world: China, U.S. Work Together P.18 | BUSINESS: Reforms One Year On P.32

VOL.57 NO.47 November 20, 2014 WWW.BJREVIEW.COM

Walking the Same Path APEC members band together for a common goal

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VOL.57 NO.47 November 20, 2014 CONTENTS

EDITOR’S DESK CULTURE 02 A Milestone Gathering 42 The Nightingale Hopes to Sing at 14 The Oscars THIS WEEK Cover Story This little bird soars to new heights 44 A Private Matter Cover Story Giving your child an advantage, no matter the cost WORLD 20 New Impetus Sino-Russian cooperation strengthens FORUM their economies 46 Looking After China’s Senior 22 A Glimmer of Hope Empty Nesters Xi-Abe meeting lights candle in the dark APEC’s New Vision ESSAY NATION The Beijing meeting redefines 48 Upgrading Anti-Corruption Efforts 28 Finding Wisdom in the Past Asia-Pacific agenda Fighting the good fight requires resolve Keeping traditional culture alive world BUSINESS P.18 | Maintaining Momentum 36 Falling Figures, Rising Spirits Lackluster foreign trade statistics haven’t New-type power relations stretch across the Pacific dampened optimism 38 Market Watch Nation P.26 | Saving the Sturgeon Scientifically significant species waning

Cover Photo: Chinese President with other APEC leaders during their annual  meeting in Beijing on November 11 (LAN HONGGUANG) BUSINESS P.32 | Change Across the Board ©2014 Beijing Review, all rights reserved. Economic reforms drive nation’s progress

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A News Weekly Magazine Published Since 1958 President & Editor in Chief: Wang Gangyi Vice President: Qi Wengong Associate Editors in Chief: Li Jianguo, Huang Wei, Wang Yanjuan, Zhou Jianxiong, Ding Zhitao Assistant President: Li Zhenzhou A Milestone Gathering Assistant Editor in Chief: Wa Chunfang Executive Editor: Ding Zhitao The recent Asia-Pacific Economic round of APEC meetings, China proposed Assistant Executive Editors: Zan Jifang, Liu Yunyun, Yu Shujun, Cooperation (APEC) meetings in Beijing a Silk Road Fund. Previously, it proposed Production Director: Yao Bin were a landmark in its history. They the building of the 21st Century Maritime Editorial Administrators: Liu Xinlian, Shi Bosen Commentators: Zhang Zhiping, Lan Xinzhen, Yan Wei marked the beginning of a new period for Silk Road, the Silk Road Economic Belt, Opinion/Culture Editor: Yan Wei Asia-Pacific economic cooperation, and a the Bangladesh-China-India-Myanmar World Editor: Liu Yunyun change of China’s role in APEC. Economic Corridor, and the China- Nation Editor: Zan Jifang Business Editor: Yu Shujun The impact of the international fi- Pakistan Economic Corridor. Now, the Web Editor: Chen Ran nancial crisis still lingers, and various China-ASEAN Free Trade Area has yielded Editorial Consultants: Joseph Halvorson, Kieran Pringle, Eric Daly, Kylee McIntyre economies in the world are recovering fruit, and breakthroughs are expected Staff Reporters: Tang Yuankai, Ding Ying, Wang Jun, Yin Pumin, slowly with their growth remaining slug- presently in negotiations on the China- Pan Xiaoqiao, Yuan Yuan, Wang Hairong, Yu Lintao, Zhou Xiaoyan, gish. By charting a new direction and Japan-South Korea Free Trade Area. Bai Shi, Li Fangfang, Deng Yaqing, Ji Jing Photo Editor: Wang Xiang launching new models for cooperation, Thirdly, the harm inflicted on econom- Photographer: Wei Yao the meetings created new momentum ic cooperation by political disagreements Art: Li Shigong for regional economic cooperation. The in the region is dwindling. Prior to the Art Director: Wang Yajuan Chief Designer: Cui Xiaodong impact of the meetings will be seen in the meetings, member economies some- Designer: Zhao Boyu following three areas: times quarreled with one another for Proofreading: Ma Xin Firstly, the “Asia-Pacific dream” will political reasons. At the meetings, how- Distribution Director: Hu Keqiang guide the region’s future development. At ever, leaders engaged in constructive Advertising Director: Jincheng Human Resources: Zhang Yajie the APEC CEO Summit on November 9, discussions. In particular, top leaders of Marketing/PR Director: Pan Changqing Chinese President Xi Jinping put forward China and Japan met for the first time af- Legal Counsel: Yue Cheng the concept for the first time. Xi said the ter the two countries’ tension flared over North America Bureau dream is about jointly working for the the Diaoyu Islands, hinting at a possible Chief: Huang Wei Tel/Fax: 1-201-792-0334 prosperity and progress of the region, fol- detente in their ties. E-mail: [email protected] lowing the trends of peace, development As the host of this year’s APEC meet- Africa Bureau and mutually beneficial cooperation. It is ings, China has played a more active role Chief: Li Jianguo also about engendering more economic in promoting regional economic coopera- Africa Managing Editor: Francisco Little Tel: 27-71-6132053 vibrancy, free trade and investment fa- tion, which is evident in the concept of E-mail: [email protected] cilitation; ensuring greater security and the Asia-Pacific dream, the proposal for General Editorial Office opportunity for the people; and giving the Silk Road Fund, and the connectivity Tel: 86-10-68996252 children a better environment to grow blueprint that it has put forward. Fax: 86-10-68326628 and live. Held on the occasion of the organiza- English Edition Tel: 86-10-68996259 Secondly, Asia-Pacific economic tion’s 25th anniversary, the Beijing APEC Advertising Department integration will pick up speed. The meetings will elevate Asia-Pacific eco- Tel: 86-10-68998164 E-mail: [email protected] APEC members endorsed a roadmap nomic integration to a higher level, and Distribution Department for promoting the Free Trade Area of spur both regional and global economic Tel: 86-10-68310644 the Asia-Pacific, which is a historic step growth. n E-mail: [email protected] toward possible trade liberalization and Published every Thursday by economic integration in the region. They Beijing Review regrets a spelling error that occurred on the BEIJING REVIEW, 24 Baiwanzhuang Lu, Beijing 100037, China. also reached consensus on promoting front cover of Issue 45, which was published November 6. Overseas Distributor: China International Book Trading regional connectivity. The cover should read: “Region on the Rise: Asia-Pacific Corporation (Guoji Shudian), P. O. BOX 399, Economic Cooperation convenes in Beijing to discuss Beijing 100044, China To achieve this goal, the Asian priorities for development.” Tel: 86-10-68413849, 1-416-497-8096 (Canada) Infrastructure Investment Bank was es- Fax: 86-10-68412166 tablished this past October. During this E-mail: [email protected] Website: http://www.cibtc.com General Distributor for Hong Kong, Macao and Taiwan: Peace Book Co. Ltd. WRITE TO US 17/Fl, Paramount Bldg, 12 Ka Yip St, Chai Wan, HK Tel: 852-28046687 Fax: 852-28046409 Send an e-mail: [email protected] Beijing Review (ISSN 1000-9140 USPS 2812) is published weekly in the United States for US$64.00 per year by Cypress Books, Please provide your name and address along with your submissions. Submissions may be edited. 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 CHINA...... RMB6.00 U.S.A...... USD1.70 AUSTRALIA...... AUD3.00 UK...... GBP1.20 CANADA...... CAD2.60 SWITZERLAND...... 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2 BEIJING REVIEW November 2020,, 2014 http://www.bjreview.com THIS WEEK

