lESE WEEKLY OF NEWS AND VIEWS

g eOctobewr 20,198 6 Buttons: Symbol of '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 Province has become a new mecca for those interested in '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 Tries Stocks and Shares Plans to Upgrade Nation's US-Soviet Reyl

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 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. ises whose products are mainly for exemption of an enterprise from export and which can earn a Some foreign commentators say income tax in accordance with foreign exchange surplus after China walks a tightrope in trying state provisions, technologically deducting all their foreign ex• to reform its economic and advanced enterprises may have change expenditures ("export political structures and open itself their period of income tax reduc• enterprises" for short); and to the outside world while tion or exemption extended by enterprises possessing advanced promoting cultural and ideclog- three years at one half the former technology supplied by overseas ical development. Indeed, to rate of tax; and the export- investors that can be used to pursue the metaphor, the audience oriented enterprises the value of develop new products, and will have their hearts in their whose export products in a year upgrade and replace old products mouths with every movement; but amounts to 70 percent or more of (known as "technologically ad• for a good acrobat who knows the value of their products for that vanced enterprises"). how to balance, tightrope walking year may pay enterprise income The document stipulates that is nothing. Since China's reform tax at half the current rate of tax. and open policy as well as its export enterprises and technologi• cultural and ideological i cally advanced enterprises with The provisions stress that endeavours are well-designed, foreign investment shall be exempt when foreign investors in export- China should, through gener• from payment to the state of all oriented enterprises and tech• ations of effort, be able to build subsidies to staff and workers, nologically advanced enterprises itself into a modernized power in except for contributions to labour remit abroad profits distributed to the East with advanced culture insurance funds, welfare costs and them by such enterprises, the and ideology and a high level of housing subsidies for Chinese staff amount remitted shall be exempt socialist democracy. • and workers. from income tax. The provisions fix rents and If the foreign investors reinvest I development fees for the above- the profits distributed to them by

OCTOBER 20. 1986 5 but we would also value the efforts by other patriotic forces and the Marshal Liu's Death 'A Great Loss' Taiwan people." arshal Liu Bocheng died on Revolution that overthrew the last "After Taiwan's return to the MOctober 7 in Beijing at the feudal dynasty of China, and later motherland," he said, "we would age of 94 after a prolonged illness. in the war against the northern take into consideration the The obituary issued jointly by warlords. In 1926, he joined the interests of those who contribute the Central Committee of the . to the reunification, the Taiwan Chinese Communist Party, the During the epic Long March he authorities included, as well as the Standing Committee of the was Chief of the General Staff of interests of the other patriotic National People's Congress, the the Central Military Commission. forces and the people." State Council and the Central Long respected as a great The General Secretary made Military Commission praised Liu strategist he played an outstand• these remarks at a meeting with as "a great fighter for the Chinese ing role in the War of Resistance Huang Shun.xin, 63, formerly a people, a fine member of the Against Japan (1937-45) and the Taiwan legislator, and 45-year-old Communist Party of China, one of War of Liberation (1946-49). Zhang Chunnan, a former the founders of the Chinese member of Taiwan's assembly, People's Liberation Army, and a After liberation he held the both of whom recently settled in great proletarian revolutionary posts of Commandant of the Beijing. and military scientist." Military Academy, Vice- Since 1979, Hu said, over 1,000 Chairman of the National De• It described Liu's death as "'a Taiwanese have come to live in fence Commission, Vice- great loss to the Party, the army the mainland together with their Chairman of the People's Revo• and the people." families. lutionary Military Commission Hu called his guests "noted Liu participated in the 1911 and other positions. patriots" and solicited their opinions and suggestions on China's reunification and the mainland's construction. their enterprises in order to j their foreign exchange surpluses Hu said much remains for establish or expand export \ and dificiencies among themselves China to do. China's economy is enterprises or technologically ; under the supervision of foreign recovering at a high speed and it is advanced enterprises for a period exchange control departments. It enjoying political unity and of operation of not less than five further provides that the agree• stability. However, he added, the years, they shall be refunded the ment, contract and ardcles of people's income is still low and total amount of enterprise income association of an enterprise with there remain many difficuUies. tax already paid on the invested foreign investment shall be Conscientious work is necessary portion after application to and examined and approved by the to overcome them. approval by the tax authorities. appropriate departments under the State Council, and that they The document also exempts must come to a decision on any from consolidated industrial and application within three months of New Satellite commercial tax export products the date of receipt of all Returns to Earth enterprises with foreign invest• documents. ment produce, except oil. finished hina successfully recovered its oil and other products subject to C eighth satellite on October 11, special state regulations. Hu Optimistic 30 years after the founding of The provisions call on the China's first space research people's governments at all levels On Reunification institute on October 8, 1956. to guarantee the autonomy of The land resource survey enterprises with foreign invest• hinese Communist Party Gen• satellite returned on schedule, and ment and to support them in C eral Secretary Hu Yaobang brought back with it valuable managing themselves in ac• expressed confidence in the scientific data. cordance with internationally reunification of China on October It was sent to the sky five days advanced scientific methods. Such 9. before, by a Long March II carrier enterprises may hire or dismiss "In our efforts for China's rocket, from Jiuquan Launching workers and staff as they see fit. j reunification," Hu said, "we look Centre, Northwest China, accord• The document also makes clear forward to the participation of the ing to an official concerned. that enterprises with foreign Taiwan authorities as the main "All the instruments on board investment may mutually adjust | partner in peaceful negotiafions. worked normally,"' he said, "and

6 BF.IJING REVIEW, NO. 42 it- returned to earth exactly as Committee, made these remarks planned." at a meeting with a delegation this is China's 19th satellite. from the Yugoslav People's Army China & the World The first was launched in 1970. led by Brando Mamul, federal • Deng: Foreign Invest• Previous ones have included secretary for national defence and ments Safe in China. While satellites for telecommunications admiral of the fleet, in Beijing on meeting Dr. An Wang, and broadcasting, and for scient• October 5. president of Wang Labora• ific experiments and research. "First of all," Hu said, tories of the United States, "China has launched and "relations between Eastern and on October X. Chinese leader recovered eight satellites with a Western Europe should be 100 percent success rate since Deng Xiaoping called for relaxed." more foreign invesinient in 1975," said Guirong, presi• Provided that the socialist dent of the Chinese Academy of Cliina. He said, "ioreign countries follow correct foreign Space Technology. entrepreneurs could not find policies, and on the condition that a safer investment than in He added that the satellites had their national defence is preserved, China." He urged overseas travelled in predetermined orbits relaxation will be possible, he mvestors not to worry about for three to five days and had all stated. China's repaying capability. returned on schedule. The general secretary told Min also hinted that some new Mamul that the two armies of • China Hopes for Arms photographic techniques had been China and Yugoslavia should Cuts Deal. A foreign used on this latest satellite. combine the defence of their own Ministry sptikesnian said on China will be working on countries with the work for peace. October 8 that China satellites of a new generation to "Now that we are confronted welcomes the meeting be• further the peaceful use of outer with the task of boosting our space, he added. tween the leatlers of the economy, we are determined to United States and the Soviet reduce our military expenditures," Union, and hopes thai they he added. will negotiate in good fiiilh Two Systems: To limit military expenditure, it and reach an agreement that Long Coexistence was necessary for the defence will involved drastic arms industries to produce some goods reductions without compro• hinese leader Hu Yaobang for civilian use, Hu said. mising the interests of any C said that the socialist coun• He added that China also other countries. ""Aiiention tries should try to relax their wishes to strengthen its co• should he paid to security in relations with the capitalist operation with friendly countries Asia as well a^ in Europe. countries and aim for long-term in , and hopes The nussiies deployed by the peaceful coexistence with them. the Chinese and Yugoslav armies United Slates and the Soviet Hu, General Secretary of the would find ways to co-opcralc Union in Asia should be Chinese Communist Party Central with each other in this field. • reduced sinniltaneously and in balance or be destroyed," he said. Shanghai Tries Stoci

OCTOBER 20, 1986 7 EVENTS/TRENDS

it have to be broken. more publicity should be given to between holders and enterprises, it In the view of Mr. Ying Junhui, help people, especially young is easy to mobilize shareholdeyf, of the Shanghai Trust and people, to a better understanding often the staff and workers ®f Investment Company, a sub• of shares. According to him, the enterprises, to bring their en• sidiary of the China Bank of most obvious difference is that thusiasm into full play in Industry and Commerce, what there is no cheating and no production and in exercising goes on in the stock exchange is trickery. It is now impossible to control over the management and quite acceptable, indeed a source speculate as state banks exercise development of their own com• of hope. effective control over the yield and panies. Enterprises that have On the day of the opening, transfer of stock. Most holders are issued stock hold an annual hundreds of people queued up ordinary people of small means. meeting of shareholders, at which early in the morning waiting to "The newspapers call it a stock they enjoy the right to supervise buy shares. Over the following market, but that's too big a word administrative affairs. Some hol• couple of days before National for it," complained Wang ders are even able to assist Day (Oct. I), more people were Yuchun, manager of the ex• enterprises to import advanced attracted by reports in the local change. Indeed, it is an exagger• equipment at favourable prices media. ation to use the word "market" for through their relatives abroad. The prices of shares are decided this tiny shop, which is only a So far, with the approval of the each day on a floating basis in small room of a dozen square People's Bank of China (Shanghai accordance with market con• metres opening onto the street. Branch), more than 1,400 enterpr• ditions. The present prices for What is more, there are only two ises, both industrial and commer• buying and selling a 50-yuan share kinds of shares on sale, that of the cial, have pooled funds in various float between 54 yuan and 54.60 Yanzhong Industrial Corporation ways, and the total raised exceeds yuan. Ying, young but self- and the other of the Feile 100 million yuan. Most of them confident, also told Beijing Review Acoustics Corporation. For a real just issue bonds within enterprises that 70 percent of stockbuyers are stock exchange, there needs to be themselves, ^and pay holders young people who know little sufficient stock issued, a conting• annual dividends. Twenty enterpr• about shares, but are very ent of qualified stock brokers, and ises have issued stock valued at 20 interested in them. The rest are old modern premises with advanced million yuan, and six of them, people who have personal know• communications and equipment, including the Yanzhong and Feile ledge of the stock exchange in the manager told Beijing Review. Corporations, have entrusted the Shanghai Trust and Investment Shanghai before the founding of Mr. Wang's stock exchange, Company to trade in shares on the People's Republic in 1949. belonging to the Jingan branch of their behalf. On the first day, an old man in the Shanghai Trust and Invest• his 80s sent his daughter to buy ment Company, was first commis• China's leaders have chosen 230 shares at 54.00 yuan each. "It sioned in 1984. Shanghai — because of the unique pays to buy shares," he told his "This is a major step in the position it holds in the daughter. Another man, aged 65, a reform of Shanghai's financial country's economic life, and its retired clerk of the Agricultural system; an experiment to match international reputation — as the Bank of China, withdrew all his the city's overall economic place to conduct a number of savings from the bank to buy 80 reform," Wang said. State and experiments in economic reform. shares. collective enterprises usually ob• This summer Premier Zhao Though young people have tain their investment funds from Ziyang called on enterprises in fewer savings and no experience, two sources, financial allocations Shanghai to take the lead in they seem to be just as from the state and loans from state transforming the existing fund- enthusiastic. "I have no knowled• banks. But banks in Shanghai raising system so that all their ge of shares, but I believe I won't started to encourage enterprises, capital is raised through the issue lose my money here. I want to buy mostly collective ones, to raise of stock and bonds. This is to be 10,000 yuan worth of shares. I funds in new ways. For example, one of several major economic and trust you, anyway. It is more they could issue bonds and shares financial reforms to be introduced profitable to put my money in to anybody. individuals or next year, according to officials of your place," a fruit dealer told Mr. economic entities, who wished to the Shanghai branch of the China Cai, a veteran financier working buy. That was the beginning of the Bank of Industry and Commerce. for the exchange shop. stock 'business. The aim is to State financial allocations made In Mr. Cai's opinion, there is a vitalize both enterprises and previously will become state stock, world of difference between the commercial bodies, and make the and the three other forms of stock newly opened stock exchange and best use of idle money. will be that of enterprises, that which existed decades ago in collectives and individuals. • old Shanghai. He believes that Since shares form a bond by Dal Gang

