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Prospect for US-Soviet Arms Race SPOTLIQHT A CHINESE WEEKLY OF NEWS AND VIEWS September 15,1986 Prospect for US-Soviet Arms Race SPOTLIQHT Archers of Yunnan Province with their coach. A Glimpse of Chinese Ethnic Minority Sports pifi^il Women's 15-kilometre horserace. A game of wooden ball. VOL. 29, NO. 37 SEPT. 15 1986 HIGHLIGHTS OF THE WEEK CONTENTS NOTES FROM THE EDITORS 4 Deng on Sino-Soviet and Sino-US Relations Making the Most of Investment In China • Chinese leader Deng Xiaoping, in an interview with Mike Wallace of the United States' CBS television network, hoped EVENTS/TRENDS 5-9 the Soviet Union would urge Viet Nam to end its aggression in Deng on Sino-Sovietv Sino- Kampuchea, and advised the United States to take a wiser US Relations spproach to the Taiwan question. In this way both superpowers Reform Now an Historical Trend could show they are serious about improving their relations Daya Bay: Safety First with China (p. 5). China: A Summer of Rain and Flood INTERNATIONAL lO-tS CMteia's Labour System to be Changed Harare: NAM in the Prime of Life Pakistan: Call for Peace and • A major reform of China's labour system is under way, Democracy aimed at eliminating the defects of the "iron rice bowl" practice. New Caledonia; Dispute Over The present job-for-life is being replaced by a labour contract Independence system that will give workers some freedom in selecting their Technical Barriers: A New Trend in jobs and the enterprises, the decision-making powers in Trade Protectionism employing workers. Insurance schemes are also to be introduced for the unemployed and the retired (p. 16). Prospects for Superpower Arms Race 14 Labour Reform: Making a Dint in Making Right Investment Choices iron Rice Bowl' 16 Minorities Sports Games • Overseas investors run wholly-owned enterprises or take part in joint or co-operative ventures in China in order to make Colourful 18 a profit. Bui only when the investment is placed where it is most Will China's Typhoon-Disasters needed can it bring good returns. Prospective investors may Blow Over? 21 benefit from a few "tips" given by one of our editors (p. 4). China's Young and Promising Composers 23 Peace vs. Arms Race FROM THE CHINESE PRESS 26-27 • A general review of the arms race between the two BUSINESS/TRADE 28-29 superpowers: its history, motives, and prospects (p. 14). CULTURE/SCIENCE 30-31 SPORTS 32 Minorities Compete in Traditional Sports BOOKS 33 LETTERS 34 • Tug-of-war played not with the hands but with the neck? This was a keenly contested event at a recent competition. The COVER: Horse-race at national minori• 10-day tournament showed that despite flourishing modern ty sports games. ethlctics, traditional, often exotic, sports are still very much Min Tixuan alive among China's 55 ethnic minorities (p. 18). PubKsiwd •very Monday by Obtributed by CMiNi Iwfmwlfcmal ••ok I prices (1 year)t »ajlNG REVIEW TrmMnc &M p«riilliiin (GUOJI SHUDIAN), A.3i 22.00 USA USS22M 24 Baiwanzhuong Rood, B«qin« P.O. Box 399, toqing, China Now Zealand... NZ.$n.QO UK........ £tZM The P«opt*'t RapubDc o( China ... Con. $21.00 NOTES FROM THE E Making the Most Of Investment in Cliina by Zhang Zeyu verseas investors run wholly Chinese counterparts in feasibility Oowned companies or take part studies and, perhaps more import• in joint or co-operative ventures in antly, to follow closely world and China in order to make a profit. Chinese market trends. Their Chinese partners have In an interview with a group of uppermost in their minds the visiting foreign businessmen and interests and needs of their bankers early last month,.Premier country's socialist development. Zhao Ziyang said that while Their co-operation is therefore continuing to promote all-round based on a desire for mutual co-operation with the rest of the — Enterprises that call for benefit. world in various ways during the technology which, though advan• It is probably known to all Seventh Five-Year Plan period ced, has already been imported overseas entrepreneurs that China (1986-90) and the subsequent five elsewhere; industries suffering sponsors these enterprises to help years (1991-95), China hopes that from overproduction or a near- provide the capital it needs to keep co-operation in monetary affairs saturated market, or whose the modernization drive going. in particular will flourish, to products cannot all be exported, The advanced technology and enable more companies to invest among them colour TV sets, management expertise imported and operate enterprises. With its refrigerators and other household in the process are used to correct limited foreign exchange reserves, appliances; imbalances in China's industrial he said, China is handicapped by a — Businesses which do not need setup and improve its product mix low repayment ability, making it advanced production and man• and promote the re-tooling with difficult for overseas investors to agement expertise or