CHINAInsight Fostering Business and Cultural Harmony between China and the U.S. VOL. 7 NO. 9 www.chinainsight.info OCTOBER 2008 Chinese taikonaut greets nation, world in first spacewalk Solid lubricant is widely used in space- craft. The test sample carried by Shenzhou-7 Future of U.S.-China included 11 types of solid lubricants. Chi- nese scientists said they hoped to improve Relations Pages 3 & 4 the property and lifetime of the materials by studying the samples. “More Miraculous Than Science Fiction” After the handover of the test sample, Zhai, who dreamed of flying into space when he was a teenager, started the core part of the space adventure -- spacewalking about [213 miles] above the earth. The taikonaut, tethered to the spacecraft with two safety wires and a long electric cord providing oxygen and communica- tions, moved slowly along a set of handrails around the orbital module. Chinese taikonaut Zhai Zhigang slipped out of the orbital module of Shenzhou-7 Saturday Pearl Lam Bergad afternoon, starting China’s first spacewalk or extravehicular activity (EVA) in the outer Spacewalk continues on Page 4 Honored Page 7 space.

hinese Taikonaut Zhai Zhigang completed a spacewalk [in the afternoon on Sept. 27], marking Local Attorney to a historic breakthrough in the country’sC ambitious space program, which will eventually lead to the establishment of compete in a permanent space station. Donning a [US$4 million] homemade Feitian space suit, Zhai slipped out of the Ironman World orbital module of Shenzhou-7 in a head- out-first position at around 4:43 p.m. (0843 Great Wall Page 8 GMT). Championship He waved to the camera mounted on By Greg Hugh, Staff Writer the service module after pulling himself out of the capsule, video monitors at the that are held in many parts of the world. Beijing Aerospace Control Center (BACC) Participating in this year’s race is Amy showed. Xu, a partner with the law firm of Dorsey & “Shenzhou-7 is now outside the space- Whitney, LLP. She will compete in a race craft. I feel well. I am here greeting the that encompasses three endurance events: a Chinese people and people of the whole 2.4 mile ocean swim in Kailua-Kona Bay, a world,” the taikonaut reported to the ground 112-mile bike ride across the Hawaiian lava control in Beijing. dessert to Hawi and back, and a marathon Chinese leaders including President (26.2 miles) along the coast of the Big Island Hu Jintao watched live transmission of the (from Keauhou to Kahole Point to Kailua- spacewalk from the Beijing control center, Kona, finishing on Ali’i Drive). breaking into applause with the successful So why would a successful attorney compete in the WTC which is regarded as Sharon Leigh, Graphic Designer, [email protected] completion of each stage of the maneuver. Http://www.MySpace.com/CandelLife Zhai, who [will turn 42 this] month, was the most honored and prestigious triathlon an air force pilot before [being] enrolled in event worldwide? ALSO IN THIS ISSUE the manned space program. He grew up in To understand the motivation, one might Announcements / 2 dirt-poor hardship with five siblings in the just speculate that it could just simply be her country’s far northeast. destiny. Xu is a native of Shanghai, China, Commentary / 3 & 4 Minutes after Zhai was outside the cap- and received her B.S. in electrical engi- Events / 5 neering from the University of Minnesota sule, teammate Liu Bomingalso emerged Amy Xu Health / 6 briefly and handed Zhai a Chinese national (1991) and she received a scholarship from he Ironman World Triathlon 3M. She then joined Merchant & Gould as Community / flag that Zhai waved [in] outer space against Championship (WTC) or Ironman 7 & 9 the backdrop of the blue planet Earth. The a staff engineer and patent agent. Observing Triathlon is an annual triathlon that there was a need for patent attorneys, Culture / 8 third crew member, Jing Haipeng, monitored race made famous by its grueling the ship from inside the re-entry module. she went to law school at night and earned Government / 10 Tlength, race conditions and sports television her J.D. from William Mitchell College of Video monitors at the ground control coverage. It is held every fall in the city of Business / 11 showed Zhai then slowly leaned towards a Law (1997) and her M.S. in electrical engi- Kailua-Kona, Hawaii, and this year it will neering from the University of Minnesota Economy / 12 & 13 test sample of solid lubricant placed outside take place on Oct. 11, 2008. To earn a spot the orbital module. He took the sample and the same year. Education / 14 - 16 in this race, one must qualify at one of the As a result of a grueling education handed it over to Liu. 22 qualifying races held throughout the year Ironman continues on Page 9 PAGE 2 > OCTOBER 2008 announcements www.chinainsight.info

Publisher’s Pronouncements CHINAINSIGHT As you read this issue of Ch i n a Insight, we will all, no doubt, be preparing for the transition from sum- Publisher: mer to autumn and enjoying the spectacular fall colors. In addition to whatever your fall routine may Gregory J. Hugh consist of, you will also be focusing on the fact that this is a presidential election year which will be an [email protected] historic election with the first black presidential candidate or first female vice-presidential candidate to be elected in the history of the United States. Editor: Jennifer Nordin While it is the policy of Ch i n a Insight not to take any political positions, we thought it appropriate to [email protected] inform you of each candidate’s position regarding China policy under their respective administrations and the future relationship between the United States and China if they are elected President of the Manager of Operations/ United States. Written in their own words, their statements appear on pages 3 and 4. In contrast, we Circulation: have also reprinted an article on page 10, which describes the government structure of the People’s Richard He Republic of China. Be sure to exercise your right to vote on Tuesday, Nov. 4, 2008. [email protected] Another topic occupying the minds of most Americans today is the economy and their personal fi- nancial status. Since we do not normally cover subjects such as this, we thought you might enjoy an Production Editor: article that appeared in fedgazette which is presented on page 12. Dawn Murphy Although the excitement of the 2008 Beijing Olympics has subsided, China continues to dominant [email protected] the news and has recently conducted a spacewalk as noted on page 1. Also making headlines for China, unfortunately, is the subject of tainted milk and the harm it has Director of Marketing and Communications: caused. This is discussed on page 6. Will Ahern On a more pleasant note, we are pleased to report on the activities of two of our finest ladies. On [email protected] page 1, Amy Xu is headed to the Ironman Triathlon and Pearl Bergad has just returned from the White House as noted on page 7. Marketing Representative: Based on the number of events we are reporting, it is quite evident that activity in the community Paula Ashley is picking up. The Confucius Institute at the University of Minnesota and the China Center have a full [email protected] schedule of activities. CAAM has scheduled its 2008 Annual Production and the Chinese Heritage Foundation will be holding its Annual Open House. Make your reservations now. Artist/Intern: As always, thank you for your support and please don’t hesitate to contact us if you have any com- Lauren Hugh ments or recommendations to assist us in fostering business and cultural harmony between the U.S. and China and visit our Web site at www.chinainsight.info for the latest news. Staff Writers: Will Ahern Sincerely, [email protected] Gregory J. Hugh Gregory J. Hugh Greg Hugh Publisher [email protected] BECOME A MEMBER Albert Leung [email protected] Thank you for reading Jennifer Nordin Ch i n e s e He r i t a g e Fo u n d a t i o n [email protected] Ch i n a Insight Join now to help preserve and Mike Xiong promote the understanding of [email protected] Chinese history, culture and heritage among all Minnesotans. Call Pearl Bergad, About Ch i n a Insight (612) 722-4895 Ch i n a Insight is a monthly English language or visit the website at newspaper fostering business and cultural www.chineseheritagefoundation.org harmony between China and the U.S.

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Copyright 2008 Ch i n a Insight, Inc. All Rights Reserved. www.chinainsight.info commentry OCTOBER 2008 > PAGE 3 The future of U.S.-China relations U.S. Presidential hopefuls John McCain and Barack Obama outline their China policy exclusively in the October issue of AmCham’s China Brief magazine. The candidates write in their own words what the U.S.-China relationship would look like under their respective administrations. Visit www.amcham-china.org.cn to view China Brief online.