8 BEI.IING REVIEW. NO. 42 and Boyuquan at Yingkou in Liaoning has already been put on the agenda. In addition, China plans to build a number of satellite harbours along the coast to open marine shipping routes from Dalian in northeast China to Beihai in south China.

The 5,549-metre-long bridge across the Huanghe River near Zhengzhou was opened Motorways are to be built to traffic on September 30 as the longest highway bridge in China. WF! DEZHONG linking some busy cities and ports. They include the Beijing-Tianjin- Plans to Upgrade Mongolia to Shenyang, Liaoning, Tanggu and the Guangzhou- making railway communication Shenzhen-Zhuhai express high• Nation's Transport between northeast China and ways. Several more motor ways hina is to concentrate man• north China unimpeded. along coasts, rivers and railway Gpower , financial and material Coal from Shanxi will be carried arteries are to be built. resources on constructing seven along lines in the north, middle A plan has also been drawn up rail, road and water transport and south of the country to improve inland water transport. arteries to ease the strains on its eastwards to the coasts and also by It covers the dredging of the transportation system. sea to coastal areas. A number of Changjiang (Yangtze) River, and The seven routes, benefiting railways are already being cons• building and expanding harbours most parts of the country, will tructed or expanded, ihcluding the along it so that 10,000-ton ships open up new links between the east Datong-Qinhuangdao, Beijing- can reach Nanjing, 5,000-ton ships and west of the country, and Baotou, Shijiazhuang-Dezhou can go up the river to Wuhan and between north and south to and Jinan-Qingdao lines. 3,000-ton boats can reach Yibin in improve the country's transport• Along the 18,000-kilometre Sichuan Province. The Grand ation network. coastline from north to south Canal from Jining in Shandong One new railway is to link the China, a number of big ports and Province to in Zhejiang existing Beijing-Guangzhou and harbours are under construction. will be dredged and a new canal Tianjin-Pukou lines. It will start Dayao Bay in Dalian, the coal dug in Anhui to link the from Beijing in the north and run terminal at Qinhuangdao and Changjiang River with the Huaihe to Jiujiang in the south. Its middle Xidati at Lianyungang are among River. Another canal from Hunan section, from Shangqiu in Henan the largest. New harbour areas are to Guangxi will be dug in the Province to Fuyang in Anhui, will being selected in Shanghai. The future to link the Changjiang and be built first and gradually development of Meizhou Bay in Zhujiang (Pearl) rivers. • lengthened at both ends. The other railways will be lines from Xian to Ankang and from Xian to Baotou to bring coal from Shaanxi to Sichuan Province. The Jiaozuo- Zhicheng and Zhicheng-Liuzhou railways will also be overhauded. In the southwest, the main Zhuzhou-Guiyang, Kunming- Guiyang and Chengdu-Kunming railways will be electrified. New lines will be -built between Nanning and Kunming, and from Nanning to Beihai. In the northwest, the Lanzhou-Urumqi Railway will be extended north• wards to the Sino-Soviet border. A new line will be built from Baoji in Shaanxi to Zhongwei in Ningxia. New railways are to be built linking Qinhuangdao in Hebei and Goubangzi in Liaoning, and another from lining in Inner

OCTOBER 20. 1986 9 the possibilities of reaching US-SOVIET SUMMIT agreements on arms control, Disappointing Results After High Hopes regional conflicts and the ob• servance of anti-ballistic missile The two-day meeting between US President Reagan and treaty. Both sides made comprom• ises and also came up with Soviet leader Gorbachev failed to reach any concrete proposals of their own. However, agreement. This once again proves that the defence of neither yielded an inch on the Star world peace rests with the peoples of all countries and not Wars programme. only with the superpowers. In the first three rounds of the summit talks the two sides moved closer on the issues of medium- range missiles, the reduction of strategic nuclear weapons, regi• onal conflicts, human rights and he two-day summit between weaponry could gain a first-strike bilateral relations. The Soviet T US President Ronald Reagan capability. Union proposed that both sides and Soviet leader Mikhail Gorba• Of course, the dispute over the reduce strategic offensive weapons chev ended in Reykjavik, Iceland, Star Wars programme is only one by one half, and the United States on October 12 with no specific aspect of the overall confrontation was ready to agree to this. agreement finalized and no exact between the two superpowers. However, in the last round of the date fixed for a full-scale summit, Another reason for the failure of talks the atmosphere worsened due to be held in Washington by the talks is that the summit sharply as a result of the dispute the end of this year. meeting was arranged in a hurry, over the Star Wars programme. Speaking to US servicemen near and the two leaders went to the Observers believe that although Reykjavik, Reagan said he had meeting with domestic political this meeting failed, it does not made the Soviet leader a historic purposes in mind. Reagan hoped a mean that relations between offer on arms control which successful suinmit would give a Washington and Moscow will Gorbachev rejected. Gorbachev, boost to the Republican campaign necessarily deteriorate. Both Gor• addressing a news conference in in the mid-term US elections in bachev and US Secretary of State Reykjavik, said the US leader had November. Gorbachev wanted to George Shultz said it was not the come to the meeting with empty bring the costly arms race under end of the road. "We'll return to hands and the talks had collapsed. control so that the Soviet Union Geneva and I suppose they will," Reports say the summit failed can devote more attention to Shultz said, while Gorbachev because of a dispute over the US domestic economic development. indicated that "this meeting has Star Wars programme to build a In the two months before the brought us to the point where space-based anti-missile shield. meeting in Iceland, the United accords are possible." Gorbachev proposed "strengthen• Slates and te Soviet Union held a • ing" the 1972 Anti-Ballistic scries of consultations to explore by Chang Qing Missile Treaty over a 10-year period while offering to accept US "laboratory testing" for the Star Wars programme. But Reagan sovnn UNION insisted tests must be carried out in space and not only in the laboratory. Attitude Towards EEC Clianges Why are the two superpowers so serious about the Star Wars The change in the Soviet attitude towards the European programme? Because both the Economic Community reflects a change in its political United States and the Soviet approach to the EEC. Union are saturated with nuclear weapons, and the relative strategic balance that has existed between xperts from the European which they discussed the establish• the two countries since the 1970s EEconomic Community (EEC) ment of official relations between will not be upset by any and the Council for Mutual Eco• the two organizations. Afterwards improvements in the quality or nomic Assistance (COMECON) the EEC in a statement said that quantity of their strategic arms. held a three-day closed-door "the meeting was of an ex• However, whoever masters space meeting in Geneva last month at ploratory character and had the

10 BL-UING REVIEW, NO. 42 aim of discussing ways and means It is also important for tries and the EEC has been of establishing official relations Gorbachev to strengthen steadily increasing. Between 1970 between the EEC and economic co-operation with Wes• and 1984 the total value of trade COMECON." tern Europe in order to help him between the two increased 7.2 These talks were initiated by realize his strategy for the rapid times. Three-quarters of COMECON, and observers noted development and rejuvenation of Moscow's exports to the West go they reflect a fundamental change the.Soviet economy. to the EEC. During this same in Soviet attitude towards the Promoting pan-European co• period Soviet exports to the EEC EEC. operation, while making use of the increased 14.5 times, making it the When the EEC was established strategic differences between the EEC's fourth largest trading in 1958, Moscow first condemned United States and Western partner, after the United States, it and then consistently refused to Europe to sow discord between Saudi Arabia and Japan. Trade recognize it. But in the latter part them, is the Soviet Union's between the EEC and of the Brezhnev era Soviet consistent policy. To use West COMECON totalled US$43.9 relations with the EEC began to European influence to constrain billion last year, half of it with the thaw. COMECON and the EEC the United States is also Soviet Soviet Union. In 1970 the EEC started a dialogue in 1975. policy. signed 350 contracts with East However, as a protest against the COMECON cannot provide European countries; by the early Soviet invasion of Afghanistan the the East European countries with 1980s the number was more than EEC suspended discussions with all the funds, energy and raw 2,000. COMECON in March 1980. materials that they need, so the The EEC considers the latter have a strong wish to COMECON decision to establish The EEC has stated that it establish some ties with the official links with it a victory, as it cannot recognize COMECON as EEC — not only to increase their will effectively weaken Soviet an equal in trade relations because exports to Common Market control and influence over the it lacks a common external tariff, a countries but to gain access to East European countries through commercial policy and other finance and advanced technology its direct bilateral relations with feaures of a full-fledged trading from Western Europe. This has these countries. entity. COMECON unexpectedly influenced the Soviet Union, too. handed a document to the EEC How relations between the EEC last year proposing that the two Although. Moscow has not and COMECON develop in the sides establish formal relations. recognized the EEC in the past, future will be worth watching. • Then on June 14 this year the trade between COMECON coun- by Chang Qing secretary-general of COMECON sent a letter to the chairman of the EEC Executive Commission re• questing that both sides hold discussions on the establishment of official relations and closer co• IMF MEETING operation. The EEC responded positively to it. This led to the recent three-day meeting in Much Talk, Little Progress Geneva. It is for strategic reasons that The recent annual meeting of the IMF and the World Soviet leader Mikhail Gorbachev Bank, which concentrated on the trade imbalances has ohanged his attitude towards among developed countries and the debt problems of the the EEC. The existence of the EEC developing countries, failed to produce any encouraging is an objective fact that the Soviet Union must come to terms with. It results. is an economic and political entity having official ties with more than 100 countries in the world. In he 1986 annual meeting of the economy is the huge trade recent years in particular the EEC T International Monetary Fund imbalances among the leading has made big strides, despite the (IMF) and its sister organization, industrial nations, mainly between different interests and the contrad• the World Bank, ended in New the United States, Japan and West ictions within it. There would be York on October 3. Germany. The US has been little point in the Soviet Union bedevilled by a USS130 billion developing relations with Western One of the long-standing issues deficit on its current account, Europe in the political field while that has been a source of while Japan will have a surplus on continuing to disregard the EEC. instability and tension in the world its current account of US$83

