January 2012 - Embassy China in India

Transcription

VOL. XXIV No. 1
January 2012
Rs. 10.00
Chinese people celebrate the Spring Festival which marks the beginning of the
Chinese Lunar New Year of Dragon. It is the most important festival in China. Chinese
people enjoy a week holiday from Jan. 22 to Jan 28, 2012 for the auspicious occasion.
Indian Prime Minister Manmohan Singh met with Chinese
State Councilor Dai Bingguo (L) in New Delhi on Jan. 17.
China and India held the 15th meeting of the Special
Representatives on the China-India Boundary Question
here on Jan.16 and 17, 2012.
Chinese Special Representative, State Councilor Dai
Bingguo and Indian Special Representative, National
Security Advisor Shivshankar Menon met the press in
Hyderabad House in New Delhi on Jan. 16 during the 15th
meeting of the Special Representatives on the China-India
Boundary Question.
The 15th meeting of the Special Representatives on the
China-India Boundary Question in New Delhi on Jan.16 and
17, 2012.
Indian National Security Advisor Shivshankar Menon
hosted a banquet for visiting Chinese Special
Representative on the China-India Boundary Question and
State Councilor Dai Bingguo in New Delhi on the evening of
Jan.16, 2012.
At the conclusion of the 15th meeting of the Special
Representatives on the China-India Boundary Question,
Agreement on the Establishment of a Working Mechanism
for Consultation and Coordination on China-India Border
Affairs was signed by Chinese Assistant Foreign Minister
Liu Zhenmin(L) and Indian Ambassador to China S.
Jaishankar(R) at the presence of the two countries'
representatives and media.
Chinese Amabassador Zhang Yan and Indian National
Security Advisor Shivshankar Menon delivered a speech
respectively on a lecture on China-India relations in the
Leela Palace Hotel in New Delhi on Jan.9, 2012.
NEWS FROM CHINA /JANUARY 2012
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CONTENTS
I. THE 15TH MEETING OF SPECIAL REPRESENTATIVES OF
CHINA AND INDIA ON SINO-INDIAN BOUNDARY QUESTION
1.
2.
3.
4.
5.
A Brighter Future When China and India Work Hand in Hand
Indian PM Meets with Chinese State Councilor in New Delhi
China,India Hold 15th Round of Special Representatives Talks on Border
China, India Sign Pact on Border Consultation, Coordination Working Mechanism
Dai Bingguo Delivers Speech on China-India Relations
4
5
6
7
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II. LECTURE ON CHINA-INDIA RELATIONS
1.
2.
Chinese Ambassador Zhang Yan’s Speech at the Lecture on China-India Relations
Developments in India-China Relations
8
13
III. DOMESTIC AFFAIRS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Chinese President Delivers New Year Address, Stresses World Peace, Development
Chinese Leaders Watch Peking Opera for New Year
Legislature Reviews Government Reports
All 8,043 Suggestions Made at China’s Top Legislature Receive Feedback
Agriculture Still Vital to China
More Chinese Farmers Benefit from Transfer of Land-use Rights
Chinese Defense Department, Army Continue to Conduct Foreign Exchanges in 2012
Revenues of China’s Customs Duties Top 1.6 Trl Yuan
China’s Reading List Reveals a Few Surprises
Top 10 National Events in 2011
Top 10 Economic Events in 2011
Top 10 Cultural Events in 2011
The Plan for 2012
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17
18
20
20
21
22
23
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25
30
35
40
IV. TIBET TODAY
1.
2.
Chinese Official Talks with EU Representatives on Tibet Issues
China Earmarks Additional 8 Mln Yuan to Renovate Tibet’s Sera Monastery
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I. THE 15TH MEETING OF SPECIAL REPRESENTATIVES OF
CHINA AND INDIA ON SINO-INDIAN BOUNDARY QUESTION
A Brighter Future When China and India
Work Hand in Hand
By Dai Bingguo
State Councilor of the People’s Republic of China
I am delighted to come back to the beautiful
metropolis of New Delhi and join my Indian
colleagues for the 15th meeting of the Special
Representatives on the China-India boundary
question. Every time I return, I am deeply
impressed by the strong economic growth and
remarkable progress India has achieved.
In the mid 1950s, China and India, in response
to the call of the time, jointly initiated the Five
Principles of Peaceful Coexistence, or the
Panchsheel. Today, these five principles are still
shining with strong vitality. The world is
undergoing drastic and profound changes. China
and India, both ancient civilizations and major
developing countries whose combined population
accounts for nearly two-fifths of the world’s total,
once again responded to the call of our time. Our
two countries have seized the historic opportunity
of economic globalization and achieved fast
development. We are now the two largest
emerging countries in the world and play
increasingly important roles in regional and
international affairs.
I am happy to note that since the beginning of
the new century, the China-India Strategic and
Cooperative Partnership for Peace and Prosperity
has continued to grow rapidly and our friendly
cooperation has yielded fruitful results. The trade
volume between our two countries has grown
from US$2.9 billion in 2000 to US$61.7 billion in
2010, an increase of 20 folds in 10 years. We speak
with one voice and enjoy increasingly closer
coordination and collaboration in multilateral
mechanisms and in tackling global challenges. The
year 2011 was the “Year of China-India
Exchanges”. The first bilateral Strategic Economic
Dialogue was held and 500 Indian youths visited
China. Once again, these diverse exchanges got
our relations off to a good start in the second
decade of the 21st century. China-India relations
have entered a fast track of growth.
