VOL. XXVII No. 2 February 2015 Rs. 20.00

Chinese Foreign Minister Wang Yi (R) met with his Indian counterpart Sushma Swaraj and held talks with her on bilateral ties in Beijing, China on Feb. 1, 2015. Chinese Foreign Minister Wang Yi (3rd R) held talks with Mr. Jiang Jianguo(R), Director of the Chinese State his Indian counterpart Sushma Swaraj (3rd L) in Beijing, Council Information Office (SCIO) of China and Ms. China on Feb. 1, 2015. Sushma Swaraj, Indian External Affairs Minister attended the launching ceremony of “Visit India Year 2015” in Beijing on Feb. 2, 2015.

Chinese Ambassador Mr. Le Yucheng met with Mr. Ajit Mr. Le Yucheng, Chinese Ambassador to India met with Kumar Doval, National Security Adviser of India and Indian Minister of Defence Mr. Manohar Parrikar in New Special Representative for China-India Border Talk in Delhi on Feb.3, 2015 and discussed with him on the Chinese Embassy on Feb. 2, 2015. They exchanged views development of military relations between China and on common concerns. India.

Mr. Le Yucheng, Chinese Ambassador to India met with On Feb.15, 2015, a celebration followed by a reception Mr. Siddaramaiah, Chief Minister of Karnataka in was held in Chinese Embassy to celebrate the Chinese Bengaluru on Feb. 4, 2015 and exchanged views with him New Year. Hundreds of overseas Chinese and Indian on China-India relations and local cooperations between guests attended the event. the two countries. CONTENTS

CHINA INDIA RELATIONS

1. Chinese President Eyes Continued Correct Direction for China-India Ties 4 2. Indian PM Expresses Wish for Stronger Economic, Trade Ties with China 5 3. Chinese Leaders Congratulate India on Republic Day 6 4. China, India Express Willingness to Deepen and Broaden Bilateral Cooperation 7 5. Chinese, Indian FMs Hold Talks 8 6. China, India to Boost Tourism Cooperation 9 7. Joint Communique of Russian, Indian, Chinese Foreign Ministers' Meeting 10 8. Media to Play More Positive Role in Boosting China-India Ties 17 9. Impression with and Reflection on China-India Relations 19 10. Ambassador Le Yucheng's Interview with Deccan Herald 23

EXTERNAL AFFAIRS

1. Xi Jinping Holds Talks with Argentine President 31 2. China, France Pledge to Boost "Strategic" Cooperation 34 3. Chinese Premier Li Keqiang's Address at World Economic Forum Annual Meeting 36

CHINESE ENTERPRISES IN INDIA

1. Sinopharm India 41 2. Sinosteel India 43

REVIVING THE SILK ROAD

1. China Sketches Out Priorities of "Belt and Road" Initiatives 45 2. China Holds Maritime Silk Road Seminar 46 3. China Kicks off Silk Road Tourism Year 48 4. Chinese Dance Drama Promotes "Maritime Silk Road" at UN HQ 49 5. Chronology of China's "Belt and Road" Initiatives 50

ECONOMIC AFFAIRS

1. Slowdown: A Blessing in Disguise? 52 2. Get Smart: Chinese phone makers 55 3. Double-Edged Sword 58

CULTURE & LIFE

1. The Vitality of a Traditional Art 61 2. Traditional Opera Arts of Province 64 3. Swan Lake in Shandong 67

TIBET TODAY

1. Tibetan Buddhism College Celebrates Losar in Beijing 68 2. The Life of Padma Chojor, a Layman Chams Artist 70

FLIGHTS BETWEEN CHINA AND INDIA 74 BOOK REVIEW 76 CCTV NEWS YOUR LINK TO CHINA AND THE WORLD 77 CRI A BRIDGE OF FRIENDSHIP 78 4 China India Relations News From China February 2015

CHINA INDIA RELATIONS

Chinese President Eyes Continued Correct Direction for China-India Ties

Chinese President Xi Jinping (R) meets with Indian Foreign Minister Sushma Swaraj in Beijing, capital of China, Feb. 2, 2015. (Xinhua/Huang Jingwen)

Beijing, Feb. 2 (Xinhua) — Chinese President cooperation between the two countries is “very Xi Jinping on Monday called for a continued good”. advancement of ties between China and India. Xi asked Swaraj to convey his greetings to “Leaders of the two countries should maintain Indian President Pranab Mukherjee and Prime communication and exchanges and work together Minister Narendra Modi and said he “welcome to ensure the correct direction for the Prime Minister Modi to visit China at an early development of the bilateral ties,” Xi said as he met date.” with India’s External Affairs Minister Sushma China and India should grasp the “opportunity Swaraj at the Great Hall of the People in Beijing. of the century” to combine their development Xi attributed the stable development of the strategies, and push ahead with their strategic relationship mainly to the accumulating political cooperation on railways and industrial parks to trust and consensus on some major issues benefit the 2.5 billion people of the two countries reached between the leaders of the two countries. as well as the global economic development, said Recalling his visit to India in September, Xi the Chinese president. said his visit initiated a new phase of relationship Xi said the two sides should patiently control and that the trend of friendly exchanges and News From China February 2015 China India Relations 5 and manage disputes to prevent them from Xi, adding that Xi’s visit last year elevated the affecting the overall relationship. He called for India-China relationship to a new level. sincerity and willingness to pursue a gradual and She said the consensus reached between the appropriate resolution of disputes. leaders were being implemented and India looks China stands ready to increase communi- forward to more investment from China and more cation and coordination with India on global balanced trade between the two countries. governance and other major international and The Indian side hopes for more dialogue on regional issues to ensure the international order border issues, she added. develops in a more fair and rational direction and Swaraj said Prime Minister Modi looked to safeguard the interests of emerging markets forward to visiting China and she believed this and developing countries, Xi said. visit would bring important progress for the For her part, Swaraj conveyed the greetings of relationship. President Mukherjee and Prime Minister Modi to

Indian PM Expresses Wish for Stronger Economic, Trade Ties with China

Indian Prime Minister Narendra Modi (R) meets with Wang Jiarui, vice chairman of the National Committee of the Chinese People's Political Consultative Conference and head of the International Department of the Central Committee of the Communist Party of China, during their meeting in New Delhi, India, Feb. 13, 2015.(Xinhua/Zheng Huansong)

New Delhi, Feb. 14 (Xinhua) — Indian Prime chairman of the National Committee of the Minister Narendra Modi on Friday expressed wish Chinese People’s Political Consultative for stronger economic and trade ties between Conference and head of the International India and China. Department of the CPC Central Committee, Modi During a meeting here with Wang Jiarui, vice said the visit by Chinese President Xi Jinping to 6 China India Relations News From China February 2015

Wang Jiarui(L), vice chairman of the National Committee of the Chinese People's Political Consultative Conference and head of the International Department of the Central Committee of the Communist Party of China, shakes hands with Indian Foreign Minister Sushma Swaraj during their meeting in New Delhi, India, Feb. 13, 2015.(Xinhua/Zheng Huansong)

India last September was highly successful and especially in the fields of local governance, youth that the friendship between the leaders of the two and women. countries is a driving force behind bilateral Wang said the successful visit by President Xi cooperations. to India last year has drawn a new blue print for He said stronger cooperation in the fields of China-India cooperation. economy and trade is conducive for India and The year 2015 marks the 65th anniversary of China to play a more important role in Asian and the establishment of diplomatic relations between world affairs. China and India, and China is ready to build closer Modi said the ruling Bharatiya Janata Party development partnership with India, to which the (BJP) of India is willing to carry out more Communist Party of China is willing to make its exchanges with the Communist Party of China, contribution, he said.

Chinese Leaders Congratulate India on Republic Day

Beijing, Jan. 26 (Xinhua) — Chinese leaders on pursuing a great dream of national rejuvenation. Monday sent congratulatory messages to their China is delighted with India’s achievements Indian counterparts on the 66th Republic Day of in its development, he added. the Southern Asian nation, pledging closer ties Noting this year marks the 65th anniversary of between the two neighbors. the establishment of diplomatic relations In his message to Indian President Pranab between the two countries, Xi said China is willing Mukherjee, Chinese President Xi Jinping said both to make concerted efforts with India to lift their China and India, as two ancient civilizations, are strategic cooperative partnership oriented to News From China February 2015 China India Relations 7 peace and prosperity to a higher level. cooperation and seeking common development. In a message to Indian Prime Minister China is ready to work with India to deepen Narendra Modi, Chinese Premier Li Keqiang said their mutually beneficial cooperation in various that in recent years, China and India have kept a fields and build a closer partnership of stronger momentum in joining hands for development, he said.

China, India Express Willingness to Deepen and Broaden Bilateral Cooperation

Chinese State Councilor Yang Jiechi (L) meets with Indian National Security Advisor Ajit Kumar Doval on the sidelines of the 51st Munich Security Conference, in Munich, Germany, on Feb.7, 2015. (Xinhua/Luo Huanhuan)

Munich, Feb. 7 (Xinhua) — China and India are Both sides should seize the opportunities, willing to deepen bilateral cooperation and remove the disturbances, and strengthen the collaborate in protecting common interests, said positive trend of China-India relations, Yang said. top officials from the two countries in Munich on He added that China and India should increase Saturday. high-level exchanges, improve political mutual The positive interaction between China and trust and consolidate the foundation of bilateral India is increasing and their momentum of relations. cooperation is improving, said Chinese State Cooperation, including those in culture, Councilor Yang Jiechi when meeting Indian railway and industrial parks construction, should National Security Advisor Ajit Kumar Doval on the be broadened, Yang said. sidelines of the ongoing 51th Munich Security The official proposed to respect and look after Conference. each other’s concerns, to push forward 8 China India Relations News From China February 2015

negotiations over boundaries, and to effectively and Asian fellows, India and China face a number maintain the peace and safety of border areas. of mutually beneficial cooperation opportunities. Yang also said China and India should enhance India is willing to enhance cooperation with cooperation in international affairs, promoting China in various areas, to jointly boost economic multipolarism and protecting common interests sustainable growth, as well as to maintain peace of developing countries. and stability of the region, Doval said, adding that Doval, for his part, said the bilateral relations his country expected to intensify coordination between India and China have improved since the with China and keep pushing forward the process new Indian government was formed. As the two of negotiations over boundaries. fastest growing developing countries in the world

Chinese, Indian FMs Hold Talks

Chinese Foreign Minister Wang Yi (R) meets with his Indian counterpart Sushma Swaraj in Beijing, China, Feb. 1, 2015. (Xinhua/Huang Jingwen)

Beijing, Feb. 1 (Xinhua) — Chinese Foreign the strategic and cooperative partnership with Minister Wang Yi and his Indian counterpart India. Sushma Swaraj held talks on bilateral ties in Last September, Chinese President Xi Jinping Beijing on Sunday. visited India, and leaders of both countries set a As two large developing countries, China and goal for building closer China-India development India pursue an independent foreign policy of partnership, Wang said. peace, and both countries attach priority to China is willing to make joint efforts with India developing relations with their neighbouring to implement the consensus reached by the countries, Wang said, noting that China cherishes leaders of the two countries and to be good News From China February 2015 China India Relations 9 neighbours and partners, Wang said, adding that shows a high-level development of bilateral ties. two countries should be good friends who are She hopes that her current visit to China will working together to promote democratization of show positive signals of India-China friendly and international relations and to safeguard the cooperative relationship. overall interests of developing countries. Swaraj is paying an official visit to China from Wang made some suggestions on bilateral ties Saturday to Tuesday as a guest of Wang Yi, and it is in 2015. He said China and India should continue her first visit to China since taking office. to keep high-level visits and strategic As the second largest economy, China is the communication and China welcomes Indian largest neighbouring country of India, Swaraj said, Prime Minister Narendra Modi to visit China this noting that India and China have broad common year. interests and both countries can benefit from each Wang said China and India should focus on other’s development. promoting pragmatic cooperation in the fields of Swaraj said that India attaches great railway, industrial park, smart city, tourism, importance to bilateral ties and Modi is willing to education, culture and new pilgrimage route. pay a visit to China at an early date within this year. Wang said China is willing to make joint India would like to make joint efforts with efforts with India to promote the process of China to strengthen understanding and mutual negotiations over border issue so as to maintain trust, properly handle the differences, advance peace in border area. comprehensive cooperation and sound Xi and Modi have met with each other three coordination in international and regional affairs, times since last year, Swaraj said, adding that it Swaraj said.

China, India to Boost Tourism Cooperation

Chinese Vice Premier Wang Yang (R front) and Indian External Affairs Minister Sushma Swaraj (L front) attend the launching ceremony of "Visit India Year 2015" in Beijing, capital of China, Feb. 2, 2015. Indian Prime Minister Narendra Modi also sent his greetings through a video message. 10 China India Relations News From China February 2015

Beijing Feb. 2 (Xinhua) — China and India, the boost tourism cooperation, Li Jinzao said. world’s two most populous countries, agreed to Attending the launch ceremony monday, boost tourism cooperation to strengthen people- Chinese Vice Premier Wang Yang called on the two to-people ties. sides to earnestly implement the consensus of the “We are confident that the number of China- two leaders. India mutual visits will exceed 1 million in 2016,” Indian Prime Minister Narendra Modi sent a said Li Jinzao, head of China National Tourism video message to the launch ceremony and Indian Administration (NTA), at the launch ceremony for External Affairs Minister Sushma Swaraj attended “Visit India Year 2015” here on Monday. the ceremony. Indian citizens traveling to China hit 645,600 According to tourism authorities, the two while 124,600 Chinese citizens chose India as the sides will work together to simplify visa first stop of their overseas trips in the 11 months procedures, increase direct flights and improve of 2014. service levels. The two sides will also develop new Overseas trips by Chinese people surpassed travel packages and routes as well as strengthen 100 million last year. communication and coordination to safeguard “Compared with the total population of 2.5 safety of tourists. billion of the two countries, 1 million is very Chinese monk Xuan Zang’s visit to India in the small,” Li said, stressing the space for cooperation seventh century is a legend loved by hundreds of on tourism is very huge. millions of ordinary Chinese people, said Yu During Chinese President Xi Jinping’s India Ningning, President of China International Travel tour in September, Xi and Indian Prime Minister Service. She believed that the two countries will Narendra Modi decided to launch “Visit India jointly write new friendship stories in the age of Year” in China in 2015 and “Visit China Year” in globalization. India in 2016. It is an important opportunity to

Joint Communique of Russian, Indian, Chinese Foreign Ministers' Meeting News From China February 2015 China India Relations 11

Beijing, Feb. 2 (Xinhua) — Russian, Indian and stressed the importance of pursuing a new type of Chinese foreign ministers issued a joint international relations featuring win-win communique Monday after wrapping up their cooperation. Russia, India and China are 13th meeting in Beijing. determined to build a more just, fair and stable The following is the full text of the document: international political and economic order in Joint Communique of the 13th Meeting of the accordance with the purposes and principles of Foreign Ministers of the Russian Federation, the the UN Charter, the Five Principles of Peaceful Co- Republic of India and the People’s Republic of Existence and other basic norms of international China law. The Ministers stressed the need to respect 1. The Foreign Ministers of the Russian diversity of civilizations and the independent Federation, the Republic of India and the People’s choice of development path and social system by Republic of China held their 13th Meeting in the people of all countries, support peaceful Beijing, China, on 2 February 2015. settlement of disputes through political and 2. The Ministers agreed that Russia, India and diplomatic means. They expressed their support China (RIC), as countries with important to the idea of adopting a UN General Assembly influence at international and regional levels and resolution on the inadmissibility of intervention emerging market economies, need to further and interference in the internal affairs of states. strengthen coordination on global issues and They opposed forced regime change in any practical cooperation, in the spirit of openness, country from the outside, or imposition of solidarity, mutual understanding and trust. They unilateral sanctions based on domestic laws. emphasized that cooperation between their 5. The Ministers recognized that the year 2015 countries is conducive to maintaining marks the 70th anniversary of the founding of the international and regional peace and stability and United Nations and the victory in the Second promoting global economic growth and World War, and paid tribute to all those who prosperity. fought against Fascism and for freedom. Russia, 3. The Ministers reviewed progress in their India and China affirmed the need to solemnly practical cooperation since the New Delhi commemorate those historic moments of great meeting on 10 November 2013. They agreed that significance in human history and their Russia, India and China should enhance their commitment to safeguarding a fair and equitable cooperation in think-tanks, business, agriculture, international order based on the purposes and disaster mitigation and relief, medical services principles of the UN Charter, preventing war and and public health. The Ministers explored conflict and promoting the progress and potential for cooperation in oil and natural gas development of mankind. The Ministers production and transportation, as well as in other welcomed the inclusion of the item of “Seventieth fields of energy, high tech, environmental anniversary of the end of the Second World War” protection and connectivity. They agreed to in the agenda of the 69th session of the UN General promote parliamentary, media, cultural and youth Assembly, and supported the United Nations and exchanges including visits of young diplomats. member states to initiate and organize They expressed satisfaction with the outcome of commemorative events. the 13th Trilateral Academic Conference held in 6. The Ministers reiterated their strong Moscow in July 2014, and welcomed the 14th commitment to the United Nations as a universal Trilateral Academic Conference to be held in multilateral organization entrusted with the China in May 2015. mandate of helping the world community 4. The Ministers noted the significant and maintain international peace and security, rapid changes underway in the world and advance common development and promote and underlined that the international community protect human rights. The United Nations enjoys should remain committed to democratization of universal membership and is at the very center of international relations and multi-polarity. They global governance and multilateralism. The 12 China India Relations News From China February 2015

Ministers recalled the 2005 World Summit Asia-Pacific region under the framework of the Outcome Document. They reaffirmed the need for East Asia Summit. a comprehensive reform of the United Nations, 8. The Ministers further underlined the including its Security Council, with a view to necessity to strengthen coordination and making it more representative and efficient, so cooperation in various regional forums and that it could better respond to global challenges. organizations such as the ASEAN Regional Forum Foreign Ministers of China and Russia reiterated (ARF), ASEAN Defense Ministers Meeting Plus the importance they attached to the status of India (ADMM-Plus), Asia-Europe Meeting (ASEM) and in international affairs and supported its Asia Cooperation Dialogue (ACD), so as to aspiration to play a greater role in the United contribute to maintaining regional peace and Nations. stability and to promote regional development 7. The Ministers reiterated their commitment and prosperity. In this connection, they agreed to to strengthening coordination and cooperation in establish a trilateral Russia-India-China a joint effort to maintain lasting peace and consultation mechanism on Asia-Pacific affairs, stability in the Asia-Pacific region, welcomed the with the first meeting to be held at an early date. 4th Summit of the Conference on Interaction and 9. Russia, India and China attached special Confidence Building Measures in Asia (CICA) and importance to their cooperation within the the Shanghai Declaration adopted at the Summit. Shanghai Cooperation Organization (SCO), The Ministers pledged to work together to seek regarding it as one of the key instruments in common, comprehensive, cooperative and promoting multilateral political, security, sustainable security. They called for the economic and humanitarian interaction in the development of an open, inclusive, indivisible and region. China and India shared the plans of transparent security and cooperation Russia’s Chairmanship in the SCO in 2014-2015 architecture in the region on the basis of a n d w o u l d s u p p o r t a n d p a r t i c i p a t e universally recognized principles of international comprehensively in preparing the SCO Summit law. In this regard, they welcomed the continued Meeting in Ufa in July 2015. China and Russia discussion on regional security architecture in the welcomed India’s application for full membership News From China February 2015 China India Relations 13 of SCO and supported India to join the SCO after secure, open and cooperative information space. completing all necessary negotiations and legal They underscored that sovereignty of a state over processes. the Internet and state conduct of ICT-related 10. The Ministers reiterated that terrorism in activities should be respected. They expressed all its forms and manifestations committed by their support for formulation of universally whomever, wherever, and for whatever purposes, recognized international rules of responsible is a threat to international peace and security, a state behavior in information space within the UN grave violation of human rights and a crime framework and advancement of the reform of the against humanity. The Ministers affirmed the international Internet governance mechanism as need for all countries to join efforts in combating enshrined in the Tunis Agenda. In this regard, the terrorism under the auspices of the United Ministers reaffirmed common views and Nations, in accordance with the UN Charter and approaches set forth in the 6th BRICS - Fortaleza principles and norms of international law and for Declaration (15 July 2014 ). the robust implementation of relevant UN 12. The Ministers noted that preventing arms Security Council resolutions and the Global race in outer space is in the interests of Counter-Terrorism Strategy. They called for early maintaining international peace and security and conclusion of negotiations on the Comprehensive for the promotion and strengthening of Convention on International Terrorism. The international cooperation in the exploration and Ministers reiterated that there can be no the use of outer space for peaceful purposes, ideological, religious, political, racial, ethnic, or highlighting the prevention of placement of any other justification for acts of terrorism. They weapons of any kind in outer space as one of its underlined the need to bring to justice main elements. The Ministers also noted the perpetrators, organizers, financiers and sponsors importance of establishing and developing a more of terrorist acts. Highly alarmed by the new trends focused dialogue and closer cooperative in international terrorist acts, the Ministers relationship among representatives of Russia, emphasized the need to step up information India and China with a view to advance the work of gathering and sharing, prevent the use of the the Scientific and Technical Subcommittee of the I n t e r n e t a n d o t h e r i n fo r m a t i o n a n d UN Committee on the Peaceful Use of Outer Space communication technologies (ICTs) for the (COPUOS). purposes of recruitment and incitement to 13. The Ministers supported the political commit terrorist acts, as well as for the financing, transition in Afghanistan through the presidential planning and preparation of their activities, block elections and security transition from the channels of terrorist movement and financing International Security Assistance Force (ISAF) to of terrorism, and promote de- the Afghan National Security radicalization, while respecting Forces (ANSF). The security international law. Russia, India and China are transition should be accompanied 11. The Ministers were of the determined to build a more by adequate measures for view that the international just, fair and stable increasing the ANSF capacity so community should make joint international political and that the ANSF should be capable efforts to counter the threat of the e c o n o m i c o r d e r i n to provide security for all the u s e o f i n f o r m a t i o n a n d country and population of communication technologies for accordance with the Afghanistan. The Ministers military, political, criminal and purposes and principles of affirmed their support for broad terrorist purposes through the UN Charter, the Five a n d i n c l u s ive p e a c e a n d international exchanges and Principles of Peaceful Co- reconciliation in Afghanistan that cooperation on the basis of mutual Existence and other basic is Afghan-led and Afghan-owned, respect, equality and mutual norms of international law. as well as to help Afghanistan’s benefit, and build a peaceful, integration into the region 14 China India Relations News From China February 2015