STUNNING PERFORMANCE Acrobats with the China National Acrobatic Troupe perform in Wellington on November 9 as part of the Experience China in New Zealand program. Experience China, a program sponsored by the State Council Information Office with the aim of presenting Chinese culture to international audiences, has been held around the world. Australia and New Zealand, destinations for President Xi Jinping in mid-November, have been its latest stops. LI XIAOHUA

http://www.bjreview.com November 20, 2014 BEIJING REVIEW 3 THIS WEEK SOCIETY CHEN FEI ceremony of the mechanism. The gathering center should be- come a powerful intelligence support to China’s fight against terrorism, he said. Phone Users China’s phone users numbered 1.53 billion at the end of September, including 1.27 billion mobile phone users, the Ministry of Industry and Information Technology announced on November 12. Mobile broadband subscribers reached 525 million at the end of September, including 43.06 million 4G mobile broadband subscribers. Broadband through fixed-lines reached 200 million households at the end of September. About 92 percent of villages have accesses to broadband, according to the ministry. New Bank Cards Public security experts have developed a type of electronic identity card that New Drilling Ship will better safeguard personal informa- tion and Internet security. China has completed its first domestically produced drilling ship, giving the country extra opportunity to tap into The e-ID, which employs sophis- the deep-sea drilling sector. ticated security techniques approved The ship, officially christenedOpus Tiger 1 on November 8, was funded by the Chinese Reignwood Group and by the State Security Cryptography constructed by Shanghai Shipyard of China State Shipbuilding Corporation. It is the first drilling ship with all intel- Administration Office, prevents card infor- lectual property rights exclusively owned by China. mation from being read, copied, changed The exact amount of investment was not revealed, but industry insiders put the total cost between $200 million- or used, said Yan Zeming, a principal 300 million. investigator with the Third Institute of the Ministry of Public Security. With personal information stored in IPR Court end of this year. a chip embedded in a bank card, the e-ID Chinese courts hear about 110,000 TIBETAN will allow for easier, safer online shopping A court specializing in intellectual IPR cases annually and this is expected by eliminating complicated submis- property rights (IPR) opened in Beijing to increase. CULTURE sions, Yan said at the ongoing China on November 6, in the latest effort to ON SHOW International Industry Fair in Shanghai. effectively handle IPR conflicts. Anti-Terrorism efforts The institute is trying out the tech- The court, which has four hearing Members of China’s Tibetan nology in localities across China, with rooms, has selected 22 of its 30 judges, China has launched a joint mechanism Lhoka Art Troupe perform to improve intelligence gathering for Tibetan Opera during the some 6 million e-ID bank cards being each has an average 10 years experi- Glamorous Tibet Folk Song and issued. ence of IPR cases. anti-terrorism efforts, according to a Dance Show of the 2014 Canada- The court will mainly hear admin- statement released on November 12. China Tibetan Culture Week at istrative cases, in which plaintiffs sue Guo Shengkun, Minister of Public Bluma Appel Theater in Toronto, Video Game Studies authorities over IPR violations. Security, urged full use of the intelli- Canada, on November 6 A college in southwest China’s

