VOL. XXIV No. 1 January 2012 Rs. 10.00
Chinese people celebrate the Spring Festival which marks the beginning of the Chinese Lunar New Year of Dragon. It is the most important festival in China. Chinese people enjoy a week holiday from Jan. 22 to Jan 28, 2012 for the auspicious occasion. Indian Prime Minister Manmohan Singh met with Chinese Chinese Special Representative, State Councilor Dai State Councilor Dai Bingguo (L) in New Delhi on Jan. 17. Bingguo and Indian Special Representative, National China and India held the 15th meeting of the Special Security Advisor Shivshankar Menon met the press in Representatives on the China-India Boundary Question Hyderabad House in New Delhi on Jan. 16 during the 15th here on Jan.16 and 17, 2012. meeting of the Special Representatives on the China-India Boundary Question.
The 15th meeting of the Special Representatives on the Indian National Security Advisor Shivshankar Menon China-India Boundary Question in New Delhi on Jan.16 and hosted a banquet for visiting Chinese Special 17, 2012. Representative on the China-India Boundary Question and State Councilor Dai Bingguo in New Delhi on the evening of Jan.16, 2012.
At the conclusion of the 15th meeting of the Special Chinese Amabassador Zhang Yan and Indian National Representatives on the China-India Boundary Question, Security Advisor Shivshankar Menon delivered a speech Agreement on the Establishment of a Working Mechanism respectively on a lecture on China-India relations in the for Consultation and Coordination on China-India Border Leela Palace Hotel in New Delhi on Jan.9, 2012. Affairs was signed by Chinese Assistant Foreign Minister Liu Zhenmin(L) and Indian Ambassador to China S. Jaishankar(R) at the presence of the two countries' representatives and media. NEWS FROM CHINA /JANUARY 2012 3
CONTENTS
I. THE 15TH MEETING OF SPECIAL REPRESENTATIVES OF CHINA AND INDIA ON SINO-INDIAN BOUNDARY QUESTION
1. A Brighter Future When China and India Work Hand in Hand 4 2. Indian PM Meets with Chinese State Councilor in New Delhi 5 3. China,India Hold 15th Round of Special Representatives Talks on Border 6 4. China, India Sign Pact on Border Consultation, Coordination Working Mechanism 7 5. Dai Bingguo Delivers Speech on China-India Relations 7
II. LECTURE ON CHINA-INDIA RELATIONS
1. Chinese Ambassador Zhang Yan’s Speech at the Lecture on China-India Relations 8 2. Developments in India-China Relations 13
III. DOMESTIC AFFAIRS
1. Chinese President Delivers New Year Address, Stresses World Peace, Development 16 2. Chinese Leaders Watch Peking Opera for New Year 17 3. Legislature Reviews Government Reports 18 4. All 8,043 Suggestions Made at China’s Top Legislature Receive Feedback 20 5. Agriculture Still Vital to China 20 6. More Chinese Farmers Benefit from Transfer of Land-use Rights 21 7. Chinese Defense Department, Army Continue to Conduct Foreign Exchanges in 2012 22 8. Revenues of China’s Customs Duties Top 1.6 Trl Yuan 23 9. China’s Reading List Reveals a Few Surprises 23 10. Top 10 National Events in 2011 25 11. Top 10 Economic Events in 2011 30 12. Top 10 Cultural Events in 2011 35 13. The Plan for 2012 40
IV. TIBET TODAY
1. Chinese Official Talks with EU Representatives on Tibet Issues 46 2. China Earmarks Additional 8 Mln Yuan to Renovate Tibet’s Sera Monastery 54 4 NEWS FROM CHINA /JANUARY 2012
I. THE 15TH MEETING OF SPECIAL REPRESENTATIVES OF CHINA AND INDIA ON SINO-INDIAN BOUNDARY QUESTION
A Brighter Future When China and India Work Hand in Hand
By Dai Bingguo State Councilor of the People’s Republic of China
I am delighted to come back to the beautiful with one voice and enjoy increasingly closer metropolis of New Delhi and join my Indian coordination and collaboration in multilateral colleagues for the 15th meeting of the Special mechanisms and in tackling global challenges. The Representatives on the China-India boundary year 2011 was the “Year of China-India question. Every time I return, I am deeply Exchanges”. The first bilateral Strategic Economic impressed by the strong economic growth and Dialogue was held and 500 Indian youths visited remarkable progress India has achieved. China. Once again, these diverse exchanges got In the mid 1950s, China and India, in response our relations off to a good start in the second to the call of the time, jointly initiated the Five decade of the 21st century. China-India relations Principles of Peaceful Coexistence, or the have entered a fast track of growth. Panchsheel. Today, these five principles are still Our Indian friends may have confidence in shining with strong vitality. The world is China’s tremendous sentiment of friendship undergoing drastic and profound changes. China toward India. While working hard to develop itself, and India, both ancient civilizations and major China is fully committed to developing long-term developing countries whose combined population friendship and cooperation with India. It is our accounts for nearly two-fifths of the world’s total, genuine hope that India will enjoy prosperity and once again responded to the call of our time. Our its people happiness. There does not exist such a two countries have seized the historic opportunity thing as China’s attempt to “attack India” or of economic globalization and achieved fast “suppress India’s development”. China will development. We are now the two largest remain committed to the path of peaceful emerging countries in the world and play development. It will develop itself by upholding increasingly important roles in regional and world peace and contribute to world peace international affairs. through its development. We will grow on the I am happy to note that since the beginning of basis of our own efforts, reform and innovation; the new century, the China-India Strategic and at the same time, we will remain open to the Cooperative Partnership for Peace and Prosperity outside world and learn from other countries. We has continued to grow rapidly and our friendly will fully embrace economic globalization and seek cooperation has yielded fruitful results. The trade mutual benefit and common development with volume between our two countries has grown other countries. We will continue to work with the from US$2.9 billion in 2000 to US$61.7 billion in international community to promote the building 2010, an increase of 20 folds in 10 years. We speak of a harmonious world of enduring peace and NEWS FROM CHINA /JANUARY 2012 5
common prosperity. in. We need to guide and promote the growth of China’s conviction to peaceful development is China-India relations with the concept of peaceful not without foundation. It is rooted in the fine development. We need to view each other’s Chinese culture and tradition. Peaceful development in a positive light and regard each development is not an act of impulse. It came into other as major partners and friends, not rivals. We being in the course of reform and opening-up and always need to be each other’s good neighbor, is firmly supported by China’s state policy and good friend and good partner. As a man in his strategy. It is not a policy of expediency. Peaceful seventies, I truly hope that our children and development is a rational, strategic choice made children’s children will forever live in peace, in line with the trend of our time and China’s basic friendship and cooperation. condition. Even when China becomes truly We are now in the second decade of the 21st developed in the future, it will remain committed century. Looking ahead, China-India relations have to the path of peaceful development. huge potential and broad space for cooperation. Back in 1988, Mr. Deng Xiaoping said to then What we face is a golden period to grow China- Prime Minister Rajiv Gandhi that no genuine Asia- India relations. The world has enough space for Pacific century or Asian century would come China and India to achieve common development, without the development of China, India and other as there are so many areas for us to work together. developing countries. Prime Minister Singh also As neighbors and two big countries of a combined observed that when India and China speak with population of 2.5 billion, China and India can join one voice, the world will listen. These analyses of hands, seize the historic opportunity and work insight point to the tremendous importance and together to further advance our friendship and necessity for China and India to develop ourselves cooperation. Together, we will bring benefits to our well and advance the relations between us. For two countries, two peoples and the whole this is crucial not only to our two countries, but mankind. also to Asia and the whole world that we both live
Indian PM Meets with Chinese State Councilor in New Delhi
On January 17, 2012, Indian Prime Minister two countries had held their first strategic economic Manmohan Singh met Chinese Special dialogue last year. He also noted that 500 Indian Representative for the Sino-Indian Talks on youths were received cordially by Premier Wen in Boundary Issues and State Councilor Dai Bingguo Beijing last year. All these, he said, have shown who is on an official visit to the Indian capital New that India-China relations are experiencing a good Delhi. momentum at present. Singh first asked Dai to convey his greetings to Singh expressed his belief that good Chinese President Hu Jintao and Premier Wen cooperation between India and China will bring Jiabao. He said that India pays great importance about great changes to the world and said India is to its relations with China and the two countries ready to work with China to push forward bilateral have seen frequent exchanges of visit. cooperation in all fields. India will also carry out He said that bilateral trade between India and close cooperation with China in international China totaled near 70 billion U.S. dollars and the affairs and commonly safeguard the interests of 6 NEWS FROM CHINA /JANUARY 2012
the developing countries. great potentials for developing relations and wide The prime minister said that India-China perspective for cooperation, said the state councilor. Special Representatives Talks on Boundary Issues Dai also expressed his wish that the two held since 2003 have achieved positive progress. countries follow the direction of developing friendly He said India seeks a solution to the issue on the relations and work for greater cooperation aimed basis of fairness, reasonableness and mutual at win-win situation for both countries, while acceptance. He also wished the special realizing greater exchanges between the two representatives of the two countries to keep up peoples and creating a beautiful future for the their efforts to look for a framework to solve the relations of the two countries. issue on the basis of political guidelines signed by Dai also pointed out that China and India have the two sides, while the two countries should a history of border talks for 30 years and eight years maintain peace and tranquility on the border areas of talks between special representatives, which between them. have achieved positive progress and played a Dai conveyed cordial greetings and good major role in increasing understanding and trust, wishes from President Hu and Premier Wen. safeguarding peace and tranquility on the border He said China and India are important areas and promoting bilateral relations in general. cooperative partners. China highly evaluates its He expressed his hope that the two sides follow relations with India and wishes to continuously the instructions of the leaders of the two countries, pioneer new horizons for and deepen Sino-Indian make great efforts to find a suitable solution to the strategic cooperative partnership. border issue, while holding to the strategic and Dai said that over the past few years, China- political height of views on developing the overall India relations have seen great and fast bilateral relations. development, which has brought about substantial Dai noted that the BRICS summit will be held benefits to the two peoples. in India this year and China will support and Looking into the future, China and India have coordinate with India in hosting the summit.
China, India Hold 15th Round of Special Representatives Talks on Border
From January 15 to 17, 2012, the 15th Round under the agreement of political guidelines in of China and India Special Representatives Talks resolving boundary questions, seeking fair and on Boundary Questions was held in New Delhi. proper solutions acceptable to both sides. Chinese Special Representative, State Exchanging views on the framework of Councilor Dai Bingguo and Indian Special resolution, the two sides decided to sum up the Representative, National Security Advisor record agreed upon since framework negotiation Shivshankar Menon had a candid and in-depth began, and confirm in a proper manner so as to discussion on issues related to maintaining peace provide guidelines for future negotiation. and tranquillity in border areas of the two The two sides reiterated their efforts in countries. maintaining peace and tranquillity along their Both sides expressed willingness to carry common borders before the resolution of boundary forward the process of framework negotiation questions. NEWS FROM CHINA /JANUARY 2012 7
China, India Sign Pact on Border Consultation, Coordination Working Mechanism
New Delhi Jan. 17 (Xinhua) — China and India signed an agreement here Tuesday on establishing a working mechanism for consultation and coordination over their border issues. The agreement was signed by China’s Assistant Foreign Minister Liu Zhenmin and Indian Ambassador to China S. Jaishankar on behalf of their respective governments. The agreement is believed to help strengthen bilateral cooperation on border affairs, and benefit the joint effort to maintain peace and tranquillity of their borer areas. Under the agreement, the working mechanism boundary question or affect special representatives will be headed by officials at director general level mechanism. from China’s Foreign Ministry and at joint The working mechanism will study ways and secretary level from Indian External Affairs means to conduct and strengthen exchanges and Ministry, and will be composed of diplomatic and cooperation between military personnel and military officials of the two sides. establishments of the two sides in the border areas. The major task of the mechanism is to deal with It will provide a proper channel and platform border related affairs so as to maintain peace and facilitating information exchange and tranquillity in the border areas. coordination, so that border related affairs can be The mechanism will address issues and handled in a timely and effective manner at the situations that may arise in the border areas that diplomatic level. The mechanism will help enhance affect the maintenance of peace and tranquillity mutual trust, ensure peace and stability in the and will work actively towards maintaining the border areas, thus creating favorable conditions friendly atmosphere between the two countries. It for resolving boundary questions through will not, however, discuss resolution of the negotiations and promoting bilateral ties.
