NORTHWEST CHINA COUNCIL NEWSLETTER

#22, July -. September, 1986

AMERICA'S STAKE IN CHINA'S MODERNIZATION

The Northwest China Council's investment, or trade. June 6 symposium,"America's Stake in China's Modernization" saw * Although China's modernization the first U.S. Ambassador to China, remains largely an internal matterj directors of The Asia Society's limited and selective opportunitie~ China Council and American special-. exist for increased U.S. - China ists on China try to discern the trade and investment. extent of future U.S. involvement with China and how important the * If reforms maintain their current outcome of China~s modernization character, it's important they efforts will be for U.S. interests. should succeed. Failure would be disastrous for one-third of For the most part, discussion the world's population. focused on factors influencing trade, investment, and education. China is modifying its economic Definitive answers remained elu- system, said Harry Harding, Brook- sive. Discussion highlighted ings Institution Foreign Policy a number of points, among them: Studies Program senior fellow and co-chairman of the national China * China is in ferment right now. Council. But,"it's a wild exag- Economic, social and political geration" to claim China is aban- reforms are underway. doning Marxism. A mixed system combining state, collective, and * Just where the reforms are headed private production, autonomous and is unclear to outside observers authoritarian administration is and probably to the Chinese them- emerging. .selves.

* Reforms are likely to continue and survive Deng's passing. ~ ..WASHINGl'ON. PARK ZOO * Chinese modernization is a Chi- nese matter. In the last analysis, "A Golden Monkey Experience" what happens in China primarily JUT IY15 ,: 530PM..., attheZoo depends on what the Chinese them- se1ves do, not on U.S. invo 1vemen t ,•••••••• S.e.e.S.p.e.c.ia.l.E.v.e.n.ts.S.e.c.t.io.n- ••••• -

1 stanley Lubman, attorney with that do not pay enough in foreign Heller, Ehrman, White & McAuliffe currency," Lubman said. And even in San Francisco, concurred, saying if a joint venture gets permission that China's economic reforms to sellon the Chinese domestic "will go on for a very long time." market, foreign partners cannot Lubman, who has represented scores expatriate their profits. of U.S. firms in negotiations with the Chinese, emphasized the American companies currently are reforms are "not always consistent, "angry and disappointed," Lubman not always headed in the same said. "They feel they are being direction." Operating in this gouged by the Chinese demands." environment has been frustrating But, Lubman had little sympathy, for foreign businesses, and joint claiming business people brought ventures are almost impossible it upon themselves. "They to work out. shouldn't have been euphoric in the first place.1I For one thing, it's difficult to get necessary materials. Sala- Lubman remained convinced U.S. ries remain low, but social costs firms will continue to do business and subsidies nearly double labor with China. But they should be costs. "The total wage bill is more realistic. "Selective and very high," Lubman said. "The limited opportunities" exist, average cost per worker is close Lubman asserted. But, "people to Hong Kong wages." Given China's on both sides of the table must lower labor productivity, joint be clear about their expectations." investment ven t ur.es have become The Chinese have modified their less attractive. Quality control institutions and procedures to also remains a problem. handle foreign trade and invest- m.ent-._BuL,--.O.s.cillationbetween Lubman said foreigners doing busi- centralization and decentralization ness in China have to deal with has left foreign businesses confus- China's developing legal system. ed. New laws are emerging and expect- ed," observed Lubman. However, Edward Friedman, University of he also noted practice does not Wisconsin professor of political always conform to theory. Foreign- science, argued that the outcome ers doing business in China still of China's current debate over confront unpromulgated internal "China's style of socialist modern- regulations that are difficult ization" is very important. to learn about. One -third of the world's popula- Given China's concern with foreign tion--those living in "Leninist reserves, it's become "impossible party states" including China-- to get approval for joint ventures is watching China's experiment. Its outcome likely will influence what happens not only in China but also in other socialist coun- tries. Northwest China Council Newsletter Published by the Northwest Regional So far, Friedman asserted, China's China Council, sponsored by the World reforms have produced a more human, Affairs Council of Oregon and The Asia Society China Council. more progressive, freer, and more 1912 S.W. Sixth, #252 productive system than that exist- Portland, Oregon 97201 ing in China before Mao's death. (503) 229-3049 Editor: Judy Kliks If China's reforms succeed, it's Published quarterly. less likely other socialist coun- tries will be able to maintain 2 or revert to the kinds of systems mately 10% of its gross national characterized by the traditional product, compared with 40% to 50% Stalinist regimes of Albania or for Singapore and Hong Kong. North Korea. The likelihood of significant But, it won't be smooth sailing growth in U.S. exports to China for the reforms, as Friedman sees is rather slim, according to Lubman· it. To date, China has only modi- China, which is sensitive about fied communal ownership and produc- its foreign reserves, has watched tion. It has not tried to disman- them decline from approximately tle its "nomenclature" system, $12 billion last December to $10.35 a system whereby advancement de- billion at the end of the first . pends on being on an official quarter of 1986. Those reserves list, not on technical competence. will continue to decline to approx- Until it does, China will have imately $9.5 billion by the end difficulty implementing production of this year due in part to the that depends on high technology. recent drop in oil prices, creating a shortfall in expected foreign Friedman also fears that adoption exchange. of western technology and contact with the west will generate re- Opportunities for U.S. trade with sentment against the inroads of China will be "at the margin," foreign values and ways of doing Harding noted, primarily in the things, resentment that could areas· of science, technology, hamper continued reforms. and information.

