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VOL. 36, NO. 50 DEC. 13-19, 1993

! 994 Important for Economic Reform CONTENTS

n In 1994, China's economic reform will focus on accelerating the process of opening to the outside world, strengthening and EVENTS/TRENDS 4-6 improving macro-control, and maintain a sustained and heal- 1994 Critical for Economic thy growth in the national economy (p. 4). Reform Li's South Asian Tour Enhances Friendship HK Talks: Failure But Not the A Dynamic Bohai Rim on the Horizon End China Set to Unify Exchange Rate Quick Steps Urged to Fight AIDS [] The Rim of the in north China is expected to become one of China's fastest-growing areas in the 1990s. INTERNATIONAL Construction of infrastructure facilities is being accelerated Nigeria Under Military Rule ]'or the area's economic boom (p. 10). Again 7 OPEC Tries to Prevent the Decline of Oil Prices 8 Political and Economic Situation Lucrative Investment Opportunities in Eastern Europe 8 CHINA [] Zhenjiang in Jiangsu Province, the ancient capital of the A Dynamic Bohai Rim Looms on State of Wu during the Three Kingdoms Period (220-280), has the Horizon 10 attracted an ever-increasing number of foreign business people Zhenjiang Special (I): A City since it was designated an open coastal city by the State Full of Investment Council in 1988. Over 400 foreign-funded enterprises were Opportunities 15 approved in the first nine months of this year, raising the total Zhenjiang Economic and to more than 900, involving foreigners from 29 countries and Technological DevelopmenV regions (p. 15). Zone 18 Zhenjiang Special (II): A Renowned Three Kingdom City 18 New Trends In Use of Foreign Funds Mao's Family Members Brought Out of the Shadow 20

SOCIETY/PEOPLE 23-24 [] An ever-increasing amount of foreign investment has TOURISM 25 poured into large-scale high-tech and infrastructure projects in BUSINESS/TRADE 26-28 inland China, resulting in expanded scale and gradual diversi- CULTURE/SCIENCE 29-31 fication of the investment (p. 26). COVER-. coal dock. Sketch map of Bohai rim cities (insert). Photos by Xin Hua

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jects to be started in the future": 1994 Critical for --Applications for bank loans should be filed only after a cer- tain proportion of the capital in- vestment is ensured for a new Economic Reform project; --Loans to cover the working remier Li Peng said econo- exchange rate will be abolished, capital must not be used as capi- p mic reform in 1994 will fo- in favor of a fluctuating market- tal investment, and banks must cus on accelerating the pro- oriented currency-rate system, Li improve their supervision over cess of opening to the outside said. this issue; world, strengthening and improv- Beginning next year, the gov- --New projects must have suf- ing macro-control, and maintain- ernment will also restructure the ficient working capital and con- ing a fast, sustained and healthy financial and tax systems. State struction must not start before growth in the national economy. coffers will be insured to guar- such funds are ensured. Li spoke to the full panel of the antee macro control, the premier State Council and provincial and said. big-city leaders at the annual na- Li emphasized the importance tional conference on economic of deciding investment scale and Li's South Asian Tour work, which was held on Decem- scope next year. Money should go Enhances Friendship ber 1 in Beijing. to the key state and provincial "The year 1994 is important for projects, especially the develop- hina attaches great import- China's economy to maintain its ment of resources in the central ance to the friendly rela- current momentum, as well as a and western regions, education c tions and cooperation with critical year in establishing a so- and scientific research projects, South Asian countries. China cialist market economy in the premier said. hopes that these countries can China," Li told the conference. He said the present investment solve their problems through con- The government should adhere scale is rather big and all locali- sultation and dialogues so that to the principles laid down by the ties should carefully plan their the peace and stability in the re- third plenum of the 14th Party own key projects for next year. gion can be maintained and a fa- Central Committee, which was Investment in urban residential vorable environment created to concluded last month in Beijing, housing will be increased, he ad- develop their economies. he said. ded. The message was conveyed by Next year, the government will Li called enterprise reform "the Li Ruihuan, chairman of the put into practice some key mea- focus" of China's overall reform 8th National Committee of the sures to improve the country's scheme and the "most difficult Chinese People's Political Con- macro-control system, Li said. issue" in its implementation. He sultative Conference (CPPCC), First, the People's Bank of said the government will try to when meeting with Nepalese China will be strengthened into a restructure state-owned enterpris- King Birendra Bir Bikram Shah full-fledged "true central bank," es into modern, market-oriented Dev on November 26. Li arrived which will have the capacity to businesses. in Nepal on November 25 for a decide and implement China's Next year, the government will four-day official visit. monetary policies, to fine-tune deepen reform of the pricing sys- During their talks, Li expressed cash supply and demand, and to tem "in an active and stable man- the hope that the Nepalese gov- stabilize the currency. ner," Li said. The people's living ernment will continue to play an Second, the government will es- standards will not be lowered by active role in promoting peace, tablish three banks which issue any reform measures, he went on. stability and prosperity in the re- loans for state policy consider- On agriculture, the premier gion. ation, and current specialized pledged to raise investment in or- Meeting with Nepalese Prime banks will be renovated into com- der to achieve another good har- Minister Girija Prasad Koirala mercial banks. vest. Li said the government will the same day, Li said that his Third, the government will uni- raise the purchase prices of grain current visit is aimed at prom- fy the two-tier exchange rates for and cotton to protect the interests oting friendship and enlarging foreign currencies. China cur- of farmers and prevent their year- cooperation and further deepen- rently has two rates: an official ly income from decreasing or ing mutual understanding. one and the foreign-currency stagnating. On November 29, the NPPCC swap-market standard. The premier laid down what he chairman left Nepal for India for The officially mandated low termed "three principles for pro- a six-day official visit.

4 BEIJING REVIEW, DECEMBER 13-19, 1993 EVENTS/TRENDS

talks on the disputed "political reform plan" on November 27 without reaching an agreement. At this crucial moment, Governor Chris Patten said he would publish part of his re- form bill concerning the 1994/95 election on December 10 and sub- mit it to the Legco on December 15. "This decision, made in disre- gard of repeated admonitions by the Chinese side, is extremely harmful to Hong Kong's future and will be absolutely unaccept- able," the HKMAO official said. Lu Ping, director of the HKMAO met with a delegation from the Democratic Alliance for the Betterment of Hong Kong LIU ]IANSHfiNG headed by Tsang Yok Sing on De- Chinese leaders see Li off for his tour to the three South Asian countries. cember 2. He noted that if the He called on Indian President firm policy of the Chinese gov- British side should insist on sub- S.D. Sharma on December 1 and ernment to strengthen Sino- mitting the electoral bill to the Legco, it would mean the unila- met with Indian Prime Minister Pakistan friendly relations and teral termination of the talks by P.V. Narasihma Rao two days la- cooperation, which have devel- the British side. ter. Both sides stressed the im- oped steadily and fruitfully in the Lu said that he was disappoint- portance of furthering Sino- political, economic, trade, scien- ed but not surprised at the failure Indian friendship and cooper- tific and technological and cul- tural fields. of the talks, because the British ation. side was completely insincere In an interview with Indian Li called on Pakistan President Farooq Leghari on December 5. throughout the discussions. journalists on December 3, Li China had laid great hope on said that the two countries, which During their talks, Li said that Sino-Pakistan friendship has the 17th round of talks to settle have no competition politically disagreements over the arrange- and share common or similar stood the test of time. He said China will continue its ments for the elections for Hong views over major international is- support to Pakistan as long as it Kong's district boards in 1994 sues, can help each other econom- can. • and the elections for urban and ically, and that they should make municipal councils in 1995. How- joint efforts for building a just ever, the British side brought the and reasonable new political and HK Talks: Failure talks to a halt over a technical economic world order. But Not the End issue. On the Kashmir issue, Li said Lu said the British side has cast that it is a legacy of history and n official from the Hong aside the long-term interests of China hopes that India and Pak- Kong and Macao Affairs the 6-million Hong Kong re- istan can solve the issue through A Office (HKMAO) under sidents. An agreement had al- peaceful negotiations. the State Council vowed on De- most been reached on the ar- On the nuclear problem, he cember 3 that China will accept rangements for the elections of said that the number of China's no electoral bill passed by the the district boards and two muni- nuclear tests is limited and China Legislative Council of Hong cipal councils when the British has exercised great restraint on Kong (Legco) before any agree- side insisted on the resolution of the issue. ment is reached by China and voting method for the Legco in On December 4, Li arrived Britain. He also said that China 1995. in Pakistan for a five-day visit, will start afresh in accordance "It is only a technical issue and which was the last leg of Li's tour with the provisions of the Basic there is no reason to break down to the three nations of Southern Law after 1997. the talks over a minor point. This Asia. After painfully slow discus- serves to do nothing but prove the Speaking at the airport upon sions, Chinese and British nego- deliberate sabotage of the talks by his arrival, Li said that it is the tiators ended their 17th round of the British side," Lu said.

BEIJING REVIEW, DECEMBER 13-19, 1993 5 EVENTS/TRENDS

The director also pointed out a "formal, steady and important bring China's foreign trade activ- that it was a pretence and a play step" towards a freely-convertible ities closer in line with interna- of tricks for Governor Chris Pat- Renminbi, the final goal of ex- tional practices and will help the ten to propose holding the 18th change control reform. country attract more foreign in- round of talks. "In essence, he is To reach the goal, he said, the vestment and fight inflation. • trying to pressure us by getting country is also considering easing the bill passed through the Legco government control on the trade Quick Steps Urged before having reached an agree- of foreign exchange. Tao said that ment. We shall not be taken in," the government will adopt serious To Fight AIDS he stressed. measures to prevent demand for Chinese Foreign Ministry foreign exchange greatly surpass- hinese experts recently spokesman Wu Jianmin told a ing. supply, thereby avoiding a urged the government to Beijing news brief on December 2 sharp devaluation of the Chinese c take immediate measures that the responsibility of the talks currency. The measures will be to prevent the spread of AIDS. failure lies entirely on the British related to policies concerned with At a Beijing conference called side. Sino-British relations, there- foriegn trade, taxes, and credit, by the Ministry of Public Health fore, are bound to be affected. he added. to mark World AIDS Day (De- Still, China will, as always, work "The government should abol- cember 1), Vice-Minister Yin together with its Hong Kong com- ish the dual-rate exchange system Dakui said that 1,159 cases of patriots to maintain the territo- since the market is stable and the HIV-positive (Human lmmuno- ry's stability and prosperity, and present Renminbi exchange rate deficiency Virus) infections had to ensure the smooth transition of is reasonable," said Jing Xuech- been reported in the country's 22 power in 1997. eng, a researcher with the finan- provinces by the end of Novem- Lu Ping met with a Hong Kong cial research institute under the ber. It is estimated that the actual women's delegation on November People's Bank of China. figure could be as high as 10,000 27. He said that the Chinese side Under China's present double throughout the country. hopes the talks would contin- currency system, foreign curren- The figure was obtained after ue. The issue will be discussed cy is exchanged for foreign ex- studies involving 2.3 million peo- through diplomatic channels, and change certificates (FEC), while ple. no matter how many rounds of the rest of the country uses Ren- "Unless quick steps are taken talks it takes, the Chinese side minbi (or people's currency). One now, AIDS will become rampant will see them through to the end. US dollar fetches about 5.8 FEC on China's mainland in the com- or 8.7 Reminbi yuan at current ing six years," Yin said. rates. According to the ministry, "We favor a floating exchange there were 171 cases of H1V- China Set to Unify rate which responds quickly to positive infections in 1989, but Exchange Rate the market," said Jing, adding the figure expanded at a yearly that it is very likely that the yuan increase of over 200 cases. Among hina's two-tiered foreign ex- exchange rate would seek new the 1,159 cases, 80 percent were change system will be uni- price levels under new economic intravenous drug users and of the c fied next year in a major conditions. 19 patients who showed symp- step towards a freely-convertible Another factor making the re- toms, 14 later died. Renminbi currency, according to form easier is the fact that about However, Yin noted, the trend Tao Liming, deputy director of 80 percent of hard currency need- can still be reversed through tigh- the Institute of International Fi- ed for the country's economic ac- tened surveillance and extensive nance under the Bank of China. tivities is now traded on dozens of public education to disseminate Tao said the unification of the swap markets across the country. knowledge of AIDS prevention. exchange rate would see foreign Hard currency supplied by the The China Association of Sex- exchange certificates gradually government at the official rate of ually Transmitted Disease and phased out starting from next 5.8 yuan is now only used in key AIDS Control has now been es- year. Foreigners and residents of state projects or for importing tablished, and opened Hong Kong, Macao and Taiwan such necessary goods as grain and several downtown consulting cen- would be allowed to convert for- chemical fertilizers. ters. eign cu.rrency directly into Ren- Lou Jiwei, director of the Yin said that the government minbi. macro-monitoring department of would also strengthen scientif- Tao said the unification of the the State Commission for Res- ic AIDS research and cooper- dual-rate foreign exchange sys- tructuring the Economy, said a ate with foreign countries and in- tem meant the country had made single-rate exchange system will ternational organizations. •