The establishment of the court is gence to smash violent terrorist activities ZOU ZHENG Chongqing Municipality has started in line with a proposal by the Supreme before they are carried out. offering an optional course on the People’s Court, which was approved in While giving full play to traditional popular computer game DOTA, fueling August by China’s top legislature, to set methods of intelligence gathering, debate online about the value of online up three special courts for IPR cases. authorities should also use big data gaming in academia. The other two, which will mainly and information technologies to The course, named “recent deal with civil cases, are expected to improve the coordination, sharing and development of e-sports and analysis open in Shanghai and Guangzhou in research of anti-terrorism intelligence, of DOTA teams,” aims to improve southern Guangdong Province by the he said while attending the launching students’ teamwork spirit, according to

4 BEIJING REVIEW November 20, 2014 http://www.bjreview.com THIS WEEK CHENG CHAOSHENG the course’s teacher, Zeng Qingqing at Chongqing Energy College. The weekly course has been a hit at the college, with each class drawing more than 200 students, though only 90 are supposed to show up, according to a student surnamed Wang. Netizens remain divided on the topic, as many expressed concerns about possible addiction to the game. Zeng told Xinhua News Agency that “We will focus class content centers on the analysis of strategies used by the top teams in the on building a game, rather than teaching students self-controlled how to play online games. national space infrastructure Satellites Launched that can operate China will launch around 120 more applied satellites to accommodate continuously and economic and social needs, a senior stably for a long Married on Singles Day executive of China Aerospace Science time.” The couple takes photo with their marriage certificates in Sichuan Province on and Technology Corporation said on November 11. Singles Day is a day for people who are single, celebrated on November 10. Yang Baohua, November 11 in China. Over the past few years it has also become an annual date for However, Yang Baohua, Deputy Deputy General Manager of China sales by online vendors similar to Cyber Monday in the United States, though much General Manager of the corporation, Aerospace Science larger. did not specify the period of time over and Technology