through its expanded trade and transport of the Israel-Palestine conflict based on the networks and regional connectivity. The relevant United Nations resolutions, the principle Ministers stressed that it is important for the of land for peace, the Arab Peace Initiative, with international community to remain engaged in the purpose of establishing a sovereign, Afghanistan and fulfill its long-term commitments independent, viable and united State of Palestine, on civilian and security assistance. They with East Jerusalem as its capital, living within supported the core coordinating role of the United secure and recognized borders, side by side, at Nations in promoting peace and stability in peace with Israel. They appealed to the Afghanistan. The Ministers highly valued the international community, particularly the Middle positive results of the Fourth Ministerial Meeting East Quartet, to continue its efforts aimed at of the Istanbul Process in Beijing, which achieving this end. The Ministers supported the contributed to strengthen regional cooperation UN Security Council in playing its due role in and facilitate peace, rehabilitation and economic solving the Israel-Palestine conflict. The Ministers reconstruction in Afghanistan. Russia, India and urged international community to provide Chi n a st re sse d t h ei r c om m i t m en t to continued assistance and support for alleviation implementing the Beijing Declaration for security of humanitarian situation in Palestine. and prosperity in Afghanistan and the region. 16. The Ministers discussed the latest 14. The Ministers affirmed developments in Syria. They their support for efforts to seek a reiterated that there is no military comprehensive and long-term Russia, India and China solution to the Syrian crisis and solution to the Iranian nuclear s t r e s s e d t h e i r urged all parties to abjure violence issue through political and c o m m i t m e n t t o and resume peace negotiations d i p l o m a t i c m e a n s . T h e y i m p l e m e n t i n g t h e based on “Geneva Communique” welcomed the extension of Beijing Declaration for of June 2012. The Ministers called negotiations between P5+1 and on the Syrian government and security and prosperity Iran, and hoped that the two sides opposition factions to resume the intensify diplomatic efforts with a in Afghanistan and the Geneva process as soon as view to reaching a comprehensive region. possible, stick to the approach of agreement at an early date. The political settlement and draw on Ministers encouraged Iran and the the useful experience of others to IAEA to enhance cooperation to resolve all the find a “middle way” that conforms to Syria’s outstanding issues. The Ministers stressed that national conditions and accommodates the once the IAEA confirms the exclusively peaceful interests of all parties, and start the national nature of Iran’s nuclear programme by means of reconciliation process at an early date. The applying stringent monitoring and resolving all Ministers supported the mediation efforts by the past and present issues of concern, Iran will fully UN Secretary-General and his special envoy to enjoy all the rights to peaceful uses of nuclear secure “incremental freeze zones” and to allow energy, including uranium enrichment under humanitarian aid to civilians. They highly valued strict IAEA safeguards and consistent with its the efforts by Russia to convene the first meeting international obligations. of inter-Syrian consultations between 15. The Ministers discussed the developments representatives of the Syrian Government and of the Israel-Palestine conflict. They stressed that opposition groups in January 2015. The Ministers its further deterioration may have a negative welcomed the important achievements made in impact on the prospects of both the Peace Process the elimination of Syria’s chemical weapons, and and Middle East affairs on the whole. They urged complimented the Organizations for the Israel and Palestine to exercise restraint and take Prohibition of Chemical Weapons (OPCW) in its effective measures to avoid further escalation of efforts towards elimination and destruction of tensions. The Ministers supported the resolution chemical weapons in Syria. They expressed News From China February 2015 China India Relations 15 support for the efforts of the Syrian Government and developing countries, with a focus on the to combat terrorism. They called on all parties in implementation of the 2010 IMF Quota and Syria to implement relevant resolutions of the UN Governance Reform by the end of this year. They Security Council, and fully cooperate with the stressed the need for international financial United Nations and relevant international institutions to provide more resources to promote organizations in their humanitarian efforts. They development. The Ministers reiterated their called on the international community to abide by commitments to enhancing cooperation within the guiding principles of the United Nations on the framework of G20, and called on all G20 humanitarian assistance. members to strengthen macroeconomic policy 17. The Ministers expressed deep concern coordination, reject protectionism as well as all over the ongoing turmoil in Iraq and its spillover forms of unilateral measures of economic effects, and emphasized their respect for the pressure taken without relevant decisions of the independence, sovereignty and territorial UN Security Council, safeguard the multilateral integrity of Iraq, and their support for the efforts trading system centered around the WTO, build an of the Iraqi government to uphold domestic open world economy, and play an important role stability and combat terrorism. They hoped that in global economic governance. Russia and India all parties in Iraq enhance unity and welcome and support the efforts of China to host reconciliation so as to swiftly restore national the 2016 G20 Summit. The Ministers reiterate stability and social order. The Ministers urged all their readiness to contribute to its successful parties concerned to refrain from interference, results. which could further aggravate the situation. They 20. The Ministers reaffirmed commitment to called on all parties to support the Iraqi the World Trade Organization (WTO) as the government and people in their efforts to build a preeminent global forum for trade, including stable, inclusive and united Iraq taking into account the interests of all segments of the Iraqi negotiating and implementing trade rules, settling society. The Ministers urged the international trade disputes and supporting development community to provide continued assistance and through the integration of developing countries humanitarian support for Iraqi refugees and into the global trading system. In this regard, they internally displaced people. reaffirmed commitment to the Doha Development 18. The Ministers expressed deep concern Agenda as well as to the regular work of the WTO. about the current crisis in Ukraine, and called on The Ministers expressed their support for the all parties in the inter-Ukraine conflict to exercise forthcoming WTO 10th Ministerial Conference to restraint and fully implement the Minsk Protocol, be held in Nairobi, Kenya in December 2015. They engage in comprehensive dialogue and pursue a underlined the importance of tangible progress at peaceful resolution of the crisis through political the Conference toward a successful conclusion of negotiations. The Ministers stressed that an the WTO Doha Round. independent, objective, fair and transparent 21. The Ministers noted that the emerging international investigation should be carried out market economies are a significant driving force for the crash of Malaysia Airlines Flight MH17, and for the world economic growth and have played an parties concerned should engage in cooperation important role in promoting the world economic within the framework of Resolution 2166 of the recovery. The Ministers fully recognized the UN Security Council. significance of the UN Summit for the adoption of 19. The Ministers expressed their support for the Post-2015 Development Agenda to be held in improved global economic governance to ensure September 2015. They called on the international sound and stable growth of the world economy. community to accelerate their efforts towards They called for immediate reform of the attainment of the MDGs and formulate the Post- international financial system to increase the 2015 Development Agenda under the principles voice and representation of emerging markets of equity, democracy, transparency, member 16 China India Relations News From China February 2015

states driven and consensus. The Post-2015 position as the main engines for sustaining the Development Agenda, while focusing on poverty pace of the international economy as it recovers eradication and promotion of common from the recent economic and financial global development, should attach great importance to crisis. Emerging market economies and addressing the inequality and disparity between developing countries continue to contribute the North and the South and build a renewed significantly to global growth and will do so in the global development partnership of win-win years to come. cooperation. The Ministers pledged to strengthen 25. The Ministers welcomed the successful coordination and cooperation in the inter- conclusion of the 6th BRICS Summit, particularly governmental negotiating process. the signing of the Agreement on the New 22. The Ministers called on the international Development Bank and the Treaty for the community to actively implement the follow-up Establishment of a BRICS Contingent Reserve process of the 2012 United Nations Conference on Arrangement. They agreed to build a closer Sustainable Development in accordance with the economic partnership in keeping with the BRICS principle of “common but differentiated spirit of openness, inclusiveness and mutually responsibilities”. They welcomed the adoption by beneficial cooperation to facilitate the market the UN General Assembly of the proposal of the i n t e r - l i n k a g e s , f i n a n c i a l i n t e g ra t i o n , Open Working Group on Sustainable infrastructure connectivity as well as people-to- Development Goals as the main basis for people contacts, cultural and educational integrating the SDGs into the Post-2015 exchanges among BRICS countries. The Ministers Development Agenda. They held the view that in welcomed the decision taken by the Fortaleza promoting sustainable development, the Summit on opening negotiations on the Draft international community should fully respect the Strategy of Multilateral Economic Cooperation national conditions and development paths of and Framework of BRICS Closer Economic different countries, and focus on helping Partnership. China and India expressed their full developing countries solve the problems of support to Russia for a successful 7th summit of financing, technology and capacity building and the BRICS leaders in July 2015. achieve common development. 26. The Ministers highly valued the fruitful 23. The Ministers reiterated the importance achievements of the 22nd APEC Economic attached by the three countries to the issue of Leaders’ Meeting, including launching the process climate change, and expressed their readiness to of Free Trade Area of the Asia-Pacific (FTAAP), work together to further strengthen international promoting innovative development, economic cooperation to address climate change and its reform and growth and enhancing connectivity of adverse effect. The Ministers welcomed the the Asia-Pacific. They commended China’s efforts adoption of the “Lima Call for Climate Action” by in making the conference a full success and the 20th United Nations Framework Convention deemed that the Meeting is of great significance in on Climate Change (UNFCCC) Conference of the achieving long-term development and common Parties (COP20). They expressed confidence that prosperity of the Asia-Pacific region. the 21st session of UNFCCC to be held in 2015 will Acknowledging India’s important role in driving be able to adopt a protocol, another legal global economic growth, and supporting the instrument or an agreed outcome with legal force openness of APEC, China and Russia would under the Convention applicable to all parties, in welcome India’s participation in APEC. accordance with the principles of equity, common 27. The Ministers stressed the importance of but differentiated responsibilities and respective regional connectivities, which will inject strong capabilities. impetus in enhancing political mutual trust, 24. The Ministers noted that collectively economic cooperation, and promoting cultural BRICS economies have consolidated their News From China February 2015 China India Relations 17 and people-to-people exchanges. In this context, and prevent the spread of the Ebola. They they discussed initiatives, including China’s supported the leading and coordinating role of initiatives of the Silk Road Economic Belt and the the United Nations and the World Health 21st Century Maritime Silk Road. They welcomed Organization in combating the disease. The synergy of various initiatives to improve regional Ministers called on the international connectivity in Asia. They emphasized the community, with a long-term prospective to necessity to explore all connectivity options for help African countries strengthen their public greater economic integration of the common health system and capacity building. region and stressed that the three countries will 29. The Foreign Minister of the Russian closely coordinate and work together to ensure Federation and the External Affairs Minister of the that various initiatives bear fruit and benefit all Republic of India extended their warm countries and people in the region. appreciation and sincere gratitude to the Foreign 28. The Ministers expressed their deep Minister of the People’s Republic of China for concern over the spread of the Ebola virus in hosting and making excellent arrangements for some African countries and the damage it the meeting in Beijing. caused to the health and safety of the local 30. The Ministers decided to hold the next people. They decided to continue to work hand trilateral meeting in Russia in the second half of in hand in helping the African countries curb 2015.

Media to Play More Positive Role in Boosting China-India Ties

Mr. Jiang Jianguo, Director of the State Council Information Office (SCIO) of China, addresses the opening ceremony of the 2nd China-India Media Forum. 18 China India Relations News From China February 2015

Beijing, Feb.1 (Xinhua) — Chinese and Indian China-India relations have seen overall media should expand new channels of development in recent years. In addition to communication and collaboration to encourage growing economic ties in collaboration of railway trust and reduce suspicions, a Chinese official said projects and industrial parks, considerable at the 2nd China-India Media Forum held in progress was also made in establishing and Beijing on Sunday. expanding defence contacts and exchanges, Jiang Jianguo, director of the State Council including across the border, said Sushma Swaraj, Information Office (SCIO) of China, said at the Indian External Affairs Minister, during her opening ceremony of the forum that Indian and speech at the opening ceremony of forum. Chinese media organizations should increase the Swaraj said she expect to strengthen people- exchanges of journalists, articles, and story ideas to-people contacts, including contacts between as well as carrying out more joint interview and scholars and journalists of the two countries, as a opening more youth exchange programs for result of the increasingly closer link between India media talents. and China. “Media organizations of the two countries This year marks the Visit India Year in China should not simply appeal to nationalist sentiment while the year of 2016 will be the Visit China Year or hype those eye-catching negative topics.” Jiang in India. More tourists from the two countries are said. “Instead, they should keep in mind the expected to visit each other. mainstream direction of China-India ties, which is “This is the most appropriate opportunity to characterized by friendly cooperation, accurate boost our ties” , Swaraj said. and objective reporting while reducing She also proposed a six-point “ABCDEF” misunderstandings and suspicions.” template to build bilateral relationship and realize

Ms. Sushma Swaraj, Indian External Affairs Minister, makes a speech at the opening ceremony of the 2nd China-India Media Forum. News From China February 2015 China India Relations 19 the dream of an “Asian Century” , namely A- boosting economic cooperation, as well as the Action-oriented approach, B-Broad-base bilateral potential of cooperation in new media. engagement, C-Convergence on common regional They agreed that media in the two countries and global interests, D-Develop new areas of bears social and historical responsibilities. Thus, cooperation, E-Expand strategic communication, instead of hyping border conflicts and “zero-sum” and F-Fulfill common aspiration to usher “Asian game between two emerging economies, news Century.” organizations in the two countries should The forum, jointly hosted by the SCIO of China enhance direct communication and mutual and the Ministry of External Affairs (MEA) of understanding so as to promote win-win India, attracted more than 120 participants, cooperation. including delegates from some 40 leading Chinese As a platform to encourage face-to-face and Indian media organizations as well as dialogue between media organizations of the two scholars and government officials from both countries and build understanding of each others’ countries. societies, the first forum was held in New Delhi, Delegates discussed the role media plays in India, in September 2013. promoting bilateral strategic partnership,

Impression with and Reflection on China-India Relations

(Chinese Ambassador to India Mr. Le Yucheng's Speech in Jawaharlal Nehru University) 05/02/2015 20 China India Relations News From China February 2015

Respectable Mr. Sopori, Vice Chancellor of picture of shared dream of friendship and Jawaharlal Nehru University, development. Ladies, Gentlemen and Friends! President Xi Jinping and Madam Peng Liyuan Namaste! met and mingled with the people of India. Upon I am very delighted to meet with you at their arrival in Gujarat, hundreds of thousands of renowned Jawaharlal Nehru University. I have local residents lined the streets where the been in India for more than 4 months. It is not a motorcade passed. Their warm smiles, applauses long time, but I had extensive contacts with and greetings deeply touched President Xi, every friends from all walks of life in India. Besides member of the Chinese delegation and 1.3 billion Delhi, I visited Ahmedabad in Gujarat, Mumbai in Chinese people. During her visit to the Tagore Maharashtra and Jaipur in Rajasthan. By watching International School, Madam Peng sang Chinese Indian TV and reading Indian newspaper song together with the local students. One of the everyday, I have integrated myself into Indian life boys who were kissed by Madam Peng on the and begin to enjoy it. During this period, many cheek became well-known and received vivid and touching stories inspire me to think numerous interviews after that. about India and China-India relations, which I This visit opened a new chapter of the China- would like to share with you on this occasion. India relations, sent to the world a positive signal 1. I am a very lucky ambassador. Just one week that China and India, two major neighboring after assuming my new post in India, I had the countries, would be sincere to and trust in each privilege of welcoming President Xi Jinping to pay other and join hands in cooperation. I am lucky to state visit to India last September. It has been 8 experience and witness this historical event. I am years since President of China visited India last fully confident about the future of our bilateral time. President Xi was also the first Head of State relations. Currently, relevant authorities of our of a major country whom the new Government of two countries are proactively implementing the India received at that time. This visit put new outcomes of this visit. The year of 2015 marks the impetus into the all-round cooperation between 65th Anniversary of establishment of the China- China and India, and pushed the China-India India diplomatic relations. It is also the “Visit India Strategic and Cooperative Partnership to a new Year” in China. Prime Minister Modi will pay an height. official visit to China this year. This visit will be a As a member of the delegation, I participated significant event and will inject new vigor to the in all engagements of the visit and witnessed the development of China-India relations. close interaction between the two leaders, which 2. The friendship between China and India is deeply impressed me. The chemistry was not only reflected by the close interaction between apparent as Prime Minister Modi in a rare gesture our leaders and at the official level, but also welcomed President Xi at Gujarat, his home state. flourishes in people-to-people exchanges. Let me In Gujarat, the two leaders wore Indian traditional share with you a story of “blood transmission Khadi jackets, visited Sabarmati Ashram, strolled between Chinese people and Indian people” along the Riverfront Park, swung on the typical reported by Chinese newspapers and websites. At Gujarati Jhoola, enjoyed the folk performances the end of last year, a little girl in Zhejiang Province and shared birthday cake in an amicable in eastern China needed blood transmission. More atmosphere. One of many impressive moments than 100 Indian merchants there volunteered to was vividly captured by local and world media donate blood for her. And in 2013, more than 80 when President Xi tried his hands on a legendry Chinese people in Zhejiang Province were actively Charkha with Prime Minister Modi by his side at involved in a voluntary blood donation campaign Sabarmati Ashram. It has become the symbol of initiated by the local Chinese authority to save an their mutual bonding, and the resolve that the two Indian patient in emergency care. This kind of neighbors will pick up the threads of our ties, and reciprocal sacrifice among the common folks of join hands in weaving them into a beautiful our two countries serves as the best example of News From China February 2015 China India Relations 21 friendship between China and India. only a few Chinese tourists there. This year is the From a historical perspective, China and India “Visit India Year” in China and next year will be are two major neighbors with the longest mutual “Visit Chinese Year” in India. We are facing contact and deepest mutual influence. The story unprecedented opportunities in the bilateral of Xuan Zang, an eminent Chinese buddhist monk tourism cooperation. I hope and believe that with who came to India to learn Buddhist scriptures in joint efforts by the two sides, the number of the 7th century is a legendary name in China and visitors between our two countries will India. Based on his epic adventures, a classic remarkably grow. literature entitled Journey to the West is well-read 3. Talking about the China-India cooperation, I in China. Another well-known and much- would like to share the story of Jack Ma with you. respected name in China is Doctor Kotnis, a doctor Mr. Ma is the main founder of Alibaba, newly-listed of the five-member Indian Medical Mission to at the New York Stock Exchange. During his visit to China. He sacrificed his life by supporting the India last year, he mentioned in an interview that Chinese people in the War of Resistance against Alibaba has had business-to-business Japan. relationship with Indian vendors for 15 years. To enhance the traditional friendship 400,000 Chinese customers are buying tea and between our two peoples, President Xi announced spices from India through Alibaba and around 1.3 during his visit that China would open a new route million Indian vendors are doing business via for the Yatra through Nathu La Pass. Elaborate Alibaba platforms. This story reflects that the preparations have been undertaken by the companies of our two countries have a solid relevant authorities of China. The two sides have business foundation and the development of reached preliminary consensus that the new Chinese companies also provides the opportunity route will be opened this summer. In a few for the Indian businessmen. Huawei, a Chinese months, the Indian pilgrimage will be blessed telecom company, is a living example of Chinese with more convenient transportation to Mount investment to India. Huawei, one of Global 500 Kailash and Manasarovar. This is another great companies with business covering more than 170 deed to facilitate the friendly exchanges between countries, has already created more than 5,000 our two peoples. jobs in India at present. Its R&D Center with 2000- The current number of visitors between China plus posts will operate next month in Bangalore. and India is only 800,000, a very small number The story of Huawei tells us that Chinese compared with our combined population of 2.5 companies brought great vitality and billion. Huge potential remains to be tapped. opportunities to Indian economy and China-India Visitors between China and other foreign economic and commercial cooperation has great countries of much less population than India have potential. already reached one million and even ten million. In 2014, China-India bilateral trade registered I have visited a lot of places of interest in many another breakthrough of US$ 70 billion with countries. All of them are full of Chinese tourists. A growth of Chinese investment to India. President lot of countries are working hard to attract Xi announced during his visit to India that the Chinese tourists by providing Chinese-language Chinese side would endeavor to realize an tour guides, setting up Mandarin marks and investment of US$20 billion in India in the next 5 accepting Chinese yuan at their shops. Last years in various industrial and infrastructure November, President Obama announced to development projects. China now is building two provide multiple-entry visa with maximum industrial parks in Gujarat and Maharashtra, validity of 10 years for Chinese tourists and including a US$1.8 billion investment plan to businessmen during his visit to China. Chinese power equipments. tourists were more and more welcomed by other It is progressing smoothly regarding railway countries. Yet when I visited Mumbai and cooperation between our two countries in Aurangabad days ago, I felt regretted to have seen increasing speed on the existing railway lines, 22 China India Relations News From China February 2015