6 BEIJING REVIEW, DECEMBER 13-19, 1993 INTERNATIONAL

Nigeria Under Military Rule Again

by Xiong Mingshan

acing nationwide polit- Reconciliatory measures ical unrests and labor adopted by the interim gov- F strikes, Ernest Shonekan Military rule returned ernment, however, failed to resigned as head of state and to Nigeria after Ernest put an end to political crisis commander-in-chief of the and the economic situation armed forces of Nigeria on Shonekan' s surprise worsened with each passing November 17. The posts were resignation as the head day. assumed on the same day by of the interim national On November 7, the prices General Sani Abacha, the de- for petrol, diesel and kerosine fense minister of the recently government. shot up by over 700 percent in dissolved interim government. this largest oil-producing and Abacha was born on Sep- exporting country in Africa, tion, carrying out reform of tember 20, 1943, a Moslem arousing which aroused a political parties and the coun- from the northern state of wide-spread dissatisfaction Kano. Like most soldiers of try's major institutions. especially among the citizens. his generation, he fought in Nigeria, the largest black Labor unions began an in- the 1967-1970 Nigerian civil country in the world, gained war and took part in every indelSendence from Britain in definite nationwide strike on coup d'etat since the fall of 1960. In the past years, Niger- November 15, further~aggra- General Yakubu Gowon in ia was ruled by the military vating the unstable social, pol- 1975. He was appointed chief for over 20 years. itical and economic conditions of staff of the armed forces Not long after the coup in in this country. in 1985 by former President 1985, the military government Abacha in his November 18 Ibrahim Babangida. Abacha led by Babangida worked out speech vowed to restore peace was the only military officer a plan for the transfer to civi- and stability in Nigeria and in the interim national gov- lian rule, under which local establish a lasting and legiti- ernment led by Shonekan. governments and national and mate democracy. He also ap- In his first speech as head of state assembles were set up af- pealed the international com- state on November 18, Aba- ter democratic elections. munity to give Nigeria the cha said that to solve political, A political stalemate result- chance to solve its problems in economic and social problems ed in chaos after Babangida its own ways. He said so be- which have plagued Nigeria, on June 23 annulled the re- cause the United States, Bri- he had decided to dissolve the sults of the June 12 presiden- tain and some other Western interim national government, tial elections.. countries are opposed to the On August 26, Babangida the national and local assem- military leadership in Nigeria. stepped down as president and blies, the state executive coun- They imposed limited sanc- cil as well as the two commander-in-chief of the tions against it after the an- government-sponsored politi- armed forces and dissolved nulment of the results of the cal parties, the National Re- the military government. The publican Convention and the interim national government June 12 presidential poll. Social Democratic Party; ban led by industrialist Shonekan The reactions to the mili- all processions, political meet- was inaugurated on the same tary comeback are mixed. On ings and associations in any day to rule the country until the whole, calm and peace part of the country; and set up the election of a civilian pres- have prevailed throughout the a constitutional conference to ident scheduled for February nation although there were chart a new course for the na- 1994. scattered protests. •

BEllING REVIEW, DECEMBER 13-19, 1993 7 INTERNATIONAL

April, 1993 to the present US$15.10 well below the psy- OPEC Tries to Prevent chological crucial level of US$16 a barrel. The output ceil- The Decline of 0il Prices ing set by OPEC has been sur- passed on every occasion. The supply for August reached 24.3 by Lin Xia million barrels a day, well above the set ceiling of 23.582 million n November 24, 1993, After fierce bargaining, the barrels for the third quarter of ministers of the 12 mem- meeting agreed to keep the daily this year. OPEC was warned of o ber states of the Organi- production ceiling of 24.52 mil- the fact that its members may zation of Petroleum Exporting lion barrels decided on at a Ge- refuse to comply with its set Countries (OPEC) met to decide neva meeting held last Septem- production figures. on what action to take in face ber. The meeting also called On September 25, 1993, the of the year-long decline in oil on non-OPEC countries to cut 1 lth meeting of the OPEC Min- prices. production so as to help raise isterial Monitoring Committee The meeting attributed the prices and stabilize the oil mar- was held in Geneva. OPEC Pres- decline in oil prices to the high ket. ident Jean Ping urged the organ- level of Western oil stock, rising Since the early 1980s, there ization to fight to recover its output in the North Sea and a has been a steady decline in lost credibility in the market- sagging global demand that has prices on the world oil market. place and redouble efforts to come as a result of the continu- The OPEC basket price has fal- comply with its set targets. "We ing global recession. len from US$18.13 per barrel in cannot sustain another price col-

rope's effort to strike a political Political and Economic balance and achieve economic stability. Situation in Eastern Europe The first is a combination of democratic socialist factions, by Zhang Wen made up of the Social Democrat- ic Party and the Social Party, which came from the former ince 1989, East European Slovakia, Romania, Bulgaria and Communist Party. For example, countries have gone Albania, whose democratic sys- s through dramatic changes tems are r~ot yet complete, are the ruling Democratic Left Alli- while transferring their political still burdened with political ance in Poland, the ruling Social systems into a multi-party de- struggles. Democratic Party in Romania mocracy. The region has experi- The parties that assumed pow- and the Social Party in Hungary enced a long period of factionali- er after the fall of communism in all fit into this category. Their zation and power struggle that Eastern Europe, who lacked the political stances are similar to repeatedly broke up and then experience to maintain political the Social Democratic Parties in reorganized its governments. and economic stability, adopted Northwest European countries. Now, after almost five years, improper foreign and domestic After assuming power, they did Eastern Europe has moved to- policies. Disappointed with the not change the newly-formed pol- ward a long awaited period of deteriorating economy and the itical and economic systems, but relative political stability. governments' inability to rectify paid more attention to the social Still, this has not been a uni- the situation, the people in these welfare of the working people in form trend for all the countries countries turned to the older and the course of transferring to a in Eastern Europe. Poland, more experienced left-wing par- market economy. Czech and Hungary have formed ties in hopes of bringing back the The second is a more moderate multi-party democratic systems stability they enjoyed in earlier group, formed by moderate fac- which are operating smoothly, days. Three major political forces tions and others split from the but other countries, including have emerged in Eastern Eu- left- and right-wing parties in re-

8 BEIJING REVIEW, DECEMBER 13-19, 1993 INTERNATIONAL m i lapse, like the one we experi- the North Sea of Britain were increase in oil output. The aver- enced in 1986," Ping said. US$16.72 and US$15.21 respec- age oil output in September in- The Secretariat of OPEC cal- tively, the lowest since 1988. creased from 4.27 million per culated that in the fourth quart- The oil market, like any other day to 4.7 million, further ag- er, a season that due to the cold commodity market, will not go gravating the unbalance be- weather traditionally results in beyond the basic law of the mar- tween supply and demand. Dur- an increase in oil prices, the ket, that is, prices are controlled ing this period, the oil depots volume of oil demand for OPEC by supply and demand. in the Western industrialized would be 25.50 million barrels Since the Gulf War supply countries were full. According per day. The meeting decided has outweighed demand in the to the statistics of the Interna- that the realistic and credible world oil market. There has tional Energy Organization, the output ceiling for the fourth been a steady yearly decline in total oil storage of those coun- quarter of this year and the first oil prices since 1990. The aver- tries was 335 million tons in the quarter of next year would be age oil prices of OPEC oil dec- third quarter this year, an in- 24.52 million barrels per day. lined from US$22.26 per barrel crease of 8 million tons over the Before the fourth quarter of in 1990 to US$18.43 in 1992. It same period last year. this year, OPEC, whose total will drop to US$17 this year. The situation could worsen if volume accounts for 40 percent Although OPEC established a Iraq succeeds in its effort to of the world's oil supply, made production allocation, overprod- have the United Nations end the the decision in September to uction by its member countries three-year embargo on its oil ex- raise oil prices. However, oil was severe and further lowered ports. The oil from Iraqi wells prices began to decline in Octo- oil prices. would add to the surplus mak- ber, and onNovember 11, 1993, In addition, in October, the ing it even more difficult for the prices of oil in Texas of the oilfields in the North Sea of Bri- OPEC to bring prices under con- United States and crude oil in tain and Norway began a large trol. •

cent years, such as the ruling fac- ern countries, imported foreign Czech, Poland and Hungary are tions in Bulgaria and Slovakia. capital, released control over expected to begin to recover be- They hold political views similar prices and liberalized their for- fore 1995 and should reach high to the left-wing parties, but do eign trade as well as local curren- levels of growth by the end of this not advocate socialism. cies. The governmental organs century. Romania, Bulgaria, Slo- And the third is made up of the have also changed according to vakia and Albania will most like- right-wing parties, such as the the needs of a market economy. ly be slower to recover and ruling Civic Democratic Party in At present, the market mechan- will not catch up to the above- Czecho and the ruling Democrat- ism plays a dominant role in their mentioned three countries for ic Party in Albania. They have economies. some years. also begun to draw lessons from However, difficulties still re- Whether East European econ- their political experience and main, such as the slump in prod- omies can restore and grow have readjusted their domestic uction, rising inflation, unem- smoothly will, to a great extent, and foreign policies to meet the ployment, a growing budget de- depend on the improvement of international and domestic needs. ficit, foreign debts and fund international economy. If the Eastern Europe has suffered a shortages. The most knotty prob- economy in Western countries slump in production and an over- lem is how to privatize or revital- suffers further depression, it will all economic crisis as a result of ize the large and medium-sized be difficult for East European the difficulties that often arise in state-owned enterprises. Mean- countries to rapidly develop their the transfer from a planned econ- while, the market economy me- economies. In the near future, omy to a market economy. chanisms have been set up just these countries may place their Up to now, East European recently and still need more time hopes on the newly developed countries have spent three years to be perfected. small and medium-sized private making the transfer, and it has The transfer to a market econ- enterprises, which, enjoying a not been a smooth process. They omy in Eastern Europe has af- high growth rate, are the most have privatized some of their fected different countries in dif- active sector in their economies former state enterprises, in- ferent ways. In view of the cur- and can promote their national creased economic ties with West- rent situation, the economies of economic growth as a whole. •

