lESE WEEKLY OF NEWS AND VIEWS g eOctobewr 20,198 6 Buttons: Symbol of Wenzhou's Success sporuQHr Washing by a pond in Longgang, a new town financed and constructed by the farmers themselves. Glimpses of Wenzhou The Wenzhou area in coastal Zhejiang Province has become a new mecca for those interested in China's econonfiic reforms. People flock to see the countryside's booming industries, brisk trade and numerous housing projects. photos by Gang Wang Boats are a major means of transportation in rural Wenzhou. Local farmers helped build Asia's biggest wholesale button '•entre in Qiaotou. Extravagant funeral procession in Qianku. U VOL. 29. MO. 42 OCT. 20. 1986 HIGHLIGHTS OF THE WEEK CONTENTS r NOTES FROM THE EDITORS Ideology, Reform and Open Policy Cultural, Material Advances Hand in Hand • Dai Yannian, in "Notes From the Editors." argues that it is wrong to see the policies of reform and opening to the outside EVENTS/TRENDS 5-9 world as incompatible with building an advanced culture and China Improves Climate for ideology. Indeed, writes Dai. ihcy complement and promote Foreign Investment each other. Some of the negative social aspects that have arisen Marshal Liu's Death '"a Great in recent years have less to do with the new policies and more Loss" with feudal ideology and bourgeois thinking (p. 4). Hu Optimistic on Reunification New Satellite Returns to Earth Two Systems; Long Coexistence Shanghai Tries Stocks and Shares Plans to Upgrade Nation's US-Soviet Reyl<javil( Summit Fails Transport • Why the Iceland summit failed to reach any agreement despite previous high hopes (p. 10). INTERNATIONAL 1X)-13 US-Soviet Summit; Disappointing Results After High Hopes Soviet Union: Attitude Towards EEC Changes Improving the Investment Climate IMF Meeting: Little Progress Made Israel: After Change-Over Libya; Why a Divorce From Fiat • A document published by the State Council detailing the preferential treatment to be accorded enterprises operated with foreign investment is intended to improve the climate for Special Report: Buttons Work investment and attract both foreign funds and advanced Miracles in Wenziiou 14 technology (p. 5). Cliina Wakes Up to the Plight of Its Blind Children 25 China Adopts and Adapts Shakespeare 27 Buttons Wori< IVIiracJes in Wenzhou BUSINESS/TRADE 30-31 • The booming cottage industry in buttons and other small CULTURE/SCIENCE 32-34 commodities has brought prosperity to 400,000 rural households in Wenzhou. By extending the household COVER: Wholesale button stalls in the town of Qiaotou, Wcnzhou. responsibility system beyond agriculture, the "Wenzhou model" represents a new way of dealing with surplus labour (p. Gang V¥ang 14). Publiitwd evwy Monday by DisfrttMtad by Otina inta I pricss (1 y«ar)t Sub* USA USS22JI BEIJING REVIEW Trodins Corpon I (GUOil SKLIDIAN), A.$22i» :24 Baiwcmzhuang Road, Beijing P.O. Box 399, Belling, China New Ze«k»Hl... NZ.$3ILI)0 UK. £1tM Jht People's Republic of C3^ Canada. Can. S21J0 NOTES FROM THE EDITORS Cultural, Material Advances: Hand In Hand by Dai Yannian ome people in China think the foreign trade have actually and are concerned about ecology S economic development of promoted China's economic and pollution. recent years has been achieved at and cultural advance. In the The changes China is the expense of its socialist morals countryside where reform was first experiencing are also refiected in and that the negative phenomena pioneered, farmers who have people's growing respect for in society are caused by reform "become rich" subscribe to knowledge and intellectuals, and and the open policy. newspapers and buy TV sets, the national enthusiasm to study Some foreigners, when they see radios and tape recorders. Some science and culture, which of China stress the importance of farmers donate money to run course is what developing the cultural and ideological progress, schools, libraries, clubs, culture is all about. imagine that China's reform and recreational grounds, theatres and Undeniably negative opening to the outside world are cinemas. The material progress phenomena such as "working for being hampered and therefore its has contributed to cultural and money alone," "appropriating modernization effort will -ideological progress. state and collective property" and probably slow down. Others "seeking self interest by misusing simply do not believe that it is Conservative parochialism has power" exist. These problems possible for China to learn from deep roots among China's should be dealt with seriously, but the West and adhere to the peasantry. With the development it is not objective to see them as an socialist road. of the commodity ecomomy, the inevitable corollary of reform and old ideas are being broken and the open policy. All these views take reform and superseded by new concepts of the open policy to be incompatible opening to the outside world, In fact, many of these negative with socialist cultural and efficiency, information, associa• phenomena contradict the aims of ideological progress, and, it seems tion, competition, and cultivation reform outright. People are to me, have missed