which the launches will span. Corporation The Chinese economy will  In addition, China will launch about had been ongoing for more than six continue to record relatively high 30 navigation satellites to provide ac- months this year, said Cheng Liwei, growth, generating more demand for curate and reliable global positioning Director of the China Central Geological aerospace technologies, Yang said at and navigation services. Survey Fund Management Center. an international aviation and aerospace The belt of uranium at the Daying forum held in Zhuhai in south China’s mine is now thought to be 20 km longer Guangdong Province. More Uranium than originally estimated, making the mine China will launch about 70 remote Chinese geologists have found more the 14th largest in the world, said Cheng. sensing satellites to detect the near- uranium deposits in China’s largest “Compared with a preliminary Earth space environment and predict uranium mine, Xinhua learned on survey in 2012, this new discovery repre- extreme events, according to Yang. November 6. sents a uranium deposit increase of China will also launch about 20 Geological exploration around the about 60 percent,” Cheng said. communication satellites to meet com- western areas of the Daying uranium Uranium is the only commercially munication demand in national security mine, located in Erdos, north China’s available fuel source for nuclear power and public services. Inner Mongolia Autonomous Region, plants. Y IN BOGU Extended Visas Edmund Thomas Downie shows his visa to the press after becoming the first American citizen to be issued one of the new visas valid for entry within 10 years at the Visa Department of the Chinese Embassy to the United States in Washington D.C. on November 12. Starting on November 12, under a new agreement announced during the Asia-Pacific Economic Cooperation Economic Leaders’ Meeting in Beijing, China and the United States will grant each other’s citizens business or tourist visas valid for entry within 10 years time. The validity of student visas will also be extended to up to five years. http://www.bjreview.com November 20, 2014 BEIJING REVIEW 5 THIS WEEK ECONOMY ZHANG LING On a monthly basis, the PPI index The October growth rate has decel- CPI and PPI contracted 0.4 percent from the erated compared to September’s 15.3 China’s consumer price index (CPI), a previous month, the same as that of percent, which was the fastest growth main gauge of inflation, grew 1.6 percent September. rate in 19 months. year on year in October, the National The PPI declined for the 32nd Imports in October stood at $161.46 Bureau of Statistics (NBS) revealed on straight month and more quickly than billion, up 4.6 percent. November 10. the previous month, which indicates Total exports and imports rose 8.4 The growth showed similarity to existing pressure from subdued percent to $368.33 billion in October, September’s, which was the lowest since manufacturing activities and economic as trade surplus expanded to $45.41 January 2010, the NBS said. growth momentum. billion, up 46.3 percent. On a monthly basis, October’s CPI The PPI had dropped 1.8 percent In the first 10 months of this year, was flat against the previous month, year-on-year in September, 1.2 percent China’s total exports and imports hit compared with September’s 0.5-percent in August and 0.9 percent in July. $3.53 trillion, up 3.8 percent. Trade sur- increase. In the first 10 months, the country’s plus during the period stood at $277.11 The inflation index grew 2.1 percent PPI dropped 1.7 percent year-on-year. OPENING UP TO billion, up 38.5 percent year on year. year on year in the first 10 months, well THE NORTH During the January-October period, below the 3.5-percent full-year target trade with the European Union, China’s A train loaded with set by the government. Surging Exports largest trading partner, saw the fastest China’s exports rose 11.6 percent year on commodities sails into Meanwhile, China’s producer price Manzhouli railway freight growth of 9.8 percent, amounting to index (PPI), which measures inflation at year to hit $206.87 billion in October, station, Inner Mongolia $509.23 billion. wholesale level, dropped 2.2 percent data from the General Administration of Autonomous Region, on Trade with the United States, China’s November 8 year on year in October, the NBS said. Customs showed on November 8. second largest trading partner, came in at $453.74 billion, up 5.5 percent. China- ASEAN trade went up 7.4 percent to $391.72 billion. FU JIANBIN In contrast, trade between the Chinese mainland and Hong Kong fell 10.1 percent to $297.05 billion in the first 10 months, while trade with Japan fell 0.1 percent to $259.51 billion. Energy Agreement China and Russia signed agreements on November 9 to boost their energy cooperation, including a memorandum of understanding (MOU) to develop a second route to supply China with Russian natural gas. Chinese President Xi Jinping and his Russian counterpart Vladimir Putin witnessed the signing of a series of bilat- eral cooperation agreements, including an MOU of the China-Russia West Route natural gas pipeline and a framework agreement between China National Petroleum Corp., China’s largest oil and gas producer, and Russia’s energy giant Gazprom. The two countries have seen broader and closer feasible cooperation in new situation, according to the two leaders. New Channel They agreed to push forward A construction vehicle works at a section of a tunnel of the Jiujiang-Jingdezhen-Quzhou railway in east China’s the construction of the east route gas Jiangxi Province. pipeline as scheduled, launch the west Designed to travel at a speed of 200 km per hour and with an approved investment of 25.92 billion yuan ($4.23 route at an early date, negotiate major billion), the 333-km railway is expected to be completed in 2017. oil projects in an earnest manner and

6 BEIJING REVIEW November 20, 2014 http://www.bjreview.com THIS WEEK LONG HONGTAO Also on November 8, the two cen- tral banks signed a currency swap deal worth 200 billion yuan ($32.64 billion) or 37 billion Canadian dollars. Aircraft Export Harbin Aircraft Industry Group Co. Ltd. (HAIG), a subsidiary of Aviation Industry Corp. of China (AVIC), on November 11 signed a contract with a U.S. airliner to sell 20 Y12 series aircraft to the firm. The aircraft will be used for sight- seeing tours and cargo transport from Las Vegas to the Grand Canyon. This is the first time China has exported civil aircraft to the United States. The HAIG, based in Harbin, capital of northeast China’s Heilongjiang Province, is a component supplier for world famous aviation enterprises such as Boeing and Airbus and has indepen- dently developed a variety of aircraft, including helicopters and light regional aircraft. The Y12 series aircraft is a light and general purpose aircraft. The high wing Ready to Set Sail two-engine aircraft can be used for both passenger and cargo transportation, as Ships float on the main course of Xiangjiang River around Orange Island Bridge in , capital of central well as parachute jumping and touring. China’s Province. HAIG has sold 130 units of its Y12 series aircraft to more than 20 countries and regions worldwide. discuss new cooperation projects of billion) and a daily two-way quota of 23.5 Funding Boost nuclear power and hydropower. billion yuan ($3.84 billion). Chinese smartphone manufacturer ORGANIC Xiaomi Inc. is talking to investors and Stock Trading Link Yuan Clearing Bank banks to raise about $1.5 billion in its A much-anticipated pilot project to AGRICULTURE China’s central bank on November fifth round of financing, financial news connect stock trading in Shanghai and Farmers of the Chushantou Eco- 9 appointed the Industrial and website Jiemian of the Shanghai United Hong Kong aims to open up A-shares Agricultural Cooperative harvest Commercial Bank of China (ICBC) Media Group reported on November 8. and usher in further reform in China’s organic chrysanthemum in Jing’an County, east China’s to clear transactions involving the coun- The fundraising target is roughly capital market. Jiangxi Province try’s currency, the Renminbi or yuan, in $1.5 billion, which would be the largest The China Securities Regulatory