BEIJING REVIEW, DECEMBER 13-19, 1993 9 CHINA A Dynamic Bohai Rim Looms on the Horizon

by Our Staff Reporter Yao Jianguo

Bohai Sea stretches well over The Bohai Rim in north China is envisaged as one 50,000 km. The Bohai economic of China's fastest-growing regions in the 7990s. The rim includes some 10 large and others include the Pudong New Area in Shanghai medium-sized coastal cities, in- cluding , , Qin- and the Yangtze River Valley. huangdao, , Weihai and , as well as hinterland ci- arly this year, the Land In- ed transfer of land-use rights, ties such as Beijing and Tang- vestment Corp. of the Re- some 100 ROK companies will E public of Korea (ROK) invest US$200-400 million in the shan, and the Liaodong and completed years of meticulous zone within the next two years. peninsulas. investigations and feasibility stu- The decision of the ROK de- The Asia-Pacific region is cur- dies and singled out China's monstrates its confidence in" the rently the most dynamic of the Tianjin Economic and Technol- future of Tianjin, a major indus- world's three major economic ogical Development Zone as the trial center in the Bohai Rim. blocs--the Asia-Pacific Econo- site for the first Seoul-sponsored mic Cooperation, the North overseas industrial zone project. A Land of Treasure American Free Trade Zone and According to the contract signed the European Community. It is last February for the compensat- The 's inland widely believed that the Bohai

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10 BEIJING REVIE%'¢, DECEMBER 13-19, 1993 CHINA

/ Rim will become one of the ranks fourth. ]'he region thus Dalian in the Bohai Rim. ]he world's most vigorous regions as has distinctive advantages un- Dalian-Manzhouli-Hamburg a more open world economic pat- matched by China's other econ- line is some 13,000 km shorter tern develops. omically advanced regions. than the sea route, thus decreas- Tong Dalin, a prominent Ports provide the Bohai Rim ing transit time by 20 days and Chinese economist, was the first with even greater superiority. Its reducing transportation costs by to advance the concept of Bohai ports link large and medium- one-third. Economic Rim. He believes that sized coastal cities to more than In addition, some 50 airlines considering all factors, the re- 160 countries and regions, and link the Bohai Rim with cities gion is a land of treasure unique account for near 50 percent of throughout China and numerous in the world. China's annual handling capac- foreign countries. In recent years, facts have ity and 60 percent of foreign In the earliest years of reform, proved the correctness of Tong's trade. Imported machinery and preferential policies focused on remarks. The Bohai Rim, which equipment flow through the har- and prov- covers only 5.1 percent of Chi- bors into the north China mar- inces in south China. Somewhat na's total territory and is home to ket. later, the country began to pay only 17.9 percent of the national The Bohai Rim region enjoys attention to the Bohai region. In population, produces almost one- an advanced communications 1984, China decided to open 14 quarter of the country's gross industrial output val- ue. In 1987, three of se~en provinces reporting a total industrial output value in excess of 100 billion yuan were located in the Bohai Rim. That same year, eight of China's 25 cities exceed- ing 10 billion yuan in gross domestic product were in the region. In terms of natural re- sources, the region's iron ore deposits account for 40 percent of the national to- tal, while the area has 45 percent of the country's proven oil reserves, 40 bil- lion tons of coal reserves and produces some 40 per- cent of the national output YANG BAOKUN of cotton. The Tianjin Economic and Technological Development Zone attracts more foreign inves- Shandong's output value tors. for coal, oil and natural gas ranks second in the country, system featuring dense highway coastal cities, including Qingdao, while its output of electricity and and railway networks, the coun- Yantai, Qinhuangdao, Tianjin natural gas leads the country, try's most extensive multi-track and Dalian which are located in followed closely by and railway system, and a higher lev- the Bohai Rim. These cities have provinces. ]'he output of el of technology and equipment become forerunners in attracting Hebei's ferrous metals ranks first than the rest of the country. The foreign capital, and introducing in the country. Shandong and Harbin-Dalian, Beijing-Shanghai advanced technology and man- Liaoning rank first and second and Beijing-Shenyang railways agement expertise to the region. respectively in terms of the out- provide easy access to major In 1992, the Bohai Rim was put of building materials. In ports. named one of the country's 10 ,terms of petroleum processing The eastern end of two of economic zones by the State and chemical production, Liaon- the three Eurasian Continental Planning Commission. In Octo- ing ranks first and Shandong Bridges begins in Tianjin and ber of that same year, the 14th

BEIJING REVIEW, DECEMBER 13-19, 1993 11 CHINA

National Congress of the CPC called on the region to accelerate reform and opening during the 1990s. Following the Pearl Riv- er Delta and the Yangtze River Delta, the Bohai Rim is destined to become another of China's rapidly developing areas.

The Lure of Bohai Rim The strategic position of the Bohai Rim has attracted great attention overseas. Several years ago, a Japanese professor pred- icted that in the future Dalian will become the heart of Nor- theast Asia. At present, Japanese business- men are most interested in Dali- The Tianjin-Ulan Bator Continental Bridge opens. MA FENG an and Qingdao, cities closest to Japan. According to Wang Shi- areas. second largest land investment jia, deputy mayor of Dalian, in- As part of an effort to reach project in China--the Korean vestments from Hong Kong, Tai- the goal, ROK companies have Industrial Zone in Weihai, Shan- wan and ASEAN countries are accelerated investment in the Bo- dong Province. A ceremony to on the rise, and Japan has thus hai Rim. Shortly after the two mark the laying of the zone's far provided most of the capital. countries established diplomatic foundation stone was held in Au- For example, the 2.17-square km relations in 1991, ROK compan- gust 1993. The zone will even- industrial land development pro- ies said that greater opportun- tually cover 13.8 square km, and ject has attracted 22 Japanese ities would open to them once first-stage development is cur- companies and banks, the most they gain a foothold in the Bohai rently under way on four square prominent of which are Canon, Rim. km. Thus far, nine joint ventures Matsushita, Toshiba and TDK. The fact that they entered the have registered with the zone, According to recent statistics, Chinese market much later than with total contracted foreign in- Japan's overall share of foreign other countries has filled ROK vestments rising to US$20 mil- investment in China between enterprises with greater enthu- lion. 1979 and 1988 stood at 13.3 per- siasm. For example, in I992, The ROK is one of the top cent. However, Japanese invest- Shenyang, kiaoning Province, five foreign investors in the Bo- ment in Guangdong and Fujian had only 72 ROK-funded enter- hai Rim. Its investments expand provinces stood at only about prises, while in the first seven from the Shandong and giao- 2.35 percent and 2.93 percent res- months this year alone another dong peninsulas to cities deep in pectively. The picture for the Bo- 82 firms were licensed. In Yan- north China. In addition to in- hai Rim was quite different, with tai, the number of ROK-funded vestments in small and medium- Japanese investment in terms of enterprises rose from five in sized enterprises, the ROK has total foreign investment standing 1990 to 97 in the first six months invested in large enterprises and at 28.16 percent in Beijing, 19.83 of this year, and the number is consortiums with higher technol- percent in Tianjin, 17.84 percent expected to reach 150 by the end ogy levels and more capital. In- in Liaoning, and 13.03 percent in of the year. complete statistics show that Shandong, figures much higher In October 1993, the Daewoo over the past two years alone the than in other parts of the coun- Group of the ROK decided to ROK has established about 1,000 try. invest US$300 million to build joint ventures in the Bohai Rim, The ROK has ambitious plans a 2.4 million-ton high-grade ce- or 70 percent of its total invest- to initially edge into the Bohai ment plant in Sishui, and Ri- ment in China. Rim market and then the entire zhao Port in Shandong, the lat- In addition, numerous other Chinese market, the strategic ter being the largest exclusively countries and regions have ex- goal of its US$30 billion pro- foreign-funded project in China. pressed great interest in the re- gram for development in coastal The ROK is also launching its gion. For example, Saudi Arabia,

1~2, BEIJING REyIEW, DECEMBER 13-19, 1993 CHINA the ROK and China are joint- another major center of foreign joint development and coopera- ly developing a. "petrochemical investment. tion ifi Beijing, Hawaii and town" in Qingdao at a cost of Increasingly, greater numbers Seoul. US$2.5 billion. Siemens of Ger- of people are gaining an under- many has joined with Chinese standing of the importance of Enhancing Development companies to build a hi-tech elec- the Bohai Rim in Northeast Asia tronics town costing US$180 mil- and the Pacific Rim. Between The Bohai Rim has accelerat- lion. The Singapore industrial 1989 and 1991, scholars and spe- ed the construction of infrastruc- zone will cover 10 square km. cialists from China, Japan, the ture to prepare itself for the de- The United States has long United States, the ROK and mands of rapid development. been one of China's major inves- Australia attended four sympos- Local port construction has tors. The Motorola project in iums to discuss the prospects for continued without interruption Tianjin is considered a model for ROK customers purchase drawnwork in Yantai. 5HI PANQI successful corporation. At pre- sent, American consortiums and representatives of cooperations are scurrying to Shenyang, Tian- jin and Dalian seeking further cooperation. Some economists believe the influx of foreign investors will enhance the region's efforts to at,tract ever more foreign capi- tal. At present, foreign invest- ment not only involves indivi- dual projects, but massive land development projects as well. More importantly, China's state- run large and medium-sized .en- terprises are now cooperating with foreign investors in an ef- fort to upgrade facilities. The Bo- hai Rim is rapidly evolving into Dalian Port has established trade relations with more than 150 countries and regions. since the mid-1980s, des- MIAO MINE pite China's economic aus- terity policies. During the Seventh Five-Year Plan period (1986-90), the cen- tral government and local authorities jointly allocated some 4 billion yuan to up- grade six ports located in , Dalian, Qin- huangdao, Tianjin, Yantai and Qingdao. Some one- third of the 200 berths China built during the per- iod are located in the Bohai Rim. The work has continued at a brisk rate during the Eighth Five-Year Plan per- iod (1991-95). The first- phase construction of the Qianwan Port in Qingdao, completed this year, boasts

