CELEBRATING HK RETURN P.22 I TAMING STONY DESERTS P.26 VOL.55 NO.27 JULY 5, 2012 WWW.BJREVIEW.COM MOVING IN China establishes new city in the South China Sea RMB6.00 USD1.70 AUD3.00 GBP1.20 CAD2.60 CHF2.60 JPY188 邮发代号2-922·国内统一刊号：CN11-1576/G2 VOL.55 NO.27 JULY 5, 2012 INDEX THE DESK BUSINESS 2 A Seafaring Strategy THIS WEEK COVER STORY WORLD 34 Let the EVs Roll Growing pains for China’s electric vehicles 36 Market Watch CULTURE 10 Cover Story Red flag over Sansha 16 Making Latino Friends Premier Wen Jiabao’s trip to Latin America boosts ties 18 Misplaced Priorities U.S. could find better use for resources being devoted to FEATURES Asia-Pacific 42 Painting Power NATION 10 Sansha by the Sea Oil painting finds new expression New city will spur development in the South China Sea in China 14 Sustainability Stalemate FORUM Rio+20 struggles to make progress 46 Is It Necessary to Cultivate Lottery Masters? 22 Seeking Changes and Stability EXPAT’S EYE Hong Kong stays the course 48 The Guy 24 Hong Kong in Photos How to get things done in Beijing 26 Rocks to Riches 32 A Driving Force for Recovery Reclaiming stony deserts China continues to be at the center of the global economy improves rural incomes 28 Wonders Out of Stone Cracks 40 Fame and Fortress Goats and peppers thrive in New life to ancient dwellings harsh conditions Beijing Review (ISSN 1000-9140), is published weekly for US$64.00 per year by Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080, Periodical Postage Paid at South San Francisco, CA 94080. POSTMASTER: Send address changes to Beijing Review, Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 THE DESK A News Weekly Magazine Published Since 1958 iPad APP http: //www.bjreview.com A Seafaring Strategy E-mail: [email protected] President & Editor in Chief: Wang Gangyi The Chinese Government made a strategic decision with far-reaching sig- Vice President: Qi Wengong nificance when it established Sansha City on June 21. The move solidifies Associate Editors in Chief: Li Jianguo, Huang Wei, China’s sovereignty over the South China Sea islands and surrounding Wang Yanjuan, Zhou Jianxiong Assistant President: Li Zhenzhou waters. It also shows the government’s increased resolve to strengthen ad- Executive Editor: Ding Zhitao ministrative management over the area, marking a symbolic milestone in China’s development of the islands. Assistant Executive Editors: Yao Bin, Zhang Zhiping Editorial Administrators: Li Ning, Shi Bosen Historic records show that China began to exercise administration over Senior Consultant: Shao Haiming the islands as early as A.D. 110. It was the first country to discover and Opinion Editor: Zan Jifang name the islets around Xisha, Zhongsha and Nansha Islands and has since World Editor: Yan Wei Nation Editor: Yao Bin continued its administration over the region. Therefore, it is an indisputable Business Editors: Yu Shujun, Lan Xinzhen fact that China possesses sovereignty over the islands and the nearby wa- Culture Editor: Liu Yunyun ters. Editorial Consultants: Brandon Taylor, Raknish Savan Wijewardene, Thomas Bradley Rippe, Joseph Halvorson China has always pursued the principle of friendly relationships, peace- Staff Reporters: Tang Yuankai, Ding Ying, Ding Wenlei, Wang Jun, Li Li, ful coexistence and deepening ties with countries in the region. Despite Yin Pumin, Liu Yu, Pan Xiaoqiao, Yuan Yuan, Wang Hairong, Liu Xinlian, some countries’ provocative behavior in the South China Sea in recent Yu Yan, Yu Lintao, Zhou Xiaoyan, Bai Shi, Xu Tao, Deng Yaqing, Ji Jing Photo Editor: Wang Xiang years, the Chinese Government has adopted a rational attitude, with a com- Photographers: Jiang Xiaoying, Wei Yao mitment to avoiding deteriorating conditions over the disputes and fostering Art: Li Shigong a positive atmosphere of peaceful development among relevant countries. Art Director: Wang Yajuan Chief Designer: Cui Xiaodong China is not willing to see turmoil in the region. But, this does not mean Designer: Zhao Boyu that China will concede on the issue of sovereignty. Proofreading: Qin Wenli, Ma Xin The establishment of Sansha is within China’s right, and this will not be Distribution Director: Pan Changqing dissuaded by others. With the existence of the administrative body, follow- Human Resources: Zhang Xiaoli International Cooperation: Pan Shuangqin up economic planning, ocean protection, resource development and even Legal Counsel: Yue Cheng a military presence will be put into place. These are the steps the Sansha North America Bureau Municipal Government must play to exert tangible management over the Chief: Huang Wei region. Tel/Fax: 1-201-792-0334 The development of Sansha will be a big issue facing China. A pros- E-mail: [email protected] General Editorial Office perous and harmonious local society is helpful in safeguarding peace in the