Dai Bingguo Delivers Speech on China-India Relations
On the evening of January 16, 2012, Indian a strategic partnership of global weight. The two National Security Advisor Shivshankar Menon countries should play greater role in the forming hosted a welcome banquet for visiting Chinese of a new world political and economic order based Special Representative for Sino-Indian Talks on on fairness and reasonableness. Boundary Issues and State Councilor Dai Bingguo. Over the past several years, the meetings of Dai said at the event that Sino-Indian relations have Special Representatives of China and India on evolved beyond simple bilateral relationship into Sino-Indian Boundary Issues have contributed to 8 NEWS FROM CHINA /JANUARY 2012
the maintenance of peace and tranquility on the is ready to work with Indian friends for the greater border areas of the two countries, as well as the development of bilateral relations and greater development of bilateral relations, said Dai. He said cooperation between the two countries with the China-India relations have achieved great purpose of benefitting the two peoples. development over the past few years and have Menon expressed welcome to Dai and his huge potentials for further development and wide entourage to visit India and join the 15th round of perspective of cooperation. Dai said the world is India-China Special Representatives Talks on experiencing huge and profound changes at Boundary Issues. He said that over the past few present. This, he said, is providing a rare years, the agendas of the India-China Special opportunity for both China and India to engage Representatives Talks on Boundary Issues have in their respective development and common kept widening, which has pushed forward development. Dai called on both sides to development of bilateral relations and cooperation emancipate their mind, pioneer into new horizons in international affairs between the two sides. of cooperation and focus the attention to the Menon also expressed his confidence that positive maximum limit of the 2.5 billion people of the two results will come out from the current round of countries on how to develop better the friendly talks. relations of the two countries. He also said China
II. LECTURE ON CHINA-INDIA RELATIONS
Chinese Ambassador Zhang Yan’s Speech at the Lecture on China-India Relations (New Delhi, January 9, 2012)
H.E. Mr. Shivshankar Menon, National Security relation. In spite of the complicated international Advisor, and regional situation, our bilateral relations Distinguished Guests, maintained a sound and steady growth with Ladies and Gentlemen, cooperation and interactions unfolding in an all- Good evening. At the outset, I’d like to extend round manner. We have also successfully warm welcome and belated New Year’s greeting concluded the Year of China-India Exchange to all of you. It’s indeed a great privilege for me announced by two sides during the Chinese together with National Security Advisor Mr. Premier Wen Jiabao’s visit to India in December, Menon to share our views with you on how to 2010. To take stock of the year, we have seen a advance China-India relation which undoubtedly cluster of positive developments in our bilateral is one of the most important and multifaceted relations. relations in the world today. First, active high level interactions have visibly To begin with, I would like to have a glimpse enhanced our mutual understanding and trust. of the past year first. Last year, Chinese President Hu Jintao and Premier 2011 is no ordinary year for China–India Wen Jiabao had fruitful meetings with Indian NEWS FROM CHINA /JANUARY 2012 9
Prime Minister Manmohan Singh respectively September last year. China-India CEO Forum is during BRICS Summit in China and the East Asia also in the making. At the same time, the existing Leaders Meetings in Indonesia. Two sides had in- mechanisms such as the fifth China-India Financial depth discussions on issues of mutual interest and Dialogue, the fourth China-India Defense and reaffirmed commitments to deepening the strategic Security Talks and consultation on counter and cooperative partnership. terrorism were successfully held in Delhi and Second, provincial and state level exchanges Beijing last year. These new and old mechanisms have become new highlights of bilateral relation. have helped to enhance mutual trust and deepen Successful visits by Governors of Sichuan, economic cooperation between two countries. Guangdong and Gansu provinces and Chairman of Xinjiang Autonomous Region of China to India and Chief Ministers of Bihar and Gujarat of India to China produced positive results in economic and cultural cooperation, bringing the local governmental cooperation into the overall picture. Third, economic and trade cooperation maintained a robust growth and becomes a salient feature of our bilateral ties. China-India two-way trade in 2011 has touched new height. According to the estimation, during the 11 months of this year the trade volume reaches 67 billion USD, up 21.8 per cent year on year and is expected to exceed 70 billion Fifth, cooperation on international and regional USD for the whole year. The first branch office of issues has acquired new momentum. Two Industrial and Commercial Bank of China opened countries maintained close consultation and in Mumbai last year, marking a new milestone in worked vigorously within the framework of UN, financial cooperation. To settle the trade account WTO, G20 and BRICS on issues such as climate in RMB and Rupee is another important move by change, reform of international financial two countries to facilitate bilateral economic institutions, Doha Round Trade Talks as well as cooperation. Mutual investments are also gaining issues related to the situation in West Asia and new momentum. One recent example is TBEA North Africa. Two countries have played Corporation, the largest special transformer constructive role in the proper settlement of producer of China, has signed a 400-million USD relevant issues and defending the interests of agreement with an Indian company to invest in developing countries. Gujarat to put up a factory for manufacturing Sixth, people-to-people exchange has added transformers for power projects in India. new vitality to our relation. The 500-member Fourth, new headway has been made in Indian Youth delegation visited China last institutionalization of bilateral cooperation. The September and were warmly received by Premier newly established China-India Strategic Economic Wen Jiabao in the Great Hall of People. The Year Dialogue held its first round meeting in Beijing of Exchange was successful and colorful. Events 10 NEWS FROM CHINA /JANUARY 2012
like “Treasures of Ancient China” exhibition, tangible benefits to our people. On issues directly Sichuan Week, Yunan Acrobatics Troup affecting our interests as well as global situation, performance and cultural activities like “A Grand such as climate change and issues related to the Stage for China-India Youth Traditional Culture West Asia and North Africa, two countries worked Exchange” were organized in India and China constructively and effectively to defend the interests respectively, creating cross-culture dialogues and rights of our two countries as well as that of between two ancient civilizations. China has also all developing countries. provided financial support to the reconstruction Third, China-India relation holds great of Nalando University. potential. As two fast growing economies, China and India provide opportunities to each other. In Ladies and Gentlemen, spite of the financial and debt crisis in US and The performance of our relationship in the year Europe, China and India enjoy stability 2011 is impressive and fruitful. More importantly, domestically and boast a relatively rapid economic it has demonstrated the following salient features. growth. With 2.5 billion populations, huge First, China-India relation is anchored on a markets and rich human resources, China and more solid political base than before. It is India are regarded by the international community encouraging to see that the leaders of two countries as powerhouse for world economy and are have viewed our relations from a long-term and expected to play a bigger role in the reform of strategic perspective. They have given increasing international economic and financial governance importance and attention to our relationship as well as in the global economic recovery. Facing which provides strong political foundation for the with similar challenges and historical tasks, China development of our bilateral relations. and India are complimentary to each other and Furthermore, I have sensed a growing consensus enjoy certain degree of synergy. Two countries are view in favor of developing a sound and mutually partners of cooperation, and partners for growth beneficial relation with China among all political and prosperity. China’s development provides parties and general public in India. From the opportunity to India, so does India’s development Chinese side, to build a stable and mutually to China. beneficial relationship with India is the set policy Fourth, China-India relation has grown of Chinese government. President Hu Jintao stated matured. We are fully aware of the fact that there on many occasions that India is an important are differences and challenges left over by the neighbor of China. China is ready to work with history in our relation. But we know much better India to maintain the sound momentum for further how to manage them. We are keenly aware that advancement of the China-India Strategic and cooperation between the two countries benefits Cooperative Partnership and for the common both and confrontation only hurts each other. As interests of two countries. two Asian neighbors and fast growing economies, Second, China-India relation has become more China and India share more common interests than substantive. Both countries pursue an independent difference. Both have adopted a “looking forward” foreign policy and share growing common approach and are trying their best not to let the interests. Today, China-India relation is developing historical burdens to stand in the way of our in a comprehensive manner and has acquired cooperation. When we are facing problems, we are strategic significance. Both countries not only enjoy now more than willing to engage each other in growing cooperation in economic field, but also dialogue and consultation to diffuse the risk. As to work closely in political and security fields, brining the perceived competition between the two NEWS FROM CHINA /JANUARY 2012 11
countries, so long as it is a fair and friendly one, with India to ensure its success. we also look at it in a positive way. As Indian Second, more work should be done to upgrade Prime Minister Mamnohan Singh and Chinese our economic cooperation. The global economy will Premier Wen Jabao pointed out that the world is remain uncertain at least for some time. China and large enough for both China and India to develop India should optimize our own potentials and and prosper. And there is enough room for two ensure healthy development of our respective countries to cooperate. economy. We should strive to meet the trade target Here I must point out that not every country of 100 billion USD by 2015 set by our leaders. The in the world is happy to see China and India going Chinese side is fully aware of the necessity to closer and prospering together. Some even try to narrow the trade gap between the two sides in drive wedge between us. I must point out again, order to ensure the sustainability of bilateral trade China and India’s rising together is an irreversible cooperation. China will take measures to increase historical trend that no force in the world can stop the import of Indian products which have market it. In spite of all kinds of prophecies with ill- demand in China. But our cooperation should not intention, China-India relation takes its own be limited in trade only. To deepen our economic course and moves ahead, because two countries cooperation, there is much room for us to explore. know where their national interests lie and how Here I just provide some food for thought. to handle their relations. Our cooperative relation 1. China and India should diversify trade poses no threat to others and is not developed at structure, expand the scope and items, and the expense of other countries’ interests. increase the technical content and added value to the products. At the same time, cooperation should Ladies and Gentlemen, be expanded into financial, service and investment 2012 has just arrived and the traditional sectors. Chinese New Year, the year of dragon will come 2. China and India should initiate policy soon. In Chinese culture, it is the most auspicious dialogue and coordinate our economic time to make planning. As Chinese saying goes, a development strategy in order to ensure steady good beginning is crucial to a successful year. In growth of respective economy. China started its order to push the bilateral relations forward, we 12th Five Year plan last year. This year India will should join hands and work in the following areas. launch its 12th Five Year plan. We should exchange First, efforts should be made to further increase our experience and methods in changing the mold political trust and enhance strategic cooperation. of development, readjusting the economic Political trust is the very foundation of any bilateral structure and building an environmentally friendly relation. To achieve this, two sides should maintain and inclusive economy, with a view to achieving the sound momentum of high-level exchanges and the best results in our economic development. interaction. Fully utilizing all existing mechanisms 3. mutual investments should be encouraged. to enhance the confidence and minimize the China welcome Indian companies to invest in suspicion and distrust. This year India will play China and is willing to encourage more Chinese the host of the BRICS’ Summit. We should do our companies, especially private companies to come utmost to make the best preparation to ensure a and invest in India. We hope the Indian side will successful and fruitful summit, thus giving positive make additional efforts to create more conducive impetus to the cooperation of five countries as well environment for foreign investors, especially the as to China and India relation. I can assure you visa service. Two countries also can explore the that China will closely coordinate and cooperate possibility of jointly investing in third countries. 12 NEWS FROM CHINA /JANUARY 2012
4. free trade agreement or regional trade fair and equitable manner. China and India also arrangement should be actively considered. FTA should promote the rights and increase the say of and RTA are useful instruments to facilitate and developing countries in the global decision-making boost the bilateral trade in a bigger way. As first process. step, two countries can work on a regional trade Fifth, properly manage the sensitive issues and arrangement and at the same time prepare the difference. Mutual understanding and mutual ground for a full-fledged FTA. accommodation are crucial in dealing with 5. efforts should be made to increase the differences and disagreements in our relations. We tourism cooperation. With large population and should handle them from a long-term and strategic rich tourist resources, two countries possess great perspective. So long as we follow the spirit of potential to become major tourist destination to equality and mutual respect, we will be able to each other. Regrettably, last year altogether only ensure a stable and healthy bilateral relation. It is 600 thousand tourists traveled between two China’s policy to maintain good neighborly countries. Compared with 16.5 million between relations with all its neighbors, including India. We China, Japan and Korea, the figure between China welcome India to play a more active role in and India is too small. I am of the view that more international and regional affairs. We are happy Chinese tourists to India can also help narrow the to see the recent improvement of relations between trade gap of our two countries. India and its neighbors. A stable South Asia is not Third, emphasis should be placed on only a blessing to China and India, but also a great expanding people and culture exchanges. People- contribution to the region and the world at large. to-people exchange serves as a cornerstone of state- With the joint efforts of two countries, the situation to-state relations and can play crucial role in along the China and India border area is on the minimizing the so-called “trust deficit”. The whole peaceful. Efforts shall be made to do a good Chinese side will work with Indian side to preparation for the 15th Special Representatives continue the annual youth exchange program and Meeting on China-India boundary issue. In order expand the exchanges of journalists, media and to maintain the peace and tranquility of the border think-tanks. Cross-cultural exchanges can enrich area before the final settlement of the issues is the knowledge of each other and foster closer ties found, it is necessary for two sides to work out a among peoples. We are ready to provide assistance new mechanism to serve that purpose. We are in Chinese language teaching in Indian secondary willing to work with Indian side to achieve that in school. And Indian students are most welcomed the near future. to study in China. We will continue to lend our Ladies and Gentlemen, support to the revival of Nalanda University. Fourth, efforts should be made to enhance our China has declared to the rest of the world on regional and international cooperation to promote many occasions that it takes a path of peaceful common interests. We should step up our development and is committed to upholding world coordination and cooperation on regional and peace and promoting common development and international issues and work together to address prosperity for all countries. To this end, China has the challenges of global implications such as sticked to an independent foreign policy of peace. climate change, food security, energy security, As President Hu Jintao reaffirmed in his New Year reform of global financial system, counter terrorism Address few days ago, that China will continue to etc. to ensure those issues will be handled in line advance our opening-up drive for win-win results, with the interests of developing countries and in a and will unswervingly stick to the path of peaceful NEWS FROM CHINA /JANUARY 2012 13
development and the independent foreign policy new international order and that the Asian age of peace. We will develop our friendly relations will arrive only when both China and India and mutually beneficial cooperation with various developed. Today the evolution of the world countries in the world following the Five Principle situation has proved their far-sightedness and of Peaceful Coexistence. An open and harmonious outstanding vision. China and India are on their China of prosperity and stability will make even way to translating their vision into reality. What more contribution to the whole world. shall we do now? The answer is clear and simple. That is to cooperate. With the joint efforts of China Ladies and Gentlemen, and India, we will not only create a brighter future Mr. Deng Xiaoping and Prime Minister Rajiv for our two countries and two peoples, but also Gandhi, two great visionary leaders of China and make fresh contribution to the world peace and India, shared a consensus view during their prosperity. historical meeting in 1988 that China and India Thank you. together can give the world new perspectives on a
Developments in India-China Relations By Shivshankar Menon, National Security Advisor of India (New Delhi, January 9, 2012)
Your Excellency, Ambassador Zhang Yan, nations on earth, are the two largest developing Ladies and Gentlemen. countries, and are among the societies and economies in the world that are transforming Thank you for inviting me to view the exhibition themselves most rapidly. They are the largest and on the India-China Year of Exchanges in 2011, and the third biggest economies in Asia. China has the to share thoughts on developments in India-China distinction of being the second largest economy in relations. the world. The two countries are building a strong Today India-China relations attract attention domestic economic base and rapidly training beyond our two countries. International scientific and technical manpower. When much developments and achievements in domestic of the world is reeling under recession or grappling construction by our peoples in the last few decades with political turmoil, our two countries have have given our relationship wider significance. managed to register reasonably healthy rates of Relations between India and China and their new growth and maintain stability. We share a common equilibrium hold an important key to the emerging geopolitical space and similar socio-economic economic and strategic landscape of Asia and, to aspirations for ourselves. a certain extent, the world. The future is less certain or evident. Uncertainty Let us look briefly at the context within which in the international system is at unprecedented we conduct our relations and then look at the levels. The economic and security situation facing content of our relations today. both India and China has become far more The basic facts are evident and well known. complicated in the last few years. On the positive India and China are the two most populous side, thanks to sustained growth rates, high 14 NEWS FROM CHINA /JANUARY 2012
