an honor for me to attend this gathering to inaugurate the India-China Center in Pune. First of all, I would like to express my sincere congratulations to Dr. Prakash Ambegaonkar and his wish all of you a very successful new year. And colleagues of Bridging Nations, who have made may the year of Dragon bring you good health, tireless efforts to prepare the ground work for the good luck and good future. I also want to express smooth launch of the center. I am pleased and very warm felicitations to Indian friends on your encouraged to see so many respected guests, Republic Day, which will fall on tomorrow. including prominent experts, professors, and business people from Pune, attending the function Ladies and Gentlemen, tonight, which demonstrates the keen interests you China and India are two great nations with have in China and India relations. ancient civilizations linked by mountains and This is the second time for me to visit Pune. rivers. Our friendly exchanges and amity can be Last time I was here to participate in the traced back more than 2000 years ago. Two inauguration of Sany Heavy Industry(India). This countries are mutually influenced and mutually time, I came for this occasion at the time of Chinese inspired, which greatly enriched our respective Lunar New Year, the Spring Festival. According civilization. The introduction of Buddhism from to the Chinese Zodiac, 2012 is the Year of Dragon. India into China is a vivid example of our cultural In Chinese culture, the Dragon represents power and intellectual interactions in the history. The and strength. At this very auspicious moment, I founding of new China in 1949 and the 8 NEWS FROM CHINA /FEBRUARY 2012

independence of India in 1947 opened new era commitments to the further advancement of for our relationship. In the past 61 years since the bilateral relations and cooperation. establishment of diplomatic relations, China-India Thanks to the joint efforts of both sides, China- relations have summoned all challenges and made India relation is developing in an all round manner impressive progress. The era of “Hindi-Chini Bhai and has become one of the most important relations Bhai” has deeply rooted in the hearts and minds in the world today, acquiring global and strategic of the two peoples. The famous Panchsheel, the dimension and with following prominent features. Five Principles of Peaceful Co-existence, co- First, high level interactions have maintained initiated by China and India in 1950s, remains to strong momentum. As I have outlined before, the be the important guiding principles in international leaders of two countries have maintained frequent relations. Although there were ups and downs in exchange of visits over the past few years. In our relationship, mutual beneficial cooperation addition to that, they also met each other during between China and India has been the main the international gatherings. Last year, Chinese feature of our bilateral interaction in the past few President Hu Jintao and Indian Prime Minister decades. As Chinese Premier Wen Jiabao said once Manmohan Singh had a fruitful meeting during that during more than 2000-year long history of the BRICS Summit in China. In November 2011, exchange, 99.9 per cent of time two countries lived Chinese Premier Wen Jiabao met with Prime in peace and amity. As the great Indian poet Minister Manmohan Singh on the sideline of the Tagore noted that India feels that China is a very East Asia Summit in Indonesia. Both sides close relative. reaffirmed their commitments to the furtherance China-India relations regained momentum of bilateral relations. Premier Wen Jiabao also met after the historical visit to China by the then Indian Indian Deputy Chairman of Planning Commission Prime Minister Rajiv Gandhi in 1988. Entering into Montek Singh Ahluwalia when he was attending the 21st century, China-India relations moved into the first ever China-India Strategic Economic a fast track of development. In 2003 Indian Prime Dialogue in Beijing. Early this year, Indian Prime Minister Atal Behari Vajpayee visited China and Minister Manmahan Singh had a meeting with the two sides agreed to establish a Long-term Chinese State Councillor, Mr. Dai Bingguo during Constructive Partnership. During Chinese Premier the 15th Special Representative Meeting. Frequent Wen Jiabao’s visit to India in 2005, two countries exchanges of visits at high level have greatly further upgraded their relationship into a Strategic enhanced the mutual trust and cooperation and Cooperative Partnership for Peace and between two countries. Prosperity. President Hu Jintao visited India in 2006 Second, the bilateral economic cooperation has during which China and India developed a “Ten- witnessed a sustained growth. In the past 11 years, pronged Strategy” to enhance bilateral relations. trade volume between two countries has increased Indian Prime Minister Manmohan Singh visited more than 10 times. As two fast emerging China in January 2008. Two sides signed A Shared countries, China and India has become the Vision for the 21st Century of China and India powerhouse of the world economy. Two and agreed to promote the building of a economies have withstood the negative impact of harmonious world of durable peace and common the European debt crisis and American financial prosperity through further advancing China-India crisis, and maintained relatively robust growth. strategic and cooperative partnership. In 2010, Last year, the bilateral trade of China and India Premier Wen Jiabao and Indian President Pratibha has reached new height in spite of the global Patile exchanged visits. Two sides reaffirmed their economic and financial crisis. The two-way trade NEWS FROM CHINA /FEBRUARY 2012 9

exceeded 73 billion USD, with an increase more Fourth, China and India have maintained close than 20 per cent. China has become one of the consultation and coordination in the United largest trade partners of India and India is also Nations, World Trade organization, G-20 and China’s largest trade partner in South Asia. In BRICS, and on major international and regional 2010, both sides agreed to set a new target of 100 issues such as the global financial and economic billion USD for bilateral trade by the year 2015. crisis, climate change, food and energy security, Cooperation in the investment and financial sectors anti-terrorism as well as issues related to the is also expanding rapidly. There are already more situation in the west Asia and north Africa. China than 150 Indian companies have set up business and India are enjoying growing convergence of in China and around 100 Chinese companies are interests and are committed to the building of a operating in India. Quite few of them are located fair, just and reasonable international economic, in Pune. And more Chinese companies have financial and trade order. In the G-20 Financial showed interests to invest in India. The largest Summit and the Conferences on Climate Change, Chinese bank, the Industrial and Commercial Bank China and India worked closely and of China opened its first branch office in Mumbai constructively, and work jointly to safeguard the last year, marking a new milestone in bilateral interests of the developing countries. financial cooperation. The fast expanding Ladies and Gentlemen, economic cooperation has already yielded win-win results to both countries. Looking ahead, I am optimistic about the future Thirdly, people-to-people and cultural of China and India relation. exchanges have become a new highlight of bilateral Chinese President Hu Jintao once said that relation. In 2010, two countries organized China India is an important neighbor of China. China is Festival in Indian and India Festival in China committed to the promotion of harmonious, during the commemoration of the 60th anniversary neighborly and amicable cooperation between of diplomatic relations. Last year was announced China and India. China is ready to work with the as the Year of China-India Exchange, during which Indian side to maintain the sound momentum for a series of programs were organized in India. development of the bilateral Strategic and Experience China—Sichuan Week was successfully Cooperative Partnership. Indian Prime Minister held last April. In September last year, a 500- Manmohan Singh, on his part, stated that the member Indian youth delegation led by Minister Indian Government will give top priority to its of Youth Affairs and Sports of Indian visited China relations with China and is committed to advance and they were warmly received by Chinese Premier bilateral cooperation in various fields on the basis Wen Jiabao in the Great Hall of the People. Besides of progress made in the past. The commitments of acrobatic troupe of Yunan Province and art groups two leaderships have provided very solid political from China toured cities in India to showcase bases for the future advancement of bilateral China’s rich traditional culture. The exchanges relation. and cooperation between political parties, In addition, our relation has become more parliaments, thank-tanks and in the areas of substantive. As two largest developing countries, defense, youth, media and education also we are facing the common historical task. That is witnessed fast expansion. These exchanges have to develop our economy, eradicate poverty and greatly promoted the mutual understanding and improve the wellbeing of our people. Our economic friendship, enhancing mutual trust and mutual interests have become more and more interrelated cooperation. and broad. At the same time, we are encountering 10 NEWS FROM CHINA /FEBRUARY 2012

similar challenges and sharing growing common financial and trade cooperation. Two countries interests and similar positions on many should expand the scope of cooperation, upgrade international and regional issues. trade quality, improve trade mix, and strive to meet Furthermore, our relation has become more the target set for 2015, which is US$100 billion. matured. We are aware of the fact that there are China and India should take effective measures to differences and challenges left over by the history remove trade and investment barriers so as to in our relationship. But we know much better how foster a sound environment for the business to manage them. Two countries are keenly aware communities of the two countries. Efforts should that cooperation benefits both and confrontation also be made to create a more favorable only hurts each other. As two Asian neighbors and environment to facilitate two-way investments in fast growing economies, China and India share a bigger way. more common interests than difference. We are Third, enhance people-to-people exchanges partners for development as well as partners for and cement public support for our relations. Two prosperity. We should not let the historical burdens countries should expand exchanges and to stand in the way of our cooperation. China and cooperation in the fields of culture, education, India’s rising together is an irreversible historical science and technology, tourism, health and sports, trend that no force in the world can stop it. and increase the friendly interactions between the Guided by the far-sightedness and strategic academic communities and media sectors. More vision of the leaders of two countries, I am of the emphasis should be given to the exchange of youth, view that further development of friendship and who are the future of our two countries. cooperation between China and India is in the Fourth, further strengthen cooperation in interest of two peoples. In the current global multilateral field. China and India shall remain as context, China and India should seize the important partners to each other in regional and opportunity and keep moving forward with an global affairs and work together to promote a multi- active and down-to earth attitude. To this end, I polar world and democratization of international believe efforts shall be made in the following areas: relations. Two countries should continue to join First, further enhance mutual trust. Mutual efforts in meeting the challenges of climate change, political trust is vital to a sound and steady growth financial crisis, and food and energy security, of our bilateral relations. The two sides should terrorism and work for the common good of continue the momentum of high-level visits international community. between our leaders, further step up exchanges Fifth, properly address each other’s concerns. and cooperation between government We should respect and accommodate each other’s departments, legislative bodies, political parties interests and concerns and appropriately manage and local governments and make full use of the the remaining issues through consultations and existing mechanisms, such as strategic dialogue, communication in a spirit of mutual understanding foreign policy consultation and defense and and mutual accommodation. An early settlement security dialogue, to enhance mutual trust and lay of the issues left over by the history serves the a solid political foundation for the furtherance of fundamental interests of both sides. The two bilateral relations. countries shall follow the political parameters and Second, deepen economic cooperation for win- guiding principles both agreed, strive to seek a fair win progress. With huge markets, rich human and and reasonable solution acceptable to both other resources, China and India enjoy great countries. Pending a final resolution, we shall not potentials and complementarities in economic, allow the differences stand in the way of our NEWS FROM CHINA /FEBRUARY 2012 11

cooperation. bridges of understanding and trust among the It is my believe that good-neighborly friendship, world’s two largest neighbors, focused on fostering mutually beneficial cooperation and common policy initiatives in India-China relation, the India- development are not only a blessing to the 2.5 China Center can play invaluable and billion peoples of our two countries, but will have instrumental role in promoting better profound influence on the peace, stability and understanding, fostering friendship and prosperity of Asia and the world as whole. As strengthening cooperation between the people of Indian Prime Minister said once, when India and two countries. China speak, the world listen. As the world is I hope the center will not only do the theoretical watching with great interests the development of researches, but also undertake concrete projects China-India relation and as Asian countries have and programs. I am happy to note that it has placed their hope on our two countries for uplifting already included educational, cultural and of the region, China and India should work language training programs as part of its future together for the early realization of Asian century. plan. At the same time, the center will promote exchanges for students, corporations, NGOs, Ladies and Gentlemen, academics and policy-makers. I think these are very India-China Center is launched at the most practical and effective ways to build friendship and optimum moment. It coincides with the arrival of trust among the people of two countries. As the year of Dragon and also 10th anniversary of Chinese Embassy, we are ready to work with you the founding of Bridging Nations. On top of that, to achieve the objective. the center is coming into being at the time when Finally, I sincerely wish the India-China Center China and India relation is at the best and two a great future ahead. countries are looking for further expansion of their Thank you all. mutually beneficial cooperation. Aimed at building

Speech on the Role of BRICS in the New Emerging World Order by Deng Xijun, Minister Counselor, Chinese Embassy New Delhi, January 31,2011

Dr.Rajiv Kumar, Secretary General of FICCI, H. E. Mr. Pinak Ranjan Chakravarty, Special Secretary of MEA, Distinguished Colleagues, Ladies & Gentlemen, Today, I am very glad to be invited by FICCI and MEA to the Foreign Policy Forum and have the opportunity to meet so many friends and share views with you on the Role of BRICS in the New 12 NEWS FROM CHINA /FEBRUARY 2012