U.S.-China relations under an Obama administration By Barack Obama

years makes clear that we can work together consumption has actually gone down as to do serious work if we are to create the constructively, bilaterally and with others, a percentage of GDP. To increase internal level of mutual trust necessary for long- to reduce tensions on even extraordinarily demand Beijing will have to improve sub- term cooperation in a rapidly changing sensitive issues. stantially its social safety net and upgrade region. Each country has deep concerns More broadly, the United States supports its financial services sector to bring its con- about the long-term intentions of the other, and benefits from security and stability sumption in line with international norms. and those concerns will not disappear of in Asia. We need to address the principal Central to any rebalancing of our eco- their own accord. causes of regional tension. As I made clear nomic relationship with China must be Cooperation on the key, enduring global in my congratulatory letter to Ma Ying- change in its currency practices. Because it challenges, such as climate change, can jeou on his inauguration, we support steps pegs its currency at an artificially low rate, deepen understanding and enhance confi- to build trust across the Taiwan Strait and China is running massive current account dence. We also need to deepen high-level improvements in relations between Beijing surpluses. This is not good for American dialogues on a sustained basis on economic, and Taipei, now more possible with good firms and workers, not good for the world, security and global political issues. Our will by both sides than at any time since the and ultimately likely to produce inflation militaries should increase not only the mid-1990s. Reduction of tensions between problems in China itself. quantity of their contacts but the quality of China and Japan is in the interests of those As President, I will use all the diplo- their engagement. two countries, and of the United States. We matic avenues available to seek a change In the modern world, non-traditional se- seek the type of stability and well-being in China’s currency practices. I will also curity threats are looming increasingly large. on the Korean peninsula that can only be undertake more sustained and serious ef- These include the challenges of terrorism, brought about by the complete elimination forts to combat intellectual property piracy proliferation, failed states, infectious dis- Senator Barack Obama of North Korea’s nuclear weapons program in China, and to address regulations that eases, humanitarian disasters and piracy on and normalization of relations between discriminate against foreign investments the high seas. The United States and China In the coming years, the United States North Korea and all the participants in the in major sectors and other unfair trading have developed some cooperation in each and China face challenges that require fresh Six Party Talks. And finally, and critically, practices. And I will work with the Chinese of these areas, but in some we continue to thinking and a change from the U.S. policy we need a strong foundation for a long-term government to establish a better system for have real differences, about which we must approach of the past eight years. How the positive and constructive relationship with both countries to monitor products produced be candid. In particular, I look to China to [United States] and China meet these chal- an emerging China. for export and act when dangerous products work with us to prevent Iran from develop- lenges, and the extent to which we can find I firmly believe that an active, sophisti- are identified. ing nuclear weapons, to halt the genocide common ground, will be important both for cated and nimble U.S. diplomatic, economic As President, I will take a vigorous, in Darfur and to help reverse the slide into our own countries and for others in Asia and security presence in the region is critical pragmatic approach to addressing these anarchy in Zimbabwe. and beyond. to achieving these and related goals. Our al- issues, utilizing our domestic trade remedy Greater progress in protecting the human China has achieved extraordinary, sus- liances with Japan, South Korea, Australia, laws as well as the WTO’s dispute settle- rights of all its people and moving toward tained growth over the past three decades. the Philippines and Thailand are the foun- ment mechanism wherever appropriate. democracy and rule of law will better enable Hundreds of millions of people in China live dation of the U.S. security presence in the High-level dialogue among economic China to achieve its full potential as a nation, better now than most thought possible even region and contribute greatly to regional sta- leaders in both countries is also important domestically and internationally. China’s two decades ago. bility, threatening to no one. Along with the to achieving real progress. My approach to own people will expect, indeed demand, But as China’s leaders acknowledge, forward deployment of our military forces our economic relationship is positive and this. Such change will not weaken China, China must make some basic adjustments if in the Western Pacific, they are a necessary forward-looking: to remove obstructions as its leaders may fear, but will provide it is to continue sustained, shared economic but not sufficient basis for a sound strategy to gaining the benefits of trade and thus to a firmer basis for long-term stability and growth. China must develop practices that to strengthen regional security and stability. enable faster, and healthier, growth in both prosperity. China cannot stand indefinitely are more environmentally sustainable and An Obama Administration will look for op- economies. apart from the global trend toward demo- less energy intensive, that boost domestic portunities to work with China and others in Climate change is a truly common chal- cratic government, rule of law and full consumption as an engine of growth, that the region to foster an environment where lenge and a long-term problem that must exercise of human rights. Protection of the enhance the social safety net, and that en- regional stability and prosperity flourish. be addressed now. The United States has unique cultural and religious traditions of courage indigenous technology innovation. Asia’s economic and security landscape done too little on the issue, and I will work the Tibetan people is an integral part of Otherwise, the country’s future performance is changing, and this requires special atten- with the Congress and the private sector to such an agenda. may fall well short of its potential. tion to understanding unfolding develop- change that. Since the 1970s, America’s policy of The United States has the world’s largest ments in the region. But America’s interests The United States and China have heavy, engaging China has produced major benefits and strongest economy, but we, too, must in the vitality and stability of the region are if different, responsibilities to meet this vital for both sides and for Asia overall. The make serious adjustments in order to be enduring. challenge. For too long, however, each has U.S.-China relationship has had its share competitive in the [twenty-first] century. We With this in mind, I want to address pointed a finger at the other’s attitudes as of challenges, and new ones will inevitably must end the fiscal irresponsibility of recent some of the key issues that directly involve an excuse for not itself doing more. That emerge. Especially in a world of common years that has led to record high deficits our two countries. must stop. security, where events in any corner of the and a record low national savings rate. We Trade and investment undergirds pros- The climate change challenge demands globe can affect the entire planet, the world must invest in infrastructure, education, perity, and the [United States] and China that the United States and China develop more than ever requires that every major health care, science and technology. And we have one of the largest and most important much higher levels of cooperation with- country not only pursue its narrow interests must break our addiction to oil and launch bilateral economic relationships in the out delay. We are currently the world’s but also accept its responsibility to pursue a historic effort to transform our economy world. Our two nations are the first and two largest consumers of oil and the two urgently needed solutions to these broader by investing in renewable technologies, third largest trading nations, and China has largest emitters of greenhouse gasses. As problems. My administration will seek to energy efficiency and the next generation in recent years been America’s most rapidly the world’s richest developed economy revitalize America and lead it to realize its of clean vehicles. These initiatives will growing major export market. and largest and most dynamic developing full potential for constructive engagement help lay the foundation for broad based, I know that America and the world can country, our cooperation to reduce the threat in Asia and in the global arena. bottom-up economic growth that benefits all benefit from trade with China, but only if of climate change can produce models, Barack Obama is the junior U.S. Sena- Americans and helps strengthen U.S.-China China agrees to play by the rules and act as practices and technologies that will provide tor from Illinois and the 2008 Democratic relations as well. a positive force for balanced world growth. impetus to global efforts, including those to nominee for U.S. President.  We know that America and China can I want China’s economy to continue to reach agreement on a post-Kyoto climate accomplish much when we recognize our grow, its domestic demand to expand and its regime. Advertisers common interests. U.S. and Chinese coop- vitality to contribute to regional and global America and China have developed Your potential customers are reading eration in the Six Party Talks on the North prosperity. But China’s current growth is a mature, wide-ranging relationship over Ch i n a Insight. Shouldn’t you be bringing Korean nuclear issue over the past few unbalanced, and in recent years domestic the past 30-plus years. Yet we still have them in the door with an ad? PAGE 4 > OCTOBER 2008 commentary www.chinainsight.info U.S.-China policy under a McCain administration By Senator John McCain of global concern, including climate change, longer come back when business rebounds. ment. America can take the lead in offer- trade and proliferation. But some of China’s We need to help displaced workers make ing these developing nations low-carbon economic practices, combined with its rapid ends meet between jobs and move people technologies that we will all need. Given military modernization, lack of political quickly on to the next opportunity. the environmental challenges so evident in freedom and close relations with regimes China has obligations as well. Its com- China today, pressing on with uncontrolled like Sudan and Burma, tend to undermine mitment to open markets must include carbon emissions is in no one’s interest. the very international system on which its enforcement of international trade rules, China’s growing power and influence rise depends. The next American president protecting intellectual property, lowering endow it with the obligation to behave as must build on the areas of overlapping in- manufacturing tariffs and fulfillment of its a responsible stakeholder in global poli- terest to forge a more durable U.S.-China commitment to move to a market-deter- tics. China could bolster its claim that it is Senator John McCain relationship. mined currency. The next administration “peacefully rising” by being more transpar- The resurgence of Asia is one of the It must be a priority of the next American should be clear about where China needs ent about its significant military buildup and epochal events of our time. It is a renais- president to expand America’s economic to make progress, hold it to its commit- by working with the world to isolate pariah sance that is not only transforming the face relationships in Asia. Unfortunately, in what ments through enforcement at the World states. In addition, how a nation treats its of this vast region, but throwing open new has become an all-too-predictable pattern, Trade Organization and enforce U.S. trade citizens is a legitimate subject of interna- opportunities for billions of people on both some American politicians—including the and product safety laws. Doing so will help tional concern in today’s world. China has sides of the Pacific—Americans and Asians Democratic candidate for president—are steer the process of China’s economic inte- signed numerous international agreements alike—to build a safer, more prosperous and preying on the fears stoked by Asia’s dyna- gration with the world to ensure that it is a that make its domestic behavior more than freer world. mism; rather than encouraging American in- fair, two-way street. And the [United States] just a matter of national sovereignty. To be Seizing these opportunities, however, novation and entrepreneurship, they instead should continually expand opportunities as a responsible stakeholder in the modern will require strong American leadership and propose throwing up protectionist walls China develops, moving into retail ventures, international system, a government must an unequivocal American commitment to that will leave us all worse off. The United environmental protection, health, education, also be responsible at home, in protecting Asia, whose fate is increasingly inseparable States has never won respect or created jobs financial and other services. the rights of its people. from our own. It requires internationalism by retreating from free trade, and we cannot Beyond our economic relationship, the China and the United States are not des- rather than isolationism, and global trade start doing so now. [United States] shares other common inter- tined to be adversaries. We have numerous rather than national protectionism. When We also must recognize, however, that ests with China that can form the basis of a overlapping interests and I hope to see our our friends and allies in the Asia-Pacific while open trade with Asia is in America’s strong partnership on issues of global con- relationship evolve in a manner that benefits region think of the future, they should expect interest, globalization will not automatically cern. In addressing the problem of climate both countries and, in turn, the Asia-Pacific more—not less—attention, investment and benefit every American. That’s why we must change, for instance, Chinese cooperation region and the world. Our ties must be rooted cooperation from the highest levels of the remain committed to education, retraining will be essential. If we are going to establish in a broader regional and international order U.S. government. and help for displaced workers, regardless meaningful environmental protocols, they that provides the indispensable bedrock for A central challenge will be getting of whether their job went away because of must include the two nations—China and the shared prosperity and stability we all America’s relationship with China right. trade, technological innovation, or shifts in India—that have the potential to pollute the desire. America itself must be a stakeholder China’s double-digit growth rates have consumer spending patterns. For Americans air faster, and in greater annual volume, than in that system, and we must take seriously brought hundreds of millions out of poverty, who have lost a job, we need to expand any nation ever in history. our responsibilities to contribute to it. It is energized the economies of its neighbors opportunities for further education and The United States should continue to in this spirit that America’s relations with and produced manifold new economic training that can open new doors. We need negotiate in good faith with China and other China, and with the countries that comprise opportunities. The [United States] shares to modernize our unemployment insurance nations to enact the standards and controls the region surrounding it, should proceed. common interests with China that can form system to reflect the reality of the [twenty- that are in the interest of every nation— John McCain is the senior U.S. Sena- the basis of a strong partnership on issues first] century economy: jobs that go away no whatever their stage of economic develop- tor from Arizona and the 2008 Republican nominee for U.S. President. Spacewalk from Page 1 Chinese taikonaut greets nation, world in first spacewalk Zhai “walked step by step” by shifting the vast space, I felt proud of our mother- the wire hooks connecting him and the land,” he said. spacecraft. Before its return, the Shenzhou-7 [car- The live telecast of the historic moment ried] out trials of satellite data relay, a was watched by tens of millions of Chi- task aimed to improve the coverage and nese and met with [applause] and cheers efficiency of China’s satellite observation [of] crowds [watching] downtown outdoor network. screens and office television sets. In 2003, China became the third country “Zhai’s spacewalk is more miraculous after the United States and Russia to send than science fictions,” Yan Peng, editor-in- a human into orbit. It followed with a two- chief of a movie magazine, World Screen, man mission in 2005. The successful space- said. “As a Chinese, watching this space- walk makes China the third to master the walk is such an enjoyable thing.” extravehicular activity (EVA) technology At a media center set up for overseas following the United States and Russia. journalists in Beijing, Deng Yibing, chief The three astronauts made a successful engineer of the astronaut training center, landing on Sept. 28, ending the 3-day mis- turned quite emotional when watching the sion. State-run CCTV showed live footage live show. of the Shenzhou-7 spacecraft making its de- “The spacewalk was done exactly as it scent and landing in China’s Inner Mongolia was planned,” Deng said. tion to me,” Deng Fuqiang, a teacher at a President Hu talked with the trio [of] region. “I feel proud for the nation,” said “As a man with China’s manned space tent school in Mianyang. taikonauts after Zhai and Liu changed back commander Zhai Zhigang after the landing. program, watching Zhai Zhigang walking in “No matter it is natural disaster or space to working uniforms and joined Jing at the According to state media, China’s space pro- space is like a mother watching her tottering exploration, I believe there is nothing we re-entry module. gram plans to launch two more unmanned child,” he said. “Even though the steps were cannot overcome as long as we pool our Hu hailed the spacewalk as a break- craft by 2010, as well as another manned still a little bit staggering, I am so happy efforts and be united,” said Deng, who through and thanked the taikonauts for their spaceship with a crew of three to start work and satisfied.” watched the online broadcast in his office. devotion and excellent performance. on building a lab or space station.  The successful spacewalk also brought “How did you feel like in space after ex- (Reporting by Ji Shaoting, Wang Xi- excitement to southwest China’s Sichuan Congratulations From President iting the module?” asked a smiling Hu, who uqiong, Li Huizi and reporters of Xinhua’s After staying outside the capsule for Province, where people are still struggling to was talking on phone with the taikonauts. PLA Bureau, local bureaus, writing by about 20 minutes and traveling about [1218 recover from a deadly earthquake in May. “I felt superb,” answered Zhai. “The Chang Ai-ling) miles] along with the spacecraft in space, “Mankind is so small in universe, but we process of taking on the Feitian spacesuit Zhai returned to the orbital module in a are also brave. The taikonaut’s courage to went smooth,” said Zhai, looking confident foot-in-first position, marking a complete explore the unknown universe is an inspira- and radiant on the screen at the BACC. “In Source: Xinhua/APF success of China’s first space walk. www.chinainsight.info events OCTOBER 2008 > PAGE 5 Ode to Flowers melds Classic, Contemporary in art & dance Chinese Dance Theater premiers new performance Oct. 4-5 Flowers come to life in a harmonious The 90-minute shows will be Saturday, blend of dancing, painting and poetry in Oct. 4, 2008 at 7 p.m. and Sunday, Oct. 5, Ode to Flowers on stage Oct. 4-5 at the 2008 at 2 p.m. Tickets for adults are US$18 O’Shaughnessy Auditorium, College of St. and students/children (2-12) are US$15. A Catherine in St. Paul. Ode to Flowers pays Family Four Pack is available for US$60. tribute to flowers that hold special meaning Call (651) 774-0806 or (651) 246-3387 for in Chinese classics and artistic traditions ticket sales. including jasmine, bamboo, plum blossoms CDT will also present two 45-minute and peonies. The 2008 concert is presented school shows on Monday, Oct. 6, 2008 at 10 by the Chinese Dance Theater (CDT) of the a.m. and 1 p.m. Tickets are US$6 (call about Chinese American Association of Minnesota subsidized tickets). Call (651) 690-0210 or (CAAM). (651) 774-0806 for ticket sales. The School Ode to Flowers is an ambitious produc- Show Coordinator is Kathy Braga. tion, one that showcases a high form of Chi- The O’Shaughnessy Auditorium, Col- nese culture. Unlike previous CDT shows, it lege of St. Catherine, is located at 2004 blends classical Chinese and contemporary Randolph Ave., St. Paul.  choreography. Local law firm hosts China business law seminar Some 100 local and international busi- erty and mitigating piracy, as well as ways ness people, professionals and academics to bypass or enhance the effectiveness and operating or developing business with China control the costs of litigation, mediation and attended a day-long China business law arbitration in China. China Trade Mission seminar and networking event, presented All of the China law firms in attendance and hosted by the local law firm of Mans- and Mansfield Tanick & Cohen are members field Tanick & Cohen. The law firm also of Lawyers Associated Worldwide (LAW), a and Familiarization announced the opening of its China LAW worldwide law firm network, with 100 firms Connections Program. in 57 countries and 143 cities, comprising Beginning with a seminar focusing on over 3,500 lawyers (and rapidly expand- the key legal topics, cultural and practical ing its membership with the high priority Tour – “The China issues critical to business success in the in the PRC). Mansfield Tanick & Cohen, PRC; interspersed with several networking together with the five firms presenting and breaks, it culminated with a reception at the LAW’s other China law offices in Hong Experience 2009” law firm featuring speech by Arthur Rolnick, Kong, Shanghai and Guangzhou, announced The Eden Prairie Chamber of Commerce partnered with the Bremerton Chamber of economic expert from the Federal Reserve the inauguration of their new China LAW is conducting a Trade Mission and Familiar- Commerce located just outside Seattle. Be- Bank of Minneapolis. Connections Program providing expert sup- ization Tour to China departing on March fore the Chambers travel to China together, At the seminar, attendees heard from port for clients pursuing business with the 20, 2009. As the first Minnesota Chamber they will be offering an additional network- a group of 21 people comprised of U.S. world’s fastest growing economy. CLCP’s to lead a group to China, the Eden Prairie ing reception in Seattle. Participants will be lawyers, non-lawyer professionals and eight goal is to seamlessly connect their clients Chamber will be conducting an orientation able to meet leaders from the Bremerton/ Chinese lawyers from Beijing, Tianjin, Xia- with the right legal and non-legal talent program for anyone interested in participat- Seattle area, make business connections and men, Qingdao and Shenzhen. The focus was both in the United States and in the People’s ing on Oct. 23. This program will be held can take in the sites in Seattle. on early recognition of basic legal, cultural Republic of China. from 5:30 to 7 p.m. at the Hilton Garden Inn “We are very pleased to announce our and governmental “trouble points” so that Visit www.mansfieldtanick.com for in Eden Prairie. trip to China for metro business leaders they could be addressed before becoming more on Mansfield Tanick & Cohen and The nine-day trip includes visits to and residents alike,” stated Pat MulQueeny, worse. The wide range of topics included: www.lawyersworldwide.com for more Beijing, Shanghai, Souzhou and Hang- President of the Chamber. “We have been China employment laws, investment in information about Lawyers Associated zhou. An alternate two-day itinerary will working on initiatives around international China, repatriation of profits, structuring Worldwide. include a visit to Loudi, China – a city with trade and partners like the Bremerton Cham- companies and deals, contracting with Chi- Questions about the event, the new whom Eden Prairie already has a strategic ber who can provide additional opportuni- nese manufacturers, establishing a jointly CLCP or LAW may be directed to Seymour community partnership. Previous Chinese ties for our area businesses. To be able to or- owned (FJV) or wholly owned (WOFE) J. Mansfield, 612-339-4295, delegations from Loudi have visited Eden ganize this trip right after we got a snapshot manufacturing plant in China, multipronged [email protected] or Jeffrey Prairie, Loudi students visited Eden Prairie of China during the Olympics is fantastic, approaches for protecting intellectual prop- C. O’Brien, 612-339-4295, this past summer and the former Mayor of the timing couldn’t be any better.” [email protected].  Eden Prairie has visited Loudi. The all-inclusive price is just US$1,899 The China tour package includes round per person, double occupancy. A US$100 trip airfare from Seattle, 4-5 star hotel discount per person is available for those accommodations in China, three meals paying by cash or check. The optional per day, pre-arranged business meetings, visit to Loudi is available for an additional ground transportation, English speaking tour US$750 per person. The visa fee to visit guides, admission to all tourist spots and all China is additional. taxes. Attractions on the itinerary include To reserve space at the informational the Great Wall, Tian An Men Square, Tiger meeting or for further details, contact the Hill and more. An optional trip to Xi’an to Chamber President Pat MulQueeny at see the Terra Cotta Warriors is available. [email protected] or In addition, the Eden Prairie Chamber has 952-944-2830.  PAGE 6 > OCTOBER 2008 health www.chinainsight.info