savings rates and a prudent financial approach, What does this context imply for India-China Asia and the developing world have witnessed a relations? greater accretion of relative economic power Both India and China currently give the highest following the financial crisis of 2008. In Asia, larger priority to their domestic transformation, which economies like China, Japan, India, South Korea will take time. A peaceful periphery, a stable and and Indonesia, all members of the G-20, have benign world environment and continued increased their ability to influence economic prosperity among our economic partners are of outcomes. The BRICS process has also gained utmost importance to both of us. This will remain ground. These are welcome developments. so for quite some time. It is in our mutual interest At the same time, risks remain for economies to work together, bilaterally and with other which are still developing. An early return to robust partners, to reduce uncertainty and create an growth and spending in the developed world are international environment that is supportive to our necessary for world economic recovery. The US, domestic transformation efforts. Economics and Europe and Japan still account for approximately development are not zero-sum games. $20 trillion of consumption expenditure as against It is for this reason that we believe that there is about $2.5 trillion by China and India together. A enough space for both India and China to realise re-balancing of economic structures in our their development aspirations. countries in the face of such differences could be Economically, we are already integrated with difficult. More generally speaking, the relatively each other to an unprecedented extent. Our benign external environment in the last two bilateral trade reached over US$67 billion in the decades is changing negatively and is threatened first 11 months of last year, and China has by protectionism in the developed world. consistently remained our largest trading partner World politics also faces new challenges. The in goods for several years. However, investment balance of power is in flux in Asia and the world. flows between us have not kept pace with trade. As uncertainty rises, powers follow hedging Indian investment in China worth a total of US$ strategies. The mechanisms of strategic 433 million is spread over 676 projects, while communication and consultation and a common Chinese investment in India is worth nearly US$ security outlook are evolving slower than the 300 million. There are several opportunities for changes in objective reality. cooperation in developing infrastructure. India is Besides, both India and China are increasingly already one of China’s most important markets for linked to the rest of the world, through trade, project exports, with a cumulative value of investment and their Diasporas. The impact of contracted projects at US$ 53.5 billion and changes in West Asia on our energy security, for turnover realized at US$ 24.6 billion. instance, is an example of how developments What is less noticed is the range of contact further away from our shores also affect India and between our two societies. For instance, over 7,000 China more and more profoundly. It is therefore Indian students are studying in China today. This natural for us to take ever greater interest on global scale of interaction never occurred before in history. issues.. Naturally, the corollaries of such an Equally, global issues like climate change, intensification of economic and social engagement nuclear proliferation and cyber and space security are issues of trade imbalance, diversifying the trade matter more to both India and China in this basket and commercial disputes. The two globalised world as they influence our governments have taken several initiatives to make development, peace and prosperity. our trade more balanced and harmonious, and to NEWS FROM CHINA /JANUARY 2012 15
facilitate and streamline our business engagement. However, a number of mechanisms have been put More remains to be done and we will learn by in place to ensure that the border stays peaceful doing. For instance in September last year we held while we seek a settlement of the boundary the first Strategic Economic Dialogue between question. On the settlement itself, we are in the India and China which identified several areas of second stage of the three stage process of agreeing promise for the future. Equally the business principles, a framework and finally a boundary communities and their Chambers need to take line. advantage of growing opportunities while Similarly, on other bilateral issues of potential sharpening competitive edge. I am convinced that difference there exist mechanisms of dialogue and our business and economic engagement with each communication to address them. We appreciate other and with other countries will intensify as we China’s assistance to us in tackling floods and seek to overcome the prospect of sluggish recovery natural disasters in the downstream areas of our in the traditional engines of growth in the world shared rivers. There is a need to widen the scope economy. and deepen the level of our communication in some Our Governments have common or similar areas. These include new challenges and new positions on the global development agenda, in issues in the changing context of our relations. I WTO and on climate change, which has made it am confident that we will do so. possible for us to work together internationally. Indeed, some security challenges, especially of A few vocal experts in our two countries and the non-traditional variety, are common to India elsewhere argue that notwithstanding the and China, and offer an opportunity to work numerous cooperative elements in our economic together. Both India and China face the challenge relations and approach to international issues, of terrorism in our shared neighbourhood. It India and China are bound to be strategic requires common effort by all members of the adversaries. I find such determinism misplaced. It international community to tackle terrorism. ignores the successful experience and Energy is the key to domestic transformation demonstrated expertise of both governments in in both India and China, which is why both of us managing differences and building on have a common stake in energy security, and in commonalities for over three decades and the freedom and security of transportation on the particularly since the Rajiv Gandhi visit to China global commons. We both have an interest in global in 1988. It also ignores the wisdom of the leaders public goods like a peaceful order, freedom of the of the two countries, who have consistently worked seas and open sea lanes. We similarly need to to ensure that problems are managed in a mature address issues of piracy with common resolve. As manner. The issue is whether we can continue to important maritime nations, we can contribute to manage the elements of competition within an each other’s maritime security by coordinating agreed strategic framework which permits both approaches. of us to pursue our core interests. I see no reason Asia’s security is interlinked across this great why that should not be so. Indeed I would go continent. India has therefore argued for an open, further and say that the rapid changes in the inclusive Asian security architecture. India and international situation today also create an China will have key roles to play in forging a new opportunity for India and China to work with compact for common and collective security for others to shape benign international outcomes. Asia. We should also contribute within our The boundary question remains unresolved, capacity to the global public goods that are and there is no denying that it is a difficult issue. increasingly important to our well being. 16 NEWS FROM CHINA /JANUARY 2012
The robustness of our bilateral relation will need to learn new ways of dealing with the depend on dialogue and communication so that relationship. the potential for misunderstanding and To conclude, India and China have miscalculation is limited. This dialogue process demonstrated an ability to deal with difficult issues must not be limited to the two Governments. and to build a cooperative partnership based on Today, there are multiple stakeholders in our common interests. Its regional and global impact, relations as also multiple determinants of these and its long term significance to our own relations. Each of them, be it businessmen, media development, is what makes the India-China or scholars of the two countries, has a responsibility relationship strategic in the true sense of the term. to take our relations to the desired level of I do hope that I have been successful in giving you equilibrium. It is therefore absolutely essential that some idea of why I am confident that by working they acquire an informed understanding of their together India and China will be able to neighbours. Today, as both India and China successfully face the challenges that the new change fast, our understanding of each other needs geopolitics are throwing up, and would best serve to keep pace. Both the quality and the scale of our their own national interests by further deepening interactions have also grown so rapidly that we their strategic cooperative relationship.
III. DOMESTIC AFFAIRS
Chinese President Delivers New Year Address, Stresses World Peace, Development
Beijing, Dec. 31 country’s economic (Xinhua) — In a New development pattern and Year’s address broadcast structural adjustments on Saturday, Chinese while making more President Hu Jintao vowed efforts in ensuring that China will continue to people’s livelihood. develop friendly exchanges The country will with other countries and continue to balance positively participate in maintaining steady and international cooperation relatively fast economic on global issues. growth with adjusting its While addressing economic structures and domestic and overseas managing inflation audiences via state TV and expectations, he said in radio broadcasters, Hu the speech titled “Jointly urged the acceleration of Improve World Peace and the transformation of the Development,” which NEWS FROM CHINA /JANUARY 2012 17
was broadcast by China Radio International, it was involved in resolving international and China National Radio and China Central regional issues, he said. Television. The world is currently witnessing China will stick to the guidelines of “one multipolarization and globalization, and various country, two systems,” “Hong Kong people countries are increasingly interdependent, Hu governing Hong Kong,” “Macao people said. governing Macao,” and a high degree of “However, the instability and uncertainty of autonomy in maintaining the long-term the world economic recovery is on the rise, prosperity and stability of Hong Kong and international and regional hot-topic issues have Macao, Hu said. cropped up one after another, and the peace and “We will adhere to the principles of ‘peaceful development of the world faces unprecedented reunification’ and ‘one country, two systems,’ opportunities and challenges,” Hu said. continue to push forward the peaceful China will stick to peace, development and development of cross-Strait relations, ensure the cooperation, adhere to independent foreign basic benefits for those of the Chinese nationality, policy, maintain world peace and promote and endlessly work for the common benefit of common development, Hu said. the compatriots on both sides of the Taiwan The country will stick to the principle of Strait,” he said. mutual benefit when opening itself up, he said. 2011 was the first year of the country’s 12th “We will develop friendly cooperations with Five-Year Plan period (2011-2015). In the face all countries on the basis of the five principles of of complicated international situations and peaceful co-existence, and we will continue to arduous tasks in maintaining domestic reform, actively participate in international cooperation development and stability, Chinese people united on global issues,” Hu said. and continued to push forward the opening up “I believe that as long as people from all and reform drive and the socialist modernization countries make efforts hand-in-hand, the world construction, while maintaining steady and will have a better future and the welfare of the relatively fast economic growth and making people of all countries will improve,” Hu said. progress in building a well-off society in an all- An article by Hu on boosting the country’s around way, he said. cultural development will be published in Qiu China was also actively engaged in Shi (Seeking Truth), an official magazine of the international cooperation to boost the growth of Communist Party of China Central Committee, the global economy and financial stability, and on Jan. 1.
Chinese Leaders Watch Peking Opera for New Year
Beijing, Dec. 29 (Xinhua) — President Hu Jintao Top legislator Wu Bangguo, Premier Wen and other Chinese leaders watched Thursday Jiabao, top political advisor Jia Qinglin, and other Peking Opera at the National Center for the leaders including Li Changchun, Xi Jinping, Li Performing Arts in a gala to celebrate the New Year. Keqiang, He Guoqiang and Zhou Yongkang also 18 NEWS FROM CHINA /JANUARY 2012 watched the performance, together with nearly combines instrumental music, vocal performances, 1,000 audience. mime, dance and acrobatics, was regarded as a The programs include excerpts from classical cultural treasure of China. Peking Opera “The Fourth Son Visits His Mother” The United Nations Educational, Scientific and and a series of other traditional works. Cultural Organization (UNESCO) has listed Peking The 200-year-old Peking Opera, which Opera as an intangible cultural heritage.
Chinese top leaders Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Chinese top leaders Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang and Zhou Yongkang shake hands with artists as they enter and Zhou Yongkang pose for group photo with performers the venue of a Peking Opera show to celebrate the New Year after they watch a Peking Opera show to celebrate the New at the National Center for the Performing Arts in Beijing, Year at the National Center for the Performing Arts in Beijing, capital of China, Dec. 29, 2011. (Xinhua/Huang Jingwen) capital of China, Dec. 29, 2011. (Xinhua/Ju Peng)
Legislature Reviews Government Reports
Beijing, Dec. 28 (Xinhua) — The National Chairman Wu Bangguo. People’s Congress (NPC) Standing Committee, Contributions of domestic consumption to China’s top legislature, heard Wednesday economic growth remained limited. Although government reports on education reform, retail sales jumped by 15.5 percent and 18.3 tourism industry and rural land contracts. percent in 2009 and 2010 respectively, compared Zhang Ping, head of the National to the previous years, the final consumption Development and Reform Commission (NDRC), expenditure as a percentage of gross domestic said the government will focus on raising product was in decline, Zhang said. people’s incomes and improving their economic He called for enhanced environmental expectations in a bid to expand domestic protection and further energy saving and demand, especially household consumption. emissions cuts, saying that the eco-system Zhang reported the progress of accelerating remains fragile and energy consumption high the shift of the economic growth mode to the despite the positive achievements were made in legislative session attended by 144 members of the 11th Five-Year Plan period from 2006 to 2010. the NPC Standing Committee, including While commenting on tourism industry, NEWS FROM CHINA /JANUARY 2012 19
Shao Qiwei, head of the National Tourism Administration, said that China has 23,315 travel agencies, among which 1,387 are able to operate outbound tours to overseas. The number of star-rated hotels has reached 13,908, including 607 five-star hotels, bolstering the tourism infrastructure, according to the report. Shao said that the country will focus on maintaining market order, promoting service quality and developing tourism resources in the future. Wu Bangguo (2nd L), chairman of the Standing Committee of China’s National People’s Congress (NPC), attends the third plenary meeting In a report on the implementation of of the 24th session of the 11th NPC Standing Committee in Beijing, the law on rural land contracts, capital of China, Dec. 28, 2011. Lu Yongxiang, vice-chairman of the NPC Standing Committee, presided over the meeting. (Xinhua/Fan Uyunqimg, vice chairperson of the NPC Rujun) Standing Committee, said that the occupation of farmland in road and railway country is facing a stern challenge of farmland construction, Uyunqimg said. protection, as many construction projects are Among some local governments, illegal land- encroaching on arable land and exceeding the grab conduct, such as exploration against scale envisaged in the country’s land-exploration relevant regulations and non-transparent plan. distribution of compensation, has violated the The most outstanding problem is the illegal rights of farmers, she said, urging greater transparency and supervision in this area. A report submitted by the Ministry of Education stated it would continue working with the General Administration of Press and Publication to strengthen regulations on editing, printing and distributing reference books for students. Education Minister Yuan Guiren asked education departments at all levels not to force students or schools to purchase reference books, and The third plenary meeting of the 24th session of the 11th National People’s schools not to force students to buy Congress (NPC) Standing Committee is held in Beijing, capital of China, Dec. 28, 2011. Wu Bangguo, chairman of the Standing Committee of the those books. NPC, attended the meeting on Wednesday, which was presided over by It is common for Chinese students Lu Yongxiang, vice-chairman of the Standing Committee of the NPC. (Xinhua/Fan Rujun) in primary and middle schools to do a 20 NEWS FROM CHINA /JANUARY 2012 large amount of after-class study and tests to get booming market for reference books and test better exam scores, which has resulted in a books.
All 8,043 Suggestions Made at China’s Top Legislature Receive Feedback
Beijing, Dec. 28 (Xinhua) — The 8,043 motions raised by legislators at the annual session suggestions Chinese legislators made at the annual in March. session of the nation’s top legislature in March have According to the Chinese Constitution, NPC received feedback, a report said Wednesday. deputies and members of the NPC Standing These suggestions have been given to 177 Committee can submit motions and proposals that government departments and public institutions, are within the respective functions and powers of said He Yehui, vice secretary general of the the NPC and its Standing Committee. Standing Committee of the National People’s A motion will be legally binding when it is Congress (NPC), whose bimonthly session is adopted while a proposal is not. running from Dec. 26 to 31. According to the Organic Law of the NPC and These departments and institutions have solved the NPC’s rules for the discharge of its duties, a or are planning to deal with 77.2 percent of all motion can be raised by the presidium of the NPC, these suggestions, and have achieved positive the NPC Standing Committee, special committees effects in boosting development and improving of the NPC, the State Council, the Supreme people’s livelihoods, He said in a report to the People’s Court, the Supreme People’s session attended by 134 NPC Standing Committee Procuratorate, a provincial-level delegation (of members, which included Chairman Wu Bangguo. deputies) to the NPC, or a group of at least 30 NPC In addition, the NPC committees discussed 566 deputies.
Agriculture Still Vital to China
Beijing, Dec. 28 (Xinhua) — Chinese Vice stability. Premier Hui Liangyu said Wednesday China must “We will promote agricultural modernization avoid mishaps in supply of major farm produce as we push forward industrialization and because agriculture is vital to ensure stable price urbanization,” Hui said at the annual central levels, fast economic growth and social stability. conference on rural work that concluded Hui said the agricultural sector has witnessed Wednesday in Beijing. continuous, comprehensive and faster Scientific and technological advancement and development this year, which has played a key role transformation of the agriculture growth pattern in curbing inflation and maintaining social will be the key and fundamental solutions to NEWS FROM CHINA /JANUARY 2012 21
developing a modern agriculture, as environment particular significance next year, faced with the and resources impose greater constraints, Minister complicated macroeconomic condition and the of Agriculture Han Changfu said. dual pressures of an economic slowdown and a The vice premier also highlighted the effective rising inflation. Meanwhile, he urged more efforts supply of farm produce, fiscal spending on to be taken to protect farmers’ rights in land infrastructure building, and farmers’ livelihoods properties. as the major fields on which the country will work Gan Zangchun, a state-land supervisor with next year. the Ministry of Land and Resources, said land Government data showed grain output rose to requisition must be reformed to ensure farmers’ record high 571.21 million tonnes this year. The rights as rapid urbanization has given rise to figure represented a year-on-year increase of 4.5 frequent land disputes in recent years. percent and marked the eighth consecutive year To guarantee agricultural production, the of growth for the country’s grain output. country’s fiscal spending on water-related It also marked the fifth straight year that infrastructure surged 43.8 percent year-on-year to China’s total grain output exceeded 500 million 216.3 billion yuan (34 billion U.S. dollars) during tonnes, which indicated a more consolidated winter 2010 and spring 2011, an official with the foundation for food security in the world’s most Ministry of Water Resources said. populous nation. The spending will further rise 10 percent to Han, however, warned that rising labor costs, 258.4 billion yuan during this winter and spring more expensive production materials such as diesel, next year. and limited space to expand crop acreage all A finance official said earlier that fiscal impose tough challenges. spending of the central government on agriculture- Han said the country sought to maintain its related projects and farmers is likely to top 1.04 grain output at a level above 525 million tonnes trillion yuan this year, which represents a 21.3- next year by stabilizing the total acreage for growth percent surge compared to that last year. of grain crops and enhancing yield rate. Apart from expenditures on construction of “Any slight failure in agriculture will hamper agricultural infrastructure, more subsidies will be the country’s economic development and social given to help impoverished farmers. This year, stability,” Premier Wen Jiabao said Tuesday at the around 141 billion yuan of funds were deployed conference. to subsidize farmers to purchase materials such as Wen also said that agricultural work is of machinery and improve crop varieties.
