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VOL. XXVIII No. 8 August 2016 Rs. 20.00 2
Chinese Foreign Minister Wang Yi sees a photo exhibition Mr. Liu Jinsong, Charge d'Affairs of Chinese Embassy, organized by Chinese Embassy during his visit of India . delivered a speech on China's Security and Diplomatic Doctrine at National Defense College of India .
Mr. Liu Jinsong, Charge d'Affairs of Chinese Embassy, Mr. Liu Jinsong, Charge d'Affairs of Chinese Embassy, attended a seminar on China-India relations organized by attended a seminar on China-India relations organized by The Institute for Defence Studies and Analyses. Institute of Chinese Studies .
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New Delhi, Aug. 13 (Xinhua) — The Indian prime minister said Modi said he cherishes the Indian Prime Minister Narendra his country and China need to boost friendship with Chinese leaders, and Modi met here Saturday with communications and mutual looks forward to exchanges of views Chinese Foreign Minister Wang Yi support to ensure successes for the on further development of India- and the two sides agreed to G20 summit scheduled next month China ties with Chinese leaders on strengthen mutual support over the in China’s city of Hangzhou as well occasions including the G20 summit successful organization of the as the BRICS summit to be held in and the BRICS summit. upcoming G20 and BRICS summits. the Indian state of Goa in October.
4 News From China August 2016 Wang Yi’s Visit to India
The Indian side is glad to see For his part, the visiting Chinese to play a more positive role in relations with China achieving all- foreign minister said relations regional as well as international around development in recent years, between China and India kept good affairs. The development of both Modi said. He noted that India momentum in recent years and have China and India is conducive to the attaches great importance to achieved all-around and rapid better balance and stability of world relations with China, and the stance progress. Common interests powers, he noted. of viewing and treating the bilateral between China and India far exceed relations from a strategic height has their differences, and the need for Wang stressed that amid the not changed. cooperation far exceeds the challenges that the global economy competition, said Wang. currently faces, it is highly important to He added that the strengthening ensure the successful organization of of cooperation between India and The foreign minister said China the G20 and BRICS summits. China is China will provide aspirations for always welcomes the development willing to boost mutual support with other developing nations. and rise of India, and supports India India for this end, he said. CHINA, INDIA PLEDGE TO BUILD CLOSER PARTNERSHIP, ENHANCE PRAGMATIC COOPERATION
News From China August 2016 5 Wang Yi’s Visit to India
New Delhi, Aug. 13 (Xinhua) — interests of emerging markets and have much more common interests China is ready to build closer developing countries. than differences, more needs for partnership with India, and enhance cooperation than competition, while pragmatic cooperation with India in China and India are strategic expressing confidence that the two all fields, visiting Chinese Foreign partners, and China is ready to work sides can hold onto the general Minister Wang Yi told his Indian with India to master the general direction of ties, and refrain from counterpart Sushma Swaraj during course for the development of ties, allowing difference over singular their meeting on Saturday here. build a closer development issues to baffle the general partnership, and expand their all- cooperation. Wang positively reviewed the around pragmatic cooperation, development of China-India ties, Wang said. Swaraj, for her part, said that which he said have been making India has good prospect of the remarkable and comprehensive C h i n a w i l l s t r e n g t h e n development of India-China headways in recently years thanks to communication and coordination relations, and has taken a series of joint efforts by both sides. with India to render both the measures to encourage Chinese upcoming Group of 20 (G20) investors and promote bilateral Leaders of the two countries summit in China’s Hangzhou and engagement, as as to foster the have maintained close exchange of BRICS summit in the Indian state of further development of ties. visits and communications, the Goa successful, and thus elevate the dialogue mechanism between the status and role of emerging The two sides have good two governments has been ever economies on world arena, Wang coordination on regional and increasing and perfecting, the said. international issues, she said, adding complementariness of the two that India attaches great importance economies has been further tapped The two sides are to enhance to ties with China, and is ready to and a win-win cooperation pattern is cooperation in such fields as railway strengthen the ties in various fields, taking shape, Wang noted. and industrial park construction, s t r e n g t h e n h u m a n i t a r i a n security, anti-terror and anti- exchanges, and properly handle What’s more, the two peoples extremism, and to expand existing problems with patience, as have enhanced understanding and communication and exchanges in as to inject new vitality to the friendship through more and more education and tourism, and facilitate bilateral ties. trade and cultural exchanges and more exchanges among regional communications, he added. governments of both countries, and The two diplomats also jointly safeguard their common exchanged views on specific issues T h e t w o s i d e s h a v e interests as well as those of all on bilateral ties, as well as regional strengthened strategic dialogue on developing countries, Wang and international issues of common such major international issues as propositioned. concern, such as the situation on the climate change and global action, Korean Peninsula and the Briexit. and safeguarded the common Wang said that the two countries CHINA TO COORDINATE WITH INDIA FOR CHINESE LEADER'S ATTENDANCE AT BRICS SUMMIT On August 12, 2016, China said with the Indian side to make BRICS summit. t h a t i t w i l l s t r e n g t h e n preparations for the Chinese leader’s The BRICS summit is to be held communication and coordination attendance at the forthcoming in the Indian state of Goa in
6 News From China August 2016 Wang Yi’s Visit to India
October. countries have enjoyed continual to invest in Goa, they hoped to boost Visiting Chinese Foreign development. cooperation with China in such Minister Wang Yi made the remarks They said they will make their fields as hi-tech, culture and while meeting with Goa’s Governor best efforts for the success of the education. Mridula Sinha, Chief Minister summit. BRICS groups Brazil, Russia, Laxmikant Parsekar and Speaker of Welcoming Chinese enterprises India, China and South Africa. the Legislative Assembly Anant Shet. Wang wished India success in hosting the summit. Goa served as an important bridge connecting East and West in history and it has forged close ties with China, Wang said. The Chinese foreign minister expressed the hope that Goa will take the opportunity to further boost cooperation with China. China is willing to promote people to people exchanges with Goa and widen the cooperation between the two sides, he added. For their part, the governor, the chief minister and the speaker said the relations between the two
News From China August 2016 7 Wang Yi’s Visit to India CHINA, INDIA TO SUPPORT EACH OTHER IN ORGANIZING G20, BRICS SUMMITS: FOREIGN MINISTER
On August 13, 2016, Chinese On bilateral relations, Wang said developing ties. However, the Foreign Minister Wang Yi said in the two countries have made all- common interests far exceed New Delhi that consensus had been around progress in a number of differences, and the need for reached with the Indian side to areas since the establishment of cooperation far exceeds competition. firmly support each other so as to Prime Minister Narendra Modi’s ensure the successful organization government more than two years China and India should not let of the upcoming G20 and BRICS ago. He cited growth momentum of specific differences affect the overall summits. trade, rapid increase of China’s situation of friendly bilateral ties, nor investment in India, railway should they let individual problems Speaking to journalists before cooperation as well as humanity and obstruct the course of cooperation, wrapping up his visit to India, the cultural exchanges as fields that the foreign minister emphasized. foreign minister said the major aim enjoy vigorous growth. of this trip was to conduct strategic He said that the two sides have communications with India ahead The foreign minister stressed reached consensus that individual of the G20 summit scheduled next that as two neighbors that are both problems will eventually be solved month in China and the BRICS the world’s major countries, it is through the strengthening of mutual summit to be held in India in inevitable for China and India to trust and reduction of unnecessary October. come across certain problems in misunderstandings.
8 News From China August 2016 China India Relations China India Relations CHINA'S SECURITY AND DIPLOMATIC DOCTRINE IN A GLOBALIZED ERA – Remarks by Mr. Liu Jinsong, Charge d'Affaires of the Embassy of P.R. China in India (National Defense College of India, July 21, 2016)
Your Excellency Lt Gen NS view, from history till now, the way are attached to our native land, value Ghei, Commandant of the National China views this issue can be peace and are averse to war. Many of Defense College, faculty members summarized in one sentence: a you have been to Beijing and seen and cadets, country may be large, it will perish if the Great Wall. As the most it’s belligerent, the world may be important military facility in ancient Good Morning! peaceful, it is dangerous to forget China, the Great Wall is for defense. war. L i ke w i s e, C h i n a ’s d e f e n s e Today, I’d like to talk about modernization today is for defense China’s security and diplomatic China is primarily an agricultural as well. doctrine in a globalized era. In my nation. Like the Indian people, we
News From China August 2016 9 China India Relations
The Chinese people do not have War, which came out about 200 years invasions from the sea. China was the gene of expansion and before the Arthashastra by the forced to sign nearly 800 unequal colonialism, nor do we have the Indian strategist Kautilya. Napoleon treaties and lost 3 million sq km economic or political need for that. was said to have read The Art of War territory. During the War of Even at ancient China’s heydays in exile on the island of Saint- Resistance against Japanese w h e n A d m i r a l Z h e n g H e Helena, sighing as he read along. Aggression, China suffered 35 commanded the world’s strongest million military and civilian casualty, fleet, they came to India and What best reflects the Chinese 1/3 of the world total casualty countries along the Indian ocean for strategic thinking is the Chinese during WWII. no other purpose than commerce board game Weiqi, or the Game of and friendship. Zheng He and his Go. Dr. Kissinger depicts the Some of you visited Nanjing not super fleet visited Kochi several differences between Chinese and long ago. In the atrocity of Nanjing times. They left no fortresses or Western strategic thinking by Massacre some 80 years ago, the churches, but Chinese fishing nets, comparing international chess and Japanese aggressors murdered which the locals learn to use from Weiqi in his book On China, saying 300,000 innocent Chinese men and Zheng He, which are still benefiting that “ While chess is about the clash women. the local people today. of forces, about decisive battle and the goal of total victory, Weiqi is Three lessons were learned The Chinese people are very more about sustaining war. While in from the pains of wars: first, it’s prudent on war. The ancient Chinese international chess each piece has its essential to build a strong national strategist Sun Tzu said: “The art of definite function and both sides are defense, as weak countries have no war is of vital importance to the clear about the opponent’s strength, diplomacy to speak of and State. It is a matter of life and death, in Weiqi you need to see the value of backwardness leads to defeat. a road either to safety or to ruin. It is each piece on board as well as those Second, it’s critical to open up to the a subject of inquiry and can never be to be filled in.” In Weiqi, a player is world and reform in keeping with neglected.” We believe the nature not overly concerned about winning the times instead of staying behind and cause of the war is crucial and or losing one move, a player could close doors. Third, it’s crucial to no war must be waged without a well lose a battle to win the war”. grow the economy, ensure political good cause. Only an army of justice stability and promote unity, as this is can ultimately win the day, and that Dr. Kissinger said during the the only way to ward off foreign of invasion and injustice may Cold War, Mao Zedong perceived aggression and stand up among succeed for the time being, but is the threats to China through the strong nations. doomed to fail sooner or later. Weiqi concept of “preventing strategic encirclement...... As long as Now 67 years since the The Chinese people emphasize the Chinese government realized founding of New China, we have strategy and wisdom in war. We that other countries have deployed succeeded on all three fronts. Gone believe “the highest form of too many pieces around China, Mao are the days when Western powers generalship is to balk the enemy’s w o u l d t r y t o b r e a k t h e can subdue China by placing a few plans; the next best is to prevent the encirclement”. cannons off the coast of China. junction of the enemy’s forces; the next in order is to attack the enemy’s China is never intimidated by But we haven’t lost vigilance army in the field; and the worst of all encirclement, powerful enemies, or because war has not faded into is to besiege walled cities.”, and the wars imposed on us. history and threats to China’s supreme excellence for political and n a t i o n a l s e c u r i t y h a s n o t military leaders lies in breaking the Since the Opium War in 1840 till disappeared. enemy’s resistance without fighting the founding of P.R. China in 1949, and ensuring national security we had suffered from aggression by – In a globalized world, non- without losing a soldier. These over 20 Western powers, including traditional security threats such as wisdom were included in the Art of Japan, Britain, the US, with 470 terrorism, weapons of mass
10 News From China August 2016 China India Relations destruction, cyber crimes, climate despite its flaws, we have no change, epidemic diseases and China’s constitution intention to overthrow it and build natural disasters keep cropping up, explicitly states that we another one. violent attacks by terrorist should stick to the five organizations respect no border, What is important to know is attacking countries like China, India, principles of peaceful that in an era of economic Pakistan, Bangladesh, Turkey, coexistence and oppose globalization, China can access France and US and hurting people imperialism, hegemony resources, market and technologies both old and young. All countries are and colonialism. in the international market by victims. peaceful means. China has joined over 300 international legal – Gunboat diplomacy and military and security strategy in the instruments and over 1000 inter- power politics remain on the Asia Pacific, uses and hypes up the governmental organizations, foreign historical stage, interventionism and territorial and maritime disputes and trade accounts for over 40% of u n i l a t e r a l i s m f i n d n e w orchestrated the political farce of China’s GDP and over 60% of manifestations. Some country the South China Sea arbitration, in major resources we need are wantonly use force on countries that order to accuse China of not abiding imported. do not obey it and claims that it is the by international law and rules and only maker of international rules. It sow discord and conflicts between China maintains that disputes stirs up color revolutions an China and its neighbors. should be resolved by peaceful preaches that “human rights above m e a n s t h r o u g h f r i e n d l y sovereignty”. We don’t think this is How does China perceive and consultations by states directly right. react to such complex situation and concerned, which is also the position challenges? This a primary question of many Asian countries including – Some external power, under for the Chinese, and one of interest India. China’s non-participation, the pretext of surmise excuses, to many countries including India. n o n - a c c e p t a n c e a n d n o n - deploys the Aegis Ashore ballistic recognition of the arbitration award missile defense system in Europe Our answer to this question is as of the South China Sea arbitration and plans deployment of the follows: tribunal is in itself an act of Terminal High Altitude Area upholding international rule of law. Defense (THAAD) in Northeast First, China will be committed The arbitration court has been Asia, this severely violates the to peaceful development. This is engaged in ultra vires and power strategic security interests of because at home, China still is a abuse since its establishment, it has regional countries. The long distance developing country and will remain violated China’s rights under the UN precision strike weapons developed so for long. To grow the economy Convention on the Law of the Sea by some countries, such as the global and improve people’s life is still our (UNCLOS) and aggravated regional prompt strike system, may seriously top priority. China’s constitution tension. damage the strategic balance and explicitly states that we should stick trigger a new round of arms race.” to the five principles of peaceful China will not alter its evaluation China and Russia responded coexistence and oppose imperialism, of the security environment or strongly to this tendency in the Joint hegemony and colonialism. On the change its consistent diplomatic and Statement on Strengthening Global external front, China believes that security policies for the arbitration Strategic Stability released last peace and development is the mega- farce. We will continue to abide by month. trend of the times, the security and uphold international law environment of Asia Pacific in on including the UNCLOS, safeguard – Some country, in order to play the whole stable and a world war is rules and mechanisms on disputes, the role of the so-called “offshore not in the horizon. China is a promote joint development and balancing” proposed by Mr. participant, builder and reformer of cooperation and ensure the freedom Brzezinski and promote its own the current international system, of navigation and overflight enjoyed