BEIJING REVIEW, DECEMBER 13-19, 1993 13 CHINA the same handling capacity as China's long coastline. Rim, China plans to undertake the 102-year-old Qingdao Port. The eastern terminal of Chi- four massive projects which will By the end of the century, the na's second east-west trunk rail- span the coming century, includ- port will become a comprehen- way, built to facilitate the coun- ing a water-diversion project sive port with a 14 km deepwater try's strategic shift of its energy from south to north, a railway coastline and an annual handling center to the west, is located in system transporting coal from capacity in excess of 100 million Huanghua in the Bohai Rim. the west to the east, and a tons. The auxiliary Huanghua Port is 10-million-ton iron and steel Dalian is planning to build currently in the planning stage. production base. China is also the deepwater Dayaowan Port, a In addition, cities in the Bohai planning to open additional sea huge port with an annual han- Rim have worked hard to build routes from Yantai to Dalian. dling capacity of 100 million more airports and establish ad- The 89-nautical-mile route, tons. By the end of the century, ditional international air links. along with a submarine tunnel, the port will serve as an interna- They have also constructed ex- will link the region more closely, tional transfer port, a container pressways, installed computer- and will lay the foundation for center for north China and a controlled telephone systems and booming development during the grain distribution base for the ocean cable. In September 1990, next century. Far East. Weihai opened direct ocean- The Bohai Rim tops the coun- A three-stage expansion pro- going passenger routes to Inchon try in terms of investment densi- ject transformed Qinhuangdao in the ROK. Construction of the ty. Zeng Chongming, director of Port into China's largest energy Beijing-Tianjin-Tanggu Express- Qingdao Economic and Technol- related port. Nonetheless, the way, funded by the World Bank, ogical Development Zone Ad- port still fell short of meeting was completed this year. Furth- ministration, said, "Here, the the needs of economic growth, ermore, Tianjin is allocating 2.4 area of each footstep has already and the fourth-stage expansion billion yuan to build a financial, cost 3,700 yuan." This way of project is currently under way. trade, recreational and Olympic investment is common m the Bo- Likewise, Tangshan, which center to promote coastal devel- hai Rim. Sun Yat-sen envisioned as an opment. The feasibility study for Supported by ports, coastal ci- ideal place for a large port, is the Tianjin-Tanggu high-speed ties have mapped out their blue- considering building the Wang- track communications has been prints for development. In June tan Port. Dandong will construct approved, and construction of 1993, Tianjin decided to trans- the Dadong Port which will have the project is expected to begin form itself into a world-class free a 200-meter-long docking area next year. trade port and international me- protruding into the As part of the effort to prom- tropolis by enhancing devel- from the northernmost point of ote development in the Bohai opment of the eastern area. Hebei Province has singled A view of the Weihai Carpet Plant, which earns substantial foreign exchange from out Qinhuangdao, Tangshan and exports. XU XIANGJUN Cangzhou as open areas. Dalian has advanced the concept of esta- blishing a "second Hong Kong" in north China. Yingkou, in the central part of the Liaodong Pen- insula and on the east coast of the Bohai Bay, claims to have revived its status as an "ideal Or- iental trading port." The above-mentioned plans and schedules will help promote economic development in north China. It is all but a foregone conclusion that the Bohai Rim, together with the and the Yangtze River Delta, will serve as the "driv- ing force" leading China's over- all economy by the end of the nmlmllim,:, century or early next century. •

14 BEIJING REVIEW:, DECEMBER 13-19, 1993 CHINA

ZHENJIANG SPECIAL (I) A City Full of Investment Opportunities by Our Staff Reporter Dai Yannian Zhenjiang City, a late bloomer in economic development located in the Yangtze River Delta, has attracted an ever-greater number of foreign business people.

henjiang, an open city in capital of US$54.66 million. Jiangsu Province, was the --Many agreements were for z ancient capital of the State exclusively foreign-owned enter- of Wu during the Three King- prises and projects in which for- doms (220-280). The five-day eigners provided the lion's share Three Kingdoms Famous City of the investment, while the Tourism and Sightseeing Festival Chinese partners provided non- held here in last October attract- fiscal assets. Some 22 of the nego- ed 8,000 Chinese and 742 foreign tiated projects involved exclusive- tourists. Taking this opportunity, ly foreign-owned enterprises, with they visited scenic and historical total investments standing at sites and enjoyed theatrical per- US$65.2 million and negotiated formances. Visiting business peo- foreign capital at US$60.69 mil- ple carried out fruitful invest- lion. Foreign investment account- ment negotiations. ed for over 50 percent of the total According to Yu Yaozhong, de- investments in 179 projects, ac- Mayor Fang Zhizhuo. puty director of the festival's Or- counting for 50.1 percent of the ganizing Committee, Zhenjiang total number of negotiated pro- signed 357 contracts and letters of jects. intent with foreign business peo- --Contracts for 12 agricultural ple. Negotiations involved invest- projects were signed for intensive ments of over US$1.18 billion, processing related to aquaculture, with the negotiated value of for- agriculture, forestry, animal hus- eign capital reaching US$416.88 bandry, sideline occupations and million. fisheries. Projects involved in the wide- --Seven land-lease contracts N .._ Znenjlartg were signed for the construction anjtnu~ ranging negotiations have the fol- ,,Suzhoutl_.l~ lowing features: of commercial, office and re- 1 1~.Shanghai --Investments involving for- sidential buildings. .~/'-"~"~~ ~ eign capital increased, with 32 --A number of projects involv- Yantze Pa'ver projects entailing investments of ing high and new technological between US$4-10 million each, products were also signed, includ- and 16 projects exceeding US$10 ing an automobile remote-control million each. An agreement safety system which was conclud- signed between Zhenjiang's ed between Zhenjiang's Danyang Chuanshan Limestone Mine and County and foreign business re- foreign business representatives presentatives. involved foreign investments to- --Tertiary industry projects ac- tailing US$205 million, including counted for 13.7 percent of the registered capital of US$68.33 total. While attracting foreign million and negotiated foreign capital and technology, Zhen-

BEIJING REVIEW, DECEMBER 13-19, 1993 15 CHINA jiang City also established enter- foreign businessmen from 29 gions, including the United prises abroad. Seven contracts for countries and regions. The States, Britain, France and Aus- overseas enterprises and five con- 300-odd operational enterprises tralia. Although the plant is com- tracts for labor services abroad report satisfactory production paratively small for a Sino- were signed. and operations, and a number foreign joint venture, its plastic At present, Zhenjiang City has have recorded good economic re- floor tile sector leads the country more than 400 enterprises man- turns. In 1992, for example, 14 in output, sales volume, quality ufacturing nearly 1,000 export foreign-funded enterprises, in- and foreign exchange earnings. products. The products were cluding the Sino-Japanese Zhen- The Sino-Thai Zhenjiang shown during the much heralded jiang Changjiang Fodder Co., Jiangkui Electronics Industrial '93 Export Commodities Exhibi- earned over US$1 million in for- Co. Ltd., founded in 1985, manu- tion, which recorded a high tran- eign exchange each. factures stereo disc players. Its saction volume of commodities. The Jiangsu Marvisde Plastics annual output reaches 200,000 The influx of foreign business Co. Ltd., a joint venture funded sets, a major portion of which go people to Zhenjiang is not fortui- by China, the United States and to Germany. As a result of good tous. Hong Kong, which produces plas- economic returns, the partners Zhenjiang City approvhd its tic floor tiles went into operation have established three satellite first foreign-funded enterprise in in March 1987. The following enterprises producing laser stereo 1984, and was designated as an year the company produced 940,- systems, electronic rectifiers and open coastal economic area by the 000 square meters of plastic tiles other electronic components. State Council in 1988. Develop- and recorded an output value of Zhenjiang, which is located at ment accelerated after 1992 with over 8.45 million yuan, earning the juncture of the Yangtze River the approval of 362 foreign- US$780,000 in foreign exchange. and the Beijing-Hangzhou Grand funded enterprises, a 3.8-fold in- In 1992, its output stood at 4.97 Canal, has jurisdiction over a crease over the total of the pre- million square meters with a to- large urban district and three vious eight-year period. Some 405 tal output value of 50.32 million counties. The city covers 3,843 foreign-funded enterprises were yuan and foreign exchange earn- square km and has a population approved in the first nine months ings of US$2.34 million. Over 40 of 2.6 million. Zhenjiang Port, of this year, raising the total to percent of its products are sold to which ranks third amongst har- over 900 enterprises involving more than 10 countries and re- bors along the Yangtze River in Crowds gather outside trade fair.

16 BEIJING REVIEW, DECEMBER 13-19, 1993 CHINA

US clients choose products. PhoIo~ b~ DAI YANNIAN terms of capacity, has 11 noted that less developed areas bridge spanning the Yangtze Riv- 25,000-ton berths, and dispatches surrounded by developed areas er, which will link Zhenjiang and ships to more than 40 coun- have the greatest potential for de- Yangzhou, is scheduled for com- tries and regions. The Beijing- velopment and are perhaps the pletion in or about the year 2000. Shanghai Railway runs through best bet for investors. The new bridge will provide the the city. Although the city cur-' Zhenjiang City has relatively city with a convenient north- rently lacks an airport, it is only abundant mineral deposits await- south transportation system. 40 km from Changzhou Airport ing development. Its high-quality Summarizing the city's econo- to the east, and 60 km from Nanj- limestone reserves stand at over 3 mic situatign, the Zhenjiang de- puty mayor noted that the ing Airport to the west. Zhenjiang billion tons, all of which are suit- Yangtze River Economic Belt is has a comparatively comprehen- able for open-cut mining. The one of China's key areas for open- city also has abundant reserves of sive industrial complex, and is ing during the 1990s. Large-scale home to the country's largest iron, copper, molybdenum, mar- development has already taken thermal power plant. Its anchor ble, dolomite, coal, phosphorus, place in the belt which centers on chain production sector is well refractory clay, gypsum, graphite the Pudong New Area in Shang- known, and its pulp production, and bentonite. hai, and macro-control measures tin and aluminum processing en- The investment environment in for economic areas have generat- terprises are the largest in east Zhenjiang City continues to im- ed fruitful results. He said that China. prove at a rapid rate. The now is the prime period for a new At present Zhenjiang lags be- Shanghai-Nanjing Expressway round of investment in China. hind economically developed which runs through Zhenjiang is The deputy mayor warmly wel- ar.eas such as Suzhou, Wuxi and scheduled for completion in 1996. comed foreign investment in Changzhou to the east. Zhenjiang With the new expressway, the Zhenjiang, and expressed the Mayor Fang Zhizhuo said that travel time between Zhenjiang firm belief that success can most following a recent fact-finding and Shanghai will take only ar- definitely be achieved through tour of Zhenjiang, economists ound two hours. The highway the joint efforts of all. •

BEIJING REVIEW, DECEMBER 13-19, 1993 17 CHINA

Zhenjiang Economic and Technological Development Zone

A group of new buildings, including stan- such as land levelling, roads, power, water steam dard workshops, residential blocks, com- and gas supply, sewage works, and postal and mercial establishments and restaurants, telecommunications services on a 5.73-gquare- have arisen on the southeastern outskirts of km area. To date, such facilities have basically Zhenjiang City, Jiangsu Province. The site is the gone into place for a 3.33-square-km area and a location of the Zhenjiang Economic and Tech- 2-square-km area has been leased to business nological Development Zone which is still under interests from the United States, Japan, Thai- construction. land, Taiwan, Hong Kong and Macao for facto- The zone, 6 km from the city proper, covers a ry building. Two standard factory buildings cov- total planning area of 20 square km and includes ering 36,000 square meters are ready for lease or an industrial district, living quarters and a high- sale. Some 27 foreign-funded enterprises entail- tech industrial park. Ground was broken on ing total investment of US$104 million have August 1991 to begin initial infrastructure work been registered in the zone. Among them, 17 have started construction, trial production or formally gone into operation. Jia Bingkun, director of the development zone administrative committee, said the committee has authority to approve projects injecting less than US$30 million of foreign capital. The zone offers first-rate, speedy and highly efficient streamlined services for investors in line with international practices. It provides preferential policies for income taxes, land transfer fees and land use charges. Overseas investors enjoy sole decision-making rights to select projects and fac- tory sites, plan schedules, hire employees and The Zhenjiang Economic and Technological Development decide investment form, plus management au- Zone. tonomy. •