Group. Sanlu received complaints about its milk as early as December 2007. It knew of melamine contamination in June but did not report the contamination to government officials until Aug. 2 according to a Sept. 22 report by the state news agency, Xinhua. The New Zealand company, Fonterra Cooperative Group, which owns 43 percent of Sanlu called Sanlu’s delay in reporting Milk tainted with melamine has resulted in complaints about babies who became sick four reported infant deaths in China across China. Contamination has also appeared in other food products that have milk as an ingredient. Three types of Lotte Koala Biscuit tested by the Center for Food Safety of Hong Kong contained high levels of melamine. CFS also tested 141 other items including cakes, breads and various milk products were found to be safe.

White Rabbit Candy after drinking its formula “appalling.” Throughout the scandal people have White Rabbit candies, popular in China tried to assign blame. No one agency, com- and abroad, tested positive for melamine in pany or person is responsible; the crisis of Singapore in September. Guanshenyuan, contaminated milk is the result of irresponsi- the producer of White Rabbit candy recalled bility in many steps of the process of getting the exports and halted all sales of the candy milk from the cows to the consumers. while undergoing tests for melamine by The farmers who supply companies with the Shanghai Entry-Exit Inspection and milk are responsible for putting melamine in Quarantine Bureau. The New Zealand the milk. Companies like Sanlu are respon- Food Safety Authority tests showed White sible for not testing milk purchased from Rabbit Creamy Candies had high levels of farmers and for not alerting the public and melamine. the government when concerns about tainted Seven Mr. Brown instant coffee and milk were first brought to their attention. milk tea products were recalled by Tai- The government is responsible for lax wan’s King Car Food Industrial Co. Ltd. food safety controls. Sanlu is such a big The products were made with a non-dairy name in China that it and the other 21 creamer manufactured by Shandong Duqing companies were in good standing and were Inc, China, which contained unsafe levels exempt from inspections by the General of melamine. Administration of Quality Supervision, In- It’s Never Too Early to Learn Chinese The United States Food and Drug Ad- spection and Quarantine. Agency direc- ministration had not found melamine when tor, Li Changjiang and many Communist 612-308-3595 or 952-225-0458 testing milk-based products imported from Party Officials in Hebei Province (where China as of Sept. 25. However, on Sept. Sanlu is based) lost their jobs in the end of 3815 Alvarado Lane, Plymouth, MN 55446 26, the FDA recommended U.S. customers September. not eat the recalled Mr. Brown products or Companies are losing revenue due to White Rabbit Creamy Candy. The FDA recalls and brand name reputations are taking a hit. There are stories of cover-ups by company executives and government Contaminated milk officials; and of threats to lawyers, who try to advise parents of affected children. In the efforts to shift blame, the most makes thousands of important thing seems pushed aside. The health and safety of the people, especially innocent children, should come first. If ev- eryone involved in China’s milk crisis made infants ill in China this their priority, there would be greater Four deaths reported disclosure of the problem and greater trans- parency and quality control in the future. By Jennifer Nordin, Staff Writer

Milk tainted with melamine has resulted The Chinese government has identified in four reported infant deaths in China be- 22 companies that have produced tainted tween May and September. It has also made milk. some 54,000 babies sick. advises anyone who consumes Mr. Brown Melamine is a chemical compound used or White Rabbit products and becomes ill to to make plastics and fertilizer, and to tan A Chinese baby undergoes treatment at a contact healthcare professionals. leather. When melamine is added to milk hospital after taking tainted milk powder, On Sept. 27, the European Union it makes the protein content appear higher. in Hefei, eastern China’s Anhui province banned the import of “composite products Jorgen Schlundt, director of the World on September 21. containing milk or milk products, intended Health Organization’s department of food for the particular nutritional use of infants safety, zoonoses and foodborne diseases, of melamine, but the higher amounts in and young children,” according to a notice said that harmless amounts of melamine can contaminated milk and milk products can published in the EU’s official gazette. be found in some foods from contamination cause kidney stones in infants. The Chinese government has identified from packaging or fertilizers. The body More than 7,000 tons of dairy products 22 companies that have produced tainted can eliminate these insignificant amounts have been pulled from grocery shelves milk. The first company identified was Sanlu www.chinainsight.info community OCTOBER 2008 > PAGE 7 CHF executive director honored Bergad one of many invited to White House for celebration of volunteers in America Ch i n e s e He r i t a g e Fo u n d a t i o n

You are cordially invited to attend the Fourth Annual Open House Of the Chinese Heritage Foundation on Sunday October 19, 2008 2:00 pm – 4:00 pm at the Gramercy Party Room 6711 Lake Shore Drive, Richfield 55423

Featuring “From the White House: the President’s Remarks on Volunteering” Please reply by October 14 to [email protected] or 612.722.4895 www.chineseheritagefoundation.org The Minneapolis Foundation . 800 IDS Center . 80 South Eighth Street . Minneapolis, MN 55402

NBA 2008-2009 season begins regular season, two in Minneapolis and two in Houston. The Wolves host the Rockets on Dec. 20 and Mar. 1, 2009. They will