OCTOBER 20. 1986 !I NATIONAL billion this year against USS49 cannot be cut any more. The commodities, including oil, on the billion in 1985, and Germany one continual rise of the yen against world market, and increasing of US$31 billion, up from US$13 the dollar is already posing a international protectionism. Ano• billion last year. serious challenge to Japan's ther factor was the liquidity of In an attempt to resolve this economy. capital flows in the third world. problem the United States has It is obvious that the huge US In his address to the closing been insisting that its main trading trade deficit can be reduced only session of the four-day meeting, partners increase demand at home through the joint efforts of all Jacques de Carosiere, managing so that they absorb more imports countries concerned. As Mr. director of the IMF, said, from the US and hence reduce its Baker put it, "We must increase "Industrial countries should assist trade deficit. So long as they refuse productivity, boost private sav• in forming a debt strategy" in the to do so, the US will continue to ings and orient our business context of sustained growth in the lower the dollar, making it more culture towards exports. indebted nations by abolishing difficult for them to sell their Moreover, these steps will not protectionism. The active part• products on the -world market. correct the trade imbalance unless icipation of commercial banks was "Surplus nations, in particular, our major trading partners also also important. must spur domestic demand to adjust their economies and grow faster than gross national attitudes." Mexico, the test case of the product," declared US Treasury Baker Plan, which calls for banks Secretary James Baker. "Some of The debt problem of the to lend more and for debtor these countries appear to be taking developing countries, which is nations to adopt growth-oriented steps to enhance growth, although becoming a major brake on the reforms, signed an agreement in not as rapidly as the trade development of the world principle with creditor banks for a imbalances may necessitate." economy, was also discussed. It US$6 billion loan. This was seen was generally agreed that the debt as representing at least some light However, Japan and West problem was caused by the drastic at the end of the debt tunnel. • Germany seem to be not as co• reductions in the prices of primary by She Duanzhi operative as might be expected. The US has made it clear that it thinks West Germany has a greater responsibility to act than Japan, despite the smaller size of ISRAEL its surplus. Concerned about the sustainability of growth in West After the Change- Over Germany, the US has suggested it could do more to liberalize its The Switch of premiers in Israel is expected to influence labour and financial markets and accelerate the pace of tax reform, peace moves in the Middle East as well as bring a change in addition to cutting interest of style to Israel's diplomacy. rates. "But they have not been as responsive as we would like," said Baker. West Germany rejected the he change-over of jobs between tension between Israel and Egypt demand to lower interest rates and TPrime Minister Shimon Peres and fourth, to find a new way to increase domestic demand, ex• and Foreign Minister Yitzhak settle the conflict between the two plaining that this would refuel Shamir took place smoothly on countries that had lasted for inflation. While ensuring that the October 10 in accordance with an nearly 40 years. economic situation in West agreement signed by the Labour Germany improves steadily, with Party and the Likud bloc in 1984. Looking back over his two real domestic demand expected to Peres, when announcing his years, it can be said that Peres has grow by 4.5 percent in 1986, Bonn resignation, said that he was very made some progress. Most has cautioned that "the economic proud of what he had achieved for noticeable have been the reduction thinking of the US and West Israel's economy and in improving of the rate of inflation from 800 Germany is not identical." relations with neighbouring coun• percent to 25 percent and the tries. When he took office two return to negotiations with Egypt. Japan, the largest surplus years ago, Peres set four goals for Peres has also said that his country, also under pressure from himself: first, to withdraw Israeli Labour Party is willing to discuss the US to expand its domestic troops from Lebanon; second, to territorial concessions to Jordan demand, argues that its interest stabilize the economy and cut the in return for a peace settlement. rates have been cut to the linHt and rate of inflation; third, to relax He has made overtures to Jordan

12 BEIJING REVIEW. NO. 42 one of the main planks of his ation (PLO) as a negotiating With the change of power, fiexi- foreign policy, along with a partner. This stubbornness has bility will give way to rigidity. This campaign to foster moderate prevented any substantial head• is certain to slow down the peace Palestinian leadership on the West way being made with any of Peres' process in the Middle East. • Bank. During his last two years in many initiatives. by Zhu Jiefel office, Peres insisted that diplo• macy was the only way to avert war with neighbouring Arabs. He held summit meetings with LIBYA King Hassan II of Morocco and President Mubarak of Egypt. He established diplomatic relations with Spain and the Ivory Coast, Why the Divorce From Fiat ? renewed links with Cameroon, and started a dialogue with the After 10 years of partnership. Libya has parted company Soviet Union. All this has laid a good foundation for his campaign at last with Fiat as a major shareholder in this largest for the premiership in the next Italian private company. general election.

What lies ahead of Israel now en years ago, the Fiat motor In April this year, the US Yitzhak Shamir has become Prime Tcompany, the largest private authorities banned the import of Minister is uncertain. As leader of concern in Italy,, found itself in bulldozers valued at 12 billion lira, the hardline Likud bloc, Shamir is deep fmacial trouble from the with the obvious intention of reluctant to continue with Peres' impact of the world oil crisis, as putting pressure on Fiat. In foreign policies, though he has did all other European car addition Fiat is very interested in promised to maintain the momen• manufactures. In November 1976, participating in the US Star Wars tum of the peace process in the after 18 months of negotiations, programme. But if Libya had not Middle East. Libya agreed to purchase 9.5 given up its stake in Fiat, it is Shamir has already rejected the percent of Fiat's shares at a cost of unimaginable that the US could holding of an international US$400 millions, making it one of agree to Fiat taking part. conference to resolve the .Middle the principal stockholders. East conflict as had been agreed at Libya's marriage with Fiat At first Libya refused to sell its the summit meeting in Alexandria attracted much attention in shares, but in mid-August it last month between Peres and Europe at the time. suggested that negotiations be Mubarak. Moreover, he has held on condition they were kept Ten years later, however. Fiat declared his intention to accelerate secret. Only 20 days later, on has overcome its difficulities and Jewish settlement on the Israel- September 3, the two sides agreed things are getting better and better occupied West Bank and in the that 10 percent of Libya's shares, for it. Since 1981, its profits have Gaza strip, a move that is certain the value of which has increased to increased each year, its productive to arouse Arab hostility. US$3 billions, will be bought by efficiency and competitive abilities the Agnelli family holding com• The Likud bloc views the Arab have improved, and the prices of pany which controls Fiat and the lands captured by Israel as an its shares have risen day by day. remainder sold on the open integral part of the country. It has This year has been the best for market by Deutsche Bank and the consistently refused to trade land Fiat. In the first half of the year its Bank of Italy. for peace, and the more militant income increased by 10 percent Why has Libya agreed to part elements in the bloc have over the same period last year. company with Fiat? Because with advocated annexing the West This favourable turn in its the decline in oil prices last year, Bank of the Jordan river, where fortunes was one of the factors Libya's oil revenues have fallen by some 800,000 Palestinians live. contributing to the break with US$10 million a day. The "We will walk the tested path, Libya. But a more important reduction in their oil income is without concessions, without factor was Fiat's relations with the also causing oil-producing coun• giving up on the main points," United States. tries to spend their oil dollars on Shamir recently told activists of Because of the tense situation in developing their oil refining his right-wing Likud bloc. the Mediterranean and the industry, or investing in smaller Yet Shamir and Peres have one deteriorating relations betweem companies where they can hold a thing in common: both have Libya and the US, Libya became controlling percentage of shares. categorically refused to consider an obstacle to Fiat's plans to • the Palestine iib&ration Organis• «xpand sales in the United States. byWangYanlin

OCTOBER 20, 1986 13 r '—^ ^ ^—

I SPECIAL REPORT I Buttons Work Miracles in Wenzhou Great historic transformations are often preceded by seemingly insignificant events. The booming cottage industry in buttons and other small, cheap commodities in Wenzhou, ZheJiang Province, is one of the signs of a new economic upsurge in China's countryside to follow the one sparked by the household responsibility system.