Emerging World Order. In Recent years, China’s annual contribution to I will focus my talk on the following three the world economic growth exceeds 50%. Such a aspects: present world situation, BRICS influence huge economic change and scale of BRICS have on today’s world and what role BRICS play in the historically reformed the world economy and its changing world. balance of powers. In the post-crisis era, through First is the present situation. Over the last few each member’s self development and their close years, our world went through major development, cooperation, BRICS have become an important major changes and major adjustments. The trend of factor in maintaining world economic stability and peace, development and cooperation gained stronger the key engine of world economic recovery and momentum. The world moved further towards multi- development. The BRICS attach great importance polarity and economic globalization. New changes to cooperation among themselves and at the same took place in the global economic governance and time ask for the reasonable reform of the present new breakthroughs were in the making in scientific world financial order. and technological innovation. Emerging market In the political and security aspect, the BRICS economies engaged in dynamic cooperation. All these are exerting more and more important influence. have brought valuable opportunities to the Last April, the 3rd BRICS Summit was held in development of all countries. On the other hand, the China and South Africa became the 5th member. past years also witnessed incessant international and Thus the group is made by all major powers of regional hotspots which undermined world peace Asia, Europe, South America and Africa. The 3rd and stability. Development imbalance between the BRICS Summit Declaration shows that the focus North and the South remained an acute problem. of BRICS has extended from purely economic and Global challenges such as climate change, financial issues to more influential fields. It touched environmental degradation, energy and resources upon issues like West Asia and North Africa security, serious communicable diseases and major situation, Libya and the role of the UN. In fact, natural disasters raised wide concerns. Today, we BRICS members have been enhancing coordination are still confronted with the underlying impact of of their positions on major international issues and the financial crisis as well as European debt crisis. thus have more and more influence on world Rising commodity prices and inflationary pressure affairs, especially in the fields of climate change, has added to the uncertainties of the world environment protection, poverty reduction, food economic recovery. Global financial governance and energy security. remains a daunting task. The recent political In essence, the growth of BRICS represents the turbulence and even war in some west Asian and new efforts of global multi-polarity and is the hope north African countries have affected regional of rationalization of future world order. stability. There is indeed a long way to go before Third is what role BRICS play in the changing lasting peace and common prosperity can be world. In my opinion, first, we should endeavor achieved. to maintain world peace and stability. Peace and Second is the BRICS influence on today’s stability form the prerequisite and foundation for world. As you all know that the total population development. All countries, big or small, strong or of the five BRICS members makes up 42% of the weak, rich or poor, are equal members of the world population, the size of their land 30% of the international community. We should work for world total, their GDP 18% of the world total, their common security in a spirit of democracy, trade volume 15% of the world total and their inclusiveness, cooperation and win-win progress foreign exchange reserve 75% of the world total. and foster an international environment that NEWS FROM CHINA /FEBRUARY 2012 13

supports efforts of countries to achieve peace, cooperation. The BRICS, as a new model of global stability and prosperity in the light of their national economic cooperation and an important way of circumstances. pursuing multilateralism, can continue to play Second, we should endeavor to promote an active role in boosting cooperation among common development of all countries. The BRICS emerging market economies. did a good job in the financial crisis and can play Fourth, we should endeavor to strenthen the a more important role in the post-crisis era or even BRICS partnership for common development. longer time. We should put in place a fair and Over the past 5 years, BRICS cooperation has made effective global development system, establish fair, steady headway. Facts have shown that BRICS just, inclusive and well-managed international cooperation has contributed not only to the monetary and financial systems to support global economic and social development of our 5 economic recovery and development and increase countries, but also to world peace and the say and representation of emerging markets development. We should build on what we have and developing countries in these systems achieved and plan for the future, stay firmly Third, we should endeavor to bolster committed to the common interests of BRICS international exchanges and cooperation. We all countries, step up coordination in the international live on the same planet. Countries are now economic, financial and development fields and interconnected and interdependent with their strengthen the standing and role of emerging interests more closely interwoven than at any markets and developing countries in global time in history. The future and destiny of one economic governance. country is increasingly tied to that of the world. Finally, China will cooperate very closely with We should make full use of the multilateral India as host of the forthcoming summit and other cooperation mechanisms at various levels, BRICS members to make the 4th BRICS Summit a including the UN, the Group of 20 and the great success. BRICS, to carry out practical and effective Thank you very much for your attention.

II. EXTERNAL AFFAIRS

China, EU Seek Stronger Partnership Amid Euro Debt by Tan Jingjing, Xu Song, Yang Yijun

Beijing, Feb. 15 (Xinhua) — China and the China expects enhanced political and strategic European Union (EU) have sent a clear message dialogues with the EU to properly address major from their Beijing summit that they want to work concerns and sensitive issues, deepen cooperation together to address the European sovereign debt and expand common ground, to boost progress of crisis. the bilateral all-round strategic partnership. Chinese President Hu Jintao praised the While meeting with European Council success of the summit on Wednesday, saying President Herman Van Rompuy and European 14 NEWS FROM CHINA /FEBRUARY 2012

Commission President Jose Manuel Barroso, Hu said China pays close attention to the measures taken by the International Monetary Fund and the European Central Bank in coping with the debt issue, and will enhance policy coordination with the EU and participate in global efforts to back Europe and the euro zone. During the 14th China-EU summit held in Beijing on Tuesday, Chinese Premier Wen Jiabao agreed with Van Rompuy and Barroso that closer attention should be paid to dealing with the European debt crisis, and facilitating a two-way investment deal Chinese President Hu Jintao(C) meets with European Council President Herman Van Rompuy (R) and European Commission President Jose Manuel as soon as possible. Barroso who attend the 14th China-EU summit at the Great Hall of the Leaders of China and the EU People in Beijing, capital of China, Feb. 15, 2012. (Xinhua/Pang Xinglei) touched on a variety of bilateral and global issues in their summit, ranging from the debt relations with Europe from a strategic height and crisis, trade and energy cooperation, to China’s long-term point of view. market economy status, as well as regional issues Premier Wen put forward five proposals on including the situation in Syria and Iran. boosting China-EU trade bonds, including “China and the EU have their differences on expanding mutual investment, promoting balanced some of the topics, thus face-to-face dialogues two-way trade and cooperation in scientific would help beef up mutual understanding, seek research, innovation, energy and environmental proper solutions to issues and further consolidate protection, and boosting partnership in the China-EU comprehensive strategic urbanization. partnership,” said Qu Xing, head of the China A joint press communique released from the Institute of International Studies. summit says both sides agreed to launch negotiations on a two-way investment agreement STRONGER TRADE LINKS as soon as possible, so as to “lay a legal foundation Trade cooperation is an important component for the expansion of bilateral investment” and of China-EU ties. Currently, the EU is China’s consolidate the confidence of investors. largest trading partner and biggest export market, From cooperation in energy, technology and while China is close to being the EU’s biggest environmental protection to protection of trading partner. Bilateral trade volume hit 567 intellectual property rights and the fight against billion U.S. dollars in 2011. protectionism, detailed plans were nailed down President Hu on Wednesday voiced support for future cooperation. for stronger China-EU cooperation in trade, The two sides also agreed to hold further investment and finance. He said China has always discussions on energy strategies in a China-EU attached great importance to the EU’s role in global High Level Energy Meeting in June. affairs, and has been treating and developing “The summit yielded rich outcomes in boosting NEWS FROM CHINA /FEBRUARY 2012 15 bilateral trade, which not only cover concrete plans boost confidence in the European market, and send for deepening trade and investment, but also a positive signal to the world in countering the broaden potentials in fresh areas such as crisis,” said Chen Xin, an analyst for the Institute technology, energy and environmental protection,” of European Studies at the Chinese Academy of said Li Gang, a researcher at the Chinese Academy Social Sciences. of International Trade and Economic Cooperation RESOLVING MES IN SWIFT, of the Ministry of Commerce. COMPREHENSIVE WAY CHINA’S BIGGER ROLE IN ADDRESSING The issue as to recognition of China’s full EUROPEAN DEBT CRISIS market economy status (MES) has long been a President Hu told Van Rompuy and Barroso stumbling block to the development of China-EU on Wednesday China would join international relations. efforts to back Europe and the eurozone, echoing Chinese and European leaders have agreed in Premier Wen’s pledge of China’s bigger part in their summit to work toward resolving the MES resolving the European sovereign debt issue. issue “in a swift and comprehensive way.” During the summit, Premier Wen expressed The agreement was, for the first time ever, listed confidence in the euro and the European economy, in the joint press communique of a China-EU adding China’s willingness to support the EU in summit, with Van Rompuy saying there was dealing with the debt issue is firm. “strong political will” on both sides to solve the China is also considering more involvement in issue. addressing the issue through the European Wen pledged that China would improve its Financial Stability Facility and the European Stability Mechanism, Wen added. European leaders welcomed China’s positive attitude. Van Rompuy said China’s support helped the EU and eurozone restore confidence, and they look forward to further cooperation to strengthen the stability of the eurozone. “Europe has a clearer understanding of China’s role and expects China’s greater help in dealing with the crisis. Chinese leader has sent a very positive message to this end,” said Li Gang. Chinese Premier Wen Jiabao (C), European Council President Herman Van China has shown its Rompuy (L), and European Commission President Jose Manuel Barroso (R) attend the 14th China-EU summit and meet the press at the Great Hall companionship and, more of the People in Beijing, capital of China, Feb. 14, 2012. (Xinhua/Ding Lin) importantly, sincerity in a time of crisis. laws and regulations in relation to foreign “The consensus between Chinese and investment, enhance protection of intellectual European leaders on the debt issue would help property and improve its investment environment. 16 NEWS FROM CHINA /FEBRUARY 2012

China has urged countries to recognize its full- According to China’s World Trade market economy status as soon as possible and Organization Accession Protocol signed in Doha relax restrictions on high-tech commodity exports a decade ago, a 15-year transitional period has been to the country. imposed on China’s market economy status. China “Along with the rise of China’s position in the will automatically get full market economy status global economy and the rapid growth of China- by 2016. EU cooperation, the European leaders are now The 14th China-EU summit had previously taking a more active approach to addressing the been set for last October, but was postponed as issue,” said Li Gang. EU leaders scrambled to combat the Eurozone debt “The key step lies in the European side making crisis. a correct and wise political decision to grant China The annual summit was initiated in 1998 as market economy status as soon as possible,” he the top-level regular exchange mechanism between went on. both sides.

Wen Jiabao Holds Talks with Canadian Prime Minister Harper

On February 8, 2012, Premier Wen Jiabao held results. talks with Canadian Prime Minister Stephen Wen said the two economies are highly Harper at the Great Hall of the People. complementary and both sides should make full Wen spoke positively of the growth of China- use of this advantage to cope with the increasingly Canada relations in recent years, citing frequent fierce international competition. “The negotiation high-level exchanges, enhanced two-way trade on China-Canada investment protection and investment, and increasing exchanges in the agreement has concluded. We hope to sign the areas of culture, education and technology. Both important document as soon as possible to facilitate sides have also conducted effective coordination two-way investment,” Wen said. Wen proposed in international and regional organizations, he to draw up an all-round plan on boosting bilateral added. economic cooperation based on joint research on “Under the new circumstances, the two economic complementarities. He also urged countries should implement the consensus reached discussions on the feasibility of signing a China- in the China-Canada joint statement, maintain Canada free trade agreement. He urged the forging mutual respect, equality and non-interference in of a long-term, stable and diversified partnership each other’s internal affairs and beef up with Canada in the energy and resource sector. understanding through dialogue,” Wen said. “China is ready to expand imports of energy and China and Canada have common interest in a resource products from Canada and enhance wide range of areas including developing economy, cooperation in clean and renewable energy, maintaining peace, and addressing global issues. energy-saving, environmental protection, and the China is ready to work with Canada to plan the peaceful use of nuclear energy,” Wen said. The development of bilateral relations from the long- two countries should also explore cooperation in term and strategic perspective and push exchanges the areas of the judiciary, culture, technology, and cooperation in various fields to yield more agriculture, finance and the polar ocean, he added. NEWS FROM CHINA /FEBRUARY 2012 17

Harper told Wen that Both sides also recent years have exchanged views on witnessed strong growth of international and regional Canada-China strategic hot issues. partnership, fruitful Following the talks, the cooperation in various two leaders attended the fields, close personnel signing ceremony of several contact and strengthened bilateral cooperation bilateral friendly ties. agreements. Canada-China relations Prior to the talks, Wen are long-lasting and hosted a welcome ceremony strategic ties based on for Harper at the North Hall mutual respect and they of the Great Hall of the enjoy broad prospect. People. Vice Chairman of Harper said Canada Central Committee of China welcomes China to expand Zhi Gong Party Yang investment in his country Xiaopei, Foreign Minister and expects closer bilateral Yang Jiechi, Minister of the cooperation in trade, National Development and energy, resources, finance Reform Commission of and culture. He vowed China Zhang Ping, Minister On February 8, 2012, Premier Wen Jiabao held talks closer coordination with with Canadian Prime Minister Stephen Harper at of Commerce Chen Deming, China in global and regional the Great Hall of the People. Chinese Ambassador to affairs and to boost bilateral Canada Zhang Junsai and ties to a new level. other officials attended the welcome ceremony.