More Chinese Farmers Benefit from Transfer of Land-use Rights
Beijing, Dec.28 (Xinhua) — Perhaps the days desolate to find jobs in the city are gone. when hundreds of millions of Chinese migrant In 2011, more and more have benefited from workers had no choice but render their land transferring, leasing, or mortgaging land-use rights, 22 NEWS FROM CHINA /JANUARY 2012
said Uyunqimg, vice chairperson of the Standing According to Uyunqimg, 229 million Committee of the National People’ s Congress households joined the “household management” (NPC), China’s top legislature, in her report contract by the end of 2011. Wednesday on the implementation of the law on The top legislature sent a team to ascertain how rural land contracts. a law on rural-land contracts has been A total of 207 million mu (13.8 million hectares) implemented in order to prevent farmers’ land has been involved in land-use transfers in 2011, rights from being infringed. accounting for 16.2 percent of the total area of Wu Bangguo, chairman of the NPC Standing contracted arable land, according to the report. Committee, said in a written comment that the Under China’s existing land ownership inspections are aimed at helping protect farmers’ structure, rural collectives own the land. The rights in the land-contract system, maintain the collective, often a village committee, distributes system’s stability, and strengthen the management land-use rights to households on 30-year and services regarding the transfer of farmers’ land “household management” contracts. contract management rights. In October 2008, the central government issued The team went in six separate groups to the a landmark land policy that allowed farmers to lease provinces of Hebei, Jilin, Anhui, Shandong, Hunan contracted farmland or transfer land-use rights. and Gansu from August to October.
Chinese Defense Department, Army Continue to Conduct Foreign Exchanges in 2012
Beijing, Dec. 28 (Xinhua) — The Chinese security talks with eleven countries this year, defense department and army will actively carry including Russia, Pakistan, Turkey, Germany, the out exchanges and communication with foreign United States and India. countries next year, Defense Ministry spokesman In 2011, China’s armed forces conducted eight Yang Yujun said here Wednesday. joint drills or training with the army from countries This year’s military exchanges and cooperation such as Indonesia, Belarus and Venezuela, and with foreign countries were conducted in a carried out emergency rescue and relief work in comprehensive, multi-faceted and multi-level way, seven countries, including Japan, Afghanistan, and positively contributed to China’s diplomacy Kazakhstan and Thailand, he said. and the modernization of its armed forces, Yang Yang said this year the Chinese army actively said at a press conference. took part in dialogue within multi-lateral He said China’s military diplomacy enjoys an frameworks, including the Shanghai Cooperation active, pragmatic and efficient momentum and Organization sees frequent high-level contacts with foreign The Chinese army also participated in a UN countries. peacekeeping operation, escort mission in the According to Yang, China in 2011 received Gulf of Aden, and sent a naval hospital ship for more than 50 major foreign military delegations. a four-country Latin American visit, he added. China also held defense consultations and NEWS FROM CHINA /JANUARY 2012 23
Revenues of China’s Customs Duties Top 1.6 Trl Yuan
Beijing, Jan. 12 (Xinhua) — Revenues from polluting enterprises. Income from tax collections customs duties in China jumped 29 percent year- upon such export products rose 45.7 percent to on-year to more than 1.61 trillion yuan (around 19.08 billion yuan. 256 billion U.S. dollars) last year, Yu Guangzhou, A government white paper released in chief of the General Administration of Customs December said that by July 2010 China had granted said Thursday. zero-tariff treatment on over 4,700 commodities Yu ascribed the revenue surge to the higher from 36 least developed countries that have prices of imported commodities, which rose 13.8 diplomatic ties with China. The country’s average percent, Yu said. tariff level has also been lowered from over 15 Prices of imported crude oil, iron ore, and percent to less than 10 percent since its entry to soybean, for example, were up 36.7 percent, 29.3 the WTO. percent, and 26.4 percent, respectively. The price In efforts to promote balanced trade by boosting gains of imported commodities directly resulted in imports, China will keep import tariffs at a low an increase of 210 billion yuan to the revenues, level this year, with average tariffs on more than according to the customs authority. 730 categories of imported goods at 4.4 percent in Meanwhile, the nation’s customs upped the tax 2012. on products made by energy-intensive and
China’s Reading List Reveals a Few Surprises
China Daily
Beijing, Dec. 30 — 2011 witnessed dramatic more Chinese are habitual readers, thanks to the changes in the country’s publishing and reading adoption of e-reading devices. scene. With the rise of e-publishing, traditional As for the literature itself, Chen Fumin, with publishers faced the real danger of losing out in a the Chinese Academy of Social Sciences, says new era, as highlighted by the theme of two key established writers are more concerned with down publishers’ gatherings. to earth topics relevant to society. The Beijing International Publishing Forum and “Some of them are really as good as the older China Book International’s Foreign Experts generation,” Chen says, of younger writers. “They Seminar - both staged in August - focused on e- just need time to be better known.” publishing. At the same time, traditional bookstores are Top 10 Books (in alphabetical order) closing down, while others struggle to survive. The good news is that the number of readers is China in Revolution: The Road to 1911 By Liu Heung Shing on the rise. (World Publishing Corporation) Writers’ Rich List producer Wu Huaiyao says that’s judging from his fieldwork in publishing, Pulitzer-winning photographer Liu Heung 24 NEWS FROM CHINA /JANUARY 2012
Shing pays tribute to the 1911 The latest novel by the Revolution to celebrate its 100th Chinese-American writer is based anniversary this year. on her grandfather and was a work of self-discovery. China Shock By Zhang Weiwei My Village, My Country (Shanghai People’s Publishing By Xiong Peiyun (New Star House) Press) The author, a Geneva-based Taking his hometown, researcher of international Xiaobao village in Jiangxi relations, was formerly China’s province, as a sample, top leaders’ translator/ columnist Xiong Peiyun interpreter. Zhang expands the explores China’s rural villages ideas of the “China Model” and and where the country is concludes “no other countries heading in this essay collection. have made the people better off Old Kiln quicker than China”. By Jia Pingwa (People’s Literature Publishing Dead End, third book of the House) Three Body Trilogy The author reveals in the By Liu Cixin (Chongqing novel the trajectory of the Publishing House) “cultural revolution” (1966-76) at Hailed as the first writer of a mostly grassroots level. It was Chinese science-fiction, Liu Cixin awarded “Best Novel of the ends the trilogy about a Chinese Year” by the prestigious Dangdai scientist saving the world from magazine. being flattened into two dimensions. Record of Zhu Rongji’s Speeches Divine Redolence By Zhu Rongji By Wang Anyi (People’s Publishing House) (People’s Literature Publishing The four-volume book is a House) collection of Zhu Rongji’s talks The novel reflects Chinese from 1991 to 2003, when he folk life in Shanghai through the served as the vice-premier and rise and fall of the Shen family premier of the country. Marked during the late Ming Dynasty by his signature bluntness, the (1368-1644). book reveals untold stories of China’s social, economic and Inmate Lu Yanshi political reforms that Zhu was By Yan Geling (Writers’ leading. Publishing House) NEWS FROM CHINA /JANUARY 2012 25
Southern Spring and Commerce Press) By Ge Fei The futurist and author of Megatrends (Shanghai Literature and Art Publishing House) examines the pioneering solutions of Chengdu in urban-rural integration. Southern Spring centers on the life of a middle- aged couple, poet Tan Duanwu and lawyer Pang 1Q84: Book 3 Jiayu. Their spiritual quest over the past two By Haruki Murakami decades reveals problems confronted by (Nanhai Publishing Ltd) individuals in an era of dramatic changes. Murakami is a widely loved Japanese writer in Tiny Times 3.0 China. His new series, with a sci-fi touch, is By Guo Jingming reviving interest among Chinese readers, following (Changjiang Literature and Arts Press) his immensely popular Norwegian Wood. Guo Jingming is one of the country’s most Steve Jobs: A Biography influential young writers. Tiny Times 3.0 centers By Walter Isaacson (Citic Press) on four young people’s entangled lives in Shanghai. The book is a timely publication after the legendary Apple founder Steve Jobs’ death in 2011’s Top Three Translated Books: October, and is the only authorized version of Jobs’ life. China in Innovation: The list is based on other newspapers’ book lists, The Chengdu Triangle and China Daily’s interviews with publishers and By John and Doris Naisbitt (Jilin Publishing House, critics. All-China Federation of Industry
Top 10 National Events in 2011
Beijing Review
Development Goals Defined percent of national GDP, expanding pension schemes to cover all rural residents and 357 million China’s 12th Five-Year Plan for National urban residents, building 36 million affordable Economic and Social Development (2011-15) was apartments for low-income families and approved by the National People’s Congress, the conducting comprehensive reforms in monopoly country’s top legislature, on March 14. industries which will allow for more competition. Focusing on building a green economy, China plans to cut energy consumption and carbon Party Anniversary Commemorated dioxide emissions per 10,000 yuan ($1,576) of the A grand gathering marking the 90th GDP by 16 percent and 17 percent, respectively. anniversary of the founding of the Communist Other key targets include maintaining a 7- Party of China (CPC) was held in Beijing on July percent annual GDP growth on average, realizing 1. Hu Jintao, General Secretary of the CPC Central an urbanization rate of 51.5 percent, increasing Committee, delivered a keynote speech. expenditure on research and development to 2.2 26 NEWS FROM CHINA /JANUARY 2012
Hu said that the CPC has accomplished three major feats since its formation: With reliance on the people, completing a new- democratic revolution to win national independence and liberation for the people; completing the socialist revolution and establishing the basic socialist system; carrying out a great new revolution of reform and opening up, and creating, upholding, and developing socialism with Chinese characteristics. Hu said that the CPC, now with Shanghai Yangshan Deep-water Port (CHEN FEI) a membership of more than 80 million, will “actively yet prudently” October 18, adopting a decision on deepening the carry out political structural reform in order to reform of China’s cultural system and promoting achieve the Party’s fundamental goal, a situation the development of the cultural industry. where the people are able to determine their own A statement issued by the session said that destiny, and where the CPC is able to fully tap the developing the cultural industry is a key priority initiative of the people. for the Chinese Government. According to the Boosting Cultural Industry statement, the country should not only provide its people with a comfortable material life, but also a The 17th Central Committee of the CPC healthy and rich cultural life. concluded its sixth plenary session in Beijing on More resources will be devoted to boosting public cultural services and speeding up the reform of the cultural industry, according to the statement. New Food Safety Regulation The Ministry of Health announced a ban on the production of two food additives commonly used to “bleach” flour on March 1. The two additives, benzoyl peroxide and calcium peroxide, were banned amid public concerns that China’s current food processing techniques cannot mix the additive evenly and excessive use of the additive might become “a hidden A gathering commemorating the 90th anniversary of the founding of the Communist Party of China is held in Beijing on July 1 (XINHUA) peril.” NEWS FROM CHINA /JANUARY 2012 27
The ban is part of China’s tightened efforts to improve food safety. National and local crackdowns on food safety-related crimes have been launched throughout the country. Between January and October, courts at various levels tried a total of 173 cases related to food safety and 255 people were sentenced to prison terms. In March, an investigation into the safety of pork was launched in Henan Province after several farms were found using clenbuterol, a banned Dancers rehearse at Yinchuan Arts Theater in Ningxia Hui Autonomous Region (WANG PENG) chemical that makes pork leaner but can be harmful to humans, in pig feed. Eventually a total of 113 people received sentences under fire after a credibility scandal erupted on for selling and using the chemical. the Internet on June 21. Netizens were infuriated In August, the police initiated a nationwide when, Guo Meimei, a 20-year-old micro-blogger food safety campaign to curb the illegal production claiming to be the general manager of Red Cross and sale of “gutter oil” or illegally recycled cooking Commerce, flaunted wealth by posting photos of oil. By the end of November, more than 700 her extravagant lifestyle. suspects had been detained during the Although both Guo and the RCSC later denied investigation of 128 cases. having any ties to one another, further leaks concerning poor accounting and waste at the Damaged Charity Credibility RCSC continued to flood the Internet. The Red Cross Society of China (RCSC) came Donations to charities in China have plunged as a result of the scandal. In response, the RCSC pledged to increase transparency and establish channels to allow better communication with the public. The State Council released a statement on October 19, saying that the country will establish a social credit system nationwide to create an honest and trustworthy society over the next five years. A Space Breakthrough China successfully concluded its first space rendezvous and docking A food safety regulator confiscates shoddy food products in a warehouse in Shanghai on April 12 (PEI XIN) mission, upon the safe return of the 28 NEWS FROM CHINA /JANUARY 2012
unmanned spacecraft, manned space station by Shenzhou 8, to the Earth on around 2020. November 17. China is the Poverty Alleviation third country to master space docking technology At a national poverty after the United States and alleviation meeting on Russia. November 29, the poverty Launched from the line in China’s rural areas Jiuquan Satellite Launch was raised to an annual Center on November 1, per-capita net income of Shenzhou 8 successfully 2,300 yuan ($359), up by rendezvoused and twice more than 80 percent from docked with the Tiangong-1 the 1,274 yuan ($199) space lab module on standard set in 2010. November 3 and 14. The sharp increase Launched on September 29, brings China’s poverty line Tiangong-1 will remain in closer to the international orbit to await future docking standard of $1.25 a day, attempts with Shenzhou 9 which was established by and Shenzhou 10 spacecraft the World Bank in 2008. It in 2012. At least one of these will make 128 million two missions will carry Guo Meimei (CFP) people eligible for astronauts. government anti-poverty The 49-day space-docking mission paves the subsidies. way for China’s establishment of a permanent The Chinese Government has set the goal to
The Shenzhou-8 spacecraft docks successfully with the Tiangong-1 space lab module on November 3 (WANG YONGZHUO) NEWS FROM CHINA /JANUARY 2012 29
adequately feed and cloth the country’s impoverished people by 2020. Their access to compulsory education, basic medical care and housing will also be ensured. The State Council Information Office released the Assessment Report on the National Human Rights Action Plan of China (2009- 10) on July 14. It says that all the measures stipulated in the action plan, the first of its kind in China that was published in April 2009, had been put into practice, and all the goals A leaking rig at the Penglai 19-3 Oilfield (LUO SHA) and tasks set out in the plan had been fulfilled by the end of 2010. “Over 50 percent of the targets concerning 19-3 Oilfield operated by ConocoPhillips China, a people’s livelihoods were met ahead of time,” says subsidiary company of U.S. oil giant the report. ConocoPhillips, polluted around 6,200 square km At present, the second National Human Rights of water in north China’s Bohai Sea, resulting in Action Plan of China, which is expected to guide the country’s worst offshore maritime pollution the country’s human rights work from 2012 to accident in history. 2015, is being formulated. The new plan will cover After an investigation into the cause of the economic, social and cultural rights as well as civil spills, the State Oceanic Administration said on and political rights. November 11 that the spills resulted from defects in ConocoPhillips China’s production and Worst Oil Spill management faults. The company was accused of Spills first reported on June 4 at the Penglai violating the original protocol of exploitation and failing to take necessary precautions when there was a high risk of a spill. In the wake of the spills, legal experts and environmentalists have called for an emergency response mechanism to tackle environmental accidents. On December 13, more than 100 Chinese fishermen filed a lawsuit seeking total compensation of 490 million yuan ($76.6 million) from ConocoPhillips China. They blamed the oil spills for damaging their sea The rebuilt Yingxiu Town in Wenchuan County, Sichuan Province scallop and sea cucumber catches. (LI QIAOQIAO) 30 NEWS FROM CHINA /JANUARY 2012
Successful Wenchuan Reconstruction The Chinese Government announced on May 10 that three years after a devastating earthquake in Wenchuan County, southwest China’s Sichuan Province, official reconstruction targets have basically been met. On May 12, 2008, an 8.0- magnitude earthquake hit Wenchuan. The number of dead and missing totaled more than 80,000 people, and millions lost their China’s refitted aircraft carrier (XINHUA) homes. Neighboring provinces, such as Gansu and Shaanxi, were also affected. profile maiden sea trial on August 10 and returned At the end of September 2008, rescue and relief to port on August 14. work in the quake-affected area shifted its focus The vessel, an Admiral Kuznets class aircraft toward reconstruction, and the Chinese carrier with a displacement of 58,500 metric tons, Government made a three-year plan for the area’s was originally built by the former Soviet Union and redevelopment. was formerly called Varyag. After the former Soviet As of May 95 percent of reconstruction projects Union disintegrated in 1991 Ukraine, which had had been completed, with the remainder to be the ownership of the unfinished Varyag, disarmed finished by the end of September. the ship and removed its engines before selling it By the end of April, more than 38,000 projects to China. of a total 41,130 had been completed at a cost of The vessel has been totally refitted for its new 885.1 billion yuan ($138 billion). role as a research and training platform for the Chinese military. Aircraft Carrier’s Debut The aircraft carrier conducted its second sea China’s first aircraft carrier set out on its low- trial between November 29 and December 11.