by Our Correspondents Wang Youfen and Li Ning

enzhou, a municipalit)- in• local economic buildup accounted blem that accounts for much of W cluding a city of that name for only 1 percent of the total spent China's poverty: too many people and nine surrounding counties, on the province, despite its area for the farmland available. The has become a new inecca for those being 11 percent of the province average area of farmland per interested in the current economic and its population 15 percent of person in Wenzhou is only 0.45 imi reforms. In the last couple of the province's total. It is little (one mu=\i\5 hectare), among years, thousands upon thousands wonder that the local economy has the smallest in the country. Two- of poeple from all over China have remained relatively stagnant. thirds of the workers in the flocked to see its booming Wenzhou exemplifies the pro• countryside were considered sur- household industries, fast growing co-operative factories and private enterprises, and the numerous housing projects going up in the old and new towns. Premier Zhao Ziyang. Vice- Premier Wan Li and several Slate Councillors were among the visitors, as were Party and government officials from various localities and levels, economists, sociologists, town planners, jour• nalists, professors and students. Newspapers and journals have carried numerous reports on the advantages and problems of the •'Wenzhou model" in China's rural economy. "Small commod• ities with big sales," now a media catchphrase, is described by Fei I Xiaotong, the famous sociologist, as the major feature of the "Wenzhou model." Wenzhou is opposite Taiwan across the Taiwan Strait (a 14- hour trip by speedboat). It was the "frontline" in the 1950s when the i air around the strait was tense. It was the hottest spot in the country during the "cultural revolution" in the 1960s when various factions of the Red Guards held pitched battles with guns and cannon. As a result, during 37 years since liberation, state investment in

14 BEIJING REVIEW, NO. 42 WENZHOU MIRACLE plus. Many urban people were standards in the rural areas overall Parly committee, told us proudly also unemployed. still remain very low. as he received us in his newly built According to Jin Guowen, The "Wenzhou model" pro• four-story office building. The editor-in-chief of Wenzhou Daily, vides a possible way of further reception room was furnished in the first couple of years after the dealing with surplus labour, by with about 20 high-backed sofas downfall of the gang of four in using funds from all the families to and elegant lily-shaped pendent 1976. hundreds of people went to develop household industry and lamps — signs of wealth in the the Wenzhou municipal govern• other trades. It is an extention of small town. ment everyday to demand jobs. the household responsibility sys• "We want to work," "We want to tem beyond agriculture. live" was drawn over walls of According to 1985 statistics, buildings in the streets. In Jin.Kiang about 107,000 household work• Town in Cangnan County, people shops and joint household fac• y4 small town of only 660 who had no means of livelihood tories have been set up in the area. families has become Asia's were reduced to snatching food Most of the joint household biggest button trading from local government office factories are classified as small dining hall. private partnerships, the rest centre. Its development has operating as co-operative enterpr• started a boom cycle. ises. Usually these joint household factories employ fewer than 10 people but some of the larger The town has only 660 families, The "Wenzhoumodel"is partnerships employ a few dozen but also the biggest button a new way of dealing with or more people. There are now wholesale market in Asia. Annual over 400.000 people engaged in the surplus labour in China's trade volume averages 80 million co-operatives and the yuan. "Everyday we receive 2,000 countryside. It extends the partnerships. household responsibility to 3.000 visitors," said Xia. "Most Another 400,000 labourers or of them coming for business." In system beyond agriculture. more now work in commerce, the first half of this year alone, 71 transport, information, catering officials above the level of minister services and many have left the or governor were among the area to play their trade elsewhere. Since 1979. China's rural areas visitors. A good number of the country's have practised' the household We visited the new trading tailors, barbers and cooks come responsibility system which links building with its 650 stalls all from Zhejiang Province and some remuneration to output. It is selling buttons. The old shopping of them from Wenzhou. They are widely recognized that the system centre was too small to meet the known as the three professional is successful in promoting farmers' demands of expanding business, skills: the scissors, the razors and enthusiasm and in increasing so the farmers in the town and in the kitchen knives. output. .However, it has not the 25 surrounding villages provided a solution to the problem Today, unemployment is no collected 300,000 yuan to build of surplus rural labour. In recent longer a problem in Wenzhou this new one double the size of the years a great number of these (except in the poor mountainous old. Other products available labourers have moved into areas where many farm workers include zips, watchstraps, gilt township industries, commerce, are still considered surplus). The earrings and cosmetics. living standards have greatly transport and other collectively Behind most of the stalls are improved with an average income owned enterprises where such local women. Typically: the per head of 447 yuan in 1985, an things were well established and husband or father is in charge of increase of 150 percent over that in the public funds adequate. This the button supply, and the wife or 1980. trend is typified by the southern daughter keeps the stall. rural area of Province and Of the nine settlements we We were told that there were 12 is therefore known as the visited in Wenzhou, the town of categories of buttons incorporat• "southern Jiangsu model." Qiaotou in 30 ing over 1,400 varieties in the However, such a transfer is still kilometres north of Wenzhou city, building. It would take only a a long way off for most of the was the smallest, but also the most couple of hours to collect some of country. Only 67 million people, typical. all the types of buttons here; in about one-tlfth of all labourers, "You can't find our little town Shanghai one would expect to have thus far been transferred to on the map, but it is well known spend almost a week doing the non-farming trades. So labour across the country," Xia Ruizhou, same. The stalls here have productivity and the living the Party secretary of the Qiaotou established steady business with

OCTOBER 20, 1986 15 Emm

in Tianjin or Beijing requires. He purchases them the next day and delivers them immediately. Wang's experience was copied quickly in Qiaotou. Before long, special counters selling Qiaotou buttons were set up in the cities of Shenyang and Harbin. In Qiaotou, no one can remember who first initiated the button business. Various romantic legends are already circulating among the people but one thing is certain: a few years ago somebody brought some buttons from outside and they sold well in the town. More and more button stalls mushroomed into the big market there is today. Since 1981. Qiaotou has taken the logical step of producing buttons itself. The town, in co• operation with the nearby villages, runs 130 workshops, where 2,000 workers make buttons. Locally made buttons now make up 20 percent of the total sales in the Qiaotou market. Seventy clothing factories and two zip factories have also been set up in the town.

he farmer who was once so easily fooled and uninformed is now accumulating business acumen.

A glimpse at tlie button marl

16 BEIJING REVIEW, NO. 42 WENZHOU MIRACLE

uninformed is now accumulating business acumen. According to the local author• ities' estimate the number of families who own a new house like the Chens' account for more than 90 percent of the total. After visiting Qiaotou, we went to see four towns — Jingxiang, Qianku, Yishan, Longgang and their rural areas in Cangnan county, on the southern border of Zhejiang Province. The first three are the most impressive of Wenzhou's ten major markets, while Longgang is a new town whose rapid expansion attracted nationwide attention. Cangnan county has an area of 1,261 square kilometres with a A household button factory in Qiaotou. population of one million. While there, we made sure also to visit a us around their new three-story They testifies to how important remote mountainous district house. Each floor has three big communications and information which is very poor and backward. rooms and one small one. The is for people like Chen Mingnan's Jingxiang town has a popul• furniture and decorations in the family who own a clothes shop ation of less than 20,000. but is rooms were little different from and a button stall in the trading famous for its badges, placards what one sees in well-off homes in building. Another surprise was on and plastic film products. In 1977, the big cities. But there were some Chen's desk there were a pamphlet when residents of the town heard surprises. We found a jar of from the national lawyer's cor• that the system of college Nescafe on Chen's wife's tea case respondence teaching centre, a enrolment by examination was and two telephones. (This is where copy of the civil law and a copy of being resumed after a long even in Beijing, 90 percent of the economic law. The farmers interruption by the "cultural families do not have phones.) who was once so easily fooled and revolution," at once they grasped

New apartment buildings have repiaced the slums in Qiaotou.

OCTOBER 20, 1986 17 the opportunity. With the 270,000 new college students in mind, they designed some beautiful college identity badges and sent them to each college inviting orders. It is estimated that by now. over half the primary school, middle school and university students in China, tens of millions of them, are wearing identity badges produced by Jingxiang town.

No oted for its small- scale production with co-operation on an extensive scale, Zheng Xiaochun and her children. GANG WANG Jingxiang's cottage industry is much like the farmer, has been dubbed the alion and publishes the small Swiss household clock and "authority on information." He newspaper. Jingxiang Information, subscribes to nearly 100 new• When a provincial sports event watch industry. spapers, and employs five people was just being prepared, Jingxiang to help gather and classify the v\as sending samples of their information to help keep Jingx• badges and eliciting orders. Quickly .lingxiang's people iang in touch with the market. The It seems Jingxiang's household began to see information as town also established a scientific industry is much like the Swiss "invisible wealth." Xu Fangshu, a and economic information associ- household clock industry, where clocks and watches are made in every family's workshop. Aoiiang R. Jingxiang's household industry is noted for its "small-scale produc• tion with large-scale co• operation." For example the aluminium badge undergoes more than 10 production stages includ• ing design, model production, raw material processing, pin produc• tion and assembly. Each stage has been undertaken by a group of special household factories, so each badge has circulated around many households before it is complete.

Unlike Jingxiang town, Qianku is a market town, with housefold industry thriving in its neighbour• ing areas. According to the Cangnan County records, Qianku's history goes back to the period of the Five Dynasties and Ten States, when Liu (852- 932), the King of Wuyue established an office here to collect taxes on tea and salt. That is why

18 Bi;ijiNG Rr:virw, NO. 42 WENZHOU MIRACLE

the town was called Qianku: Qian's coffer in Chinese, j With the household industry j developing in Qianku's rural area, the living standards of the people have risen year by year. Now Qianku has become a large comprehensive market selling small everyday articles, cloth, fashionable dresses and food. One can buy there things ranging from Shanghai textiles and Guangdong electrical equipment, to edible fungus from Guangxi, and litchis and xianggu mushroom from Fujian Province. In the town there are about 500 passenger craft carrying some 50,000 passengers a day. Many are local farmers and wholesale business• men from Zhejiang and Fujian Provinces. The residents in Qianku town number 12,000; one- quarter are engaged in commerce.