Top Chinese Political Advisor’s Visit Helps Promote Friendship, Cooperation with AU, Ethiopia

Addis Ababa, Jan. 29 (Xinhua) — Top Chinese forward a host of proposals for future development political advisor Jia Qinglin’s just-concluded visit of China-Africa relations, Yang said. helped boost traditional friendship and The top Chinese political advisor’s visit was of cooperation with the African Union and Ethiopia, profound significance to further deepening a new- Foreign Minister Yang Jiechi said. type China-Africa strategic partnership and During his stay in Addis Ababa, Jia, chairman strengthening unity and cooperation among of the National Committee of the Chinese People’s developing countries, he said. Political Consultative Conference, paid an official DEEPENING TRADITIONAL goodwill visit to Ethiopia and attended the opening FRIENDSHIP, POLITICAL TRUST ceremony of the 18th African Union (AU) summit. At various bilateral and multilateral meetings, Jia made clear on various occasions that mutual Jia elaborated China’s policies on Africa and put understanding, mutual respect, mutual support, 18 NEWS FROM CHINA /FEBRUARY 2012

mutual benefit and the pursuit of a win-win outcome was the source of the China-Africa friendship and served as a cornerstone of their relations, Yang said. The advisor said China highly valued its traditional friendship with Africa and would stand firmly with African nations. China also respected Africa’s choice of its own development path and supported its efforts to settle regional issues on its own as well as its drive for self-improvement, he said. Jia attended the inauguration ceremony of the 20-story African Union (AU) Conference Center and Office Complex, a new monument Jia Qinglin (R), chairman of the National Committee of the Chinese People’s Political Consultative Conference, meets with Jean Ping, chairperson of the to the long-standing friendship African Union Commission , in Addis Ababa, capital of Ethiopia, Jan. 28, between China and Africa 2012. (Xinhua/Ding Lin) constructed with the aid of the Chinese government. MAPPING OUT FUTURE OF CHINA- He also delivered a speech at the opening of AFRICA RELATIONS the 18th AU summit, saying the AU had become The rise of developing countries as a whole an important force for peace, stability and was an irresistible historical trend, Jia said. development in Africa and the world as a whole, He put forward a multi-point proposal on thanks to its growth over the decade. further development of China-Africa ties: Jia voiced his belief that Africa would make In politics, to increase high-level exchanges even greater and more solid progress along the with African countries, step up strategic dialogue path of strength through unity. and communication, share experiences on Lauding their traditional friendship, leaders governance and enhance mutual understanding of African countries voiced their thanks for and trust. China’s long-term support and aid and for the In the economy, to raise the level of bilateral construction of the AU headquarters in practical economic cooperation. China would particular, Yang said. continue to provide Africa with aid without any Ethiopian Prime Minister Meles Zenawi said added political conditions. the new AU headquarters was a symbol of the In culture, to vigorously expand people-to- rise of Africa. people exchanges and encourage non- They were of the opinion that, in Africa’s governmental organizations, academics, news process of development, China would always be media and institutions of higher learning from Africa’s trustworthy brother, friend and partner, both sides to interact and cooperate more closely. Yang said. NEWS FROM CHINA /FEBRUARY 2012 19

On international issues, to render each other competitive and reputable Chinese companies to support on issues concerning their respective invest in Africa, scale up assistance to African major and core interests. China would firmly countries and help African countries build greater support African countries in their efforts to capacity for independent development so they could uphold sovereignty and independence and deliver greater benefits to the local people. resolve African issues on their own. And China China took the problems existing in bilateral would firmly support African countries’ business cooperation seriously. China had and independent choice of development path would continue to take effective measures, Jia’s remarks were echoed by African leaders. together with African countries, to resolve them They said African countries needed to and enable African countries to benefit more from pursue a path of unity and self-improvement and cooperation, Jia said. boost cooperation with China in a bid to achieve African leaders were of one mind that common development. Africa-China economic and trade cooperation had played an important role in boosting local PROMOTING CHINA-AFRICA economic and social development and improving ECONOMIC, TRADE COOPERATION people’s livelihoods. China-Africa economic and trade Yang said 2012 was an eventful year for cooperation has grown rapidly over the past China-Africa relations, as the two sides would years and brought benefits to both sides. conduct closer contacts, and the fifth ministerial Jia said China was ready to further meeting of the Forum on China-Africa strengthen exchanges and cooperation with Cooperation (FOCAC), in particular, would be African countries in agriculture, infrastructure, held in China. personnel training, finance and other areas on China would seize the opportunity to the basis of equality, mutual benefit and common comprehensively advance China-Africa practical development. cooperation in various areas and strive to bring a He said China would encourage more brighter future for China-Africa relations, he said.

Chinese VP Meets Obama, Senior US Officials on Bilateral Ties by Xinhua writers Wu Liming, Qian Tong and Bai Jie

Washington, Feb. 15 (Xinhua) — Visiting benefit. Chinese Vice President Xi Jinping held meetings During his meeting with Obama, Xi, who with U.S. President Barack Obama, his counterpart handed over a letter from Chinese President Hu Joe Biden and other senior U.S. officials here on Jintao to Obama, said his visit was aimed at Tuesday. implementing the important consensus reached by Xi and the U.S. leaders vowed to grasp the presidents of the two countries on promotion opportunities and overcome difficulties, and to of bilateral ties. further promote the China-U.S. cooperative Xi said he would seek to build consensus, deepen partnership based on mutual respect and mutual the friendship and communicate with people from 20 NEWS FROM CHINA /FEBRUARY 2012

various walks of life in the United States. Xi reiterated Beijing’s position on the Taiwan issue, urging Washington to adhere to the spirit of the three joint communiques underpinning China- U.S. relations. He also called on the U.S. side to safeguard, with concrete actions, the peaceful development of ties across the Taiwan Strait and the overall development of China-U.S. relations. Receiving Xi in the Oval Office, Obama reiterated Washington’s adherence to the one-China policy based on the three joint communiques, according to a press release. Chinese Vice President Xi Jinping (L) meets with U.S. President Barack The United States does not support Obama at the White House in Washington, the United States, Feb. 14, 2012. (Xinhua/Xie Huanchi) any calls for “Taiwan independence,” Obama said, adding that his country wants to see the peaceful development of cross- communication. Strait relations. Leaders of the two countries should maintain In his opening remarks, Obama said his country close contact through exchanges of visits, meetings, welcomes the peaceful rise of China. telephone conversations, letters and other means, “I have always emphasized that we welcome and communicate with each other on major and China’s peaceful rise, that we believe that a strong pressing issues regarding China-U.S. relations in and prosperous China is one that can help to bring a timely manner, he said. stability and prosperity to the region and to the Xi proposed that the two sides make full use of world,” Obama said. various dialogue and consultation mechanisms to “We have continually tried to move forward provide fresh impetus to the bilateral cooperative on the basis of recognizing that a cooperative partnership. relationship based on mutual interest and mutual He said China supports the U.S. side’s efforts respect is not only in the interests of the United to send 100,000 students to China for studies and States and China, but is also in the interest of the pledged China’s efforts in advancing educational region and ... in the interest of the world,” he noted. exchange programs. Earlier on Tuesday, Xi was invited by U.S. Vice Meanwhile, Xi said that China’s position on President Biden to the White House for talks which Syria is aimed at safeguarding peace and stability lasted more than two hours. in the Middle East and is in line with relevant At the talks, Xi said China and the United international principles. States should promote “the strategic mutual trust” China, he said, will continue its constructive by respecting each other’s core interests and role in easing the tensions in Syria and accommodating each other’s major concerns. safeguarding peace and stability in the region. Xi urged the two sides to treat each other Biden, for his part, said the current U.S. candidly and to enhance dialogue and administration has decided to “renew and NEWS FROM CHINA /FEBRUARY 2012 21

intensify” the U.S. role in the Asia- Pacific region, and “the ties with China in particular.” “Our bilateral relations are the most important in the world, not only important to both countries, but also to the world at large,” he noted. He also said Xi’s visit would continue to sustain the high-level dialogue between the two countries. At midday on Tuesday, Xi was invited to attend a luncheon jointly hosted by Biden and U.S. Secretary of State Hillary Clinton. On Tuesday afternoon, Xi visited the Petagon and met with U.S. Chinese Vice President Xi Jinping (L) holds talks with his U.S. counterpart Joe Biden at the White House in Washington, the United States, Feb. 14, Secretary of Defense Leon Edward 2012. (Xinhua/Xie Huanchi) Panetta. Martin Dempsey, chairman of the Joint Chiefs of Staff, also attended the meeting. broadcast by major local broadcasters including Prior to the meeting, Panetta hosted a CNN. welcoming ceremony in honor of Xi in front of the On Wednesday, Xi is scheduled to visit the Pentagon, which was described by local media as a Capitol Hill and meet with U.S. Congress leaders, “rare” honor for a vice president of a foreign country. and to address a roundtable meeting of business On late Tuesday afternoon, Xi addressed a leaders. business symposium, and on Tuesday evening, Xi On Wednesday afternoon, he will leave was invited to attend a welcoming banquet hosted Washington for Muscatine, Iowa to meet his old by Biden. friends he got to know 27 years ago. Xi’s visit has generated extraordinary interest Xi started his five-day official visit to the United from international and U.S. media. The photo States on Monday as a guest of Biden. session of his meeting with Obama was live

Chinese Vice President Attends Luncheon Hosted by Biden, Clinton

Washington, Feb. 15 (Xinhua) — Chinese Vice- “better” on human rights. President Xi Jinping attended a luncheon hosted Xi, while acknowledging the enormous by his U.S. counterpart Joe Biden and U.S. challenges faced by the Chinese government, Secretary of State Hillary Clinton here on Tuesday. emphasized tremendous and well-recognized Addressing the luncheon, Xi defended China’s achievements made by China in its human rights human rights record, saying there’s “no best,” only efforts over the past 30 years. 22 NEWS FROM CHINA /FEBRUARY 2012

“Given China’s huge population, considerable regional diversity and uneven development, we are still faced with many challenges in improving people’s livelihood and advancing human rights,” Xi said. “The Chinese government will always put peoples’ interests first and take seriously people’s aspirations and demands,” he added. “We will, in light of China’s national conditions, continue to take concrete and effective policies and measures to promote social fairness, justice and He also conveyed firm belief that China and harmony and push forward China’s course of the United States have the wisdom and capacities human rights,” Xi said. needed to maintain and develop their cooperative China is ready to conduct candid, constructive partnership based on equality and mutual benefit. dialogue and exchanges on human rights with the Xi also expressed hope that the two countries United States and other countries on the basis of make their ties a model for relations between equality and mutual respect, so as to enhance countries of different social systems, historical and understanding, bridge differences, learn from each cultural backgrounds, and mode of development. other and make improvements together, the vice- Biden and Clinton, for their part, said Xi’s visit president said. falls on the 40-year anniversary of U.S. President Besides defending China’s human rights Richard Nixon’s historic, ice-breaking trip to China record, Xi also stressed that China-U.S. ties have in 1972. become one of the most important, dynamic and That historic diplomatic step made by China promising bilateral relationships in the world. and the U.S. has fundamentally changed their ties “For China and the United States, the world’s and brought huge benefits to the two countries and biggest developing country and the world’s largest the world, they said. economy, there is no beaten track to follow when U.S.-China cooperation constitutes an integral it comes to establishing a new cooperative part of solving global challenges and has great partnership which is an important and innovative influence on the development of the world in the job with far-reaching consequences,” the Chinese 21st century. vice president said. The U.S. is ready to work with China to It is quite common that divergences exist promote communications, strengthen mutual trust between the two countries in human rights and and further boost development of their cooperative other regional and international issues, Xi said, partnership. adding that the key to handling the differences Xi arrived in Washington on Monday for a five- properly is mutual respect, noninterference in each day official visit to the United States. He met with other’s internal affairs and candid President Barack Obama on Tuesday. communications. NEWS FROM CHINA /FEBRUARY 2012 23

Chinese VP Hopes U.S. Presidential Vote Won’t Have Negative Impact on Sino-U.S. Ties

Washington, Feb. 13 (Xinhua) — Visiting Chinese Vice President Xi Jinping here on Monday called on the U.S. side not to let its presidential elections negatively affect the development of Sino-U.S. ties. “This year marks the election year of the United States. I believe no one of insight from the U.S. side would like to see that the election factors would have a regrettable impact on the development of ties between the two countries,” Xi said during a meeting with several former senior U.S. officials. Chinese Vice President Xi Jinping (central) meets with several former senior Among these former U.S. officials U.S. officials in Washington, capital of the United States, Feb. 13, 2012. Among the former officials are former U.S. secretaries of state Henry Kissinger and are former U.S. secretaries of state Madeleine Albright, former U.S. treasury secretary Henry Paulson, former Henry Kissinger and Madeleine U.S. national security advisers Zbigniew Brzezinski, Brent Scowcroft and Albright, former U.S. treasury Sandy Berger, and former U.S. secretary of labor Elaine Chao. (Xinhua/Lan Hongguang) secretary Henry Paulson, former U.S. national security advisers Zbigniew Brzezinski, by the two sides are the institutional guarantee; Brent Scowcroft and Sandy Berger, and former the mutual understanding and strategic trust are U.S. secretary of labor Elaine Chao. important prerequisites; the innovative spirit Noting that this year also marks the 40th keeping abreast of times is the driving force, he anniversary of the visit of then U.S. President said. Richard Nixon to China and the issuance of the “All the experience is well worth cherishing Shanghai Communique, Xi said that the and should continue to be followed,” Xi said. tremendous development of bilateral ties over the Secondly, he said both sides should adopt a past four decades has far exceeded the expectations long-term perspective. of people. To build a cooperative partnership between During the meeting, Xi, who arrived here China and the United States is a great try in the earlier on Monday, made a four-point proposal on establishment of ties between world powers, which how to enhance the Sino-U.S. relationship. concerns the benefits of people of both countries Firstly, he said, the two sides should regard and the goodness of the whole world at large, Xi history as a mirror. said. The four-decade-long development of China- Thirdly, he said, the two sides should respect U.S. relations has proved four pieces of historic each other and build mutual trust. experience: the common interest of both sides is China firmly adheres to the path of peaceful the impetus; the three joint communiques signed development, and “we hold frank, sincere and 24 NEWS FROM CHINA /FEBRUARY 2012

consistent views to the development of China-U.S. billion U.S. dollars last year, which reflects the relations,” Xi said. essential feature of the economic complementarity “We hope the U.S. side could view China in of the two countries. an objective and rational way, and adopt concrete “We should deal with friction and differences measures to promote mutual trust, especially to in bilateral economic and trade cooperation in the properly and discreetly handle the issues spirit of seeking mutual benefits and win-win concerning the core interests of China,” said the results through a positive and constructive way,” Chinese vice president. Xi said. Fourthly, the two sides should achieve mutual Monday’s meeting was Xi’s first major event benefits and win-win results, he said. after he arrived in Washington for an official visit Bilateral trade volume reached more than 440 to the United States.