h e a v y - h a u l t r a n s p o r t a t i o n t r a i n i n g , contributes to contemporary times and brings redevelopment of existing railway stations and benefits for future centuries. This strategic establishment of a railway university in India. The concept has been well acclaimed and warmly first batch of the high-level Indian officials has welcomed by the international community and been to China to receive training in heavy haul. currently has comes to a stage for pragmatic China and India will consider jointly building a cooperation with positive response and high-speed railway from Delhi to Chennai in the participation of more than 50 countries along the future and the feasibility study has been initiated. belt and the road. When finished, it will be the second longest high- In order to provide financial support for the speed railway after the Beijing-Guangzhou high- “One Belt and One Road” strategy, China has taken speed railway. By then, the travel time from Delhi the initiative in establishing the Asian to Chennai will be cut from 28 hours to 7-8 hours. Infrastructure Investment Bank (AIIB) and It means that passengers will be able to have announced to contribute US$40 billion to set up a breakfast in Delhi and drink high tea in Chennai on Silk Road Fund. As an important country along the the same afternoon. belt and the road, India is an important member of The new initiatives of the Government of India AIIB and New Development Bank of BRICS such as “Make in India”, “Digital India” and Smart countries. We believe that the “One Belt and One City have inspired great enthusiasm of Chinese Road” will definitely create more opportunities companies to invest in India. With more and more for India’s development. The BCIM Economic Chinese companies visiting India to make market Corridor is an important part of the “One Belt and research, the Chinese embassy has received lots of One Road”. We welcome India to actively consulting phone calls from Chinese companies participate in building this Economic Corridor and every day. We hope the companies of our two promote the “One Belt and One Road” countries could seize the opportunities and cooperation, which will benefit our two peoples promote economic and commercial cooperation and the region at large. to a new level. 5. In the past four month, I had a strong feeling 4. Recently, I have noticed that there were that the vigor of India’s economy and social some comments on “One Belt and One Road” development are being reactivated in an all-round when reading Indian newspapers. I would like to manner since Prime Minister Modi introduced the take some time to brief on it. “One Belt and One new policy. What I see now, is a blooming, young Road” was initiated by President Xi during his visit and vigorous country. to Kazakhstan in September and to Indonesia in A few days ago, my colleagues in the Embassy October 2013. told me that they were very surprised to find the At that time, I was Ambassador of China to efficiency of the Delhi Municipal Department has Kazakhstan and witnessed that moment. The drastically improved. Usually, it took half month or strategic concept of “One Belt and One Road” aims even one month to obtain an approval to install a to provide wings for the soaring of Asia and to new LNG pipeline in our Embassy. Now it takes provide an open and inclusive platform for the only 3 days! And some friends in the Ministry of development and cooperation of countries along External Affairs and Ministry of Commerce and the belt and the road. It aims to connect the Asia- Industry told me now they have to punch in before Pacific economic circle and European economic work and often work overtime. Even in New Year’s circle through policy coordination, road Day there was no break. Work is hard, but they are connection, unimpeded trade, monetary more confident and energetic. They are circulation and mutual understanding between supporters and fans of Prime Minister Modi, and peoples, to realize mutually beneficial win-win they are greatly influenced and encouraged by cooperation and create benefits for peoples along Modi’s style and speed. the belt and the road. In this sense, the “One Belt During my visit to Maharashtra days ago, Chief and One Road” is a magnificent project which Minister Fadnavis told me that Maharashtra is News From China February 2015 China India Relations 23 making efforts to create a more pro-business economic prospects. I think the overall situation of environment for foreign companies by providing Chinese economy is stable and improved. After 30 them with optional-menu and single-window years of rapid development, China’s economy has services to cut administrative clearance from 2-3 been ranked second in the world, it is unrealistic to years to 2-3 months. Meanwhile, I also find that maintain double-digit growth. From high-speed the Swachh Bharat Abhiyan has made obvious growth to medium high-speed growth, the difference in India. To be frank, some places in Chinese economy has come to a stage of “New India did impress Chinese people with dirtiness, Normal”. China’s development must transfer from mess and disorder in the past. However, today’s a low level to a high level. To this end, now China is India is quite different. Now I see the streets in transforming the economic development mode, Delhi are much cleaner than before, and the adjusting the economic structure and promoting cartoon ads of Swachh Bharat are posted in almost industrial restructuring and upgrading. China’s every corner of Delhi. I took many pictures in reform and development will provide more Mumbai and uploaded them onto Weibo, the opportunities for the cooperation between China Chinese Twitter. My friends are all amazed at the and India. new change in India. Just as President Xi and Prime Minister Modi Recently, I have read a Chinese-versioned said, China and India are “two bodies with one biography about Prime Minister Modi, which tells spirit” and “When China and India speak with one a legendary story about how a tea-seller became a voice, the whole world will notice”, we would like Prime Minister. I can’t help admiring his to join hands with India and work together. I outstanding talent and far-sightedness after believe, once the Chinese Dream and the Indian reading it. I believe that, under the leadership of Dream are connected and integrated with each Prime Minister Modi, India will achieve new other, it will generate great positive energy. China greater progress and realize the dream of national and India will lead the economic growth in the rejuvenation. region and achieve common development and 6. I learn that some Indian friends are prosperity in Asia and realize the Asian Century concerned about the 7.4% growth of China’s GDP together. in 2014. And there are different views on China’s Dhanyavad!

Ambassador Le Yucheng's Interview with Deccan Herald

Chinese Ambassador to India Mr. Le Yucheng President Xi was also the first head of state of a visited the headquarter of Indian English major country to visit India after the formation of Newspaper Deccan Herald on February 4, 2015. a new government. President Xi not only took out The Newspaper published the interview to the time from his extremely busy schedule to visit Ambassador the second day. The full text is as India but also stayed there for three days; this follows: clearly shows that China attaches immense How do you view President Xi Jinping’s importance to its relations with India. visit to India last year and its significance in The leaders of our two countries reached taking the China-India Relations to new consensus on building China-India closer heights? partnership for development, charted out a Chinese President Xi Jinping paid a state visit blueprint for development of our bilateral to India last September. This was the second state relations in the next five-ten years and opened up visit by a Chinese President to India in the span of a new chapter for our relationship. During his first eight years. stop at Ahmedabad, Gujarat, President Xi tried his 24 China India Relations News From China February 2015

hands on a legendry Charkha, enjoyed a swing in a between China and India. Right now the two sides traditional Gujarati “jhoola” and celebrated Prime are stepping up efforts to implement the outcomes Minister Narendra Modi’s birthday. of President Xi’s visit while preparing for a new The two leaders established a personal round of high-level visits. We are working hard to friendship through close interactions. The scene expand our bilateral pragmatic cooperation in of thousands of people lining the streets of order to inject new vitality into the development Ahmedabad to welcome President Xi gave me a of our bilateral relations. long lasting impression and is still vivid in my Amity between people holds the key to the mind. Having had the rare privilege of being sound relations between countries. This year is appointed the Chinese Ambassador to India on being observed as the “Visit India Year” in China. the eve of President Xi’s visit, I have witnessed a Sushma Swaraj, Indian External Affairs Minister rapid growth in China-India relations since the has visited China and launched the “Visit India visit. Year”. The Indian government will organize a Nearly every sphere, including official series of tourism promotion activities in China to contacts, local exchanges and civil interactions, is expand personnel exchanges between our two showing an upward trend. I receive various countries. Chinese delegations visiting India almost every China is ready to cooperate with India to day. They not only visit the capital New Delhi, but promote greater development of the China-India also travel to Mumbai, Kolkata, Jaipur and other relations in order to take them to an even higher places. One can say that, President Xi’s visit to level. I look forward to the prospects of the China- India has ushered the bilateral relations in a boom India relations with expectation and confidence. era and took it to an important historical stage. How do you view External Affairs Minister The year 2015 marks the 65th anniversary of Sushma Swaraj’s recent visit and proposed the establishment of diplomatic relations forthcoming visit of Prime Minister Narendra News From China February 2015 China India Relations 25

Modi to China? railway, credit and leasing, with cumulative Just a couple of days ago, Sushma Swaraj, amount of investment and financing of 13 billion External Affairs Minister of India, paid an official US dollars. visit to China. This visit was her first visit to China Meanwhile, Chinese companies like Huawei, since assuming the office last year, to which both Alibaba, Xiaomi are increasing their investments sides attached great importance. in India. I remember what Prime Minister Modi During the visit, Chinese Foreign Minister told investors: “There is no red tape but only red Wang Yi have had an in-depth exchange of views carpet in India.” Chinese entrepreneurs see huge with her on topics such as bilateral high-level opportunity in India and are scrambling to walk visits, pragmatic cooperation, cultural exchanges on India’s red carpet. and issues of common interests and both sides Indian entrepreneurs are also optimistic reached a lot of consensuses. It is particularly about Chinese market. An Indian friend from West worth mentioning that both sides have agreed Bengal told me that it equally takes 2 hours by upon a package plan about the Yatra to the Tibet flight from Kolkata to reach Kunming in China and Autonomous Region of China through Nathula Delhi. It is very convenient for scores of Indian Pass. companies to do business with their Chinese

We hope that this summer the first group of counterparts. I am full of confidence for the future Indian pilgrimages will go through the new route economic and trade cooperation between China to Kailash Manasarovar. Indian Prime Minister and India.

Narendra Modi’s visit to China this year is of great I came to know that Indian Media and Indian importance in our bilateral relations. The two people are keen to know the setting up of the two sides are now in preparation for this visit. We Chinese industrial parks. Here I would like to give hope the success of this visit will a( brief introduction. During bring China-India Relations to a C h i n a i s r e a d y t o President Xi’s visit to India last new level. cooperate with India to September, China Beiqi Foton Could you please give us an p r o m o t e g r e a t e r Motor Corporation Limited and update on the progress in development of the the Maharashtra Industrial implementation of the MoUs China-India relations in Development Corporation and agreements inked by India order to take them to an signed an MoU on supporting and China during President Xi the setting up of Chinese even higher level. Jinping’s visit in September, ( industrial park in Pune, p a r t i c u l a rly o n C h i n e s e Maharashtra. investment of US $ 20 billion in India over five The total investment will be 5 billion US years and setting up Chinese industrial parks dollars in three phases by 2030. It is estimated to in Gujarat and Maharashtra? create one lakh jobs and an annual output of 20 It is one of our major tasks to realize the 20 billion US dollars. As of now, China has laid out billion USD investments over the next five years in 100 million US dollars initial investment and 20% India which were announced during Chinese of the land acquisition program has been President Xi Jinping’s visit to India last September. completed. Similarly, China Development Bank In order to reach this figure China needs to invest signed an MoU with the Industrial Extension 4 billion USD annually on average. Bureau of Gujarat to set up a Chinese industrial It is not a hard task for China when seen in the park in Vadodara, Gujarat focusing on light that China’s annual overseas investment is manufacturing electrical equipment. above 100 billion US dollars. As we know, during The total investment will reach 1.8 billion US President Xi’s visit to India, China and India signed dollars by 2025. It will directly create 10,000 jobs 12 agreements on trade and economic and 40,000 jobs indirectly, with an annual output cooperation, covering fields like industrial parks, value of 5.2 billion US dollars. China has already 26 China India Relations News From China February 2015

made an initial investment of 150 million US established sister city relationship in 2013, thus dollars and 28% of the land acquisition plan has adding a new impetus to the local investment been finished. The first phase of a transformer between the two countries. plant has also been put into operation. As far as I know, the world famous Indian We hope that on the Indian side, respective multinational IT consulting and System state governments will provide as much support Integration services company Wipro, which is as possible for the development and construction headquartered in Bengaluru, has established its of the two industrial parks by offering preferential Strategic R&D Center in Chengdu with a focused policies and creating infrastructure facilities in a research on mobile phone operating system. timely manner. Meanwhile, Huawei, a Chinese high-tech company Could you please share with us the present has just established its biggest R&D center scenario of China’s economic engagement in overseas in Bengaluru. Bengaluru and rest of Karnataka and South The two companies are leaders in their India? How is China planning to augment respective fields. They have also worked closely. investment and economic engagement with Most of Huawei’s Android mobile phone operating southern States of India? What more do you systems are developed by Wipro in Chengdu, expect from the State Government to facilitate while Huawei mobile phones will be designed and Chinese investment in Karnataka? developed at Huawei’s Bengaluru R&D centre. My China’s economic cooperation with south visit to Bengaluru to attend the inauguration India is mainly taking place in Maharashtra, ceremony of Huawei’s R&D center also bears Karnataka and Tamil Nadu. Some representative witness to this model of the China-India projects such as the Chinese Industrial Park in investment cooperation. Pune which I previously mentioned, Huawei’s We encourage Chinese enterprises to carry new R&D center in Bengaluru and construction out a wide range of economic cooperation with and equipment supply of the thermal power Karnataka and the rest of India. We also look plants in Tamil Nadu amount to billions of dollars forward to the local governments for providing as in investment. much support as possible to the Chinese In addition, Chinese railway companies are enterprises on policy and information fronts, such keen to participate in the metro rail construction as the introduction about the upcoming tenders projects in Bengaluru, Chennai, Hyderabad and related to infrastructure and investment projects, other major cities in south India. and appointment of a special official for the The Chinese companies are choosing these Chinese enterprises to coordinate on a series of south Indian states as investment destinations problems like land acquisition, tax and labor due to their comprehensive business encountered during the course of investment. environment, which include the initiative of local How do China and Chinese companies view government to attract foreign investment, the Prime Minister Modi’s ‘Make in India’ transparency and efficiency of administrative campaign? Is it likely to intensify competition examination and approval, the convenience of between India and China? Or, can China land and taxation policies, the quality of contribute to this Make-in-India campaign? supporting infrastructure and the development China and Chinese companies are glad to see level of downstream and upstream industries. the “Make in India” campaign launched by Indian Not long ago, I read a news report that Prime Minister, and believe that it is an effective Bengaluru received US$ 2.6 billion in venture strategy to ensure rapid recovery of Indian capital in 2014 and came in fifth in a list of cities economy. globally. This attests to the growing attention When I met with Amitabh Kant, Secretary, being bestowed on Bengaluru by the global Department of Industrial Policy & Promotion and investors. It is worth mentioning that Chengdu of in-charge of this campaign, I told him that the Sichuan Province, China and Bengaluru Chinese government will guide and encourage the News From China February 2015 China India Relations 27

Chinese enterprises to actively participate in the Minister Modi towards good governance, reform development of India’s manufacturing and and development. I can myself experience the infrastructure sectors. rapid changes which are happening. China started the policy of reform and I have just been to the financial center of India opening up in 1980s and following the rapid Mumbai, now I have come to the “Silicon Valley of development of its manufacturing industry has India” Bengaluru, both are so full of vigor and become “the world’s factory”. Objectively vitality nowadays that the new look of India’s speaking, China and India are at different stages of development and reform is already visible. development in the manufacturing sector. China sees India as one of the most important China’s economic development has entered a neighboring partners, and attaches great “new normal” state, mainly marked by mid-to- importance to bilateral cooperation. China and high-speed growth instead of high-speed growth India are two largest developing countries and in the past. China’s current goal is to focus on emerging markets in the world, with a huge improving the quality and efficiency of the population of over 2.5 billion. economic development, keep the economic Both countries are going through the crucial operation within a reasonable area, and put the stage of national revival and facing the arduous transformation of the economic development task of ensuring overall development. However, model and adjustment of the economic structure the potential for bilateral cooperation has not in a more important position. been properly explored and our bilateral trade Thus, in the coming period, “Made in China” and investment volumes are not commensurate and “Make in India” will not form fierce with the sizes of our respective economies. Both competition in the international market. China and India need to join hands and work On the contrary, we believe that the “Make in together to realize the untapped potential to bring India” campaign will bring opportunities for tangible benefits to the people of our two expanding economic and trade cooperation countries. between China and India. China has capital, Chinese companies are actively “going global”. technology, equipment and sophisticated They are the main force to unleash the potential in manufacturing management experience. China-India cooperation. I came to know that they We hope to make full use of the “Make in India” are looking forward to changes of India’s campaign to expand the Chinese investment in investment environment in three major aspects. India. On the other hand, only with the First is the visa problem. As of now, most of the development of India’s manufacturing industry Chinese businessmen coming to India can only get and the growth of Chinese investment in India can single entry visas with the duration of 90 days. The we fundamentally bring down the trade deficit conditions for issuing work visa to skilled workers and balance the bilateral trade. are also very strict. How do you view Prime Minister Modi’s These not only bring inconvenience but also endeavours for economic stall the expansion of Chinese reforms and his efforts to C h i n a a n d C h i n e s e enterprises’ investment in India. We make the government’s policy companies are glad to see really hope that in the light of the friendly to investors? What the “Make in India” cam- favorable visa policies adopted by more do you think Indian paign launched by Indian some of the other countries towards G ove r n m e n t c a n d o t o the Chinese enterprises, the Indian encourage Chinese companies Prime Minister, and believe government can also relax its visa to invest in India? that it is an effective restrictions. In the last four months, I strategy to ensure rapid Second is the security review. have witnessed various steps r e c o v e r y o f I n d i a n Chinese companies are willing to taken by the Indian government economy. join the construction of large-scale under the leadership of Prime infrastructure projects in India. We 28 China India Relations News From China February 2015

do have considerable advantages in the spheres of Delhi and Gujarat. capital, technology, cost and construction China will also participate in the Bharat Rang experience, which are in line with the actual Mahotsav in Delhi and the Indian Arts Festival in demand of India. But we often end up hitting the Bengaluru. Secondly, both sides are going to wall of security review. strengthen youth exchanges. The number of I wish the Indian government provides equal annual youth visits will be expanded from 100 to opportunities to the Chinese companies to 200 in the following five years. Thirdly, China and participate in a fair competition with the win-win India will increase cooperation in the fields of film spirit of mutual benefit. and television. We will hold film festivals in each Third is the improvement of the business other’s country. environment, which include providing favorable Last year, China participated, as the ‘Special policies towards foreign investment, improving Guest Country’, in the International Film Festival the transparency and efficiency of the of India, Goa. We will invite India as the guest administrative examination and approval, country to participate in China’s film festival this expanding the scope of the policy of one-stop year. Co-production of films by the two sides is approval, simplifying and improving the policies also in the pipeline. I am a big fan of Bollywood of land acquisition, labor and tax, and improving movies. From ‘Caravan’ to ‘Three Idiots’, I am infrastructure support such as water, electricity strongly touched by the charm of Indian movies. and waste disposal. Finally, China and India will promote How can India and China boost people-to- academic, publishing and educational exchanges. people ties between the two great We will speed up the project on mutual translation civilizations? of the classical and contemporary literary works. China and India are two ancient civilizations China will be the Guest of Honour Country at the with more than 2000 years of friendly exchanges. New Delhi World Book Fair 2016. There are 22 The story of Xuan Zang (600-664), an eminent Chinese teachers teaching mandarin, calligraphy Chinese monk who came to India in search of and dance in primary and secondary schools all Buddhist scriptures and stayed in India for 14 over India. years during the Tang Dynasty (618-907) is a And we are ready to send more. I was once household name in China and India. invited by my counterpart Ashok Kantha, Indian Last year was the ‘Year of China-India Friendly Ambassador to China, to an Indian Culture Festival Exchanges’. The two countries held a series of in China. The Indian dance performances by a colorful activities which impressed the two group of Chinese teenagers are so wonderful that I peoples deeply. This year is the “Visit India Year” initially mistook them as Indians. Yoga is also very in China. I believe the number of tourists between popular in China. I wish to see further deepening two countries will rise further. I have just been to of the cultural exchanges between our two Aurangabad and visited Ajanta and Ellora Caves. countries, so that there will also be more and more A viewer is invariably overwhelmed by the Indian youth demonstrating their skills in Chinese beauty of these centuries old ancient treasures. Kongfu and calligraphy. India also has Buddhist shrines like Bodhgaya. President Xi and Prime Minister Modi “Incredible India” is very attractive for Chinese agreed to rebalance bilateral trade. Could you tourists. please share with us the measures taken so far In order to expand our people-to-people to address the issue of trade imbalance? contacts, the two governments will launch The China’s Central Economic Work Conference China-India Cultural Exchanges Plan this year. last year clearly pointed out that China is pursuing Firstly, the two countries will expand artistic a rough balance of international payments by exchange. We will celebrate the 2015 ‘Happy promoting the balance between domestic demand Chinese New Year’ by inviting well-known and external demand, between import and export Guangzhou Acrobatic Troupe to perform in New and between foreign investment in China and News From China February 2015 China India Relations 29