News From China August 2016 11 China India Relations by all countries. The freedom of return as good as one receives. This security concept has been navigation and overflight and other embraced and promoted by the rights enjoyed by India in the South China will firmly protect its core S h a n g h a i C o o p e r a t i o n China Sea have will be fully national interests, including Organization, to which India will guaranteed, both now and in future. sovereignty, national security and become an full member. unity, territorial integrity, the Second, China is committed to political system enshrined in China’s Fourth, good-neighborliness. an independent foreign policy. We Constitution, social stability and As the ancient Chinese saying goes, do not seek hegemony, build other basic guarantees for associating with benevolent alliance, or export ideology. We sustainable economic and social gentlemen and befriending good determine our position on the merits development. In this regard, the neighbors is a country’s treasure. of an issue itself and will not yield to Taiwan question, Tibet question, Without a tranquil neighborhood, a external pressure. China do not play South China Sea issue and Xinjiang country can not focus on any other countries against each, nor do question no doubt involve China’s development. India is China’s we permit other countries to play the core interests. friendly neighbor. As Chairman Mao China card. China has suffered pointed out in the 1950s, we shall not enough from hegemony and power China adheres to the holistic turn friends into enemies, this is our politics, we will not do onto others security concept with people’s national policy. what we do not want others do onto security, which has political security us. This is our diplomatic philosophy and economic security at its heart At present, China and India and our pledge to the world. and encompasses military, cultural, h a v e r a r e d e v e l o p m e n t social security and the promotion of opportunities. The center of gravity Third, China advocates the new the international security. China in moving to the Asia Pacific while security concept. On the conference approaches security of land and sea, China and India are becoming the celebrating the 70th anniversary of traditional and non-traditional, dual engines of world economic the founding of the Communist internal and external in a holistic g r o w t h . C o m p a r e d w i t h Party of China (CPC) July 1st this manner, without neglecting any conventional powers, our growth year, President Xi Jinping said that respect. trajectories are heartening, despite China does not covet other some ups and downs. countries’ rights and interests or China advocates an Asian envy other countries’ development, security concept featuring common, Population used to be a burden but China will never give up its lawful comprehensive, cooperative and on development, but given the lack rights and interests. Chinese people sustainable security, advocates of working population, aging do not believe fallacy, nor are we consultation and dialogue rather population and low birth rate in afraid of evil forces. Chinese people than threat of force, win-win developed countries, a young, do not make trouble, but we are no cooperation instead of zero-sum healthy population with purchasing cowards when involved in trouble. games, openness and inclusiveness power and creativity has become the No country shall expect China to rather that seclusion and exclusion. most scarce resource. China and trade on its core interests or swallow India are richly endowed in this the bitter consequences of violating respect. China’s sovereignty, security and No country shall expect development interests. Late Premier China to trade on its core A new round of scientific and Zhou Enlai once summarized interests or swallow the technological revolution and China’s diplomatic philosophy as bitter consequences of industrial transformation is brewing, follows: do not impose your will on featuring new technologies such as others, make necessary retreat to v i o l a t i n g C h i n a ’ s 3 D p r i n t i n g , 5 G avoid unnecessary conflicts, do not sovereignty, security and telecommunications, the Internet of make the first move, gain mastery development interests. Things, cloud computing and only after the enemy has struck, and robots. China and India embrace the
12 News From China August 2016 China India Relations latest technologies at nearly the same for a multipolar world, which is “Belt and Road Initiative” is not time with the developed countries, definitely better than a uni-polar or China’s initiative alone, but the and we have enterprises and bi-polar one. And the symphony of common action and multilateral entrepreneurs comparable to those all BRICS countries and emerging initiative of over 70 countries and in developed countries, so we have markets is better than the solo of international organizations. China the potential to overtake them down one country. China is glad for India’s sees India as an important the road. development and is delighted to see cooperation partner and values the economic achievements of communication with India on this However, the market, fund, India. We hope India play a more initiative. We are ready to align the human resources and wisdom of constructive role in the world arena. “Belt and Road Initiative” with one country are not enough, and the India’s development strategies, and voice of one country is not strong China does not intend to we hope India will actively join this enough. We can’t realize the “Asian dominate or monopolize Asian great initiative of the century. Century” and the rise of BRICS affairs, we believe Asian affairs countries as a whole without the rise should first be handled by Asians the Chinese enterprises, provinces of both China and India or our Asian way, and emphasize equal and cities are actively participating in strategic cooperation. Our consultation and an open development programs like “Make cooperation in both hardware and regionalism. China has never in India”, “Smart Cities”, “Skill software and the interplay of the thought of containing or balancing India” and “Swachh Bharat”, and we dragon and the elephant has India, and there is no such thing as are ready to assist India in changed the world and will continue the “Pearl String Strateg y” developing civil nuclear energy. to do so. whatsoever. Nor does China believe M o r e a n d m o r e C h i n e s e that India will allow itself to be used businessmen have come to invest in That is why the leaders of our as a chess piece to contain China. India, with an accumulated two countries have both seriously Such phrases of the colonial era as investment of over 4 billion US stated that, when China and India “sphere of influence”, “back yard” dollars while the bilateral trade speak with one voice, the world will or “buffer zone” shall be removed volume between China and India has listen. from the diplomatic dictionaries of exceeded over 70 billion US dollars. China and India. Our two countries have become Indeed, there are some issues more and more interdependent between China and India. To find a China is keen to promote economically, we are in the same fundamental solution to these issues, connectivity across the Eurasia supply chain, industry chain and it is essential to have strategic mutual continent and its adjacent oceans. value chain and have more trust. The English philosopher Lord cooperation than competition. Francis Bacon wrote, “There be To foster and enhance strategic three things which make a nation Two years ago, President Xi mutual trust, we first and foremost great and prosperous; a fertile soil, Jinping and Prime Modi reached an need to embrace the faith that we do b u s y wo r k s h o p s a n d e a s y important agreement to open a new not pose threats to each other. This conveyance of men and things from yatra route for official Indian yatris has been written into the joint one place to another.” The “Belt and to visit Kalish and Manasarovar in statements between our two Road Initiative” is meant to achieve Tibet through the Nitu La pass. countries. However, to embed it in exactly what Bacon described. The There will be 350 Indian official our minds and put it into practice Chinese idea is simple, we want to yatris going through the new route takes more hard work. make the land and sea routes of the this year. Everytime the yatris realize Eurasia continent smoother, so that their life dreams, their eyes are filled China never regards India as a the economies of inland and remote with joyful tears. In the future, there threat, but a strategic partner in areas can grow, and the economic will be more Indian yatris visiting regional and international affairs. and cultural ties of countries across Kalish and Manasarovar and you are China and India are important forces the continent become closer. The welcome to join them.
News From China August 2016 13 China India Relations
There is a long indefinite We may have different views on hand joint military exercise, and our boundary between China and India, other issues in the bilateral relations, leaders have sat together to discuss but over the last decades, not a single but we both believe we should adopt international situation. All these are shot has been made along it. This is a an attitude of mutual respect, unimaginable before, but we have a miracle in international relations, u n d e r s t a n d i n g a n d mu t u a l lot more to do together. which reflects the wise leadership of accommodation, bear in mind the our leaders and the discipline of our overall and long-term interests, keep China and India has a historical soldiers. We have signed the patient and be confident. New Delhi ties of over 2000 years. As Prime Agreement on the Maintenance of is close to Beijing, it takes only 6 Minister Modi said, China and India Peace and Tranquility along the Line hours direct flight to reach each are like “one spirit, two bodies”. We of Actual Control in the India-China other. I really hope our government are neighbors forever, as the famous Border Areas, put in place a host of officials and military officers travel Chinese scholar Ji Xianlin said, confidence building measures in the to and see more of each others’ China and India are made to stand military and border defense areas. country and engage in candid and up in Asia together. We have signed the Agreement effective dialogue. In coping with between the Government of the tough issues, we should not be Someone used to ask the British Republic of India and the driven by the public opinion or mountaineer Mallory, the first Government of the People’s follow your feelings, I hope more person attempted to top the Mount Republic of China on the Political operation space can be left for the Everest, “Why did you want to climb Parameters and Guiding Principles diplomats. Mount Everest?” Mallory gave an for the Settlement of the India- unexpected but meaningful reply, China Boundary Question and are On sensitive issues like defense “Because it’s there”. talking on the framework for a and anti-terrorism, China and India settlement. The boundary question also have exchange and cooperation If someone asks me: “why must can only be solved through mechanisms. Commanders of China and India get along well”? My negotiation and must be effectively adjacent military areas have answer will be, because we are here. manged before final solution, we exchanged visits, Chinese warships must not let the boundary question have taken part in the International Thank you! spill over into the overall picture of Fleet Review in India, our soldiers China-India friendship. have trained together in the hand-in- WORLD FOCUS ON TWO SUMMITS by Cheng Guangzhong
The 11th G20 summit and the was far lower than expected and contribution to the world economic 8th BRICS summit will be held in the some emerging markets are still in growth rank the first and the third, near future in China and India recession. The whole world are respectively. When Asia, especially respectively. worrying that where our economy China and India, have become the will move forward, or whether there major engines of world economy, From whatever perspective, the will be more “Black Swan” events the two upcoming two summits in two summits are both held at the like “Brexit”. Asia is emerging as a Asia will naturally draw the attention right time and right country. More new center of global economy. of the whole world. than eight years since international China and India are now the second financial crisis, especially since this and the seventh largest economies in Hangzhou, the capital of year, world economic growth has the world, whose economic growth Zhejiang Province of China, is the been sluggish. American economic rates rank the second and the first host city of G20 summit 2016, growth in the first half of this year among the major economies, whose which is famous for the West Lake,
14 News From China August 2016 China India Relations
G20 Host City Hangzhou
Longjing tea and beauties. President cooperation. At present, the BRICS countries will unite together Xi Jinping has made it clear to the preparatory work of the summit has and plough though the waves, world that China’s general ideas of been basically completed. It is regardless of the negative voice hosting the summit is innovation, believed that Hangzhou summit will toward BRICS. Third, as Goa is a reform and development. Under the s t r e n g t h e n t h e e c o n o m i c colony of Europeans which was theme of “Toward an Innovative, cooperation among the G20 recovered by India in 1960s, holding Invigorated, Interconnected and members, as well as between the a summit there demonstrates that Inclusive World Economy”, developed countries and the India values independence and Hangzhou Summit is likely to emerging market countries. It will freedom and is willing to play a achieve nearly 30 major results. In promote the transition of the G20 greater role in promoting more just terms of the general direction, we from a crisis responding mechanism and reasonable international order. will forge new impetus to promote to a long term mechanism of global Preparatory work of Goa summit is the robust, sustainable and balanced economic governance, which will f o c u s e d o n d e v e l o p m e n t , growth of the world economy bring confidence and hope to the digitization, urbanization and the through advocating innovation. We weak world economy. people’s livelihood, including areas will come up with new proposals to like agriculture, services, trade, resolve various difficulties faced by In the view of a Chinese customs, science, technology, drug current economic and financial diplomat, there are at least three control and health, which is in sectors through advancing structural significances of the BRICS summit accordance with the development reform. We will also explore a new to be held in Goa. First, Goa is level and need of the BRICS prospect in leading the global famous for beach, seascape and countries. Taking smart city as an implementation of the 2030 Agenda shipping. Holding a summit there example, China, India and South for Sustainable Development reflects the hospitality of the Indian Africa are all in the process of rapid through enhancing development people. Second, it shows that the urbanization. BRICS summit will
News From China August 2016 15 China India Relations help its members learn from each development of the BRICS vision to the BRICS, Asia and the other and achieve common progress countries, as well as improving world. on urbanization. Besides, it is global governance. believed that the Goa summit will (Mr.Cheng Guangzhong is the Minister certainly put forward good As the focus of whole world, counselor of Chinese Embassy in India ) proposals on tackling common the two summits will definitely bring challenges and promoting common new momentum, confidence and
Glimpse of Goa MILITARY ATTACHE WANG XIAOJUN DELIVERED A SPEECH AT THE 89TH ANNIVERSARY OF THE FOUNDING OF THE CHINESE PEOPLE’S LIBERATION ARMY
Respected Commodore Raina, Good Evening the Founding of the Chinese Respected Charge d’Affaires, Mr. People’s Liberation Army. I would Liu Jinsong, It is my great honour to like to take this opportunity to Distinguished Guests, Ladies and welcome all of you for joining us to express my sincere gratitude to Gentlemen, celebrate the 89th Anniversary of India, Indian people and Armed
16 News From China August 2016 China India Relations
Forces for hosting me since I Training will be continued in India China fir mly defend its assumed the office one year and by the end of this year. Armed forces territorial sovereign and maritime seven months ago. of China will continue to increase rights and interests. As for the so- pragmatic cooperation and mutual called arbitration of South China Sea 2016 is an important year for trust with Indian counterpart. award case brought unilaterally by Sino-India relations. In May, former Government of Philippines, President of India, His Excellency It is China’s unshakable national China has stated tome and again its Mr. Pranab Mukherjee paid a commitment and strategic choice to stand of non-acknowledgement, successful official visit to China. In take the road of peaceful non-participation, non-acceptance September, Indian national leader is development. China unswervingly clearly. China will never accept any planning to attend the G20 Summit pursue an independent foreign kind of dispute settlement by third in Hang Zhou, China. In October, policy of peace and a national party and will never accept the national leader of China will attend defense policy that is defensive in settlement plans or ideas imposed the BRICS Summit in Goa, India. nature. It is also a strategic task of upon China. On the military side, Defense China’s modernization drive as well Minister if India, Mr. Parrikar visited as a strong guarantee for China’s China will continue to talk China in April with abundant fruits. peaceful development to build a directly with relevant parties and try It was my honor to accompany him strong national defense and the bests to solve the South China to visit Beijing, Shanghai and powerful armed forces which are Sea dispute peacefully on the basis Chengdu. The Chiefs of Indian commensurate with China’s of respecting historical facts and Army, Navy and Air Force are also international standing and meet the international laws. China respects planning to visit China in the near needs of its security and and supports the freedom and safety future. Besides, the 6th Hand in development interests. of navigation and over-flight in Hand Army Anti-Terror Joint South China Sea according to
News From China August 2016 17 China India Relations international law, and would like to readiness system, and has decided to frequent national disasters. cooperate with any other coastal lead in setting up a permanent countries and international society peacekeeping police squad and build Being a soldier with more than to ensure the Sea Lane in that area a peacekeeping standby force of 40 years of service in PLA, I am safe and unimpeded. 8000 troops. deeply moved by the courage, selflessness and dedication displayed China’s Armed Forces have China is one of the countries by the men and women of the always been a staunch force most vulnerable to natural disasters. Armed Forces of our two countries. upholding territorial sovereignty and China’s Armed Forces has acted as Let’s hail and salute them. maritime rights and interests as well the shock force in emergency rescue as the world peace and regional and disaster relief. Even at this In closing, I sincerely wish the stability. China has been one of the moment, numerous personnel of relationship between China and India major countries to send its troops Chinese troops are still busy rescuing continues to progress and our two and offer financial aids to our people affected by floods, armed forces everlasting relationship! inter national peacekee ping landslides in the area of Southern operations. Last year, President Xi and Eastern parts of China. I think May you all be blessed with Jinping declared solemnly in the HQ in this regard, our Indian colleagues good health! of UN that China will join the new would feel the same way, to try to UN Peacekeeping capability evacuate Indian civilians affected by Thank you.