III. DOMESTIC AFFAIRS

President Hu Joins Public to Celebrate Chinese Lunar New Year

Beijing, Jan. 22 (Xinhua) — Chinese President store would promote its fine traditions so to better Hu Jintao visited grassroots urban and rural areas serve the people. in Beijing on Sunday, the eve of Spring Festival, extending greetings to the people and celebrating with them Lunar New Year. Hu arrived at the old style Qianmen shopping street, south of the Tiananmen Square, waving hands to the passersby, who were surprised by Hu’s appearance and then responded with jubilancy. The street was once a busy commercial center in the old days and the government rebuilt it for the 2008 Olympic Games as a sightseeing and shopping destination with Beijing’s characteristics. The street has more than 20 time-honored brands and stores, and an antique-style trolley car. Chinese President Hu Jintao looks around in the kitchen of army veteran Shao Qicheng’s home in Tianxianyu Village of the Huairou District in Hu walked into a 270-year-old store Beijing, capital of China, Jan. 22, 2012, examining the preparation of the famous for braised pork, praising its long- family’s Lunar New Year reunion dinner. Hu visited grassroots urban term high quality produce and honesty and rural areas in Beijing on Sunday, the eve of the Spring Festival, extending greetings to the people and celebrating with them the Chinese in doing business. Hu said he hoped the Lunar New Year. (Xinhua) NEWS FROM CHINA /FEBRUARY 2012 25

Hu then inspected the whole street aboard a livelihood, in a bid to let them spend their trolley car, and urged officials of Beijing remaining years in comfort. Municipality to develop the service industry in the Hu then joined the crowd on the village square city to meet the people’s material and cultural while villagers were watching Chinese traditional needs. opera. The atmosphere went into a climax when After that, Hu went to a food processing and villagers were performing dragon dance to delivery company in Shunyi district in the city’s welcome the Year of Dragon. northeastern suburb, where he inspected the “Fellow villagers, today is the eve of Spring processing line and food safety check laboratory, Festival, I wish you a happy New Year!” Hu told urging the company to make strict checks on food the crowd. “I’m happy with the improvement of safety. your living standard!” At the last stop of his tour, Hu went to a small Hu added that the village of Tianxianyu near the Great Wall in the Central Committee attaches great importance to city’s northern mountainous area, experiencing the the issues concerning agriculture, rural area and traditional rural New Year circumstances which farmers, and will continue to strengthen the related feature red lanterns, Chinese knots, and New Year favorable policies. scrolls on the gate of every house. Before leaving the village, Hu set firecrackers Visiting the home of Shao Qicheng, an 85-year- with children in the village. old army veteran, Hu listened to Shao’s war Spring Festival is the most important festival experiences, praising Shao and other veterans’ in China and an occasion when all family members contribution to the country and the people, and get together, just like Christmas in the West. This promised that the authorities will take care of their year Spring Festival falls on Monday, Jan. 23.

Premier Stresses Unwavering Reform, Rural Democracy

Guangzhou, Feb. 5 (Xinhua) — “Opening-up and reform should be Chinese Premier Wen Jiabao has implemented unswervingly, or there will only pledged to unwaveringly push be a dead end,” said Wen, citing former Chinese forward opening-up and reform in leader Deng Xiaoping, who made a famous the face of current challenges and difficulties, while calling for protection of farmers’ rights to vote to improve rural community administration. At a time of global uncertainties, furthering reform is still the only key to solving all problems, said Wen while visiting Guangdong, a southern province that took the Chinese Premier Wen Jiabao waves to the crowd as he visits Shuili Village in Guangzhou, south China’s Guangdong Province, Feb. 4, 2012. Premier lead in China’s opening-up and Wen made a visit to Guangdong, a southern province that took the lead in reform, from Friday to Saturday. China’s opening-up and reform, from Friday to Saturday on an inspection tour. (Xinhua/Yao Dawei) 26 NEWS FROM CHINA /FEBRUARY 2012

speech during his inspection tour of south China on a compensated, voluntary basis and be 20 years ago. conducted in accordance with the law, it said. Wen has called for determination and Illegal land grabs caused mass protests in boldness to push forward reform and opening- China last year. A dispute over land use, up, making long-term reform and opening-up financing and elections in Wukan village in the plans for certain areas in particular. southern province of Guangdong led to large- Wen highlighted the need to ensure farmers’ scale protests by villagers against local voting rights and the direct election of village- authorities. level leadership, which he labeled an important Wen also called for better planning for rural task for local authorities. construction and curbing environmental He said self-governance is the only pollution in the countryside. appropriate way for improving rural community During a meeting with owners of logistics, administration, noting that local affairs should export and import enterprises, Wen said China be decided by local villagers. faced grim external demands, but that the There should be a strict legal system and country’s foreign trade policy will remain regulations for the election, as well as election generally stable while adjustments will be made procedures that are open, fair and transparent, to encourage trade growth. he said. China should help stabilize the European Wen also called for more efforts to ensure market, which is actually helping China itself, farmers’ rights in land, which he said land as as Europe has been both China’s largest export property of the farmers “have not been fully market and the biggest source of technical protected.” imports, Wen added. Unauthorized expropriation of farmland has The premier’s trip to the southern province been a common problem, causing many aimed to solicit opinions and feedback on complaints and even mass disturbances, said government work ahead of the two annual Wen, who reiterated his firm stance on the issue. sessions of the National People’s Congress (NPC) In urban planning, more infrastructure and the National Committee of the Chinese funding should be allocated to improving soil People’s Political Consultative Conference, which fertility of suburban land, he added. are typically held in March. China’s first policy document for 2012, jointly The State Council also announced last week issued last week by the Central Committee of that it will send drafts of the annual government the Communist Party of China and the State work report to local governments and some Council, China’s cabinet, has also pledged central departments in order to solicit opinions, acceleration in revisions of relevant laws to with the report to be delivered at the opening of improve its policies regarding rural land. the annual session of the NPC, China’s top The transfer of land use rights must be based legislature.

China Vows Enhanced Agricultural Investment to Stabilize Output

Beijing Feb. 1 (Xinhua) — China’s central continue to step up investment and subsidies for authorities on Wednesday said the nation will agriculture this year in order to stabilize grain NEWS FROM CHINA /FEBRUARY 2012 27

production. 2011. The figure represented a year-on-year A document publicized Wednesday by the increase of 4.5 percent and marked the eighth Central Committee of the Communist Party of consecutive year of growth for the country’s grain China (CPC) and the State Council, or China’s output. cabinet, said that the country will continue to However, the document warned the Party expand its fiscal budget for agriculture in 2012 and should remain clear-minded despite the direct more of the country’s fixed-asset investment achievements as the current severe and toward the sector. complicated situation of the world economy and The document also said the country will boost the impact of climate change pose risks and investment in agricultural science and technology. uncertainties to the nation’s agricultural It said the government should play a leading role development. in investment for agricultural science and ensure Meanwhile, the shortage of arable land and that the investment will create “significantly” faster fresh water present challenges to the sector, the growth compared to fiscal revenues. document said. The country will also offer more subsidies for According to the government paper, efforts major grain-producing areas and farming will be further made to stabilize the raising of live cooperatives, with direct subsidies for farmers to pigs, as a scarcity of pork last year pushed up be increased, the document said. inflation. It said the country would further improve the The country will encourage banks to step up output capacity of China’s 800 major grain- lending to the rural regions and support producing counties and support the building of commercial banks to set up township outlets. It production bases for vegetables, cotton, edible oil will continue to support micro-credit businesses crops, and sugar. to farmers while encouraging banks and rural Government data showed China’s grain output credit cooperatives to extend more credit to small rose to a record high of 571.21 million tonnes in and micro-sized firms in the counties.

Government “Must Utilize Blogs Better” by Zhao Yinan and Wang Huazhong, China Daily

Beijing Jan. 19 (Xinhuanet) —The government should better utilize micro blogs to provide information and improve transparency, a senior official said. In the latest call for Party and government agencies to reach an increasingly Internet-savvy population, Wang Chen, minister of the State Council Information Office, said on Wednesday that agencies should open micro blog accounts to better understand public opinion and to respond to issues of public concern. Wang Chen, minister of the State Council Wang Chen, minister of the State Council Information Office (Xinhua Photo) 28 NEWS FROM CHINA /FEBRUARY 2012

Information Office, talks to reporters at a news said making a government micro blog popular is conference in Beijing on Wednesday. The coming not easy. year will see an enhancement of China’s The bureau opened its micro blog in November engagement with the international community so 2010 and has so far posted about 170 articles of that the world can have a better understanding of information and has 48,000 followers. the country, Wang said. [Photo/China Daily] Netizens don’t respond much to our postings Describing micro blogs as an “important and we are trying to overcome this problem, Zhang platform” for information and “a bridge” between told China Daily earlier. the government and the public, Wang urged An industry expert said government agencies officials to keep their blogs up to date. should not open micro blogs just for show. “Government micro blogs should provide “The government should make full use of information useful to the people, such as existing communication channels, while keeping information about commerce, daily life and pace with the latest technology,” said Zhu Lijia, a education,” he said. professor at the Chinese Academy of Governance. Micro blogs are increasingly popular in China, Internet Supervision which has more than 500 million Internet users, more than any other country and far greater than With the growing popularity of micro blogs, the total population of the European Union. Wang said regulations, such as registration, are More than 330 million Chinese people are needed to ensure the “rapid and healthy growth registered micro blog users and at least 150 million of the Internet”. entries are made daily. A policy was introduced in Beijing last month Government agencies and Party departments requiring the names of micro bloggers to be at all levels have opened more than 50,000 micro registered. This was later extended to other major blog accounts, and many of them help officials cities, including Shanghai and Guangzhou. communicate with the general public. Wang said the policy now only requires that Wang cited one particular micro blog as an new micro blog users register “backstage” with example. their real name. This means that website Chen Shiqu, head of the Ministry of Public administrators will see their names instead of Net Security’s anti-trafficking task force, “has done users. tangible things for the public”, Wang said. “The micro blog has changed the way we Chen opened a micro blog on Dec 12, 2010 after exchange information,” but irrational, negative being told that it would help authorities combat and harmful opinions can also be expressed, he human trafficking, and this turned out to be true, said. he said. More than 2,000 tip-offs have been “Pornography, fraud and rumors” can be submitted to the blog, he said. found on the Net and this can harm society, he Chen also used the platform to raise public said. awareness of various legislation and show how China established the State Internet his office can help reunite families. Information Office in May last year to oversee Chen’s micro blog has 1.36 million followers. cyberspace. The office, headed by Wang, aims to These are people that he could not reach by coordinate and supervise online content as well as conventional means, he said. investigate and punish websites violating laws and Zhang Jianshu, director of information service regulations. at the Beijing Municipal Health Bureau, however, Zhang Yan contributed to this story. NEWS FROM CHINA /FEBRUARY 2012 29

China’s Economy to See Soft Landing

Beijing, Feb. 13 (Xinhua) — Experts says that reserve requirement ratio by 50 basis points for the China will manage to weather adversity stemming first time in three years. from thwarted investments and exports to achieve The year-on-year growth of the consumer price a soft landing in its macroeconomy this year. index (CPI), a main gauge of inflation, eased to The country’s economy is dotted with 4.1 percent in December from a peak of 6.5 percent uncertainties in 2012, as its stern property curbs in July. have weighed on rises in fixed-asset investment In January, the CPI rose 4.5 percent year-on- and the stiff global headwinds have choked off its year, the highest in three months, mainly boosted exports. by food price surges in January amid the traditional Pan Xiangdong, chief economist with China Chinese Lunar New Year holiday, said Lian Ping, Galaxy Securities, said in an interview with Xinhua chief economist at the Bank of Communications. Monday that China’s economy had slowed in 2011 At meetings held last week to solicit opinions under the government’s macroeconomic policies from representatives of different sectors of society and sluggish external demand. on the draft of a government work report, Chinese China’s economy expanded by 9.2 percent in Premier Wen Jiabao said that the government is 2011 from a year earlier and 8.9 percent year-on- paying close attention to the economic situation in year in the fourth quarter, according to the January and the first quarter of this year. National Bureau of Statistics (NBS). The quarterly “We have to make a proper judgement as early growth was the slowest in 10 quarters. as possible when things happen and take quick In mid-January, the NBS said China’s action,” Wen said, adding fine-tuning of macro investment contributed to 54.2 percent of GDP policies should begin in the first quarter. growth in 2011, slightly lower than a year earlier. Pan said that the country’s macroeconomic Consumption’s contribution was 51.6 percent, policies may be relaxed to some extent, but will up from 37.3 percent in 2010, whereas net export’s still be functioning “under the framework of being contribution was negative 5.8 percent. prudent.” “There is not likely to be any dramatic decline As to China’s fixed-asset investment, Huang in China’s economy this year and a soft landing believed that it will slide further this year due to will be achieved,” Pan forecast. the government’s stern curbs on the property He said one important reason for this is that market, and the year-on-year growth of investment the country’s consumption will continue to will slow to about 19 percent. maintain the momentum of stable and rapid China has imposed a raft of measures aiming growth. to calm property prices, including higher down Huang Lin, an analyst with Dongwu Securities, payments, limits on the number of houses that echoed Pan’s view, saying that consumption will people can own, the introduction of a property rise at a faster pace this year due to the tax in some cities, and the construction of low- government’s stimulation policies and a drop in income housing. general price levels. China will unswervingly maintain this The central bank made countering inflation its regulation of the property market next year so that priority with tightened monetary measures last housing prices return to a reasonable level, year before unleashing signals of easing these according to decisions made at the country’s measures in December, when it reduced banks’ central economic work conference in December. 30 NEWS FROM CHINA /FEBRUARY 2012