Top 10 Economic Events in 2011
Beijing Review
Slower Economic Growth of inflation pressures. The consumer price index (CPI) fell to 5.5 percent in November, from July’s China’s economy grew 9.1 percent in the third peak of 6.5 percent. quarter of this year, tapering off from 9.7 percent Exports, which used to be the growth engine, in the first quarter and 9.5 in the second. The continued losing steam. In November, exports slowdown is a result of voluntary quality-oriented totaled $174.46, with a year-on-year increase of growth moderation and came along with the ease NEWS FROM CHINA /JANUARY 2012 31
13.8 percent, the slowest growth since February. Tenth Anniversary of WTO Entry December 11, 2011 marked the 10th anniversary of China’s entry to the World Trade Organization (WTO). China became the WTO’s 143rd member on December 11, 2001. China’s total volume of exports and imports ranked second in the world in 2010, up from sixth in 2001, becoming the world’s second largest importer and the biggest exporter. Total tariff levels decreased from A worker uses an automatic welding machine in a factory in Zouping, 15.3 percent to 9.8 percent during the Shandong Province (XINHUA) past decade, reaching and exceeding the WTO’s requirement for developing countries. Lower Income Tax China opened 100 service trade departments, The amended individual income tax law, close to the level of developed countries. effective on September 1, raised the monthly tax It has also amended its laws and regulations exemption threshold from 2,000 yuan ($313) to in accordance with its WTO commitments. The 3,500 yuan ($547). It also lowered the minimum Central Government has cleared more than 2,300 tax rate from 5 percent to 3 percent for people laws and regulations as well as department rules. whose monthly taxable incomes are between 3,500 Local governments have cleared more than yuan and 4,500 yuan ($703). 190,000 local rules and regulations. Under the new amendment, about 7.7 percent of wage earners will have to pay taxes, down from the previous 28 percent. The number of income tax payers will be reduced from 84 million to 24 million. By readjusting the income tax rate structure, the government will alleviate tax burdens for the medium and low- income population and increase taxes on high-income individuals, also in compensation to the rising cost of living caused by inflation. Local Bonds Issued In October, the Ministry of Finance started a pilot program allowing local governments in Shanghai and
Containers at Shanghai Waigaoqiao cargo port (CHEN FEI) Shenzhen and Zhejiang and 32 NEWS FROM CHINA /JANUARY 2012
Guangdong provinces to issue bonds. It is the first central bank, issued regulations about foreign time that local governments have been allowed to direct investment (FDI) settled in the yuan, another issue bonds. move aiming at promoting cross-border use of the The Central Government ordered that bonds yuan. Within two months, China has approved of the four local governments should not exceed 16.5 billion worth yuan-denominated FDI. 22.9 billion yuan ($3.61 billion) in 2011. On December 16 the China Securities This move is expected to ease their financial Regulatory Commission, the People’s Bank of strains and curb fast-spreading risks of local China and the State Administration of Foreign government debt. According to the National Audit Exchange jointly issued rules for pilot programs of Office, local government debt totaled about 10.7 RMB Qualified Foreign Institutional Investors, trillion yuan ($1.69 trillion) at the end of 2010, formally giving the green light to investment of accounting for 27 percent of the GDP in 2010. overseas renminbi funds at mainland securities markets. Yuan Going Global Hong Kong subsidiaries of fund management This year China has been stepping up its efforts companies and securities firms can use renminbi to globalize its currency, called the renminbi or funds raised in Hong Kong to invest in mainland yuan. securities within a permitted quota, according to On January 14 the central bank’s No.1 the rules. document of the year was devoted to allowing the Meanwhile, the yuan exchange rate has been country’s qualified businesses and banks to settle increasingly driven by market demand. As of their overseas direct investment in the yuan. This November 4, when the yuan strengthened to 6.3165 is considered a move that expands the Chinese against the U.S. dollar, the yuan had appreciated currency’s global reach from international trade 4.6 percent against the U.S. dollar this year. But settlement to investment settlement. from November 30 the yuan had weakened for 12 On October 12 the People’s Bank of China, the consecutive trading days. The fluctuations indicate that the exchange rate of the yuan is responsive to market demand and is not being manipulated by the government. Home Purchase Limit On January 26, the State Council announced the toughest-ever measures to tame the sizzling housing market. Besides setting property price-control targets, increasing the supply of affordable housing and public rental housing, increasing land supply and stricter tax measures, the toughest measure was home purchase limits in large cities or cities where housing prices are high or rise very fast. A bank clerk in Shandong Province counts renminbi and dollar notes (CFP) On July 12 the State Council NEWS FROM CHINA /JANUARY 2012 33
required cities that had already implemented home purchase limits to continue to carry out related policies, while second- and third-tier cities whose home prices increased rapidly must carry out necessary policies to limit home purchases. As 2011 comes to a close, purchase limits are taking effect, as the housing market has been rife with mounting inventory, plummeting prices and sluggish sales. According to the National Bureau of Statistics, 49 cities out of 70 major cities saw month-on- month drops in new home prices in November, compared with 34 cities in A housing complex in Shanghai (CFP) October. Premier Wen Jiabao said in November the are not faring well this year. Because of tightened property market control measures will remain in bank lending to deal with inflation, many SMEs force to let the property prices fall to a reasonable faced the risk of cash flow collapse. For those SMEs level. that borrowed from private lenders with higher Many cities including Beijing and Shanghai interest rates the weakened overseas demand and have announced that the home purchase limit will sluggish market became unbearable. From the continue in 2012. middle of the year a massive collapse of SMEs was reported in export-oriented southeast coastal Supporting SMEs regions. Small and medium-sized enterprises (SMEs) A number of SME bosses in Wenzhou, Zhejiang Province ran away to avoid debt. According to the Xinhua News Agency, from April to the end of September, at least 90 company owners in Wenzhou fled, causing their companies to close. Twenty six of those incidents occurred in September alone. To provide support to these burgeoning businesses China revised its standards for SMEs in July. One of the most important breakthroughs of the revision is the inclusion of a new category of SMEs: micro enterprises. Formulating new division standards
The production line of Jiangsu Nantong NTEC Textile Co. (CFP) for SMEs aims at facilitating research 34 NEWS FROM CHINA /JANUARY 2012
and the implementation of supporting policies for counterparts since the implementation of the anti- SMEs, strengthening differentiated guidance and monopoly law in 2008. promoting SME development. Joys and Woes of High-Speed Rails On October 12 the State Council pledged stronger financial and fiscal support to small and On June 30 the Beijing-Shanghai High-Speed micro enterprises. The State Council required commercial banks to strengthen lending to small and micro enterprises, especially those whose credit limits are below 5 million yuan ($785,000). The Ministry of Finance announced on December 9 that it will cut corporate income tax by half for micro and small enterprises from January 1, 2012 to December 31, 2015. Anti-monopoly Investigation November 9 will be a memorable day in China’s anti-monopoly history. The National Development and Reform A bullet train makes its way to Nanjing South Station (CFP) Commission (NDRC) began probing China Telecom and China Unicom for allegedly taking advantage of their dominant Railway, with a total investment of 220.9 billion positions regarding broadband access to suppress yuan ($34.8 billion), started operations on its 1,318- competition from rivals and charging high fees, km-long line. The railway cut the travel time CCTV reported that day. between the two biggest cities from 12 hours to This is the first case involving large state- five. owned enterprises. The two telecom giants, which The Beijing-Shanghai High-Speed Railway can control two thirds of the country’s broadband also accelerate the integration of the Bohai Sea Rim business, will face penalties of up to 10 percent of and the Yangtze River Delta economic zones and annual revenues if found guilty. promote balanced, sustainable development of Despite having the world’s largest Internet urbanization and the economy. population of 485 million, China’s average But tragedy stuck on July 23 when two high- broadband speed only ranks 71st in the world, speed trains collided on an elevated track near while average costs are three to four times those of Wenzhou, Zhejiang Province, leaving 40 people developed countries. dead and 191 injured, causing China to reassess Although the investigation is still in progress, its high-speed rail development. the move may clear the way for the government After the accident the Ministry of Railways to broaden the scope of its anti-monopoly law. launched a nationwide safety check on its high- Public opinion has been critical of perceived speed railways to eliminate risks and lowered the monopolistic practices among large companies. But speed of its high-speed railway service. Other lines anti-monopoly cases have mainly involved foreign also joined the speed reduction. From August 28 companies’ mergers and acquisitions of domestic the top speed of the Shanghai-Hangzhou bullet NEWS FROM CHINA /JANUARY 2012 35
train dropped to 300 km per hour from 350 km Shang Fulin, former CSRC Chairman, was per hour. appointed CBRC Chairman; Guo Shuqing, former In August and September inspections of 49 Board Chairman of China Construction Bank, was projects and 6,000 km of high-speed rail lines were appointed CSRC Chairman; and Xiang Junbo, conducted. former Board Chairman of Agricultural Bank of On August 12, China’s state-owned train China, was appointed CIRC Chairman. Liu maker, China CNR Corp. (CNR), recalled 54 trains Mingkang, former CBRC Chairman, and Wu it supplied for the high-speed rail link between Dingfu, former CIRC Chairman, retired from their Beijing and Shanghai to be investigated for former positions. equipment failure. The three new chairmen face various challenges New Financial Regulators such as maintaining stability of the financial system, the yuan’s appreciation, local government debt and On October 29 China changed the top positions IPO reform. Moreover, with the domestic real estate at its three financial regulatory bodies: the China market headed in a downward trajectory, Banking Regulatory Commission (CBRC), China maintaining financial stability will play an active role Securities Regulatory Commission (CSRC) and in stabilizing the economy. China Insurance Regulatory Commission (CIRC).