When we visited Qianku, we lived in a family hotel run by Zheng Xiaochun. Her husband households in Yishan town. It thing factory. After respinning 8 works in the local government introduced the name of Yishan and reweaving, various clothes | office and heads the town's into the national consciousness. and carpets can be made. They • planning department. Their house What these households did was are low in price (a piece of child's g faces a newly built street. The one- unprecedented in China. As well clothing is only 0.3 to 0,5 yuan) as kilometre street is flanked on both they do not need to compete for sides by three-storey apartment the material with the state-owned buildings recently built by the factory, so they sell well in the residents themselves. They usually border district and poor mountai• use their ground floor as a shop. nous areas. Annual sales volume Salesmen for the in the product has reached 200 Zheng Xiabchun runs a hard• million items, representing an item ware store which also sells recycled clothes empire of such clothing for two out of electrical home appliances. She travel as far as Tibet, Sino- every three children in the lets a room on the first floor as an , Burmese and Sino-Soviet country. Needless to say the office, and two rooms on the households producing these items second floor she hires out to borders. soon saw a rapid rise in their travellers. She is friendly with her incomes. guests, and has all the arrange• ment properly made. Sometimes Yishan's residents can identify m as inviting the local media, one of us would miss lunch to take the people who contribuied to the £ correspondents from Beijing, photographs, she twice invited growth of the industry. Sun Acha Shanghai and far off provinces him to have lunch with her family. was in her 60's when she improved were also brought in. These When we left, her husband showed the spinning machine and was the households then introduced their us off at the dock. Judging by first to spin remnants into the products to the nation through the conversations with her about her regenerative polyacrylic fibre. She media themselves. died in 1980. In a tribute to her, the ' business, we estimate her family's several liundred •.pmning ma• annual income at about 10,000 What Yislian town and its rural chines in the town slopped for one yuan, a college professor's income area were publicizing was their day. ; for three years. regenerative polyacrylic fibre products. These products are I'here are S,500 people in this » Last February, a press confer• made out of leftovers from the area trading in raw materials and J ence was held by 21 specialized man-made fibre plant and clo• local goods. They work away from H

OCTOBER 20, 1986 young man asked what we would cement road to protect it from like to talk with the town's leader frostbite. The masses also collec• about. ted money to buy saplings from Longgang is a seaport at the the government to plant them in mouth of Aojiang River. In the front of their doors. past there were only five villages "The enclosure movement that here. Given the favourable geo• came before industrialization in graphical position and the poten• some capitalist countries pushed tial of the harbour, Cangnan urban construction and industrial county authority decided in 1982 development forward, but as a to establish a town here. In result many farmers were made November 1983, the proposal was destitute and had to go into the approved and five months later towns out of desparation," Chen Longgang town established its Dingmo, secretary of the town's Party committee said. "We people's government. arranged for farmers to move in Longgang town gladly. Most of them are local and have become prosperous in recent years." Chen also told us that the Chen Shangyou. GANG WANG in contrast to the farmers have already begun to desperate farmers of the undergo some of the changes that a modern, urban life entails: they enclosure movement, pay more attention to the time, home year after year, travelling Chinese farmers move into hygiene, to cultural activities and the length and breadth of the towns gladly. to their children's education. country as far as the Sino-Burma In Wenzhou, some misgivings iiiid Sino-Soviet borders. were expressed about Longgang's At Yishan's market, we saw development. People were con• young salesmen purchasing In a couple of years, Longgang cerned that most settlers used their I clothes. One, Chen Shangyou, 21, town has attracted 4,000 people money to build houses while has been doing this for three years and organizations from three neglecting investment in product- and has travelled to many provinces and eight counties provinces including the Inner (including Cangnan) to invest in Mongolia Autonomous Region, Longgang. These include spec• A girl in Dingbao Viilage. Xinjiang L'ygur Autonomous ialized households, workers, G. NG WANG Region and Sichuan Province. He cadres, scientists and more than told us that on a good trip he could 100 small enterprises and earn 2.000 to 3,000 yuan. economic associations. The total ! In the Wenzhou area, there are investment reached nearly 160 100,000 people like Chen. They million yuan (US$43 million). The spread both commodities and total area allocated to capital information. It is interesting to construction is 820,000 square note that even in Lhasa, the metres. Three-fifths have been I capital of the Tibet Autonomous completed. 23 kilometres of I Region, small traders from roadway have also been built. j \Ven.-?hou account for one-quarter Longgang had little money and ! of the city's 2,000 retailers. so had to rely on the masses to build the public utilities. Rates are Longgang town strikes the collected on the bases of housing, visitor immediately as being and enough money was collected diCfcrent from other places. It this way to build roads, tap water starts with the reception. In other installation and drains in the towns, we nrst heard an residential areas. In the early introduction from the local leader winter of 1984, when a new road : and then were taken on our visit. was built in front of every This time our visil began with a resident's door, the residents were I fifteen minutes video entitled so proud of it that in the evening Longgang's Revelations. Then a they put straw on the new

20 BEIJING REVIEW, NO. 42 WENZHOU MIRACLE ivc construction. It was suggested that the farmers were afraid of 7^ changes in the present policy, so they channelled their incomes into the safest outlets. That may be true, but Longgang's own cons• truction goals have been met. and what this tells of the Chinese farmers" potential should not be overlooked. After driving about 40 kilo• metres east of the Cangnan county town, climbing a mountain and walking several kilometres, we arrived at Dingbao village in Chixi district. Dingbao is hardly a village; the people live dispersed over a large area. Most villagers have to climb over a few mountain tops to reach each other. Lei Bizu, 48, took us into his thatched cottage. There are ten in Li Laizhu(middle) and his two deputy managers. his family including his wife, his family had more income and town had gone back to their poor mother who is over 85 and seven slightly easier circumstances. mountainous areas, and their children. They cultivate 4.5 mu of When we visited Cangnan skills had helped household sweet potatoes and rice. They also county town, Zhou Fangquan, industry in their home villages. raise a pig. Fheir yearly average secretary of the county Party Some mountain farmers had income each is only 50 yuan which committee, told us that the moved to the prosperous areas to is not enough to feed them. population in the prosperous help local farmers with their areas accounted for only half of "responsibility fields."" the county's population. Their Using the greater tax revenue average per-capita income last from prosperous areas, the county 5 towns thrive, people year was about 400 yuan. In Chixi government has been increasing district, the annual average per- in rural pockets of poverty its interest-free loans in the poor capila income was only 139 yuan. areas. The money is used to buy see hope. The very poorest households such cows,.raise pigs, sheep and rabbits, as Lei Bizu's income was even plant fruit trees and Chinese lower. medicinal plants. More import• antly, part of the highway from Lei's wife opened the cupboard Liu Huabiao, head of the the county town to the mountai• for us. We saw a little fish soup in a general office of the agricultural nous areas has been opened to bowl and some pickled cabbage in committee of Wenzhou municipal traffic, and many good cadres another; the salt pot was empty. In people's government, told us that have been sent to work there. By order to live, they have had to there were more than 1.2 million the time we had visited Chixi borrow money. In the room, there households in Wenzhou. Of them, district, the county government was hardly anything which one one third were described as well- sent 12 university students who could call real furniture. In front off. In 1985 their annual average had at least two years working of the old lady's bed there hung a per-household income was 5,000 experience to Chixi to help the pathetic mosquito net, many bits yuan. Another one third had poor households. of old cloth stitched together. enough to eat and wear. Besides We visited a few other these two groups the last third "Our 'Central Committee" has households in the "'village." They lived mainly in the mountainous seven people, including two were less wretched, but still very areas and their life was difficult. deputy managers and myself. We poor. There was only one Of them, 80,000 households had to don't have to ask for the approval household in the "village" that rely on the state's relief and lived of any higher official in making had learnt how to grow by borrowing. our decisions," said Li Laizhu, mushrooms as well as the usual Liu added that some hired manager of a polyvinyl chloride lea, red bayberry and pigs. This labourers worked in .lingxiang yarn factory in a village near the

OCTOBER 20. 1986 21 town of Qianku, Cangnan Li has adopted a democratic responsible to the management, County. policy. There is a monthly meeting and each group is rewarded Li's factory was built in 1982 of all the workers, who at the same according to its performance. with a fund of ¥60,000 raised time hold shares, to hear briefings Then the reward is distributed on production and management. within the group according to Major policy decisions, such as workpoints. expansion of production, distri• Li, for many years Party bution of profits, and the like, secretary in the village, recently have to be discussed and approved won the title "Model Manager" Co_ 0-operative factories by all the workers. awarded by Zhejiang Province. He is nearly 50 now and has expressed are doing well, with serious The number of shares each his wish to retire. When asked attempts at democratic worker can buy is commensurate privately about who he thought management and welfare with his responsibility in the should succeed him, he said: factory. This year the factory sold "Both deputy managers and for fellow-villagers. 55 shares at ¥2,000 each. another young man are good Purchases range from three shares candidates. However, it has to be bought by one person to one share voted on by all the workers." bought by four people. In addition We were then introduced to the to the two percent monthly other six members of the from about a hundred villagers. interest, each share will attract a Committee. Talking about the As a result of continued dividend of ¥ 1,000 at the end of factory's future plans, Li ex• investment, the factory now has the year, provided the profit rate pressed his concern about weak• assets of ¥390,000 and 157 remains at the 1985 level. nesses in their present equipment. employees. The factory makes The Committee has decided to get yarn of various colours from Interestingly, this factory still some carding and twisting ma• polyvinyl chloride. Though not uses the workpoint system previ• chines. This will make it possible quite as warm as wool, the price of ously used in collective farming. to raise annual output value from this kind of yarn is only one eighth The number of workpoints one 3 million yuan to 4.5 million yuan. that of wool; it has therefore earns depends upon his job and "We haven't agreed on a more become very popular among the skill, and it is adjustable after a ambitious plan yet, but personally less well-off people in the certain period. Leaders of each of I'd like to see constant expansion countryside. the three shift groups are in the factory to where each of the 550 families in the village have at least one person working in it." Last year's average income of the workers was ¥120 a month, A polyvinyl chloride workshop. which is not bad for this village. Li has the support of Li Tongchang, a 36-year-old deputy manager. The other deputy manager, 43-year-old Li Laixing, would prefer a different approach: "It is quite a challenge running a big factory. If you don't have the right management, you will fail sooner or later. I propose our factory help develop the cottage industries in the village." He is thinking of the potential of the knitting industry in the village. A few families have already made good profit from it. But they only use one fifth of the yarn the factory turns out. All the rest of the business is taken by people from nearby areas.