Chinese investment overseas. proposed BCIM economic corridor? The Chinese side always prefers trade to be China and India are each other’s important balanced, not imbalanced. China takes the Indian neighbours, two major developing countries and concern of trade imbalance very seriously. new emerging markets, and two mainstays in the Although the main reason of our trade imbalance process of world multi-polarization. Both the is the difference of industrial structures between countries are undergoing the great historical our two countries, we are willing to provide process of national rejuvenation. opportunities to increase India’s exports to China. The harmonious coexistence, peaceful Since 2008, the Ministry of Commerce of development and cooperative win-win of the China has sent 6 trade promotion delegations to Chinese dragon and the Indian elephant will not boost import from India. At the 6th Trade only deliver benefits to the 2.5 billion people of the Promotion Matching Session during President two countries, but also bring prosperity to the Xi’s visit to India, entrepreneurs of the two developing countries, and will have far-reaching countries signed Indian products procurement influence over the region and beyond. In this contracts of 780 million US dollars. We are also sense, China’s “21st Century Maritime Silk Road” preparing to send more procurement missions to initiative and India’s “Act East” policy can be linked India and expand import from India this year. up together so as to contribute more to the peace Besides, China warmly welcomes Indian and prosperity of Asia and the world. companies to expand trade with China through various effective trading platforms, such as China- Bangladesh-China-India-Myanmar (BCIM) South Asia Expo and China Import and Export Fair Economic Corridor is an important part of the (Canton Fair). In order to increase the popularity “21st Century Maritime Silk Road” initiative. It of the Indian products, China also welcomes provides a significant platform for the economic various Indian chambers of commerce to hold development and cooperation to the countries of product promotion events in China. the region and also serves the development of the Solving the problem of trade imbalance Indian economy. requires joint efforts from both sides. On the other Currently, the BCIM Economic Corridor is hand, we also need to recognize the upward trend progressing well, the third working group meeting of overall China-India trade. The bilateral trade will be held in India this year. China is willing to volume has increased by 320 times in the last 10 work together with all parties, including India, to years. jointly promote the construction of BCIM China hopes that India would ease Economic Corridor, regional integration and restrictions on exporting its competitive products economic development. such as iron ore to China, reduce tariffs and Has there been any progress in discussion encourage Indian companies to export more on the boundary issue after President Xi’s visit agriculture products. I believe that with the to India? When can we expect the Special development of the Indian manufacturing Representatives to hold the next round of talks industry and the improvement in international on boundary issue? Can any progress be competitiveness of its products, India’s trade expected towards demarcating the Line of deficit with China will decline. Actual Control to avert untoward incidents, How does China view new Indian when New Delhi and Beijing continue to Government’s ‘Act East’ policy, as well as its discuss the boundary issue? renewed focus on engagements in its The boundary issue is a historical burden left neighbourhood and, at the same time, New by the western colonists. Through years of efforts, Delhi’s unenthusiastic response to President China and India have signed the political Xi’s call for building a 21st Century Maritime parameters and guiding principles for the Silk Road and cautious approach to the settlement of the boundary issue. 30 China India Relations News From China February 2015

Now, the two sides are working on the basic infrastructure close to the Line of Actual framework of its solution through friendly Control between India and China, including in consultations. Both sides are keeping close Arunachal Pradesh? Japan has of late offered contact for the preparation of next round of talks India support to development projects in between the Special Representatives of China and North-East and New Delhi seems to have India on the Boundary Question. accepted the offer. How does China view this? China is ready to work with the Indian side to The China-India boundary has never been seek a fair, reasonable and mutually acceptable demarcated and there exists immense dispute in solution on the basis of the Five Principles of the eastern section of the China-India border. It is a Peaceful Co-existence and from the political well known fact as well as a basic consensus perspective of the overall bilateral relationship. between the two sides. Pending the final settlement, the two sides should Both sides have always agreed that the jointly safeguard peace and tranquility in border boundary issue should not affect the development areas and prevent the boundary issue from of bilateral relations. We are currently trying to holding up the overall development of bilateral find a fair, reasonable and mutually acceptable relations. solution through negotiations. Pending the final In recent years, the two sides have properly settlement of the boundary question, we hope that handled the boundary issues through friendly the Indian side will refrain from taking actions in consultations. In this process we have disputed areas that may complicate the question. accumulated rich experiences and reached China firmly opposes any unilateral move to multiple consensuses on how to maintain peace change the status quo in the disputed region, and and stability in this area. also opposes the intervention of a third party The two sides signed an agreement on border because this would complicate the dispute. China defense cooperation, set up regular meeting is willing to make joint efforts with India to take mechanism between the two army headquarters, forward the process of dispute resolution and adjacent military commands and border troops, control the dispute, to effectively maintain peace built additional border meeting points, and stability in the boundary areas, and to create established a hot line between army favorable conditions for a final settlement of the headquarters, made telecommunications boundary issue and development of China-Indian available between front-line border troops etc. A relations. code of conduct for border control is being You have already been in India for more discussed by the two sides right now. than 4 months. How is the experience of I would like to point out that the connotation working with the Indian government and of our bilateral relationship is not merely the people? boundary issue but far beyond it. As long as both I feel greatly honored to witness President Xi sides continue to draw wisdom from the two Jinping’s historic visit to India at the very ancient civilizations, keep sufficient foresight, beginning of my tenure. Participation in the courage and tolerance, and expand positive important milestone events in the development of aspects of bilateral mutually-beneficial China-India relations gave me a feeling of cooperation, China and India will be definitely immense proud. Just after I assumed my post, I able to find a way to resolve our differences, and paid a visit to President Pranab Mukherjee and continually push forward the development of our Prime Minister Modi. bilateral relations. In the following four months, I met with How does Beijing view the renewed efforts External Affairs Minister Sushma Swaraj and more by Prime Minister Narendra Modi’s than a dozen ministers and high level officials at Government to build civilian and defence the Ministry of Defence, Ministry of Finance, News From China February 2015 External Affairs 31

Ministry of Commerce and Industry, Ministry of prospects for bilateral cooperation. I am confident Railways, Ministry of Human Resources that if we could further connect our development Development and other government institutions. strategies and respective advantages, the impact I also visited Gujarat, Rajasthan and would be far-reaching. Maharashtra to interact and communicate with We would able to lead regional growth and Indian friends from all walks of life. I received promote development and prosperity in Asia. As warm hospitality of my India friends wherever I Chinese Ambassador to India, I feel a heavy visited, and deeply felt their heartfelt friendship responsibility, because there is still a lot of work to for China and the Chinese people. I’m deeply be done for achieving this great goal. encouraged and full of confidence on the future In order to promote the China-India development of the China-India relations. relations, I am willing to work together with my China and India are two large developing and Indian friends from all walks of life, and will do neighboring countries. Both take development as my best to take the bilateral cooperation to a new their biggest strategic goal and have broad level.

EXTERNAL AFFAIRS

Xi Jinping Holds Talks with Argentine President

Chinese President Xi Jinping (R) shakes hands with Argentine President Cristina Fernandez de Kirchner during their talks in Beijing, capital of China, Feb. 4, 2015. (Xinhua/Pang Xinglei) 32 External Affairs News From China February 2015

On February 4, 2015, President Xi Jinping held Monetary Fund (IMF), the G20, and the G77 plus talks with President Cristina Fernandez de China. Kirchner of Argentina at the Great Hall of the Cristina Fernandez de Kirchner expressed People. that China has become a vital driving force for Xi Jinping pointed out that I paid a successful world economy. Argentina pays high attention to state visit to Argentina last July, during which we deepening the comprehensive strategic together announced the establishment of China- partnership with China, and hopes bilateral Argentina comprehensive strategic partnership cooperation yield more fruitful results. Argentina and reached important consensus on enhancing is now advancing energy diversification, and the bilateral mutually beneficial and friendly Nestor Kirchner Hydropower Station and the cooperation in all fields. With the joint efforts of Jorge Saipan Nick Hydropower Station being both sides, our consensus is becoming a reality. constructed by both countries are Argentina’s The new results of bilateral mutually beneficial most important hydropower stations in history. and friendly cooperation have brought strong Argentina hopes to carry out nuclear power impetus to the development of bilateral relations. cooperation with China thus to use China’s nuclear I am more confident in the prospect of China- technology. Bilateral currency exchange Argentina relations. mechanism is very important to Argentina, and Xi Jinping stressed that both as important Argentina hopes to increase the exchange quota emerging markets, China and Argentina should and make RMB the major currency in trade strengthen exchanges and cooperation, share settlement between the two countries. Argentina development opportunities and jointly cope with welcomes China’s auto and telecommunication challenges. The two countries should intensify all- enterprises to establish factories in the country round exchanges, give full play to the planning and and is willing to see more Chinese products in the coordinating role of bilateral intergovernmental Argentine market, and welcomes Chinese standing committee, and well implement the joint enterprises to exploit mineral resources including action plan between the two governments; potassium and lithium in Argentina and also deepen practical cooperation, make the best of hopes China import more quality beef , fruits, mechanisms such as the strategic dialogue on vegetables and other products from the country. economic cooperation and coordination, and Argentina and China have always offered mutual push for the sustained, stable and in-depth support on issues regarding each other’s major development of bilateral mutually beneficial concerns. Argentina stands ready to boost cooperation; well construct existing key projects cooperation with China in such international such as railways and hydropower stations, and organizations as the UN and the World Trade actively carry out cooperation in such areas as Organization. infrastructure construction, agriculture, energy, Xi Jinping noted that to strengthen mineral and equipment manufacturing, with cooperation between China and Latin America nuclear power as the key in the next stage; boost will enrich the connotation of South-South exchanges in custom and quality control, promote cooperation and exert a positive international bilateral trade for healthy and stable growth, influence. China appreciates Argentina’s support continue enhancing financial cooperation, and for China-Latin America overall cooperation, and well implement the agreement on local currency will work with the Latin American side including exchange. China welcomes Argentine enterprises Argentina to advance China-Latin America to actively explore the Chinese market, and will comprehensive cooperative partnership and support Chinese enterprises to invest and develop better benefit both peoples by taking the first business in Argentina as always. China will ministerial meeting of the Forum between China strengthen coordination with Argentina in and the Community of Latin American and international organizations and multilateral Caribbean States (CELAC) as a new starting mechanisms such as the UN, the International point. News From China February 2015 External Affairs 33

Cristina Fernandez de Kirchner agreed to Xi efforts of both sides, bilateral relations will Jinping’s viewpoints on China-Latin America certainly ride the tide and move forward relations, and expressed that Argentina will constantly. continuously contribute to Latin America-China Cristina Fernandez de Kirchner said that the cooperation. establishment of Argentina-China comprehensive Following the talks, the two heads of state strategic partnership signifies the qualitative together signed and issued the Joint Statement on upgrading of bilateral relations. The signing of a Enhancing the Comprehensive Strategic series of cooperative documents between both Partnership Between the People’s Republic of sides today represents new outcome in bilateral China and the Argentine Republic. They also cooperation, which will push Argentina’s witnessed the signing of the cooperative economic and social development, enhance its documents covering politics, economy, trade, international competitiveness and further deepen finance, nuclear power, culture, health care, bilateral comprehensive cooperation. judicature, aviation, telecommunication, tourism Prior to the talks, Xi Jinping held a welcome and other areas. ceremony for Cristina Fernandez de Kirchner at The two heads of state together met the press. the North Hall of the Great Hall of the People. Vice Xi Jinping pointed out that President Cristina Chairwoman of the Standing Committee of China’s Fernandez de Kirchner and I had an in-depth and National People’s Congress Yan Junqi, State fruitful talk just now, reaching multiple important Councilor Yang Jiechi, Vice Chairman of the consensus. This year marks the beginning of the National Committee of the Chinese People’s China-Argentina comprehensive strategic Political Consultative Conference Zhang Qingli partnership, and I believe that under the joint and others were present.

Chinese Premier Li Keqiang (4th R) meets with Argentine President Cristina Fernandez de Kirchner (4th L) at the Great Hall of the People in Beijing, capital of China, Feb. 5, 2015.(Xinhua/Pang Xinglei) 34 External Affairs News From China February 2015

China, France Pledge to Boost "Strategic" Cooperation

Chinese President Xi Jinping (R) meets with French Prime Minister Manuel Valls in Beijing, capital of China, Jan. 30, 2015. (Xinhua/Yao Dawei)

Beijing, Jan. 30 (Xinhua) — Chinese President countries. Xi Jinping met with French Prime Minister Manuel The two sides should make use of their High- Valls in Beijing on Friday and they pledged to level Mechanism for Dialogue on People-to-People boost the “strategic” cooperation between the two Exchanges, especially to increase exchanges countries. between the youth of the two countries, said the Hailing the increasingly strategic significance president. of the China-France relationship, Xi said the two On international affairs, Xi said China will sides should make joint efforts to further advance support France’s efforts to host the United Nations bilateral ties in a stable way with more political climate change conference in France late this year “wisdom and willingness.” and that the two countries should join hands to The two sides should always respect each safeguard the outcomes of World War II as well as other’s core interests and major concerns and the post-war peace order, and to establish a new- firmly maintain the direction of the bilateral type of international relationship featuring win- relationship, Xi said, calling for “strategic win cooperation in the world. thinking” to deepen practical cooperation on With this year marking the 40th anniversary nuclear energy, aviation, finance and sustainable of diplomatic relations between China and development, and an open mind to establish a Europe, Xi said China and Europe face great closer community of interests between the two opportunities to develop their bilateral News From China February 2015 External Affairs 35 relationship. The French prime minister said he looks Xi hopes France will continue to play a forward to cooperation with China to address positive role in negotiations on investment deals, climate change and make the Paris climate change the feasibility study on free trade and an meeting a success. agreement to facilitate people-to-people visits Valls said France looks forward to closer between China and Europe. cooperation with China to fight terrorism. During their meeting at the Great Hall of the H e s a i d t h e w o r l d s h o u l d h o l d People, Valls said the French side attaches great commemorations to celebrate the 70th importance to ties with China and both sides are anniversary of the end of WWII this year to willing to boost their strategic cooperation in reaffirm their commitment to world peace and various fields. security. France hopes to cooperate with China on France will also make continued efforts to aviation, nuclear electricity, automobile, finance develop the China-Europe relationship, said the and other sectors, improve market entry and visiting prime minister. investment protection, and re-balance two-way trade through development, said the prime China, France vow to cement friendship as minister, also welcoming investors, students and anniversary celebrations conclude tourists from China. Beijing, Jan. 30 (Xinhua) — Chinese Premier Li France will also discuss international Keqiang and his French counterpart Manuel Valls cooperation with China outside of their home agreed to cement friendship and cooperation as countries, Valls said. year-long activities marking the 50th anniversary

Chinese Premier Li Keqiang (R) holds talks with French Prime Minister Manuel Valls at the Great Hall of the People in Beijing, capital of China, Jan. 29, 2015. (Xinhua/Yao Dawei) 36 External Affairs News From China February 2015

of China-France diplomatic ties concluded in and treat one another as equals, and cement win- Beijing. win cooperation, strategic trust and cultural The two leaders visited an exhibition of exchanges, said the Chinese premier. famous French sculptor Auguste Rodin in He called on both sides to cement friendship downtown Beijing to mark the end of the and make new contributions to maintaining celebrations. international and regional peace, and boosting Addressing the occasion, Li said the forging of development of humankind. diplomatic ties in 1964 had unveiled a new Applauding the smooth development of ties chapter for relations between the two great and vigorous cultural exchanges, Valls said those nations. celebration activities reflected the profound Hailing the progress of bilateral ties over the friendship between the two people. years, he said both countries had remarkable He expressed confidence for the future growth cooperation in politics, economy, culture and of France-China ties, adding there is huge global affairs in the past year. potential for bilateral cooperation. “We have held over 800 activities to celebrate A total of 139 original works of Rodin are on the 50th anniversary of ties, which have enhanced display at the National Museum of China from last mutual understanding and friendship between November to March 22 of 2015, including the two peoples and helped to consolidate a social sculptures “The Thinker”, “The Age of Bronze”, foundation for ties,” Li said. “Monument of Balzac” and “The Gates of Hell”. Under the new circumstances, China is ready Valls is visiting China from Jan. 29 to 31. This is to handle relations with France from a strategic his first China visit since taking office in March and long-term perspective, respect each other 2014.

Chinese Premier Li Keqiang's Address at World Economic Forum Annual Meeting

Chinese Premier Li Keqiang delivers a keynote speech at the World Economic Forum (WEF) annual meeting in Davos, Switzerland, on Jan. 21, 2015. (Xinhua/Liu Weibing) News From China February 2015 External Affairs 37

DAVOS, Switzerland, Jan. 22 (Xinhua) — problems can no longer be solved by clinging to Visiting Chinese Premier Li Keqiang delivered a the outdated mindset of confrontation, hatred and special address at the World Economic Forum isolation. Dialogue, consultation and cooperation annual meeting here Wednesday. must be explored to find solutions to new The following is the full text of Li’s address: problems. It is important that we draw lessons from history, and pool our collective wisdom to Uphold Peace and Stability, Advance maximize the convergence of interests among Structural Reform and Generate New countries. Fortunately, in time of hardship and Momentum for Development trial, mankind have always been able to find the Special Address by H.E. Li Keqiang courage to get out of the predicament and move Premier of the State Council of the People’ s ahead through change and innovation. Republic of China In a world facing complex international situation, we should all work together to uphold At the World Economic Forum Annual Meeting 2015 peace and stability. This year marks the 70th Davos, 21 January 2015 anniversary of the victory of the world’ s anti- Fascist war. To uphold peace and stability serves Professor Klaus Schwab, President Simonetta the interests of all people in the world. The world Sommaruga, Distinguished Guests, Ladies and order established after World War II as well as Gentlemen, Dear Friends, generally recognized norms governing international relations must be maintained, not It gives me great pleasure to come to Davos overturned. Otherwise, prosperity and again after five years to attend the World development could be jeopardized. The Cold War Economic Forum Annual Meeting 2015. Davos is a and zero-sum mentalities must be abandoned. town of peace and serenity, yet the world outside The “winner takes all” approach will not work. is not tranquil. We need to work together to shape Regional hotspots and geopolitical conflicts must the world in a new global context. I was told that be resolved peacefully through political means. Davos used to be a resort for recuperation from Terrorism, in all its manifestations, must be lung diseases, and the later discovery of Penicillin opposed. China remains committed to peaceful changed that. Now it is a place for people to gather development and regional stability. And China has and pool their wisdom for “brain-storm” . no intention to compete with other countries for Personally, I find this more than relevant, because supremacy. Peace in the world must be cherished our world also needs new forms of “Penicillin” to the same as we cherish our eyes, so that the tackle new challenges that have emerged. achievements and benefits of civilization, Admittedly, the world today is by no means including reason and justice, will prevail. trouble-free. Regional hotspots, local conflicts In a world of diverse civilizations, we should and terrorist attacks continue to flare up, posing all seek to live in harmony. Cultural diversity, like immediate threats to humanity. Global economic biodiversity, is a most precious treasure endowed recovery lacks speed and momentum. Major to us on this planet. And human society is like a economies are performing unevenly. Commodity garden where all human civilizations blossom. prices are going through frequent fluctuations. Different cultures and religions need to respect And signs of deflation have made the situation and live in harmony with each other. While even worse. In fact, many people are quite maintaining the natural close ties among those pessimistic about the future of the world. They with whom we see eye to eye, we also need to believe that the guarantee of peace is weak, and respect those with whom we disagree. Like the the prospect of development is elusive. vast ocean admitting all rivers that run into it, A philosopher once observed that we cannot members of the international community need to solve problems by using the same kind of thinking work together to expand common ground while we used when we created them. Indeed, old accepting differences, and seek win-win progress 38 External Affairs News From China February 2015