XU ZHONGTING Canada’s financial hub of Toronto. investment (excluding IPO) raised by Commission and the Hong Kong According to a memorandum of any Chinese company backed by Securities and Futures Commission an- understanding (MOU) between the two venture capital. nounced on November 10 that they had central banks, the People’s Bank of One of the investors is said to be approved the launch of the pilot project China (PBC) decided to authorize the DST Global, a London-based invest- to provide mutual-trading access Canadian branch of ICBC to clear yuan ment firm that focuses on Internet between the Shanghai and Hong Kong transactions in Toronto, the PBC said in companies, Jiemian said in the report. bourses. a statement on its website. Xiaomi, currently the world’s Investors will be allowed to trade The PBC signed the MOU with the third largest smartphone maker after eligible shares listed on either market through local securities firms or brokers Bank of Canada on November 8. In Samsung and Apple, will use most of from November 17. the MOU, the Canadian central bank the money raised to develop video The project allows a maximum cross- promised to support the establishment content for Xiaomi TV, according to the border investment of 550 billion yuan ($90 of a yuan clearing bank in Canada. report.

http://www.bjreview.com November 20, 2014 BEIJING REVIEW 7 THIS WEEKWORLD XINHUA/AFP

 

GERMANY RUSSIA German Chancellor Angela Merkel and Mayor of Pedestrians walk under a board listing foreign currency rates Berlin Klaus Wowereit place roses in a preserved against the Russian ruble outside an exchange office in central segment of the Berlin Wall during commemorations Moscow on November 10 when Russia’s central bank on November 9 to mark the 25th anniversary of the announced to end the dollar/euro currency peg fall of the landmark barrier between West and East Germany XINHUA/AFP  AUSTRALIA Queensland police on November 12 patrol near the Brisbane Exhibition and Convention Center where the G20 Summit would be held on November 15-16

8 BEIJING REVIEW November 20, 2014 http://www.bjreview.com  THE UNITED STATES Astronomers watch 3D footage of the comet the spacecraft Rosetta would soon land on during a viewing party on November 12 at the University of Maryland in College Park, Maryland. Rosetta successfully landed on the comet after sailing through space for more than 10 years XINHUA/AFP XINHUA/AFP XINHUA/AFP XINHUA/AFP  BRAZIL Men work to construct a 12-meter-high sandcastle that aims to be the highest of its kind in the world in Niterói on November 11

PALESTINE A fisherman displays his catch at the port in Gaza City on November 10 after Israel allowed, for the first time since 2007, the transport of Gazan fish to the West Bank http://www.bjreview.com November 20, 2014 BEIJING REVIEW 9 THIS WEEKPEOPLE & POINTS

 Film Mogul & Art Collector

Wang Zhongjun, Chairman of the Beijing-based Huayi Brothers Media Corp., reportedly bought Vincent Van Gogh’s masterpiece Still Life, Vase With Daisies and Poppies at Sotheby’s New York on November 4 for $61.8 Taking Root in Cities million. This painting was produced in June 1890, one month before the Oriental Outlook artist attempted to take his own life. Wang was born in November 1960 in a military family. He joined the November 6 army in 1976. After leaving the army, he studied in the United States from The household registration system, or 1989 to 1994 and got a master’s degree of mass media at State University hukou, is regarded as a vitally important of New York. In 1994, Wang Zhongjun and his younger brother Wang element of a person’s life in China. The Zhonglei co-founded Huayi Brothers, which has since evolved into one of system, which was formed during the China’s largest private entertainment groups engaging in film, TV, music and other businesses. era of the country’s planned economy, Wang Zhongjun, who has been a fan of painting and art since childhood, has a reputation has played an important role in control- as an influential art collector. ling population migrations. However, as China’s economy and society undergo ever more profound reforms, the nega- tive impact of the system has become increasingly obvious. Although China has Will Ebola Be Transmitted to China? attempted to reform the system many times in the past 30 years, the speed and Caixin Century Weekly efficacy of such reforms have fallen short October 27 of the public’s expectations. The Ebola epidemic in West Africa is continually worsening. The World In July, the Central Government pub- Health Organization predicts that by December, new cases can be expect- lished a document on the further reform ed to reach up to 10,000 per week. of the hukou system, putting an end to The Ebola virus is one of the most dangerous to be identified in human the dual household registration system history. The recent outbreak in West Africa is not the pathogen’s first. In that divided the nation into rural and ur- 1976, the first ever Ebola outbreak, in Zaire, now the Democratic Republic ban populations. of the Congo, killed 280 people. According to statistics for 2013 pub- This time around, more than 14,000 cases, including those suspected, probable and confirmed, lished by the National Bureau of Statistics, have been reported in a number of countries including Guinea, Liberia, Sierra Leone, Spain, the 289 million people lived away from their United States, Nigeria and Senegal. Of this total, more than 5,000 sufferers have so far died. registered place of residence, among At present, Africa is no longer an isolated continent. The Ebola outbreak in Africa concerns which 245 million were migrant people. the whole world including China. Economic ties between China and African countries are growing China’s Migrant Population Report for increasingly closer, with 1 million Chinese living and working in Africa and 100,000 Africans living in 2013 published by the National Health south China’s Guangdong Province alone. and Family Planning Commission showed As the Ebola virus continues to spread in Africa, is there a risk that the virus may be transmitted that in 2012, the average age among to China? Chinese experts believe that chances for the virus to become widespread in China are slim. In addition, the country’s disease prevention and control system has improved since the SARS out- break in 2003. However, China should remain vigilant given the unpredictability of the virus.