22 BEIJING REVIEW. NO. 42 WENZHOU MIRACLE

i Li Laixing used to be a local yet half the price of a new high school maths teacher. He machine. Zhang worked hard for served as a consultant to Li Laizhu it though. For four and a half when the factory was first started months he never got home before four years ago. It was not easy for midnight. The factory's materials the factory to prise him away from come from ship-breaking yards in the school, and not long ago he and around Wenzhou. It turns the I was sent to study business scrap into various kinds of steel management at Tongji University for construction which have sold in Shanghai for three months. well. Last year the market price of With their knowledge and skills, steel was ¥ 2,000 per ton. After people like Li Laixing are much Zhang started his business in needed in the Wenzhou country• Zhang Liecheng. GANG WANG October the price came down to side. One factory manager told me ¥ 1,700 per ton. Still, in the last six Xiang is well known among his that he once got a contract to print months alone the factory has colleagues for his conscientious• bags. Since they did not have made two million yuan, ¥ 250,000 ness. He was an accountant last anybody to proofread the type, of which was profit. year and in charge of only one "Made in China"' became "Made workshop in the factory. He made China." That cost him several far more profit than had been thousand yuan. expected. In accordance with his For school teachers, who get contract, he was awarded paid less than countryside factory ¥ 10,000, but he donated it all to It may take some years of workers, these factories have the factory for re-investment. His experimentation to work become a magnet. There is now a. managerial abilities and his spirit out specific policies on brain drain from the schools, of dedication won him the trust of weakening an already fragile the workforce, and he was chosen bigger private enterprises. educational system in the as manager of the factory. countryside. As well as co-op factories, businesses funded and run by private individuals have also Zhang has around 80 employees grown rapidly. and pays them from ¥200 to ¥ 300 a month. All the four The first private steel rolling salesmen and himself are paid There is now a brain mill is at Aojiang, Pingyang ¥500. "But in fact," he said, "I drain from schools to the County, a town of some 100,000 never take a fen home." Of the people. The 27-year-old manager, rural industries, weakening factory's profits, 40 percent goes Zhang Liecheng, only finished in dividends, while the other 60 an already fragile educa• grade six, but he is honest and has percent is ploughed back to tional system in the a sense of humour. He used to expand production. However, in work as a salesman in a small countryside. order to keep up with the intense machinery factory, where he competition, the dividends also picked up much of his know-how. have to be used for further He was also very well paid there, investment in a new plant site and since the factory made enormous Not too far from Li's factory, machinery to develop new profits. When he decided to start products. we met Xiang Yanlong, manager his own business, he took out all of another small business which his savings and pooled them with "Do you have a secretary?" we makes and prints plastic wrapp• those of several other partners to asked him when a smartly dressed ings. It is only a little bigger than form a fund of ¥ 300,000. young woman came in with a Li's factory, but makes much bunch of business letters. more profit. Last year its 181 They borrowed a blue print of a "Oh, come on. My wife would workers invested a total of steel-rolling machine from a state- be jealous," he said with a smile. ¥400,000 and made a profit of owned factory and had the main The woman was the firm's cashier ¥110,000. Though the dividend parts of the machine made at a and Zhang's wife was the has not yet been calculated, they machinery plant. All the other accountant. Apart from them, have decided to spend ¥ 70,000 parts they made, and assembled Zhang's three partners were his building a cinema, installing the machine themselves. That cost father-in-law, his nephew and the running water and mending roads. them a little over ¥ 200,000, not husband of his niece.

OCTOBER 20. I9S6 23 would they be taken on as long- ing material. He has also signed a term contract workers (as long as letter of intent with the Bomin the business survived). Once Trading Co. of Macao Ltd. to co- employed, workers received board produce granite slates, making use and lodging as good as any in the of rich local deposits. At the big cities. They are also given moment he is working with some priority in the purchase of shares researchers from the Shanghai and in medical and retirement Institute of Railroad Transport• insurance, an idea that Ye learnt ation lo try to make long-life from the book The Secret of storage batteries. Toyota by Waka Yama Fujio and Ye Wengui. GANG WANG Sugimoto Tadaaki. When asked what was his rnotive in running the factories. Ye "They are glad to be here," Ye said, "It's not the money I'm after. Ye Wengui, 36, is well known as told us "because I can help them an entrepreneur in Cangnan If I sold all my properties now and raise their standard of life." The put the money in the bank, the County and the whole Wenzhou factory arranges lectures for area. He is the chairman of two interest would be more than workers to improve their skills. enough to last me the rest of my businesses in Jinxiang, which Workers can take any corre• between them have assets of 1.6. life. What holds me here is my spondence course they wish in ambition. I want to do something million yuan and 158 employees. order to study science and During the "cultural revolution" big, I want to do it well. If one day technology, managament or the government requires me to sell he worked for nine years as a farm economics, and get their fees worker in Heilongjiang Province. them the factories, I want to hand reimbursed. The factory also over rich, efficient businesses, not He also has a lot of experience in sends a few workers to university. running a small factory and in a mess " The factory has a bonus system working as a salesman. that is determined by the profit it At the moment the government When he returned home in makes and by the contribution of does not have any definite policy 1979. he discovered there was an each individual. The maximum towards private businesses of a extreme shortage of aluminium bonus last year was ¥2,100. The substantial size like Ye's. It is still sheetings due to increased demand annual income of an ordinary watching. However, some econo- by the expanding local collage worker fluctuates between ¥ 800 iTiists have published their industry. So he clubbed logelher and ¥ 1,000. This, plus free room opinions. They believe that as long with 16 other peeple to sel up an and board, makes their remuner• as the economy is dominated by aluminium rolling factory. Within ation better than that of workers, public ownership, private busi• 1 three years they had made more in factories run by the nesses can do a lot to develop jlhan ¥60,000, five times more government. production; and that measures of than their original investment. All Ye spends his earnings expand• taxation and industrial and his partners insisted on splitting ing production. Last year he set up commercial control can be the money. Ye was unable to the Cangnan Micro-Instrument introduced to eliminate their convince them not to, and pulled Factory. In co-operation with the negative effects. Moreover, with out with his own share. Shanghai Medical Institute, his state guidance, ways can be found Soon after he found some other factory successfully produced a to help them become enterprises in partners and set up his present blood coagulation analyzing ma• the nature of co-operatives. factory reprocessing plastic off- chine, the price of which is only cuts into plastic sheetings. The one third that of imported models. It will take some years of factory's annual output is 600 This year he has already opened experimentation to find out tons. Before, this work had to be up another workshop making whether, and to what extent, these done in Shanghai. polyvinyl chloride plastic wrapp- ideas are justified and feasible. • Last year Ye put an advertise• ment in the Wenzhou Daily to Forthcoming recruit some workers. Unlike other advertisers, he required only How does the booming cottage industry affect single, high-school graduates. Applicants would have to sit an state-run enterprises and their workers' in ! exam and the successful ones Wenzhou? What kind of challenge does it pose to ! would be trained for three months before working for a further three the urban reforms? We examine these questions months on probation. Only then in the special report next issue.

24 BBIJING REVIEW. NO. 42 ARTICLES

China Wakes Up to the Plight of its Blind Children

by Our correspondent Li Qiong uly 14th in Beijing saw the the culmination of months of Beijing Review No. 26, 1980). J opening ceremony of the first effort on the part of Xu Bailun, At the end of last year, Xu, an Chinese summer camp for blind chief editor of the monthly, China architect formerly with the Beijing children. The ceremony was also Blind Children's Literature (in Architecture Institute, joined with Zheng Yuanjie, a famous children's writer to publish the magazine. They had to do so with Zheng Yuanjie (fourth from right) with their own money, so the first print- run was sfnall, only 500 copies, and a copy was sent free to every school for the blind. Between February and April this year China Blind Children's Literature conducted its pre- launch publicity campaign and coupled it with an appeal on behalf of blind children. Children from all over the country donated over 20,000 yuan to finance a holiday in the capital for their blind contemporaries. The magazine also joined forces with the China Welfare Fund for the Handicapped, the China Association of the Blind and the Deafmutc, and the Beijing Garrison Command to ensure that 60 children from across the country spent the best possible week in Beijing. The children were taken to see the city's sights, and everywhere they went they received an especially warm welcome. They were allowed at the Great Hall of the People to climb onto the platform and touch the flags at the back, as no one else can. They were also encouraged to touch the carved figures on the Monument to the People's Heroes in Tian An Men Square. The Miyun International Amusement Centre gave the children free admission and presented each with a terry cloth quit. The Beijing Garrision Command donated the children's

OCTOBER 20. 1986 board and lodging, and ihe Beijing More to the point, perhaps, the Whenever she could she would Weili Soft Drinks Factory .government is considering setting sit ,in. on . the- .primary school's supplied free drinks. up classes for the blind within' classes.: When She was eight,- she There are 500,000 blind children ordinary middle schools. ^started at fhe school for .the blind. in China, but in the past, with its As things stand, blind children She has re:ad. 200 bra;ille books backwardness and upheavals, in China who do go to school, do ,with her hands, and has learned to little thought was given, to their so later, at ages between eight and. -play .eight -rnusical instruments, plight. 15. The courses are the same, but including the piano, the mandolin, In recent years the government • the scale smaller. The. Siping the accordion, and the dulcimer. has built some schools for the School for the Blind in Jilin Just before an exam, her father blind, but their number is still in Province has 203 students, and Wifed that he had broken his leg in short supply. '[ here arc only i 1 109 on the teaching staff. Primary an accident. She coped with her jichoois specifically for blin.d school, middle school and spec- • distress and passed .the exam with children, and 32 schools for the ialized school are each represented .flying colours.^ blind and the deafmute. They- by three years of study; The Her stamina and determination cater for 5,000 blind pupils or 1 specialized subject is massage, but were increased by her circum- percent of the lotal number. the school hopes to add law, . stances. At school she helps her Some provinces have yet to weaving and telephone-Wiring. roommates with their studies and establish a school for the blind Writer Zheng Yuanjie believes shares in the washing and cleaning (Guangxi, Zhejiang, Tibet, Nin- that if blind people are given an around the dormitory. gxia, Qinghai). As a result most education and the chance to learn She says she hopes to give other blind children are kept at home. a skill, they need not be a burden children like her an opportunity to According to Teng Weirriing, head to society. They are not inferior to gain knowledge. Her plan is to of China's Association for the "bright-eyed children," he says. attend a teachers' college and then Blind. China has not a single Ma Fangqin proves his point. work in one of the new sehools for kindergarten for blind children. She is 14 and one of the children the blind. At home the children are often who was on the summer camp. She Although the summer camp either spoilt or neglected. lives in Jiangsu Province and her received the support of the Things are set to improve, father, a railway worker, works in President of the All-China however. The provinces without another province. She lives with Women's Federation Kang Keq- schools for the blind have planned her mother, a farmer. But her ing and of Deputy Mayor Feng to establish some, and others plan mother is afflicted with arthritis Mingwei of Beijing, Zheng feels to expand what facilities they and heart disease. Though blind, dissatisfied. have. Jiangsu, for example, Ma has to look after her younger "As humanists," he says, "we intends to build two more schools brother and sister, do chores should give more attention to for the blind, one in the south and around the house, cut the grass blind children, and we should try one in the centre of the province. and feed the animals. to get the society involved." •

Beijing Review Sii6sc-(i('. ' /Iout.