The NBA preseason begins this month Bob and Pearl Bergad at the White House and the first game for the Minnesota Tim- berwolves is Oct. 6 at the Bradley Center against Milwaukee Bucks. The Bucks traded On Sept. 8 Pearl Lam Bergad, volunteer Yi Jianlian to the New Jersey Nets over executive director of the Chinese Heritage the summer, so fans of the latest Chinese Foundation, was invited to the White House basketball phenom will have to wait to see to attend President Bush’s ‘Remarks on Vol- him in action. unteering’. Since creating the USA Freedom The Timberwolves will face the Nets Corps, an agency dedicated to the promo- twice in the regular tion and expansion of volunteer service, in season. The Wolves Yao Ming and the Houston Rockets 2002, President Bush has been calling on will travel to the IZOD all Americans to build on the many acts of travel to Houston for games on Feb. 7, 2009 Center in the Meadow- service, sacrifice and generosity that fol- and Mar. 20, 2009. lands Sports Complex lowed Sept. 11. Yao and Yi will face off in East Ruther- in East Rutherford, President George W. Bush speaks to vol- ford on Dec. 22 and in Houston on Feb. N.J. for a game Dec. 5 unteers 17, 2009. and the Nets will come to the Target Center teering in the local Chinese community and A note to Kevin Garnett fans: KG and on Mar. 29, 2009. for spearheading the concert, Hún Qiáo, a the Boston Celtics will play against the Yao Ming and the Houston Rockets will Concert of Remembrance and Reconcilia- Timberwolves at the Target Center on play the Timberwolves four times in the tion on World War II in Asia, premiered by Nov. 21.  cellist Yo-Yo Ma and The Chamber Music Society of Minnesota in 2001. Speaking to the volunteers and their families gathered on the White House lawn, “If you shoot for the stars and President Bush called on all Americans to hit the moon, it’s OK. But you’ve volunteer 4,000 hours (or 2 years), in the got to shoot for something. A lot course of a lifetime, to serve our country of people don’t even shoot.” through acts of compassion. He noted ...Confucius that currently nearly 61 million Americans are giving their time to help others. Citing numerous examples of private citizens and corporate professionals responding to his The President reiterated his conviction George W. Bush and Pearl Bergad in 2002 call, he was filled with pride and gratitude. that bringing help and hope to others, lifting He praised established programs such as up souls and mending hearts in the process, In his travels across the country in the the Peace Corps and AmericCorps, and will help us all become better persons. With last six years, President Bush has often met commended new ones such as Citizen such volunteers staffing the country’s armies with outstanding local volunteers, selected Corps, Faith Based and Community Initia- of compassion, he expressed great optimism by the White House, to highlight his com- tive, Helping America’s Youth Initiative for the country. mitment to volunteerism. Pearl Bergad was and Volunteers for Prosperity, for inspiring N.B. The full text of the President’s remarks one of approximately 600 volunteers nation- volunteerism. He urged everyone to visit can be viewed at: http://www.whitehouse. wide to have been selected for this honor. volunteer.gov to discover new opportuni- gov/news/releases/2008/09/20080908-6. She was recognized for her years of volun- ties to serve. html  PAGE 8 > OCTOBER 2008 culture www.chinainsight.info Ancient and contemporary changes to the Great Wall By Lu Rucai, China Today staff writer survey among influential states- as those in the north such as Shandong,” men and entrepreneurs from 50 Zhou Youma says. A mural inside an Eastern countries in connection with the Han tomb discovered in Horinger County, 2008 Beijing Olympic Games, Inner Mongolia Autonomous Region in headedA by Feng Huiling, vice president of 1971 indeed depicts the occupant’s jour- the Renmin University of China, confirm[ed] ney from Chang’an (present-day Xi’an) to that the Great Wall is still the main sightsee- Horinger via the Juyong Pass. There was ing priority of visitors to China. consequently a meeting of cultures at the various localities along the Great Wall. How Long Is the Great Wall? Garrison troops were sent to the Great “Most people associate the Great Wall Wall upon its completion to consolidate with Badaling,” says Dong Yaohui, vice- frontier defenses. Soldiers and peasants president of the China Great Wall Society were ordered to cultivate wasteland along and authority on the subject. “Construction the Wall, and taxes were levied to cover of the wall began during the Spring and soldiers’ pay and provisions. Autumn Periods more than 2,000 years ago, Other than at times of invasion, garri- and continued through to the Ming Dynasty sons on the Great Wall rarely exceeded one (1368-1644). Its total length exceeds 6,500 or two soldiers to a single watchtower. When kilometers.” Badaling is just one [2.15- The Great Wall is the landmark of China in the eyes of the Chinese and peoples of the an enemy attack was reported, soldiers lit mile] section of the Ming Dynasty Great world. beacons to inform nearby troops, and the Wall currently open to tourists, a length that message would be passed via the Great Wall was punished. Today, even the most recently was with the aim of restoring order to the [doubled] in time for the 2008 Olympics. beacon towers to the military headquarters constructed sections of the Great Wall have farming economy, and the function of troops Building of the Great Wall was initi- in the capital. During the Ming Dynasty, a history of 300 to 400 years, which is why stationed on it was to maintain peace on ated by the southern State of Chu in the 7th beacons were lit to raise the alarm and gun- their condition is fragile.” the border. century BC, when China was in a state of shots signaled the number of invaders. The Zhou confirms that the Great Wall is The Great Wall to some extent promoted anarchy as numerous independently ruled beacon system was capable of alerting the extremely vulnerable to erosion, whose pace development of border trade. As the nomad- vassal states vied for power. The aim of capital to an attack within two hours from of damage far outstrips that of restoration. ic economy produced only meat and hides, the Wall was to strengthen defense of the as far as a thousand miles away. local regime. The State of Qi and others nomads would attack Central Plains farming in the north took similar defensive action. For War or Peace? communities and pillage the cloth and iron The Great Wall of China by Franz Kafka After Qinshihuang united the country and implements they produced. As Dong Yaohui (1883-1924) is an imaginative description established the Qin Dynasty in 221 BC, the explains, “Construction of the Great Wall of this ancient project that raises the points, defensive walls built by former northern prevented looting and established trade.” “With this method of construction (section vassal states were linked. Its total [3,100- Great Wall passes such as the Niangzi and by section) many large gaps arose;” “there mile] length extended from Liaoning in Zijing were outposts for collecting tariffs. are said to be gaps which have never been Northeast China to Gansu’s Minxian in filled in at all.” It then asks, “The wall was Northwest China. Today, just a few sections conceived as a protection against the people of the Qin Dynasty Great Wall still stand of the north, as was commonly announced in northern Datong in Shanxi Province, and universally known. But how can protec- Many perceive the Great Wall simply as western Minxian County in Gansu Province tion be provided by a wall which is not built a huge wall, but it consists of many military and Guyang in Inner Mongolia Autonomous continuously?” facilities, such as barriers, passes, terraces, Region. As vice-president Dong Yaohui of the beacon towers, and arsenals as well as de- China Great Wall Society remarks, “Military fense guard headquarters and barracks. Its defense is generally considered to have been multiple functions include a base for fighting the aim of the Great Wall. But it performed a and command posts, observation, commu- peaceful rather than warlike function.” Dong nications, and shelter. A defense project of The Yellow River flowing alongside the acted as guide to former U.S. president Bill such dimensions was an effective safeguard ancient Great Wall. Clinton and current U.S. president George against nomad cavalry. W. Bush when they visited the Great Wall. “Few battles occurred along the Great The Contemporary Roles of the Great Both presidents were keen to know why so Wall for thousands of years, and those that Wall much manpower, material and funds had did were of short duration. The Great Wall Since opening to the public in 1952, the The Shanhai Pass in the eastern section been expended on this massive, yet appar- was built to avoid wars, and its solidity number of visitors to the Badaling Great of the Ming Dynasty Great Wall in Qin- ently incomplete, defense project through- was with the aim of maintaining peace. Wall exceeds 150 million, including more huangdao, Hebei Province was known as out the centuries. Dong explains, “The Great There are forks on certain sections, and it than 400 foreign heads of state. the “First Pass under Heaven.” Wall was a means of reconciling China’s is not continuous in mountainous regions Several other sections of the Great nomadic and farming economies. Clashes Construction of the Great Wall contin- as building on steep slopes was pointless. Wall, amounting to some [19 miles], have between the Han and nomadic communities ued during the ten dynasties succeeding the The Great Wall, therefore, should not be since been opened to tourists. They include occurred throughout Chinese history. No- Qin, that on the largest scale during the Han defined simply as a military project,” Dong Mutianyu, Simatai and Juyongguan. Other madic ethnic groups north of the Great Wall, (260 BC - AD 220) and Ming dynasties. The Yaohui concludes. sections are badly in need of repair and such as the Qin and Han Dynasty Huns and total length of the Han Dynasty Great Wall “A main principle followed in building consequently dangerous. The Regulations Ming Dynasty Mongols, sought pastures for exceeded [6,200 miles], and was around the Great Wall was to ‘take advantage of on the Protection of the Great Wall prohibits their horses, cattle and sheep. They coveted [3,720 miles] in the Ming Dynasty, accord- natural barriers and take measures appropri- visitors to these areas. land in the Central Plains areas that had been ing to research. ate to local conditions,’” is Zhou Youma’s “The symbolism of the Great Wall is far settled by Han farmers. Nomad sheep and Most of the Great Wall still standing reply to Franz Kafka’s questions. greater today than its historical significance. cattle ruined painstakingly cultivated Han was built more than 600 years ago, in the It is above all a landmark, regardless of the crops, and farmers retaliated by slaughtering Ming Dynasty. The length within the Beijing Historical Great Wall Inhabitants roles it played in history,” concludes Dong nomad livestock. ” Many villagers living at the foot of the boundary, including the well-preserved sec- Yaohui.  The conflict caused many farmers to Great Wall in Shanxi, Shaanxi, Gansu and tions of Badaling, Simatai and Mutianyu, Reprinted with permission of China migrate southward, leaving large areas of even Beijing, are descendants of its original extends for [390 miles], Today (www.chinatoday.com.cn). farmland in the north to waste. Dong contin- builders and garrisons. “No matter how solidly it may have been ues, “In order to halt this agricultural retreat, Emperor Qinshihuang dispatched more built, the Great Wall, like everything else, troops were sent in by the government of the than 300,000 troops that had just wound up has a life span,” says Zhou Youma, deputy Central Plains areas to protect farmers and the military campaign against Hun invasion secretary general of the China Great Wall their land, but they would arrive only to find to build the Great Wall. He requisitioned a Society. “Its ‘quality guarantee period’ was that the marauders had already retreated. further 500,000 civilian laborers, among 50 years, according to Ming Dynasty stan- The nomads would simply renew their at- them convicts. “The soldiers were from all dards. If any problems occurred within that tack as soon as the troops had withdrawn.” over the country, and Ming Dynasty builders time, the officer in charge of its construction Construction of the Great Wall, therefore, were from both southern provinces as well www.chinainsight.info community OCTOBER 2008 > PAGE 9