18 News From China August 2016 External Affairs External Affairs CHINA FOCUS: XI CALLS ON CHINA, U.S. TO RESPECT EACH OTHER'S CORE INTERESTS
On July 25, 2016, Chinese Xi made the remarks when outweigh their differences, Xi said, President Xi Jinping called on meeting with U.S. National Security noting that both sides needed more China and the United States to Advisor Susan Rice at the Great Hall mutual trust and cooperation. effectively manage their differences of the People in Beijing. and respect each other’ s core T h e g o a l o f C h i n a ’s interests. China-U.S. common interests development is to benefit its 1.3
News From China August 2016 19 External Affairs billion people, Xi said, reiterating She called for more cooperation and maritime rights and interests in that China had no intention of to deal with global challenges such as the South China Sea, Yang said, challenging the present international climate change. noting that China opposes the rules and order, and it will never seek award of the so-called arbitral hegemony. This year’s G20 summit will be tribunal in the South China Sea held in east China’s Hangzhou City Arbitration. Xi called on both sides to in September. expand economic, trade and China’s stance on the South investment cooperation, as well as Xi said he was looking forward China Sea issue is unshakable, cooperation in climate change and to meeting with President Obama in Fan said, affir ming China’s international and regional affairs to Hangzhou in September, expressing s t a u n ch p o s i t i o n o f n o n - make pragmatic cooperation a his hope that the meeting will boost acceptance and non-recognition “ballast” in China-U.S. ties. bilateral ties and direct the stable of the award. development of bilateral ties. Rice said the United States Fan said the Chinese military agreed to work with China to Xi called on China and the would continue to provide strong strengthen mutual trust, enhance United States, as the world’s two backing to safeguarding China’s pragmatic cooperation and manage biggest economies, to work national territorial sovereignty and issues of difference through close together and make the summit a security. communication. success, which will send a signal of confidence to the world and inject In mid July, the ROK’s defense Xi recalled his meetings with new vitality into the global ministry announced an agreement U.S. President Barack Obama over economy. with the United States to deploy the the past three years and the U.S. missile defense system, consensuses agreed upon. Rice said President Obama was THAAD, to its southeastern region also looking forward to the G20 d e s p i t e o p p o s i t i o n f r o m The decision of the two sides to summit and the meeting with Xi. neighboring countries. build a new model of major-country relations has produced many solid When meeting with Rice on July F a n s a i d t h e T H A A D achievements in bilateral relations, 25 , Vice Chairman of China’s deployment would directly damage Xi said. Central Military Commission Fan China’s strategic security, escalate Changlong and Chinese State the tension in the Korean Peninsula Sino-U.S. relations should Councilor Yang Jiechi reiterated and undermine China-U.S. mutual always stick to the principle of no- China’s position on the South China trust. conflict, no-confrontation, mutual Sea issue and the deployment of respect, and win-win cooperation, Terminal High Altitude Area Yang urged the U.S. side to take according to Xi. Defense (THAAD) in the Republic China’s concern seriously and to halt of Korea (ROK). the deployment of the U.S. anti- China values ties with the missile system in the ROK. United States and is willing to make On July 12, the Arbitral joint efforts to make sure the Tribunal for the South China Sea Rice said the United States was relationship enjoys sustainable, arbitration issued its so-called ready to work with China to properly steady growth, Xi said. award, which attempts to deny manage and control differences to China’s territorial sovereignty and avoid misunderstanding or Rice said the U.S. side viewed its maritime rights and interests in the miscalculation. relationship with China as its most South China Sea. consequential ties today and China’s Rice is visiting China from July success is in line with America’s China will continue to firmly 24 to 27. interest. safeguard its territorial sovereignty
20 News From China August 2016 External Affairs CHINESE PREMIER DISCUSSES WAYS TO MEET GLOBAL ECONOMIC CHALLENGES WITH INTERNATIONAL ECONOMIC, FINANCIAL LEADERS
On July 23 ,2016, Chinese General Guy Ryder, OECD international financial regulatory Premier Li Keqiang held a “1+6” Secretary-General Angel Gurria and reform. roundtable meeting with leaders of FSB Chairman Mark Carney. Premier Li said that now world six major international economic economic recovery remains slow and financial institutions at Fanghua During the first session, in- and global trade is sluggish. Villa, Diaoyutai State Guesthouse in depth discussions were held on Meanwhile, the idea of “de- Beijing. “global economic situation and globalization” is emerging, as challenges” with a focus on global represented by protectionism and The six leaders are World Bank economic policies, implementation isolationism; geopolitical risks are Group President Jim Yong Kim, of the 2030 Agenda for Sustainable increasing; and Britain’s exit from IMF Managing Director Christine Development, revitalizing global t h e E U h a s b r o u g h t n e w Lagarde, WTO Director-General trade, advancing structural reform, complexities to the world situation. Roberto Azevedo, ILO Director- l a b o r m a r k e t p o l i c y a n d This important roundtable is being
News From China August 2016 21 External Affairs
held at a time when the world strong, sustainable and balanced Third, advance global trade and economic development is at a crucial growth, developing the economy investment liberalization and stage. Being the first collective and improving people’s lives. It is facilitation. We are now faced with a dialogue between the Chinese i m p o r t a n t t o s t r e n g t h e n sluggish global economy and weak government and major international coordination and make efforts to global demand. Trade-restrictive economic and financial institutions, jointly promote world economic measures will only aggravate the the roundtable demonstrates China’s recovery. situation and slow down global r e a d i n e s s t o s t r e n g t h e n recovery. They will in no way help c o m m u n i c a t i o n w i t h t h e Second, strike a balance solve problems or facilitate international community. We hope between addressing the cyclical structural reform. We need to firmly that all sides will have a correct issues and structural problems, and support economic globalization, reading of the development trend in between short-term and medium- oppose protectionism in all forms, the world, put forth good policies to to-long term challenges. We need to and uphold the dominant role of the spur world economic growth, and expand aggregate demand as multilateral trading system. work together to promote economic appropriate, give priority to recovery, stabilize the financial structural reform, and implement Fourth, promote inclusive s e c t o r a n d g u i d e m a r k e t fiscal and monetary policies that growth. We need to promote expectations. Premier Li raised the help boost domestic demand and deregulation, enhance competition following five proposals at the adjust economic structure. We need and encourage innovation. We need roundtable: to ensure that consumption and the to advance fiscal, financial and labor service sectors play a bigger role in m a r k e t r e f o r m s, i m p r o v e First, step up macro-economic driving economic growth, develop infrastructure, and create more and policy coordination. Under the the new economy, and foster new better jobs. Implementation of the current situation, all parties need to drivers of growth. 2030 Agenda for Sustainable focus their policies on promoting Development and efforts to
22 News From China August 2016 External Affairs promote inclusive growth should expectation in the financial sector, so closer macro-economic policy become the direction and important as to create an enabling environment c o o r d i n a t i o n , s t r e n g t h e n driving force for world economic for economic recovery.Leaders of infrastructure development, and recovery.Fifth, give better play to the major international economic and increase investment in human role of the financial sector in financial institutions spoke highly of resources. Efforts must also be made supporting economic recovery. We China’s economic growth, which to promote multilateral trade, need to strengthen macro- they believed played an active role in improve the global financial system, prudential regulation, improve facilitating world economic and support the development of supervision of cross-border capital recovery. They pointed out that innovative, low-carbon and inclusive flows, and prevent systemic financial given the uncertainties in the world economy. Thus, a joint and positive risks. We also need to strengthen economy and increasing risks and signal will be sent of promoting coordination and stabilize challenges, all parties need to have growth through cooperation. FULL TEXT: JOINT PRESS RELEASE ON THE '1+6' ROUND TABLE
The following is the full text of (International Labor Organization) The global economy is sluggish the joint press release of Premier Li Director-General Guy Ryder, and faced with downside risks and Keqiang, World Bank Group O E C D ( O r g a n i z a t i o n f o r uncertainties. Recently, the IMF has President Jim Yong Kim, IMF Economic Cooperation and lowered slightly its global growth (International Monetary Fund) Development) Secretary-General forecast and flagged rising downside Managing Director Christine Angel Gurria and FSB (Financial risks arising from higher economic Lagarde, WTO (World Trade Stability Board) Chairman Mark and political uncertainty and Organization) Director-General Carney on the occasion of their increased volatility in some market R o b e r t o A z e v e d o , I L O meeting in Beijing, on July 22, 2016. segments. The World Bank lowered
News From China August 2016 23 External Affairs its forecast for global economic and international organizations China continues to strengthen the growth in 2016, and emphasized the participating in the Round-table structural reform, especially the need for greater urgency in (hereinafter referred to as “we”) structural reform on the supply-side, implementing structural reforms to reached the following consensus: break a path for growth, accelerate counter stronger downside the shift of growth models from headwinds. The WTO has indicated 1. On the macro economy. We emphasizing size and speed to uncertain near term global trade recognize that aggregate demand quality and efficiency, and boost growth prospects and a challenging will remain weak in the short run, sustained driving forces for growth. i n t e r n a t i o n a l t r a d e p o l i c y and it will take time for supply-side Against the backdrop of global e n v i r o n m e n t w i t h r i s i n g policies to show effects, so a economic slow-down, China protectionist measures, despite comprehensive package of policies maintained steady growth during the some positive developments. The are needed to strike a good balance first half of 2016, registering 6.7% ILO expects the expansion of the between short-term and long-term year-on-year. Economic structure global economy to be too weak to goals. Strong, combined and h a s b e e n i m p r o v e d , a n d close the employment and social coordinated efforts are needed, consumption and the service sector gaps left by the international including use of all policy tools - have become the major driving financial crisis. The OECD has monetary, fiscal and structural - to forces of the Chinese economy. The pointed to declining productivity deal with risks and uncertainties in new economy featuring new trends and uncertainties besetting the world economy, safeguard technology, new products, new future global growth. The FSB has financial stability and support industries and new business models noted that global economic and economic growth. Monetary policy is growing rapidly, and industrial financial difficulties were increasing should continue to support transformation and upgrading is and structural challenges became economic activity and ensure price advancing fast. We believe that the more pronounced. Against this stability. Fiscal policy should be fundamentals of the Chinese backdrop, it is critical to enhance flexible to promote growth, job economy remain positive in the long international economic policy creation and confidence, while run. With deepening reforms, and c o o r d i n a t i o n . Ta k i n g t h e ensuring fiscal sustainability. implementing tasks of reducing opportunity of holding the G20 Moreover, where fiscal rules and o v e r c a p a c i t y, d e s t o c k i n g , presidency this year, China is frameworks allow, fiscal policy deleveraging, reducing cost and committed to fostering innovation should be used to support structural shoring up weak spots, the Chinese and other new growth engines, reforms while preventing and economy will achieve strong, deepening structural reform in mitigating fiscal risks. Structural sustainable and balanced growth, particular on the supply-side, reforms should be tailored to and make a continuous contribution promoting investment and country needs-including their to global economic growth. infrastr ucture development, income levels, cyclical positions, and implementing financial reform, available policy space-and operate 2.On structural reforms. We advocating growth in trade, adding along with other policies to support recognize the importance of more and better jobs, advancing the growth. Implementation of agreed structural reforms in dealing with 2030 Sustainable Development financial reforms remains important the slowdown of global productivity Agenda and addressing other global to boost the resilience of the growth and promoting steady, challenges, in a bid to achieving financial system. Well-calibrated and durable and inclusive recovery of stronger, sustainable and balanced effective communication of policy global economy, which is also growth for the global economy. stances will help to boost essential in realizing the ambition of During this process, we welcome confidence, enhance policy the G20 Blueprint on Innovative stronger policy communication and effectiveness, and limit negative Growth introduced by Chinese ongoing cooperation between China spillovers. China has taken the Presidency of G20. While country and the World Bank Group, the IMF, initiative to adapt to and guide the circumstances differ, there are the WTO, the ILO, the OECD and economic New Normal. While shared directions of reform in the FSB in the relevant areas. China supporting aggregate demand, g e n e r a l t e r m s , i n c l u d i n g
24 News From China August 2016 External Affairs d e r e g u l a t i o n , e n h a n c i n g foster new drivers of the growth of their RTAs are not only consistent c o m p e t i t i o n , e n c o u r a g i n g the world economy. We also with WTO rules, but also help to innovation, promoting fiscal reform, encourage G20 Task Forces strengthen the overall trading promoting trade and investment, covering the above areas to continue system. The multilateral trading strengthening the financial system, their work in this regard in order to system should maintain its role as the advancing labor market reform, maintain continuity. Sound main channel for trade liberalization improving infrastructure, enhancing framework conditions and structural and facilitation, with the WTO environmental sustainability and reforms are essential for rebalancing promoting coherence across the promoting inclusive growth. The the Chinese economy and global system. OECD and the IMF fully support transitioning to a more sustainable, the enhanced structural reform consumption-led and knowledge- We welcome the success of the agenda as one of the priorities based economy. On this basis, more WTO Bali and Nairobi Ministerial identified by Chinese Presidency of efforts are needed to harness the Conferences and urge rapid G20 this year. The international development oppor tunities implementation of the outcomes, in organization (IOs) also support G20 presented by the new industrial particular the Trade Facilitation members’ efforts in developing a set revolution and make more people Agreement and the elimination of of priority areas and guiding benefit from it. Actions in the agricultural export subsidies. We principles for structural reforms, as intertwined areas of innovation and strongly support advancing post- well as an indicator system to further the digital economy, including Nairobi negotiations on remaining improve assessing and monitoring investing in the new technologies Doha issues, with development at its of the progress of structural and skills in the direction of future centre and in a spirit of solidarity and reforms and their adequacy to development, can provide valuable mutual trust. We encourage WTO address structural challenges, and support for new sources of growth Members to explore new issues welcome the substantial progress — boosting productivity gains, where further cooperation could that has been made in this regard. opening new markets, meeting contribute substantially to global The OECD, the IMF and other IOs unaddressed needs and tapping into trade and prosperity, including those will continue to contribute new sources of human endeavor. brought by changing business proactively to the work streams Innovation is a key driver of models and technical development. under the G20 Growth Framework, productivity, growth and wellbeing: and tap into their expertise to in a context of demographic change We welcome continuous provide valuable policy analysis and and diminishing returns on capital, it progress made by G20 in trade and recommendations for G20 will become even more important in investment areas, including stronger structural reforms. China will the future as a source of long-term functions of G20 in coordinating strengthen the cooperation with the growth, while digitalization is trade and investment policy. We also IOs to jointly support the G20 plays reshaping economies and offering welcome the first release of World an important role in further new ways to spur efficiencies and Trade Outlook Index by the WTO at promoting the policy actions on improve services across all facets of the G20 Trade Ministers Meeting, as structural reforms at both country life. The OECD will continue to well as the monitoring reports by and global level. s u p p o r t t h e d e l i ve r y a n d WTO, OECD and UNCTAD on implementation of an innovation- trade and investment measures taken 3.On innovation. We need to driven growth path. by the G20 members. We note with make efforts to foster new sources concern that trade-restrictive of growth such as innovation, new 4.On trade and investment. measures continue to rise in the industrial revolution and the digital Trade can play an enhanced role in context of global trade slowdown economy. We support the G20 creating jobs, sustaining economic and urge to step up vigilance against developing action plans and guiding growth and prosperity. We call upon protectionism. principles in these areas, and based members to keep RTAs transparent, on these working out the G20 inclusive and open to participation 5. On labour and employment. Blueprint on Innovative Growth to by others. They should ensure that The current global outlook for jobs