are unable to new technology of existing enter• remit their profits out of China. increase exports to earn much prises. This will in turn help He suggested that both Chinese sought-after foreign exchange, increase exports as an important and overseas partners work such as colour photo processing means of striking a balance in together to find ways and means and taxi services; and of tackling this problem. China's foreign exchange budget. — Ventures whose products are Overseas investment brings According to the premier, subject to state export quotas, durable returns only when it is preferential treatment will be such as garments. placed where it is most needed — granted to direct foreign invest• The few banned categories wrong choices lead to financial ment in China, especially to listed in the Reguladons on the losses. SeUing components to be projects generating exports, or Implementation of the Law on assembled for sale in China, for which sell their products on the Joint Ventures Using Chinese and instance, may be lucrative for a Chinese market but reinvest their Foreign Investment include those time but it will not be so for long profits in China. Detailed policies that are detrimental to China's because it syphons off large sums are in the making and a Hst of sovereignty, violate Chinese law, from the state's foreign exchange ventures in which foreigners are do not contribute to the needs of reserves without benefiting China encouraged to invest will be China's national economic devel• with sophisticated production published soon. opment or tend to cause expertise. If such ventures are environmental pollution. allowed to grow unchecked, they Drawing on the lessons of the It is believed overseas investors will become too much of a burden past, the Chinese business world is will see better days ahead with the for China. becoming more choosy as to implementation of policies To make the right choices, it is where overseas capital is channel• favouring them, and with the therefore necessary for overseas led. Some investment is dis• further improvement of the investors to co-operate with their couraged, for example: country's investment climate. • 1 4 BEIJING REVIEW. NO. 37 Deng on Sino-Soviet, Sino-US Relations eng Xiaoping, chairman of the obstacle in Sino-Soviet relations is important issue in the negotiations DCentral Advisory Commission removed, I will be ready to break on the establishment of Sino-US of the Chinese Communist Party, the rule and go to any place in the diplomatic relations." has said that if Soviet leader Soviet Union to meet Gorba• Deng said with regret, "During Mikhail Gorbachev urges "Viet chev," he said. the later period of the Carter Nam to end its aggression in administration, the US Congress Kampuchea and withdraw its "I believe," Deng said, "a adopted the Taiwan Relations troops from there, I myself will be meeting like this would be of great Act, which has become an ready to meet him." significance to the improvement of immense obstacle in Sino-US At the same time, the Chinese Sino-Soviet relations and the relations." leader urged US President Ronald normalization of Sino-Soviet state Reagan to do something useful for relations." Recalling his "cordial and bringing about Taiwan's reunific• Deng said that without Soviet frank" talk with President Reagan ation with the mainland. As a first backing the Vietnamese could not during the latter's visit to Beijing, step, he asked the US to persuade go on fighting in Kampuchea for a Deng expressed the hope that Taiwan to open up postal, trade single day. during his term of office. President and shipping services with the Gorbachev evaded the question Reagan will bring about further mainland. of Kampuchea in his Vladivostok progress in Sino-US relations, Deng called on Gorbachev to speech in which he proposed including some effort in respect to "take a solid step towards the easing tensions, Deng said. China's reunificafion. removal of the three major "There was something new in "I believe that the United - obstacles in Sino-Soviet rel• Gorbachev's speech and that is States, President Reagan in ations." In addition to the why we have expressed cautious particular, can accomplish some• Vietnamese aggression against welcome to what was new and thing with regard to this Kampuchea, there are Soviet positive in it," he said. question," he said. troops in Afghanistan and on the "However," he pointed out, "The United States can en• Chinese border and in Mongolia. "Gorbachev's remarks also show courage and persuade Taiwan first Deng made his remarks in an that he has not taken a big step. to have 'three exchanges' with us, interview with Mike Wallace of Soon after Gorbachev made his namely, the exchange of mail, the US television programme "60 speech, an official from the Soviet trade and air and shipping Minutes" scheduled for broadcast Foreign Ministry also made a services," Deng added.
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