ZHENJIANG SPECIAL (11) A Renowned Three Kingdom City by Our Staff Reporter Dai Yannian

n the third century, the Han dividual gain. The three em- A time-honored, cultural Dynasty fell apart into three ployed different stratagems and key tourist city, I kingdoms: Wei in the north, against each other. The Romance Shu in the west and Wu in the of the Three Kingdoms, a famous Zhenjiang holds man), east. All three states contended Chinese classic known to every places of historical interest for hegemony and aspired to at- Chinese household, portrays ev- and scenic beaut), that have tain unification. Wei was the ents of the period. lured ancient and modern most powerful among the three. Beigushan Hill, rising beside Zhuge Liang, a strategist of the the Yangtze River in northeast Chinese and foreign Shu State, plotted to form an al- Zhenjiang City, earned its name visitors. The Beigushan Hill liance with Wu to resist Wei, and thanks to its steepness and solid- and Ganlu Temple are the two won many battles against ity. At the slope entrance, armor- famous attractions dating Wei. However Shu and Wu both clad soldiers with spears in hand used Wei as a cat's paw to weak- line the road, and flags embla- from the ancient Wu State en each other and expand their zoned with the character for (222-280). own strength for the sake of in- Sun, standing for the Wu king

18 BEIJING REVIEW, DECEMBER 13-19, 1993 CHINA

Sun Quan, flutter high in the providing different beautiful vis- current toward the burial place sky. The vision plunges travellers tas. On the wall inside the build- of her husband. back into ancient times. ing hangs a painting of Sun Shu and Wu were weakened The city wall meanders along Quan's mother greeting Liu Bei. by their internecine conflicts and the front ridges of the hill. The While Sun's mother was inspect- were finally annexed by Wei. guide said Sun Quan at one stage ing her future son-in-law, Sun History opened a new page. made the site his capital thus himself set up 300 killers outside, • Visitors to Beigushan Hill who turning it into the earliest city in waiting to murder Liu at the pro- recall or learn about the Three Zhenjiang. However the old city per time. Sun's mother discov- Kingdom stories cannot help but wall was destroyed long ago and ered the trick and castigated linger and reflect on these wise the present one is a reconstruc- them, forcing the would-be assas- tales. tion. sins to withdraw. The )laces described form Halfway up the hill, along the Inside the hall of the Ganlu quiet old stone stairs With tower- Temple, a tableau of wax figures ing trees on both sides, several vividly portrays the wedding cer- mountain top temple buildings emony of Liu and Sun Quan's are visible through tree crevices. sister. They form the Ganlu Temple On another cliff of the Bei- where Liu Bei, king of Shu, wed gushan Hill, stands a pavilion Sun Shangqing, Sun Quan's sis- called Jijiangting (offering sac- ter. rifices to the river). After Sun The marriage was actually a Quan's sister went to Shu with i~i ; 'J plot by Sun Quan, who schemed Liu, Sun Quan lied to his sister to kidnap Liu Bei by inviting that theirmother was near death ] :!iiiil Wax Figures of Liu Bei and ;un - Shangqing. only a small part of the scenic sites of the Three Kingdoms. Now a Three Kingdom Tourist Zone, 9 km from the city proper in a scenic mountainous area in the western suburbs, is being built. It includes a complex of buildings that recreate Han Dy- Ganlu Temple. Plwtos b~/ DAI YANNIAN nasty structures based on the his- torical novel. The entire project, him to Wu for the ceremony in to lure her home. She missed Liu requiring a total investment of order to obtain an upper hand very much while she was in Wu. 200 million yuan, will cover 40 over Shu. But Sun Quan's moth- On learning of Liu's demise fol- hectares. Inside a recreated an- er did not know it was a ruse. lowing defeat by her native state, cient city wall, there will be a When she met Liu she liked him her grief led her to the pavilion Wu city, a Wu imperial palace immediately and the sham mar- to make religious offering for and garden, a Shu city, a Wei riage became a true one. the soul of her spouse. Then she city and faithfully reconstructed Duojinglou is the place where jumped into the river. Legend ancient battlefields. Some of the Sun Quan's mother became ac- has it that afterward her body Structures have been completed quainted with Liu Bei. The floated on the water. A flock of and used as outside sets for building, perched on a precipice birds carried down fresh flowers CCTV's major TV serial The facingthe river, has winding cor- to cover her form and accompan- Romance of the Three Kingdoms. ridors in four directions, each ied her as she swept down the

BEIJING RI~VIEW, DECEMBER 13-19, 1993 =19 CHINA

National Committee of the Chinese People's Political Consultative Conference. At present she is busy, Mao's Family Members together with her husband, editing a series of books about Mao Ze- Brought Out of the Shadow dong. The series, titled "China Brought Forth a Mao Zedong," by LiYanchun marks the 100th anniversary of Mao Zedong's birth. Shao often acts as spokeswoman and represen- They used to be quiet, overshadowed and kept in tative of the Mao family at various low profile as compared with other first family events concerning the late great leader. members throughout Chinese history. Today, 77 The 22-year-old Mao Xinyu is years after Mao Zedong passed away, they are still perhaps now the most conspicuous member of the Mao family. Resem- little known. What happens in his family, and bling his grandfather, he is tall and especially how his descendants fare, remains a well-built, weighing over 100 kg. Many people, including those who question in most Chinese minds. Recently, at the know him only by sight, consider approach of Mao's 700th birthday anniversary this Mao Xinyu to be a copy of his grandfather in appearance, reson- December 26, some brief reports about his family ant voice and gait. have appeared in the Chinese media. The following Graduated from the history de- partment of the Chinese People's are excerpts from a story in the popular tabloid University this summer, he has be- gun post-graduate studies at the "Beijing Youth Weekend". same university, majoring in Mao Zedong Thought. Choosing this major was the decision of himself t the foot of the secluded Moscow, Russian is like his mother and family members. Western Hills in Beijing live tongue. Conversations between him Mao Zedong was a historian, A Mao Anqing, the youngest and his wife are usually in Russian. well-known for his good use of his- son of Mao Zedong and his first The Mao family is famous not torical knowledge in strategy and wife Yang Kaihui, Mao Anqing's only for the great leader but also tactics. Mao Xinyu, following his wife Shao Hua and their only son for a number of revolutionary mar- grandfather's interest, researches in Mao Xinyu. tyrs including Mao Anqing's moth- the history of the Ming and Qing Mao Anqing is 69 years old. Af- er, his elder brother who died in dynasties. He is so keen on history ter undergoing intense sufferings, Korea during the Korean War, and books that his mother sometimes both physical and mental, for de- some of his uncles. In 1990, when needs to procure other books for cades, he is now fairly well. In his he returned to Bancang in Hunan him to widen his interest. childhood, Mao Anqing was separ- Province to attend the 60th anniv- He can relate in detail stories of ated from his father for some years ersary of his mother's death, he was many great and dramatic figures in after his mother was killed by warmly welcomed by the local peo- Chinese history. When asked who Kuomintang agents. During that ple who gathered around him ask- he believes is the greatest in mod- period, when he lived as a waif, ing for his signature. ern China, he says without hesita- he suffered from cold, hunger and Shao Hua, Mao Anqing's wife, is tion, "Mao Zedong, of course." He various sicknesses. Finally he was an active figure in theMao family. reads intently everything about found by the Communist Party and During the past 30 years of mar- Mao Zedong and has collected nu- sent for recovery to Moscow, where riage she has been devoted to her merous books, articles and clip- he met his future wife. work and taking care of her hus- pings about his grandfather. Now living a serene and com- band and other members of the The most splendid heritage Mao fortable life, Mao Anqing spends family. After graduating from the left in his study in Zhongnanhai, most of his time reading and play- Beijing University's Department of the working-and lodging place of ing chess and billiards at home. He Chinese in 1966, Shao joined the Chinese leaders, is his great collec- sometimes sings, and most of his army. She is now still in uniform, tion of books, most of which are favorite songs are those popular in with high rank. valuable history books. Since the the former Soviet Union. He sings Apart from her military duties, study now is a public belonging them, of course, in Russian. Since Shao is occupied with social activi- and managed by the government, he was educated from childhood in ties. She serves as a member of the Mao Xinyu asked for and got a

20 BEIJING REVIEW, DECEMBER 13-19, 1993 CHINA i':~ 7 ~ ,'~ ,~

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Mao Zedong in Beijing (1949) with his eldest son Mao Anqing and daughter-in-law Liu Songlin and daughter Li Na. special permission to use some of course he would write a book on his ceived by local people, who hold the collection. After much work in grandfather. Mao Zedong in great respect. the study, Xinyu finished his BA Mab Xinyu has visited Shaoshan In November 1991, he paid his dissertation entitled "On Setting in Hunan Province, Mao's birth- first visit to Yanan where his moth- Up Separatist Regimes by Lords in place, several times together with er was born and his grandfather the Tang Dynasty." He said that other family members. Each time spent 13 years leading Chinese after finishing his post-graduate he was warmly welcomed and re- Communists to build their first so- lid base in China. Xinyu visited the Mao Zedong and Li Na in Beidaihe, a summer resort, in 1960. field on a hill where his grandfath- er planted hot peppers during the hard years nearly a half century before, and found the land lying waste. He borrowed a hoe and be- gan weeding. Before long local peo- ple gathered, adults and children, gazing at Mao Xinyu, then they joined him in hoeing, shedding tears and quietly sharing reminisc- ences. Li Na, the only daughter of Mao Zedong and Jiang Qing, and her husband have retired. They live simply and have always evaded the press. Their only public activities are donating money for people suf- fering from natural disasters and for the Hope Project which helps drop-outs return to school. They may be seen standing in line to buy vegetables and other daily necessi-