News From China August 2016 25 External Affairs is mixed with slower growth leading education and training and improve p r o d u c t iv i t y, i n t e r n a t i o n a l to weaker prospects for employment the social protection system. Along connectivity and growth. We and wages in many countries. Rising with sustaining a medium-high strongly support the work of the inequality and the risk of setbacks to growth rate and upgrading the FSB to identify new and emerging the global drive to reduce poverty, economy to the medium- and high- risks and their efforts to promote make policy initiatives to increase end in China, the Government has international cooperation such that opportunities for decent work a created more jobs, and improved job the potential of innovations can be p r i o r i t y. L a b o u r m a r k e t structure. Together with its social realized in a stable and resilient developments were more positive in partners, the Government of China fashion. China and some other large has made positive contributions to economies than the rest of the international labour governance and 7 . O n s u s t a i n a b l e world. Structural changes in the south-south cooperation of the development. The 2030 Sustainable employment continued and could ILO. The Government stands ready Development Agenda is a critical a c c e l e r a t e a s a r e s u l t o f to strengthen cooperation with the c o m p o n e n t o f p r o m o t i n g technological innovation, increased international community including inclusive, sustainable growth. We interdependence and the need for the ILO, and will play an even bigger call for countries actively design environmental protection. Policies role in realizing inclusive growth and and implement country plans based that promote strong, sustainable and decent work for all. on their respective national balanced growth play a vital role in conditions. Economic growth is the managing adjustment and will 6. On financial regulatory foundation to end poverty and remain key drivers in mitigating reform. Notwithstanding the hunger. For g rowth to be adverse and maximizing positive improvement in resilience brought sustainable, all members of society effects of labour market changes. about by post-crisis financial must share in the benefits of The prominence accorded to decent reforms, the global financial system growth. Ensuring rapid economic work and inclusive growth in the faces pronounced risks, which could growth requires: promoting 2030 Agenda means the multilateral be amplified by the slow-down in economic transformation and system must further strengthen the global growth. Therefore, China, as a upgrading; implementing policies coherence of its policies for jobs and member of the FSB, will continue to to maintain macroeconomic growth to reach Sustainable firmly support the FSB’ s efforts in stability; proper and effective Development Goals. maintaining the stability of the investments in infrastructure; and global financial system, improving improving business environment China’ s economic growth has the financial regulation coordination for private enterprise to thrive now entered the phase of “New framework and enhancing global orderly and create jobs. In addition, Normal” , and needs to address the financial system resilience. We call countries should adopt other s t r u c t u r a l m i s m a t c h e s i n for full, consistent and timely p o l i c i e s i n c l u d i n g g r e a t e r employment. Upholding the implementation of agreed reforms, investment in education and health, conviction that employment is the which are aimed at delivering an to ensure that benefits reach all foundation of the livelihoods of the open and resilient system able to segments of society by promoting people, the Government of China is fund investment, trade and growth. equal opportunity-including implementing the Employment First We look forward to the coordinated g ender equity. With rapid S t r a t e g y a n d m o r e a c t ive work by the IMF, FSB and BIS to technological change, early employment policy, forging ahead take stock of international childhood education takes on with continuous reforms to experience with macro-prudential particular importance, as it will streamline administration, delegate framework and tools, to help determine the capabilities of future power, strengthen regulation and promote effective macro-prudential workers to thrive in a labor market improve services, and promoting policies. The increase in market- likely to be very different from that mass entrepreneurship and based finance and the emergence of of today. A judicious use of safety innovation. The Government is also the digital economy have the nets not only protects those that working hard to develop vocational potential to be an engine of cannot benefit from current
26 News From China August 2016 External Affairs growth, but also help the poor build require global governance and economy, and hence likely in the the assets they need for future effective global organizations suited share of emerging market and prosperity. We applaud and support for their tasks. developing countries as a whole. The China’ s efforts, as the G20 IMF should continue exploring ways presidency, to promote the We reaffirm our commitment to to strengthen the Global Financial development of action plans to maintain a strong, quota-based, and Safety Net (GFSN), with the IMF at implement 2030 Sustainable adequately resourced IMF. We its center, including through more Development Agenda, launch the support a fully equipped IMF for it effective cooperation with regional industrial initiative to support to fulfill its responsibilities in this financing arrangements and African and least-developed very uncertain financial and improving its lending toolkit. We countries, so as to help developing economic time. The implementation support the examination of a countries to achieve inclusive of the 2010 Reforms early this year broader use of the SDR to enhance growth. To achieve SDGs, all marks an important milestone in the resilience of the international parties should take prompt efforts moving forward the IMF’ s quota monetary system (IMS). We look to address increasingly pronounced and governance refor m. It forward to the outcomes of the global challenges, including significantly increased the IMF’ s World Bank Group’ s shareholding pandemics and other global public core resources, and also improved review in accordance with the health risks (e.g. Zika; Ebola; and the IMF’ s governance by better roadmap and timeframe agreed at antimicrobial resistance), conflict reflecting the increasing role of the 2015 World Bank Group Annual and forced migration, and climate dynamic emerging and developing meetings. change/weather-related calamities. countries in the global economy. More than 6 percent quota shares We agreed that this meeting was 8. On global economic shifted to dynamic emerging market constructive and fruitful. The governance. We acknowledge the and developing countries and also participants agreed that the round- need to, with the developments of from over-represented to under- table should become a regular world economy, continuously represented members. We look mechanism, so as to strengthen ties improve and reform international forward to the completion of the between China and international economic governance system and to 15th General Review of Quotas by o r g a n i z a t i o n s , d e e p e n increase the representation and the 2017 Annual Meetings, including communication and cooperation in voice of emerging economies and a new quota formula. We reaffirm the international economic and developing countries. During this that any realignment in quota shares financial arena, and jointly explore process, the IOs welcome China to under the 15th review is expected to responses to global economic continue to play a constructive role. result in increased shares for challenges. We agreed to hold the Global challenges, global public dynamic economies in line with their 2nd round-table at an appropriate goods and coordinated global action relative positions in the world time and place. CHINA, ASEAN NATIONS SHOULD BE RESPONSIBLE FOR OWN REGIONAL PEACE, STABILITY: CHINESE FM China and the Association of Foreign Minister Wang Yi said on many regions of the world,” he told Southeast Asian Nations (ASEAN) July 25 ,2016 . his counterparts from 10 ASEAN should be responsible for promoting members amid the 49th ASEAN peace and stability in their own “Outside intervention is one of foreign ministers’ meeting in the Lao region or the East Asia, Chinese the root causes for turbulence in capital.
News From China August 2016 27 External Affairs
Outsiders can withdraw if enhancing regional peace and version of the China-ASEAN free turbulence emerges in a region, development, said the Chinese top trade area (FTA). leaving the regional countries having diplomat. to deal with the aftermath, the Wang hoped that China and Chinese top diplomat warned. As for China-ASEAN ties, he is ASEAN nations could strive to hopeful that both China and boost cultural and people-to-people Countries in East Asia have ASEAN nations could jointly build a cooperation as a new pillar for managed to maintain peace and community of common destiny. bilateral strategic partnership, achieve development through adding that China is willing to sign a concerted efforts by all countries in The Chinese minister set six treaty of good-neighborliness, the region. priority areas for the further friendship and cooperation with development of China-ASEAN ASEAN. “We should hold the key to relations. promoting regional peace and The two sides could also further stability in our own hands,” he Both sides should jointly make a promote the ASEAN integration added. commemorative summit marking based on the Lancang-Mekong the 25th anniversary of China- cooperation mechanism and jointly Nations in the region also ASEAN dialogue relationship a safeguard peace and stability in the welcome all countries with goodwill success, and push forward pragmatic region. playing a constructive role in cooperation such as the upgraded
28 News From China August 2016 External Affairs CHINA VOWS TO DEEPEN ECONOMIC, TRADE COOPERATION WITH ASEAN
On August 4, 2016, China Pointing out that there is He said the two sides should vowed to deepen economic and immense potential for cooperation actively implement projects in trade cooperation with the in industrial capacity between China related areas for mutual benefit and Association of Southeast Asian and ASEAN, the Chinese minister win-win results. Nations (ASEAN). called for more efforts in this regard and building cross-border industrial G a o e x p r e s s e d C h i n a ’s The pledge was made during the chains. willingness to support ASEAN’s 15th China-ASEAN (10+1) community construction and the economic ministers’ meeting which China stands ready to work with ASEAN Community Vision 2025 as was held here in the Lao capital on ASEAN on cluster cooperation in well as to participate in the region’s August 4 ,2016 . such fields as railway, information integration. and communication, chemical Speaking at the meeting, industry, engineering machinery and He said China will continue to Chinese Minister of Commerce Gao agriculture, he said, adding that provide development assistance as Hucheng highlighted the fruitful enterprises from both sides are its capacity allows and help narrow cooperation between China and encouraged to carry out all-round the development gaps between ASEAN over the past 25 years. cooperation. ASEAN member countries.
He said bilateral cooperation in The Chinese minister called for China will also participate in the trade and economy has all along greater synergy between China- formulation and implementation of been a “ballast” and “propeller” in proposed Belt and Road Initiative the master plan on ASEAN’s C h i n a - A S E A N d i a l o g u e and development strategies of connectivity and its post-2015 relationship. ASEAN member countries. agenda, he added.
News From China August 2016 29 G20 Summit
According to Gao, China will China will support ASEAN’s provincial areas and ASEAN vigorously promote China-East centrality in pushing forward the member countries, he added. ASEAN Growth Area cooperation conclusion of negotiations for the a n d t h e L a n c a n g - M e k o n g Regional Comprehensive Economic A joint communique on cooperation and provide financial Partnership (RCEP) by the end of industrial capacity cooperation was support via platforms like China- this year, he said. approved at the meeting and it will ASEAN Investment Cooperation be submitted to a commemorative Fund, the Asian Infrastructure China is also willing to expand s u m m i t m a r k i n g t h e 2 5 t h Investment Bank and the Silk Road cooperation areas with ASEAN by anniversary of China-ASEAN Fund. supporting economic and trade dialogue relationship in September cooperation between China’s this year G20 Summit CHINESE PRESIDENT TO HOST HANGZHOU G20 SUMMIT
Chinese President Xi Jinping Xi will also attend relevant C h i n e s e Fo r e i g n M i n i s t r y will host the Group of 20 (G20) events, including an informal spokesman Lu Kang in a press summit scheduled for Sept. 4-5 in meeting with other BRICS release. China’s eastern city of Hangzhou, members’ leaders, and deliver a This year’s G20 summit features the Foreign Ministry announced on keynote speech on the opening a theme of “Toward an Innovative, August 15, 2016. ceremony of the Business 20 (B20) Invigorated, Interconnected and summit to be held on Sept. 3-4, said Inclusive World Economy.”
30 News From China August 2016 G20 Summit G20 SUMMIT AIMS TO SPUR NEW ECONOMIC GROWTH
China hopes the Group of 20 The summit will have the best history, to build confidence in the (G20) summit in Hangzhou in representation of developing market, said Yi Gang, vice governor September will spur new global countries in G20 history. China has of the People’s Bank of China economic growth, a Chinese official invited a record number of (PBOC). said on August 15 in Beijing. developing countries, including On financial reform, the summit China will put forward a Chad, chair of the African Union; will produce outcomes on blueprint for innovation-driven Laos, chair of the Association of establishing an open and prudent growth at this year’s summit in Southeast Asian Nations (ASEAN); financial system, setting up a Hangzhou, capital of east China’s Senegal, chair of the New macroprudential policy framework Zhejiang Province, to find new P a r t n e r s h i p f o r A f r i c a ’s and developing inclusive finance, Yi drivers of global growth, Vice Development (NEPAD); Egypt; said. Foreign Minister Li Baodong said at and Kazakhstan. Since assuming the G20 a press briefing. China has said it will push for presidency, China has done a lot to Innovation, introduced on the the adoption of a global trade promote international economic G20 agenda for the first time, is “the growth strategy to reverse the governance reform, including key for boosting global economic downward trend in global trade restarting the International Financial potential,” said Yao Zhizhong, a growth and lay out guiding Architecture Working Group to professor with the Chinese Academy principles for global investment improve international financial of Social Sciences. policies to facilitate cross-border governance. China also hopes to promote investment. China has put green financing structural reform, improve global “The summit will further focus on the G20 agenda for the first time economic and financial governance, on dealing with pressing risks facing to mobilize more investment in strengthen financial, tax, energy and the global economy and financial environmentally friendly projects. anti-corruption cooperation and market,” Zhu Guangyao, China’s The G20 has set up a research team revitalize trade and investment at the vice finance minister, said at the on the issue based on a proposal by summit, Li said. press briefing. China. The summit is also expected to China has called on G20 “The summit will release the focus on developing countries, m e m b e r s t o r e f r a i n f r o m first report on G20 green financing, implementation of the 2030 Agenda competitive devaluation and specifying its definition, purpose, for Sustainable Development and facilitated discussions on the foreign scope and challenges,” said Yi. s u p p o r t f o r A f r i c a ’ s exchange market within the G20 industrialization. framework, the first time in G20 THE G20 LABOUR AND EMPLOYMENT MINISTERIAL MEETING HELD IN BEIJING
On July 12th and 13th, 2016, the Kai attended the welcome session and delegates from international G20 Labour and Employment and delivered a speech. Around 300 organizations, such as ILO and Ministerial Meeting was held at participants, including labour and OECD, attended this meeting. Diaoyutai State Guesthouse in employment ministers from G20 Beijing. Chinese Vice Premier Ma economies and 6 invited countries, As one of the sectoral
News From China August 2016 31 G20 Summit
ministerial meeting in support of the demographic change, and agreed on Apprenticeship. G20 Hangzhou Summit, the theme a set of policy recommendations on of this meeting was “Innovation and employment generation and A social dialogue session was Inclusive Growth: Decent Work, workforce skills enhancement. The organized between the labour and Enhanced Employability and meeting adopted the Ministerial employment ministers with social Adequate Job Opportunities”. Meeting Declaration with 5 outcome partners (B20 and L20) and other Ministers had in-depth discussions A n n e x e s , i n c l u d i n g G 2 0 engagement groups (T20, W20, Y20 on the challenges to the labour Entrepreneurship Action Plan and and C20) prior to the ministerial markets from globalization, G20 Initiative to Promote Quality meeting. technological prog ress and THE THIRD G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS MEETING IN 2016 HELD IN CHENGDU The third G20 Finance Jiwei, Finance Minister of China and Hangzhou Summit. Ministers and Ministers and Central Bank Mr. Zhou Xiaochuan, Governor of Governors discussed issues Governors Meeting under the the People’s Bank of China. The concerning global economy, Chinese Presidency was held in meeting was also the last G20 framework for strong, sustainable Chengdu on July 23-24, 2016. The Finance Ministers and Central Bank and balanced growth, international meeting was co-chaired by Mr. Lou Gover nors Meeting before financial architecture, investment
32 News From China August 2016 G20 Summit