Ironman from Page 1 Local Attorney to compete in Ironman World Championship before April in Minnesota. But since it was going to be her parents’ 40th wedding anni- versary, she decided to go since she wanted to celebrate the anniversary with her parents in China. So after two years of planning and post- ponements, the inaugural Ironman China competition was finally held on April 20, 2008, in Haikou City, China often referred to as the Hawaii of China. About 800 competi- tors representing 29 countries of which 50 were from China and 130 from the United States including Amy Xu. On the day of the race, the temperatures Xu at swimming portion of Ironman China were in the 90s and the humidity was even higher. A little more than half of the par- schedule and the demands of her career, Xu ticipants finished the race. Because of the quickly determined that she must provide weather conditions, many said it was the Xu crosses the finish line of Ironman China with her parents at her side some balance in her life and chose to seek most difficult Ironman they had ever partici- out activities that would challenge and sat- pated in. It was even difficult for spectators cling events, RAAM requires high levels of fund raising and competition, Xu has been isfy her in a different way. although Xu’s parents may not have noticed strength, endurance and mental fortitude. At involved with at least five organizations In 1998 she was encouraged by a cli- since they were there to celebrate their 3,000 miles, the race is almost 50 percent and served on their boards. She admits ent to pursue her interest in flying and she 40th wedding anniversary and watch their longer than the Tour de France, but unlike that it had become difficult to maintain this enrolled in a flying program and earned her daughter compete in a grueling 140.6-mile the Tour, it consists of only one stage. The routine and recognized that she could not pilot’s license. When not practicing law triathlon, under punishing weather condi- clock starts on the west coast and it doesn’t effectively serve all of these organizations or in the pilot’s seat, Xu runs four to five tions. In addition to the weather, racers to stop until each racer reaches the finish line as she felt they deserved so has resigned miles nearly every day and completes in deal with a poorly marked swimming course on the east coast. and now serves on the boards of only three marathons a couple times each year. since all but two of the buoys were removed Although she is an accomplished organizations. Unfortunately running during the winter by a typhoon that had passed through before marathon runner and cyclist, Xu had never In less than a week, Xu will be compet- in Minnesota is not very practical so Xu took the race began. experienced anything quite like RAAM. ing in the Ironman Triathlon in Kona, Ha- up cross country skiing. This was a natural Part of Xu’s plan was to cross the finish “By far, it was the toughest cycling race I waii. She will be one of 1,200 competitors choice since her family owns Rainbow line with her parents by her side during the have ever done.” from around the world. She will be one of Resort located in northern Minnesota not final leg of the race, she was racing on an Although Team Strong Heart had its perhaps 12 Minnesotans to qualify and the too far from Itasca State Park. This resort is even pace with a fellow racer from Canada doubts when it started the race and encoun- only Chinese. Regardless of how Xu fin- open year-round and promotes many winter and had to determine if she was going to tered difficulties along the way, they perse- ishes, she is already a winner. Her finish in activities including cross country skiing. maintain the pace to make sure that she vered because they were motivated by the the Ironman China, which qualified her to Xu was also instrumental in organizing and would finish the race under the gruesome cause they raced for: the children who attend compete in the WTC, would be, by itself, the promoting the first Chinese Vasaloppet to weather condition or pull out ahead so she Camp Odayin and RAAM didn’t seem too highlight of many triathletes’ career. be held in China in 2003 whose goal is to can have sufficient time to run into to the daunting in comparison. For additional information on a few of spread friendship and peace throughout the finish line with her parents. Not knowing Just 7 days, 1 hour and 55 minutes after the organizations mentioned in this article, world through cross country skiing. how far ahead of the other runner or where they began the race, Team Strong Heart please check their Web sites. Ironman Tri- During this period of personal develop- she stood to qualify for the World Champi- crossed the finish line in Annapolis, Md., athlon, www.ironman.com. Team Strong ment, Xu also made a career change when onship, she elected to summon up her latent taking a remarkable second place in the Four Heart, www.teamstrongheart.com. Camp she joined Dorsey & Whitney, a large inter- energy and make an effort to put some dis- Person Mixed Team Division. Odayin, www.campodayin.org.  national law firm, where she focuses on her tance between her and the other runner. As In addition to her career, sports activity, specialty of intellectual property protection it turns out, Xu was able to have her parents and patent law. She became a partner in the join her about 100 yards from the finish line firm in 2005. with a substantial lead. In doing so, Xu placed third in her age group and qualified for the 30th An- nual Ironman World Tri- athlon Championship. As a member of Min- neapolis-based, Team Ortho, Xu elected to wear the logo of the organi- zation to recognize the amateur athletes who run/ walk, bike, swim and ski to raise funds for medical research. Less than two months later, Xu and three team- Xu celebrates with her family and friends after finishing Ironman China Xu biking in Ironman China mates called Team Strong Heart, completed the Team Strong Race Across America Heart at Over the past five years, Xu has partici- (RAAM), a 3,000 mile, non-stop, 24/7 Ride Across pated in Ironman Triathlon qualifying races bicycle race across 14 states – from Ocean- America that have been held in Wisconsin, Florida, side, Calif. to Annapolis, Md. – and raised British Columbia and China. more than US$30,000 for Camp Odayin, Although Xu was accepted to compete a residential summer camp for kids with in the first ever Ironman Triathlon race cardiovascular disease. scheduled to be held in China in 2006, she Team Strong Heart included Xu and almost did not participate since it was post- three other Minnesotans: Melinda Sibernick poned and rescheduled and held in April, (a teacher at Maple Grove Junior High), 2008. By this time she had already made John Rotach (an engineer at Medtronic), a commitment to race in the Race Across and Jay Thompson (an engineer at the Twin America (RAAM) and had formed a team. Cities’ Three River Park District). They Also, there was concern as to being able to were supported by a dedicated crew and train properly before the event. The weather sponsors. really is not conducive for training outdoors One of the world’s most grueling cy- PAGE 10 > OCTOBER 2008 government www.chinainsight.info

This article was first published in the September 2003 issue ofC h i n a Insight as the first in a series on the Chinese government written by former staff writer Lisong Liu. It presents an overview of the governing bodies of the People’s Republic of China. The article has been updated to reflect new facts and statistics since 2003. State Structure of People’s Republic of China (PRC) By Lisong Liu, Staff Writer Based on public documents, and serv- NPC is held once every five years. Public Health; Foreign Affairs; Overseas organ, commanding the entire armed forces ing as an objective description of Chinese The leading organs of power in the Chinese Affairs; Environment Protection in the country. It is elected for a term of political systems and state organs, this Central Committee include the Politburo, and Resources Conservation; and Agricul- five years and can be reelected. The pri- short article will outline the state organs [of its Standing Committee, and the general ture and Rural Affairs.] mary organs under the Commission include: the People’s Republic of China] and their secretary of the Central Committee. The Presidency Ministry of Defense, which is the organ functions including the National People’s Secretariat is the principle administrative The presidency of PRC exercises the for military affairs in the State Council; Congress (NPC), the Presidency, the State body of the Politburo and its Standing Com- power of the head of the state according Headquarters of the General Staff; General Council, the Central Military Commission mittee. The central organs of the Party also to decisions of the NPC and its Standing Political Department; General Logistics De- (CMC), the Supreme People’s Court (SPC), include the Central Military Commission Committee, and is the supreme representa- partment; General Armament Department; the Supreme People’s Procuratorate (SPP), and the Central Commission for Discipline tive of China both internally and externally. headquarters of the various branches of the and the Chinese People’s Political Consulta- Inspection. To be elected, the candidate must be citizen armed forces; and headquarters of the vari- tive Conference (CPPCC). First, however, it of the PRC and must have reached the age ous area military commands, which is the is necessary to look at how the state organs Structure of the State of 45. The power of the president includes highest commanding bodies of consolidated are defined and related to the Constitution National People’s Congress (NPC) promulgating statutes adopted by the NPC, military forces in each strategic region. and the Communist Party of China (CPC). According to the Constitution, the NPC appointing and removing members of the China [has 2.8 million active-duty members is the highest organ of state power. Deputies State Council, proclaiming martial law, in the] armed forces. Constitution and the Communist Party to the NPC are elected from the provinces, declaring a state of war and issuing orders Supreme People’s Court (SPC) of China (CPC) autonomous regions, municipalities directly of mobilization, etc. There are six men that The SPC is the highest judicial organ in Constitution under the central committee and the armed have held the office of presidency of the China. According to the Constitution, its re- The existing Constitution of China was forces. The NPC is elected for a term of People’s Republic of China: Mao Zedong, sponsibilities include trying cases that have adopted at the fifth session of the 5th Na- five years, and meets in session once a year. Liu Shaoqi, Li Xiannian, Yang Shangkun, the greatest influence in China, supervising tional People’s Congress on December 4, Among NPC’s main functions and powers Jiang Zemin, and currently, Hu Jintao. the work of local courts and special courts 1982 and was amended in 1988, [1993, 1999 are formulations of laws, delegating author- State Council at every level, and giving judicial explana- and 2004]. The Constitution defines the so- ity, policy formulation, and supervision of The State Council is the highest execu- tions of the specific utilization of laws in cialist system as the basic system of China, other governing organs. tive organ of state power. It is responsible the judicial process that must be carried and establishes the goal of the leadership Standing Committee for carrying out the principles and policies out across the nation. The President of the of CPC in China, which is to lead people to The Standing Committee of the NPC of the CPC, as well as the regulations and SPC is elected by the NPC with each term build socialism with Chinese characteristics. is convened once every two months. It is laws adopted by the NPC. It deals with of five years, and can not be reelected after The Constitution defines the fundamental composed of the Chairman, Vice Chair- a variety of affairs like China’s internal two successive terms. The SPC is composed rights and duties of citizens, the National man, Secretary-general and [other. The politics, finance, economy, culture, educa- of a judicial committee (the highest judicial Flag, the National Emblem and the Capital, Standing Committee of the Tenth NPC has tion, diplomacy and national defense. It is organization, consisting of the president, as well as the state structure at both central 175 members.] The terms of office of the composed of a Premier, Vice-Premiers, State vice presidents, presiding judges, vice and local levels. Standing Committee corresponds with that Councilors, ministers in charge of ministries presiding judges and judges), and various Communist Party of China (CPC) of the NPC. The Chairman and Vice Chair- and commissions, the Auditor-general and courts. China’s trial system follows a two- The CPC is the sole party in power in man of the Committee shall not serve more the Secretary-general. The term for the posi- hearing system in the trial process. China. Established in 1921, CPC now has than two consecutive terms. [There are nine] tion in the State Council is five years, and The Supreme People’s Procuratorate a total membership of [some 73 million] special committees representing the NPC. the incumbents can not be reappointed after (SPP) belonging to more than 3 million grassroots [They are: Ethnic Affairs; Law; Internal and two successive terms. The people’s procuratorates in PRC are organizations. The central leading organ of Judicial Affairs; Financial and Economic Central Military Commission (CMC) the Party is the National Party Congress Affairs; Education, Science, Culture and The CMC is the highest state military (NPC) and the Central Committee it elects. PCR continues on Page 11

Groundbreaking research sheds light on Chinese people’s opinion The average American might be sur- is a considerable degree of criticalness In China the results were mixed, some- and internet are highly controlled.” prised to learn that people in China feel expressed about political and civil rights,” times puzzling. In general, citizen levels As for the 2008 Summer Olympics fairly free to express their political opinions said Carlson. of satisfaction were much higher than the China [hosted], Carlson says that we have and, what’s more, many are not satisfied Carlson’s work delves into the com- ratings given to China’s government by to view China’s human rights situation in with specific civil and political rights. But plexities of how populaces perceive these Freedom House, although not so high that both the short term and the long term. In these are among the surprising conclusions a conditions in their country. Respondents they suggest a fear to speak candidly. And the short term he sees questionable evidence University of Vermont political scientist has were asked questions ranging from satis- yet 30 percent of respondents expressed that hosting the Olympics has improved drawn from a research project he recently faction with the electoral process to their satisfaction in the electoral process, a num- conditions. presented at three Asian universities. evaluations of corruption in the political ber which appears quite high given the lack “Anything that could tarnish the im- “Basically in China people are free to system. He argues that while much atten- of direct elections at the national level in age of the Olympics,” Carlson said, “po- say their opinions,” said assistant professor tion is focused on expert opinion, percep- China. “If citizens don’t have accurate in- litical authorities have swept under the Matthew Carlson, “as long as you don’t tion of human rights by everyday people is formation about actual political conditions, rug. They’re using the glory and prestige organize. If you organize you’re likely to unknown. it is difficult to offer a meaningful or even of the Olympics to show Chinese citizens get in trouble.” “Most of the studies,” Carlson said, critical opinion,” Carlson said. and the world that China is strong and to Carlson’s research is based on in-depth “focus on established democracies. We Carlson, who presented his findings this further legitimize their continued rule over personal surveys conducted by Tokyo’s know much less about what people think summer in Beijing, Taipei, and Seoul as a the country.” Chuo University from 2005 to 2007 in 29 about human rights in democratizing or recipient of the East Asia Institute’s Fellows In the long term, Carlson said, politi- Asian countries, ranging from the most authoritarian countries.” Program on Peace, Governance, and Devel- cal science is not always accurate when it democratic to the worst authoritarian re- To the extent that conclusive patterns opment in East Asia, argues that the limited comes to making predictions. But, he gimes in the region, comparing responses emerged, Carlson found that in the most access to information in China, rather than admits, “They’ve unleashed this event. with democracy scores released by Freedom democratic countries, such as Taiwan, South fear of reprisal, is one explanation for the The question is, how much longer can the