through inclusive cooperation and mutual the second largest in the world. With a larger base learning. figure, a growth even at 7 percent will produce an In a world facing volatile economic situation, annual increase of more than 800 billion US we should all work to promote opening-up and dollars at current price, larger than a 10 percent innovation. What has happened since the growth five years ago. With the economy outbreak of the international financial crisis performing within the reasonable range and the seven years ago proves that to work in unity is the speed of growth no longer taken as the sole surest way for countries to get over the yardstick, the strained supply-demand difficulties. We are all interdependent in this relationship will be eased, the pressure on world. While we each have the right to adopt resources and the environment will be lowered, economic policies in line with national conditions, and more time and energy will be devoted to push we need to strengthen macro-policy coordination forward structural reform. That means, the to expand the convergence of interests and economy will enter a more advanced stage of achieve common development. An European development, with more sophisticated division of proverb says, “when the wind of change blows, labor and a more optimized structure. If I could some build walls, while others build windmills.” compare the Chinese economy to a running train. We need to act along the trend of our time, firmly What I want you to know is that this train will not advance free trade, resolutely reject lose speed or momentum. It will only be powered protectionism, and actively expand regional by stronger dynamo and run with greater economic cooperation. We need to build global steadiness, bringing along new opportunities and value chains, and seize the opportunity of a new new momentum of growth. technological revolution. While the international In 2014, we followed exactly the afore- community agree on the importance of macro- mentioned approach. In the face of downward policies to the economy, they also recognize the pressure, we did not resort to strong stimulus; urgency to go ahead with structural reform. instead, we vigorously pursued reforms, and the Structural reform must be carried through no government in fact led these reforms by matter how difficult it is, as it is an effective way to streamlining administration and delegating foster conditions conducive to global innovation power. This has motivated both the market and the and bring about new momentum for global business sector. GDP grew by 7.4 percent for the development. whole year, the best among major economies in Ladies and Gentlemen, the world. Over 13 million new jobs were created I know you are all interested in the outlook of in cities, with both registered and surveyed the Chinese economy. Some of you may even unemployment rates lower than the previous year. worry about the possible potential impact of That is, we achieved growth in employment China’ s economic slowdown and transition. To despite the economic slowdown. CPI was kept at 2 ease your concerns, let me spend more time today percent, lower than the target set at the beginning on what is really happening in China. of the year. These outcomes prove that the host of The Chinese economy has entered a state of macro-regulation measures China adopted have new normal. The gear of growth is shifting from been right and effective. More importantly, new high speed to medium-to-high speed, and progress has been made in advancing structural development needs to move from low-to-medium reform. level to medium-to-high level. This has made it all Needless to say, the Chinese economy will the more necessary for us to press ahead with continue to face substantial downward pressure structural reform. in 2015. What shall we choose to do under such It must be noted that the moderation of circumstances? Shall we go for even higher growth growth speed in China reflects both profound for the short term, or for medium-to-high growth adjustments in the world economy as well as the and a higher quality of development over the long law of economics. The Chinese economy is now run? The answer is definitely the latter. We will News From China February 2015 External Affairs 39 maintain our strategic focus and continue to employment for the young people. And we need to pursue a proactive fiscal policy and a prudent optimize income distribution and raise the monetary policy. We will avoid adopting people’ s welfare. All this certainly calls for indiscriminate policies. Instead, we will put more tremendous efforts. Yet we will stay undaunted in emphasis on anticipatory adjustment and fine- the face of difficulties. We will unswervingly press tuning, do an even better job with targeted macro- ahead with reform and restructuring to ensure regulation to keep the economy operating within that our economy maintains medium-to-high the reasonable range, and raise the quality and speed of growth and achieves medium-to-high performance of the economy. level of development. We are taking effective measures to fend off To ensure long-term and steady growth of the debt, financial and other potential risks. China’ s Chinese economy, we need to comprehensively high savings rate, which now stands at 50 percent, deepen reforms. We need to properly use both the generates sufficient funds for sustaining hand of the government and the hand of the economic growth. Besides, China’ s local debt, market, and rely on both the traditional and new over 70 percent of which was incurred for engines of growth. We will let the market play a infrastructure development, is backed by assets. decisive role in resource allocation to foster a new And reform of the financial system is making engine of growth. At the same time, we will give progress. What I want to emphasize is that better scope to the role of the government to regional or systemic financial crisis will not transform and upgrade the traditional engine of happen in China, and the Chinese economy will growth. not head for a hard landing. To foster a new engine of growth, we will It must be pointed out that China is still a encourage mass entrepreneurship and developing country and still has a long way to go innovation. China has 1.3 billion people, a 900- before achieving modernization. While peace is million workforce, and over 70 million enterprises the basic condition for China’ s development, and self-employed businesses. Our people are reform and opening-up along with our people’ s hard-working and talented. If we could activate desire for a happy life constitute the strongest every cell in society, the economy of China as a impetus propelling development. The space of whole will brim with more vigor and gather development in China’ s rural and urban areas and s t r o n g e r p o w e r f o r g r o w t h . M a s s various regions is enormous, and the country’ s entrepreneurship and innovation, in our eyes, is a domestic demand will simply generate great “gold mine” that provides constant source of potential of growth. Development at medium-to- creativity and wealth. high speed for another ten to twenty years will Speaking of this, I think of China’ s rural reform bring even bigger changes to China and create conducted more than 30 years ago. The reform more development opportunities for the world. brought farmers’ initiatives into full play and For the Chinese economy to withstand allowed them to decide for themselves matters downward pressure, and to maintain medium-to- related to rural production and management. high speed of growth and achieve medium-to- Consequently, the problem of hunger that high level of development, we need to say “no” to previously haunted China was solved in just a traditional mindset. We must encourage couple of years. In short, a structural innovation innovative institutions, and press ahead with that unleashed the creativity of the people structural reform. We need to adopt more changed the lot of hundreds of millions in China. I innovative macro-regulation policies and develop also think of a small village I visited two months a more vigorous micro economy. We need to ago in eastern China. In the village were some 700 promote more balanced development of households and over 2,800 registered online industries, between rural and urban areas and stores. Each day, more than 30 million items of among regions. We need to ensure relatively high various sorts were sold to different parts of the employment rate, especially sufficient world. The story of the village speaks vividly of the 40 External Affairs News From China February 2015

hard-working Chinese people actively engaged in They are also important ways to boost domestic entrepreneurship. demand. Going forward, China needs new sources of This year, we have identified some key areas dynamism to carry development forward. for investment, including building railways in Dynamism comes from diversity, which sparks central and western provinces, constructing wisdom and fosters innovation. Mass water conservancy projects, rebuilding rundown entrepreneurship and innovation serves to urban areas and old houses in cities and villages, unleash people’ s ingenuity and power. It will and preventing and controlling pollutions. The result in greater demand and residents’ government will increase investment in these consumption, greater social wealth, and greater areas, and it will not act alone. Efforts will be made welfare for the people. More importantly, it will to break monopoly and reform the investment and bring opportunity for many and give people the financing systems to encourage the participation stage to reach life’ s full potential. It will also bring of private and foreign capitals. The model of about greater social mobility, equity and justice. public-private partnership (PPP), Sino-foreign Excessive regulation discourages innovation, cooperatives and government purchase of and healthy competition is the way to prosperity. services will be adopted to better leverage various We will deepen reform of the administrative investment sources. I have an example here to cite. system. This means we will continue to abolish or A few years ago, the plan was made to build a delegate to lower-level governments items sewage treatment plant in a province in western previously subject to State Council review and China, and a total of 335 million RMB yuan was approval. We will comprehensively sort out items needed. The project later attracted investment requiring non-governmental review and from a German water company, with the German approval, and put in place a negative-list approach side controlling 70 percent of the total shares. for market access. This will incentivize market Moving forward, we will deepen fiscal and players, and help reduce the possibility of rent- taxation reform, reduce the tax and fees charged to seeking and corruption. We will protect businesses, particularly those in the service intellectual property rights in accordance with sector, and take new steps to support SMEs. We the law, and do our best to foster an environment will deepen reform of the financial system, that encourages entrepreneurship and tolerates continue to promote liberalization of interest and failure. Moreover, we will give protection to all exchange rates, and accelerate the development of sorts of legal property rights. small- and medium-sized financial institutions, To transform the traditional engine of growth, private banks in particular, with a view to we will focus on increasing the supply of public developing a multi-tiered capital market. We will goods and services. China has made remarkable speed up reform of the pricing system, economic achievements, but inadequate supply of substantially reduce the types and items for which public goods and services remains a weak link in the government sets the prices, and liberate price development. China’ s capital stock on public regulation to the maximum extent possible. More infrastructure, in per capita terms, is only 38 emphasis will be given to the government’ s role in percent that of Western Europe and 23 percent creating a favorable “soft environment” . That that of North America. The development of its means better market regulation, a world-class service sector is 10 percentage points lower than business environment established on market other developing countries at similar principles and the rule of law. In this way, we will development stages. And its rate of urbanization be able to provide efficient and quality public is more than 20 percentage points lower than services to all market players. developed countries. This means a massive space Ladies and Gentlemen, for increasing public goods and services. To China’ s reform and development will bring deliver such public goods and services to improve more business opportunities to the world. We will people’ s lives is the government’ s responsibility. provide easier market access for inbound foreign News From China February 2015 Chinese Enterprises in India 41 investment, and explore the possibility of needs to do three things: go at the right speed, management based on a pre-establishment keep balance and be courageous. I believe this also national treatment and negative-list approach. holds true for the Chinese economy. What is Chinese and foreign companies will be treated as important now for China is to adapt to the new equals. We will further open the financial, normal. China will maintain medium-to-high education, cultural, medical care, pension and speed of growth, keep a proper balance between other service sectors in an orderly way, and bring steady growth and structural adjustment, and the experience of the China (Shanghai) Pilot Free push forward reform with great courage and Trade Zone to other parts of China. Our aim is to determination. China will stay firm in its help investors from across countries find “rich commitment to reform and opening-up. It will mines” and reap steady returns from their focus on structural reform, encourage mass investment. entrepreneurship and innovation, increase supply What is more, China will explore new of public goods and services, and use the twin approaches to investment cooperation with other engines to ensure that the economy maintains countries. China’ s high-speed railway, nuclear medium-to-high speed of growth and achieves power, aviation, telecommunications and other medium-to-high level of development. As long as sophisticated manufacturing capacities are we succeed in doing so, the Chinese economy will gradually being introduced to other countries. successfully overcome the “middle-income trap” They could meet market demand of the recipient and move ahead along the path of sustainable and country, and stand the test of competition on the sound development. This will in turn bring greater international market. Their export will also help opportunities to the world economy. open up third-country markets, as many of such In closing, I would like to call upon the products are made by joint ventures between international community to forge ahead and work China and a foreign country. China has put in unison to uphold peace and stability, embrace forward the initiatives to build the Silk Road harmonious coexistence, and boost the impetus Economic Belt and the 21st Century Maritime Silk for openness and innovation. By doing so, I am Road. China hopes to work with other countries to confident we will be able to overcome whatever advance these initiatives and ensure that they are difficulty or obstacle that stand in our way, and brought forward in ways that meet the actual bring about a better future for the world that we needs of countries concerned. all call home. Davos of Switzerland is a world-famous ski Thank you very much. resort. As we understand, to be a good skier, one

CHINESE ENTERPRISES IN INDIA

Sinopharm India

The healthcare is an important strategic reciprocity, but also an sector related to national economy and important medium of promoting people’s lives. It has a strong livelihood, friendship between two nations. public welfare and externalities impact. As the largest healthcare industry Cooperation in the field of healthcare group in China and the only Chinese between China and India is not only an healthcare company in Global important sector of bilateral trade and F o r t u n e 5 0 0 , C h i n a N a t i o n a l economic complementarity and Pharmaceutical Group Corporation 42 Chinese Enterprises in India News From China February 2015

(Sinopharm Group) has an entire medical industry chain format c ove r s t h e p h a r m a c e u t i c a l distribution, pharmaceutical production, chain pharmacies, biological products, hospital design, professional exhibition, hospital management, international trade and marketing business etc. China S i n o p h a r m I n t e r n a t i o n a l C o r p o r a t i o n ( S i n o p h a r m International)—Sinopharm Group International business sector, m a i n l y f o c u s o n b u i l d i n g international business integration platforms and domestic health industry platform. The former business scope includes import and export trade of big health products, i n te r n a t i o n a l m a rke t i n g o f Sinopharm International Headquarter biological products, international export volume is about 194 million US dollars; marketing of medical devices etc. The latter From January to July in 2014, imports volume includes the chain medical center, hospital from India is about 83 million US dollars; exports management group, Sinopharm online shop E- volume is about 32 million US dollars; import and commerce etc. export volume is about 115 million dollars Sinopharm International has a long history of .Imported products are mainly cotton, plant cooperation and business development in India. extracts, edible oil;Exports to India mainly APIs According to statistics, in 2013, imports volume and intermediate products, biological products from India is about 151 million dollars; exports and medical devices. Which, the noteworthy is volume is about 43 million US dollars; import and biological products business. Sinopharm International started JE project cooperation with Indian Ministry of Health since 2006, cumulatively shipped more than 170 million copies of the Japanese Encephabtis Vaccine, such that about 100 million children are protected. In 2 0 1 4 , S i n o p h a r m International also got a 2-year contract for the supply of JE vaccine to Ministry of Health.In addition, IVIG, HBIG, Varicella, Human Tetanus Immuno-globulinarein the replacement regis-tration Sinopharm India Opening Ceremony process again. News From China February 2015 Chinese Enterprises in India 43

In case to expand the cooperation in the field of bilateral health care, and to provide better localized health services to the people of India. Sinopharm International invested to establish Sinopharm I n d i a P v t . L t d . (Sinopharm India) in New Delhi at the end of 2012.Sinopharm India P v t . L t d . i s t h e procurement center, registration center, Vaccine Storage and injection s a l e s c e n te r, a n d the business scale is 3.88 million dollars. medical information exchange and industrial Same as “BRICS Countries”, China and India cooperation center of Sinopharm Group in India. will continuously enhance the cooperation in the It is committed to provide comprehensive field of healthcare. This healthcare cooperation package of services for Chinese manufacturers of between “Dragon and Elephant” is not only pharmaceutical products. The main business conducive to meet the healthcare needs of includes three sections, marketing of biological approximately 40% of the world’s population, will products, marketing of APIs and intermediates, also tremendously contribute to the development marketing of medical devices. The Minister of of mankind healthcare industry. Adhering to the Health Chen Zhu cut the opening ribbon at corporate credo of ‘Caring for life, attending to January of 2013.2013 annual business scale is health’, Sinopharm India is going to play a unique about 2 million US dollars; Up to October of 2014, and critical role as a bridge.

Sinosteel India

Sinosteel India Pvt. Ltd. (abbreviated as India has been engaged in developing and Sinosteel India) with its Head Office at Nehru purchasing high quality mineral resources (such Place, New Delhi, is a fully owned subsidiary of as iron ore, chrome ore, manganese ore, nickel ore, Sinosteel Corporation, being important part met coke etc.) for Chinese steel manufacturers; working under the guidance of global integrated and in undertaking projects for Indian steel mills, operation strategy of Sinosteel Corporation. providing, comprehensive and auxiliary service, Sinosteel India operates with various importing complete equipments , steel products departments of Resource (iron, chrome, and coke. manganese, coke and coal), Project & Equipments Exerting a full play of the advantage in global Adminis-tration, Finance, Public Relation and integrated operation of Sinosteel group, Sinosteel Investments and working together to promote the India strives to take usage of the abundant Sinosteel brand. resources and development potentiality of India Since its establishment in 2005, Sinosteel and its neighboring countries, to provide all- 44 Chinese Enterprises in India News From China February 2015

around and satisfactory service in India and neighboring markets. Moreover, with a high view of our corporate social responsibility, we commit ourselves to local environ- m en t p rotec t ion a n d community development. While developing India Market, Sinosteel India also dedicates to fulfillment of social responsibility and continuously promotes the sustainable development of economy, environment and Staff of Sinosteel India society, Sinosteel India is exchanges and cooperation with friends of the endeavoring to become an enterprise which is field at home and abroad. We will fulfill our trustworthy, resources and energy saving, responsibilities and adhere to mutual environmental friendly and people-orientated. development. With “united, cooperation, Development will create a better future, and development, win-win” as goal, Sinosteel India the responsibility will make a cohesive strength. warmly welcomes old and new friends to contact Sinosteel India is hoping to enhance and expand for business cooperation.

The disability artist performance in Delhi sponsored by Sinosteel India News From China February 2015 Reviving the Silk Road 45

REVIVING THE SILK ROAD

China Sketches Out Priorities of “Belt and Road" Initiatives

Chinese Vice Premier Zhang Gaoli (C rear) presides over a meeting focused on the "Belt and Road" initiatives, or the building of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, in Beijing, capital of China, Feb. 1, 2015. (Xinhua/Huang Jingwen)

Beijing, Feb. 1 (Xinhua) — Chinese leaders established along the ancient Silk Road trade sketched out priorities for the “Belt and Road” route, which stretches northwest from China’s initiatives on Sunday, highlighting transport coastal area through Central Asia, the Middle East infrastructure building, investment and trade and on to Europe, while the 21st Century Maritime facilitation, financial cooperation and cultural Silk Road will run through the country’s south to exchange. Southeast Asia. The initiatives are major policy decisions China will join hands with countries along the made by the Party and the State Council, which Belt and Road to build a community of common will be of great significance to further opening up interests, common responsibilities and a shared to the outside world and promoting regional and future, featuring political mutual trust, economic world peace, said Vice Premier Zhang Gaoli at a integration and cultural inclusiveness, Zhang said conference focused on implementing the at the conference attended by other senior initiatives. leaders. The Silk Road Economic Belt is slated to be Under the initiatives, more highways, railways 46 Reviving the Silk Road News From China February 2015

and air routes will be built and Chinese regions routes. will further integrate resources, policies and Financial cooperation should be expanded markets to connect with the outside world. and accelerated to provide better financing The initiatives were put forward by Chinese support for the construction of the Belt and the President Xi Jinping during his overseas visits in Road, said the vice premier. 2013. People-to-people exchanges should also be Speaking at the conference, Zhang called for enhanced along the routes, and the spirit of using major economic and trade industrial parks friendly cooperation, which can be dated back to as platforms to build several international the ancient Silk Road, should be promoted, Zhang economic cooperation corridors, and rely on key said. port cities to jointly build secure and efficient Zhang also highlighted the importance of transport corridors. environment protection and social responsibility Another priority of the initiatives is to in building the Belt and Road. facilitate the interconnection of infrastructure Countries along the routes should increase along the Belt and Road. communication and consultations and give full The vice premier also stressed the importance play to multilateral, bilateral, regional and sub- of facilitating investment and trade, creating a regional cooperation mechanisms and platforms favorable business environment and making to seek common development and prosperity, more efforts to build cooperation parks along the Zhang said.

China Holds Maritime Silk Road Seminar

Liu Qibao, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and the Secretariat of the CPC Central Committee, who is also head of the CPC Central Committee's Publicity Department, delivers a keynote speech at the international seminar on the 21st Century Maritime Silk Road held in Quanzhou, southeast China's Fujian Province, Feb. 12, 2015. (Xinhua/Jiang Kehong) News From China February 2015 Reviving the Silk Road 47

Quanzhou, Fujian, Feb. 11 (Xinhua) — A two- opening-up and a close trading partner of day international seminar on beefing up maritime countries in Southeast Asia. trade infrastructure in Asia opened Wednesday in “As the core area in constructing the modern east China’s Quanzhou City. maritime Silk Road, Fujian stands ready to Over 280 academics and experts from 30 increase maritime connectivity, promote multiple countries have been invited to discuss proposals trades and transactions, advance maritime to build a “21st Century Maritime Silk Road.” The cooperation and make contributions to the Road,” event is themed “collectively building the 21st You said in a keynote speech. Century Maritime Silk Road and creating a Being a means of disseminating information community of common destiny.” and a messenger of cultural exchange, the media It will involve three round table meetings plays an irreplaceable role in promoting mutual covering the topics of “the values and significance understanding and friendship among countries, of the 21st Century Maritime Silk Road initiative,” said , president of the Xinhua News “working together for common development and Agency. prosperity” and “seizing fresh development Cai said Xinhua will increase its coverage of opportunities and tapping new cooperation the Silk Road initiative, and provide tailored news prospects.” products on the subject. Jiang Jianguo, director of China’s State Council Wang Weiguang, president of the Chinese Information Office, said in his welcoming address Academy of Social Sciences, said the seminar is that the Silk Road Economic Belt and the 21st conducive to boosting political trust, deepening Century Maritime Silk Road have become hot economic cooperation and promoting cultural as topics for the media and think tanks, reflecting the well as people-to-people exchanges among attraction of the initiatives to countries along the countries along the route. route. In 2013, Chinese President Xi Jinping You Quan, secretary of the Fujian Provincial proposed a modernization of the ancient Silk Road Committee of the Communist Party of China, said trading network to benefit the Asia region. Fujian has always been a pioneer of reform and The seminar is hosted by the State Council Information Office and co- organized by the , the Chinese A c a d e m y o f S o c i a l S c i e n c e s , t h e C h i n a International Publishing Group and the Fujian Provincial Academy of Social Sciences.