and infrastructure, financial sector strong, sustainable, balanced and set of indicators to help monitor and reform, international tax, green inclusive growth. Ministers and assess their progress with structural finance, climate finance, and anti- Governors affirmed commitment reforms. Ministers and Governors terrorist financing, and endorsed the that monetary policy will continue to pointed out that the G20 are making key outcomes under each subject. A support economic activity and further progress towards the communiqué was released after the ensure price stability. Underscoring implementation of their growth meeting. the essential role of structural strategies, and their updated growth reforms, Ministers and Governors strategies and an accountability At the meeting, Ministers and emphasized their fiscal strategies are report will be finalized before the Governors agreed that the global equally important to support their Hangzhou Summit. Ministers and economic recovery continues but common growth objectives. Governors committed to making remains weaker than desirable, and Ministers and Governors committed further efforts to revitalize global downside risks persist. The outcome to continuing to explore policy trade and lift investment, striving to of the referendum on the UK’s options, tailored to country reduce excessive imbalances, and membership of the EU adds to the circumstances, that G20 countries promoting greater inclusiveness in uncertainty in the global economy. may undertake as necessary. the G20’s pursuit of economic Members of the G20 are well Ministers and Governors reaffirmed growth. positioned to proactively address the that they will consult closely on potential economic and financial exchange markets, refrain from Ministers and Governors consequences stemming from the competitive devaluations, not target welcomed the commitments made UK referendum, and hope to see the exchange rates for competitive in the “Joint Declaration of UK as a close partner of the EU in purposes, and resist all forms of Aspirations on Actions to Support the future. Ministers and Governors protectionism. Infrastructure Investment” by 11 pointed out that members of the MDBs which includes their G20 are taking actions to foster Ministers and Governors announcements of quantitative confidence and support growth, and endorsed the Enhanced Structural ambitions commitments, launched reiterated their determination to use Reform Agenda, developed a set of t h e G l o b a l I n f r a s t r u c t u r e all policy tools – monetary, fiscal and guiding principles based on the nine Connectivity Alliance and endorsed structural – individually and priority areas of structural reforms the G20/OECD Guidance Note on collectively to achieve their goal of agreed in April, and agreed upon a Diversification of Financial
News From China August 2016 33 G20 Summit
Instruments for Infrastructure and capital flow volatility, and supported will tackle all sources, techniques and SMEs. Ministers and Governors examination of the broader use of channels of terrorist financing. s u p p o r t e d t h e e f f e c t i v e the Special Drawing Right (SDR). Ministers and Governors agreed that implementation of the G20/OECD green investment and green finance P r i n c i p l e s o f C o r p o r a t e Ministers and Governors should be promoted to support Governance, and G20/OECD pointed out that recent market global sustainable growth, and High-level Principles on SME turbulence and uncertainty have welcomed the G20 Green Finance Financing. once again highlighted the Synthesis Report submitted by the importance of building an open and Green Finance Study Group Ministers and Governors resilient financial system and they (GFSG) and the voluntary options endorsed the recommendations remain committed to finalizing developed by the GFSG. Ministers towards further strengthening the remaining critical elements of the and Governors welcomed the international financial architecture regulatory framework and the timely, Climate Finance Study Group’s (IFA) developed by the IFA Working full and consistent implementation (CFSG) Report on “Promoting Group, committed to further of the agreed financial reforms. Efficient and Transparent Provision strengthening the Global Financial Ministers and Governors welcomed and Mobilization of Climate Safety Net (GFSN) with the the ongoing joint work by the Finance to Enhance Ambition of International Monetary Fund (IMF) international organizations to take Mitigation and Adaptation Actions”, at its center, and welcomed the stock of international experiences and would continue working on upcoming CMIM-IMF joint test with macroprudential frameworks climate finance in 2017 with the run. Ministers and Governors and tools. Ministers and Governors objective to contribute to the looked forward to the completion of endorsed the G20 High-level discussions held under the United the 15th General Review of Quotas, Principles for Digital Financial Nations Framework Convention on including a new quota formula, by Inclusion, the updated version of Climate Change (UNFCCC). the 2017 Annual Meetings, and the G20 Financial Inclusion supported the WBG to implement Indicators, and the implementation Minister Lou Jiwei stated that its shareholding review according to framework of the G20 Action Plan although recent events around the the agreed roadmap and timeframe. on SME Financing. Ministers and world have not resulted in big shock Ministers and Governors supported Governors called upon all relevant for financial markets, there is little the continued effort to incorporate and interested countries and room for optimism. Low global the enhanced contractual clauses jurisdictions that have not yet growth has become a new normal into sovereign bonds. Ministers and committed to the BEPS package to and the root cause of many Governors supported the Paris do so and join the framework on an problems, escalating social and Club’s discussion of a range of equal footing, and endorsed the economic conflicts. Under these sovereign debt issues, the ongoing proposals made by the OECD on circumstances, it is necessary for work of the Paris Club, as the the objective criteria to identify non- G20 members to strengthen principal international forum for cooperative jurisdictions with cooperation, reiterate consensus restructuring official bilateral debt, respect to tax transparency. reached at the G20 Finance towards the broader inclusion of M i n i s t e r s a n d G o v e r n o r s Ministers and Central Bank emerging creditors, and welcomed emphasized the importance of pro- Governors Meeting in Shanghai, and China’s regular participation in Paris growth tax policies and tax certainty, continue to use all policy tools – Club meetings and intention to play and asked the OECD and the IMF to monetary, fiscal and structural –to a more constructive role, including continue working on the issues. foster confidence and strengthen further discussions on potential M i n i s t e r s a n d G o v e r n o r s g r o w t h . F i r s t l y, d e m a n d membership. Ministers and condemned, in the strongest management policy is still Governors supported to continue to possible terms, the recent terrorist important. As the marginal effects improve the analysis and monitoring attacks, and reaffirmed their of monetary policy are diminishing, of capital flows and management of solidarity and resolve in the fight more pro-growth fiscal policy risks stemming from excessive against terrorism in all its forms and should be implemented. Countries
34 News From China August 2016 G20 Summit with fiscal space need to scale up rate is expected to remain at a our policies more rule-based and spending. Secondly, structural relatively high level this year. transparent, and strengthen reforms are needed in response to communication with the market. low growth tendency. Advanced Minister Lou Jiwei pointed out economies should continue to that the G20 has made a new and Governor Zhou Xiaochuan improve labor market elasticity, and significant step in structural reform noted that a lot of progress has been p r o m o t e i n v e s t m e n t a n d agenda. A framework has been made since the IFA working group productivity growth. Emerging initially established to provide policy was restored. The G20 should economies should strengthen recommendations and assessment continue to advance the 15th economic resilience, relax methods for the G20 enhanced General Quota Review, with a regulation, promote competition, structural reform agenda and further increase in the quota shares and carry forward financial sector improve the coordination and of emerging market and developing reform. Thirdly, it is important to effectiveness of members’ reform countries. Continuous efforts need continue support for economic actions. The G20 will adjust the to be made in promoting the globalization, resist all forms of structural reform framework over inclusion of the enhanced protectionism, and restrain the use time to take into account changing contractual clauses. The Paris Club’s of trade restrictions. Fourthly, circumstances and support strong, ongoing work towards the broader relevant countries need to address sustainable and balanced growth. inclusion of emerging creditors is current challenges. It is hoped that welcome. Further work is needed to the UK will be a close partner of the Governor Zhou Xiaochuan enhance the cooperation between EU, which will send positive signals stated that the Chinese economy the IMF and Regional Financing to the world and stabilize market maintained a stable growth while Arrangements (RFAs) and improve expectations for the economic making some progress in the first the IMF toolkit. The use of the SDR outlook. half of this year. The economic should also be broadened. The growth was within reasonable range. People’s Bank of China has released According to Minister Lou The price and employment level was its BOP and IIP data in the SDR, and Jiwei, during the first half of this basically stable. China’s economic has been studying the possibility of year, China’s GDP grew by 6.7%, performance faced a more complex the issuance of SDR-denominated and key indicators were in line with external environment after the UK’s bonds in China. expectations. Major progress has r e f e r e n d u m . T h e C h i n e s e been made in structural adjustments, government has maintained the Governor Zhou Xiaochuan and the quality of economic growth stability and continuity of stressed that recent years had has been improved. The service macroeconomic policies while witnessed notable progress in sector as a proportion of GDP rose actively promoted supply-side financial sector reform, and the to 54.1%, the contribution of final structural reform, which is the only global financial system had become consumption to GDP reached way to address the structural more resilient. The G20 should 73.4%, and the contribution of problems such as overcapacity. After remain committed to building an domestic demand to GDP increased a period of adjustment, market open, strong and resilient financial to 110.4%. Energy consumption per participants now have a deeper s y s t e m , i n c l u d i n g f u r t h e r unit of GDP declined by 5.2% year understanding of the RMB implementing global financial sector on year. In particular, the exchange rate regime. The RMB reform agenda, promoting the effort employment situation remained exchange rate against currency to take stock of and summarize stable, with 7.17 million jobs created baskets is now basically stable, and experiences with macro-prudential during the first half of this year. market confidence has been frameworks and tools, and China’s economy is still the “driver” boosted. Looking forward, we will strengthening the regulation and and “anchor” of the global continue to improve the RMB oversight of financial market e c o n o my. I n 2 0 1 5 , C h i n a exchange rate regime based on infrastructures. He noted that the contributed roughly 30% to global market supply and demand and with G20 had made positive progress in economic growth. The contribution reference to currency baskets, make developing digital financial inclusion
News From China August 2016 35 G20 Summit and financial inclusion indicators Finance Study Group (GFSG) has sharing and capacity building, risk and data. Next, efforts should be achieved preliminary results and a n a l y s i s a n d i n t e r n a t i o n a l made to further promote financial completed the G20 Green Finance cooperation, which could provide inclusion so as to enable economic Synthesis Report. Based on country useful references for promoting the growth outcomes to benefit all. circumstances, all GFSG members global development of green have studied in depth on how to finance. Governor Zhou Xiaochuan mobilize more resources through introduced that the G20 Green financial innovation, knowledge WORLD EXPECTS G20 SUMMIT TO REVIVE ECONOMIC GROWTH, EYE CHINA'S LEADERSHIP
Hangzhou, China, Aug. 5 interest in seeing how new British to lead the world economy, said (Xinhua) — As the Group of 20 Prime Minister Theresa May would Mauricio Santolo, an international (G20) summit is a month away, deal with her country’s departure relations professor with Rio de people worldwide are expecting from the EU and how she would Janeiro State University in Brazil. leaders to promote global economic participate in the G20 summit. recovery and enhance the role of Santolo said China has a broad emerging economies, especially “The economy of developed domestic market and is politically China, the second-largest economy nations is not working well, with stable, so it has the capacity to lead and chair of the G20 this year. many of them having negative other countries, especially the interest rates,” said Argentine BRICS and other developing “For us Europe, the urgent financial analyst Luis, who only gave countries to enact new policies that priority is to get through the his first name. “Emerging markets would facilitate economic recovery. economic crisis,” said Melinda still play an important role in global Brindicci, an employee in tourism economy.” He said that bulk Stephan Perry, chairman of industry from Rome, Italy. commodity exporters such as Britain’s 48 Group Club, also noted “Employment problem of Italy and Argentina and Brazil will continue to that as China is the current G20 other European countries, especially play their parts. president and the meetings are being related to young people, awaits to be held in the country, the world has to solved.” On China’s role in global look to China for leadership at the economic growth, Meagher said, meeting of the G20 leaders. John Meagher, a real estate agent “China is performing well, better from Melbourne, Australia, also than most of the international It would be interesting to see turned his eyes to the mire in economists had predicted.” He how developing and developed Europe. “There is obviously a lot of added that the Australian economy is countries get to sit comfortably with doubt what’s going to take place in performing well as a direct result of each other, show respect to each Europe with the Brexit, and it’s what’s happening in China. other, and hear each other at the probably going to be on the top of upcoming summit, Perry said. the (G20) agenda.” With Europe largely impacted by the Brexit, and the United States “In the past, the developed Meagher is echoed by several in election year, China is the one nations have tended to take the other people, who also showed their country that has the largest potential developing nations a little bit for
36 News From China August 2016 G20 Summit granted, now because of the need can talk about technology sharing “That is no longer a basis for policy.” for global growth, there is a and transfer. requirement for developed nations “They can say we need better to listen more carefully to the The Argentine financial analyst infrastructure, we need better problems and challenges of the said that he cares about how his support of aid and financial terms in developing world,” he said. country can make full use of the G20 order to build infrastructure, and we agenda, reach better cooperation need to have better terms of trade For the developing world, the agreements with more countries, between raw materials and finished upcoming summit does seem a good and better integrate into the world goods, now I think the developed opportunity to play a better role. economy and world governance. nations are beginning to hear that,” he said. Arjun Prasad Saha, CEO of Perry of Britain, however, noted Linuo Co.’s India branch, said that that even though developed “There’s a developing respect, India could ask other G20 members countries now have to take account but I think it still needs to take a few to bring more investment to the of the developing countries and more years,” Perry said. country and make good use of its listen to their voices, developing manpower. He hopes G20 leaders countries cannot just ask for money. INTERVIEW: G20 SUMMIT A CHANCE TO SHOW CHINA'S VIEW ON GLOBAL DEVELOPMENT: RUSSIAN EXPERT
Moscow, Aug. 6 (Xinhua) — restructuring,” he told Xinhua in a The expert hoped the G20 The 2016 Group of 20 (G20) recent interview. summit would consider methods to summit to be held in the Chinese city Maslov also suggested that stimulate the economy, facilitate of Hangzhou in early September will China should find its own approach foreign trade, remove customs give the country a great chance to on promoting its idea of a green barriers, and promote interaction present and promote its ideas on economy, which is not only between countries in creating free global development, a Russian environmentally friendly, but also t r a d e z o n e s o r c o m m o n expert has said. free from corruption and from any development zones. China’s “One Belt One Road” external influence. Maslov said the G20 summit initiative, which aims to promote “China is doing the right thing, could lead to greater freedom of infrastructure construction in by not just defending itself from trade and play a more responsible countries along its way and push alleged charges (of non-compliance role in resolving global economic forward the economic development with environmental regulations), but problems, adding that technology of the whole region, would be a key creating its own concept and inviting transfers should also be facilitated discussion at the summit, said others to join,” he said. among countries. Alexey Maslov, head of the Oriental The discussion on green According to Maslov, it is more Studies Department at the Russian e c o n o m y s h o u l d a l s o b e important for the summit to “show Higher School of Economics concentrated on countries’ that countries share common Research. investment capacities and the concerns and see common problems “I think the debate will be more sustainable growth of the world and trends,” rather than providing about the ways of developing the economy, especially considering the final solutions. infrastructure ... about who will be current complex and multilateral He stressed that the G20 the leader of infrastructure economic crisis, Maslov said. summit has to become a real
News From China August 2016 37 G20 Summit