House, an independent, nonpartisan organi- Korea, Japan, citizens were more likely to apparent disconnect between public and communist party keep accurate information zation in New York. In China, 2000 people be critical of their governments while those outside expert opinion. about domestic political conditions and the were interviewed. living under the most oppressive regimes, “Anything that challenges the notion of outside world from getting in?” “If you compare Chinese responses Cambodia, Turkmenistan, people were the building this great, strong China,” Carlson against those of other Asian societies, there most positive. said, “the elites are fearful about. The media Source: Newswise www.chinainsight.info business OCTOBER 2008 > PAGE 11 Building a Business trends in production facility China… in China enables the perspective local company to be from Hong Kong By Greg Hugh, Staff Writer competitive In addition to its regular monthly meet- sons multinationals choose Hong Kong first ing, the U.S.-China Business Connections for their regional headquarters; its benefits Control Products, Inc., an electronics sive safety stock. Many of our U.S. custom- (UCBC) held a special meeting on Sept. 17, and location facilitate entry into China and manufacturing company with headquarters ers also have plants in Asia and our Suzhou 2008, and invited Michael J.J. Rowse, world other parts of Asia. in Chanhassen, Minn., has found continued plant provides local support for these multi- renowned expert on China affairs and busi- He further noted that Hong Kong contin- success by building a production facility in national customers. In summary, the result ness, to a presentation: Business Trends in ues to be an important port through which Suzhou, China, located an hour outside of of this paradigm shift in our business model China…the Perspective from Hong Kong. goods made in the mainland are shipped. Shanghai. enables us to further assist our customers in Rowse has spent more than twenty Hong Kong also continues to enjoy much being globally competitive.” years in China pursuing business develop- recognition as a financial center since it is In response to how difficult it was to ment in china and trade between the United the main choice for companies from main- establish a plant in China, Carlson stated, States and China. He has become very land China that want to raise capital via “The process of establishing a plant in familiar with the op- public listing. China involved many months of prepara- erations and representa- In his closing tion, but the journey has been rewarding. tives of the top levels of statements, Rowse The Chinese people are very friendly and Chinese provincial and stated that Hong very accepting of Americans. However, national government, K o n g i s k n o w n our experience has taught us that building a and regularly advises around the world as plant in China is only the tip of the iceberg Western nation officials a business-friend- in terms of challenges. Managing a foreign and executives on busi- ly city, where it is operation from a distance can be the most ness matters relating to easy to set up shop, difficult part of the process. The single China. As the current whether as an en- Paul Carlson biggest challenge is dealing with a cultural Director-General of In- trepreneur or a mul- Mr. Paul Carlson, President of Control mind set much different than our own. As vest Hong Kong, a department of the Hong tinational company establishing its Asian Products, was recently interviewed by Ch i n a a result, Control Products has been making Kong SAR Government, he leads economic headquarters. As a specialized arm of the Insight to find out more about the company a concerted effort to expand its Mandarin development for Hong Kong, one of the fast- government, Invest HK makes the process and their expansion into China. speaking workforce here in Minnesota. The est growing areas in the world and a global even easier, advising small, medium and Similar to many other industries, the addition of associates here at the home of- financial center. large companies about the opportunities and U.S. electronics manufacturing industry fices that have an understanding of Chinese Since this presentation created much the best way to build a business. continues to face growing competition from culture and language is extremely valuable interest, the meeting was held at the Min- Invest HK also offers supplementary regions of the world that offer low labor towards our long term success as a multi- neapolis Hilton and attracted a gathering of information and tips on living in Hong costs. In response to this foreign competi- national company. Our U.S. career tracks over 100 guests who were treated to a buf- Kong, emphasizing its low taxes, minimum tion, Control Products made the decision in were also modified to include time by U.S. fet breakfast and networking opportunities bureaucracy, excellent international schools, 2006 to penetrate the Asian market by estab- associates in our China operations, as well prior to the presentation. efficient and inexpensive transpiration sys- lishing a manufacturing plant in China. as our Suzhou associates spending time here The program began as UCBC president tem and low crime rate. Control Products’ management believed in Minnesota.” Warren Vollmer welcomed the group and, The presentation concluded with a ques- China operations would enhance the overall Carlson also shared with us that the U.S. as is the custom at UCBC meetings, asked tion and answer session and an invitation to business proposition of Control Products, management team has been taking Mandarin each of the attendees to briefly introduce visit Hong Kong or for more information offering growth opportunities both interna- language lessons, but he warned us that they themselves and explain their business. visit their Web site at www.investHK.gov. tionally and here in the United States. As are not quite ready to be trusted ordering Vollmer then introduced Rowse and hk. Carlson explained, “Today customers not dinner in China! commented that not only was his presenta- only demand the lower pricing available Founded in 1985, Control Products, tion going to be informative, it was going to October UCBC Meeting The next UCBC meeting is scheduled from Asia, but they also expect the high Inc. has been a leader in electronic design, be presented in an “entertaining” manner by for Oct. 1, 2008 and the topic will be “The quality, short lead times, and flexibility to embedded communications and global someone who obviously enjoys his job. Olympics – A reporter’s view” presented by which they are accustomed from local U.S. manufacturing solutions. Control Products’ Rowse began his presentation by pro- Jay Weiner of MinnPost.com. suppliers.” primary business unit, the Custom OEM viding some background as to how China The meeting begins at 7:30 a.m. and Frequently, original equipment manu- Division, designs and manufacturers pro- evolved and with the world’s fastest grow- will be held at the Minneapolis Community facturers (OEM) select foreign partnerships prietary electronic products for equipment ing major economy, it is changing at a & Technical College. The fee for non- based on little more than a handshake, and OEMs. Its products are used in many com- phenomenal pace. Yet the mainland still members is US$20. Reservations may be the end results are disappointing because mercial and consumer applications around relies on Hong Kong as its window to the made by e-mailing [email protected] of unexpected costs, poor quality, long lead the world. Applications include electronics world. The former British colony’s rule of or calling Jim Smith at 612-865-6543.  times, added complexity and challenging for commercial, food service equipment, law, sound administrative system, excellent cultural issues. By leveraging the strengths medical, HVAC and industrial equipment infrastructure and service industries are rea- of their Suzhou, China plant, together with manufacturers. Control Products is a mem- their two Minnesota plants, Carlson com- ber of the US-China Business Connection PRC from Page 10 mented that they can now offer U.S. custom- (UCBC) association. law supervision organs of the state, includ- political parties, mass organizations, differ- ers the cost advantages of China, and the To learn more about Control Products ing the Supreme People’s Procuratorate ent ethnic groups and representatives from logistical advantages of dealing locally. visit controlproductsinc.com or call 1-800- (SPP), local people’s procuratorates and all walks of life, as well as representatives Thus, as Carlson stated, “our customers 947-9098.  military procuratorates. The main tasks of of compatriots of Taiwan, Hong Kong and enjoy the fact that they can work directly the SPP are to exercise leadership and ensure Macao as well as returned overseas Chinese with our U.S. associates and avoid the cost Editor’s Note: The founder and CEO of the unity and correct implementation of state and other specially invited people. The Na- and complexity of dealing with oversea Control Products, Chris Berghoff, was a laws. There are 15 functional departments in tional Committee of the CPPCC serves for suppliers. All of our plants conform to the panel member at A Roadmap for Business the Supreme People’s Procuratorate. a term of five years and holds a plenary ses- same ISO 2001 standards which assure cus- Success in China, a business forum that The Chinese People’s Political sion once every year. Its Standing Commit- tomers of uniform high quality products. To recently was held. See Page 5 of this issue Consultative Conference (CPPCC) tee presides over the work of the National further reduce transaction risk, we offer the for more about the seminar. Under the Constitution, the system of multi- Committee, and is composed of the Chair- option to tool products in both the U.S. and party cooperation and political consultation man, Vice Chairmen, Secretary-general and in China. This allows us to manufacture the under the leadership of the CPC is a basic members. There are 34 units including CPC bulk of the product’s volume in China at a “The superior man under- system in China, and shall continue to exist and the other 8 parties that took part in the lower cost, but also gives us the flexibility stands what is right; the inferior and develop. The CPPCC is an organization past [11th] CPPCC National Committee. to produce the units locally in the event of man understands what will sell.” of the patriotic united front of the Chinese a sudden increase in demand. It also allows ...Confucius people. It is composed of the CPC, other the customer to minimize the cost of exten- PAGE 12 > OCTOBER 2008 economy www.chinainsight.info Say hello to the modest good life for me Anxiety over middle class living is complex, but probably not as warranted as the hand-wringing might suggest Terry J. Fitzgerald, Senior Economist, Federal Reserve Bank of Minneapolis, Ronald A. Wirtz, Editor, fedgazette It’s a tough economic world out there progress of the middle class over the long Such a comparison shows greater positive today. haul gives a broader, less emotional view of Compositional effects income gains in the Ninth District—between generational change. But there are additional measurement 20 percent and 45 percent for most house- From this bird’s-eye perspective, there issues to consider that further clarify the hold types, though there are large differ- are many ways to compare income growth gains that have been made by the district’s ences among subgroups and among district over time, each of which paints a different middle class. For example, one might think states (see Chart 5 on Page 14). picture. Trends in per capita income growth that a household is a household, and compar- For example, married households in since 1979, for example, are quite positive. ing those from different periods would be a the district (still easily the largest subgroup In each district state, average income per reliable barometer of change and improve- despite its decline) saw median income person went up by at least 50 percent in real ment. But the composition of households gains of 32 percent from 1979 to 2006. That (or inflation-adjusted) terms; in Minnesota, has changed significantly over the years. growth, for married households with and it leapt by 71 percent. But average income As a result, the median household today is without children, was 15 percentage points You don’t have to bury your nose in the masks the distribution of those gains, and different from the median household circa greater than the district’s overall (adjusted) news very long before you get the idea that much of that new income went to top earn- 1979. Those differences have a marked median income growth of 17 percent. Gains middle class America today is like a ball ers, thus inflating the overall average. effect on income and, by extension, any were higher for married households in all of Play-Doh in the hands of a child; it’s That’s why researchers often prefer growth trends attached to it. district states, but again there were notable getting squeezed, pulled, hammered, cut, the median measure—or the exact middle For example, married couples in the differences, ranging from 45 percent in pinched, rolled, tossed around and, finally, observation—as a good proxy for how the Ninth District made up 63 percent of all South Dakota to 16 percent in Montana. left out to dry. average Joe in the middle class is doing. households in 1979; female and male house- Female-headed households also saw It’s enough to give middle class folks And by median standards, he hasn’t done holders (with no spouse present) were 32 larger income gains than the overall district an inferiority complex, and it’s starting to all that well over the past couple of decades. percent of the total, and all other households median. Their income jumped 35 percent show: Fewer Americans now than at any The Economic Policy Institute reported that (for example, multifamily, unrelated adults) over 1979 levels, raising incomes to a still time in the past 45 years believe they’re nationwide median hourly wages grew a accounted for the remaining 6 percent. comparatively modest level of $24,000 moving forward in life, according to surveys scant 10 percent from 1979 to 2006; the U.S. (Figures exceed 100 percent because of in 2006. However, such households with in a recent report on the middle class by the Census Bureau reported an almost-as-scant rounding.) children saw much slower growth of 17 Pew Research Center (see Chart 1). 13 percent increase in median household Now fast-forward to 2006: Married percent. incomes. couples in the district made up 51 percent Male subgroups consistently trailed the What’s to argue over, except for the of households, female and male household- rest of the field. Male-headed households crumbs of this paltry growth? Plenty, be- ers 39 percent, and all other households 10 in the district saw their income rise just 13 cause commonly used measures of income percent (see Charts 3 and 4). This is impor- percent; more ominously, males with chil- and wages understate the long-term gains tant because the income of a household is dren saw their income decline by 7 percent. made by middle class households and closely associated with the characteristics of (Breakouts of smaller subgroups at the state workers. Official government data haven’t the people living in it, the most predictive level, like males with kids, are hindered by a necessarily been wrong; they might more of which are educational attainment and lack of reliable samples in small states like accurately be called incomplete, because the presence of a married couple. Married- Montana and the Dakotas. However, district important considerations are excluded, couple households in the district, for in- averages include all observations from these Across the Ninth District and nation, overlooked or improperly estimated. Factor- stance, earn more than twice as much as states.) Yet despite sluggish growth, median people fret that the middle class lifestyle ing in these items boosts wage and income either female- or male-headed households. income of male householders is still signifi- many simultaneously aspire to and feel growth considerably, at both the national So as the share of the highest income group cantly higher than their female counterparts, entitled to is becoming harder to reach and district levels. (married couples) gets smaller, the median who saw strong income growth. and more difficult to hold on to—a notion For example, many reports that fret over observation automatically moves toward reinforced by official government statistics sluggish income growth adjust for inflation a household subgroup that traditionally Data geek squad and repeated like economic waterboard- using the consumer price index. Though has a lower income. (See charts 3 & 4 on That’s still not the whole income story; ing by journalists, bloggers, pundits and logical at face value, the CPI has long been Page 13.) in fact, household income growth was likely politicians. criticized—for example, by the Boskin Here’s a simplistic example to illustrate stronger still from 1979 to 2006 than even Gone are the wistful days of the 1960s Commission in 1996—for likely overstating the effect of household composition chang- adjusted figures here reflect, because data do and 1970s, when it seemed that everyone— inflation, possibly by as much as 1 percent es. Suppose there are 10 people (five men not accurately account for all forms of in- well, every dad at least—had a good manu- or more per year. The personal consumption and five women) each making $34,000 per come. More to the point, household income facturing job that paid enough for mom to expenditures deflator (used in this analysis) year, and together they make up six house- data exclude certain kinds of compensation stay home and for the family to afford all the is widely believed to be a more accurate holds: four married couples with household that have been growing rapidly. trappings of middle class life: a house in a gauge of inflation over time. Such a matter incomes of $68,000, one male- and one Here’s how: The federal government decent neighborhood, good health care, paid might seem trivial, but in the long term it female-headed household, both with income measures household income in several vacation, a pension to retire on and college becomes significant. When income figures of $34,000. The middle income observation ways. The two most prominent are money for the kids. are adjusted using the PCE, nationwide for these six households is $68,000, the income (used in this analysis) and personal So much for nostalgia, right? Govern- median household income growth from income of a typical married couple. income. Money income, put together by ment data portray a stagnant middle class. 1979 to 2006 jumps to 20 percent—seven The next year, one of the married the Census Bureau, is basically what it And like the saying goes, if you’re not percentage points higher than the same couples is divorced. That leaves three mar- sounds like—income received as money. getting ahead, you’re falling behind. It’s income figures that use the CPI. ried households and four single-headed This includes wages, pension income, stock enough to make a middle class guy mutter For the Ninth District, moving from households—two headed by men and two dividends and so forth. It does not include a few no-class expletives. CPI-adjusted income to PCE-adjusted headed by women. Now let’s say every per- employment-based fringe benefits like But what if all this isn’t true, or is only income pushes median household income son gets a 10 percent pay raise. Is everyone health care coverage and retirement contri- partially true? What if the middle class in growth over this period from 10 percent to better off? You certainly could argue that. butions paid for by employers, which are the Ninth District is continuing to get ahead, 17 percent. (All figures hereafter are PCE- But because of the compositional shift, the a critical underpinning of the middle class particularly in the big picture? This fedga- adjusted.) median for these seven households plum- lifestyle. Equally important, these excluded zette article takes a close look at changes in Income gains differed considerably mets to $37,400 because the middle-ranked items grew rapidly over the past 30 years. middle American income, wages and living among district states; household income observation (with the raise) is now a single- For example, health care benefits paid by standards since 1979 in Ninth District states grew by 32 percent in South Dakota and headed household. employers rose by 250 percent per person, and finds that middle class living might not 24 percent in Minnesota, compared with This example exaggerates the actual de- after adjusting for inflation. be as bad, threatened or besieged as is com- meager growth of between 8 percent and cline in married couples, but it demonstrates On the other hand, personal income (the monly portrayed. 12 percent for Montana, Wisconsin and the why the overall household median can be other commonly used measure) is a broader Upper Peninsula of Michigan (see Chart 2 misleading. In the district, every state saw gauge of total income and includes nonwage A look at income malaise on Page 13). a decline in married households roughly in benefits and other compensation that con- The first step in this analysis is a palate The gains for most states are not par- line with the national trend. tribute to a household’s well-being. Growth cleanser: Back away from today’s challeng- ticularly robust, especially when compared in personal income exceeds that of money ing economic environment to get the big with earlier periods. From 1969 to 1979, Comparing neighborhood castles income by about 10 percentage points over picture. Clearly, many people are suffering for example, every district state except Wis- Given these subtle socio-statistical the period studied in this analysis, which from various maladies stemming from ris- consin saw median income grow between influences, analyzing similar household suggests that real median household income ing unemployment, higher inflation and the 9 percent and 19 percent (Wisconsin trailed subgroups offers a better apples-to-apples has grown more than Census money income current housing crisis. But examining the comparison of economic progress over time. at 5 percent). Good Life continues on Page 12 www.chinainsight.info economy OCTOBER 2008 > PAGE 13 Good Life from Page 12 While people’s income appears to have reau declined by 2 percent nationwide, and grown more than is often recognized, it has was negative for Minnesota and Wisconsin figures indicate. not likely grown as strongly since 1979 and very modest for the Dakotas and Mon- Unfortunately, household data on non- as it did during the preceding 30 years, tana. That certainly feels stagnant—maybe monetary income are not available. How- especially for certain kinds of households worse. ever, a conservative back-of-the-envelope and workers. While such short-frame analysis is calculation suggests that median household The point of this analysis is not to bury neither inappropriate nor inaccurate, it can income growth that included such compen- or deny gains of the distant past, nor gloss be misleading. Income growth tends to be sation would be at least 5 percentage points over what’s happened since. The intent is dynamic and cyclical; it doesn’t steadily higher. to help frame the discussion. Reportedly rise, instead accelerating for a time and then Adding up these three adjustments—for sluggish income growth is the source of slowing down, often in sync with business PCE, composition and missing compen- considerable angst. That anxiety gets com- cycles and other short-term economic fluc- sation—brings median household income pounded in tough economic times—like the tuations. From 1989 to 2000, for example, growth for most household types in the dis- current environment, where unemployment median household income in the United trict to a range of 25 percent to 50 percent— and inflation are rising, and public confi- States rose 8 percent. But a closer look well above the 10 percent median increase dence is falling. In the midst of this, it’s not shows that median income remained flat we started with, and pretty strong evidence surprising that people question economic from 1989 to 1996, then leapt 8 percent in that middle America has not stagnated over progress. the remaining years. the past generation. Too often, however, short-term trends Indeed, the 1979–2006 time frame Wagering some growth are overlaid onto long-term, generational comes with its own caveats. For starters, trends. Growth never proceeds in a perfectly it leaves out the two most recent years— Those concerned over middle class prog- straight or universally upward fashion, which have been a struggle for many—only ress also seize upon median hourly wages as which is something the nostalgia for the because detailed income data were not yet a measuring stick, which reinforces the no- good old days fails to recollect. While the available at the start of this analysis. No r t h Am e r i c a n Translations tion of stagnation even more than analyses past 30 years might not have been the apex But 1979 is also a very conservative—or based on household income. Your one-stop source for pre- of middle class progress in America, it’s high—starting point. That date was chosen District states saw very modest hourly also misguided to believe that middle class because it was a census year, which offers cise technical translations be- wage gains of 14 percent from 1979 to 2006; progress has stalled over the past three rich household data at the state level. But it tween Chinese and English. median wages in Montana saw no gains, and decades. was also an economic high point, just before the Upper Peninsula of Michigan had a very  We specialize in legal, financial, the onset of a high-inflation, recessionary small gain (see Chart 6 on Page 14). Such engineering and medical trans- The long-term snapshot from different period. Moving the starting date by a few figures bolster the common argument that lation work. angles years in either direction would have set it the good old days when a person could get The choice of time frame—the starting before the start of a high-growth period a family-supporting job out of high school and ending points—leaves a subtle but dis- (the late 1970s) or just after a period of very Our high-quality serice is com- are long gone. tinct impression on any trend analysis. But slow growth (the early 1980s), which would But as is the case with median household petitively priced. Contact us rarely are there obvious dates or a time frame have modestly, but noticeably, increased data, a lot of caveats tag along with any today to get your free quote. that both the half-fulls and half-empties can growth rates. conclusions. For instance, median hourly agree on, because shifting the dates merely —Terry J. Fitzgerald & Ronald A. Phone: 612-799-5415 wages mask the variation among subgroups. creates different implications. Wirtz Fax: 612-643-3498 Females had much larger increases in me- For example, much of the attention dian wages, while male wages were roughly Email: given to middle class wages and income fo- Editor’s Note: This article is reprinted flat. Furthermore, college-educated groups cuses on the short term, typically the period from the September 2008 issue of fedga- [email protected] saw much larger gains than less-educated since about 1999, when strong growth began zette, a monthly publication of the Federal groups, which had small or negative gains http//www.natranslations.com to wane leading into the 2001 recession. Reserve Bank of Minneapolis. Visit http:// (see Charts 7 and 8 on Page 14). Between 1999 and 2006, median household minneapolisfed.org to view the fedgazette And again there are compositional income as reported by the U.S. Census Bu- online. changes to consider. In district states, work- ers with at least some college increased from 39 percent in 1979 to 64 percent in 2006. So in 1979, a high school diploma denoted a better-than-average education, which often translated into higher wages. Today, simply finishing high school puts the worker roughly in the bottom one-third of all workers for educational attainment, and wages have reacted rather predictably. To expect otherwise ignores the value of education on worker productivity. As with household income, there are other technical reasons why median wage data probably don’t fully reflect what people are really earning. For example, commonly cited “average hourly earnings” data from the Bureau of Labor Statistics cover only production and nonsupervisory workers, a narrowing sector of the overall economy that has seen less wage growth than other labor BECOME A MEMBER groups. In fact, the data are unrepresentative enough that the BLS is expanding the AHE series to include data on all employees, and plans to reduce or eliminate data on only production and nonsupervisory workers. Similar to median household income, hourly wage data also do not include nonwage income, which now makes up 30 percent of total worker compensation, Ch i n e s e He r i t a g e Fo u n d a t i o n according to the BLS. Research in the September 2007 Region magazine (also Join now to help preserve and published by the Minneapolis Fed) estimates promote the understanding of that total compensation growth—wages plus Chinese history, culture and benefits—was about 8 percentage points heritage among all Minnesotans. higher than wages alone during 1975–2005. Call Pearl Bergad, (See also the September 2008 Region for a (612) 722-4895 closer look at household income in middle or visit the website at America.) www.chineseheritagefoundation.org Lost (income) generation? Good Life continues on Page 14 PAGE 14 > OCTOBER 2008 education www.chinainsight.info U of M boosts English language programs in response to Minnesota’s changing demographics