The “Belt and Road” Initiative Brings New Opportunities B e i j i n g , J a n . 2 8 (Xinhua) — As China The summit forum of the international seminar on the 21st Century Maritime Silk Road is held in strives to achieve more Quanzhou, southeast China's Fujian Province, Feb. 12, 2015. (Xinhua/Wei Peiquan) regional cooperation, its 48 Reviving the Silk Road News From China February 2015

“Belt and Road” initiative will not only drive 2014, it was listed as one of the priority tasks for domestic development but will also influence its 2015. And in recent days, the initiative has been foreign policy. lauded by people’s congress sessions across the The Silk Road Economic Belt is slated to be country. established along the ancient Silk Road trade A total of 20 provincial regions have made their route — which stretched northwest from China’s development blueprints based on the belt and road coastal area through Central Asia, the Middle East initiative. and on to Europe — while the maritime Silk Road Observers believe that the initiative can further will run through the country’s southern part to integrate China, allowing more parts of the country Southeast Asia. to enjoy the benefits of its opening-up policy. Under the initiative, more highways, railways But the significance of the Belt and Road and air routes will be established, and Chinese initiative lies in its potential to integrate domestic regions will further integrate resources, policies and regional development, bringing a more and markets to connect with the outside world. pragmatic approach to China’s foreign policy. The Silk Road Economic Belt and the 21st Along the belt and road are many developing Century Maritime Silk Road were put forward by countries, with a combined population of 4.4 Chinese President Xi Jinping during his overseas billion and an annual economic output of 2.2 visits in 2013. trillion U.S. dollars. In November, Xi announced that China will China has strengthened cooperation with push forward with the initiative and strengthen neighboring countries in the fields of energy, cooperation with those countries involved. transportation and trade. China’s import of When visiting Mongolia in August, he said that products and services improves the economy its China invited its neighbors to get on board and neighbors and bolsters its own sluggish economy. ride China’s development. The initiative will become a major part of its As China promotes the Belt and Road initiative foreign policies, resulting in a more favorable and abroad, it is also driving change back home. In an mutual-beneficial regional environment. economic work conference held in December

China Kicks off Silk Road Tourism Year

Xi’an, Jan. 8 (Xinhua) — China on Thursday for all related nations, said Du Jiang, deputy kicked off the Silk Road tourism year in Xi’an, director of the CNTA. capital of northwest China’s Shaanxi Province, to Shaanxi Province is investing more in tourism attract more visitors on the ancient Silk Road and cementing its position as the starting point of which linked China with central Asian nations. the Silk Road, said Bai Aying, deputy governor of Every year China National Tourism Shaanxi Province. Administration (CNTA) sets a theme for tourism The new Silk Roads, both land and sea, promotion. Inspired by the Silk Road, China will involves 65 countries. Future co-operation will promote western provinces for their rich culture aim to open more direct flights, and ease custom and tourist appeal. procedures to eliminate barriers to travel. The Silk Road tourism year will facilitate Chinese president Xi Jinping has proposed the regional cooperation, deepen mutual under- “Belt and Road” initiatives to revive the ancient standing and establish mutually beneficiary ties Silk Road and promote shared prosperity. The News From China February 2015 Reviving the Silk Road 49

initiative prioritizes infrastructure and with big travel agencies in China,” said Hu Lina, connectivity-an opportunity that tourism marketing director of Czech Tourism Beijing operators won’t miss. Office. Silk Road Tourism will be intensively “The terminal of Silk Road is in Rome and promoted in the next three years, giving travelers Prague is only two hour flight away from Rome. more options to their itinerary. We’ll promote honeymoons and hot spring tours (also source from: CNTV.cn) this year. We’ll have promotion packages, working

Chinese Dance Drama Promotes "Maritime Silk Road" at UN HQ

United Nations, Feb. 4 (Xinhua) — “I thought porcelain...” Kucinski recalled a specific scene the story was very powerful. It was about family, showing the hustle and bustle of the trade and love, adventure, friendship, and inheritance,” commerce 800 years ago. Maria Kucinski said after watching a traditional The dance drama, through distinctively Chinese dance drama “Dream of the Maritime Silk Chinese classical dance, tells a story of a Road.” commercial fleet in China’s Quanzhou port, Fujian Admitting that she has never learnt anything Province: The captain of the fleet was invited by a before about Maritime Silk Road — a sea route of Persian prince to together develop a new sailing the economic and cultural exchanges between route. During the voyage, the fleet was struck by a ancient China and the rest of the world, Kucinski storm and the captain sacrificed his life to save the told Xinhua that she can get the concept and Persian prince. images of interactions in trade and culture in that “That’s really wonderfully portrayed,” said period after enjoying the drama performed at UN Alice Chen, a Chinese American who works in the headquarters on Wednesday night. UN. “I think it’s really great that the UN was able to “There is a marketplace where everybody showcase all the culture, all the celebrations and came...where they are able to purchase silk, tea, all the great values that Chinese people have.” 50 Reviving the Silk Road News From China February 2015

“You see the Chinese really look out for other cultures,” she added. The performance is put on by the Permanent Mission of China to the UN on the o c c a s i o n o f C h i n a ’ s presidency of the Security Council for February. UN Secretary-General Ban Ki- moon also joined the crowds to watch the show. Addressing the event, Liu Jieyi, China’s permanent representative to the UN said today’s world calls for a new t y p e o f i n t e r n a t i o n a l Artists perform during a Chinese Dance Drama entitled "The Dream of the Maritime Silk relations centering on win- Road", at the United Nations headquarters in New York on Feb. 4, 2015. (Xinhua/Niu Xiaolei) win cooperation. “China is working with numerous countries to area through Central Asia, the Middle East and on build a Silk Road Economic Belt and a 21st to Europe, while the 21st Century Maritime Silk Century Maritime Silk Road,” Liu mentioned, Road will run through the country’s south to saying that the initiative is making good headway Southeast Asia. and will bring new vigor and vitality to the Echoing with the concepts of the initiative, the development and prosperity of the countries show is expected to act as a symbol of cultural concerned and the world at large. exchanges, Xie Nan, executive director of the The Silk Road Economic Belt is to be drama told Xinhua, adding that he hopes it can established along the ancient Silk Road trade help to deliver China’s friendliness and passion to route, stretching northwest from China’s coastal the whole world on the UN’s platform.

Chronology of China's "Belt and Road" Initiatives

Beijing, Feb. 5 (Xinhua) -- China prioritized area through Central Asia, the Middle East and on tasks for the future of the "Belt and Road" to Europe, while the 21st Century Maritime Silk initiatives during the Conference to Promote the Road will run through the country's south to Construction of the Belt and Road on Feb. 1. Southeast Asia. The list of planned actions includes The following are the major events in the consultations with countries involved, development of China's "Belt and Road" initiatives construction of international economic so far. cooperation corridors and ports, as well as September 2013 -- The "Silk Road Economic infrastructure projects. Belt" concept was initiated by Chinese President The Silk Road Economic Belt is to be Xi Jinping during his visit to Kazakhstan. In a established along the ancient Silk Road trade speech delivered at Nazarbayev University, Xi route, stretching northwest from China's coastal suggested that China and Central Asia join hands News From China February 2015 Reviving the Silk Road 51 to build a Silk Road Economic Belt to boost to the construction of the Silk Road Economic Belt. cooperation. It was the first time Chinese October 2014 -- Twenty-one Asian countries leadership mentioned the strategic vision. willing to join the Asian Infrastructure Investment Oct. 3, 2013 -- President Xi Jinping proposed to Bank (AIIB) as founding members signed the build a more closely-knit China-ASEAN Memorandum of Understanding on Establishing community following a common destiny and AIIB. As agreed, Beijing will be the host city for provided guidance for constructing a 21st Century AIIB's headquarters. The 21 countries are Maritime Silk Road to promote maritime Bangladesh, Brunei, Cambodia, China, India, cooperation. In his speech at the Indonesian Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, parliament, Xi also proposed to establish the Asian Myanmar, Nepal, Oman, Pakistan, the Philippines, Infrastructure Investment Bank (AIIB) to finance Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan infrastructure construction and promote regional and Vietnam. It is expected that AIIB will be interconnectivity and economic integration. formally established by the end of 2015. November 2013 -- The Third Plenary Session November 2014 -- President Xi Jinping of the 18th Central Committee of the Communist announced China will accelerate the construction Party of China (CPC), a milestone along China's of the "Belt and Road" and strengthen cooperation reform path, called for accelerating the with the countries involved. When presiding over interconnection of infrastructure among the eighth meeting of the Central Leading Group neighboring countries, and facilitating the on Financial and Economic Affairs, Xi announced construction of the Silk Road Economic Belt and that China will contribute 40 billion U.S. dollars to 21st Century Maritime Silk Road. set up the Silk Road Fund. During the Beijing APEC December 2013 -- President Xi Jinping urged meetings, Xi announced that the fund will be used strategic planning of the "Belt and Road" to provide investment and financing support to initiatives to promote the interconnection of carry out infrastructure, resources, industrial infrastructure and build a community of common cooperation, financial cooperation and other interests at the annual Central Economic Work projects related to connectivity for countries Conference. along the "Belt and Road". February 2014 -- President Xi Jinping and his December 2014 -- The Central Economic Work Russian counterpart, Vladimir Putin, reached a Conference sketched out priorities for the coming consensus about the construction of the "Belt and year, which include the implementation of "Belt Road", as well as its connection with Russia's and Road" initiatives. Earlier in the month, Euro-Asia Railways. Thailand approved a draft memorandum of March 2014 -- Premier Li Keqiang highlighted understanding between Thailand and China on acceleration in building the "Belt and Road" in the railway cooperation. government work report. The report also January 2015 -- The number of AIIB founding promoted balanced development of the members, many of whom are important countries Bangladesh-China-India-Myanmar Economic along the Silk Road routes, rose to 26, after New Corridor and the China-Pakistan Economic Zealand, Maldives, Saudi Arabia and Tajikistan Corridor. officially joined. May 2014 -- The first phase of a logistics Feb. 1, 2015 -- A conference focused on the terminal jointly built by China and Kazakhstan "Belt and Road" initiatives was held in which went into operation in the port of Lianyungang in Chinese leaders sketched out priorities for the east China's Jiangsu Province. The terminal, with a initiatives, highlighting transport infrastructure total investment of 606 million yuan (98 million building, investment and trade facilitation, U.S. dollars), is seen as a platform for goods from financial cooperation and cultural exchanges. central Asian countries to go overseas and a boost 52 Economic Affairs News From China February 2015

ECONOMIC AFFAIRS Slowdown: A Blessing in Disguise?

by Deng Yaqing

China’s economy grew at a rate of 7.4 percent in 2014 amidst its painstaking efforts to carry out structural reform, cut outdated production capacity and promote inno- vation. “China has surmounted tremendous pressures and challenges to realize the goal of maintaining its growth rate around the 7.5-percent target,” said Ma Jiantang, Commi- ssioner of the National Bureau of Statistics (NBS), noting that such a growth rate is quite hard-won against the nation’s A worker prints the back of a chair with a 3D printer in Anji, east China's Zhejiang Province, on January 15 (XU YU) massive economic aggre- gate—63.6 trillion yuan ($10.4 of China’s economy in 2015. As millions of people trillion). surge into urban areas, the efficiency of resource Although the economy has shifted into low allocation will improve, hopefully creating greater gear compared with the double-digit growth of market demand, said Ma. previous years, Chinese people have benefited Opening up and reform will continue to from the low price level and efficient job creation, stimulate inexhaustible entrepreneurial said Ma. According to statistics from the NBS and enthusiasm, which is the main engine of stable the Ministry of Human Resources and Social growth. Reducing government intervention and Security, China’s consumer price index (CPI) rose relaxing market access will mobilize the 900 2 percent in 2014, and a total of 13.22 million million labor and scientific and technical urban jobs were created, far exceeding the target personnel to innovate and start businesses, said of 10 million. Ma. “The economic environment will remain Enhanced Quality complicated in 2015. Externally, some developed economies are experiencing a recovery. Despite a slowdown in growth speed, a focus Domestically, uncertainties and contradictions has been laid on elevating the quality and are interwoven,” said Ma. “However, there are still efficiency of economic growth. many favorable conditions for China to maintain Annual labor productivity reached 72,313 medium-to-high growth in 2015.” yuan ($11,647) per capita, up 7 percent from the I n d u s t r i a l i z a t i o n , i n fo r m a t i z a t i o n , previous year. Energy consumption per unit of urbanization and agricultural modernization GDP was reduced by 4.8 percent, according to Ma. have laid a solid foundation for the steady growth “As economic structural reform advances, and News From China February 2015 Economic Affairs 53 growth model and resources allocation manufacturing industry; the added-value of the continuously improve, the slowdown seems service industry grew 8.1 percent, faster than the inevitable,” said Yu Yongding, an expert with the 7.3-percent growth registered by the Chinese Academy of Social Sciences. manufacturing industry and the 4.1-percent Yu offered an example. More than 20 percent growth registered by the primary industry, of China’s total steel production capacity is laid according to statistics from the NBS. idle, and in Hebei Province alone, there are more Qu stated that since the service industry best than 300 steel mills. Shutting down these creates jobs, such an adjustment in industrial factories would lead to GDP growth decline, but it structure will stabilize employment and facilitate doesn’t mean green GDP would drop. ongoing economic reforms. Yu’s point of view echoes that of Liu Kegu, While traditional industries, heavy chemical former Deputy Governor of China Development and bulk raw materials industries struggled with Bank, who believes GDP growth at around 7 endless difficulties in 2014, emerging industries percent is what it originally ought to be, because like mobile Internet gained momentum, implying China used to excessively fix its eyes on growth that China’s economy is aggressively edging up speed rather than quality and people’s livelihood. along the value chain, said Ma. “Part of the investment in jacking up GDP growth “The service industry as well as Internet- should have gone toward eliminating related emerging industries and hi-tech environmental pollution, improving people’s industries are growing, while high energy- living standards, securing employment, or consuming industries are also growing—just at a promoting health care and education,” said Liu. slower pace,” said Ma. China’s economic growth has gradually According to statistics from the NBS, the hi- broken its excessive dependence on real estate tech manufacturing industry expanded 12.3 investment, said Qu Hongbin, chief economist of percent in 2014, 4 percentage points faster than HSBC in the Greater China region. The the growth of value-added output of industrial construction area of newly built homes dropped enterprises; meanwhile, the equipment 10.7 percent in 2014 and land purchases made by manufacturing industry grew 10.5 percent, 2.2 real estate developers fell by 14 percent from the percentage points faster than the growth of value- previous year, according to statistics from the NBS. Improved Structure T h e e x p a n d i n g proportion of the service industry indicates that the service industry is r e p l a c i n g t h e manufacturing industry to become the main e n g i n e o f C h i n a ’ s economy, said Ma. The added-value of the service industry a c c o u n te d fo r 4 8 . 2 percent of the total GDP in 2014, up 1.3 percentage points and 5.6 percentage An urban resident in Lhasa, capital of southwest China's Tibet Autonomous Region, cleans her points higher than the home fitted with heating applications on January 9 (LIU KUN) 54 Economic Affairs News From China February 2015

added output of industrial enterprises. In industry accounted for over 30 percent of the addition, online retail sales increased by 49.7 total, eliminating overcapacity and curbing percent, and the volume of express delivery overlapping investment will inevitably result in increased by a whopping 51.9 percent. lower growth of fixed assets investment, said Ma, While the development of hi-tech industries who admitted that China’s economy faces great outpaced that of traditional industries, exports of downward pressures in 2014 and 2015. hi-tech products such as high-speed rails also shot When adjusting economic structure and up last year, said Li Kang, chief economist of dealing with excess production capacity, Xiangcai Securities Co. Ltd. traditional manufacturing enterprises are more In sustaining the structural adjustment, Ma likely to suffer capital chain ruptures, which will argued that enterprises need to constantly activate default risks and generate bad loans, said improve their product structure and renovate Lin. their technologies, the market should be further “Generally speaking, when economic growth freed up to play a decisive role in allocating slows down, the leverage ratio will ascend. resources and the government should resort to Surging leverage ratio reflects enterprises’ structural and industrial policies as well as dwindling capacity to pay off debts,” said Yu. macro-control policies. “The inexhaustible As an important economic parameter, China’s impetus of stable growth consists in CPI grew a mere 2 percent in 2014. By the end of entrepreneurial innovation,” said Ma. last December, the producer price index (PPI) had seen negative growth for 34 consecutive months, Roadblocks Ahead according to statistics from the NBS. China’s GDP hit $10.4 trillion in 2014, almost Lian Ping, chief economist of the Bank of twice that of Japan, making it the second country Communications, noted that the consecutive with GDP surpassing $10 trillion. “Despite that, negative PPI growth has constrained the the per-capita GDP was roughly $7,400, ranking expansion of the manufacturing industry and around 80th among all the countries on the globe,” undermined the development of the macro- said Lin Caiyi, chief economist of Guotai Jun’an economy. Securities Co. Ltd. The decline of CPI and PPI mirrors weak China is still a middle-income country and has domestic demand, and the risk of deflation will to overcome the so-called “middle-income stretch the endurance of China’s economy, said Qu. trap”—an economic development situation “Since the second half of 2014, the prices of wherein a country that attains a certain income international bulk commodities like crude oil have gets stuck at that level. As such, it should stimulate plunged, which will further increase the market vigor through innovation, transformation possibility of deflation,” said Qu. and opening up to the outside world, said Lin. Macroeconomic Indicators in 2014 Zhang Qizuo, Deputy Secretary General of Globalization Cooperation Forum, held that the - Consumer price index (CPI), the main gauge economy cannot sustain over-investment in of inflation, rose 2 percent. manufacturing, real estate and infrastructure - Producer price index (PPI), which measures construction, which would only aggravate inflation at the wholesale level, contracted 2.2 overcapacity, housing bubbles, local government percent. debt and financial risks. - Foreign trade increased 3.4 percent to $4.3 Due to the adjustment of the real estate trillion. Exports increased 6.1 percent to $2.34 market and the reduction of overcapacity in the trillion, while imports increased 0.4 percent to manufacturing industry in recent years, the $1.96 trillion. growth of fixed assets investment has been - Inward foreign direct investment (FDI) on slowing down. Last year, it only registered 15.1 the Chinese mainland stood at $119.56 billion, up percent. Since investment in the manufacturing 1.7 percent. News From China February 2015 Economic Affairs 55

- Outward FDI from the Chinese mainland percent with inflation deducted. stood at $102.89 billion, up 14.1 percent. - Per-capita cash income of rural residents - Value-added output of industrial enterprises stood at 10,489 yuan ($1,689), up 9.2 percent with above a designated size—principal business inflation deducted. revenue of more than 20 million yuan ($3.22 - New yuan-denominated loans totaled 9.78 million) a year—grew 8.3 percent. trillion yuan ($1.58 trillion), 890 billion yuan - Fixed assets investment totaled 50.2 trillion ($143.34 billion) more than the amount in 2013. yuan ($8.09 trillion), up 15.1 percent with - As of the end of 2014, M2, a broad measure of inflation deducted. money supply that covers cash in circulation and - Retail sales totaled 26.24 trillion yuan ($4.23 all deposits, reached 122.84 trillion yuan ($19.78 trillion), up 10.9 percent with inflation deducted. trillion), up 12.2 percent. - Per-capita disposable income of urban (Sources: National Bureau of Statistics, residents stood at 28,844 yuan ($4,646), up 6.8 Ministry of Commerce)