the point. of talents. These in turn promote encouraged to be competitive and As the Resolution of the CPC modernization. become well-to-do through labour Central Committee on the but not at the expense of state and collective tnterest. The govern• Guiding Principles for Building a With the principle of remunera• ment advocates that a number of Socialist Society With an tion according to work gaining people become well-to-do before Advanced Culture and Ideology ground, people no longer see others within the goal of common adopted at the 6th Plenary Session absolute egalitarianism as a part prosperity, but has never connived of the 12th Central Committee of of communist ideals. Thi^ is in economic criminal activities. the Communist Party of China on evidence of great progress in Cadres are urged to work September 28, 1986, has pointed people's thinking. out, these elements are co• innovatively, but they are not ordinated and promote each The Chinese used to "look allowed to line their pockets other. It is becoming more widely vertically," comparing today with through their position. These acknowledged that facts bear this yesterday, so they saw only negative phenomena are rooted in out. progress and achievement. With feudal ideology and bourgeois thinking as well. They could be China's original political and China's doors opening wider, the overcome by encouraging socialist economic systems had many people broaden their horizons. democracy, reforming the polit• defects, for instance, shunning They learn to compare ical structure and developing the international intercourse, with the China with other countries, and socialist planned commodity result that the national economy gain new perspectives on China economy. developed rather slowly. Since itself. They see that there is a great 1978, efforts to replace the old deal to learn in the way of practical Some of the negative pheno• system with a planned commodity and spiritual values. They see, for mena do of course result directly economy based on public owner• example, that in some places from reform and the open policy. ship but accommodating multiple abroad people are polite, respect In our socialist commodity economic sectors and to open the public order, do not spit or litter, economy, which is based on public country to foreign investment and set great store by histroical relics ownership, there exist non- 4 BEIJING REVIEW, NO. 42 EVENTS/TRENDS socialist elements. Although they are few and somewhat different from those in the capitalist world, they are alien to the socialist China Improves Climate economy in nature and in the influence they exert. Along with For Foreign Investment the introduction of foreign science and technology, unhealthy foreign imports arrive too. How do we prevent the invasion n October 11 the State Council mentioned enterprises at between of corrupt ideologies? Not by O of China published "Provi• five and 20 yuan per square metre cutting short the progress of sions for the Encouragement of per year, except for those located reform and the implementation of Foreign Investment," a 22-articIe in the busy urban areas of large the open policy and going back to document designed to encourage cities. The maximum rent shall be the old rigid system. If we do that, foreign companies, enterprises three yuan per square metre per we will fail in our modernization and other economic entities or year in areas where the develop• and will still he saddled with individuals to establish Sino- ment fee is computed and charged corrupt ideologies. Ihc onlv foreign equity joint ventures, on a one-time basis, or in areas practical and effective way is to Chinese-foreign co-operative ven• which are developed by the persist in reform and the open tures and wholly foreign-owned enterprises themselves. policy and, at the same time, enterprises in China (for full text Under the new provisions, strengthen cultural and ideolog• of the document see next issue). export enterprises and technologi• ical education and perfect the legal The aim is to improve the cally advnaced enterprises shall be system. investment climate, facilitate the given priority in the supply of The socialist cultural and absorption of foreign investment, water, electricity, transport ser• ideological construction is aimed introduce advanced technology, vices and telecommunications at cultivating well-educated and improve product quality and facilities. They will also receive self-disciplined socialist citizens expand exports in order to earn priority in obtaining loans for with lofty ideals and moral more foreign exchange and short-term working funds needed integrity. Science and culture develop the national economy. in production and distribution, as should advance so as to supply According to the provisions, well as other credit. mental motive force to power the preferential treatment will be One article of the document development of material progress granted to two kinds of stipulates that after the expiration and provide it with socialist enterprises — productive enterpr• of the period of reduction or ideological guarantees.