As is the trend around the country, certificate program, Professional English tions to the Minnesota economy,” said for Non-Native Speakers (short courses for Minnesota’s demographics are becoming Communication for Non-Native Speakers. Tom Norman, director of CCE’s Continu- working professionals): www.cce.umn.edu/ increasingly diverse -- nearly 350,000 cur- Geared toward working professionals who ing Professional Education unit. “We want certificateprograms/eng/ rent state residents are foreign-born, a figure have come to Minnesota from other coun- to help them make the best contribution Minnesota English Language Program that increased 117 percent between the years tries and who already speak English, the possible and advance professionally in (semester-long course with more in-depth 2000 and 2006. In response to this trend, the program offers short courses in speaking and their workplaces.” work): www.cce.umn.edu/esl University of Minnesota’s College of Con- presentation skills, grammar and business In conjunction with these short cours- Minnesota State Demographer Tom tinuing Education (CCE) is debuting several writing. The courses will help participants es, the College of Continuing Education Gillaspy’s Strategic Leadership Insights new ESL (English as a Second Language) communicate more clearly, directly and will also offer a semester-long course in presentation: www.cce.umn.edu/corporate- programs, with the goal of assisting new confidently in the workplace. Business English. The course will help education/leadershipinsights/speakerstopics/ Minnesotans in perfecting their English- “The Professional English Communica- participants who want more in-depth topic4/index.html speaking skills so they can advance in their tion for Non-Native Speakers program is English instruction. For more information on the program, work and personal lives. designed to empower non-native profession- For more information about these pro- contact Rachel Wright at 612-624-7770 or This fall, CCE is introducing a new als, who are already making big contribu- grams, visit the following Web sites: [email protected] or Ryan Maus at Professional English Communication 612-624-1690 or [email protected]. 