Shang Fulin Xiang Junbo Guo Shuqing
Top 10 Cultural Events in 2011 Beijing Review
Gardening Expertise hundreds of rare plants and ecological landscapes from different areas and different climate zones The 2011 International Horticultural Exposition around the globe. was held in Xi’an, capital of northwest China’s It was the third time a city on the Chinese Shaanxi Province, from April 28 to October 22. mainland has held the event. Kunming, capital The 178-day expo showcased new of southwest China’s Yunnan Province, hosted achievements and new products in the areas of the event in 1999 and Shenyang, capital of landscaping, horticulture, environmentally northeast China’s Liaoning Province, was the friendly and energy-saving technology, and host in 2006. 36 NEWS FROM CHINA /JANUARY 2012
Two folk artists performing Chinese shadow puppetry (GUO XULEI) Chinese Names on UNESCO Heritage List After a decade-long application, the West Lake Cultural Landscape of Hangzhou, capital of South China’s Zhejiang Province, was officially admitted to UNESCO’s World Heritage List by the World Heritage Committee in Paris on June 24. West Lake became the only lake recognized as a world A sculpture decorated with plants and flowers at the park of the 2011 heritage in China, marking the International Horticultural Exposition in Xi’an, Shaanxi Province (JIAO country’s 41st world heritage WEIPING) recognition. Relic Theft Crackdown The West Lake is an outstanding model of a cultural landscape, reflecting idealized fusion On May 11, the Chinese Government pledged between humans and nature. to launch an eight-month crackdown campaign In addition, Chinese shadow puppetry, a form in 17 provinces and regions to deal with the of theater performed with colorful silhouette rampant relic theft that may threaten the safety of figures made from leather or paper, accompanied state cultural relics. by music and singing, was inscribed on UNESCO’s This announcement was made days after the List of Intangible Cultural Heritage of Humanity relic theft in the Palace Museum in Beijing on May on November 27. It’s China’s 29th intangible 8. On that day, seven pieces of art from the private cultural heritage on the UNESCO list. Liang Yi Museum in Hong Kong were stolen from the heavily-guarded Palace Museum, where they were on display. This incident alerted the public to the rampant theft, smuggling and illegal trading of cultural relics driven by high profits in some places in China. Police and cultural relic authorities also announced the establishment of a national database for relic theft crimes to facilitate future investigations. Free Access to Cultural Facilities The newly refurnished National Art Museum of China opened to visitors for free on March 2. The new museum,
Two folk artists performing Chinese shadow puppetry (GUO XULEI) covering an area of nearly 200,000 square NEWS FROM CHINA /JANUARY 2012 37
meters, is the largest museum in the world. In addition to the National Art Museum of China, public art museums at national and provincial levels also stopped charging admission. Meanwhile, all public libraries and cultural centers are to have barrier- free, zero-threshold access by the end of 2011 as part of China’s campaign to offer the citizens free access to public cultural facilities, which started on February 10. Other levels of art galleries are to be opened to the public for free by the end of 2012. The Palace Museum holds a press conference and apologizes for the exhibits The Central Government plans to theft incident on May 11, 2011 (XINHUA) provide special subsidies to such facilities in less developed central and west China. Dwelling in the Fuchun Mountains, by Huang In addition, local governments are required to Gongwang (1269-1354), was displayed in its provide funds to art galleries and libraries at all entirety at an exhibition in the “National Palace levels, enabling them to continue operating and Museum” in Taipei from June 1 to September 25. improving services without relying on entrance This great cultural event across the Taiwan fees. Private investors are also encouraged to invest Straits attracted a flood of attention because it was in or donate to museums and libraries. the first time for the two parts of the great work to come together since they were burnt apart 360 Landscape Reunited years ago. For more than 60 years, half of the The renowned Chinese landscape painting, painting has been kept in a museum in Hangzhou,
Visitors appreciate paintings at an art gallery in Wuhan, Hubei Province (DU HUAJU) 38 NEWS FROM CHINA /JANUARY 2012 capital of South China’s Zhejiang Province, while the other half has been housed in the “National Palace Museum” in Taipei. Its reunion also symbolizes the end of the history when the people separated by the Straits didn’t see each other for decades. Online Copyright Dispute A group of 50 Chinese authors posted an open letter online accusing Baidu, China’s biggest search engine, of stealing their work and infringing copyright laws on March 15, the World Consumer Rights Day. Museum goers in Taipei appreciate the two parts of Dwelling in the Fuchun Mountains (XINHUA) They said Baidu Wenku, Baidu’s online literary database, provided free world. download service of their works without paying copyright royalties. They claimed Wenku was Cooling Down the Art Market damaging original Chinese literature. In response Artwork prices hit new records at auctions this to the accusation, Baidu Wenku deleted nearly 3 year after China became the world’s largest art million potentially infringed items from its literary market in 2010. The artwork transaction volume section. this year is expected to more than double last year’s Online copyright infringement has become a figure, powered by the country’s double-digit prominent problem as everything goes digital in economic growth. the information age. Among others, Baidu’s case Behind the prosperity, however, a number of has called for public awareness on and effective problems have plagued China’s art market for measures of copyright protection in the virtual years. Auction companies sell fake artwork without punishment. Unqualified experts and art agencies offer unreliable endorsements and certificates. Counterfeiters grow in numbers. To resolve these knotty issues, qualified third-party artwork authentication and valuation agencies have to be established. While reinforcing supervision, the authorities also need to toughen legislative efforts to regulate the market and curb artwork counterfeiting. Cheaper Books Online Threatened by much cheaper prices Fine blue and white porcelain vases of the Qing Dynasty (1644-1911) (ZHAN YANHUI) at online marketplaces, brick and mortar NEWS FROM CHINA /JANUARY 2012 39
bookstores are disappearing in cities. While many bookstores have gone out of business, the market share of online booksellers has continued to expand. In addition to Dangdang and Joyo Amazon, many online vendors have joined the price war. 360buy began selling books at the end of 2010. Online sales of books and audio and video products are expected to be worth more than 500 million yuan ($78.75 million) in 2011. Booklovers and bookstore The bliss of hanging around in bookstores is disappearing as brick and mortar owners are calling on the bookstores come under pressure from online book sellers (LIU XU) government to save traditional bookstores, because along with year. While domestic box office revenue is expected these bookstores, a lifestyle featuring the bliss of to reach 13 billion yuan ($2 billion), Chinese movie hanging around in bookstores is disappearing. The theaters are adding eight more screens every day Chinese Government is planning to include private nationwide, or about 10,000 screens in total by the bookstores as beneficiaries of this policy to help end of 2011. them survive the competition. Thanks to increasing diversity and the fact that more audiences go back to cinemas, some small- Booming Movie Market budget productions find chances to glitter and China’s movie market continues to grow this perform well at the box office. Meanwhile, foreign film makers are trying their luck in this expanding market. While foreign faces are increasingly seen in the movie crew and cast of Chinese productions, China has further relaxed rules and regulations on movie cooperation. Six countries have so far signed cooperation agreements on movie production with China. The co-produced movies are treated as Chinese films for domestic distribution and are exempt from quota control, and are also protected in overseas markets. A scene from the Chinese version of Mama Mia! (XU ZIJIAN) 40 NEWS FROM CHINA /JANUARY 2012
The Musical Season Municipal Government, was staged in the famous tourism city in Zhejiang Province from September The past summer offered an interesting variety 15 to 22. Musicals for children, such as The Vagrant of musical performances. While the Chinese Life of Sanmao and Sesame Street, were also piquing version of Mama Mia!, one of the most popular the interest of younger audiences. musicals in the world, tours China on a 200- A real interest in musicals has been cultivated performance run, homegrown musicals are also through overseas productions and Chinese-version gaining ground. reproductions. But musical professionals still have Love U Teresa, an original musical about to cope with challenges such as a lack of talent influential Taiwanese Chinese pop singer Teresa and standards for producing quality musicals, Teng (1953-95), has been staged in Beijing since while finding investments and heading towards August 5. The Broken Bridge, a large-scale musical profitability. featuring a cross-Straits love story spanning 60 years produced with funds from the Hangzhou
The Plan for 2012
— China aims to walk a fine line between maintaining stable growth, rebalancing the economy and combating inflation next year By Hu Yue, Beijing Review
For the Chinese economy, 2012 will be a year filled with uncertainties. With the Western world struggling with a fragile recovery, China’s export growth has taken a hit, with expectations of even worse to come. Domestically, concerns abounded that the country has gone too far with its monetary tightening, which may in turn sap the country’s growth momentum. This dark prospect has placed an onus on policymakers to fine-tune their macroeconomic policies and steer the economy on a AFFORDABLE HOUSING: An affordable housing project under construction steady course. in Shanghai (YAN DAMING) For 2012, China will adhere to stable and consistent policies and retain its prudent annual Central Economic Work Conference monetary policy and proactive fiscal policy—the (CEWC), China’s top-level economic meeting, held macroeconomic outline was mapped out at the on December 12-14 in Beijing. NEWS FROM CHINA /JANUARY 2012 41
At last year’s CEWC, China pledged to take a economic blows were smaller private firms that prudent monetary stance for 2011, marking a have found it harder to secure bank loans than switch from the moderately loose policy adopted state-owned enterprises. Reports have been to counter the 2008 financial crisis. flooding media outlets that east China’s Zhejiang Province, a cradle of the private economy, is Growth Woes experiencing massive factory closures and “The world economy is confronted with serious bankrupt entrepreneurs are disappearing to avoid headwinds, with global trade weakening and the huge debts. financial markets fluctuating,” said the CEWC The purchasing managers index (PMI), a statement. barometer of manufacturing activities, slumped to “Meanwhile, domestic downside risks are 49 percent in November. This was the first time looming for the economy, and some enterprises are that the index has dropped below the boom-bust facing difficulties in operation,” it said. “The line of 50 percent in 33 months.”Judging from the inflation pressures remain and the financial sector PMI figures, China is experiencing its most difficult is hidden with potential dangers.” period since the global financial crisis in 2008 and “That means China must stay alert over the the situation demands the Chinese Government uncertainties and prepare countermeasures,” it loosens its monetary policies,” said Liu Ligang, a added. researcher from ANZ Greater China. The Chinese economy is feeling the chill of The China Entrepreneurs Survey System, a lackluster exports since the global economy remains research institution under the State Council, on a slippery slope in large part due to the two- recently conducted a survey of more than 4,000 year sovereign debt crisis. The credit rating agency companies all over the nation, and 48.3 percent of Standard & Poor’s has recently put 15 euro zone the respondents said they have come under intense nations on “credit watch” due to deepening financial pressures because of the tightening economic and political turmoil in the region. measures. “If the global recession returns, China’s exports The People’s Bank of China, the central bank, may nose-dive 10-12 percent next year, taking around 2.25 percentage points off GDP growth, “ said the Swiss investment bank UBS in a recent report. “In addition, the ripple effect will also filter through investments and consumptions.” UBS trimmed its forecast for China’s economic growth in 2011 to 9 percent from a previous 9.3 percent to reflect weaker prospects in Western economies. Domestically, signs are emerging that the once-robust growth engine is stalling as policymakers twisted hard on credit screws to quell inflation. CREDIT SQUEEZE: Employees of Center Group, a private producer of eye glasses in Wenzhou, Zhejiang Province, at work on an assembly line (WANG Bearing the brunt of the heavy DINGCHANG) 42 NEWS FROM CHINA /JANUARY 2012
has ordered interest rate hikes three times this year and increased the reserve requirement ratio six times. The quickly cooling real estate market also became a significant drag on growth. Home buyers have stayed on the sidelines, draining life out of the once-exuberant market and dealing a blow to a series of related sectors like furniture and appliances. “The contracting demand is squeezing profitability out of affected industries and dampening business confidence,” said Peng Wensheng, chief economist with the China EXPORT CONCERN: A German container ship docks at Qingdao Port, International Capital Corp. Shandong Province (YU FANGPING) Zheng Xinli, Vice Chairman of the Fine-tuning Policies China Center for International Economic Exchanges, said the CEWC has sent out a message To ensure economic stability, the Central that the country will prioritize ensuring stable Government vowed to make policies more growth next year. “targeted, flexible and foresighted.” “Policymakers should coordinate monetary “The goal is to strike a balance between and fiscal policies to benefit economic rebalancing, maintaining growth, deepening economic and lay a solid groundwork for steady growth in rebalancing and managing inflation expectations,” the future,” he added. said the CEWC statement. “Monetary policies will be fine-tuned according to actual situations and fiscal policies will focus on structural tax reduction and inputs for improvements of people’s livelihoods,” it added. China has already taken some selective steps, geared to small business, to prevent a deeper downturn. The central bank has required commercial banks to bump up lending to cash-starved smaller businesses and the weak agriculture sector. In the first three quarters, small and medium-sized enterprises received 2.26 trillion yuan ($357.03 billion) in new loans, accounting for 68.4 percent of the total. A more substantial move came on INFLATION EASES: Residents in Chongqing buy vegetables in a supermarket (LI JIAN) November 30 when the central bank NEWS FROM CHINA /JANUARY 2012 43
announced to decrease the ratio of deposits that Committee of the People’s Bank of China and a banks must set aside in reserve by 0.5 percentage researcher with the Development Research Center points for the first time in three years. This was of the State Council, believes the key to stabilizing widely seen as a signal for China’s policy shift growth lies in the fiscal front. toward targeted easing as inflation jitters give way “China is positioned to hand out more fiscal to concerns over slowing growth. stimulus such as tax reductions for smaller “The cut is within expectations given liquidity businesses and strategic emerging industries, as shortages in the banking system,” said Lu Ting, a well as greater efforts to improve the social safety Hong Kong-based economist with Bank of America net,” he added. Merrill Lynch. “It is part of ongoing fine-tuning, Qu said fiscal policies should play a bigger role which has been taking place since early October.” in stimulating the economy without sparking “Inflation is moderating in the country, leaving inflation. “The country needs to put more room for China to step up selective easing investments in affordable housing projects, and measures and shore up the weakening economy,” improvement of medical and education services,” he said. Lu expected China to cut the ratio another he added. three times before the end of 2012. Rebalancing Commitment Qu Hongbin, chief China economist with the HSBC, also believes that more reserve ratio cuts As China embarks on a more sustainable path may follow, but interest rates may remain of growth, economic rebalancing and structural unchanged until inflation falls below 3 percent. adjustment will take center stage. “Full-fledged monetary easing is not needed China will boost domestic demand, encourage because China’s exposure to external demand is consumption, expand the proportion of people in less than it was during the 2008-09 downturn, and middle-income groups, and foster the strategic its dependence on exports is much lower,” Qu said. emerging industries including information “The underlying strength of the industrial technology and new materials, according to the sector remains strong,” he said. “Policymakers statement. Moreover, efforts will be made to protect need to become more flexible and closely watch the environment, as well as enhance energy the unfolding European debt crisis.” conservation and emission reductions. Ba Shusong, Deputy Director of the Research “The slowdown provided a powerful catalyst Institute of Finance at the Development Research for the country to accelerate economic rebalancing Center of the State Council, also pointed out that and wean off reliance on external demands,” said it is inappropriate to adopt more aggressive easing Fan Jianping, chief economist with the State policies for fear of reigniting inflation. Information Center. “China must learn lessons from the massive Instead of pumping massive lending and credit expansion two years ago that sowed the investments like it did in 2009, China should attach seeds of acute inflation,” he said. greater importance to seeking more sustainable “There is usually a time lag before the monetary growth and improving people’s livelihood, he adjustments gain traction, so a more direct solution added. is to take proactive fiscal policies to avoid an “For example, the government should economic hard landing,” said Liu Tiejun, a senior strengthen anti-monopoly efforts and foster private analyst with the Shanghai-based Haitong investments by opening up more state-controlled Securities Co. Ltd. sectors,” said Fan. Xia Bin, a member of the Monetary Policy Steps to transform the growth pattern are 44 NEWS FROM CHINA /JANUARY 2012