BEIJING REVIEW, DECEMBER 13-19, 1993 21 CHINA ties like hundreds of thousands of rupted during work by foreign and downs in prestige. He buys ev- ordinary Beijing residents. guests who are interested in his ery book about Mao Zedong prov- Wang Xiaozhi, ki Na's only son, family background. They ask him ided it is serious and of good qual- is 20 years old. Slim, handsome and if he thinks it fitting for a grandson ity. In middle school, geometry and 1.80 meters tall, he is said by many of Mao Zedong to work as a ho- history were his fortes, which later people to look like the young Mao tel clerk. Xiaozhi's reply is, "My helped him develop his interest in Zedong wearing Edgar Snow's grandpa said, 'serve the people.' eight-angle Red Army cap while military history and strategy. He This is how I do it." read widely and researched in de- leading an uprising in the Jinggang Like the other grandchildren of tail the strategy, tactics and wea- Mountains. Since he had a hard the Mao family, Wang Xiaozhi is ponry during the Gulf War in 1991 time in his adolescence, Xiaozhi is extremely devoted to his grand- and was regarded by his associates a precocious young man. father despite the great leader's ups as an expert on this war. Another After graduating from junior hobby of his is collecting informa- middle school, he continued his ed- tion about various types of car ucation in a vocational school of from all over the world, and he foreign affairs. Three years later he admits the possibility that he may found a job in a hotel run jointly one day go into the car industry by Chinese and foreign owners. and business. The reason why he strikes out for Li Min is another daughter of himself early rather than going to Mao Zedong by his second wife, He university is based on a family Zizhen. Li Min has lived alone in tradition that young men should Beijing in recent years; her hus- learn from society through prac- band, Kong Linghua, works in the tice, according to his mother. technical field and is now in Shen- While working for a year at the zhen, Guangdong Province. They hotel, Wang Xiaozhi has always have a son and a daughter. The son done well whether in service or is a military attache in a Chinese technical work, according to the embassy abroad and the daughter, hotel staff. He is learning business a university student, lives on cam- management on his own. "The pre- pus while at school. sent goal for me is to enter the According to Wang Xiaozhi, Li business world from the bottom, Min has even less social life than from the very beginning," he says. Li Min (left) and Li Na commemorating his mother. She rarely leaves the It often happens that he is inter- their father's birthday. house and spends most of her time reading and caring for her two Per- Mao Anqing (left), Mao's youngest son, his wife Shao Hun and their son Mao Xinyu setting a flower basket in Mao's Memorial Hall. Ph,,t0sb,, WANG CH~NGXUAN sian cats. Li Min invites friends to her home twice a year, one on Decem- ber 26, her father's birthday, and again on September 9, the date of her father's death. The guests in- clude all the staff working for Mao Zedong and friends with whom Li Min spent her school days in Mos- cow. The conversations between Li Min and her friends are mainly in Russian. Li Min's daughter, who refused to give her name, lived with her grandmother for some years in Shanghai before returning to Bei- jing to join her parents. The grand- mother, He Zizhen, a revolution- ary heroine, nurtured an indepen- dent and strong character in the girl. She says that she does not want to live in the shadow of her great forebear. "I should be myself. That is all," she says confidently. •

22 BEIJING REVIEW, DECEMBER 13-19, 1993 SOCIETY / PEOPLE

right now, I may loose the oppor- tunity forever." I knew what she meant. Most Chinese women get Young Woman Bicycles married and have babies in their mid-20s. Yan's is certainly not Across China Alone a program for a mother with a baby. The other motivation that by Our Staff Reporter Shang Rongguang urged Yan on her way were the changes taking place in the coun- hen I met her in a hotel of the 57-kg weight class in try. "The 1990s will be the de- room in Taiyuan, capital Yuannan's body-building tour- cade of the greatest change in w of Shanxi Province, she nament; again she won a gold this century, and I'll go and see was on the telephone. "I'm in medal at the province's first bil- it with my own eyes," Yan said. Taiyuan now....I miss you, I miss liard competition. She believes that while the na- all of you," she was saying, her Yan was working at the Activ- tion's economy is developing rap- voice was choked and her eyes ity Center for Senior Officials idly, its culture is also experienc- watery. Thinking she might need affiliated with the provincial ing a dramatic transfiguration. some privacy, I made to leave, Party committee. Her responsi- Yan said that when she heard but she waved me to sit down bilities included arranging sports primary school students sing and handed me her card which and entertainment activities for Hong Kong and Taiwan popular introduced the girl and her mis- the elderly, and teaching disco songs instead of children's songs, sion: "Yan Xia, 22, is bicycling and fitness exercises. It seemed when she saw her painter friends towards the sun. I left Kunming, to be the right place for Yan to drop prolonged and creative Yunnan Province on May 10, display her energy. But three work and turn to commercial 1993 and will tour all the 23 years later, she quit the job. painting, she was very much provinces, five autonomous re- "It was a good job, and I loved worried. "China cannot be rich gions and three municipalities the old people and enjoyed sing- in economy and poor in culture. directly under the central gov- ing and dancing with them," she Art should not be forgotten and ernment on the mainland of said. "But the environment was the cultural traditions must be China...." too comfortable for someone my carried out," Yan said. She A pretty girl like her cycling age. I did not want to lock myself hoped that her cycling would call the vast wild land alone! My in carpeted rooms enjoying light the Chinese youths' attention to heart jumped. Looking closely, music for the rest of my life." culture and art. I noticed though the girl had a Yan then went to work for a strong build and tanned skin like real estate company as a public Enjoying Warm the horsewomen of the grass- relations person. However, after Hospitality lands, her face showed that spe- a very successful beginning of cial elegance found in southern three months, she decided to Yan has cycled through the women. And I also noticed that leave the high pay and her satis- western and northwestern half of she was speaking the southwest- factory boss behind for her dream China over the past five months, ern dialect. I could not wait to --to travel around the country including Sichuan, Gansu, Qing- hear her story. --alone, and by bicycle. hal, Xinjiang, Ningxia, Inner Yan told me she had left home Mongolia, Shaaxi and Shanxi. five months ago. She was a grad- An Urgency to Realize She told me that her experiences uate of a secondary vocational Her Dream were like a book she never had a school in Kunming where she chance to read in school. had been trained to be a book "i love art, sculpture in par- In Qinghai Province, she spent keeper. But the profession of ac- ticular. It has always been my a night with a Mongolian family counting obviously did not suit dream to see the plains, plateaus, in their yurt. The hostess began her, a born athlete who had al- mountains and seas of China to treat her with milk tea, butter ready won several prizes in prov- with my own eyes and to learn cake, and yogurt.., all the best incial competitions. At the age of our nation's cultural tradition of she had to offer before Yan 17, her bicycle team represent- different nationalities in differ- had even finished her self- ing the city of Kunming won ent places," said Yan. "When I introduction. Touched by this a bronze medal; the following turned 22, I suddenly felt an ur- simple and sincere warmth, Yan year, she won the championship gency to do it. If I don't do it felt at home and later joined the

BEIJING REVIEW, DECEMBER 13-19, 1993 23 SOCIETY I PEOPLE girls in milking the sheep. It was Once in a provincial capital she hardened her will, Mother Na- there that Yan was given her was warmly welcomed by an of- ture nurtured her body. She re- Mongolian name Aluona, which ficial guesthouse. They even let covered smoothly from a fever means pure and beautiful. her stay in the meeting room be- and stomach ache and gained When she was cycling along fore they could find her a room. weight. the Great Bend of the Yellow However, when she went to the Supportive Parents River in the Ningxia Autonom- cafeteria for the free meal she ous Region, she saw sunflowers had been offered, the waitress As the mother of two girls, I everywhere--more than she had was reluctant to serve her, and finally asked the question that ever seen all in her life. She was she had to ask twice for a simple had been on my mind through- so much attracted by their round supper. Some well-intentioned out the interview: "What did seed plates that she decided to people tried to convince her: your mother think of your carry one on her bicycle despite "You are not a beggar. Why do plan?" her stiff principle of adding no you put up with this, why not go "Oh, she cried and did not extra weight to her luggage. So, want to let me go," Yan an- home?" Yan was excited while when she passed a sunflower swered. "But when she realized cart, she asked the farmer to sell talking about this, and her an- there was no way to change my her one. "No, no. It's not for swer was absolute: "There were mind, she gave in. Before I left sale," the old man replied, and times that I felt sad and angry, home, I received a card from then said, "You take one if you Mom on which she wrote 'good like." Surprised by this generosi- sons and daughters travel the ty, Yan was grateful and embar- world to realize their goals.' " rassed. "It was the first time that Both Yan's parents are doctors I understood the concept of 'sim- who used to serve in the army. ple honesty' in Chinese literature While her mother kept express- when it refers to northern farm- ing her worries, her father, an ers, " the southern girl said. old soldier, discussed the details of her plan with her, making Greatest Difficulty: suggestions as to the best routes to choose. Lack of Understanding A trip like this is very expen- On her way, Yan braved de- sive for Yan and she had used serts and mountains, and the almost all her savings. Even harsh weather of northern worse, her mountain bike and ca- China. I could imagine the hard- mera were stolen on her way and ships she had been through. she had to buy new ones. But she When asked what was most diffi- refused to receive money from cult, Yan said she was not afraid her parents. "I have given them of any tangible hardships such as Yan Xia arrives in Turpan, Xinjiang. enough to worry about, I cannot sickness, fatigue, or even danger. increase their financial burden," she said. Yan said when she ar- The most difficult thing to deal rived in Beijing, she would find with was an but I never gave one thought to a temporary job and make some occasional lack of understanding turning back." money so that she could continue by people and their cold eyes To fulfill her goal of complet- her journey to the northeast. that went with it. ing the trip in 500 days, Yan cycled eight hours to travel "What are you going to do af- Yan set herself a budget of 10 ter you finish this trip?" I asked, yuan a day for both housing and 100-160 kilometers a day. In Xinjiang, where villages are bringing the interview to a close. food. She could only afford the "I'11 sum up my experiences and sparsely scattered, she would buy cheapest inns. Sometimes, she write a book," Yan answered two nang (Uygur-style cake) and found shelter in farmers" homes. without hesitation. "Then, I want In cities and tourism spots, she fill her water bottle before set- to cooperate with some cultural had to go from hotel to hotel to ting out in the morning. "It was organization to build a cultural bargain for a lower price. Some- nice to sit in the desert chewing town in Kunming where people times, she got free accommoda- the hang. The world was so im- can taste the Inner Mongolian tions from state institute-related mense and I was so small. I had meat and Xinjiang nang, and reception centers. But often, the never felt so close to nature," learn about the cultures of dif- good fortune would turn sour. Yan said. While the hardships ferent nationalities." •