BOOKS Good Life from Page 13

Genius of China: 3,000 Years of Science, Discovery, and Invention By Robert Temple Forward by Joseph Needham Synopsis Based on the immense, authoritative scholarship of the late Joseph Needham, the world’s foremost scholar of Chinese sci- ence, this revised full-color illustrated edition brings to life the spirit and excitement of the unparalleled achievements of ancient China--with one hundred “firsts” in the fields of agriculture, as- tronomy, engineering, mathematics, medicine, music, technology and warfare.

The Three Faces of Chinese Power: Might, Money, and Minds By David M. Lampton Synopsis Clear, comprehensive, and well-balanced, this unique assess- ment takes the measure of what is arguably the most important geopolitical change in today’s world: the growth of China’s power. In the only book on the subject to be based on extensive interviews with elite political leaders, diplomats, and others in China, the United States, and countries on China’s periphery, David M. Lampton investigates the military, economic and intellectual dimensions of China’s growing influence. His account provides a fresh perspective from which to assess China--how its strengths are changing, where vulnerabilities and uncertainties lie, and how the rest of the world, not least the United States, should view it. Lampton gives a valuable historical framework by discussing how the Chinese have thought about state power for over 2,500 years, and he asks how they are thinking about the future use of power through instruments such as their space program. He also provides broad suggestions for policy toward China in light of the 2008 elections in the United States and China’s hosting of the Olympic Games, in a book that is essential reading for understanding one of the most significant developments of the twenty-first century.

Advertisers Your potential customers are reading Ch i n a Insight. Shouldn’t you be bringing them in the door with an ad? Our readers are: - Well-traveled - Opportunity-seeking - Entrepreneurial - Open-minded - Excited about understanding China Rates are highly competitive. Contact Greg Hugh (952-472-4757, ads@chinainsight. info) or visit www.chinainsight.info for more advertising information. www.chinainsight.info education OCTOBER 2008 > PAGE 15 Ribbon cutting Confucius Institute ceremony held at The offers Family Chinese Confucius Institute at and Introduction to the U of M Kung Fu The Confucius Institute at the University people believe that practicing Kung Fu can By Greg Hugh, Staff Writer of Minnesota invites parents and young reduce medical risks and provide relaxation, The grand opening of the Confucius Institute Following the signing ceremony, the children (ages 6 -10) in the Twin Cities to socialization, and balance in life. at the University of Minnesota (CIUMN) group then moved across the hall to the explore Chinese language and culture in a The instructor is Che Wang, a national was held on Sept. 19, 2008, at the new library where the ribbon cutting was per- fun Saturday program. certified Kung Fu athlete and former city Chinese language library which is an in- formed along with the unveiling of a com- Parents and children will work with Ms. champion of staff/sword in his hometown. tegral part of CIUM and is located in the memorative plaque by President Bruininks Zhou, a native speaker and licensed elemen- Mr. Wang was a student of Chinese national University International Center along with and Executive Vice President Gong Hu Li. tary teacher, to learn useful daily Mandarin champion Feng Jingmei—who was on the the University’s China Center. phrases, play games, sing songs, engage in Chinese National Wushu Performance Team Prior to the actual ribbon cutting cer- a variety of activities, and win prizes. This with Jet Li! He is skilled in Kung Fu/Wushu emony, the grand opening was preceded by is a wonderful opportunity for both parents performance, Taichi, Chinese boxing, and an open house from 1 -3:30 p.m. The formal and children to benefit from shared language self-defense. portion of the day’s activities began shortly and cultural experiences and to learn more Classes will be on Saturdays 10 a.m.–11 thereafter as guests gathered for a welcome about China and Chinese culture. a.m., Oct. 4–Dec. 13, 2008 (No class on No- from Joan Brzezinski, Acting Director of Classes will be on Saturdays 2 p.m.–3 vember 29). The enrollment fee is US$50 CIUMN. The keynote lecture, A National p.m., Oct. 4–Dec. 13, 2008 (No class on No- per person. Perspective on the Minnesota Chinese vember 29). The enrollment fee is US$130 Family Chinese and Introduction to Language Imitative, was then presented for one parent and one child and US$50 for Kung Fu will be taught at the University by Dr. Shuhan Wang, Executive Director each additional parent or child. International Center at 331 - 17th Ave S.E. of Chinese language initiatives at the Asia The Confucius Institute is also offering a in Minneapolis. Society in New York. Saturday Kung Fu program. This class will For more information about these pro- cover basic stretches, kicks, foot and hand grams, e-mail [email protected] or call work, as well as body coordination. Many 612-625-5080.

Unveiling of a commemorative plaque by President Bruininks and Executive Vice President Gong Hu Li. Orientation with an

President Bruininks The festivities were capped with the traditional lion dance and reception where ethnic touch Following the lecture, remarks were the guests were able to enjoy refreshments U of M hosted Multicultural Kickoff Days delivered by the following: Meredith and companionship. McQuaid, Associate Vice President and The CIUMN is a collaborative initiative Dean, International Programs, University with the Council for Chinese Language of Minnesota; Robert Jones, Senior Vice International (Hanban) and its partner President, System Academic Administra- university, Capital Normal University, in tion, University of Minnesota; Robert Bru- Beijing. ininks, President, University of Minnesota; The CIUMN will promote the study of Alice Seagren, Commissioner, Minnesota Chinese language and culture throughout Department of Education; Chu Maoming, Minnesota, particularly in the K-12 system Deputy Consul General, Chinese Consul- and the business community. The CIUMN ate General of the People’ Republic of is the first Minnesota Confucius Institute China, Chicago; Gong Hu Li, Executive and one of approximately 40 Confucius Vice President, Capital Normal University, Institutes in the United States and nearly Beijing, China. 250 worldwide. 

About 400 incoming University of university’s Multicultural Center for Aca- Minnesota first-year students of color expe- demic Excellence (MCAE) to welcome the rienced an orientation with ethnic touches new students and to celebrate the diversity when they attended Multicultural Kickoff Signing ceremony of the university. Various sessions gave Days Aug. 26 and 27. students the inside scoop on scholarships, In addition to the usual orientation financial aid, work study, research and vol- At the conclusion of the remarks, a sign- programs such as tours and presentations unteer programs. ing ceremony was conducted to execute a about U of M programs, the students were The students were also introduced to the memorandum of understanding between welcomed by a hip-hop step show, Aztec various ethnic units on campus, such as the the State of Minnesota and Hanban for the dancers and a Chinese lion dance. student cultural centers and the academic exchange of Chinese language teachers. The annual event was organized by the support services offered through the Office of Equity and Diversity. Representatives Below, The Chinese American Association of Minnesota performed a lion dance at the U of M Multicultural Kickoff. Above, Some of from the university’s financial aid office the students at the U of M Multicultural Kickoff are (front row, left to right): Nicole Berg, Sarah Beraki, Pangia Her; (middle row, left and study abroad programs will make pre- to right): Jennifer Hamilton, Xee Nyia Vue, Becky Guan, Elizabeth Casey, Mai Nou Lor; (back row, left to right): Kong Lee, Benson sentations. Crawford, Kia Xiong. “Multicultural Kickoff Days provide our new students an opportunity to meet other students, faculty and staff from diverse backgrounds,” said Jillian Rowan of MCAE. “It will also allow them more detailed in- formation, experience and connections to the multicultural services and offices at the U. It will help first-year students make a successful transition to college by building community and identifying academic and cultural support on campus.”  PAGE 16 > OCTOBER 2008 education www.chinainsight.info Visitors to U of M China Center experience a variety of activities By Greg Hugh, Staff Writer

Group photo

wooded 2-acre parcel, complete with apple Business Sun Yat-sen University which is and walnut trees which is something many located in Guangdong, China. of these Chinese educators have never Co-sponsors of the event included experienced. There was plenty of time to U.S.-China Business Connections, Chinese explore the natural surroundings, play bad- American Business Association of Minne- minton and enjoy a great BBQ. In addition sota and China Insight, which combined, to the educators, the Aherns invited a few invited an additional 70 guests, including H.E. Pin-Kung Chiang (r) and Robert Bruininks (l) exchanging gifts neighbors and families that had adopted representatives from local American and children from China so the group was able Chinese businesses and other types of or- to learn more about each others’ culture ganizations. Unfortunately not everyone Yuan. Chiang Pin-kung is an instrumental Taiwan group includes China Center and country. could be accommodated since the number on its RNC Visit figure in the peacemaking between the two According to comments by many of the of guests exceeded the maximum capacity n Sept. 4, the China Center sides of the Taiwan Strait and is highly re- guests, this will be an experience they will of the University Ballroom at the Radis- hosted a delegation of 25 people spected by the government in Beijing. always remember. son University Hotel where the event was from Taiwan who were in Min- If you would like to host this group with held. nesota to attend the Republican Group of educators from Beijing go to a BBQ some kind of activity, please contact Greg This American and Chinese business NationalO Convention. The delegation was Hugh at [email protected]. networking reception began at 6 p.m. and led by Chiang Pin-kung, the vice chairman A group of 24 educators from 17 differ- guests were invited to sit at tables that were of KMT (the Chinese Nationalist Party, Tai- ent universities in Beijing, China attend- Networking dinner held for EMBA split with equal numbers of visitors from wan), chairman of the Taiwan-based Strait ing classes at the China Center’s Mingda delegation China and local guests that were color coded Exchange Foundation, and former vice- Institute for Leadership Training recently On Wednesday, Sept. 24, 2008, The Chi- by business classifications. The group was chairman of the Taiwan Legislative Yuan attended a BBQ hosted by Will and Beth na Center held a business networking dinner welcomed by China Center staff members (congress). Accompanying the delegation Ahern at their home in Chanhassen. for 70 Chinese Executive MBA (EMBA) and during dinner, presentations were made was Jason C. Yuan, representative of the The group will be attending classes delegation members that are visiting the by representatives from various organiza- Taipei Economic and Cultural Representa- here until January, 2009. Their program United States for two weeks as part of the tions from China and the United States that tive Office in the United States. The group emphasizes the learning of English so that University of Minnesota’s Carlson School were in attendance. also included an eight-member news crew they are better trained to be able to teach of Management’s China EMBA program. The University of Minnesota Carlson and Taiwan legislators from both parties their subjects in English when they return The students are executives and managers School of Management’s China Executive (KMT and DPP). to China. They will also learn more about of businesses, educational and government MBA has, for the third time, been recently University of Minnesota president other teaching methodology and visit other entities in China primarily from Guangzhou ranked the No. 1 Joint Executive MBA Bruininks, vice president and dean of In- departments within the University. Another Province and are attending the School of (EMBA) Program in China.  ternational Programs Meredith McQuaid, aspect of their training program is to learn as and dean of the Humphrey Institute Brian much as they can about American customs Atwood met with the group in the Univer- and traditions so an outdoor BBQ was a sity International Center and the Humphrey perfect opportunity for these educators to Institute. McQuaid and China Center staff experience this summertime tradition in along with local representatives of the local Minnesota. Chinese community joined the delegation Not only was the weather exceptional, for a luncheon hosted by representative the Aherns’ home is situated on a secluded,

Networking Dinner held for EMBA Delegation

Getting to know one another Thank you for reading Ch i n a Insight