U.S. involvement in China since China in 1979 recognized that 197~ has resumed in many areas-- . modernization depended upon its buslness, educational and cultural gaining access to western science exchange, sister-city and sister- and technology. One of its strate- state relations, and sports, gies has been bicultural and multi- Harding said. Brit, he also noted cultural exchanges of personnel "the degree of U.S. involvement and information, said Joel in China is extremely limited." Glassman, University of Missouri political science professor. Two-way trade in 1985 amounted to only $8 billion, less than Between 1979 and 1985, nearly the U.S. trade deficit with Taiwan. 37,000 Chinese went abroad for China still ranks 20th among Ameri- studies. Of these, 29,000 were ca's trading partners. state-supported. Most (78%) were mid-career Chinese who took re- The limited nature of U.S. - Chi- fresher courses. Only 22% pursued nese trade should come as no sur- degrees--18% graduate and 4% under- prise to the astute observer, graduate diplomas. Lately, a Harding contended. U.S. involve- greater percentage are coming ment in China is more important for regular degree course work. to the Chinese than it is to Ameri- ca. And, "it's not· very important Approximately half of the Chinese to the Chinese either." studying abroad came to the U.S. Most studied the physical and China's development is not foreign life sciences. trade-driven, Harding explained. Unlike Japan, China is richly Although Chinese are the fastest endowed with natural resources. growing foreign student group It does not have to trade or die. in the U.S., they still constitute China's phenomenal economic growth only 2% of foreign students study- has been achieved without extensive ing in the U.S. exports. China exports approxi- 3 The Chinese have some reservations about sending students to the SPECIAL EVENTS U.S., Glassman said. For one thing, they fear students won't OREGON - CHINA UPDATE: return.On the other hand, they fear they will return, contaminated "A GOLDEN MONKEY with western values and attitudes. They also worry about finding EXPERIENCE" jobs for those trained abroad once they returQ. Tuesday, July 15 5:30 - 7 PM Leonard Woodcock, America's first ambassador to China and currently Meeting Center University of Oregon adjunct pro- Washington Park Zoo fessor said, the Chinese since 1979 (The meeting center is up the have achieved "a miracle" in the hill from the Children's Zoo; countryside. Rural income has in- enter through Gate E) creased significantly; per capita living space has grown dramatically; Admission: $3 (refreshments in- and China's current 330 kilograms a cluded); you will not have to year per person grain production is pay Zoo admission if you say you very close to the self-sufficiency are with the Northwest China Coun- level of 400 kilograms a person per cil. year. RSVP Required: 229-3049 (limited On the industrial side, China's seating) production grew by 18% last year a- lone--lO% higher than the targeted growth ra~e_Qf 8% -__., Gene Leo, Washington Park Zoo dlrector and~he enfnusiasrlc~~=-~-~ Woodcock doubted, as some observers initiator of the three-month Golden have feared, that conservative Monkey visit in Portland, will forces will gain ascendance once join with the Chinese zoological Deng Xiaoping is no longer leader. team, in presenting China Council "I'm'confident progress will con- associates with the story of this tinue after Deng." Reforms are important first exchange. deeply imbedded in China. Skilled people are in place who are com- The Golden Monkey pair is from mitted to reform. "The feeling of the Chongqing Zoo in Sichuan prov- the people" will make it impossible inc~ where their natural homes to reverse reform." are in high and remote mountain forests. Their large size and The extent of U.S. investment in or upright carriage, with gleaming trade with China notwithstanding, golden hair and blue faces, make and regardless of the particular them a spectacle in themselves. direction China's reform efforts Along with the giant pandas, whose will take, "China has a bright fu- habitat they share, Golden Monkeys ture," Woodcock said. "The U.S. are considered as national treas- can, should, and will have an inte- ures. These are endangered an~- gral part in that future--if we .mals, whose habitat is being de- h-ave any sense." stroyed in the modernization of China. Throughout history, their John Villaume meat and bones have been used for medicine, and their skins prized as a symbol of high social status.