24 BEIJING REVIEW, DECEMBER 13-19, 1993 TOURISM

berth rooms equipped with in- Pleasure-Cruise Business Talks dividual toilets and bathrooms. Passenger capacity is 289 per- sons. On board facilities include In mid-November, the Three erseas travel agents signed let- ters of intent or cooperative con- central air conditioning, a beau- Gorges International Pleasure- ty parlor, massage room, sauna tracts with the Cruises Center Cruise Business Talks was suc- bath, gym, laundry, gift and an- founded jointly by the Regal cessfully held aboard the Prin- tique shops, Karaoke dance hall, cess Jeannie, the first large luxu- China Cruises and the Jiangsu bar, and Chinese and Western- ry cruiser on the Yangtze River. Overseas Tourist Co. In conjunc- style dining rooms. A commer- Sponsored jointly by the Jiang- tion with the opening of the cial center also provides fax, su Overseas Tourist Co. and the Three Gorges scenic spot tourist cable, photo development, pho- Sino-US Regal China Cruises, route, the Hong Kong China In- tocopy and typing services. Per- the event was attended by about ternational Travel Service made formances of local operas, folk 100 travel agents from the contacts about opening tourist dances, qigong, martial arts, tai- United States, Japan, Australia, charter flights between Hong jiquan, acrobatics and calligra- Switzerland, Britain, Singapore, Kong and Shashi in Hubei. phy, as well as ethnic minority Hong Kong and Taiwan, in addi- Princess Jeannie, Princess costume shows take place aboard tion to over 120 managers from Elaine and Princess Sheena, de- the boats. Traditional Chinese China's mainland travel ser- signed and built by a~fI~amburg medical treatments, such as vices. shipyard in 1992, are all luxury acupuncture and moxibustion, Participants from Hong Kong, pleasure-boats up to internation- shiatsu, massage and qigong, are Australia and Switzerland indi- al standards. Measuring 129.15 also available for those suffering cated their willingness to meters in length and 16 meters from arthritis, hypertension, ar- sponsor international meetings in width, they each offer 10 teriosclerosis, vasculitis and oth- aboard pleasure-boats. Some ov- luxury cabins and 135 standard er diseases. To please the dif- ferent palates of travellers, Upper: Zhang Xu (center), chairman of the board of the Regal China Cruiser, Yangzhou, Shandong, Hubei, Si- introduces the Three Gorges scenic spots to travel agents. Lower: Pleasure-cruiser chuan, Anhui and Western dish- Princess Jeannie. P¢,,,to~ b u INLINAITAO es are concocted by famous chefs. All the guest rooms and catering services are provided by the Jinling International Hotel Management Co., the first of its kind in China. Abiding by the principles of "high efficiency, high quality, high reputation and first-class service," the China Jiangsu Ov- erseas Tourist Co. has advanced amidst sharp competition since it started overseas business in 1980. It has established branches or offices in California, Dues- seldorf, Tokyo and Hong Kong. The general manager of the com- pany recently said that utilizing chances for cooperation with the Regal China Cruises, his firm aspires to create a new image for Yangtze River tours with first- ...... class pleasure-boats, peak service "~IL~~~.] ~i~t ~" and quality. by Gu Yongliang

* The author is general manager of the China Jiangsu Overseas Tourist Co.

BEIJING REVIEW, DECEMBER 13-19, 1993 25 BUSINESS / TRADE

Fast-Growing Economic pressways in Hong Kong, a pow- 1992 exceeding that in coastal er station in Pakistan and the areas. Cooperation Macao International Airport. Fourthly, the scope of invest- These projects involved con- ment has extended to banking, China's contracted projects tracted investments of US$160 insurance and general merchan- and labor services abroad have million, US$560 million and dise retail sectors. expanded rapidly since the be- US$620 million respectively. And, finally, the forms of in- ginning of this year. By Septem- The China Harbor Construction vestment have become more div- ber, the number of Chinese Engineering Co., China Con- ersified, with the number of enterprises engaged in overseas struction Engineering Co., joint venture shareholding com- labor service, design or consult- China Highway and Bridge Con- panies increasing rapidly. By the ing contracts had topped 300, struction Co., China National end of 1992, more than 20 and a total of 8,531 labor service Metallurgical Products Co. and foreign-funded shareholding contracts had been concluded, China Water Conservancy and companies had been established, up 57.8 percent over last year's Electric Power Co. have been and 18 companies had listed same period. The total value of listed amongst the world's top B-shares in and contracts reached US$4.01 bil- 225 contractors. Shanghai securities exchanges. lion, and the turnover hit In 1994, China plans to furth- The more than 50,000 foreign- US$2.7 billion, an increase of 54 er expand its foreign contract- funded enterprises currently in percent over the previous year's ed engineering and labor service operation employ over 5 million same period. Some 164,000 cooperation, with considerable Chinese workers. Most of them workers and staff are working increase in the volume of new are operating smoothly, and abroad, up 52,000, and Chinese contracts and turnover and the their foreign exchange receipts enterprises are providing con- number of employees working and expenditures remain in bal- tracted services in 169 countries abroad. • ance, with a nmnber having re- and regions. corded surpluses. Over the past year, the Minis- New Trends in Use of In the first nine months of try of Foreign Trade and ,Econo- 1993, the Chinese government mic Cooperation has authorized Foreign Investment approved 62,789 foreign-funded another 70 first-class design and Recent statistics show five dis- projects, up 125 percent over the consulting enterprises to provide tinct characteristics in foreign same period of 1992. They in- design, and consulting, pros- investment in China. volved US$83.1 billion in con- pecting and supervisory services For example, the number of tracted foreign investment and abroad, predicting China's great large-scale high-tech projects actually used US$15 billion, in- potential in the international funded by transnational corpor- creases of 171 percent and 158 project contracting market. Mo- ations from Western countries percent respectively. • reover, many enterprises have has increased. Companies which endeavored to expand technolog- have announced medium-or Joint Development in ical and managerial labor ser- long-term investment plans in Mingshan County vices, improving the level of China include Motorola and labor cooperation significantly. IBM of the United States, Phi- A delegation headed by His- Since 1992, while striving to con- lips of the Netherlands, Citroen ada Shoichi, president of solidate its markets in Singa- of France, Volkswagen AG of the Shonan Co. affiliate of pore, Hong Kong, Macao, Ja- Germany, and TBZ of Italy. the Matsushita Co. of Japan, vis- pan and the Republic of Korea, Secondly, investments in ited Mingshan County, Sichuan China has opened new markets large-scale infrastructure pro- Province, in October and in- in more than a dozen other jects involving energy and the vestigated an edible thick countries, including Cambodia, construction of highways, rail- mushroom-production area. Israel, Albania and Ukraine. ways, bridges and harbors have Mingshan County, located on In recent years, Chinese con- increased. the southwestern border of the tractors' capacity of undertaking Thirdly, an increasing amount West Sichuan Plain, is blessed large-scale overseas projects has of capital has been pooled in with a favorable natural envi- increased dramatically. For ex- central west China with the ronment and undulating hills. A ample, the China Fujian Inter- further development along the warm climate allows the county national Co. and other firms Yangtze River and border and to produce a variety and large have contracted to construct ex- inland areas, and the growth for quantity of agricultural, sideline

26 BEIJING REVIEW, DECEMBER 13-19, 1993 BUSINESS/TRADE

cooperation in numerous other areas, including joint devel- opment of technology, facto- ries, engineering design, per- sonnel training, environmental protection and trade. In line with the agreement, Bayer's board of directors recently ap- proved the implementation of five cooperative projects valued at US$200 million. At a recent news conference attended by domestic and for- eign reporters, Dr Dieter Becher, a member of Bayer's board of directors, said the company's 1992 sales volume in China reached DM520 million. He M1NGSHAN pointed out that Bayer's desire County Party Secretary He Ping (third left) accompanies Hisada Shoichi to visit to grow in China would be hin- Mengshan Mountain. dered by simply relying on ex- porting products to the country. and specialty products, which signed a letter of intent to esta- Becher said: "Now is an oppor- enjoy a ready market. The coun- blish friendly relations between tune" time for Bayer to open ty's natural environment is ideal his company based in Moriguchi production facilities in China. for edible thick mushrooms City and Mingshan County. • We are certain that providing which have been exported to Ja- China with state-of-the-art tech- pan for the past 10-odd years. Bayer of Germany to nology will enable the country to Over the past four years, Invest in China establish a firm similar to Bayer. Mingshan has attempted to at- Such a firm will promote' an tract both international and In an effort to further streng- advanced chemical industry for domestic clients, and has placed then ties between chemical in- China, that will meet envi- emphasis on product quality, dustries of China and Germany, ronmental protection require- while strictly adhering to con- the Chinese Ministry of Chemi- ments." tracts and maintaining its good cal Industry and Bayer AG Co. by Wu Naitao reputation. The county's efforts of Germany signed a compre- have won high praise from Ja- hensive cooperation agreement China's First Fund in pan, and its products have sold in Beijing on November 27. Overseas Stock Market welt in Tokyo, Kobe and Osaka. Bayer, one of the world's larg- The two sides have forged a est producers of chemicals, has The C.H. China Investment profound friendship during their engaged in wide-ranging cooper- Ltd., a joint venture between CI- long-term economic and trade ative ventures with China in TIC (China International Trust activities. various fields, including organ; and Investment Corp.) Australia The president visited and in- ic and inorganic chemistry, Pty. Ltd. and the Hambros Co. vestigated export-oriented enter- fine chemicals, pesticides and of Australia, was recently ap- prises which have good econo- dyestuffs. According to the proved by the Australian Stock mic returns and strong technical agreement, the two sides will Management Commission, and forces. promote wide-ranging and ef- will become a member of the He participated in detailed ne- ficient cooperation, and jointly Australian Stock Exchange on gotiations with county govern- develop science, technology and December 21, 1993. ment officials concerning exist- trade. The agreement calls for The new company will be Chi- ing economic cooperation pro- technological exchanges, joint na's first investment fund in an jects. In addition, both sides ex- research, development and in- overseas market with a Chinese changed opinions and sugges- vestment, and cooperation in es- management base. The first in- tions regarding the expansion tablishment of markets. In ad- vestment issued will involve of cooperation. The president dition, the parties will expand $A35 million and will be in-

BEIJING REVIEW, DECEMBER 13-19, 1993 27 BUSINESS/TRADE creased to $A70 million after 18 various types of feed, and cages the strength and prestige of high- months. Money will be invested and accessories. The market also tech sectors of China's aviation in the following sectors: offers services such epidemic industry to raise funds abroad, --Listed shares of Chinese prevention and processing. in order to provide China's avia- firms in major Chinese and in- Pingyuan County is renowned tion manufacturing industry ternational stock exchanges; throughout China as the home with funds for civil products. --Non-listed companies in of pigeons. The Encheng Pigeon The aviation fund will attempt China's mainland; and Festival sponsored by the county to attract overseas idle funds to --Non-listed foreign firms dates back well over 100 years. establish Sino-foreign joint ven- which have a major portion of During Spring Festival each tures, a move which will help their property and business in year, pigeon enthusiasts from promote existing products, im- China. Beijing, Tianjin, Hebei, Henan prove quality, expand scale and CITIC Australia Pty. Ltd. is and Shandong journey to the increase returns. Funds will be an overseas subsidiary of CI- county to show and fly their invested in both coastal and in- TIC. An official from CITIC birds and participate in business terior areas. Joint ventures re- said that CITIC Australia Pty. negotiations. ceiving grants from the aviation Ltd. will become its branch in Farmers in the county are no fund will be allowed to im- the Asia-Pacific region. The first longer content with simply rais- port foreign funds from other public issue of funds will indi- ing pigeons for personal appre- sources, as well as technolo- cate that CITIC Australia Pty. ciation. As an important line of gy and management exper- Ltd. has taken a key step toward business, the county's pigeon in- tise. They will also be allowed developing financial undertak- dustry has developed at an un- to establish joint ventures and ings. It will encourage entry by precedented rate. The county cooperative enterprises with Australian funds to the growing now breeds 8 million pigeons, domestic businesses. The fund Chinese securities market and and sells pigeons and processed will be a valuable aid in Chi- provide Australian investors products to over a dozen prov- na's effort to promote socialized with a convenient entry channel. inces and municipalities in coordination. At the same time, The success of the listed funds China, as welt to a number it will promote the transforma- will have a profound influence of Southeast Asian countries. tion of operational mechanism on further exchanges and coop- Three of the county's 18 towns of enterprises in China's aviation eration between financial sectors now raise 200,000 birds each, industry, and will have a signifi- of China and Australia. while the capacity for four towns cant positive effect on deepening by Li Ning nears 300,000 birds. The coun- the reform of enterprises and ty's rapidly developing pigeon rapidly linking with the interna- industry now includes 20 pigeon tional market. Pingyuan Opens Implementation and use of markets. As part of an effort to the aviation fund will ease fund Pigeon Market further develop the pigeon in- shortages currently facing Chi- dustry, the county government Pingyuan County, Shandong na's aviation enterprises and in- has made October 25 the date for Province, opened China's largest stitutions. The new fund will its annual pigeon festival. • pigeon market in October of this promote the transformation of year. Since opening, thousands their operational mechanisms of domestic and foreign pigeon China Aviation and the upgrading of technolo- fanciers and businessmen have Funds Placed gy, thereby allowing them to sig- visited the market to negotiate nificantly increase economic re- business deals, or simply view Recently, US$96.6 million turns. and admire. raised abroad since November Relevant departments will The so-called pigeon city, a last year for the first aviation make efforts to continue con- garden-style market shadowed project was placed, and negoti- tacts with international banking by trees, covers 33,000 square able securities issued by the fund sectors and investors in order to meters. Its over 3,200 stalls are have been sold in Europe. attract more funds. The registra- divided into three sections con- The aviation fund, one of ne- tion application for the Avia- centrating on differing sales ac- gotiable securities in accordance tion Industry (China) Invest- tivities-carrier pigeons, unique with international practice, is an ment Co. Ltd., the consignment species and. meat. The market, international trust and invest- investment agency for China's which has a capacity of 100,000 ment fund within a specially de- aviation funds, was approved pigeons, offers breeding pigeons, signated business scope. It uses last May in Cook Islands. •