already underway. The country’s 12th Five-Year the creation of service jobs; boost income growth Plan (2011-15) vowed vigorous efforts to propel by very aggressive urbanization—moving tens of consumption, develop the service sector and millions of people each year from the countryside eliminate polluting and energy-guzzling to the cities; and improve the social safety net, businesses. especially by investing in social security, private The country in September raised the cut-off pensions and medical insurance. point for personal income tax to 3,500 yuan ($553) Justin Lin Yifu, chief economist and Senior Vice from 2,000 yuan ($316), a move expected to bolster President of the World Bank, said China has the wage growth and fuel consumption. potential to achieve another 20 years of 8-percent Credit Suisse expected China’s share of global growth. consumption to increase from 5.2 percent at $1.72 “However, China faces challenges in achieving trillion in 2009 to 23.1 percent at $15.94 trillion in this objective due to triple imbalances, including 2020, overtaking the United States as the largest relatively weak consumption, income inequality consumer market in the world. and environment damages,” he said. In another move, the Ministry of Commerce “To address those concerns, it is imperative for recently released a five-year blueprint for the China to remove distortions in the finance, natural service trade sector, pledging generous incentives resources and services sectors that currently leave including favorable tax policies and financial too much power and borrowing capacity in the assistance. hands of big corporations and rich citizens and Industrial overcapacity is also abating. Earlier very limited access to credit for low- and middle- this year, the country released plans to eliminate income Chinese,” he said. 31.22 million tons of outdated iron-making Specifically, he said these changes should capacities and 31.22 million tons of cement include propelling development of small and local capacities. By the end of September, the country financial institutions, and encouraging competition had fulfilled 90 percent of the target, said Miao in telecommunications, power and financial Wei, Minister of Industry and Information sectors. Technology, at a press conference in November. Fears of Inflation Meanwhile, energy-efficient and environment- friendly industries are getting the chance to shine. Inflation remains a headache for the economy, As it attempts to diversify away from fossil fuel, though its acuteness is already moderating. China has made headway in developing wind and “Upward pressures on consumer prices solar energies. remain, and we will continue comprehensive “Economic rebalancing should be a long-term measures to prevent inflation from rebounding,” task for China, whatever external environment it said the CEWC statement. faces,” said Wang Tao, chief China economist with The consumer price index (CPI), a barometer the UBS. of inflation, grew 4.2 percent in November from a “The key is to deepen market-oriented reforms year ago, 1.3 percentage points down from and liberalize pricing of several elementary factors October, said the National Bureau of Statistics. This such as power, land and interest rates,” she said. was the fourth straight month of declines, after “It is necessary to allow the markets to play a peaking at 6.5 percent in July. leading role in promoting rebalancing.” The biggest driver of the CPI was still food Stephen Roach, Non-Executive Chairman of prices, which leapt 8.8 percent in November over Morgan Stanley Asia, said China should focus on the same period last year. Pork prices, in particular, NEWS FROM CHINA /JANUARY 2012 45
jumped 26.5 percent. MAIN TASKS FOR 2012 The producer price index (PPI), an effective 1. Strengthen and Improve Macroeconomic gauge of inflation at the wholesale level, edged up Regulations and Maintain Stable and Healthy slightly by 2.7 percent in November, 2.3 percentage Economic Development points lower than the previous month. Shen Jianguang, Greater China chief economist - Adopt proactive fiscal policies and prudent at Mizuho Securities Asia Ltd., said three major monetary policies to prevent economic risks; factors combined to weigh down the CPI: a - Continue with structural tax reduction, step tightening monetary environment, falling up investments to improve people’s livelihood international commodities prices and increased and tighten management of local government domestic supplies of agricultural products. debts; The policymakers have been pushing all the - Fine-tune monetary polices according to buttons to tame inflation. The government has economic situations, optimize the credit structure distributed subsidies to farmers in wheat-growing and fend off financial risks; areas, enhanced price supervision and fought hard - Increase investment in agriculture, farmers, against speculation. rural areas and affordable housing construction, Wang Jian, Secretary General of the China and continue supporting technology innovation, Society of Macroeconomics under the National environment protection, strategic emerging Development and Reform Commission, said industries and key infrastructure projects. China’s inflation jitters are easing, but have not 2. Reinforce Supplies of Agricultural Products disappeared. “The downward cycle of consumer prices is - Increase subsidies to agricultural productions yet to be established,” he said. “The future trend and bump up the minimum purchase prices of will largely depend on international commodities grain; prices and whether China can reap a bumper - Tighten rural infrastructure construction, harvest of grain next year.” including irrigation projects, roads and grids; Wang expected the inflation rate to stay - Strengthen efforts to promote rural elevated near 5 percent in 2012 due to persistent compulsory education and secondary vocational pressures from labor and land costs inflation. education, and expand coverage of the new rural Zhang Yongjun, a researcher with the China social pension system. Center for International Economic Exchanges, also 3. Speed Up Economic Structural Adjustments struck a note of caution. “Lagging effects of the lending spree two years - Encourage consumption and increase income ago are tapering off, paving the way for inflation of residents, especially poorer population; to cool off,” he said. “But China’s inflation is likely - Propel innovation, protect intellectual to come roaring back if the United States kick-starts property rights and sharpen industrial a third round of quantitative easing.” competitiveness; “The challenge for policymakers is to enact - Cut back on outdated industrial measures that boost domestic demand and to capacities, promote mergers and acquisitions, loosen credit controls somewhat without stoking develop new energies, stimulate the modern inflation and property price bubbles,” said Jing service sector, invigorate the cultural industry Ulrich, JP Morgan’s chairwoman for global and enhance energy conservation and emission markets. reductions. 46 NEWS FROM CHINA /JANUARY 2012
4. Deepen Reforms and Further Open Up to the 5. Improve People’s Livelihood Outside World - Increase the quality of education, promote - Push forward the value-added tax reform and employment and support labor-intensive industries the pilot program of property tax, reform the and small and micro-sized enterprises; resource tax system and research on the - Improve the social safety net, expand pension environment protection tax reform; systems and help migrant workers in employment, - Deepen market reforms of interest rates, housing, medical health and education of their further reform the yuan exchange rate regime and children; ensure basic stability of the yuan; - Tighten funding, construction, operation and - Maintain steady growth of exports, upgrade management of affordable housing projects, export structure, expand imports and seek trade adhere to control measures of the real estate balance; markets, bring house prices back to a reasonable - Attract foreign investments to the central and level, expand supplies of commercial houses and western regions, widen outbound investments and promote healthy development of the property fight against protectionism in any form. markets.
IV. TIBET TODAY
Chinese Official Talks with EU Representatives on Tibet Issues China Tibet Online
On Dec.12, 2011, Zhu Weiqun, Executive Vice Party respectively). Minister of the United Front Work Department of During the meeting, Zhu Weiqun briefed them CPC Central Committee, had dinner and the current situation in China’s Tibet Autonomous discussion sessions with representatives in Brussels, Region, and answered questions concerning the at the Mission of China to the EU. The Dalai Lama issue, human rights in Tibet, “the self- representatives include chief executive officials of immolation incidents”, contacts and talks, etc. The the Chinese Department of European External main contents are as follows: Action Service, senior researchers of the Institute Zhu Weiqun: First, I will brief you the basic of Contemporary China Studies in Brussels, situation of China’s Tibet, and then I would like to researchers of the Eurasia Center, Professors of answer your questions. the College of Europe, journalists of New Europe, This year marks the 60th Anniversary of Tibet’s journalists of EU Observer, editors of the magazine Peaceful Liberation. During the past 60 years, the Parliament, students of the College of Europe, and Chinese government has done a lot to Tibet, in assistants of members of the European Parliament general three good deeds. (from People’s Party and Conservative Reform NEWS FROM CHINA /JANUARY 2012 47
The first one refers to the Peaceful Liberation support the development of the Tibet Autonomous of Tibet in 1951. Since then, it is no longer possible Region. In the “12th Five-Year Plan” period (from for any forces to split Tibet from China. Tibet’s 2011 to 2015), the overall investment is planed to Peaceful Liberation is a great progress of human amount to 330 billion yuan, more than double the rights. Because China’s national sovereignty, figure of the previous five years. which is regarded as the basis for human rights, In 2011, Tibet’s gross domestic product (GDP) has been guaranteed. is estimated to reach 60.5 billion yuan, a 12.6 The history has clearly indicated that human percent increase over that of last year, keeping a rights in Tibet can never be possible with imperialist double-digital growth rate in 19 consecutive years. aggression and humiliation. The average disposable income of urban residents The second one refers to the suppression of the is estimated to reach 16,148 yuan, up by 7.8 armed rebellion launched by the minority of the percent that of 2010. ruling class led by the 14th Dalai Lama. We are always concerned about famers and The Democratic Reform has abolished the herders, because they living in most harsh theocratic feudal serfdom which existed for conditions. Data indicate that the per capita net hundreds of years. Since then,Tibet has stepped income of Tibetan farmers and herders will reach into a new socialist society, just like the other parts 4,700 yuan with a double-digital growth rate over of the country. And what’s more, it has been rest the past nine years. assured that the old feudal serfdom system could An important meeting was held recently in never be restored. China, and the poverty-relief criterion (average per Millions of serfs and slaves have gained human capita income) has been raised to 2,300 yuan from rights through the Democratic Reform, which had the previous 1,196 yuan. Of course, this has given important and a far-reaching influence in the world a challenge to our next step in poverty-relief history of human rights. development, but it is a must. The criterion of 2,300 The third one refers to the establishment of the yuan, if calculated, is equivalent to the per capita System of Regional Ethnic Autonomy, which led income of one dollar per day. Therefore, based on to a rapid economic and social development in the per capita net income of 2011, the living Tibet in half a century. What’s more, it has also standard of the Tibetan farmers and herders has protected and improved every aspect of the human generally gone well above the poverty line. rights undertakings. Besides, Tibet also witnesses a booming I’ve been to Tibet on business trips for 40 times development in education and health. There is including five times this year. And I see changes another number to prove this: the average there each time, such as people’s living standard expectancy of Tibetan people has increased to 69 has improved and democratic rights are years old from only 35.5 years old in 1951 when guaranteed. Here I cite some basic numbers for you. Tibet was just peacefully liberated. The population Though the numbers are boring, they indicate the in Tibet has increased from one million to three achievements made through the joint efforts by the million. But one point needs to be stressed: it is Chinese central government and the Tibetan definitely not true as someone said the increase of people. population of Tibet is resulted from migration of During the 11th Five-Year Plan period (from inland Chinese. The Tibetan population has taken 2006 to 2010), the Chinese government pumped a up above 92 percent in each of our census, total construction fund of 137.8 billion yuan to including the most recent one. 48 NEWS FROM CHINA /JANUARY 2012
It is a basic policy in China to respect and and the general norms in international relations. protect citizens’ freedom of religious belief. At If the EU has recognized that Tibet is a part of present, there are 1,780 Tibetan Buddhist China, the EU has no right to invite such a monasteries in Tibet, which is to say, about one separatist and head of the rebellious clique. I hope monastery for every 1,600 people. There are 46,000 all of you here to play your part in preventing such monks and nuns in all, taking up 1.5 percent of terrible incidents from happening again in future the overall population. I have no idea about how given your relationship you cherish so much many people on average share a church or what between China and the EU. the demographic percentage of clergymen in the I used to be a journalist with the People’s Daily total population is in Europe. Of course, the and I like to ask tough questions. Today, you are number is much lower than that in the Dalai also welcomed to raise tough questions to me. I Lama’s ruling period. At that time, there were hope it won’t affect your appetite today that I just 100,000 monks and nuns out of a mere population mentioned the new head of the Dalai clique’s of one million. But let’s think about it: would there “government-in-exile”. be any hope of social progress for such a society? The EU: I am an official with the European At present, China and the EU have a friendly Eternal Action Service (EEAS). Your visit to relationship and both sides have built up an all- Brussels and the questions you have raised are around strategic partnership through multi-level quite important. We are glad to hear that Tibet dialogues and cooperative mechanism covering has made remarkable achievements. And I want areas in economy, technology and humanity. The to remind that you know clearly how much the cooperation has benefited both sides and even the EU values human rights as well as protection of whole world, especially under the context of traditional culture. That’s why we are concerned international financial crisis and the EU’s debt crisis. about the human rights and cultural protection Strengthened connections and mutual support are situation whether inside or outside the European urgently needed for both to overcome difficulties Union. together for a win-win situation. We have paid attention to the recent self- When cooperation between both sides becomes immolations of the monks. From the perspective increasingly important, however, I feel puzzled at of the EU, the incidents showed extreme persistent reasonless accusations over China from desperation of some Tibetans over their culture the EU. On the contrary, in my memory, Chinese preservation. I want to point out that the EU does people have never criticized EU’s internal affairs not recognize the legitimacy of the guy as Kalon at any time. A recent example is that some Tripa of the “government-in-exile”. But he was minorities in the European Parliament, regardless only invited by the publicly elected and of China’s interests, insisted on inviting the new independent parliament members, rather than the head of the Dalai clique’s “government-in-exile” European Union. to Brussels and held high-profile meeting with him. Zhu Weiqun: To develop China’s human rights, They also invited him to give a speech in the name we need to make more efforts and we hope that of “prime minister of the Tibetan Administration there are more friends to help us.However, what I Center” to the Foreign Affairs Council of the EU, want to say is that the Chinese government care disseminating the so-called “Tibet Independence”. more about its people, with Tibetan people Such activities are extremely ridiculous, included, than any other government in the world. running counter to both the EU’s promise to China Why did the Chinese Communist Party start a NEWS FROM CHINA /JANUARY 2012 49
revolution then? (rather than Tibet) since March this year. Those It was because that one task of this revolution who set themselves on fire are in their twenties is to fight against the invasion of imperialism and the youngest is only 16 years old. I was shocked forces, including some European countries, to by those incidents and feel sorrowful for those China.Not too long ago, some European countries young lives engulfed in flames. had launched two wars to invade China’s Tibet.In When I went to those temples for a field survey a war in 1904, with modern arms, which is a not long ago, the local monks and residents symbol of civilization, these invaders killed more expressed indignation at those who had provoked than 600 Tibetans in a valley at one time. those incidents. At that time, have any of you talked about The incidents of self-immolation occurred in human rights for Tibetan common people? only four temples, but there are 3,542 temples in Besides, in 1951, some countries in the west Tibet and other Tibetan areas, with over 140, 000 backed the local Tibetan government with guns to monks and nuns in total. Therefore, what the Dalai revolt against the peaceful liberation by the central clique described that all the Tibetan areas were government. What’s more, in 1959, they directly burning up is not true at all. The vast majority of incited and backed up the Dalai clique to rebel, temples and monks did not get involved in this with not only so-called “moral support”, but also matter, instead, they condemned it. The Dalai direct arms airdropping and agents training. clique also mentioned that Tibetan people are living During that time, have any of you talked about in misery. In my view, however, the only person human rights for China’s Tibetans? in a tragic situation is the Dalai Lama himself. What we have done, including emancipating Self-immolations occurred in four of the 3,542 millions of serfs in Tibet, developing Tibet economy, temples with most incidents happened in one improving common Tibetan’s life standard, temple, the Kirti Monastery in Aba county of insuring the freedom of religious belief, as well as Sichuan Province. Why? The Kirti living Buddha reserving and expanding Tibetan culture, etc, these used to follow the Dalai Lama and launched the are all for Tibetans’ human rights. However, how armed rebellion in 1959. After it failed, he fled many favors have you westerners done for that? abroad and served as the “security minister” of You westerners can count it by yourselves! the Dalai clique’s “government in exile”, which, As far as I can see, some Europeans care more as we know, is a department for making about the privileges which some few feudal serf bloodshed, destruction and sabotage. owners, represented by the 14th Dalai Lama, have The first self-immolation happened on March lost and the supreme powers that the 14th Dalai 16, and the monk who burned himself to death has lost in politic, economy and religion. was only 19 years old. The other three monks who I’m sorry that I have not enough time to list instigated him were arrested. They confessed in some western countries’ terrible and ignominious court that they had been incited by the separatist “human rights records” today. Now, I’d like to talk forces. When the self-immolation happened, they about the self-immolations that you are concerned not only stood aside but also prevented our cadres about. from helping the injured. They filmed the self- A chain of self-immolations have happened at immolation, and sent it to Dharamsala quickly. four monasteries in the Garze Tibetan Autonomous As it was reported, continuous self-immolation Prefecture and Aba Tibetan and Qiang incidents occurred. The Dalai clique dubbed the Autonomous Prefecture in Sichuan Province monks and nuns who burned themselves as 50 NEWS FROM CHINA /JANUARY 2012