“Efforts must be stepped up to advance “The official will be held accountable market-oriented reforms, and a final even after he goes to other posts, push may even be needed to give retires, or quits his job.” impetus to them at an Yuan Shuhong, deputy head of the Legislative Affairs Office of the State Council, noting that China is to set appropriate time.” up a lifelong accountability system for officials in a Lu Feng, a Peking University professor in economics, stating recent interview with China Radio International Chinese President Xi Jinping’s latest elaboration on the “new normal” theory has served to build consensus for bolder economic reforms

10 BEIJING REVIEW November 20, 2014 http://www.bjreview.com THIS WEEK

Don’t Play With Your Designating such behaviors as a crime Phone While Driving would greatly help to reduce traffic accidents. Xinhua Daily Telegraph However, it is highly possible that such an initia- tive would meet with difficulties in reality. For November 3 example, as many drivers use Global Position As smartphones become widely used and so- System (GPS) applications on phones while cial networking platforms such as Twitter-like driving, offenders may defend themselves by micro-blogging service Weibo and instant mes- claiming that they were not looking at social saging tool WeChat gain popular traction, many networking platforms but at their GPS. This drivers have gotten into the habit of checking poses a considerable challenge for the drafting their Weibo or WeChat or even taking photos and implementation of any related legislation. with their phones while driving. Every driver should be responsible for the In recent years, drivers who use their safety of themselves and their passengers and phones while driving have caused many traffic be encouraged to avoid reckless behaviors. If accidents. However, there are no laws govern- dangerous driving practices continue, the legis- ing behaviors such as driving while looking at lature will have no option but to enact new laws one’s micro-blog or WeChat. to ensure road safety.

 Designer for APEC Leaders members of the migrant population was Luo Zheng, a prominent fashion designer in China, has become a focus of the fashion 28. The younger generation of migrants world as one of the designers of outfits for APEC economic leaders, who held their an- was reported to have moved to cities at an nual meeting in Beijing in early November. This year’s outfits were widely applauded for earlier age and to live further away from successfully combining traditional Chinese elements with modern fashion concepts. their hometowns in comparison to previ- Luo was born in June 1970 in Beijing. She graduated from ous generations. They have also displayed Shenzhen University in 1991. Five years later, she created her own a clear preference for settling in big cities. fashion brand and became chairwoman and design director of her Against this backdrop, the goals of the own clothing company in Shenzhen, south China’s Guangdong recent spate of hukou system reforms are Province. twofold: to promote the transformation Luo has been known as a talented designer in the fashion of the migrant rural population to urban circle. She was honored as one of China’s top 10 fashion designers residents and to establish an entirely new in 2002. She has also won awards by global fashion brands like U.S. registration system. brand Nautica, and was invited to design for French brand Louis Vuitton.

“The new arrangement will facilitate “Monetary policy in China is clearly geared the introduction of yuan-denominated toward the long term, and China has the investment products by financial benefit of large reserves and a growing institutions in Hong Kong and enhance economy, with a vigilant central bank. I its position as an offshore yuan think all the ingredients are there to business center.” address the potential market volatility.” Norman Chan, Hong Kong Monetary Authority Chief Christine Lagarde, Managing Director of the Executive, commenting on the central bank’s decision International Monetary Fund, speaking in Beijing on to abolish the daily 20,000 yuan ($3,260) conversion November 12 cap for Hong Kong residents

http://www.bjreview.com November 20, 2014 BEIJING REVIEW 11 12 BEIJING REVIEW November 20, 2014 http://www.bjreview.com http://www.bjreview.com November 20, 2014 BEIJING REVIEW 13 COVER STORY APEC’s New Vision The Beijing Agenda draws a blueprint for an integrated, innovative and interconnected Asia-Pacific By Yu Shujun