A statement released after the annual economic in the housing market is solid in the long run,” the work conference also said that China will speed premier admitted. up the construction of ordinary commercial Jiang Chao, chief macroeconomic analyst for residential housing to increase supply and promote Guotai Junan Securities, reckoned there have been healthy development of the property market. signs that the country’s curbs on the property sector Wen said last week that the government will will be relaxed this year, a move which would be work unwaveringly to bring housing prices back conducive to the industry’s improvement. to “reasonable levels” while promoting the long- “I see the GDP growth rate slowing to around term, stable and healthy development of the 8.4 percent this year, but judging from the current industry. situations of government policies and the economy, “As a country that is rapidly industrializing the odds of a hard landing for China’s economy and urbanizing with 1.3 billion people, demand are slim,” said Jiang.

Economy Throttling Down — Rising domestic spending easing effect of sluggish exports on China’s economy by Hu Yue, Beijing Review

Despite the weakness of Western economies, the Chinese economy still achieved a robust growth rate of 9.2 percent in 2011. The GDP totaled 47.16 trillion yuan ($7.45 trillion) last year, said the National Bureau of Statistics (NBS). But the growth rate is lower than the 10.3 percent of the previous year. Also, in the last quarter of 2011, the GDP growth dropped to 8.9 percent from 9.7 percent, 9.5 percent and 9.1 percent, in the first, second and third quarters. “The quarter-by-quarter weakening was partly due to our economic rebalancing, but it’s in line SUFFICIENT SUPPLY: Residents in Luoyang, Henan Province, buy with the government’s macro-control vegetables at a community market (ZHANG GUANGHUI) goals,” said Ma Jiantang, Commissioner of the NBS. The fourth-quarter Yao Jingyuan, a researcher with the Councilor’s growth rate remains within a reasonable range, Office of the State Council, said the economic he said. slowdown is not necessarily a bad omen for China. NEWS FROM CHINA /FEBRUARY 2012 31

“It is an acceptable outcome as the economy tries to transform its growth model,” said Yao. “And it’s time to address the imbalance problem glossed over during past boom times.” “The slowdown is moderate and controlled, and is necessary for curbing inflation and restructuring the economy,” said Zhang Xiaojing, a researcher with the Chinese Academy of Social Sciences (CASS). “It also indicates that the country has sped up the transition from quantity-oriented growth to quality-led development.” Despite the slowdown, the fundamentals for the country’s stable TO BE SAILING: Cargo ships being built in Nanjing, Province (WANG QIMING) and relatively fast economic growth in the medium to long term haven’t Meanwhile, Chinese consumers have opened changed, said Ma. The economy still has deep up their wallets to fill in the blank left by falling growth potential thanks to ongoing urbanization, exports. While consumption accounted for 51.6 industrialization and market reforms. percent of last year’s GDP, the contribution of net Li Wei, President of the Development Research exports was -5.8 percent, according to the NBS. Center under the State Council, agreed. Retail sales of consumer goods stood at 18.12 “Two major drivers are helping to inject fresh trillion yuan ($2.86 trillion) in 2011, rising 17.1 steam into the economy: continued urbanization percent compared with 2010. that creates enormous domestic demand and Zuo Xiaolei, chief economist with the Beijing- industrialization that requires robust investments,” based China Galaxy Securities Co. Ltd., said the Li said. rapid expansion of the middle class and their “For the economy in 2012, we should still be full increased spending could give the economy a boost, of confidence,” said Ma. China will maintain its despite a prolonged downturn in Europe and the proactive fiscal policy and prudent monetary United States. policy this year. Per-capita disposable income of China’s urban residents climbed 14.1 percent year on year in 2011 Driving Forces to reach 21,810 yuan ($3,445), while per-capita Since exporters took a heavy blow from sluggish net income of farmers was 6,977 yuan ($1,102), Western economies, China’s economic growth was up 17.9 percent year on year, according to the NBS. predominantly homegrown last year. “Since it takes time to complete the social safety Buoyant investment helped put a solid floor net, the road to a consumer-oriented growth model under economic growth. Investment in fixed assets will depend critically on real wage growth,” she surged 23.8 percent from the previous year to reach said. 30.19 trillion yuan ($4.77 trillion) in 2011, which The Ministry of Human Resources and Social contributed 54.2 percent to last year’s GDP growth, Security said 24 provinces raised the minimum said the NBS. wage standard by an average of 22 percent last 32 NEWS FROM CHINA /FEBRUARY 2012

year. be compensated by the government’s ambitious In September 2011, the government raised the affordable housing plans,” said Fan. cut-off point for personal income tax to 3,500 yuan “Investments will remain supported by solid ($553) from 2,000 yuan ($316), which facilitated corporate profits and gradually easing monetary wage growth and boosted consumption. environment,” said Lu Zhengwei, chief economist Progress in improving social security could also with the Industrial Bank Ltd. help fuel consumption. “Infrastructure construction is likely to slow A pension program benefiting the country’s 50 this year due to decreased spending on railways,” million unemployed urban residents that launched said Lu. The Ministry of Railways recently on July 1, 2011 has been implemented in 60 percent announced that China plans to invest 400 billion of the cities and townships. yuan ($62.99 billion) on railway infrastructure construction in 2012, representing a slight decline Promising Prospect from the 469 billion yuan ($74.1 billion) in 2011. Although a downward trend of GDP growth “But massive input in water resources and energy is inevitable due to external uncertainties and development are already in the pipeline,” he said. domestic rebalancing, China’s economy will Qu said a new driver will be the strategic continue steering a steady course of growth. emerging industries, including information Inflation, an acute headache for China in 2011, technology and new materials. “A key target in will calm down. the 12th Five-Year Plan (2011-15), was to boost “Consumer prices will taper off markedly in those industries to account for 15 percent of GDP 2012 as the economy slows, food prices retreat and by 2015,” he said. imported inflation falters,” said the Bank of China In its Global Economic Prospects 2012 released in a recent report, which predicted that the CPI on January 18, the World Bank predicted the will rise around 3.5 percent in 2012. Chinese economy will grow 8.4 percent in 2012 Zhuang Jian, chief China economist with the and 8.3 percent in 2013. Asian Development Bank, also anticipated a China is vulnerable to downturns in the United downward trend in the overall price level in 2012 States and Europe, but a healthy balance sheet, as a result of diminishing carry-over effects and slowing inflation and massive foreign reserves the government’s prudent monetary policy mean China can ease aggressively, if necessary, direction. said the Bank of America Merrill Lynch, in a recent “There might be a certain degree of fluctuation report. in monthly figures, but the overall CPI growth will The bank expected China to avert a hard stay around 4 percent,” he said. landing and forecasts GDP growth of 8-9 percent Investment remains a pillar contributor to the in 2012. macro-economy, said Qu Hongbin, chief China “Affordable housing will be a crucial factor in economist with the HSBC. restarting the growth engine. We don’t doubt the “China can use affordable housing and public Chinese Government’s determination in building welfare projects as a powerful buffer to offset the more affordable housing,” said Lu Ting, a Hong slowdown in private property,” he said, adding Kong-based economist with the Bank of America that it has already begun. Merrill Lynch. Fan Jianping, a researcher with the State Dong Tao, chief regional economist for non- Information Center, agreed. “An expected Japan Asia at Credit Suisse, expected a soft landing slowdown in commercial housing construction will in China as private consumption holds up because NEWS FROM CHINA /FEBRUARY 2012 33

of salary increases, tax cuts and continued Zhang expected China’s foreign trade to grow urbanization. He predicted quarterly growth in 10 percent in 2012, much slower than the 22.5 2012 will be about 8-8.5 percent. percent in 2011. “If the economy weakens any further, we Shen Jianguang, Greater China chief economist would expect future stimulus to be more focused at Mizuho Securities Asia Ltd., believed another on consumption than infrastructure. In the cause for concern lies in the rapidly cooling beginning, a fiscal stimulus would likely increase property markets. funding for affordable housing and provide “Stagnating property investments have sent a consumption subsidies,” he added. chill throughout relevant industries such as Wang Tongsan, Director of the Institute of appliances and cement,” he said. “Meanwhile, Quantitative and Technical Economics at the lagging land sales are making a dent to fiscal CASS, said China has better fiscal and financial capacities of local governments.” resources than major developed economies, so it “Other risks looming over the economy include can avoid a balanced recession. growing debts of local governments and rampant Wang expected this year’s economic growth is private lending,” said Zhu Baoliang, a researcher likely to be 8-9 percent and CPI will be controlled at the State Information Center. within 4 percent. “Properly dealing with those problems will be This year’s growth might be the lowest since key to economic stability this year,” he said. 2003, but it would still be the world’s fastest among To soothe abounding growth worries, large economies, said Wang. policymakers have cautiously handed out incentives on a selective basis, including favorable Potential Risks policies for smaller businesses in terms of credit The greatest risk for China this year is external, support, taxation and government purchases. as the European debt crisis is likely to deteriorate, On November 30, 2011, the central bank causing further pains for Chinese exporters, said announced plans to decrease the ratio of deposits Peng Wensheng, chief economist at the China that banks must set aside in reserve by 0.5 International Capital Corp. percentage points for the first time in three years. Wang Tao, chief China economist with the “Waning inflation has allowed the country to Swiss investment bank UBS, also struck a note of stop tightening monetary policy, but the speed and caution. Wang expected China’s export growth to format of further loosening will largely depend on drop to zero in 2012, which would trim 1.4 how domestic and overseas situations develop,” percentage points off GDP growth, although she said Guo Tianyong, Director of the Research Center does not think the trade surplus will completely of China’s Banking Industry, Central University vanish in 2012. of Finance and Economics. “But looking from a global perspective, the “Despite falling CPI, long-term inflation shrinking trade surplus should be seen as a welcome pressures remain, forcing policymakers to keep a development, an evidence that China has made vigilant eye on consumer prices,” said Fan. progress in redressing trade imbalance,” she added. Fan noted that domestic inflation will be an “The export situation will be grim in 2012, inevitable trend, as resource prices, labor costs, and especially in the first half of the year,” said Zhang land prices head north. “China’s broad money Xiaoqiang, Vice Chairman of the National supply is almost two times that of the GDP, the Development and Reform Commission, at a recent highest ratio among major global economies. The forum held in Beijing. excess liquidity may easily reignite inflation once 34 NEWS FROM CHINA /FEBRUARY 2012

regulatory controls become loose,” he said. the guard against inflation as the Lunar New Year “The United States is also likely to start a third spending may trigger a rebound in food prices. round of quantitative easing, paving way for “The persistent conflict between expanding China’s inflation to come back,” he added. population and shrinking arable land will push Fan suggested China strengthen supplies of up grain prices,” he said. “International agricultural products by improving farming commodities prices are also likely to bounce back technologies, logistics efficiency and rural finance. due to recovering demand in emerging “On the liquidity front, there is limited room economies.” for policymakers to aggressively ease the monetary “Those factors may drive CPI back to no less policies,” he said. than 5 percent this year, and possibly above 6 Wang Jian, Secretary General of China Society percent in the fourth quarter,” he added. of Macroeconomics, said it is too early to lower

Bigger and Better Health Care System — China aims to provide a universal health care system to its people by Yin Pumin

China’s basic medical insurance program Chen said at a national health work conference on covered more than 95 percent of its population, or January 5-6. In 2003, 55 percent of urban citizens about 1.28 billion, by the end of 2011, said Minister and 21 percent of rural residents were covered. of Health Chen Zhu. In recent years, China has invested heavily in “Coverage in rural areas reached 97 percent, health care and community-level basic medical exceeding the 89 percent reported for urban areas,” services. In 2010, spending on health care accounted for 28.6 percent of the national fiscal expenditure, Chen said. The percentage of total medical costs paid by patients decreased from 60 percent in 2001 to 35.5 percent in 2010, with the government budget and social funds covering the rest. At present, China’s basic medical insurance is, for the most part, comprised of three separate arrangements: the new rural cooperative medical system, the basic medical insurance scheme for urban residents and the basic medical insurance scheme for urban employees.