File photo taken on May 24, 2016 shows an aerial view of expressways linking Hangzhou Xiaoshan International Airport at night in Hangzhou, east China's Zhejiang Province. working body, not just a platform for r e q u i r e s t h e m o s t r a p i d Maslov added. discussion. implementation of these reforms,” “How China will be able to consolidate the views of different parties is a great question and a great responsibility,” he said. “Perhaps, only China is capable in today’s world of making different countries with different methods of regulating economies to sit at the negotiating table, to make them try and work out a common solution,” said Maslov. By implementing a “fairly correct” model of economic structural reform, China has proved its strong political will to the world, he said. “But the state of the economy, both Chinese and Asian in general, Hangzhou Volunteer
38 News From China August 2016 South China Sea South China Sea CHINESE FM CALLS FOR END TO POLITICIZATION OF SOUTH CHINA SEA ISSUE, URGES PARTIES TO RETURN TO NEGOTIATIONS
Vientiane, July 26 (Xinhua) — the Conduct of Parties in the South m i n i s t e r s o f t h e m e m b e r Chinese Foreign Minister Wang Yi China Sea (DOC), which was signed countries of the Association of has called for an end to the political in November 2002 as a code of S o u t h e a s t A s i a n N a t i o n s manipulation and sensationalization conduct for all parties involved in (ASEAN) — Brunei, Cambodia, of the South China Sea issue. the South China Sea issue. Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Wang also urged related parties Wang made the call at a press The Philippines and Vietnam — to get back to the right track of briefing Monday following his in the Lao capital. implementing the Declaration on m e e t i n g w i t h t h e f o r e i g n
News From China August 2016 39 South China Sea
END TO POLITICIZATION of either history or international supports the resumption of talks OF SOUTH CHINA SEA ISSUE law,” the Chinese government said in between China and the Philippines. a white paper issued on July 13. Wang said the so-called award In a separate meeting with his rendered recently by an ad hoc “ T h e a r b i t r a l t r i b u n a l Japanese counterpart, Fumio tribunal handling the South China established at the Philippines’ Kishida, on Monday, Wang said Sea arbitration is tantamount to unilateral request has no jurisdiction Japan, which is not a claimant in the filling a wrong prescription for the over relevant submissions, and South China Sea disputes, should South China Sea disputes. awards rendered by it are null and avoid interfering in and hyping up void and have no binding force,” said the maritime spats. T h e f o r m e r P h i l i p p i n e the document. government, headed by Benigno China has always been Aquino III, unilaterally initiated the Wa n g s a i d t h e w r o n g maintaining the freedom of South China Sea arbitration in 2013. prescription has led to increasingly navigation in the South China Sea, The move has violated the hot ballyhoo over the arbitration and Wang said. Philippines’ standing agreement some countries outside the region with China to settle relevant disputes have become extremely excited, as if RETURN TO through bilateral negotiation, running an unabated high fever. NEGOTIATIONS violated China’s right to choose means of dispute settlement of its The normal regional order and According to Wang, all foreign own will as a State Party to the the overall interests of the regional ministers agreed at the meeting that United Nations Convention on the countries have been undermined, he the South China Sea disputes are not Law of the Sea (UNCLOS), and added. an issue between China and ASEAN abused the UNCLOS dispute and the disputes should not be settlement procedures. In his meeting with U.S. allowed to affect the overall situation Secretary of State John Kerry on the of the cooperation between the two The ad hoc tribunal issued an sidelines of the ASEAN foreign sides. award on July 12, siding with ministers’ meeting Monday, Wang Manila’s cunningly packaged claims said he expected the United States to He pointed out that ASEAN, and denying China’s long-standing take steps to support China and the as a whole, did not make comments historic rights in the South China Philippines in resuming their talks or take sides on the arbitration, and Sea. over the South China Sea issue.x The it expressed support for China and United States will not take a position the Philippines to resolve the issue “The Philippines’ territorial on an arbitral ruling of the South t h r o u g h d i a l o g u e a n d claim over part of Nansha Qundao China Sea arbitration case, Kerry consultation. is groundless from the perspectives said, adding that his country CHINA, ASEAN VOW TO PROMOTE PEACE, STABILITY IN SOUTH CHINA SEA On July 25, 2016, China and the A joint statement was issued Meeting. Association of Southeast Asian after the meeting between Chinese The countries recognize that Nations (ASEAN) reaffirmed their Foreign Minister Wang Yi and his “maintaining peace and stability in efforts to “promote peace, stability, counterparts from 10 ASEAN the South China Sea region serves mutual trust and confidence” in the members in the Lao capital during the fundamental interests of South China Sea. the 49th ASEAN Foreign Ministers ASEAN member states and China as
40 News From China August 2016 South China Sea w e l l a s t h e i n t e r n a t i o n a l community.” They are also committed to the full and effective implementation of the Declaration on the Conduct of Parties in the South China Sea (DOC) and working substantively toward the early adoption of a Code of Conduct (COC) based on consensus. The statement said China and 10 members of ASEAN “reaffirm their respect for and commitment to the freedom of navigation in and overflight above the South China Sea as provided for by the universally r e c o g n i z e d p r i n c i p l e s o f international law, including the 1982 “exercise of self-restraint in the fields such as navigation safety, United Nations Convention on the conduct of activities that would search and rescue, marine scientific Law of the Sea (UNCLOS).” complicate or escalate disputes and research, environmental protection, It also commits all parties to affect peace and stability including, and combating transnational crimes undertaking to “resolve their among others, refraining from at sea.” territorial and jurisdictional disputes action of inhabiting on the presently The statement also sees China by peaceful means, without resorting uninhabited islands, reefs, shoals, and ASEAN members committing to to the threat or use of force, through cays, and other features, and to encouraging other countries to respect friendly consultations and handle their differences in a the principles contained in the DOC negotiations by sovereign states constructive manner.” adopted in 2002, saying the adoption directly concerned.” It permits parties “to explore or of the COC will “further promote The statement calls for the undertake cooperative activities in peace and stability in the region.” CHINA OPENS S. CHINA SEA WEBSITE
On August 3, 2016, China on Q&A. experts’ research of thousands of Wednesday opened a website on “The South China Sea has maps. the South China Sea, complete drawn huge attention, but some Zhang cited that a map often with historical maps, articles information online is not accurate,” used by Vietnam to prove that it and research, according to the said Zhang Haiwen, SOA official in owned the Xisha Islands was actually State Oceanic Administration charge of international cooperation. pieced together by two maps, which (SOA). “We hope that this website will have already been obtained by Run by the National Marine enable domestic and overseas people experts and might be used to refute Data & Information Service, the to better understand it and learn the country’s claim. Chinese language site has 10 sections about the truth behind the ‘dispute’ Zhang said new findings will be that cover basic information, news, over it.” published on the website once historical archives, development and According to Zhang, the verified. management, expert opinion, law website contains not only maps and According to the SOA, and regulations, a timeline of major archives but also exclusive analysis information on the website must events, pictures and videos and and expository articles based on first be reviewed by an expert panel
News From China August 2016 41 South China Sea
a n d b e “ c o m p r e h e n s i v e , cooperation while serving as a The website has now six domain authoritative, detailed and accurate.” reliable channel for domestic and n a m e s , i n c l u d i n g o v e r s e a s g o v e r n m e n t www.thesouthchinasea.org and “The website is founded with departments, research groups and www.china-nanhai.org, due to the aim of positively publicizing individuals to learn about the “information unification and our policies, claims, historical South China Sea,” said SOA security concerns,” according to the proof, legal basis and international spokesman Shi Qingfeng. SOA. SPOTLIGHT: ARBITRATION TRIBUNAL'S AWARD ON SOUTH CHINA SEA SETS DANGEROUS PRECEDENT OF ABUSING ARBITRATION SYSTEM The Hague, July 13 (Xinhua) — South China Sea case on Tuesday in drawing a wide-range of criticism T h e Pe r m a n e n t C o u r t o f support of the Philippine side, from Chinese and foreign experts. Arbitration (PCA) in The Hague setting a dangerous precedent of issued a 479-page award over the abusing the arbitration system, and “Arbitration is defined in the
42 News From China August 2016 South China Sea dictionary as a dispute where the lack of justifiable jurisdiction” poses If the Philippines recognizes the parties have agreed to settle it by a big question mark to the tribunal’s ruling and China does not, the arbitration,” said Stephen Perry, “intention” and “interest.” arbitration should not be recognized chairman of the 48 Group Club, a as legitimate and legal, he said. British business group. “I am of the view that the tribunal must review its position and Joseph Matthews, director of “Clearly China does not accept jurisdiction for the sake of ASEAN Education Center, said that arbitration to settle the dispute, so institution it stands for. Otherwise it from the beginning, the arbitral the Court should not have agreed to will become a joke in the legal history tribunal was under the sway of the hear this dispute presented by only as they did not follow the due United States and its ally Japan. one party,” he said. process of law,” he noted. “This is a one-sided verdict “I have been involved in many A c c o r d i n g t o V l a d i m i r based on China-phobia, which hundreds of arbitrations and always Petrovsky, a major researcher at the ultimately creates tension, and both parties agree on arbitration, or Moscow-based Institute for Far confrontational situations in the there is no arbitration,” he added. Eastern Studies, China’s non- South China Sea,” he said. acceptance stance over the Shahid Qureshi, London Post’s arbitration ruling is the “only “Today’s ruling will change editor and political analyst, said the reasonable position” from the nothing in the South China Sea,” he fact that “the tribunal has allowed viewpoint of international law. emphasized. the case to go ahead in spite of its
News From China August 2016 43 South China Sea
Omar al-Mekdad, a Syrian of the tribunal. “What the tribunal University in the Netherlands. “In expert on Chinese affairs, told has done can never be called an Asia, states have been dealing with Xinhua, “The decision taken by the arbitration,” he said. the South China Sea for ages in a tribunal in The Hague is politicized peaceful and constructive manner. and has deliberately overlooked the “Arbitration is a process in People should go back to the historic facts about China’s which both the disputed parties situation where they tried to find sovereign rights over the South agree to argue their cases and agree diplomatic solutions.” China Sea territory.” to accept verdict whatever it is,” he explained. In this case, “we all know George Tzogopoulos, a lecturer “China has every right to take that China was not a party. It did not at the European Institute and the whatever it sees proper to respond to take part in the process. So how can Democritus University of Thrace in this outrageous decision,” he said. it be called an arbitration?” Greece, warned that Asia must not be divided over the tribunal’s Ashfaqur Rahman, former “The tribunal should not have decision, as “a potential conflict in Bangladeshi ambassador to China, accepted jurisdiction,” said Tom the South China Sea will benefit no found it very funny to see the work Zwart, a law professor at Utrecht one.” SOUTH CHINA SEA ARBITRAL TRIBUNAL LOSES ITS OWN FACE BY LACK OF POLITICAL WISDOM: INDIAN EXPERT
44 News From China August 2016 South China Sea
Singapore, July 18 (Xinhua) — “If the Philippines doesn’t ground. The ad-hoc arbitral tribunal lost its believe it, it will have a very limited own face in the South China Sea role to play,” he said. “The fundamental principle of arbitration with the lack of political arbitration is that both parties wisdom, and countries would return The Chinese government said should submit the case for to negotiations to solve disputes, an the ad hoc arbitral tribunal has no arbitration, should participate in the Indian expert said here Monday. j u r i s d i c t i o n o ve r r e l e va n t arbitration, should give undertakings submissions, and awards rendered that the binding outcome will be Swaran Singh, professor at by it are null and void and have no acceptable to them, which are School of International Studies of binding force. missing in this case,” he said. Jawaharlal Nehru University in India, said the arbitration unilateral Speaking to reporters during a “So I think the casualty here is initiated by the Philippines is not a think tank seminar on South China arbitration itself. The trust of people victory even for the Philippines Sea and regional cooperation and in international relations in itself, as the newly inaugurated development, Singh said the arbitral arbitration being a solution has been president Rodrigo Duterte had tribunal lacked political wisdom by really hit badly by this.” shown little trust in the arbitration. not seeking a resolution on the MANILA'S EXPENSES FOR SOUTH CHINA SEA ARBITRATION SHOULD BE MADE PUBLIC
Beijing, July 29 (Xinhua) — The arbitration, paid by whom and to Philippine government hid the truth great expenses for the South China whom, have not only sparked hot from its nationals. Sea arbitration unilaterally initiated debates in the Philippines, but also by t h e f o r m e r P h i l i p p i n e drawn attention worldwide. The government “never told the government should be made public, public how much the arbitration as some Filipinos are already It had cost Manila 30 million would cost the Filipino taxpayers. questioning the source of the U.S. dollars to merely pay off legal The Constitution provides that no money. fees and expenses of lawyers who money shall be paid out of the prepared the case against China, Treasury except in pursuance of an In 2013, the Benigno Aquino III R i g o b e r t o T i g l a o, f o r m e r appropriation made by law, yet no administration unilaterally filed a spokesperson and head of appropriation has been disclosed for case on the South China Sea dispute presidential office for former this particular purpose,” he wrote to between the Philippines and China. Philippine President Gloria the Manila Times. An ad hoc arbitral tribunal set up at Macapagal Arroyo, wrote in an Manila’s request issued a highly article published in mid-July by the “How much then is it? Are any controversial and biased award on Manila Times. foreign donors involved?” he asked. July 12, denying China’s long- standing historic rights in the South This prompted a question, “The U.S. Central Intelligence China Sea. raised openly three days later by Agency or its State Department former senator Francisco S. Tatad, should reimburse us,” said Tiglao, Questions about how much about the real cost of the arbitration. suggesting that the arbitration case money has been spent on the He suspected that the former provides an excuse for the United
News From China August 2016 45 Indians in China
States to interfere in the South China A gross sum of partial expenses Manila’s claims, the arbitral award Sea. can be traced on the basis of open has been widely questioned and data, Wang said. For instance, challenged in the world. What’s Looking back, The Hague- charges of secretarial service include worse, it indicates something fishy based Per manent Court of openly-priced human labor, a single about the arbitrators, Wang said. Arbitration (PCA) charged the payment of 2,000 euros (2,218 arbitral tribunal for the South China dollars) for registration, and daily Wang believes that certain Sea case 2.85 million euros (3.16 rent of office equipment at 1,750 countries such as the United States million dollars ) for the secretarial euros (1,940 dollars), among other and Japan, and some organizations, service. things, and the hearings room is probably have invested a great deal charged at 1,000 euros (1,109 of money and resources in the South This was a sum all paid by dollars) per day. China Sea arbitration case, citing the Manila, including the share first payment by some U.S. supposed to have been borne by “Such estimations can lead to a institutions. Beijing, which had insisted on a conclusion that the arbitrators stance of non-acceptance of and pocketed largely the money Manila However, what Manila finally n o n - p a r t i c i p a t i o n i n t h e paid,” Wang wrote in an article gained from the arbitration case is arbitration. published on July 28 in China’s nothing but a scrap of paper, instead Global Times newspaper. of benefits, he said. This cost is supposed to cover human labor and rents for office and The PCA charges are the only In this regard, it is necessary for office equipment, as well as possible part made public of the expenses of Manila to open the records of payments to the five members of the the arbitration case, Wang said. expenses for the arbitration, so as to arbitral tribunal, said Wang Hanling, respond to the questions raise by the a Chinese maritime law expert at the Setting a rare precedent in the Philippine people and address the Chinese Academy of Social history of international justice and concerns of the international Sciences. arbitration by sweepingly siding with community, Wang concluded.
Indians in China REFLECTIONS ON A SHORT PASSAGE THROUGH CHINA Sudipto Mundle
Far removed from the boiling infrastructure, deployed on a There are three key challenges to tension in the South China Sea, ours massive scale, is one of the two i m p l e m e n t i n g t h i s m o d e l . was a peaceful journey through pillars of China’s new development Maintaining a high rate of South Central China. model, the other being a rapid i nve s t m e n t , e nv i r o n m e n t a l increase in domestic consumption. sustainability and achieving an On arrival in Guangzhou, we The question is whether the new income distribution that can drive had our first experience of a Chinese model can deliver a moderately high domestic mass consumption. Our bullet train. The bullet trains are growth rate of 6.5 %, the “new short passage through China gave us symbols of the new 21st century normal” target over the medium a glimpse of how the new growth China. High investment in globally term (Justin Lin, China Daily 28 June strategy and the challenges are competitive, top quality, modern 2016). playing out on the ground.