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4 After the talk, there will be Ruthanne Lum McCunn, an Amerasian a short reception, followed by of Chinese and American descent, time to visit the monkeys them- is the author of several historical selves and see the Chinese cultural novels telling the tales of ex- exhibition complementing the traordinarily courageous and adapt- exchange. able Chinese-American men and women. Best known for her 1981 book, Thousand Pieces of Gold, CHINESE CONVERSATION she has just published Sole Survi- vor, the story of a Chinese man, CIRCLE who, after the sinking of the British merchant ship on which Three consecutive Chinese Conversa- he worked, drifted on a raft for tion Circles have been scheduled 133 days, setting the record for to begin July 31 and conclude the longest survival at sea (see October 23. The Circle will in- review this issue). clude China Council associates who speak some Chinese, and several Thousand Pieces of Gold tells fluent or native Chinese speakers the story of Lalu Nathoy, who, who will lead the conversations. in MCCunn's own words,"was born Tina Chang, Chinese instructor in Northern China near the Mongo- at Portland state University and lian border. Her parents were Lewis and Clark College, will forced to sell her to bandits prepare handouts for each session during a time of great drought, and plan the meetings, which will and she was brought to America be held on Thursdays, 6 - 7 PM, and auctioned off as a slave in at homes, offices, and recreational San Francisco in 1872. Taken settings. up to Warrens (an isolated mining camp in Idaho) for use as a prosti- ~ The registration deadline is July tute, she was kept from that fate 15, and you may sign up for one, by Charlie Bemis, a saloon keeper two, or all three circles (each and gambler. Even before she circle meets three times). For a gained her freedom thro gh a poker registration form, call 229-3049. game, Lalu (now known as Polly) e~rned the respect of the towns- people, including the women. "CHINESE-AMERICAN She twice saved the life of Charlie Bemis--first from a severe gunshot HEROES AND HEROINES" wound and then, after their mar- riage, when she dragged him out A Talk and Bookwarming with of their burning cabin on the Ruthanne Lum McCunn edge of the River of No Return."

Wednesday, September 10 5:30'- 7:00 PM "KAM WAH CHUNG DA YS" Chinese Community Hall GUIDED BUS TOUR 315 NW Davis TOJOHNDAY Co-sponsored by the Asian Artists of Oregon and the Chinese Consoli- The town of John Day celebrates its dated Benevolent Association second annual Kam Wah Chung Festival September L2 - 14, highlighting the Admission (includes refr~shments): pioneering role of the Chinese in $2, members of sponporing groups Eastern Oregon. Once again the $3, general public China Council is planning a guided bus tour to the town, 264 miles from Portland, featuring two lead- ers who will make the trip a spe- 5 cial learning experience,Jeffrey of 1942. The seaman, Poon Lim, Barlow and Christine Richardson. drifted alone for 133 days on a tiny raft, the record for such Barlow and Richardson inventoried survivals during World War II. the Kam Wah Chung Building, which The book might best be described was an all-purpose general store, as interesting and informative. dormitory for Chinese laborers, McC~nn chose to tell the story traditional herbal pharmacy, of Poon Lim's survival in a fic- shrine, and opium den run by (Doc) tionalized form, a day-by-day Ing Hay and his partner, business- account of his epic trial. For man Lung On, from the late 1880's those interested in Chinese history to the 1940's. Barlow and and culture, or that of Chinese- Richardson later wrote the popu- Americans, the primary audience lar China Doctor of John Day. for her earlier books, there is some relevant material. Poon The 3-day tour will not only in- Lim was a native of Hainan Island clude the banquet, parade, and fire- in the South China Sea, and in work display that are part of the flashbacks we learn of his child- annual celebration, but guided hood and how it was that he learned tours of local museums, and stops the variety of techniques which on the way home in Bend (over- made his survival possible.There night) and Timberline Lodge. is also some insight into the Advance ~eservations are welcome: lives of those many Chinese seamen 229-3049. who worked on British or American freighters as underpaid and ex- ploited labor. CHINA RESOURCES The photographs bring Poon Lim to life for the reader, and McCunn does a good job of showingu-g-- CLASSICAL CHINESE LANGUAGE, TAOISM how one Chinese, rather an ordinary AT PORTLAND STATE UNIVERSITY person in every respect,marshalled the strengths of his heritage John Emerson teaches two PSU Divi- and his culture to endure a remark- sion of Continuing Education (DCE) able experience. courses this fall, "The Taoism of Lao zi (3 credits, readings in Eng- Jeffrey Barlow lish) and" "Classical Chinese" (non- credit, language course based on texts from Lao Zi). Information Northwest Regional China Council on the classes: 233-9463; pre- Patrons and Donors registration: 229-4812. {)-PATRONS . CH2M Hill International First Interstate Bank of Oregon Governor's China Committee BOOKS IN THE NEWS Patrick Maveety Port of Portland Portland General Electric Sole Survivor MAJOR DONORS Ruthanne Lum McCunn if Blackwell North America Design Enterprises of San Francisco Heller, Ehrman, White & McAuliffe 1985, 235 pp., mapS and photographs Nike, Inc. Powell's Books This book, by Ruthanne Lum McCunn, Sprouse Reitz Co. author of Thousand Pieces of Gold, Robert Y. Thornton is the story of a Chinese seaman Tektronix-Asia/Pacific Operations who was the last survivor of a Touche Ross Co. British merchant ship torpedoed off the coast of Brazil in November 6 CALENDAR OF EVENTS