Please emer m. siil)cription to Beijing Subscription Rates Review for .yoar{s). Counliy 1 year 2 years 3 years f enclose in payment thereof. 22 37 52 Name USA lUSS)

Fngland lEl 12 22 30

Resi ol Europe (ussi 16 21 37 Job iitl" I Ausiraiia (ASl 22 37 52

New Zealand (NZSj 30 52 72

Canada |K| 21 36 50

Swnzedand (SFI 45 77 108 Correction: Line 5, Column 1. IDMI) 50 90 125 W Gerniany' page 30 of our last issue. No 41 Auslna ISch) 330 560 7B0 should read "United Workers" lialy (lire) 29.000 49.000 68,000 Party," and Line 7 should read

Please rr-a-i t'lis form l-oeinei -^iTh vcur pavment. to your local dealer or either of ttie following "(state) Council of the Polish addresses • -i-i '-I'-n-.- . -'.-^.-•^ -r,i;.,i(! -rut-- Shi.id'-inr fP Box 399, Beij.ng, Ch.na • Mqnagemeni People's Republic." r,,,:'i^iln^g,,- -'•' ,-• : H- ,; ,''i,i HcH-i^r-, r Cf-i'a iiiay Siihsnnbi; 10 Bfiiiina H!',-ir"A'dllGcat 0C5laMitlices

26 BEIJING REVIEW. NO 42 China Adopts and Adapts Shakespeare by Our Correspondent Ling Yang

ince the beginning of this commemorating Shakespeare's is performed in chronological S ecnUiry when Shai

OCTOBER 20. 1986 27 ARTICLES

knees and pleads with her again operas Zhang .lihong, direetor of ant and the conflict betwecd and aizain in IJcijing opera style. China's Youth Drama Troupe, different nationalities. Some say ehanged The Mcrclumi of I enicc the changes are useful because Following Suit into a romantie eomedy. Us audiences may not be familiai" opening is very beautiful: on a with the aspects of Western Shakespeare's plays are usually rippling lake young men and history involved and would follow a laby-rinth of plots and sub-plots. women are boatine and singing. the play better without such "complications." Others say the change makes the Jewish merch• ant an empty character and detracts from the original. Some plots of The Merchant of Venice have also been changed. For example, the heroine tells her three suitors that she will marry the one who chooses the box in which she keeps her portrait. In the performance by China's Youth Drama Troupe, the boxes are not placed on the table as they are in the original version. Instead they are held by three dancing maids over their heads. The Prince of Morocco chooses the golden one held by the woman in Arabic dress. He is wrong, however. The •'Twelfth-Night" performed by Shanghai Yueju Opera Troupe. XIE 2H0NGSHAN conceited Prince of Aragon chooses the silver one held by a Chinese operas, however, tell a The actors and actresses paddle woman in Spanish costume. He, single story in chronologieal their feet to illustrate the loo, is wrong. The right one is the order. The adaptation offers the movement of the boat. lead one held by a handsome main story while its structure 's woman in plain Italian dress. ehanged to meet Chinese There is disagreement about audience's tastes. Zhang's deletion of the religious Directed by 44-year-old Xiong Htiiingmci opera, a local oper* background of the Jewish merch• Yuanwei. China's Coal Miners' from Anhui Province, is charac• terized by its local flavour and the songs of hero and heroine. The use "The Merry Wives of Windsor" performed by Wuhan Modern Drama Troupe. of such songs in a luiangnici opera version of Miali Ado About Noihinv makes the play particular• ly popular with local people. Hu Weimin, the director of the successful yucjii opera adaptation of Iwvlfth-Niglu. said the features of a local opera must be given (iue consideration when adapting it to Shakespeare. For example. yueJK opera from Zhejiang J'ro\incc is characterized by its subtlety and delicacy in performance and music. It is very suitable for Twcltih-Nii^hi. which is full of misunderstandings and complic• ations to do with k)ve. Adaptation, Creativity

Not all Shakespeare's plays can be adapted into local Chinese

28 BEIJING REVIEW, NO. 42 Prama Troupe pcrtbrmed A Midsummer A'/X'/;/'.v Dream in a nwdern style. The only sellings on ihe slage are 11 U-shaped ropes hung from the ceiling. The change in their positions and curves indicates the transition in acts. For example, the ropes serve as rows of trees in the "forest" where spirits appear. "Fairies"" dance and play in the "forest"" in yellowish pink nylon clothes. Their quick and strong movements with outstret• ched arms and opened palms resemble modern dance. But their light and elegant turns and leaps resemble ballet.

The young ladies and gentlemen who visit the forest wear large cloaks through which only their heads, arms and legs show. Some traditional Chinese patterns are painted on them to represent the idea of "returning to nature."" The British craftsmen are changed into Chinese people and wear ancient Chinese clothes and speak a dialect of north China.

Shakespeare"s plays have im• pressed the Chinese deeply. There is something very significant about their popularity, it is best for Shakespeare himself to explain the point. When the curtain went up in a Shanghai theatre and the yueju opera version of The Winter's Tales was about to begin, a "Shakespeare"" surprisingly appeared on the stage, accom• panied by two British soldiers in 17th-century uniform, "Shakes• peare" spoke to his audience: "Three hundred and seventy years have passed. I have never been so excited as today.

"Every nation has its own traditions, but they all influence, enlighten and promote each other. Real art transcends national boundaries and at times can arouse sympathy in every human heart... .1 belong not only to the British people but also to you. my Chinese friends. I would like my works to be flowers in the splendid garden of Chinese opera. •

OCTOBER 20. 1986 BUStWESS/TRAPE China Disappointed at Textile Protocol

hina has reservations about agreement is to free the textile to weave in Xiamen. Shenzhen Cthe extended trade protocol of trade step by step. and Guangzhou. The cloth is then the new international textile trade "The new agreement limits made into clothes and other agreement reached on J uly 31. The exports of flax, ramie and blended products in Hong Kong. China Chinese government will make a silk fabrics," said Lin Guangtai, exports raw ramie to South careful study of the agreement deputy head of the Managers" and Taiwan through Hong Kong. before deciding whether to sign it. Office of the China National To limit ramie exports is, directly Textiles Import and Export or indirectly, to limit Chinese The Textile Committee of the Corporation and expert on textile exports. General Agreement on Tariffs and import and export. "China is a China's ramie industry has Trade has made four agreements, noted producer of ramie and has a developed rapidly in the last few each placing stricter limitations on 4,000-year history in ramie years to meet the world's needs. exports of textiles by developing growing and processing. Ramie is The 1985 export value was countries. The Chinese one of China's main exports and US$300 milhon. The high government believes that the accounts for 80 percent of the purchasing price has meant very revisions in the new textile world's total. China is also a silk many farmers now grow ramie protocol make it more restrictive producer and has exported silk instead of grain. The new again than the last. products for a long time. The limitation will directly affect them Chinese government is greatly and indirectly many others. The main problems are the concerned about the limitation on China has 189 flax and hemp limitation on export goods being exporting these products." mills and textile mills producing expanded toinciudeall plant fibre, The world's major ramie linen fabrics with a total blended plant fibre and blended importers are the regions of workforce of 175,500. Farmers silk products and the expansion of Hong Kong, South Korea and who grow hemp and ramie are too importers' rights to limit imports Taiwan. China exports raw many to quantify precisely. • themselves. This is a regression ramie, ramie yarn and grey since the basic aim of the cloth to Hong Kong for international textile trade processing and imports them back Haitao

jointly developed by the factory opening an agro-technical Chinese TV Sets' with the Japanese Hitachi consulting company in China, Bebut In Britain Company. Over 80 percent of its President Wang Jingshi of the parts are made in China. Tests China Agricultural Bank told against high and low temperatures Beijing Review. t the end of last August, the and high humidity by the Chinese Wang said early in May last Afirst batch of the 30,000 Ministry of Electronics Industry year he led a delegation from the Huanyu-brand 14-inch colour TV show that this brand of TV sets bank to the D G Bank. They sets ordered by the London TV has life-expectancy of 45,000 discussed the project and signed a Sales Ltd. from the Shijiazhuang hours and is more durable than the letter of intent with the D G Bank. Television Factory were awaiting same TV sets made by Japan. • Its main points are: delivery. Since last April Mr. by Yang Aimin — That both sides co-operate Wacey, general manager of the under the principle of equality and London company, has inspected mutual benefit in order to develop the factory twice and sent sets Ctiina, FRG the agriculture of both countries; back to Britain for quality tests; Foster Co-operation — To provide funds and they were up to British standards. consulting services for the clients The Shijiazhuang Television n October 3 the China of both banks; Factory belongs to the Huanyu OAgricultural Bank and the D G — To investigate co-operative Export Group and the Huanyu- Bank of the Federal Republic of projects both sides are interested brand TV sets are new products Germany started to discuss in; and