TAAP,” “connectivity” and “innovation” regional economic integration; promoting in- Future Through Asia-Pacific Partnership. were among the buzzwords during novative development, economic reform and “The two documents further define the ‘Fthe Asia-Pacific Economic Cooperation growth; as well as strengthening connectivity directions, goals and actions of the region’s (APEC) Economic Leaders’ Week (November and infrastructure development. development and mark the beginning of a 5-11) in Beijing and they will certainly become On November 11, after their annual new era of Asia-Pacific cooperation,” Chinese the keywords for the Asia-Pacific region’s future meeting ended, APEC economic leaders re- President Xi Jinping told the media at a press development. leased two important documents—the 22nd conference after the 22nd APEC Economic Revolving around the theme of Shaping APEC Economic Leaders’ Declaration: Beijing Leaders’ Meeting closed. the Future Through Asia-Pacific Partnership, Agenda for an Integrated, Innovative and The latter is a commemorative state- this year’s APEC Economic Leaders’ Meeting Interconnected Asia-Pacific and the Statement ment—the first of its kind in the history of focused on the three major topics: advancing on the 25th Anniversary of APEC: Shaping the APEC—which “we believe will give strategic

14 BEIJING REVIEW November 20, 2014 http://www.bjreview.com ONE BIG FAMILY: APEC economic leaders pose for a group photo during their annual meeting in Beijing on November 11

region and all APEC member economies, the Chinese President said. According to the APEC economic leaders’ declaration, APEC member economies will be- gin studying issues surrounding the FTAAP and will submit recommendations by the end of 2016. “APEC has been called the ‘incubator’ of an FTAAP for years,” said Gao Hucheng, China’s Commerce Minister at a press conference after the APEC Ministerial Meeting adopted the roadmap on November 8. “Launching the joint strategic study on FTAAP issues marks a progression of the APEC’s role from being an ‘incubator’ to being a facilitator for the FTAAP.” Trade and investment facilitation was set as the objective when APEC was established 25 years ago. In 2006, APEC economic lead- ers put forward the vision of an FTAAP, but it was not an objective that could be achieved immediately. In 2010, the APEC Economic Leaders’ Meeting agreed to accept regional FTA negotia- Y AO DAWEI tions—such as ASEAN plus Three, ASEAN plus six and the Trans-Pacific Partnership (TPP)—as potential pathways to the FTAAP and to make guidance to the APEC, consolidate its position tained strong growth in the long term. APEC an incubator of the FTAAP. But no real and give full play to its role of leading and co- progress was made. ordinating economic cooperation in the Asia- In recent years, all kinds of regional FTAs Facilitating FTAAP have thrived within the Asia-Pacific region. Pacific region,” said Xi. The APEC economic leaders endorsed a road- However, Gao said, due to different rules, stan- The 21 APEC member economies have a map for promoting the Free Trade Area of the dards and development levels of the region’s combined population of 2.8 billion, or 40 per- Asia-Pacific (FTAAP) process. This is “a historic economies, they failed to facilitate cross-border cent of the world’s total, generate 57 percent of step we took toward realizing the FTAAP,” trade and investment. the world’s GDP and contribute 48 percent to marking the official launch of the process and A report released on November 7 by global trade. Facing the uneven recovery of the demonstrating the confidence and determina- the Pacific Economic Cooperation Council world economy, the Asia-Pacific has entered a tion of APEC members in advancing regional (PECC), a non-governmental official observer new stage of development with both new op- economic integration, said Xi. of APEC, said a high-quality FTAAP that in- portunities and new challenges. The decision will raise integration to a new cludes all APEC members would increase Xi said that APEC economic leaders have and higher level, benefit economies at various the size of the global economy by $2.4 tril- reached consensus that economic integration development stages across the Pacific Ocean lion by 2025. The report also suggested that s s is the driving force behind the region’s sus- and inject new energy into the growth of the further liberalization via the U.S.-led TPP and http://www.bjreview.com November 20, 2014 BEIJING REVIEW 15 SHARING WISDOM: APEC economic leaders hold their annual meeting in Beijing on November 11