Get Smart: Chinese Phone Makers

by Zhou Xiaoyan

Han Yu, a 24-year-old postgraduate student in Beijing, is a rabid fan of Xiaomi Inc., a Beijing- based maker of smartphones, tablets and televisions. He, like hundreds of thousands of other Xiaomi worshipers, spends hours every day in testing the user interface of Xiaomi cell phone, finding bugs and offering advice to the company. He is in charge of several sections of Xiaomi’s online forum, a platform for fans to interact with the homegrown smartphone vendor, and, every day, there are over 200,000 new posts from fans on the forum. Han said his life is Xiaomi-centered and he has since gotten to know many new friends through t h e w o r l d ’ s l a r g e s t h a n d s e t m a r k e t the Xiaomi forum. —China—with a highly organized fan base who “Xiaomi took my advice about creating a love and idolize the company. folder for private pictures in its latest update. This Xiaomi is not the only Chinese smartphone is an honor for me. I really enjoy the feeling of maker that’s growing exponentially both at home being part of it,” Han said. and overseas. Other local brands—Lenovo, Xiaomi, whose name translates into the grain Huawei, Coolpad and Vivo—are all also rising into “millet,” was founded in April 2010, in leadership positions held by global leaders Zhongguancun, Beijing’s technology hub dubbed Samsung Electronics Co. and Apple Inc. The “China’s Silicon Valley.” The company is very competitive edge of local brands lies in reasonable appropriately named, because it has shown prices combined with high-performance significant growth. Over the past several years, it hardware and highly customized software. This is has risen from an obscure Chinese handset maker very attractive to many Chinese consumers who to become one of the top smartphone vendors in try to strike a balance between the price and 56 Economic Affairs News From China February 2015

performance. China’s handset market is “unbelievably brutal.” According to a recent report from the China Xiaomi is mired in heightened competition with Academy of Telecommunication Research, domestic rivals Lenovo and Huawei. domestic cell phone brands owned 78.3 percent of Xiaomi’s cross-town rival Lenovo, the world’s the market share in China in 2014. largest maker of personal computers, is focused on an expansion in smartphones amid a global decline in PC demand. After purchasing Motorola from Google in a $2.91-billion deal in October 2014, Lenovo claimed it has become the third largest smartphone vendor in the world and said the space between it and the top ranked smartphone makers is decreasing. Lenovo announced in January that it will bring Motorola phones back to China in the first quarter, reintroducing the brand to the world’s largest market after an absence of more than two years. “Motorola’s brand is well liked and respected In sharp contrast to Chinese smartphone in many markets, especially being a U.S. brand makers’ boom, the market share of Samsung is with a long legacy in mobile” said Jessica Kwee, a trailing off. Samsung accounted for 23.8 percent of Singapore-based analyst with Canalys. “It is the global market in the third quarter of 2014, something that Lenovo can leverage.” decreasing from the 32.5 percent in the third quarter of 2013, according to the International Data Corp. In the Chinese market, Samsung’s market share shrank to 14 percent in the third quarter of 2014 from the 21 percent in the third quarter of 2013, according to market research and advisory company Canalys. Prominence Xiaomi’s rise has been pretty astounding. Just a few years after announcing their first smartphone model in August 2011, it became the third largest smartphone vendor in the world, according to International Data Corp., and the largest in China, according to Canalys. Smartphone shipments of Huawei, a leading Xiaomi said it sold 61.12 million mobile information and communications technology phones in 2014, up 227 percent. Sales revenue solutions provider headquartered in Shenzhen, totaled 74.3 billion yuan ($12 billion) in 2014, up south China’s Guangdong Province, rose 40 135 percent from 2013. The company hopes to percent to 75 million in 2014. sell 100 million units of smartphones globally in Huawei’s latest models—Honor 6 and Honor 6 2015. At the end of last year, Xiaomi said it had Plus—have made a splash in China and the raised $1.1 billion in a new round of funding, company said sales of its Honor Series, a flagship putting the company at a valuation of $45 billion, series that the company created to compete the highest among all unlisted tech firms. against Xiaomi, increased 30 times in 2014. Despite its outstanding performance last year, Alan Chen, an analyst with TrendForce, a Lei Jun, founder and CEO of Xiaomi Inc. said there market intelligence provider, said in a research is no time for complacence as competition in note that Huawei, Xiaomi and Lenovo will battle to News From China February 2015 Economic Affairs 57 be the top Chinese smartphone vendor in 2015. China. The global market share of Chinese “How Lenovo’s Motorola acquisition plays out smartphone makers combined is quite limited,” and whether Xiaomi can replicate its home Wang said. market success overseas will be key factors in “Huawei has developed its own patented determining who becomes the top Chinese brand chips, but its supply chain lags far behind that of in 2015,” Chen said. Samsung’s. The sales volume of Xiaomi is Prospects increasing rapidly, but its profit margin is very thin, much lower than Samsung.” Wang Yanhui, Secretary General of Mobile Wang said a lack of global sales network and China Alliance, an industrial association in the patents will be major obstacles in the overseas country, said the victory of local brands has forays of Chinese smartphone brands. resulted from their thin profits. For instance, when expanding overseas, “The decrease of Samsung’s market share is Xiaomi started from price-sensitive emerging because the manufacturing technology for markets including India, Indonesia and Pakistan. smartphones has become standardized. After But even so, the company was sued in December Chinese brands have acquired the know-how, they 2014 by Ericsson AB for patent infringement will definitely enjoy a sweeping victory in price- when it tried to expand in India, the world’s sensitive markets with their exceptional high second most populous country. cost-performance ratio. If Samsung doesn’t lower The absence of high-end smartphone models its price, its market share will further decline,” is another reason why domestic makers can Wang said. hardly be expected to compete with Samsung Wang, however, said Chinese smartphone globally. Chinese smartphone makers are mainly makers can hardly be expected to dominate the focused on models priced at below 2,000 yuan global arena. ($322). “The dominance of Samsung is partly “It’s hard to imagine that a smartphone maker attributed to its strong supply chain, and the will be a global success without high-end models,” success of Apple is because of its IOS system. Wang said. Although Chinese smartphone makers have made “If they want to surpass Samsung, they need to certain progress in core technologies, they still do three things first: set up a globalized sales have a long way to go,” Wang said. network, solve the patent problem and focus on “Their status as top smartphone vendors being the runner up to Samsung,” Wang. “To date, globally is backed by their enormous sales data in n o dom est ic m a ker ha s fu lfilled t he 58 Economic Affairs News From China February 2015

aforementioned.” China. Li Yi, Secretary General of the China Mobile Lenovo Internet Industrial Association, said the Founded in 1984 in Beijing, Lenovo Group Ltd. smartphone market as a whole will shrink in has become known to the world primarily as a coming years. leading PC maker. “Desktops used to be popular, but they were Lenovo bought IBM’s PC unit in 2005 for $1.25 replaced by laptops. Several years later, tablets billion and has become the world’s largest seller of replaced laptops. Now, the tablet market is PCs since the third quarter of 2013 by overtaking dwindling. Once-popular consumer electronics Hewlett-Packard (HP). products will always be replaced after three to five In April 2010, Lenovo launched its first years,” Li said. “The smartphone will be no smartphone model. In the third quarter of 2014, exception.” Lenovo ranked No.4 in global smartphone In several years, wearable devices will replace shipment, accounting for 5.2 percent of the global smartphones, and the smartphone market as a market share. whole will shrink, said Li. “Realizing this, global After it bought Motorola mobile handset heavyweights like Apple and Google are all business from Google for $2.91 billion in October transforming. Otherwise, they won’t have any 2014, Lenovo claimed it ranked No.3 in room for development in the future.” smartphone shipment volume globally. By using “Although domestic smartphone makers are Motorola as a springboard to North American and prospering both at home and overseas, their Latin American markets, it plans to sell more than primetime can only last for three to five years. As 100 million smartphones in 2015. the technology further advances, smartphones may not exist in the future. Its functions will be Huawei integrated into a watch or a pair of glasses,” Li said. Huawei Technologies Co. Ltd., founded in Shenzhen, south China’s Guangdong Province in Xiaomi 1987, is a leading information and communi- Xiaomi Inc. was founded in April 2010 by Lei cations technology solutions provider. Its telecom Jun and his friends in Beijing. network equipment, IT products and solutions, On August 16, 2011, Xiaomi’s first and smart devices are used in 170 countries and smartphone debuted. In 2014, Xiaomi sold 61.12 regions. million mobile phones in 2014, up 227 percent. It Huawei took over Ericsson AB to become the hopes to sell 100 million units of smartphones largest telecom equipment manufacturer in the globally in 2015. world in 2013. It has invested heavily in Xiaomi’s product portfolio has been expanded smartphones and accounted for 9 percent of to cover smartphones, tablets and televisions. Due China’s smartphone market in the third quarter of to Xiaomi’s success, Lei was named “China’s 2014. Businessperson of the Year 2014" by Fortune

Double-Edged Sword

by Wang Jun

Finally the European Central Bank (ECB) recovery, just as the United States did after decided to follow the decision of Federal Reserve quantitative easing (QE), but far away in China, the (Fed) to print money massively. It is uncertain yuan has been affected. whether the eurozone can brace powerful Mario Draghi, President of the ECB, News From China February 2015 Economic Affairs 59 announced on January 22 that the ECB would launch an expanded asset purchase program. Under this program, t h e c o m b i n e d m o n t h l y purchases of public and private sector securities will amount to 60 billion euros ($68 billion). The program will most likely be in effect until the end of September 2016 and will in any case be conducted until the inflation rate is close to 2 percent over the medium term. This means that, altogether, 6.1342 against the U.S. dollar on January 23, there will be nearly 1 trillion euros ($1.13 trillion) according to the China Foreign Exchange Trading in the market. System. The yuan’s rate against the U.S. dollar The euro fell sharply after the ECB unveiled continued to slump for a second trading day on such a big QE program, falling to an 11-year low of January 26, hitting the lowest level since June $1.13 on January 22. Driven up by the eurozone’s 2014. QE, the central parity rate of the yuan The yuan faces depreciation pressure against strengthened by 1,409 basis points to 6.9795 the U.S. dollar, but with intervention from the PBC, against the euro on January 23, the biggest daily the depreciation won’t be too significant. Further, rise since November 2011 and lower than 7 yuan the yuan exchange rate against the U.S. dollar may for the first time in history, according to figures have two-way fluctuations. In the meantime, since from the China Foreign Exchange Trading System. the yuan is unofficially pegged to the U.S. dollar, it The launch of QE by the ECB, together with the will accelerate appreciation against other U.S. normalizing its monetary policy, will lead to a currencies. stronger U.S. dollar, which may impose downward “The European version of QE will bring more pressure on the exchange rate of the yuan against capital to China, while the expected rate hike in the the U.S. dollar, said Pan Gongsheng, Vice Governor United States may bring depreciation pressure to of the People’s Bank of China (PBC), the country’s the yuan,” said Deng Haiqing, chief analyst of CITIC central bank, at a press conference held by the Securities Co. Ltd., when interviewed by National State Council Information Office on January 23. Business Daily. “Under various pressures, it is still Yuan Under Pressure uncertain if the yuan will appreciate or According to a report by Minsheng Securities depreciate.” Co. Ltd., accelerated QE by central banks of Europe According to Deng, the depreciation of the and Japan will further depress the exchange rates euro and the appreciation of the U.S. dollar will of the euro and Japanese yen; with strong both affect yuan’s exchange rate, and it is still economic recovery and weakened easing uncertain the yuan will appreciate or depreciate. measure by the Fed, the U.S. dollar will become Since the PBC announced an interest rate cut stronger. on November 21, 2014, the yuan has depreciated After the launch of QE by the ECB, the yuan’s rapidly. The PBC figures showed that in December central parity rate weakened by 95 basis points to 2014, the funds outstanding for foreign exchanges 60 Economic Affairs News From China February 2015

fell by 128.91 billion yuan ($21 billion) from the a c c o rd i n g t o d a t a f ro m t h e G e n e ra l previous month, the biggest monthly fall since Administration of Customs. Among the total, December 2003. Deng said the sharp fall of funds China’s exports to the EU totaled $371 billion and outstanding for foreign exchanges may be due to its imports from the EU totaled $244 billion, up 9.4 the PBC’s intervention to alleviate the yuan’s percent and 10.7 percent, respectively. depreciation pressure. “The program will help boost the eurozone’s “Judging from this, the Chinese central bank is economy, increase demand and potentially boost reluctant to see the depreciation of the yuan,” he China’s exports, because Europe is one of China’s said, adding that the yuan’s depreciation may most important trading partners,” Pan said at the impede the process of developing the Shanghai conference. free trade zone and making the yuan an The European QE is likely to further boost international currency. It is not logical that China investors’ confidence and devalue the euro. tries to spur exports by depreciating its currency. Devaluation of the euro and decline of oil prices A report on the Economic Information Daily will intensify the pressure of imported deflation in said that the European QE could intensify the China. competitive depreciation of global currencies. To address the possible risks of deflation and The yuan will also face more depreciation the pressure on economic growth, the PBC may pressure, but the depreciation won’t be further relax its monetary policy, predicted the significant, and it may appreciate against other Economic Information Daily report. It is expected currencies. that the Chinese Government will adopt relaxed or Lu Zhengwei, chief economist of Industrial diversified monetary policy tools to ensure stable Bank Co. Ltd., holds different views. According to economic growth. him, the effective exchange rate of the yuan is not Meanwhile, the eurozone’s QE will further at an equilibrium level now, and it has long been undermine the euro’s position as the world’s overrated. This is also the basic reason why the second largest reserve currency. On the other Chinese economy has not been able to recover as hand, thanks to the yuan’s stable exchange rate, quickly as expected. If the overrating can be China’s high growth speed and large economic modified—through yuan’s depreciation—China scale, its currency is expected to be accepted by will easily resume economic growth above 7.5 more international investors. percent. Lu has a bold estimation that the yuan The ECB’s bond-buying plan will release a will depreciate as much as 5 percent this year. huge amount of liquidity, which will weaken the Impact on China euro and force capitals to flow out and return to the United States. “The large liquidity brought Since the scale of this round of QE is much forth by the new round of QE in the eurozone will bigger than expected, the euro is likely to continue no doubt cause a spillover effect, and the depreciating in the short term, strengthening the strengthening of the U.S. dollar’s exchange rate U.S. dollar. As the yuan is unofficially pegged to the will drive capital back to the United States. All this U.S. dollar, appreciation of the U.S. dollar will also will increase the uncertainty of the international push up the yuan’s exchange rate against other capital flow,” said Pan. The Economic Information currencies, imposing pressure on China’s exports. Daily report said that China may also receive some In the long term, however, economic recovery of these capitals. in the eurozone will increase China’s exports. In When the yuan’s use as a global currency 2014, the EU remained China’s largest trading increases, the euronzone’s QE is likely to bring partner. Trade volume between China and the EU new opportunities for the internationalization of amounted to $615 billion in 2014, up 9.9 percent, the yuan. News From China February 2015 Culture & Life 61

CULTURE & LIFE

The Vitality of a Traditional Art

by Ding Ying

It’s on a Friday night. O v e r 1 0 0 a u d i e n c e members casually sip tea w h i l e t a k i n g i n t h e performance of a comedic dialogue showcasing the t r a d i t i o n a l C h i n e s e linguistic art known as xiangsheng, or crosstalk. Li Ku a n , a 2 8 - ye a r - o l d crosstalk performer, and his partner engage in snappy interactions with the audience while poking fun at one another. Li seizes everybody’s attention when he starts to imitate the aria of a famous Peking Li Kuan (left) and his partner perform in a Beijing theater. Opera master. A ringtone blaring pop person monologue, a two-person dialogue or a music suddenly interrupts proceedings. multi-person performance. Compared to Western Unperturbed, Li Kuan ignores it and finishes his stand-up comedy, crosstalk requires a greater improvisation. “See, although the music number of skills. Performance skills can be accompaniment was wrong, my rhythm was still divided into four categories: talking, imitating, quite accurate, right?” He jokingly remarks to the telling jokes and singing. This art form has audience. attained popularity, particularly in north China, Li Kuan is representative of the new owing to its ability to elicit giggles from generation of crosstalk performers. In this audiences—even radio audiences—instantly, and generation, both performers and audiences have showcase the unique charms of the Chinese varying opinions on this performing art. But this is language. nothing new or especially alarming: The form has “Crosstalk has gone through different periods a long history of evolving with time. of development,” senior crosstalk performer Performance Anxiety Meng Fangui said to Beijing Review. He recalled that in the 1980s, crosstalk experienced a period Crosstalk’s history can be traced back to of blossoming. Many crosstalk masters emerged hundreds of years ago. It began as a folk art and rose to prominence with their various involving singing and talking that originated in popular works, said Meng. With the development north China. Initially, crosstalk was performed by o f T V p r o g r a m s s h o w c a s i n g va r i e t y a sole actor. By the early 1910s, it developed basic entertainment, crosstalk became a kind of performance patterns. It can be staged as a single- entertainment mainly broadcast on TV instead of 62 Culture & Life News From China February 2015

being performed live as it had traditionally been. It was not until the 2000s that the form entered a new period of renaissance. Meng pointed out that TV is a double-edged sword for crosstalk. On the one hand, TV has popularized this performing art, and opened it up to a whole new audience who is for various reasons unable to attend live shows, Meng said. On the other hand, the time constraints inherent in TV broadcasting negate the essence of a form that Senior crosstalk actor Meng Fangui (second right) instructs young performers engages audiences in this manner, backstage. he added. “Although this doesn’t affect crosstalk’s performance The Next Generation skills in an artistic sense, it destroys the completeness of a crosstalk piece,” said Meng. For Li Kuan, crosstalk performance is in his Generally, a complete crosstalk piece should blood, having been born into a family of have an intricate structure comprising dozens of performers in Beijing. “I have been surrounded by minutes of performance. Actors deliver the punch crosstalk every day since I was born. My family, my lines of their jokes in accordance with the relatives and my parents’ friends have all related audience’s reactions and the dictates of comic to this art. I have mastered most of the necessary timing. “When a crosstalk piece is shortened into a skills without special studies,” he told Beijing segment of a TV program, it has to omit a lot of the Review. content it should include,” Meng explained. Li Kuan is the apprentice of Li Jindou, who has “Besides, people have so many entertainment been a friend of the family since Li Kuan was a boy. options now and their attention spans have The obligation to inherit and develop this shortened.” linguistic art in his generation weighs heavily on Li In 2003, veteran crosstalk actor Li Jindou Kuan’s mind. started an initiative entitled Getting Crosstalk “Underlying its jokes, traditional crosstalk has Back Into Theaters, believing this represents the a hidden set of rules guiding performances that on best way to revive crosstalk’s fortunes as a the face of it, seem to be random. A successful performing art. Since then, watching crosstalk in crosstalk must have a core around which actors small theaters has become somewhat a craze in adopt various kinds of skills,” Li Kuan explained. Beijing. Every year, a national crosstalk contest is “But many of today’s crosstalk pieces have a loose hosted by Beijing TV. structure. They taste like fast food instead of a Meng observes that younger generations have well-cooked dish.” better educational backgrounds than his In June 2014, Li Kuan founded a crosstalk club generation did. “I believe they will have a bright named Kuanhe Teahouse. This club performs on future. The only thing I would plead of them is to average 15 times a month in four different small stay away from bad influences such as vulgarity or theaters in Beijing. The club has 50 regular drugs. Maybe the older generation will need to performers, including five famous senior learn from them in the future. Crosstalk is an art performers. But it can sometimes play host to 70 that has continually evolved with each successive performers, because many crosstalk masters like generation,” he said. Meng will give special performances at Li Kuan’s News From China February 2015 Culture & Life 63 invitation. “We are trying to combine traditional performance skills and rules with modern content. In this way, this traditional art can develop into the new era,” said Li Kuan. He said the club doesn’t aim to make a profit but acts as a vehicle to draw audiences to enjoy the charm of traditional crosstalk. Ticket prices for his club’s shows are highly affordable. There are two different ticket prices, 50 yuan ($7.5) or 100 yuan ($15), based on different seating zones, with drinks included. On occasion, the club even gives out free tickets to attract a The crosstalk performers of younger generation. greater audience. When the asked him to teach me as his disciple. But my cost of renting theaters is subtracted, the club can master required that I spend over a year in pay only a very limited salary to its members. different theaters as a free audience member to “Our performers are all diehard fans of this train my sense of this art first. Then he believed I traditional art. Some of them have other jobs, and would be a qualified disciple and accepted me,” they come to my club only for the valuable recalled Jiang. opportunity to perform in a theater and to attain By day, Jiang is a performer in a large-scale experience,” said Li Kuan. His own performing amusement park. He is still a trainee. Song has partner is the student of a well-known Peking been performing in the club since it was founded. Opera performer. Traditional crosstalk requires He also has a job at a wedding planning company. actors to be able to interact with the audience and “The club has provided precious opportunities for nimbly adjust their performances through close young performers like me. The guidance of those coordination with their partners, which calls for successful crosstalk masters, even on very simple ample experience of performing live, he said. issues, can be of lifelong benefit to us,” Song said. Song Xiaofeng and Jiang To Song and Jiang, their Shaofeng are two young daytime jobs are merely a players in Li Kuan’s club. They way o f m e e t i n g t h e i r are the protégés of performers everyday needs so they can who themselves honed their continue to pursue their true craft under Li Jindou. Song was passion of performing born in 1990 in north China’s crosstalk. Their most fervent Hebei Province and Jiang was desire now is to attain more born 1987 in northeast China’s income from performing Heilongjiang Province. In the crosstalk so that they may beginning, both of them were concentrate on refining their merely avid fans of their skills in a performing art masters. with which they have fallen “I was obsessed with my in love. master’s performances and 64 Culture & Life News From China February 2015

Traditional Opera Arts of Hunan Province by Ding Ying

Central China’s Hunan Province has a long history of outstanding opera culture. To d a y, H u n a n ’ s o p e r a traditions have become part of its intangible cultural heritage, and local operas continue to develop and evolve. A Rich Repertoire There are 19 major kinds of local operas in Hunan. These operas not only reflect the wide variety of cultural traditions in the province, but also have connections to Buddhism, Taoism, Confucianism and local religions. Two performers act in a scene from a traditional Hunan Opera play. Hunan’s long-form operas, such as Hunan Opera, Hunan rebuilt based on local culture. Kunqu Opera and Qiju Opera, have been Hunan Opera is popular in east Hunan and the influenced by many of China’s other schools of neighboring Jiangxi and Guangdong provinces. It opera. However, they have been restructured and originated during the Ming Dynasty (1368-1644). Originally, the plays would be love stories or based on morality tales. However, in the 1910s and during World War II, many new plays were c r e a t e d t o c a l l f o r democratic revolution and to rise up against Japanese aggression. In recent d e c a d e s , t h e l o c a l government has tried to revive this tradition by o r g a n i z i n g v e t e r a n performers in collecting and preserving the art form’s traditional works. In May Actresses of Hunan Kunqu Opera. News From China February 2015 Culture & Life 65

2006, Hunan Opera was included in China’s first b a t c h o f s t a t e - l e ve l i n t a n g i b l e c u l t u r a l heritage. Now Hunan Opera has around 700 full- length plays, and a further 500 incomplete ones. Hunan Kunqu Opera is a particularly interesting branch of Kunqu Opera. After Kunqu Opera was brought to Hunan from the late 16th century to the e a r l y 1 7 t h c e n t u r y, performers in the province Performers stage a Hunan Shadow Play show. combined local culture and generally mimic actions which are part and parcel dialect to form a unique addition to Chinese of rural life in Hunan, such as picking tea, pushing opera. a hand mill and rowing boats. Qiju Opera is another form of opera that In addition to these better known schools of Hunan people are proud of. This art form, which opera, there are many minor forms of opera and originated in southwest Hunan’s Qiyang, has a stage performances in Hunan like puppetry and history 400 years longer than that of Peking shadow plays. Hunan Shadow Play was also Opera. Since its inception, Qiju Opera has spread honored in the first batch of China’s state-level to Guangxi Zhuang Autonomous region, Jiangxi intangible cultural heritage back in 2006. Province, Fujian Province, Guizhou Province and even northwest China’s Xinjiang Uygur Heritage Preservation Autonomous Region, and influenced local operas Zou has been study-ing local opera for and plays in these areas. decades. According to his figures, there are only Huagu Opera is a short-form opera that nine professional Qiju Opera troupes today, 30 originated in popular folk tunes in Hunan in the percent the number in 1983, and only five of 18th century, though it gradually gained them are able to put on regular perform-ances. popularity in other provinces such as Hubei, The staging of Huagu Opera performances has Jiangxi, Anhui, Henan and Shaanxi. Zou Shiyi, a also waned, with only 11 active troupes left former researcher with the Hunan Institute of Art, today. Smaller operas may not have a single suggested that farmers originally created the professional troupe dedicated to them. opera as a form of recreation for the working day. Moreover, those troupes suffer from a lack of He explained that, Huagu Opera, whose name performers and lackluster audience turnouts. translates directly as “flower drum opera,” usually To Zou, there must be different protection features flowers from different seasons, the farm measures for operas according to their current work of these seasons, and tales based around states. He suggested that the government should common folk. Its lyrics are generally happy and encourage the development of operas that have humorous. The brisk dance moves of Huagu Opera audiences but can’t generate a profit. Zou also 66 Culture & Life News From China February 2015

stressed that operas that espouse traditional cultural values and are economically viable must give priority to training the next generation of performers. To him, creating new, modern plays instead of insisting on traditional versions is of paramount importance. It was suggested by him that taking influence from foreign operas and other Chinese operas would be helpful to Hunan’s local operas.