GRASSROOTS SERVICE: A doctor examines villagers’ health records Achievements at a clinic in Huayuan Village in Jinzhai County, Anhui Province, on September 3, 2011 (GUO CHEN) For more than 30 years after the NEWS FROM CHINA /FEBRUARY 2012 35

founding of the People’s Republic of China in 1949, billion) in improving the health care system in those living in urban areas were entitled to nearly 2009-11, 280 billion yuan ($44 billion) more than free medical services. the original budget. It also raised the proportion However, when China began its economic of health care spending to the national fiscal restructuring in the early 1980s, the old system was expenditure to 5.35 percent in 2011, up from 4.57 dismantled as the country attempted to switch to percent in 2008. a market-oriented health care system. In the past three years China has set up But soaring medical bills plunged many into diversified medical insurance systems for urban poverty and made medical services less affordable employees, urban residents who do not work or to ordinary citizens. are self-employed, and rural residents. Meanwhile, The Chinese Government admitted in 2005 that annual medical treatment allowances for both the previous reform was “basically unsuccessful,” urban and rural residents rose to 200 yuan ($31.69) and started a new round of reform in 2009. per capita in 2011 from the previous 120 yuan In April 2009, China unveiled a blueprint for ($19.01). its health care system reform over the next decade. Rural health care services have been upgraded The plan’s eventual goal is to establish a universal over the past years as the government allocated more health care system for the country by 2020, giving than 40 billion yuan ($6.34 billion) to support the people access to affordable public hospitals, clinics construction of medical institutions in the countryside. and other health care facilities as well as extensive Under the new rural cooperative medical coverage from public medical insurance. system, China has raised the medical subsidies “The core principle of the reform is to provide available to rural residents from 200 yuan to 240 all citizens with basic health care as a public yuan ($35.14) per year per person, according to service, and to make the health care system more the MOH. public-oriented,” said Liu Xinming, an official with The new rural cooperative medical system has the Department of Policies and Regulations of the been on trial since 2003. MOH statistics show that Ministry of Health (MOH). more than 830 million rural residents had joined The Chinese Government also established a the new system by the end of 2011. more detailed three-year plan. It committed to According to the ministry, the Central investing 850 billion yuan ($124.45 billion) to Government is planning to provide additional promote the accessibility, equity and quality of coverage for people suffering severe diseases in health care services available to the public by the rural areas starting this year and raise the medial end of 2011. Major reform measures included reimbursement rate to 90 percent. expanding the health care insurance umbrella, “The new rural cooperative medical system will reforming public hospital, establishing an essential cover more diseases by the end of this year, drug system and improving the quality of the including leukemia, congenital heart diseases and healthcare provided. six other conditions,” said Minister Chen. Some “Lack of government investment has long been regions will also be covered for cancers and the major cause of China’s ailing health care system. vascular diseases. The latest reform has changed the situation,” said Experts predict the new system will benefit Xu Guangjian, Deputy Dean of the School of Public about 10 million households. Assuming each Administration at the Renmin University of China. household has an average of four to five people, According to Vice Minister of Finance Wang about 40 to 50 million people will benefit from it. Jun, the country invested 1.13 trillion yuan ($179 “Despite rapid development, the country still 36 NEWS FROM CHINA /FEBRUARY 2012

has a long way to go to establish a high-standard percent mark-up. health care system,” said Yao Lan, a professor at But the efforts have failed to achieve their the School of Medicine of Huazhong University of expected results. Science and Technology in Zhejiang Province. Last November, a survey conducted by national “Currently, there is still a big gap between rural broadcaster CCTV exposed a disturbingly large and urban health care systems. Even the urban discrepancy between the cost of producing one system needs improvements such as raising the particular drug and the prices charged for it in reimbursement ratio, covering more drug hospitals. expenditures and providing more medical A pharmaceutical Clindamycin Phosphate services,” he said. Injection product that sold for 12.65 yuan ($1.85) According to the MOH, China will work to in several hospitals in Beijing had a gross profit reduce household shares of total medical margin as high as 2,000 percent, since its ex-factory expenditures to less than 30 percent by 2015. price was only 0.60 yuan ($0.09), claimed CCTV In addition, the ministry has pledged greater in its program Weekly Quality Report. The report efforts to encourage investment in the medical sparked widespread public outrage. industry, particularly in non-basic health care “In China, most public hospitals are unable to sectors, in the 12th Five-Year Plan (2011-15) period. get sufficient funding from the government. Usually, government allocations only account for Price Curbs about 10 percent of the operating cost of a hospital, Soaring prices of prescription drugs is a major while the other 90 percent must be self-raised,” public complaint in China. said Zhuang Yiqiang, Vice Secretary General of In response, the National Development and the Chinese Hospital Association. Reform Commission (NDRC), the country’s top As a result, doctors at public hospitals have to price regulator, has managed to lower retail prices generate income for the hospitals by prescribing of medicines 28 times since 2005. highly profitable, sometimes unnecessary, drugs In March 2011, the NDRC announced cuts in and treatment, which not only wastes medical retail prices averaging 21 percent and affecting 162 resources but also leads to prohibitively expensive antibiotics and cardiovascular system drugs. The medical bills. reduction was expected to help patients save nearly At the national health work conference, 10 billion yuan ($1.58 billion) every year. Minister Chen said that hospitals’ reliance on sales Last August, the NDRC announced a reduction of medicine for revenue, which is blamed for over- in the maximum retail prices of 82 medicines for medication and over-diagnosis in public hospitals, the hormonal, endocrinal and nervous systems with has severely hampered the medical system reform. an average reduction rate of 14 percent. According to a timeframe released by Chen, China also released its National Essential the separation of medical treatment services and Medicines List in August 2009. Prices of the medicine sales in public hospitals will be completed essential drugs are under government control. The by 2015. Central Government sets reference prices, based Chen said further reform will be carried out on which provincial governments set the purchase on a trial basis in 300 county-level hospitals this prices of the drugs in their jurisdiction. year, and all county-level hospitals will hopefully Public medical and health facilities at the local adopt the diagnosis-related group system by 2013. levels are required to sell the drugs at the purchase The practice will be adopted in all public hospitals prices. Previous prescriptions included a 15- by the year 2015. NEWS FROM CHINA /FEBRUARY 2012 37

Spring Steps to Promote Traditional Culture — Resurgent traditional culture adds color to Chinese New Year festivities by Yu Yan, Beijing Review

At the tail of the Chinese Lunar New Year, the whole country is still immersed in gaiety. The joyous atmosphere lingers in the red lanterns along the streets, in the colorful candy wrappers, and in the brilliant folk art performances. For many Chinese people, old or young, to watch dragon dances, paper cutting, shadow puppetry shows and local dramas is the best part of the festival. All good wishes for a new year burst out at those moments. Indeed, the various folk art SHOWTIME: A puppeteer operates two puppets during a shadow pup- performances have been an petry show in Zaozhuang, Shandong Province, on October 15, 2011 (CFP) indispensable part of this traditional performing arts and the carving art. The festival since ancient times. As one of the world’s puppeteers operate the puppets behind a back-lit oldest continuous civilizations, China has a wealth curtain screen. The audience sees the action unfold of intangible cultural heritage. As precious cultural as the shadows play across the screen. The genes of the Chinese nation, some folk arts have puppets, which are made of ox, sheep, or donkey been listed as world cultural heritage by UNESCO. skin, are essential stage props as well as brilliant In the past two decades, the country has made handcrafted artworks. They present not only the enormous efforts to identify, recognize and protect characters, but also all kinds of objects from such treasures. Shadow puppetry and Kunqu opera everyday life, such as clothes, ornaments, towers, are two prominent examples. pavilions, furnishings, and scenery. Shadow Puppetry The faces of the shadow figures, including human, supernatural, and animal beings, are The ancient performing art of shadow carved intricately. Their facial features are often puppetry regained center stage after a long period exaggerated. The young heroes and heroines, for of neglect, after it was newly added to UNESCO’s example, often have elegant and noble slanted World Intangible Cultural Heritage List on foreheads and noses. Treacherous characters November 27, 2011. always have extremely large eyes. Shadow puppetry is one of China’s earliest The origin of shadow puppet dates back over performance arts. It appeared in the Han Dynasty 2,000 years. It is said that a favorite concubine of (202 B.C.-A.D. 220) and became very popular in Emperor Wu in the Han Dynasty died of an illness. many parts of the country during the Tang The emperor missed her so much that he lost Dynasty (618-907) and Song Dynasty (960-1279). enthusiasm for life. One day, a minister happened Shadow puppetry is a combination of to see children playing with dolls. When they 38 NEWS FROM CHINA /FEBRUARY 2012

played, the shadows on the floor moved vividly. words, rehearsed 37 plays, and recorded more than Inspired by this scene, the smart minister got an 60 performances. And it has collected more than idea. He made a cotton puppet of the concubine 1,000 stage props. and painted it. Xu Ernan, an old shadow puppeteer from At night, he invited the emperor to watch a Haining, said he is confident for the future. performance. The emperor was very happy to see “I felt full of energy when it occurred to me the lively puppet of the concubine. that my efforts could enable shadow puppetry to However, in modern times, amid the surge of be passed on,” said Xu. film and television, people gradually lost interest Kunqu Opera in puppet shows, and the art form faced extinction. “We should preserve the tradition of our While shadow puppetry is the latest Chinese shadow puppetry. We should preserve not only item to make the UNESCO list, Kunqu Opera was the puppets and props but also the theater texts the first to be inscribed onto it in 2001. Efforts to and music. They are part of Chinese culture. They invigorate this ancient art have already been may help promote Chinese culture and contribute rewarded. to the creation of new art forms,” said Sun Jianjun, “As a living performing art, Kunqu Opera a professor at the Academy of Arts and Design at should be constantly developed with the changes . in real life,” said Dong Wei, Director of the Arts Liu Nianhua, a 57-year-old puppeteer in Department of the Ministry of Culture, at a meeting Qianjiang, central China’s Hubei Province, felt the to celebrate the 10th anniversary of Kunqu Opera’s urgency of passing on this ancient art. “I was listing in Beijing in 2011. worried this precious art maybe lost to the world,” With a history of over 600 years, Kunqu Opera said Liu. is known as the mother of all operas in China. The Currently, there are no more than eight opera sounds hauntingly graceful. It features good puppeteers in Qianjiang, he said. control of the voice and rhythm. When performed, But the inclusion of shadow puppetry on the UNESCO list could provide a vital lifeline to the dying art form. Since then, a flood of visitors have rushed to Haining, east China’s Zhejiang Province, to appreciate puppetry shows. Haining, an important center of shadow puppetry, has attached great importance to shadow puppetry protection. It has carried out a project to protect several classic shows through sound and video recording. Also, the city passed a five-year plan on the protection work. So far, it has sorted out DREAM-LIKE CHARM: Zhu Bingzhen, heroine of the Kunqu Opera play Dream of Red Mansions, performs at the play’s press release in Beijing on August 8, documentaries totaling 280,000 2011 (PU XIANGDONG) NEWS FROM CHINA /FEBRUARY 2012 39

the opera is accompanied by various kinds of on its namesake ancient romance by Tang Xianzu traditional Chinese musical instruments. However, in the Ming Dynasty (1368-1644), is now staged this ancient performing art was on the verge of in theaters, on campuses and at clubs, both at home extinction before 2001. and abroad. “Years ago, when I was asked by taxi drivers This owes to the ceaseless efforts of Kunqu about my job, I felt ashamed to tell him I was a Opera lovers such as Ke. In recent years, Ke has Kunqu actor,” said Ke Jun, head of Jiangsu devoted himself to breaking the mold and bringing Provincial Kunqu Opera Theater. many modern elements into classical plays. “Once, when I performed, there were more Ke strived to make the opera in tune with the than 20 performers on stage, while only three in pulse of modern society. During the World Expo the audience below. Of the three, one was sleeping, in Shanghai in 2010, the Jiangsu Provincial Kunqu one was walking around and the other was Opera Theater cooperated with a Noh theater from cracking and eating melon seeds,” said Ke. Japan. The two created a multi-media Kunqu play Fortunately, this situation has changed since on environmental protection. In total, the 20- the opera was recognized by UNESCO in 2001. minute play was performed more than 6,000 times So far, it has gradually regained dignity and its during the expo, attracting large international rightful status in modern society. audiences. “When you find a fabulous thing, you will fall What’s more, Ke also cooperated with a lot of in love with it. When you love it, you will be big private companies as a means of attracting devoted to it. Kunqu Opera is an art with unique more social forces into the promotion of the opera. charm. We are determined to be devoted to it and He visited South Korea, Sweden, Japan, India and pass it on,” said Ke. other countries to introduce the opera, gaining In Kunshan, Jiangsu Province, the cradle of international fame. Kunqu Opera, a museum was built in 1993 to “I believe as long as I stick to it, Kunqu Opera promote this traditional art. can embrace a better future one day,” said Ke. But the opera is not just a museum piece. It Passing the Craft On has been regaining popularity. For instance, the most popular play Peony Pavilion, which was based In addition to Shadow puppetry and Kunqu