46 News From China August 2016 Indians in China
We took our first bullet train called Yangshuo. I had always and elsewhere to diversify from coal from Guangzhou to the resort town wondered about Chinese paintings to renewable sources of energy on of Guilin. These trains are punctual of oddly shaped hills, tumbling one the supply-side. In Guilin and to the minute, unlike flights that are upon another, until I saw these Yangshuo, we saw how the challenge often late, sometimes very late. They limestone formations along the Li is being addressed on the demand are also modern in design, river. The paintings are remarkably side. With incomes rising, the comfortable and clean, similar to the faithful depictions of the real thing. Chinese are moving on from cycles TGV in France or the Shinkansen in to motorized personal transport, Japan. The difference is scale. China Yangshuo Mountain Retreat is mostly low-cost two-wheelers. But probably has more than a hundred located in a serene setting on the these are powered by electric of these bullet trains crisscrossing banks of the Yulong river batteries, not diesel or petrol. China the country over the largest bullet surrounded by Karst hills. I was is producing millions of these two- train network in the world. tempted to wade into the Yulong, wheelers every year. I was also but was dissuaded by hotel staff who amused to see how jugaad has been Guilin is one of China’s most said the water was not very clean. raised to another level in China. popular, picturesque resort towns, Next day, as we rafted down the Many of these two-wheelers had located in southern China. Apart river, I noted that the froth on the shades mounted on steel rods to from the Reed Flute Cave and many water was not just surf. Pollution is a protect rider and pillion from sun other natural attractions, Guilin is problem that China is yet to crack. and rain! the starting point of a fascinating cruise down the picturesque Li river That is not to suggest that it is From Guilin, we flew to Xi’an to that winds its way through ranges of not trying. I describe below the see the famous terracotta army of Karst hills to a quaint hill resort efforts being made in Chongqing Qin Shi, China’s first emperor. They
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Guilin attract millions of tourists every beyond pandas, Chengdu is also the China. In the morning and after year. However, Xi’an is also capital of Sechwan province, the work at dusk, people join different emerging as a major industrial hub home of the fiery Sechwan cuisine, groups in public spaces, practise the of west-central China under the Go and an intellectual hub with many steps and dance. It is such a West policy, shifting the investment universities and research centres. It is wonderful, enjoyable form of focus away from the eastern also an important base of the exercise. seaboard to cities in the western People’s Liberation Army. That has hinterland. Unfortunately, Xi’an also given Chengdu a comparative From Chengdu, we went on to sports the “ghost cities” that have advantage in emerging as a leading Chongqing to start our Yangtze sprouted in different parts of China. centre for high technology industries cruise. Over three days, we cruised Though there is a housing shortage l i ke e l e c t r o n i c s, r o b o t i c s, past countless misty peaks stretching in metropolises like Beijing and biotechnolog y and defence into the horizon, awesome gorges, Shanghai, in the smaller cities, too production, with spin-offs for and the almost tactile softness of many apartment blocks have been civilian industry. Chengdu has beautiful bamboo forests. The sheer built and prices have collapsed. produced China’s first indigenous beauty of these landscapes are as There are no takers. Hundreds of regional jetliner, the ARJ21-700, inspiring for the tourist as they have high-rise apartment blocks remain now flying commercially. The C919, been for countless generations of unoccupied, dark, and unsold, a large passenger aircraft, has also painters. But the cruise begins in a reminiscent of Bangkok during the reached production stage. very different, modern, urban Asian financial crisis of 1997. setting, Chongqing—one of the What charmed us most about largest cities in the world. And the From Xi’an, we went on to Chengdu were the dozens of men cruise ends shortly after passing Chengdu, which is best known for its and women dancing in the setting through another icon of modern pandas. We spent a whole day sun in many squares and parks China, the Three Gorges Dam. attending to these loveable but around the city. This seems to be the fragile animals as volunteers. But new trend for workouts all over With a population of 33 million,
48 News From China August 2016 Indians in China
Chongqing is the largest of five of jobs, leaving behind uncultivated This mammoth dam has centrally administered regional land. But urban Chongqing is short p r e d i c t a b l y r a i s e d m a n y municipalities, the others being of land. A Rural Land Exchange controversies, some of which have Beijing, Shanghai, Tianjin, and established in 2008 buys the been addressed. The dam displaced Guangzhou. One of China’s major homestead land of migrants and an estimated 1.3 million people. All manufacturing hubs, it has develops it for alternative urban land of them have been relocated in new traditional smoke-stack industries use. apartments in many new townships like steel, cement and chemicals as along the river which we passed. well as electronics, transport The Three Gorges Dam, near Silting at the dam could eventually equipment and other new industries. the other end of the Yangtze cruise, choke the dam. However, spillways The city reportedly accounts for is the largest dam in the world, with a have been built all along the dam more than half of all the laptops length of 2.3km and a height of 185 wall that force out much of the silt produced in the world, and meters, with an ingenious two-way at high pressure. It is estimated that Changan, one of China’s oldest and system of five locks to move ships the dam will remain functional for largest car manufacturers, is located across the dam. Built primarily to about 100 years. However, there here. control the frequent floods which remains the risk of natural disaster. have killed hundreds of thousands The dam has been designed to The city has adopted a novel of people in the past, the dam now withstand the pressure of even very approach towards addressing a rural- protects millions of people living in heavy “once in a century” floods. urban land imbalance that may have the flood plain of the Yangtze, But the possible consequences of a useful lessons for the rest of China. spread over 607,000 hectares. very strong earthquake that might Rural areas account for about 45% Additionally, the 26 massive turbines crack the dam are too frightening to of the population. Many rural of the dam generate 18,000 contemplate. households are migrating in search megawatts of power.
Chongqing
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As the cruise ended and we flew enterprises and zombie banks house-hold help and others who back to Guangzhou on our way out undermining the system as in Japan’s make about S$4,000-$5,000 per year of China, I reflected on all that we lost decades (Stephen Roach, China (RMB 2,000-3,000 per month). had seen and how things might play Daily, 30 June 2016), China needs an incomes policy to out. substantially raise the purchasing The other pillar of the new power of this class of workers to The investment pillar of China’s growth strategy, rising domestic secure the consumption pillar of its new growth strategy seems to be consumption, is subject to greater new growth strategy. quite firm. There are clearly huge risks. China’s rising dependency ratio opportunities for such investment. will constrain the growth in per (Mr.Sudipto Mundle is emeritus professor Given the fiscal headroom and a capita consumption. at the National Institute of Public Finance high savings rate of nearly 50%, and Policy, and a senior visiting fellow at financing should also not be a The other risk is the low wage of the Centre for Public Affairs and Critical constraint. That is, provided China unorganized sector workers: Theory, Shiv Nadar University, New can avoid the risk of zombie state restaurant waiters, shop assistants, Delhi.) WANGMANG MOUNTAIN : BRIDGE TO DIVINITY Akhil Parashar
50 News From China August 2016 Indians in China
I will never forget the moments traveled to the high altitudes of bordered by steep cliffs, and then I spent on Wangmang Mountain. It Wangmang Mountain by minibus. climb a series of stone steps carved was a dreamland, an extraordinary The infrastructure facilities are in the rock. place to view mountains and forests perfectly built, and nearby villages of pine, shrouded in misty clouds. and areas are also well developed. I Cut off from the rest of the was astonished to see such world, the village was doomed to Mountaineering is a culture development there. become a ghost town unless a road deeply steeped in ethics and ideals. It could be built through the cliffs. symbolizes how man and nature are At the site, one feels the spirit of Villagers of Xiyagou cut one by intertwined. the mountain and hears the whispers hand, starting in the 1960s. The of history. There are more than 50 project took 30 years to complete, It was incredible to visit the summits, the highest reaching 1,665 but it was their only hope and they Wangmangling scenic area, located meters, the lowest standing at 800 succeeded. Today, the village is in Lingchuan county, Shanxi meters. accessible by car, a huge leap province. In fact, my memory bank forward. When China opened its is filled with images of the time I Wangmang Mountain boasts borders for tourism around 2000, spent there: of closeness to nature, numerous unique peaks and the hand-cut tunnel became an beautiful and unique views, good fascinating geographical conditions. attraction for thousands of visitors ecological environment, cool It is hard for a person standing on a every year. Hotels sprang up to weather. The effects of the change in high ridge to describe the feeling. accommodate all the guests. And altitude can be felt there. from there, the local economy has T here is nothing more continued to expand. The cool somberness of nature spectacular than a typical sunrise on signal that the visitor is entering Wangmang Mountain. The day of Mountain climbing embodies divine territory. our visit, the ridges and peaks were traditions that tough the spirit of immersed in a vast ksea of mist and mankind. It’s a sacred feeling — the The beauty of Wangmang is clouds. We could see a large area of only reward is to be found within picture-perfect, a fusion of high green forest and enjoyed graceful one’s heart. Wangmang Mountain mountain valleys, lakes and many flowers on the cliffs and beside the provides a perfect landscape for streams. It is unique for its scenery path photographers, professional or — seas of cloud, sunrise, marvelous . amateur, and a spectacular canvas of peaks, waves of pines. And there is a The tiny village of Xiyagou is mountain scenery. breathtaking road along a cliff’s situated on a mountaintop. In earlier edge. times, it had been isolated from the The sheer size and magnificence rest of the world. The only way to of these mountains with their It is a pity, as it’s said, that so reach it was to ascend a narrow valley shrouded peaks is a sight that will m a n y p e o p l e k n ow a b o u t leave anyone breathless. The might Huangshan mountain, Guilin and of nature reminds me of the sheer Zhangjiajie, but not Wangmang Wangmang Mountain insignificance of man. I have stood Mountain. If you don’t know about provides a perfect still for hours just gazing at the play Wangmang, it means you have yet to of the Mountain Gods. I have seen visit one of China’s perfect places. In l a n d s c a p e f o r Heaven meeting Earth. I have seen the Wangmang Mountain Scenic p h o t o g r a p h e r s , the bridge between divinity and Area, serenity lies in the sunshine, p r o f e s s i o n a l o r reality light, water, greenery, mountains, . mist and cloud. It is the coziest place a m a t e u r, a n d a Writer : AKHIL PARASHAR in China I’ve ever been. spectacular canvas of (working in China Radio International, mountain scenery. Beijing) Our group, mostly foreigners,
News From China August 2016 51 Rio Olympics Rio Olympics PISTOL SHOOTER ZHANG MENGXUE WINS CHINA'S FIRST GOLD IN RIO
Zhang Mengxue of China shows the gold medal at the awarding ceremony of the Women's 10m Air Pistol of the 2016 Rio Olympic Games at the Olympic Shooting Centre in Rio de Janeiro, Brazil, on Aug. 7, 2016. (Xinhua/Han Yuqing)
T he 25-year-old Zhang Anna Korakaki of Greece, who The Chinese shooting team gave Mengxue won China’s first gold at scored 177.7 points. a hard try on the opening day of the the Rio Olympics by claiming the Rio Olympic shooting competition, women’s 10m air pistol title here on Due to the change of rules by but neither Du Li nor Pang Wei August 7. the sport’s world governing body finished with a gold in their ISSF, all winning marks at the finals respective final on Saturday. Zhang finished the eight- of the Rio Olympics will be member final with 199.4 points. recognized as new Olympic records, Two-time Olympic champion Vitalina Batsarashkina of Russia so does Zhang’s 199.4 points in the Guo Wenjun was considered as the took home the silver with 197.1 women’s 10m air pistol final. top favorite, but the veteran didn’t points. The bronze medal went to survive the qualification stage. Guo
52 News From China August 2016 Rio Olympics shot 378 points, 6 points under the qualification line, and finished her third Olympics with the 30th place.
Zhang placed the seventh in the qualification to get into the final. The two-time ISSF 2016 World Cup bronze medalist had a slow start. All her first four shots were below 10, and she was ranked sixth before the elimination round.
Zhang found back her good form from the seventh shot. She hit straight 10s and steadily moved up in the rankings.
Zhang took the lead after hitting coach and my team, and I’m really happened, so that is why I am so 10.6 and 10.3 points in the 11th and happy to win gold in my first calm right now,” said Batsarashkina 12th shots, and she managed to Olympics.” about her Olympic debut. broaden the lead by every shooting round. She was 2.0 points ahead of The 19-year-old Russian Korakaki, one year older than Batsarashkina with two shots left, Batsarashkina secured the silver Batsarashkina, went through some and the 19.5 points was enough for medal with a solid performance, ups and downs during the final, but her to take the title. hitting the 10th ring with 10 of her the bronze was a milestone as it’s the 20 shots. first medal in shooting in the history “I didn’t have so much of Greece. expectation before the competiton,” “I feel very good, but I still said Zhang. “I want to thank my cannot understand what has
CHINESE LIFTER LONG SMASHES WORLD RECORD TO WIN HIS 2ND OLYMPIC GOLD Chinese lifter Long Qingquan Long hoisted 137kg in snatch second Olympic gold medal, in any claimed his second Olympic gold and 170kg in the jerk to break the men’s and women’s weightlifting medal when he won the men’s 56kg previous world best of 305kg set by event. weightlifting event with a world Turkish legend Halil Mutlu 16 years record total of 307 kg on August 7. ago in the Sydney 2000 Games. “I am really happy. I am really proud. I came to this competition The 25-year-old Long, the 2008 Om, 24, snatched 134kg and with two dreams: to win the Olympic gold medalist, overcame jerked 169kg for a combined lift of competition and break the world the challenge from defending 303kg to settle for the silver medal. record and I did both.” Long said. champion Om Yun Chaol of the Democratic People’s Republic of Long is the first weightlifter with “I have prepared for the Korea. eight years between his first and competition for four years
News From China August 2016 53 Rio Olympics because I did not get to compete in the (London) 2012 Olympic Games. After four years I did it.” said Long.
Om was beaten for the first time in a major competition since he won this event at the London Olympics in 2012.
“I do not feel satisfied. I was hoping for gold. I put a lot of effort in. I just did not win.” Om said.
“I never thought that Long could lift 170kg, because he never did that in the training before,” said Yu Jie, the head coach of the men’s team.
“He was perfect in the power, the technics and the psychology. He was amazing today.” Yu added.
S i n p h e t Ku r a i t h o n g o f Thailand took the bronze with 289kg, becoming the first male weightlifter from his nation to win a medal at the Olympic Games.
“I did not expect that I would get a medal, but I just did what I had practised.” Kruaithong said. CHINA WIN FIRST DIVING GOLD OF RIO GAMES China secured the first diving 31.77 points ahead of silver Aquatics Center continued China’s gold medal of the Rio Olympics medallists Tania Cagnotto and remarkable sequence of results in when Wu Minxia and Shi Tingmao Francesca Dallape of Italy. the event. The Asian nation has won won the women’s synchronised 3m every world and Olympic title in the springboard on August 7. Australia’s Maddison Keeney women’s synchronized springboard and Anabelle Smith took bronze since the 2000 Sydney Games. The pair lived up to its billing as with 299.19 points. favorite with an overall score of The performance also secured a 345.60 points from five dives, some The result at the Maria Lenk raft of records for veteran Wu.