July 13 PICNIC WITH CHINESE STUDENTS AND SCHOLARS: Sponsored by U.S.- China People's Friendship Association, noon - 4 PM, Sellwood Park, Area A; bring some food to share; swimming; information: Maxine Sv:eetman, 644-7757.

15 *OREGON - CHINA UPDATE: "A Golden Monkey Experience," with Zoo Director Gene Leo and Chinese zookeepers from Sichuan; 5:30 - 7 PM; Washington Park Zoo, Meeting Center; $3 admission (includes refreshments); reservations: 229-3049. "

7/18 - 9/14 "CHINESE WOMEN OF AMERICA, 1834 - 1982": Exhibition of photographs and illustrations; sponsored by Asian Artists of Oregon; Chinese Consolidated Benevolent Association Hall, 315 NW Davis; no admission charge; open T~ursday - Monday, noon - 6 PM; information: 232-0204.

23 "BUDDHISM AND THE CHINESE WORLD VIEW":Lecture by Raffaello Orlando of Italy, visiting professor at Portland State University (PSU); no admission charge; noon, PSU Smith Center, room 338; 229-3049 (World Affairs Council).

31 *CHINESE CONVERSATION CIRCLE: First meeting of Circle #1; registration and information: 229-3049.

August

7 *CHINESE CONVERSATION CIRCLE: Second meeting of Circle #1; registration and information: 229-3049.

8/7 - 10/11 WING LUKE MUSEUM EXHIBITION OF ASIAN ARTIFACTS: Wing Luke Museum, 414 8th St. S, Seattle, WA; information: 206-623-5124.

14 *CHINESE CONVERSATION CIRCLE: Third meeting of Circle #1; registration and information: 229-3049.

27 "WOMEN IN CHINA": Brown Ba~ Lecture by Lou Weiwei of China; noon; no admission charge; PSU Smith Center, room 338; 229-3049 (World Affairs Council).

September

4 *CHINESE CONVERSATION CIRCLE:First meeting of Circle #2; registration and information: 229-3049.

10 *"CHINESE-AMERICAN HEROES AND HEROINES":Lecture and bookwarming for author Ruthanne Lum McCunn; 5:30 - 7 PM;Chinese Consolidated Benevolent Association ~:all, 315 NI"jDavis; $2, members, $3, general public.

11 *CHINESE CONVERSATIONCIRCLE: Second meeting of Circle #2; registration and information, 229-3049.

12 - 14 *KAM WAH CHUNG DAYS GUIDED BUSTOUR TO JOHN DAY: Led by Jeffrey Barlow and Christine Richardson who wrote China Doctor of John Day; registration and information: 229-3049.

18 *CHINESE CONVERSATION CIRCLE: Third meeting of Circle #2; registration and information: 229-3049.

23 *"A CELEBRATION OF CLASSICAL CHINA": Deadline for Northwest China Council's China tour to Beijing, Hangzhou, Suzhou, Shanghai, Hong Kong October 23 to November 8; registration information: 229-3049.

*Program is sponsored by the Northwest Regional China Council. ACKNOWLEDGEMENTS: This issue was prepared by Jeffrey Barlow, Judy Kliks, Jane Larson, and -John Villaume.

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