RED BLESSING: A paper cutting work on the Chinese totem ALL ABOUT DETAILS: A middle school student appreciates of dragon is displayed at a Spring Festival folk culture fair Chinese traditional New Year’s painting works at an in Shenyang, Liaoning Province on January 25, 2012 (ZHANG exhibition in Zhengzhou, Henan Province, on January 15, WENKUI) 2012 (ZHU XIANG) 40 NEWS FROM CHINA /FEBRUARY 2012

Opera, UNESCO has in total recognized 27 more income of more than 100,000 yuan ($15,400) items of living heritage in China by now. But they annually from the business. are only a small part of China’s rich human Chen Yunlu, uncle of Chen Gang, started to treasures ranging from song, music, drama, skills learn the craft at the age of 10 and is now to crafts. instructing young painters at the local museum. To better preserve and pass on these treasures, “We can only keep such a traditional craft alive China introduced a national project in 2005 to by infusing new content into it,” Chen Yunlu told recognize and fund representative inheritors of folk Beijing Review. “Although we are working around crafts to pass them down from generation to the clock to meet the orders, we think innovation generation. either in content or form will secure us better Chen Xingcai, 93, is one of them. As one of the market prospects.” inheritors of Mianzhu New Year’s painting craft, The younger generation is able to take he has already passed the craft to his grandson, advantage of e-commerce. “We sell about 10,000 Chen Gang, and Chen Gang is teaching his five- paintings every year, of which 10 percent are for year-old son to paint already. online orders and this percentage is still Mianzhu in southwest China’s Sichuan increasing,” said Chen Gang. Province is one of the four famous manufacturers Legislation Efforts of New Year’s paintings in China, along with Yangliuqing in Tianjin, Taohuawu in Suzhou, In addition to the inheritor system, the Jiangsu Province and Weifang in Shandong Chinese Government has also made efforts to Province. It features bright colors and intricate protect the nation’s cultural heritage through hand painting, a style dating back to the Song legislation. Dynasty, which thrived in the Qing Dynasty (1644- After a decade’s drafting, China’s first law 1911) but fell to the wayside in recent decades. for intangible cultural heritage came into force Young people have been reluctant to learn the on June 1, 2011. The legislation is expected to skills required to master the handicraft. But the ensure better preservation of the country’s cultural reconstruction after the 2008 Earthquake in legacy. Sichuan has saved the art form, which is protected “The primary target of China’s heritage as an intangible cultural heritage, from the brink protection efforts used to be tangible items including of extinction. artifacts and historic relics. The enactment of this Under a partnership plan which encourages new law means that for the first time Chinese cities nationwide to mobilize capital and labor to traditional cultural practices now have legal support the reconstruction in Sichuan, Suzhou protection,” said Zhu Bing, an official from the spent more than 30 million yuan ($4.62 million) Standing Committee of National People’s Congress, establishing a New Year’s painting base in China’s top legislature. Nianhua Village. Now more than 90 percent of The law is responsible for the traditional the villagers make a living on making New Year’s cultural expressions and practices of China’s paintings, as well as related businesses in the various ethnic groups, which have been handed process. Jiangsu has also helped with sales of the down through generations. paintings. It specifically covers traditional oral literature, The Chen family is living in a government- performing arts, craftsmanship, medicine and folk funded quadrangle courtyard now, making an customs. NEWS FROM CHINA /FEBRUARY 2012 41

Managing the Mass Migration During the Spring Festival —Transportation network struggles to cope with Spring Festival demand by Lan Xinzhen, Beijing Review

Big crowds and foul air on the train, the Spring Festival was in fact bigger than previous frighteningly long queues and fierce clashes at the years as passenger flow surpassed transport station...these are common scenes during China’s capacity,” said Liu Tienan, Deputy Director of Spring Festival travel rush. The annual travel peak China’s National Development and Reform is known as the world’s biggest human migration. Commission (NDRC). This year’s stampede is still ongoing. Lasting over The Ministry of Railways (MOR) initiated a 40 days, people began returning to their number of measures to deal with the seasonal surge hometowns on January 8 and the final stragglers in demand. It introduced telephone ticket booking will make their way back to the cities by February and real-name online ticketing services to prevent 16. ticket scalping. Additional temporary train services The railway is the major means of were also introduced to relieve the huge transport transportation during the period. Although its pressure. capacity to transport people has been strengthened However, these efforts failed to save the by newly opened express routes, the situation for ministry from extensive criticism and accusations most passengers remained extremely difficult. that it did not do enough to deal with passenger “Although the railway’s transport capacity demand. Many travelers said they found it exceeded that of previous years, it still couldn’t extremely difficult to get tickets home for the meet the demand,” said Hu Yadong, Chinese Vice Spring Festival and to return to work after the Minister of Railways. festival. “The difficulty in organizing transportation for The ministry however claimed that it had used every single means at its disposal to increase transport capacity during the festival. The average number of train departures hit 2,064 pairs a day, a record high for festival transportation and an increase of 131 journeys compared to the period before the festival. Some 5.88 million passengers were being conveyed per day. The ministry estimated the total number of train passengers would reach 235 million, an increase of 13.52 million, compared to the previous year. Why is it so difficult? PEAK TIME: Passengers wait in queues to get on the train at a railway station in Wuhan, capital city of central China’s Hubei Province, on The sheer number of people traveling January 15, 2012. The number of passengers hit a record high for the station (XINHUA) during the festival has drawn considerable 42 NEWS FROM CHINA /FEBRUARY 2012 attention to the reasons behind the human high-speed railway lines, such as the Beijing- stampede that takes place every year. Why do so Shanghai Express Railway, China now has over many people choose to travel during the festival? 3,000 km of high-speed rail track, more than any This is due to two realities in China. The first is other country in the world. the imbalanced economic development between However, the increase in transport capacity, different regions. Many people from central and while sufficient to meet day-to-day demand, is west China work in economically developed insufficient to deal with the sharp spike in eastern coastal cities or major cities such as Beijing passenger numbers over the Spring Festival. Since and Shanghai. the Spring Festival transportation program started According to China’s National Bureau of in 1989, when migrant workers began to hunt for Statistics, of Shenzhen’s total population of 14 jobs in eastern coastal cities, the number of million, 12 million are migrants; and of Beijing’s passengers during the festival has surged from 800 total population of about 20 million, more than 7 million to more than 3 billion. million are classified as floating. And this floating Solutions population mainly consists of migrant workers. The other reality is the strict difference between Spring Festival transportation has proved to having an agricultural and non-agricultural be a stubborn problem. Some people have registered permanent residence in China. It is hard suggested solving the problem by enhancing the for migrant workers to register as permanent railway’s transport capacity. But the fact is China residents in the cities that they work in. Therefore cannot construct its railways according to the millions of people work in cities, while their families demands of the Spring Festival, as that would lead remain in their hometowns. to enormous waste and overcapacity on a day-to- Since the Spring Festival is the most important day basis.According to statistics from the MOR, traditional holiday for the Chinese people, the vast normally Chinese railways only need to handle a majority of people choose to spend the festival with daily passenger load of about 3 million. But during their families and are therefore prepared to travel the Spring Festival, this number tops 5.8 million. home, regardless of the difficulties they face in The second possible solution to the problem is terms of transport. to tackle the underlying causes behind the mass Thus a mass migration is formed. Shortly migration. Why do people travel so far from their before the festival, a huge number of migrant hometowns to search for jobs?”The major reason workers travel to inner China from eastern coastal is the huge income gap between different regions,” cities. Then after the festival, they go back to said Su Hainan, Vice Chairman of the China eastern coastal cities to make a living. Association for Labor. The huge traffic load is the result of so many There are some severe imbalances in China’s people traveling within such a short period of time. economic layout. In the eastern coastal cities, the To meet the demand for transportation, China development of secondary and tertiary industries has greatly increased its investment in road and has created numerous jobs. Job opportunities in railway construction projects over the past few inner China on the other hand remain quite years. According to statistics released by the limited, and salaries in those regions are NDRC, in 2011, China added 11,000 km of significantly lower. As a result, a large number of expressways. In total, China now has 85,000 km workers have been attracted to more developed of expressways, just behind the United States. regions. Along with the completion of a number of The income gap, both between urban and rural NEWS FROM CHINA /FEBRUARY 2012 43 areas and between regions, is widening. This has permanent residence system would allow migrant contributed to an increase in the migrant workers’ families to join them in the cities, thus population.”The fundamental way to ease Spring reducing the population flow during the Spring Festival transport pressure is to promote balanced Festival. development between different regions through a ”But this suggestion may not be approved as more rational economic layout,” said Su. many officials worry about the burden an influx ”If the imbalance can’t be solved, passenger of migrant families would place on cities,” said numbers won’t be reduced and transport pressure Zhang. will remain the same,” said Su. ”The process of absorbing migrant workers as However, this sort of rebalancing can’t be urban citizens can be carried out little by little,” achieved overnight. The Chinese Government has said Zhou Xiaozheng, a sociology professor at the been striving to achieve more balanced Renmin University of China. development between different regions for several If cities can provide favorable policies for years.Some encouraging results and tendencies are migrant workers that have worked in the city for being reported. Labor-intensive, low value-added more than five years, offering them low-rent enterprises have begun to move to central and housing funded jointly by enterprises and the western regions. But the number of such businesses government, this would reduce the Spring Festival remains quite small and the income gap is still migration, said Zhou. large. Zhou’s suggestion is just a temporary ”The best solution to the Spring Festival expedient. According to the NDRC, China’s transport problem is to change the current system urbanization rate will reach 65 percent by 2030. of registered permanent residence while striving This means each year 20 million migrant workers for balanced regional development,” said Zhang become urban residents, and by 2030, about 400 Xiaode, an economics professor at the Chinese million migrant workers and their families will Academy of Governance. have become urban citizens. ”The social security discrimination behind the Zhou also suggested adopting flexible ticket registered permanent residence system means that prices to control passenger flows. For instance, one migrant workers lack a sense of belonging to the month before the Spring Festival transportation, cities they work in,” said Zhang.Faced with a tickets can be sold at a 20-percent discount. With number of problems including education, medical the approach of the festival, prices would keep care and old age pensions, few migrant workers rising, reaching 110 percent of the original price. are willing and able to move their families to the This would drive migrant workers to return to city. their hometowns as early as possible and thus ease Zhang said that changing the registered some of the huge transport pressure.

339,700 Chinese Choose to Study Abroad in 2011

Beijing, Feb. 10 (Xinhua) — A total of 339,700 According to the ministry, 314,800, or about Chinese left to study abroad in 2011, up 19.3 93 percent of them, were self-supported, while the percent from the previous year, statistics released rest were sponsored by the government or their by the Ministry of Education Friday show. employers. 44 NEWS FROM CHINA /FEBRUARY 2012

In addition, the number of returned students Statistics show that from 1978, when China increased by 38.08 percent year-on-year to reach introduced the reform and opening up, to the end 186,200 in 2011, according to the ministry. of 2011, the number of Chinese studying abroad More than 90 percent, or 169,200 of the was more than 2 million, and that of the returned returnees, had been studying abroad at their own reached 818,400. expense, said the ministry.

IV. TIBET TODAY

Chinese Premier Wen Meets Panchen Lama

Beijing, Feb. 10 (Xinhua) — Premier Wen Jiabao on Friday had a meeting with the 11th Panchen Lama Bainqen Erdini Qoigyijabu, at the Zhongnanhai compound in central Beijing, which is the office complex for both the Central Committee of the Communist Party of China (CPC) and the State Council. During the meeting, Wen, who is also a member of the Standing Committee of the CPC Central Committee’s Political Bureau, congratulated the Panchen Lama, as well as all Tibetan compatriots, on the forthcoming Tibetan New Year, which falls on February 22. Chinese Premier Wen Jiabao (R) receives a hada, a white silk scarf symbol- izing respect and blessing, from the 11th Panchen Lama Bainqen Erdini The premiere heard a report by Qoigyijabu during their meeting at the Zhongnanhai compound in central the Panchen Lama on his life and Beijing, which is the office complex for both the Central Committee of the work since he was enthroned 17 Communist Party of China (CPC) and the State Council, on Feb. 10, 2012. (Xinhua/Li Tao) years ago. Wen praised and congratulated the Panchen Lama on his marked Peaceful Liberation of Tibet, and over the past progress in Buddhist research and cultural and six decades, Tibet has experienced enormous ethic aspects, noting that the Panchen Lama has changes thanks to the leadership of the Party behaved in a good style as a Living Buddha of and the government, the assistance by the people the Tibetan Buddhism. of all nationalities, and hard work and The year 2011 is the 60th anniversary of the continuous efforts made by the people of Tibet NEWS FROM CHINA /FEBRUARY 2012 45

from different ethnic groups, Wen said. Talking to the Panchen Lama, the premier pledged that in the future the regional ethnic autonomy will continue, while greater efforts will be made to improve the lives of Tibetan compatriots, protect the environment and the region’s cultural traditions, as well as the religious freedom of the Tibetan people. Wen asked the Panchen Lama to further deepen his research of academic works on Buddhist Chinese Premier Wen Jiabao (R, back) has a meeting with the 11th Panchen Lama Bainqen Erdini Qoigyijabu (L, back) at the Zhongnanhai compound in doctrines in an effort to ascertain central Beijing on Feb. 10, 2012. (Xinhua/Li Tao) positive thoughts from Tibetan Buddhist doctrines, so as to lead the Buddhists all ethnic groups. lamas and followers in loving the country, abiding Present at the meeting was Du Qinglin, a vice by laws and abiding by Buddhism chairman of the National Committee of the Chinese commandments. People’s Political Consultative Conference He also called on the Panchen Lama to play (CPPCC) and director of the United Front Work an even greater and more positive role in Department of the CPC Central Committee. safeguarding the national unification and unity of