^0 BEIJING REVIEW. NO. 42 — To strengthen the exchange joint venture, will open to business restaurant, after renovation, of information and personnel this autumn in the Shenzhen opened on October 1 this year, training. Special Economic Zone in serving Chinese food. Most of the Some achievements have been Guangdong Province. The ingredients needed will also be noted since that meeting including corporation is managed by the brought from China. CAAC has the Chinese-Germany Co• Bank of China, the Bank of East agreed to advertise the hotel to its operation Symposium held on Asia Ltd. of Hong Kong, the passengers. September 22-24 in Beijing. Pacific Security Corp. of the • Leather and a dozen other co• United States, the Sumitomo operative production projects Bank and the Namura Security have also progressed. Corp. of Japan and has shares New Cliances worth USS7 million held by all the banks and corporations. In For Investment Adsale to Hold addition to banking the corporation will collect funds for he Changbai Mountain areas Exhibitions in Cliina Chinese economic constructions. Tneed foreign funds for their • An overseas import and export development, Liu Runpu. an corporation, the first joint venture official of the Administrative he Adsale Exhibition Services by Shenyang in northeast China Bureau of Township Enterprises T of Hong Kong will hold eight and Hong Kong, opened on of Jilin Province, told Beijing exhibitions in Beijing, Shanghai August 25. With full legal- status, Review. and other places in 1987 providing the corporation will handle The region produces 10.000 China with a good opportunity to imports and exports of textiles, tons of ginseng and 24 ginseng buy advanced foreign technology light industrial goods, handicrafts, products, 3,000 ions of canned and equipment in line with its machinery, metals and minerals, wild fern and mushrooms. 7.000 Seventh Five-Year Plan. These chemicals, medicines, local tons of wild fruit juice. 5,000 tons exhibitions will deal with chemical products and livestock products. of wild fruit wine, and 2 nnllion and petrochemical equipment, • The Guangdong provincial cubic metres of timber annually. construction (machines, products government recently decided Liu said the provincial govern• and technology), the automobile strictly to control the import of 28 ment welcomes foreign firms industry, meters and instruments, industrial projects producing joining the development pro• telecommunications, automatic refrigerators, washing machines, gramme of Changbai Mountains. office equipment, leather TV sets, radio cassette recorders, Funds are urgently needed. technology and equipment, plastic cameras, heavy-duty trucks, Advanced technologies are also and rubber industry, and high- duplicators, elevators, cassette needed for the utilization of grade electronic technology and recorder and video tapes. ginseng for many purposes, for equipment. Of these exhibitions The local government will wine making and packaging, for the construction machines and consider their importation if processing canned food and technology exhibition will be the foreign businessmen are willing to timber, and for tanning marten biggest and will cover an area of invest in them and the products pelts. Jilin Province is looking to 10,000 square metres. have a ready market in the world. increase its export trade, Liu said. Established in 1980, Adsale Jilin Province, in northeast Exhibition Services has held more China, covers 0.18 million square than 20 international industrial kilometres with the Changbai exhibitions in China. Of them the Daqing Buys Hotel Mountain region occupying 55.7 International Automobile percent of its total territory, or Industrial Technology Exhibition, In West Germany 100,200 square kilometres. the Internationa! Nuclear Energy ie Daqing Economic and China's largest forestry base, the Equipment Exhibition and Technology Development Co. region is rich in minerals, Surveying and Testing Equipment T has recently bought the Hotel including significant deposits of Exhibition were the biggest of Ravel on Niddastrasse in gold, nickel, wollastonite and their kind ever held in China. • Frankfurt, the Federal Republic diatomite. Wild ginseng from the by Zhang Zeyu of Germany. The 70-room hotel Changbai has been China's best was bought for DM 8.4 million tonic for 2,000 years. The and renamed Lianyi Hotel (Union medicated wine made with News In Brief of Friendship). Daqing owns the ginseng, pilose antler and animal's hotel but it will be operated by a penis is said to be "a man's • The China International subdivision in the country using treasure." • Monetary Corp., a Sino-foreign mostly Chinese staff. The Yue Haitou

OCTOBER 20, 1986 31 CUITURE/SCIENCE

1 i\ Li Keran: Blending Tradition and Innovation

ore than 200 ink-and-colour and taught himself calligraphy China in 1949, Li became an even M traditional paintings, sket• and drawing. At 13, he began to bolder artist and forged ahead ches, line drawings and works of learn traditional painting. He with new techniques. Incorporat• calligraphy by contemporary turned to oil painting when he ing Western painting skills with artist Li Keran were shown not entered the state-run ink-and-colour painting, Li ad• long ago at the China Museum of Art Institute at 22. vanced the traditional Chinese Fine Arts in Beijing. Li's exhibits In 1943, he began to be known painting of landscape to catch the provided an overview at how the for his expressionistic portraits spirit of the era. Be it a hill, a rock, artist has progressed during the and landscape paintings while a a stream or a tree, every item in his past several decades. teacher at the state-run fine arts paintings reflects Li's unique Li Keran is now vice-president school in Chongqing, the war-time vision. A "full composition to of the Chinese Artists' Associ• capital. After the war, he was express complex ideas, the extra• ation, president of the Research invited by master Xu Beihong(Ju ordinary employment of simple Institute of Traditional Chinese Peon) to teach at the Beiping State strokes, the versatile use of dark Painting and a professor of the Art College. During this period, ink, the treatment of light from Central Academy of Fine Arts. Li advanced his study under the various angles" all these are Born in Xuzhou, Jiangsu Pro• two great masters Baishi and characteristic of Li's landscape vince, in 1907, Li came into Huang Binhong. paintings. contact with folk arts as a child After the founding of New Li spent decades perfecting his

Under the Shade of Old Vines. Twin Waterfail.

32 BEIJING RFVIEW, NO. 42 art. While diligently studying the strong points of his forerunners, he has also been an innovator. He said he "has spared no efforts in learning from tradition, while trying with every bit of courage to break from it." To break from predecessors, Li Keran uses out-door sketching as the starting point of his creation. He says out-door sketching helps him discover new laws governing painting and inspires his work. Starting in 1954, he began leaving his studio to traverse thousands of kilometres around China. His purpose then, he says, was to watch the transition of the four seasons, landscapes in different kinds of weather, and endless scenery changes in different hours of a day so he could use his brush to portray nature better. Li Keran in liis studio.

by a Mountain Village, done in many, shows another aspect of the 1970, a mountain village is shown artist. Blending Western oil in the heat of summer. The painting techniques with tra• mountain is the most impressive ditional Chinese painting, Li part of the work and is made even infused the beauty of steadiness in more so by the layers upon layers of black ink used to paint it. The colour contrast — the dark moun• tain against the village, trees, and /• ki- ,4 rf' i~ '* the waterfall, which are bathed in i- - r * * hues of sienna sunshine — gives the work its harmony and lyricism. Though the village are { quiet, sounds and motions can be f heard and seen —the thunderous roar of the waterfall, the murmuring streams, the singing cicadas, the rustle of leaves and voices on the bridge. A common mountain village is transformed into a poem of life by Li's brush. Li Keran is also known for his J paintings of buffaloes and co• A Merry Monk LI K.ERAN wherds. The reason Li's buffaloes and cowherds are so fascinating is Li Keran says he takes each that Li is very familiar with water stroke seriously. His favourite is buffalo. For years in the 1940s he dark black ink. and he often puts lived next door to a cowshed and layers upon layers of ink onto the was impressed with the buffalo's paper in order to give his works obedience, its hard working depth and a three-dimensional nature and apparent selflessness. A Cloud-Slirouded Mountain Viliage. effect. To the artist, images are His studio is named "Hall of more important than reality, and Learning From a Buffalo." the picture with a powerful moving objects are more import• The Church, done in 1957 in the straight line composition. Every ant than still ones. In his Waterfall Democratic Republic of Ger• figure inside and outside the

OCTOBER 20, 1986 3? LTURE/SCIENCE church is, however, lively, though thousand no-goods," meaning each is more or less the size of an that he is not satisfied with his ant. creations, and that he often ends A good traditional Chinese up shredding them. He has done artist is very particular about the so to more than 3,000 of his works. use of different shades of ink. The In summing up his 60 years of general tone of Li's paintings is artistry, Li Keran said; "If 1 have "darkness." No photos of scenery achieved something with my against the light can be compared work, it is because I have learnt with the artistic conception from tradition. I have dug deep presented by Li's different shades into life, pondered a lot and put of ink through his plump brushes. my ideas into practice. No one will His deep, subtle and vigorous achieve anything if he or she "darkness" leaves a lingering impression on viewers. His departs from life and tradition. I darkness is also quite full of colour am not talented, but I work and vitality. diligently. Whenever I paint. I ask When Li finishes a new work, he myself, 'Am I painting, or learning hangs it on the wall. He will not to paint, or studying painting?' recognize it a creation unless he My conclusion is; I'm learning to has been satisfied with every detail paint and studying painting. 1 am of it. He has a chop engraved with forever in the process of learning." the four characters "three Examining a Scroll.

whales all followed the first whale Theory Explaining ashore, even though some of them Beached Whales were washed out to sea several times. Li attributed this to the easons on why 12 sperm animal's strong habit of group Rwhales may have mistakenly activity. swum ashore in Fuding County, He quoted some older people Fujian Province, last year were living in Qinyu as saying that given by Li Tingxing, a lecturer at whale beachings have occurred the Xiamen Aquatic Products three times over the past 50 years, College. He attributed the group all between the late autumn and beaching on December 22 to the early spring when strong northeast disorientation of the giant winds prevailed. mammals due to the monsoon, the temperature of the sea water, and Li said his college sent a variable sea currents. working group to the scene soon i after receiving the news. A 12.4- Sperm whales like deep water meter-long male sperm whale, and temperate or tropical waters. weighing over 20 tons, was When they entered the shallow sea shipped to the school for samples by mistake, their sense of hearing, and examination. Other whales which is their major guide, was were video-taped and dissected for lost. This may have caused the research. whales to panic and swim blindly The school will build an ashore, Li said. exhibition hall to display the According to eye-witnesses, the whale specimens as well as beaching occurred when one of the thousands of other specimens of whales rushed onto the beach in a marine animals and plants, he place called Qinyu. The other said. •

34 BEIJING REVIEW. NO, 42 Ex Libris 4«. f-*ik^-;i'

Some of new works by Li Hua, Liang Dong, Tan Quanshu, Chen Yadan and Wang Donghai. Very Chinese, some are graceful, others are sharply contrasted in black and white.

ART PAQE

EX-LIBRIS Grand Bridge" Toothbrushes

Packed in transparent boxes or in inset-type containers, "Grand Bridge" toothbrushes are made in tasteful colours and have elegant shapes for | easy and comfort• able use. An export product with a history of almost 30 years, our toothbruches sell well all over the world. Your orders are welcome!

China National Light Industrial Products Import & Export Corp., Hubei Branch. Address: 99 Shengli Street, Wuhan, China Coble: INDUSTRY WUHAN Telex: 40119 HBLIC CN