Zou is optimistic about A scene of Hunan Huagu Opera. local operas’ future. In his province. view, traditional operas do not lack an audience. Hunan’s local operas have benefited from Moreover, the government has paid more and such policies. Hunan Opera, for instance, went more attention to traditional operas. It has set up through a hard time owing to an influx of modern intangible cultural heritage protection centers culture a decade ago, according to Zhang Kelang, throughout Hunan, which has in turn helped head of the Provincial Theater of Hunan Opera. provide capital and performers for traditional Back then, it lacked both audiences and operas. “Opera will neither wither, nor die,” Zou performers. Zhang’s theater had only 37 said. performers. “A full-size Hunan Opera play To protect local operas, Hunan Province has requires at least 100 participants. We couldn’t also adopted many measures to create a good give a complete performance of a traditional play environment for their development, including at that time,” Zhang recalled. s p o n s o r i n g r e g u l a r Zhang said the theater performances of local has received a huge operas. For example, there a m o u n t o f f i n a n c i a l is a project called “public support in recent years, theater,” which provides and it has invested 9 opportunities to non- million yuan ($1.5 million) professional performers i n t o n e w p l ay s a n d and fans of different local r e p a i r i n g i t s operas to perform in infrastructure. The theater p u b l i c . T h e H u n a n has also trained 37 young G o v e r n m e n t a l s o performers in the past 10 encourages traditional years. “Now, they are the opera troupes to give hope and the future of touring performances in Hunan Opera,” said Zhang. rural areas across the News From China February 2015 Culture & Life 67 Swans Play in Yandunjiao Swan Lake after Snowfall in Shandong

Swans play as snow falls in Yandunjiao Swan Lake after a snowfall in Rongcheng, east China's Shandong Province. The Swan Lake is a major part of the Rongcheng Nature Reserve for Whooper Swans and a nest for thousands of migratory swans from Siberia to spend winter. (Xinhua/Fan Changguo) 68 Tibet Today News From China February 2015

Tourists view swans in snow in Yandunjiao Swan Lake in Rongcheng, east China's Shandong Province. The Swan Lake is a major part of the Rongcheng Nature Reserve for Whooper Swans and a nest for thousands of migratory swans from Siberia to spend winter. (Xinhua/Fan Changguo)

TIBET TODAY

Tibetan Buddhism College Celebrates Losar in Beijing

Beijing, Feb. 16 (China Tibet Online) Monks of competition that was held earlier were also the High-level Tibetan Buddhism College of China released, and eight calligraphy works were celebrated the forthcoming Tibetan New Year awarded prizes. It was the first time the college (Losar) of the Wooden Sheep, as well as the held a Tibetan calligraphy competition to Chinese New Year in Beijing on Feb.15,2015. celebrate the forthcoming Tibetan New Year. Over 100 students and staff of the High-level Monks who won the various games received Tibetan Buddhism College of China participated vouchers to exchange for prizes such as in the activity, including the table tennis matches, backpacks, dictionaries, pillows and toiletries for basketball matches, tug-of-war competitions, daily use including towels, toothpaste, body wash dart games, ring throwing games, word puzzles or shampoo. The college provides free room and and drum-beating with closed eyes. board for every monk; therefore they only need to The results of a Tibetan calligraphy buy some articles of daily use. News From China February 2015 Tibet Today 69

W a n g C h a n g y u , executive vice president of the High-level Tibetan Buddhism College, wrote many scrolls of New Year greetings for the students and teachers of the college. The Tibetan- styled New Year scrolls are a necessity for Tibetan New Year, similar with the C h i n e s e N e w Ye a r, however the traditional T i b e t a n a u s p i c i o u s patterns printed on them make them different.

It is customary for the The monks of the High-level Tibetan Buddhism College of China holding a tug-of-war game to students to celebrate the celebrate the Tibetan New Year (Losar) of the Wooden Sheep and the Chinese New Year, which will fall on Feb.19, 2015. Chinese lunar New Year and the Tibetan New Year go back during the four-month vacation in (Losar) each year, and this year the two were summer. celebrated together in advance as the festivals will At present there are three Tibetan Buddhism fall on the same day. classes in the College: one for the advanced “Tho As the monks come from different Tibetan- Ran Pa” degree and two for the “Nzhing Ram Ba” inhabited areas in western China, it can be time intermediate degree. The monk students of the consuming for them to travel back and forth College come from each of the different sects of between different monasteries in Tibet and Tibetan Buddhism, and from Bonism, which is the Beijing. So they will not go back home for family original religion of Tibet. reunions during Losar, instead they will, as usual

Playing a word puzzle game. Having a basketball match. 70 Tibet Today News From China February 2015 The Life of Padma Chojor, a Layman Chams Artist

Text & Photo by Dralho

Editor’s note: In March 2013, A Comprehensive Survey of the Economic and Social Development of Early 21st Century Minority Areas in China started in Beijing as a special project of the National Social Sciences Fund as well as an important innovation program with the Chinese Academy of Social Sciences. The minority population exceeds 100 million in China, and the development of minority areas relates directly with the building of an all- round better off society by 2020 in pursuit of the realization of the Chinese dream. This survey is planned to shed new light on the conditions of all aspects of social-economic development within these areas and to assist the central government in formulating their development plan. This “big survey” has over 20 subprojects, most of which are expected to be conducted in autonomous regions like Tibet along with some autonomous counties and ethnic townships. One subproject, a comprehensive survey of the economic and social The river valley of Lhodra. development of Lhodra County in Tibet, was carried worship. out by 11 scholars from the Institute of Ethnology There are three neighborhood communities and Anthropology at the Chinese Academy of Social in the jurisdiction of Lhakhang: Lhakhang, Sciences, the Institute of Economics at the Chinese Dulu,and Moinqai. The Lhakhang neighborhood Academy of Social Sciences, the Tibet Academy of community sits on the eastern mountain slope Social Sciences, Tibet University, the Party School of close to where Lhodra River and Penpa River Tibet Autonomous Region, and Yunnan Minzu meet. 776 people from 226 families live there. University. In July of 2014, they went to Lhodra Humid and densely forested, it is rich in resources. County in Lhoka Prefecture to do fieldwork and Since ancient times, Lhakhang has been known for learn the social-economic development of the its high-quality timber and woodwares as well as county. They conducted a large number of home for being a center of trade and commerce in visits in the town of Lhakhang and the other southern Tibet. townships of Ser, Penpa, and Drari and obtained 72-year-old Padma Chojor is a local celebrity large amounts of relevant data. in the town of Lhakhang. He is a bearer of the Lhakhang is the oldest town in Lhodra County. It is national-level intangible cultural heritage known named after Kongting Lhakhang, a shrine built as Layman Chams. During my trip to research the during the reign of Songtsen Gampo to drive away small-scale local border trade with Bhutan, evil spirits. The shrine has gone through many someone from the neighborhood community vicissitudes in its millennium of existence and still recommended that I go and talk to Padma Chojor, stands in the heart of the town today, undergoing a who went to Bhutan when he was young and knew new round of renovation. Every day in the history of the border trade very well. midsummer, a continuous stream of believers On the afternoon of July 18, 2014,this reporter from Qinghai and Sichuan drive a long way here to paid a visit to Padma Chojor to hear him recount News From China February 2015 Tibet Today 71 his trips to Bhutan with his father several decades ago and also listen to him talk about his life today. “My name is Padma Chojor. My family has been l iv i n g h e r e f o r m a ny generations. My wife, Sonam Lhadron, is 70. She was born here, but her family was not originally from here. Her p a r e n t s w e r e p o o r wanderers who were passing by and decided to stay. Lhakhang, which the locals still refer to as Drupa, is very close to Bhutan, only some The beautiful Lhakhang. 30 kilometers away. The two sides have different climates and different went to Bhutan with my father. We were in a team products. They have traded with each other since of five, all of which were relatives. We walked ancient times. The trade link was the Lhodra river along the river driving the loaded donkeys. There valley, and the main trade season is fall and winter, was no fixed trade spot in Bhutan. We just walked when the water level is relatively low, making it along the upper reaches of the Lhunzi Zongguri easier to build temporary bridges across the river. River looking for buyers with the highest bids. The two sides would both build bridges over the Bhutan then was not unlike here, with tiny villages rivers in their countries. It is said that 24wooden of only several houses. The goods we carried were bridges were required if all the roads were to be mostly pulu, hats, dried fish (made from fish linked, which would require some serious effort. caught in the Yamzhog Yumco by the people of The governor of Lhakhang was responsible for Nanggarze, which could be used for medicinal construction on our side, and he usually assigned purposes), and butter (the Buddhist Bhutanese do the work to one village. The experienced bridge not slaughter livestock, only eating pork or lamb builders in the village would then start to work. after the animals die of old age and almost free of When all the bridges were finished, they would fat, leading to the people not having enough fat in chop down a big tree and drift it down the river. their diets), with us sometimes smuggling a little When people on the other side of the river saw the bit of salt. Tibetan salt for Bhutanese rice was a log, they would know the bridges were all ready, major item in bilateral trade then, but the and trade could then begin. The bridges at that Lhakhang Dzong had a monopoly on the trade, time were all rather low. Once spring came, the meaning non-government trade of salt and rice river would rise and crash the wooden bridges, was banned. The goods we took back consisted of rendering the valley impassable. New bridges Bhutanese wooden bowls, wooden boxes, and would then have to be rebuilt the next fall. dyer’s madder (used by monks to dye their robes). “The members of my family were subjects of Sometimes we also smuggled in some rice and the Lhakhang Dzong and worked as corvée corn, but this was punishable if discovered by laborers for the government. I had four brothers authorities. On my first trip, we brought back 25 and sisters. My family did own some land, but we metric pounds of rice on the two donkeys we were taxed so heavily that we did not have enough loaded with goods. food, so we had to trade with the Bhutanese for “Many Bhutanese came over to trade, too. In necessary food supplies. When I was about 7 or 8, I winters, more than 200 of them would come. 72 Tibet Today News From China February 2015

A view of Lhakhang Town.

There was no trading market here, either. The committee, I joined the Communist Party of China. Bhutanese all stayed in the villagers’ homes. My wife and I are both in our old age and have both There were several big traders with close links retired. We have 3.6864 square meters of land, but with the Bhutanese. The sister of the King of we do not do farm work ourselves. Instead, we Bhutan was also in trade, and she had a partner on lease the land to others on a yearly rent of 500 this side. Bhutanese merchants often traveled kilograms of wheat, which is more than enough for back and forth between Tibet and Bhutan during us. For the two of us, our main job is to look after the trading season. The Khaju monastery located our own orchard, which is full of apples, peaches, above our village was in trade, as well, and it was and Sichuan peppers. We do not expect to make financially powerful. Its monks sometimes went any extra profit. It is just something for us to do. To to Assam in India to purchase goods such as silk, be able to see the fruit trees blossom and bear fruit satin, and other fabrics. is a wonderful experience. Subsidies granted for “In the 1959 Tibetan rebellion, many people policy considerations from the state account for a fled the country through here. Later, the military big chunk of our income. My wife and I are both strengthened the border control, and there was a veteran CPC members and cadres (with Party gradual drop in trading activity. Since the start of standings of more than 30 years), so each of us has the Chinese economic reform, some Bhutanese a monthly allowance of 300Yuan, adding up to started to come in the summer again, but in 7,200 a year for the two of us. Those over the age of smaller groups than before. I heard that more of 60 receive a monthly pension of 55 Yuan, making them went to the commodity fair near the Sakhar 1,320 for us in a year. Border residents have a Guthok Monastery in Ser Township. yearly allowance of 1,200, so we also are able to “In my younger days, I used to be a member of receive 2,400 for that. I was named a bearer of the local militia and a leader of the village branch autonomous region-level intangible cultural of the Communist Youth League of China. Later, I heritage in 2011, receiving a yearly allowance of worked for 15 years in a power station. During my 5,000 Yuan. In 2013, I became a national-level tenure as a member of the local public security News From China February 2015 Tibet Today 73 bearer of intangible cultural heritage. Now I enjoy an allowance of nearly 10,000 for that. So, in total we have got, an income of almost 20,000 Yuan, which is enough for us to lead a comfortable life. “I have five children, two boys and three girls. My elder son is an abbot of the Khaju Monastery; the younger one is a driver. My three daughters are all married now; their families are doing pretty well and do not need our help. My priority now is to teach some young men of the local Layman Chams and make sure the art form can be carried forward for future generations. Besides, the village committee and the village Party branch often come and seek our advice on village affairs. We just tell it like it is. That is what we can do for the village. “In recent years, a working group has been staying in the village. They have started various construction projects here after consulting with us, while also promoting government policies. In the first year, they concentrated on developing courtyard economy projects. They secured a fund Padma Chojor and his wife Sonam Lhadron. of 400,000 Yuan and used it to help villagers by encouraging them to raise cows, Tibetan chickens, and tractors. It’s faster and more efficient. This and Tibetan pigs. In the second year, the focus was year, their plan is to build sheds for livestock and on building the rural roads. Since many orchards dig irrigation canals for orchards. These projects in the village were on the mountains, fruit could are closely related to the villagers’ livelihood and only be moved by yaks or people, and there was a are welcomed by us all. We hope policies like this big loss of fruit during transportation. Now that a can continue. good road is built, we can transport fruit on trucks “Those who have been here all sing praise of L h a k h a n g ’ s n a t u ra l beauty. They adore the green hills and the flowers everywhere. We have been living here all our lives,so we have become kind of immune to its beauty. As the saying goes, the world is an unpredictable place; everything changes. Nevertheless, looking back at the changes in the past several decades, we have nothing to complain about. We are enjoying Padma Chojor, Sonam Lhadron and the author. our lives now.” 74 Flights Between China and India News From China February 2015

ROUTING FLIGHT NO. DEPARTURE TIME ARRIVAL TIME FLIGHT DATES

(NOV2014-MAR2015)

New Delhi-Guangzhou CZ3028 12:45 19:50 Daily

Guangzhou - NewDelhi CZ3027 7:30 11:30 Daily

New Delhi-Guangzhou CZ360 23:40 6:50+1 Daily

Guangzhou - NewDelhi Cz359 18:50 22:30 Daily

Schedule of China Southern Airlines Flights (Summer Season)

ROUTING FLIGHT NO. DEPARTURE TIME ARRIVAL TIME FLIGHT DATES

(NOV2014-MAR2015)

New Delhi-Guangzhou CZ3028 11:50 19:30 Daily

Guangzhou - NewDelhi CZ3027 7:30 11:50 Daily

New Delhi-Guangzhou CZ360 23:10 6:50+1 Daily

Guangzhou - NewDelhi Cz359 18:50 22:10 Daily

China Eastern Time Table

Delhi-Shanghai(Pudong) Flight Number Dep\ Arr Frequency Aircraft Remarks

1APR,2015-31OCT, 2015 MU564 0230 1100 Daily Airbus 330-200

Shanghai(Pudong)-Delhi Flight Number Dep Arr Frequency Aircraft Shanghai 31MAR,2015-31OCT, 2015 MU563 2110 0125+1 Daily Airbus Pudong: 330-200 Terminal-1

Kolkata-Kunming Flight Number Dep Arr Frequency Aircraft Delhi IGI: Terminal-3 1APR,2015-31OCT, 2015 MU556 0035 0510 Daily Boeing 737 Kolkata NSCBI: Kunming-Kolkata Flight Number Dep Arr Frequency Aircraft Terminal-2

1APR,2015-31OCT, 2015 Mu555 2355 2345 Daily Boeing 737 News From China February 2015 Flights Between China and India 75

Address and Contact Numbers of Chinese Airlines 76 Book Review News From China December 2014

BOOK REVIEW

Dear Readers, China is attracting growing attention worldwide. The world wants to know what changes are in progress in China, and what impact they will have on the rest of the world. To respond to rising international interest and to enhance the rest of the world's understanding of the Chinese government's philosophy and its domestic and foreign policies, the State Council Information Office, the Party Literature Research Office of the Communist Party of China (CPC) Central Committee and the China International Publishing Group have worked together to produce this book --- The Governance of China. You can come to get the book for FREE, or ask for a VPP service as you need. Please email us first to reserve the book providing the serial No. Hope to hear from you in the coming future. Your comments and suggestions on NFC are also greatly welcome. Editor News From China E-mail: [email protected] Address: 50-D, Shantipath, Chanakyapuri, New Delhi-110021 Tel: 0091-11-26116683

FOREWORD

Since the 18th National Congress of the Communist Party of China (CPC) held in November 2012, the new central leadership with Xi Jinping as general secretary has led the whole Party and the people of China in confronting the problems and challengers they face: to drive reform and opening up to a deeper level, to modernize the national governance system, and to marshal their enormous strength behind the Chinese Dream of the great rejuvenation of the Chinese nation. As general secretary of the CPC Central Committee and president of the People's Republic of China, Xi Jinping has delivered many speeches on a broad range of issues. He has offered his thoughts, views and judgments, and answered a series of important theoretical and practical questions about the Party and the country in these changing times. His speeches embody the philosophy of the new central leadership. The book is a compilation of Xi Jinping's major works from November 15,2012 to June 13,2014. It includes speeches, talks, interviews, instructions, and correspondence. The 79 pieces are arranged in 18 chapters, and notes are added to help readers understand China's social system, history and culture. News From China February 2015 CCTV News 77 78 CRI CIBN News From China February 2015

Postal Regd. No. DL-SW-1/4034/15-17 R.N.I. No. 47440/88 February 2015

A snow scenery of northeast China's Jilin Province.

Published, Printed and Edited by Mme. Xie Liyan on behalf of the Press Office of the Embassy of the People’s Republic of China, 50-D, Shantipath, Chanakyapuri, New Delhi-110021. Tel: 26881249, Fax: 26882024 Printed at A.K. Printers, S-217, Bank Street, Munirka, New Delhi-110067, Ph: 9818114996 Chinese Embassy Website: http://in.china-embassy.org E-mail: [email protected] Website of Foreign Ministry of China: www.mfa.gov.cn E-mail:[email protected] www.fmprc.gov.cn

PDF Version of this Issue is available at http://in.china-embassy.org