Tibet Received 8.7 Million Tourists Last Year

Lhasa, Feb. 13 (Xinhua) — Southwest China’s percent year-on-year, it said. Tibet autonomous region received 8.7 million tour- The tourism foreign exchange revenue ex- ists in 2011, up 26.9 percent year-on-year, local panded 25.1 percent year-on-year to 129.63 mil- authorities said Monday. lion U.S. dollars. The number of domestic travelers the region Tourism is an important industry for the re- received surged 27.2 percent year-on-year to 8.42 sort-rich region. Major landmarks, including the million, and the amount of international tourists Yarlung Zangbo Grand Canyon and Mount increased 18.6 percent to 270,000, according to a Qomolangma, are draws for tourists, and local press release issued by the regional statistics bu- authorities have also been encouraging activities reau. to boost the industry, such as the establishment of The region’s tourism revenue last year totaled five-star hotels and personnel training for high- 9.7 billion yuan (1.54 billion U.S. dollars), up 35.8 quality service. 46 NEWS FROM CHINA /FEBRUARY 2012

Full Speed Ahead for Tibet Railway Extension

Lhasa, Jan.17 (Xinhua) - The extension of a U.S. dollars). landmark railway from Tibet’s capital, Lhasa, to It is designed to have a transport capacity of its second-largest city, Xigaze, is in full swing and 8.3 million tonnes of freight annually and will allow will be completed by 2015, officials said Tuesday. trains to travel at a minimum speed of 120 km per As of the end of 2011, 3.4 billion yuan (538 hour. million U.S. dollars) had been poured into the Xigaze, with a history of more than 600 years, Lhasa-Xigaze railway, about a quarter of the total is Tibet’s second-largest city and the traditional seat budget for the project, Tibet’s regional development of the Panchen Lamas. and reform commission said in a statement. Xigaze City is the administrative center of the The railway, the first extension of the Qinghai- Tibetan prefecture of the same name, which covers Tibet Railway that opened in July 2006, is one of 182,000 square km bordering India, Nepal and the plateau region’s key construction projects Bhutan and includes Mt. Qomolangma (Mt. during the 2011-2015 period. Everest). Construction workers have finished laying Jin said the new rail link will play a vital role 14.08 million cubic meters of roadbed, about 77 in boosting tourism and accelerating the transport percent of the total, and built 40 percent of the of goods. tunnels along the road, said Jin Shixun, chief of Tibet will start building another extension of the commission. the plateau railway, from Lhasa to Nyingchi, in The 253-km new line will pass through five the next five years, according to the region’s plan counties and the 90-km-long Yarlung Zangbo for economic and social development in the 2011- Grand Canyon. Construction began in September 2015 period. 2010, with a budget of 13.3 billion yuan (2.1 billion

V. TRAVEL IN CHINA

Lantern Festival Brings Festive Outdoor Fun

Beijing, Feb. 6 (Xinhua) — Despite a new round Monday, Feb. 6 this year. of cold weather gripping parts of central and In north China’s Shanxi province, local miners eastern China, people around the country are are putting on a large-scale lantern show with getting out of their homes to celebrate the Lantern lanterns they made themselves. Normally dreary Festival, with a variety of lantern shows, firework places, the mines are filled with an air of festivity, displays and artistic performances slated for the courtesy of the exquisitely designed lanterns. holiday. “From the themes and designs to the choice of Marking the end of the Chinese New Year materials and craftsmanship, the miners made holiday season, the festival takes place on the 15th everything themselves during their free time,” said day of the Chinese lunar calendar, falling on local miner Meng Xiangzhi. NEWS FROM CHINA /FEBRUARY 2012 47

“Preparing for the show took the miners four months. They have combined a variety of effects and techniques, including the use of smoke and water, to make the show a lively and amusing one,” said show organizer Wang Yuxiong. In the city of Hangzhou in east China’s Zhejiang province, one lantern show features lanterns made out of fruit and vegetable skins, created by local children. The environmentally friendly lanterns are unique to this festival. Hundreds of lanterns are seen at Nanshan Park, Helingeer County, Hohhot Much farther away, in the Changji City, Feb. 5, 2012, the Lantern Festival. The Lantern Festival falls on the 15th day of the first month of the Chinese lunar calendar. Since the Lantern Hui autonomous prefecture in west Festival is held to mark the first full moon of the new lunar year, Chinese China’s Xinjiang Uygur autonomous celebrate it by hanging colorful lanterns, playing games and gathering region, folk dances and singing are the with friends to eat sweetened rice dumplings. (Xinhua/Li Yunping) preferred modes of celebration. Cars, dancers and musical instruments festooned with would be chaperoned into the streets during the decorations have added a colorful flair to the festival, dancing, singing and possibly meeting their region’s streets, with members of China’s many future husband. ethnic groups participating in the festivities. The Lantern Festival has been dated back to Wu Bingan, honorary chairman of the China the Western Han Dynasty (202 BC - AD 900). Folklore Society (CFS), said that while most Chinese About 17 ethnic groups, including the Han, holidays feature a focus on family reunions and Mongolian, Korean, Hui, Tibetan and Manchu honoring one’s ancestors, the Lantern Festival is groups, celebrate the festival, which was listed an occasion for going outside and participating in in 2008 as part of China’s intangible cultural public activities. heritage. Wu said young women living in ancient China

Backgrounder: Chinese Lantern Festival

Beijing, Feb. 6 (Xinhua) — The Lantern country’s most important holidays. Festival falls on the 15th day of the first month The Chinese lunar calendar is based on the of the Chinese lunar calendar. Following the cycles of the moon, with the full moon falling on Spring Festival, which heralds the arrival of the the 15th day of each month. Since the Lantern new lunar year, the Lantern Festival, which falls Festival is held to mark the first full moon of the on Feb. 6 this year, is considered to be one of the new lunar year, Chinese celebrate it by hanging 48 NEWS FROM CHINA /FEBRUARY 2012 colorful lanterns, playing games and gathering with friends to eat sweetened rice dumplings. LANTERN FESTIVAL LEGENDS There are many different myths and stories about the origin of the festival, most of which can be traced back to the Han Dynasty (206 BC - 220 AD). It is said that Buddhism first became popular during the Han Dynasty, with the Ming Emperor Lion Dance performers take part in the annual Yangko dancing show to (28 AD - 75 AD) promoting the celebrate the Lantern Festival in Yan’an, northwest China’s Province, spread of Buddhism throughout Feb. 6, 2012. China celebrated on Monday its traditional Lantern Festival, China. After learning that Buddhist which falls on the 15th day of the first month of the Chinese lunar calendar. Since the Lantern Festival is held to mark the first full moon of the new monks would light lanterns to lunar year, Chinese celebrate it by hanging colorful lanterns, playing games worship Buddha on the 15th day of and gathering with friends to eat sweetened rice dumplings. (Xinhua/Liu the first lunar month, the emperor Xiao)

decided to follow suit, ordering all citizens to light lanterns in a similar fashion. Another story mentions a crane belonging to the Jade Emperor (the supreme deity of Taoism) who was mistakenly killed by villagers who were trying to protect their livestock from wild beasts. Angered by the crane’s death, the Jade Emperor decided to burn the villagers’ homes on the 15th night of the first lunar month. The daughter of the Jade Emperor, feeling sympathetic for the villagers, came to warn them of the emperor’s wrath. The villagers A staff member boils traditional Chinese food “yuanxiao”, or glutinous rice ball, during International Snow Sculpture Art Expo in Harbin, capital of decided to light red lanterns and set northeast China’s Heilongjiang Province, Feb. 6, 2012, the Lantern Festival. off fireworks to confuse the The Lantern Festival falls on the 15th day of the first month of the Chinese emperor’s army, who believed the lunar calendar. Since the Lantern Festival is held to mark the first full moon of the new lunar year, Chinese celebrate it by hanging colorful lanterns, village was already on fire and playing games and gathering with friends or family. (Xinhua/Wang Feng) returned to heaven, sparing the NEWS FROM CHINA /FEBRUARY 2012 49 villagers from certain doom. CELEBRATORY SNACKS Many people celebrate the festival by eating “yuanxiao,” a type of sweetened dumpling made of glutinous rice flour and stuffed with a variety of fillings, including meat, nuts, fruit or sugar. In the past, many people made their own yuanxiao, while purchasing them in supermarkets has become more popular over the years. The snack can be eaten boiled, fried or steamed, just like regular dumplings. People perform dragon dance amid sparkles during a celebration of the Lan- tern Festival at a park in Tongliang County, Chongqing Municipality, south- Yuanxiao are also known as west China, Feb. 6, 2012. China celebrated on Monday its traditional Lantern “tangyuan” in Chinese, a word Festival, which falls on the 15th day of the first month of the Chinese lunar that is pronounced nearly the same calendar. Since the Lantern Festival is held to mark the first full moon of the new lunar year, Chinese celebrate it by hanging colorful lanterns, playing as “tuanyuan,” which means games and gathering with friends to eat sweetened rice dumplings. (Xinhua/ “reunion” in Chinese, making the Chen Cheng) food a symbol of the family reunions that are common to Chinese holidays. “dragon lantern dance,” the “lion dance” and stilt-walking. FIERY FESTIVITIES Celebrations can also vary by location. In Hanging lanterns and shooting off fireworks southwest China’s city of Zigong, the remain the most popular forms of entertainment International Dinosaur Lantern Show is being during the festival, although other ways to held from Jan. 5 to the end of February, featuring celebrate the holiday have become more popular a variety of dinosaur-themed lanterns. Many over the years. dinosaur fossils were discovered in the city in The Chinese character for lamp (“deng”) the 1980s. contains the characters “huo” (fire) and “ding” In east China’s Jiangxi Province, as well as (child), leading many to believe that lighting the southeastern Fujian Province, local residents multiple lanterns will bring families more celebrate the festival by performing the ancient children. Families living in ancient times would “Nuo” ritual dance. Dancers adorn themselves often light many lanterns for this purpose. with red jackets, ghost-like masks and artificial Some of the lanterns decorated with puzzles tusks to mark the arrival of the Year of the on their outside surfaces. Children are especially Dragon. fond of solving the puzzles, as they are often Villagers believe that the thousand-year-old rewarded with gifts for doing so. dance will expel evil spirits, as well as bring mild The festival is also celebrated through a weather and good harvests. variety of performance arts, including the 50 NEWS FROM CHINA /FEBRUARY 2012

Palace Opens More Doors to Present New Face

One move will be to increase the amount of space open to the public from 46 percent to 76 percent, said at a news conference on Tuesday. “The is like an encyclopedia,” said Shan, who was the former director of the State Administration of Cultural Heritage prior to taking up his appointment as curator a month ago. “Managing it is a new challenge for my skills.” The Palace Museum, also well known as the Forbidden City, is taking major steps to repair its image after a series of scandals last year, said its new curator. Led by the former curator , the museum has made significant streams of visitors will also be rearranged. progress in many ways, such as architectural Meanwhile, commercial stands and temporary repairs and scientific research, Shan said. exhibitions at the Duanmen Gate area have been In the past seven years, a census of museum- removed and up to 28 ticket boxes will be set up to owned relics and artifacts has been completed, of prevent crowded queues. Facilities for wheelchairs which up to 1.8 million items can now be cross- and baby carriages will also be introduced. referenced with detailed documentation. Commenting on last year’s scandals, Shan In 2011, more than 14.2 million visited the confirmed that the Jianfu Palace garden will not museum, setting a world record. This was twice become a private club, but will be used for small- the amount of visitors in 2002 and is estimated to scale exhibitions, seminars and news conferences. increase by 10 percent this year. The 13 research institutions that are based in “Catering to the demands of so many visitors the museum will also be relocated off site before is quite a challenge for the Palace Museum, 2016, he added. especially when the visitation patterns vary so Places such as the Yuhua Pavilions and Juanqin much in respect to time and place,” Shan said. House, which are in too fragile a state to be opened, The daily number of visitors during the May are to feature photographic and technical Day holiday, National Day holiday and summer presentations online. vacation period usually rises to 80,000 on average, Shan stressed that safety and security are the twice the amount of other days. And most visitors most important matters requiring attention. tend to congregate around the central axis of the “Safety will always be the absolute priority,” palace, putting pressure on this area. said the 58-year-old new curator. To improve the situation, more areas will be “The public has the right to know, to opened up to the public as repairs are completed. participate and to benefit, so we welcome criticism The distribution of exhibits and viewing access for and supervision from the public,” Shan said.

Postal Regd. No. DL-SW-1/4034/12-14 R.N.I. No. 47440/88 February 2012

Tibetans in China's Tibet Autonomous Region and the Tibetan autonomous prefectures in Sichuan, Gansu, Qinghai and Yunnan provinces will celebrate the Tibetan New Year on February 22. Residents in Lhasa flocked to the famous Chongsaikang Market to buy vegetables and festival goods on Feb.19.