the ASEAN-led Regional Comprehensive lack of capacity. On people-to-people exchanges, In terms of institutional con- Economic Partnership (RCEP) should only much work still needs to be done to ease barriers nectivity, APEC economic leaders will add an estimated $223 billion and $644 bil- to interaction and mobility. strive to make progress in addressing lion to the global economy, respectively. To tackle these issues, Xi said that the APEC issues of trade facilitation, structural “Economies in the Asia-Pacific region hope members agreed to expand cooperation in in- and regulatory reforms, as well as the FTAAP can come to fruition as soon as pos- frastructure investment and financing, promote facilitating transport and logistics. sible after being incubated for years to bring public-private partnerships, and thereby break In his opening remarks at the greater benefits to companies and people in the financing bottleneck. leaders’ meeting, Xi announced the region,” said Gao. As the Chinese saying goes, “to end pov- that China will donate $10 million Roberto Azevedo, Director General of the erty, build a road.” Infrastructure construction for institutional development and World Trade Organization (WTO), believed that and connectivity are a prerequisite for regional capacity building for APEC and the FTAAP agreements would be compat- economic integration. provide 1,500 training locations for ible with multilateral trade systems and would “Just imagine the economic power that developing APEC member econo- complement the WTO. “Any move toward trade will be unleashed when the rest of the world mies to build their capacity in trade liberalization and against trade protectionism is becomes connected,” said Greg Boyce, and investment. a good move,” Azevedo told a press conference Chairman and CEO of Peabody Energy from APEC economic leaders also on November 8 in Beijing. the United States, the world’s largest private- pledged to facilitate the movement Michelle Bachelet, President of Chile, ex- sector coal company, at the APEC CEO Summit of people across borders and the pressed her strong support for the launch of on November 10. “China is a perfect example of exchange of innovative ideas. the roadmap to realize the FTAAP, in a speech what happens: Over the last 10 years, 600 mil- They set the goals for people- to-people connectivity at achieving at the APEC CEO Summit 2014 on November 9. lion people have been moved up.” LI XUEREN “We’re certain that we’ll build upon the A PwC report shows that Asia’s infrastruc- 1 million intra-APEC student ex- many regional treaties already in place or under ture market is going to grow by 7-8 percent changes per year by 2020 and negotiation, such as the Pacific Alliance, the annually over the next decade, to reach $5.3 tril- increasing the number of student exchanges to developing economies, as well as RCEP and the TPP,” said Bachelet. lion by 2025, or 60 percent of the world’s total. 800 million APEC tourist arrivals by 2025. “The various regional integration projects in the China has a competitive advantage in At the APEC CEO Summit, U.S. President Pacific region are no zero-sum game,” she added. infrastructure construction, and is willing to par- Obama announced that China and the “On the contrary, they complement each other ticipate in international infrastructure projects United States have agreed to implement a and reflect the variable geometry of a complex and and cooperation in connectivity, said Wang new arrangement for visas: Student visas will diverse but ultimately highly dynamic and creative Zhenyu, an associate researcher with the China Institute of International Studies. be extended to five years and business and region, one that is setting the course and giving tourist visas will be extended to 10 years. shape to the new century.” Right before the APEC Economic Leaders’ Meeting, Chinese President Xi announced on Currently, visas between the two countries November 9 that China will contribute $40 last for only one year. Improving connectivity billion to set up a Silk Road Fund at a dialogue According to a 2013 report by the World APEC economic leaders also set the targets meeting on strengthening connectivity with Tourism Organization and the World Travel & to enhance regional physical, institutional and China’s neighboring countries. The goal of the Tourism Council, visa facilitation could bring people-to-people connectivity by 2025. new fund is to “break the bottleneck in Asian APEC 38-57 million additional international Despite the achievements in promoting connectivity by building a financing platform.” tourist arrivals by 2016. The inflow of additional connectivity within the region, challenges persist. The fund will be used to provide invest- international tourism receipts generated by There is still a disparity in the quality of and access ment and financing support for carrying out these additional arrivals could reach $62-89 to infrastructure throughout the region, and a large infrastructure, resources, industrial cooperation, billion. The total number of jobs created as a gap in the ability of institutions to promote con- financial cooperation and other projects related consequence of this increase is estimated to nectivity due to various regulatory constraints or to connectivity for those countries. reach 1.8-2.6 million.

16 BEIJING REVIEW November 20, 2014 http://www.bjreview.com Wang believed that regional connectivity oped and developing economies in the region, meeting on structural reform in 2015 to dis- will become a new pillar, together with trade due to a number of factors including gradual re- cuss issues including overcoming the middle- liberalization, investment facilitation and tech- covery of developed economies, more subdued income trap. nological cooperation, to prop up the economic trade activities globally and domestic demand, Furthermore, they will to tap into the integration of APEC. said Hew. growth potential of emerging sectors such as In 2014, the Asia-Pacific region’s GDP is the Internet economy. estimated to grow 3.9 percent, 0.1 percentage Under this inclusive support pillar, they will New driving forces strengthen cooperation on entrepreneurship Amid the uneven recovery of the global point lower than that in 2013. To achieve strong, sustainable, balanced and employment, the health sector, food se- economy, economic growth in the Asia- curity and safety, and sustainable agricultural and inclusive growth over the longer term, new Pacific region has lost some steam. For the development. Disaster prevention and mitiga- sources of growth should be created. first half of 2014, the region’s combined GDP tion, social responsibility, business ethics and growth only expanded by 3.9 percent, down APEC economic leaders reached an anti-corruption efforts are also suggested, from the 4.3-percent growth rate in the sec- accord that the Asia-Pacific region should alongside an emphasis on ond half of 2013, according to a statement continue to deepen structural reform, the participation of women by Denis Hew, Director of the APEC Policy strengthen innovative growth and promote in the economy. n Support Unit, when releasing APEC’s latest closer cooperation in five pillars—economic Economic Trends Analysis report at a news reform, new economy, innovative growth, briefing in Beijing on November 6. inclusive support and urbanization. The slower growth happened in both devel- They agreed to convene a ministerial [email protected] http://www.bjreview.com November 20, 2014 BEIJING REVIEW 17