Tel: 86-10-68996252 South China Sea area. Extensive development planning and basic infra- Fax: 86-10-68326628 structure construction are necessary for the smooth operation of the local English Edition Tel: 86-10-68996259 government. Advertising Department Establishing Sansha City marks a turning point for China’s policy in the Tel: 86-10-68995813 South China Sea. It shows that China is moving forward confidently in the Fax: 86-10-68329398 E-mail: [email protected] face of future uncertainties. It should be stressed that, on the precondition of Distribution Department protecting sovereignty, China is committed to maintaining regional peace, Tel: 86-10-68310644 cooperation and common development. n Fax: 86-10-68328738 E-mail: [email protected] Published every Thursday by BEIJING REVIEW, 24 Baiwanzhuang Lu, Beijing 100037, China. Overseas Distributor: China International Book Trading Corporation (Guoji Shudian), P. O. BOX 399, Beijing 100044, China Tel: 86-10-68413849 Fax: 86-10-68412166 E-mail: [email protected] Website: http://www.cibtc.com General Distributor for Hong Kong, Macao and Taiwan: WRITE TO US Peace Book Co. Ltd. Send an e-mail: [email protected] 17/Fl, Paramount Bldg, 12 Ka Yip St, Chai Wan, HK Tel: 852-28046687 Fax: 852-28046409 Please provide your name and address along with your submissions. Submissions may be edited. Beijing Review (USPS 2812) is published weekly in the United States for US$64.00 per year by Cypress Books, 北京周报 英文版 2012年 第27期 ISSN 1000-9140 广告许可证 0171号 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 北京市期刊登记证第733号 邮发代号2-922·国内统一刊号：CN11-1576/G2 国内零售价：人民币6.00元 News Postage Paid at South San Francisco, CA 94080 CHINA......RMB6.00 U.S.A.......USD1.70 AUSTRALIA......AUD3.00 UK......GBP1.20 CANADA......CAD2.60 SWITZERLAND......CHF2.60 POSTMASTER: Send address changes to Beijing Review, JAPAN......JPY188 EUROPE......EURO1.90 TURKEY......YTL5.00 HK......HKD9.30 NEPAL......RS40 Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 2 BEIJING REVIEW JULY 5, 2012 http://www.bjreview.com THIS WEEK “China will tighten management of local government debt and strictly regulate new borrowing to guard against fiscal risks. The na- tion will continue to clean up and regulate local government financ- ing vehicles and bar them from incurring new debt.” Xie Xuren, Chinese Minister of Finance, in a report on the implementation of the 2011 budget to a session of the Standing Committee of the National People’s Congress in Beijing on June 27 “Production methods are evolving all the time, which makes crack- downs more difficult.” Liu Yuejin, Director of the Narcotics Control Bureau of the Chinese Ministry of Public Security, saying that despite consistent efforts China still faces a grim drug-control situation, on June 26, International Day Against Drug Abuse and Illicit Trafficking “The Turkish nation has no in- tention of attacking. We are just making provisions to stave off all threats to our unity and integrity, for our defense. We have never had an eye on the soil of any coun- try.” WANG JIANMIN WANG Turkish Prime Minister Recep Tayyip Erdogan, emphasizing that his country will not attack Syria after a Turkish fighter jet was shot down by a Syrian missile, at a ceremony to introduce Turkey’s first domestically produced training jet HURKUS in Successful Landing Istanbul on June 27 “It is imperative that we don’t prom- Astronauts Jing Haipeng (front center), Liu Wang (front left) and Liu ise things that we cannot deliver and Yang wave to a welcoming crowd after emerging from the return cap- that we implement what we have sule of Shenzhou-9 spacecraft in Siziwang Banner, north China’s Inner agreed. Joint liability can only hap- Mongolia Autonomous Region, on June 29. pen when sufficient controls are in During their nearly two-week flight, the three astronauts completed place. I don’t see total debt liability as the country’s first manual rendezvous and docking mission with the or- long as I live.” biting Tiangong-1 lab module, which will pave the way for the country’s German Chancellor Angela Merkel, opposing quick establishment of a permanent manned space station around 2020. solutions like Eurobonds or the use of European Union funds to reduce Italian and Spanish debt, at the German Bundestag in Berlin on June 26 http://www.bjreview.com JULY 5, 2012 BEIJING REVIEW 3 THIS WEEK SOCIETY X IN HU Committee of the National People’s Congress, HIGH HARVEST Tibetan women pick tea A leaves at the Yi’ong Tea Plantation in Bomi the country’s top legislature, on June 27. County in Tibet Autonomous Region. It is The Chinese Government will strive to the highest tea plantation in China solve the problems concerning drinking water safety for millions of rural residents in accor- dance with the 12th Five-Year Plan (2011-15) for the country’s social and economic devel- opment.