“heroes” and “fighters”, expressed their in 1959 the Dalai Lama were able to launch an admiration, suggested to “award” them, and elaborately planned armed rebellion in Tibet; in wanted to erect monuments for them.The Dalai 1960s they had no ability to launch real wars with Lama even held a religious ceremony and led a us, but they were still able to harass our border fasting in Dharamsala. He praised those victims while living overseas; later they found it difficult for their “courage” and encourages more people to make military activities and their military base to go down toward this dead end. was destroyed in Nepal, whereas in 1980s they I noticed that some western media, including could still stirred up riots in Lhasa, which had Reuters, the French international broadcaster, lasted for three years; in 2008 they made a Deutsche Welle and so on, who barely agreed with desperate attempt by making the March 14 riots us, pointed out the Dalai Lama did nothing to stop in Lhasa which were cracked down by us soon. the self-immolations but encouraging them. Now the clique can only cheat a few innocent What’s even worse is that in the articles young men to burn themselves to death in order published by the “Dalai Lama Tibet Religious to impose pressure on the Chinese government. Foundation” in Taiwan, the self-immolations were There is a Chinese saying goes that “weasels give regarded as “Buddha practice”, and they declared birth to rats”, which means that one generation is that those who burned themselves to death would inferior to the last. Will a political group last long be reincarnated into Buddha immediately. They when they make a living by inducing their fellows forgot that Tibetan Buddhism is a religion of to burn themselves? In this case some people from compassion, which values life . the EU still connect their own fate to that of the It is shown that the self-immolations are caused Dalai Lama, which is so unwise. Whether to cheat by the long-term brainwashing of those monks by another few for self-immolation or not has different the Dalai clique, who are locked in the temples voices inside the Dalai clique because some believe and lack of basic modern education. The reason that such a scheme can’t go on. Today I can frankly for these tragedies is that the Dalai Lama wants to tell every friend that the Chinese government will transform the Tibetan Buddhism into a religion of not change policies on Tibet and the attitude suicide to serve his own political purposes. toward the Dalai clique even if such cases happen You said that the self-immolations are caused again. by our destruction of Tibetan culture and religion, You just mentioned that some members of the but could you give me the evidence? How did we parliament of EU invited the new head of the damage the Tibetan culture and religion? I could “Tibetan-government in exile”. I clearly know give you numerous cases for our protection and about the inner structure of the EU and I also know development of Tibetan culture and religion. Could that a few people from the parliament can’t stand you give me examples of the so-called destruction? up for the whole EU. However, as an international Will the Chinese government change policies organization, shouldn’t the EU keep its members in Tibet and the attitude toward the Dalai clique in bounds when the merciless members are only because we are attacked by some people about harming the interests of other countries as well as the incident of the self-immolation? that of EU? If not able to constrain their behaviors, I suggest that everyone have a review about can’t EU at least criticize them? It is not a good the history: in 1951 the upper class of Tibet fought thing for the EU’s prestige if showing sympathy to against the People’s Liberation Army in Chamdo those who violate the interest of the Chinese people to prevent Tibet’s liberation although they failed; by committing brutal actions or offering them NEWS FROM CHINA /JANUARY 2012 51
platforms. Tibet has never closed its door to the outside I have heard too many of the excuses that you world. Last year, Tibet hosted a total of about 6.85 have said before: when something have been done million tourists, including about 228,000 to harm the interest of the Chinese people, some international tourists. This year, the number of would say that should attribute to the parliament, tourists rose to about 7.5 million with a drastic non-governmental organizations or somebody’s increase of tourists from overseas. private behavior, which seems as if it is not the The EU: Will you interfere if we move around government who manages the land. Some people and have interviews in Tibet? often criticize our Chinese government that we lack Zhu Weiqun: It appears that you have never democracy and human rights, but we know about been to Tibet. There is no interference in one’s a fundamental principle that we can’t allow some interview. But honestly speaking, Tibet is a border people to harm the interest of other friendly region and it’s the international practice that one countries in the land of China. A responsible must obey related rules in some border areas or government should hold the attitude that never restricted military zones. accusing others when knowing little about the The EU: You hope that the EU should restrict facts. the activities of some of its members. In your The EU: In my impression, your visit aims to opinion, what measures should we take? discuss “Tibet issue” with us frankly and sincerely. Zhu Weiqun: It’s your internal affairs. I will If so, will China allow the EU to send an never impose my idea on others. As a Chinese independent diplomatic team to Tibet to check saying goes, “don’t impose on others what you your description? yourself do not desire”. Zhu Weiqun: That’s a serious issue. China is I can only suggest that the EU try to persuade an independent country and has the ability to someone who speaks indiscreetly and groundlessly. safeguard its sovereignty and interest. We never One should learn more of Tibet’s real situation and allow foreign forces to interfere in China’s internal then speak discreetly. affairs by any means. One shouldn’t hurt the interest of a country I never believe it can settle any problem or bring with a population of 1.3 billion and fast economic good to its people for foreign forces to interfere in growth. Making the Chinese uncomfortable will the internal affairs of another country. On the result in serious consequences. contrary, it will intensify the contradiction and Of course, it’s indeed not a big deal if someone even lead to wars. doesn’t like to take my advice and continues to China never interferes in other countries’ denounce and attack us. internal affairs, or requires other peoples to do so. In my opinion, if there are some contradictory Likewise, we will never allow any other country voices by the ear, it may be a good way for an to interfere in our own internal affairs. No one can individual or a country to enhance its vigilance allow you. and strengthen its self-resistance capability. You can criticize us or give us advices, but we The EU: According to your experience of will not give the right of handling internal affairs conducting several meetings with the envoys of to any foreign organization or government.Of the Dalai Lama, would you please tell us the latest course, if foreign officials, journalists or scholars development and future movement? want to visit Tibet and broaden their knowledge Zhu Weiqun: China’s central government has of the Tibetan ethnic group and Tibetan culture as arranged 10 rounds of talks with the private individuals. They are all welcome. representatives of the Dalai Lama since 2002. Yet 52 NEWS FROM CHINA /JANUARY 2012
no results have been achieved by far. Dalai’s rigid and arrogant attitude creates The Chinese central government and obstacles to contact and talks. How did the Dalai representatives of the Dalai Lama had “sharply Lama come out with such ridiculous demand divergent” views. There are two basic reasons: The without any power to compete with the central first lies in that the Dalai Clique declares that this government? I assume that he owns the support is a talk between the “two separate governments” of some western countries. -”Tibet government-in-exile” and China’s central I suggest those western countries would government. persuade this 77-year-old old man to abandon his It is acknowledged that the “Tibet government- unrealistic ambition and restart talking with the in-exile” is illegal, it is only a continuation of rebel central government about his future. Or else, he groups. Therefore, the talk we will consider is only will end up with a poor ending. that between the Chinese central government and The EU: Many Europeans hold opinions the private envoys of the Dalai Lama. However, towards Chairman Ashton, so what do you think the interference of the new boss of the “exiled about the EU leaders? In addition, what do you government” makes it even more difficult to think about the “Tibet Issue” and “Taiwan rearrange such talks. Question”? Are there any common points and Secondly, the two parties disagree on the differences between them? contents of the talks. We firmly hold the position Zhu Weiqun: I didn’t pay much attention to that the Dalai Lama should first comply with the the EU leaders, nor would I judge them. The central government in terms of the following basic judgment should be made by EU countries and principles. For example, Tibet is an inalienable part people from all countries. of China, and Taiwan is an inalienable part of If you want to compare Tibet with Taiwan, China. The Dalai Lama should cease his separatist there is indeed a common point: both of them are activities before we would continue to discuss inalienable parts of China. The difference is that about his future. the unification with Taiwan hasn’t been realized, However, the so-called issues of “Tibet’s and we tend to unify Taiwan with the policy of political status”, “Greater Tibet” and “High degree “one country, two systems”. of autonomy” raised by the Dalai Lama ask only Tibet, however, was and is a region under for the whole Qinghai-Tibet Plateau with 25- China’s sovereignty with national autonomy. million hectares under the control of his clique. China practices the same administrative policies This is out of the question. in Tibet as those in other provinces. The central After his selfish request was refused, he stopped government did offer some more preferential the talk twice in 1993 and 2008. Even though, the polices in Tibet, as its economy lags far behind than central government did not give up the talks and that of other regions. wanted to “give the Dalai Lama a chance to correct Therefore, the “Tibet issue” never exists. The his mistakes”. socialist system has been established in Tibet for Recently, Dalai Lama claimed that what needed over half a century. We will give full play to the to be discussed were not his own future , but the system so that more Tibetans can benefit from it “future of the six million Tibetans”, and “the and lead a relatively comfortable life. position of Tibet”. In terms of these two problems, The EU: your name is widely known in China, the central government has already settled with what do you think about Tibetan people’s feelings no possibility of changes in its position. when your name is mentioned? Are they going to NEWS FROM CHINA /JANUARY 2012 53
be happy or scared? However, when they told the truth about Tibet, Zhu Weiqun: My name is not so well-known they were still questioned and opposed by some in China, for there are many more capable cadres Europeans. in China. I was given the job to handle the Dalai At the same time, no matter which ethnic Lama issue due to being less capable. group we belong to, the national unity is our highest I have many friends in Tibet, including top priority. Though there are no ethnic Tibetans in Tibetan leaders, ordinary Tibetan farmers and my team, we still represent the whole nation’s herders, and Tibetan seniors. I hold no doubt that interest. As the Executive Vice Minister of the Tibetans are satisfied with my work, as I have United Front Work Department of the CPC always received heartfelt welcome wherever I Central Committee, I not only represent the Han arrived in Tibet. I also have no doubt that some nationality, but also the 56 ethnic groups in China people, especially those in the Dalai Lama clique to protect my country’s interest. hate my guts. Nevertheless, I feel honored to be I agree with your suggestions, and we will hated by the splitting forces which engage in invite more Tibetan friends for international sabotaging Tibet’s stability. And it may even be communications in the future. the greatest achievement in my life. If the Dalai I want to tell you that one of the Vice Ministers Lama and his followers, including those who of the United Front Work Department of the CPC, incited self-immolations did like me, it would mean Sita is a Tibetan and my Tibetan colleagues account I have done something wrong. for one third of our team on Tibetan affairs. The EU: As a Chinese European who has lived At present, I am aware that the western media in Europe for dozens of years, I don’t think the supports the Dalai Lama. There are many reasons: Chinese Communist Party has given a positive at first, I admit that there are few opportunities impression to Europeans. Due to the Cold War, for us to tell the real Tibet to the western society. they always hold negative judgment about the The other reason, which you have already Communist Party as well as communism, especially mentioned is that the ideology reflected in western after years of Tibetan exiles’ propaganda. It is media doesn’t accept the success of Chinese indeed an arduous task for you to let more Communist Party and doesn’t want to see the Europeans hear China’s real voice. rapid development achieved in China’s socialist A journalist just said that an independent system. investigation team should be sent to Tibet, which Due to the stereotypes, some people are more is coincided with most Europeans’ thought about prone to believe the Dalai Lama, but not us. I can Tibet. They hold suspicious attitude towards not change the way people think, but the peaceful leaders elected and sent by the Chinese Communist development in Tibet can prove everything. I Party. believe time is on our side. Therefore, I think the Chinese Delegation to I would like to hear the two young students’ other countries should bring some of Tibetans with opinions, for maybe in a few years you are the ones you to tell us what has happened in Tibet right to settle the China-Europe affairs. now. Their words would be more convincible and The EU: The reason why the Dalai Lama can understandable for Europeans. be successful in Europe is that his language can be Zhu Weiqun: In the recent years, we have understood by Europeans. On the contrary, the organized Tibetan scholars, government officials, words from the Chinese government seem not and religious leaders for many international visits. believable. 54 NEWS FROM CHINA /JANUARY 2012
China needs to learn how to use the European expenses come from some western countries. language and methods to express their ideas; while The principle of determining a person first as for the Europeans, we also need to abandon the would see what contributions he or she has made. prejudices with an open mind. As for the Dalai Lama, what has he contributed to Zhu Weiqun: Your suggestion is very good, Tibet? Compared with the endeavor of the Chinese showing young people’s perception towards world government, what has he brought to the Tibetan affairs. people? In my opinion, during the last decades after The best method to resolve differences is the Dalai Lama fled China in 1959, he devoted resorting to the facts when observing the same much of his time and energy to learning western problem with different backgrounds and ways of thinking and socializing with the help of perceptions. his western teachers. One who does not respect the fact may be But in fact, there is one more fundamental successful at present, but in a long run, he will reason-the political force behind the Dalai Lama. lose. Every year, he is supported by the annual As I sit on the host position today, my remarks financial allocation from some countries, charity may seem too strong. It doesn’t matter whether funding and money collected through public you believe or not, but we welcome each one of meetings and mass prayers. you to Tibet and make your own judgments with According to their own material released by your own eyes. the Dalai clique, more than 90 percent of its
China Earmarks Additional 8 Mln Yuan to Renovate Tibet’s Sera Monastery
Lhasa, Dec. 30 (Xinhua) — The Chinese yuan, said Penpa Gyaencaen, an official with the government has pledged an additional 8 million monastery’s civil management committee. yuan (1.26 million U.S. dollars) for renovations at The central government originally earmarked the Sera Monastery, one of the three leading 46 million yuan for the renovations. monasteries in Lhasa, a massive project whose The renovations will preserve the monastery’s completion has been pushed back to next October. original style. The project was expected to be More than one year after the renovation work finished by the end of 2011, but is now expected started, work crews had completed repairs on three to finish in October 2012, officials said. major colleges in the sprawling compound of the Sera, Deprung and Ganden are considered the five-century-old monastery. The project, ‘great three’ Gelukpa monasteries in Lhasa, a holy suspended for the plateau’s frigid winter, will land of Tibetan Buddhism. resume in March, monastery officials said Friday. Since the 1980s, the Chinese government has Next year’s repairs will focus on the golden roof spent more than 1.3 billion yuan on the of the Great Assembly Hall, for which the preservation of more than 1,400 monasteries and government has earmarked an additional 8 million cultural relics in Tibet.
Postal Regd. No. DL-SW-1/4034/12-14 R.N.I. No. 47440/88 January 2012
The Summer Palace in Beijing has been decorated with traditional laterns for the Chinese Spring Festival.