28 BEIJING REVIEW, DECEMBER 13-19, 1993 CULTURE / SCIENCE m

difficult in China's western Tak- knowledge connected with daily TV PopularizesScience limakan, Gurbantunggut and routine. ],engri deserts. However, scien- Starting from the example of A minor test of common tists who venture there never nylon, one of the century's most scientific knowledge that abandon their ideals of searching important scientific achieve- asked "does the earth re- ments, the 12-part series shows for scientific means to harness volve around the sun or the sun successful applications in the this barren land. Many spend de- around the earth" revealed 17 chemical, agrochemical, elec- cades and some have even devot- percent of respondents to be du- tronics, fiber, new materials and ed their working lives to this arid bious as to the correct answer. plastics industries, as well as en- vastness. Their fruitful efforts This incident prompted mem- vironmental protection. Watch- have won China a central place bers of the Chinese Academy of ers learn how they enjoy scientif- on the stage of world desert stu- Sciences (CAS) to seek to popu- ic achievements in daily life even larize science via TV. Thus were dies. though they may not be able to born the two TV series Echoes of Overfishing in the seas near understand them. The part entitled Great Inven- Nature and Science and Life. China's coastline has reduced tions familiarizes viewers with Echoes of Nature depicts the aquatic reserves. To cater to top inventions such as paper as age-old theme of the links be- huge demand for seafood, scien- tists have envisioned commercial well as small ones like the zip tween man and nature. The fastener. Charm of Fiber, introd- producer noted, "As the global farming in the ocean. Successful tests in north and uces the development of~ynthet- ecological environment worsens, ic fiber over the past 60 years the south have made there is an urgent need to edu- and some new inventions such as cate people to protect it." The this dream a reality. untearable paper, stirling plastic, 10-part TV series introduces Echoes of Nature, released in new magnetic materials and CFC over 100 natural observatories Chinese and English by the pub- substitutes. established by CAS nationwide. lishing house of CAS, features The terse and forceful series, Scientists undertake varied re- colorful natural sights and les- split into 12 five-minute parts, search work there, such as moni- sons about protecting the envi- employs cartoons and trick shots toring formation of avalanches, ronment. which leave a deep impression landslides and hailclouds, and Science and Li[e, on the other behind. satellite observations. Survival is hand, d~isplays common science by Wei Liming

with the Chinese Academy of sionals. While there he has con- US Tobacco Expert Agricultural Sciences. ducted consulting services for Wins Chinese Award Since the 1970s, Dr ],so has agricultural and economic devel- devoted himself to the develop- opment, and local environmental ihe State Science and Tech- ment of agriculture and the to- protection. In recent years, Dr nology Commission of bacco industry in China. He has I-so together with American col- T China (SSTC) honored Dr made considerable contributions leagues initiated and founded Tien-chioh ],so, a US agro- to the dissemination of advanced IDEALS. The body has regis- tobacco expert with the China technology, training of qualified tered 324 foreigners who have International Science and Tech- personnel, donation of materials served China. Dr ],so has also nology Cooperation Award at a and promotion of scientific made outstanding contributions ceremony held in Beijing on Oc- and technological exchange and to the upgrading of domestic to- tober 30. cooperation between China and bacco quality. From 1985 on, in This prominent tobacco expert the world, as well as both sides of an effort to solve local produc- with a worldwide reputation pre- the . tion problems, he invited US to- sently serves as director of the Over the past decade or so, Dr bacco experts to devise experi- Institute of International Devel- Tso has invited US agriculturists mental plans with their opment and Education in Agri- to China on numerous occasions, Chinese counterparts. In Henan, culture and Life Science and visited many provinces and Guizhou and Hubei provinces, (IDEALS) in the United States, autonomous regions in China. they tried to find out optimum senior consultant to the China Most noteworthy is his total of technical solutions for planting, National Tobacco Corporation, six trips to Province with fertilizing, picking and drying, and honorary research fellow more than twenty foreign profes- which are crucial for improve-

BEIJING REVIEW, DECEMBER 13-19, 1993 29 CULTURE/SCIENCE ment in tobacco quality. The ex- China. Dr Tso himself has given materials on tobacco research cellent results obtained after more than 100 lectures in the collected over many years to three years of field experiments country. In !988, owing to his China. have been applied to tobacco cul- sponsorship and help, China suc- The China International tivation regions around the coun- cessfully hosted the Ninth Inter- Science and Technology Cooper- try. The achievement won the national Conference on Tobacco ation Award was established in National Science and Technolo- Science and Technology which June 1992 to honor foreign scien- gy Progress Award. attracted more than 400 experts tists, engineers and scientific and For many years, Dr Tso has from all parts of the world. technological management ex- helped many Chinese agricultur- Many young Chinese tobacco perts who have made outstand- ists to go abroad to receive pro- scientists have been granted ing contributions to promoting fessional training and conduct scholarships by the symposium. Sino-foreign scientific and tech- joint research. He has also nom- In order to promote the develop- nological exchange and coopera- inated 24 foreigners from 15 ment of Chinese scientific study tion. branches of learning to lecture in on tobacco, Dr Tso has donated by Wei Liming

in the navy. The hard and discip- brushes with modern writing Calligraphy Museum lined military life helped him to tools, the new school of so-called Fulfills a Dream cultivate a dogged and undaunt- hard calligraphy has emerged. ed character. While drawing on traditional n October 10, the When he retired from the features of Chinese calligraphic cornerstone-laying cere- armed forces, he became a cadre aesthetics, hard calligraphy has o mony for the China Mu- at the trade union of a local also sought for innovation and seum of Modern Pen Callig- state-owned enterprise. There he created its own unique features. raphy took place beside the became engrossed with hard pen He Wei, a passionate lover of the beautiful Nanpeng Lake in Bax- calligraphy. He began to study craft, said it represents an art for ian County, Chongqing City, in under established calligraphers millions of people and an impor- southwest China. and often practiced until mid- tant field for the promotion of He Wei, general director of the night at home. Finally he quit his Oriental culture. He Wei has de- Preparatory Committee for the then much envied job to devote termined to make himself not museum was overjoyed to see his heart and soul to his art. only a calligrapher but also a wish come true. Two years ago Hard calligraphy can be seen great contributor to artistic de- when He Wei announced he was as an old and a new art in China. velopment in China. Thus, he going to build the museum in his In the 16th century BC, the has devoted his entire energy hometown, all his friends looked forefathers of the Chinese race to the promotion and popular- askance at him as though he was began to carve inscriptions on ization of hard calligraphy. In mad. animal bones and turtle shells. 1988, he allocated funds and or- His vision, however, has be- As time went by, writing brush- ganized the Sanxi Cup and the come reality, following the pur- es made of various animal hairs Luhua Cup national calligraphic chase of 6.7 hectares of land and came into being. Various styles contests, attracting thousands of procurement of part of the con- of writing were formed that led entrants from all parts of the struction capital. Completion of to the diversified schools of country and starting a hard cal- the 33,000-square-meter com- Chinese calligraphy. Today, 80 ligraphy craze. plex, the first of its kind in to 90 percent of Chinese normal- Despite numerous difficulties, China, is expected to take anoth- ly write with fountain pens, ball- he has persevered. Now he is di- er two years. At the same time 36 point pens and pencils, which rector and executive editor-in- sub-branches nationwide will be fall into the category of hard chief of Hard Calligraphy Art finished. The work constitutes pens, in contrast with the tradi- News. He has compiled 26 books a milestone in the history of tional soft brush pens. Statistics on calligraphy and won much Chinese calligraphy. show that each year more than 3 acclaim for creative .calligraphy He Wei, now aged 44, was born billion hard pens are produced in and paintings. He has also bee,n in the mountain city of Chongq- China. invited to stand as an advisor or ing. In 1968, he became a diver With the replacement of honorary president of more than

30 BEIJING REVIEW, DECEMBER 13-19, 1993 CULTURE I SCIENCE

He Wei with General Li Qi (left) who created this calligraphy to honor the museum. WENJIAOZU

b

100 art societies and colleges and materials and publications were of the China Museum of Modern universities nationwide. Last scattered here and there. Bearing Pen Calligraphy was drawn up May he was elected vice- this in mind, He Wei determined and attracted popular support chairman of the newly founded to use his own efforts to con- and attention. Over the ensuing Chinese Association of Hard struct such a museum. He would several months, the preparatory Calligraphy. not ask for a penny from the committee received donations in In recent years, various hard government but seek donations the region of tens of thousands of yuan. In this way, with the care calligraphy organizations have from individuals both at home and support of all sectors of so- been founded to sponsor calligra- and abroad. When completed the ciety, a museum created by the museum would be turned over to phy contests, exhibitions, teach- people, of the people and for the ing courses and research. Nu- the state to benefit the people. people is to be erected. merous calligraphy copybooks, First he donated the rights for In his pursuit of public wel- teaching materials and publica- two pieces of his calligraphy and fare, He Wei has satisfaction in tions have seen publication. Nev- paintings to serve as the starting seeking his ideals and the realiza- ertheless, there has been no sin- fund. Subsequently he and his tion of his individual worth. He gle hard calligraphy gallery to friends have given lecture tours, said, "For someone like me, the serve as a resource center for compiled books, printed tem- greatest happiness lies in work- this globally influential art. Con- plates and conducted authorized ing and contributing to what he sequently many valuable cal- sales to collect needed capital. loves and cherishes." ligraphic masterpieces, models, In January 1992, the blueprint by Hong Lanxing

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