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woman to win an Olympic diving record held by Canada’s Emilie The 30-year-old has now won medal, overtaking the USA’s Micki Heymans for diving medals in the the most Olympic diving medals by a King, who was 28 when she won the most Olympic Games (four). woman, surpassing compatriot Guo springboard title in 1972. JingJing with seven podium finishes. In addition, Wu equalled the She also became the oldest
Chinese diving athletes Wu Minxia (R) and Shi Tingmao show gold medals at the awarding ceremony of women’s SYNC.3M Springboard in Rio de Janeiro, Brazil, on Aug. 7, 2016. Wu Minxia and Shi Tingmao won the gold medal with 345.60. (Xinhua/Cao Can) CHINA'S SUN YANG WINS 200M FREESTYLE GOLD China’s Sun Yang clinched his of South Africa’s Chad le Clos with London 2012 Games. third Olympic gold medal on August the USA’s Conor Dwyer 0.58sec World record holder Paul 8 by winning the men’s 200m further back. Biedermann of Germany was sixth freestyle at the Rio Olympics. It was China’s first swimming in the final, 1.19sec behind Sun. The 24-year-old finished in 1 gold medal of the Rio Games. Sun minute 44.65 seconds, 0.55sec ahead won silver in the same event at the
News From China August 2016 55 Rio Olympics
56 News From China August 2016 Culture & Life Culture & Life CHINESE VALENTINE'S DAY: "QI XI" by Wang Shiyu
Group wedding at Qi Xi festival in Central China’s Zhengzhou city
Beijing, Aug. 4 (Xinhuanet) — This is a day with the secretly married a young human on Valentine’s Day is for everyone, multifarious myths behind it. In the Earth, an orphaned cowherd. whether you have your sweet heart 2006, it was included in the China This infuriated the Mother Queen. or not. Those who don’t may feel Intangible Cultural Heritage List the festive atmosphere as well. along with the Spring Festival, The Mother Queen forced the Anyway, nobody wants to miss this Dragon Boat Festival by the State poor “Seventh Daughter” to ascend sweet day. Council. up back to the Heaven and seized her while her husband and their two As a country of long history and Originated in the Han Dynasty children chased after her. When they rich culture, China has her special (202 BC-220 AD), the story said a were about to catch up with her, the day for people in love. The day is “Seventh Daughter” of the Mother heartless Mother Queen took off called the Magpie Festival, Double Queen in the Heaven is in a vision of one of her gold hairpins and made a Seventh Festival or simply “Qi Xi”. heavenly beauty and dexterous. stroke. It happens to fall on August 9, this Against the rule of the Heaven, the year. fairy daughter fell in love with and Suddenly, a billowy river, the
News From China August 2016 57 Culture & Life
Milky Way, ran between the husband Thus, the story said, on “Qi Xi” , “‘Qi Xi’ shows one side of vivid and his wife and separated them with tens of thousands of magpies would Chinese culture. We choose to send the river up in the sky. From then on, fly to the sky to build a bridge for the our daughter her portrait. This is they could see each other from both couple and their twins to walk cross more meaningful than sending some sides of the river, but could never be and meet each other. “No wonder expensive but less useful gifts and I together. After uncountable years, magpies are seen scarcely on that day hope my daughter would feel that the deadly sadness of the couple and as they are building the bridge up in she has a sweet family,” said a distressing cry and call for mommy the sky,” many Chinese really believe. mother. of their twins somewhat touched the Mother Queen. As time goes by, people make “Qi Xi” is in fact more than a this day as the sweet day for people festival. It has become a bridge for She allowed the “Seventh to glorify their loyal and steadfast cultural communication. Now the Daughter” and her husband to be love. tradition of celebration has spread together only once every year — on to other places in East Asia. the seventh day of the seventh lunar Today in China, besides various month — “Qi Xi” (Double customs and celebrations on this The Japanese call it the Tanabata Seventh). day, one special activity is that many festival. Joyous fireworks party is loving couples would take their typical on this day across the The couple’s loyalty to love not daughters to the place where they country. In South Korea and only touched the Mother Queen, but themselves first fell in love with each Vietnam, different kinds of special even touched the magpies, a kind of other. They like to pay someone on flour-made food – sweet and birds symbolizing happiness in the spot to paint portraits for their sticking — are popular for the Chinese culture. daughters. celebration.
Young people playing with water to celebrate qixi
58 News From China August 2016 Culture & Life 10TH CHINA INTERNATIONAL FOLK ART FESTIVAL OPENS
Chinese acrobats perform during the opening ceremony
Actresses from India perform during the opening ceremony
News From China August 2016 59 Culture & Life
Artists from 13 countries have provincial government. the company’s original dance drama gathered in northwest China’s Titanic to be performed in China. Qinghai Province, as the 10th China Shi Honggang, chair of Xining The development of art is dependent International Folk Art Festival was art theater, said the festival will not on the inheritance, exchange and kicked off in the provincial capital only broaden the horizons of the innovation of art lovers, he said. of Xining on August 8, 2016. audience in Qinghai, but raise the profile of Qinghai’s art. Launched in 1990 with the The event, scheduled to last till approval of the State Council, the Aug. 13, is jointly hosted by China David Mclaughlin, art director of festival has been held triennially by Federation of Literary and Art Ireland Titanic dance theater CFLAC and a domestic city. Circles (CFLAC) and the Qinghai company, said it is the first time for SE CHINA'S UNDERWATER WORLD BECOMES POPULAR SPOT IN SUMMER VACATION
Underwater ballet dancers perform at the Zuohai Underwater World in Fuzhou, capital of southeast China’s Fujian Province, Aug. 9, 2016. The underwater world became a popular spot for children here during the summer vacation.
60 News From China August 2016 Culture & Life
Tourists view the fish at the Zuohai Underwater World in Fuzhou, capital of southeast China’s Fujian Province, Aug. 9, 2016. The underwater world became a popular spot for children here during the summer vacation.
A boy takes photos of a performance at the Zuohai Underwater World in Fuzhou, capital of southeast China’s Fujian Province, Aug. 9, 2016. The underwater world became a popular spot for children here during the summer vacation.
News From China August 2016 61 Tibet Today Tibet Today PANCHEN LAMA LEADS FIRST KALACHAKRA RITUAL IN TIBET IN 50 YEARS
Xigaze, Tibet, July 21 (Xinhua) Gansu Province and Zhaxi Lhunbo through the cycle of life. — The first Kalachakra instructions Lamaser y in Xigaze, Tibet delivered by the 11th Panchen Lama Autonomous Region, will perform This is the first time in 50 years Bainqen Erdini Qoigyijabu have the ritual every morning during the that the ritual has been performed in formally begun, with some 40 four-day event. Tibet. monks beginning a closed-door observance Thursday morning. The Kalachakra (the wheel of To embrace the grand event, time) ritual includes a series of Zhaxi Lhunbo Lamasery, the home The monks, from Labrang teachings and initiations that are temple of Panchen Lamas, started Lamasery in northwest China’s given by gurus to help Buddhists preparations one month ago. In
62 News From China August 2016 Tibet Today
Zhaxi Lhunbo last December, the 11th Panchen Lama celebrated the 2 0 t h a n n i v e r s a r y o f h i s enthronement.
Currently serving as vice president of the Buddhist Association of China, the 11th Panchen Lama has received some 1,000 initiations and performed head-touching blessings for about 1.5 million Buddhists.
Latest statistics showed more than 100,000 people have attended the ritual held in the New Palace of Panchen Lama near Zhaxi Lhunbo, including 5,000 monks and nuns and 100 lamas.
After overnight rainfall and intermittent drizzling, the meadow in the New Palace of Panchen Lama turned muddy and slippery. Still, people swarmed into the venue at noon to hear the public instruction and initiations scheduled each afternoon.
Before the afternoon session started, monks in crimson-colored robes carried dozens of huge kettles to pour hot tea for participants to help them dispel the cold. Barley biscuits were also distributed by monks to the excited crowd.
A volunteer put cypress branches and barley powder brought by devotees into a yellow stove and The 11th Panchen Lama then In his opening remarks, the 11th burned them to pray for an led the chanting of scripture, with Panchen Lama called the rainfall “an auspicious ritual. 100 senior monks kowtowing in auspicious sign,” mentioning that it front of the throne. also rained once when the 10th After the 11th Panchen Lama Panchen Lama held a ritual. ascended to his silk-covered throne The crowd of pilgrims started in the afternoon, senior monks from to throw hada, a silk cloth, toward At that time, the 10th Panchen the Zhaxi Lhunbo Lamasery the 11th Panchen Lama as a greeting. Lama explained that the rain presented traditional Tibetan Quickly, hadas piled up in front of indicated purification, said the 11th offerings to him. the crowd. Panchen Lama, reminding the
News From China August 2016 63 Tibet Today elderly to keep warm on the rainy from his parents when he was small, instruction was very important as day. Tsering said he had wished to hear i t a d d r e s s e d t h e p r o p e r the precious teaching for a long time motivations followers must have Sitting on the ground and with and was very happy to join in the when seeking dharma from prayer beads in hand, Tsering ritual. t e a c h e r s a s w e l l a s t h e Wangla from Geding Township of commandments they must keep. Sagya County, Xigaze, said that the “I didn’t expect there to be so cold and drizzle were “not many people, and I have to watch To e n s u r e t h e s m o o t h hardships at all,” and he rejoiced at from the distance,” he said. operation of the grand event and the event “from the bottom of his o f f e r c o n v e n i e n c e f o r heart.” Aga, a 51-year-old herder from participants, a dozen temporary Nagqu in northern Tibet, listened water stations and toilets have The 41-year-old farmer woke up attentively to the instructions of the been built. at half past five on Thursday 11th Panchen Lama. morning to prepare for the Some 50 doctors and nurses excursion. It was also his first time to “Receiving the Kalachakra from local hospitals have been participate in such a ritual. initiation from Panchen Lama is assembled in 11 medical squads to really a hard-won blessing,” he said. provide emergency aid when Tsering, 20, a driver from necessary and manage sanitation Namling County, Xigaze sat in the Monk Shera Phuntsog from control. back. He took two days off so he Hao Lamasery in Xigaze also could attend the ritual, which lasts treasured the instructions of the No major emergency treatment until July 24. 11th Panchen Lama. was performed on the first day, according to Sogdoi from the Xigaze Hearing the Kalachakra first He said that the first-day Health Bureau.
64 News From China August 2016 Tibet Today 11TH PANCHEN LAMA VISITS NAGQU IN CHINA'S TIBET
The 11th Panchen Lama Bainqen Erdini Qoigyijabu waves as he attends a horse race festival in Lhari County of Nagqu, southwest China’s Tibet Autonomous Region, Aug. 4, 2016. The 11th Panchen Lama, currently serving as vice president of the Buddhist Association of China, visited Nagqu and attended religious activities here from July 29 to Aug. 9. (Xinhua/Chogo)
The 11th Panchen Lama Bainqen Erdini Qoigyijabu (R, front) touches the head of a herdsman in Lhari County of Nagqu, southwest China’s Tibet Autonomous Region, Aug. 7, 2016. The 11th Panchen Lama, currently serving as vice president of the Buddhist Association of China, visited Nagqu and attended religious activities here from July 29 to Aug. 9. (Xinhua/Chogo)
News From China August 2016 65 Tibet Today
The 11th Panchen Lama Bainqen Erdini Qoigyijabu visits a local herdsman in Lhari County of Nagqu, southwest China’s Tibet Autonomous Region, Aug. 7, 2016. The 11th Panchen Lama, currently serving as vice president of the Buddhist Association of China, visited Nagqu and attended religious activities here from July 29 to Aug. 9. (Xinhua/Chogo)
The 11th Panchen Lama Bainqen Erdini Qoigyijabu walks on meadow in Lhari County of Nagqu, southwest China’s Tibet Autonomous Region, Aug. 6, 2016. The 11th Panchen Lama, currently serving as vice president of the Buddhist Association of China, visited Nagqu and attended religious activities here from July 29 to Aug. 9. (Xinhua/Chogo)
66 News From China August 2016 Tibet Today
The 11th Panchen Lama Bainqen Erdini Qoigyijabu (R, front) arrives in Lhari County of Nagqu, southwest China’s Tibet Autonomous Region, Aug. 3, 2016. The 11th Panchen Lama, currently serving as vice president of the Buddhist Association of China, visited Nagqu and attended religious activities here from July 29 to Aug. 9. (Xinhua/Chogo)
News From China August 2016 67 Book Review TIBET RECEIVES OVER 6.8 MILLION TOURISTS IN H1
More than 6.8 million Chinese and foreign tourists visited s o u t h w e s t C h i n a ’s T i b e t Autonomous Region in the first half of 2016, up 31.9 percent year on year, authorities said On August 4 ,2016 .
Tourism revenue during the period increased by 32.1 percent year on year to 7 billion yuan (1.05 billion U.S. dollars), according to a statement issued by the regional tourism development commission.
Tourism authorities and resorts now offer special tours, inviting visitors to enjoy the region’s festivals, hiking trails, and cuisine. it said. tourists in the following months Culture Expo, and celebrate the than the first half as the region will shoton (Yogurt) and the horse race Tourism experts forecast more host the China Tibet Tourism and festivals.
BOOK REVIEW Ren Zhengfei – Lessons from Battle
Huawei is a rather unique type of corporation characterized by decentralised ownership, and strong presence abroad. The image it has built of itself has earned the company the name “China Dragon”. Ren Zhengfei, the founder of this China Dragon” today employing 100,000 staff has become an inspiration to many.
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
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News From China August 2016 69 CRI CIBN
70 News From China August 2016 71 The Temple of Heaven in Beijing
The Temple of Heaven Park is Originally the place where Mound Altar, the Imperial Vault of Heaven and the Hall of emperors of the Ming Dynasty (1368 - 1644) and the Qing Prayer for Good Harvest from south to north. Dynasty (1644 - 1911) held the Heaven Worship Ceremony. It Featured Attractions: is China’s largest and most representative existing masterpiece among China’s ancient sacrificial buildings. 1. The legend of the echo from the Temple’s Echo Wall: There is a circular wall around The Imperial Vault of The First built in 1420, Its grand architectural style and profound Temple of Heaven, which many refer to as the Echo Wall. cultural connotation give an insight into the practices of the Legend has it that if you whisper at any point closest to the ancient Eastern civilization. wall, it is said that one may be able to hear you clearly on the Covering an area of 2,700,000 square meters. The temple is other side. It is said to be so clear that it almost sounds like enclosed by a long wall. The northern part within the wall is talking on the phone. semicircular symbolizing the heavens and the southern part is 2. The Heaven’s Center Stone: There is a stone in the center square symbolizing the earth. The northern part is higher than of the Circular Mound Altar called the Heaven’s Center the southern part. This design shows that the heaven is high Stone. Stand above it and shout loudly, you will hear the and the earth is low and the design reflected an ancient reverberation. It’s a scenic spot that is one of the most Chinese thought of ‘the heaven is round and the earth is frequented hot spots of the city. We’re almost sure you’ll square’. The most magnificent buildings are the Circular enjoy your time there. 72 Postal Regd. No. DL-SW-16/4034/15-17 R.N.I. No. 47440/88 August 2016
The Chinese sports delegation at the Opening Ceremony of the Rio Olympics
Published, Printed and Edited by Press Counsellor Ms. 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 Date of Publishing: 24th of every month Posted at Chanakyapuri P.O. on 27th & 28th of every month 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
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