Our Indian friends may have confidence in
China’s tremendous sentiment of friendship
toward India. While working hard to develop itself,
China is fully committed to developing long-term
friendship and cooperation with India. It is our
genuine hope that India will enjoy prosperity and
its people happiness. There does not exist such a
thing as China’s attempt to “attack India” or
“suppress India’s development”. China will
remain committed to the path of peaceful
development. It will develop itself by upholding
world peace and contribute to world peace
through its development. We will grow on the
basis of our own efforts, reform and innovation;
at the same time, we will remain open to the
outside world and learn from other countries. We
will fully embrace economic globalization and seek
mutual benefit and common development with
other countries. We will continue to work with the
international community to promote the building
of a harmonious world of enduring peace and
common prosperity.
China’s conviction to peaceful development is
not without foundation. It is rooted in the fine
Chinese culture and tradition. Peaceful
development is not an act of impulse. It came into
being in the course of reform and opening-up and
is firmly supported by China’s state policy and
strategy. It is not a policy of expediency. Peaceful
development is a rational, strategic choice made
in line with the trend of our time and China’s basic
condition. Even when China becomes truly
developed in the future, it will remain committed
to the path of peaceful development.
Back in 1988, Mr. Deng Xiaoping said to then
Prime Minister Rajiv Gandhi that no genuine AsiaPacific century or Asian century would come
without the development of China, India and other
developing countries. Prime Minister Singh also
observed that when India and China speak with
one voice, the world will listen. These analyses of
insight point to the tremendous importance and
necessity for China and India to develop ourselves
well and advance the relations between us. For
this is crucial not only to our two countries, but
also to Asia and the whole world that we both live
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in. We need to guide and promote the growth of
China-India relations with the concept of peaceful
development. We need to view each other’s
development in a positive light and regard each
other as major partners and friends, not rivals. We
always need to be each other’s good neighbor,
good friend and good partner. As a man in his
seventies, I truly hope that our children and
children’s children will forever live in peace,
friendship and cooperation.
We are now in the second decade of the 21st
century. Looking ahead, China-India relations have
huge potential and broad space for cooperation.
What we face is a golden period to grow ChinaIndia relations. The world has enough space for
China and India to achieve common development,
as there are so many areas for us to work together.
As neighbors and two big countries of a combined
population of 2.5 billion, China and India can join
hands, seize the historic opportunity and work
together to further advance our friendship and
cooperation. Together, we will bring benefits to our
two countries, two peoples and the whole
mankind.
Indian PM Meets with Chinese State Councilor
in New Delhi
On January 17, 2012, Indian Prime Minister
Manmohan Singh met Chinese Special
Representative for the Sino-Indian Talks on
Boundary Issues and State Councilor Dai Bingguo
who is on an official visit to the Indian capital New
Delhi.
Singh first asked Dai to convey his greetings to
Chinese President Hu Jintao and Premier Wen
Jiabao. He said that India pays great importance
to its relations with China and the two countries
have seen frequent exchanges of visit.
He said that bilateral trade between India and
China totaled near 70 billion U.S. dollars and the
two countries had held their first strategic economic
dialogue last year. He also noted that 500 Indian
youths were received cordially by Premier Wen in
Beijing last year. All these, he said, have shown
that India-China relations are experiencing a good
momentum at present.
Singh expressed his belief that good
cooperation between India and China will bring
about great changes to the world and said India is
ready to work with China to push forward bilateral
cooperation in all fields. India will also carry out
close cooperation with China in international
affairs and commonly safeguard the interests of
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the developing countries.
The prime minister said that India-China
Special Representatives Talks on Boundary Issues
held since 2003 have achieved positive progress.
He said India seeks a solution to the issue on the
basis of fairness, reasonableness and mutual
acceptance. He also wished the special
representatives of the two countries to keep up
their efforts to look for a framework to solve the
issue on the basis of political guidelines signed by
the two sides, while the two countries should
maintain peace and tranquility on the border areas
between them.
Dai conveyed cordial greetings and good
wishes from President Hu and Premier Wen.
He said China and India are important
cooperative partners. China highly evaluates its
relations with India and wishes to continuously
pioneer new horizons for and deepen Sino-Indian
strategic cooperative partnership.
Dai said that over the past few years, ChinaIndia relations have seen great and fast
development, which has brought about substantial
benefits to the two peoples.
Looking into the future, China and India have
great potentials for developing relations and wide
perspective for cooperation, said the state councilor.
Dai also expressed his wish that the two
countries follow the direction of developing friendly
relations and work for greater cooperation aimed
at win-win situation for both countries, while
realizing greater exchanges between the two
peoples and creating a beautiful future for the
relations of the two countries.
Dai also pointed out that China and India have
a history of border talks for 30 years and eight years
of talks between special representatives, which
have achieved positive progress and played a
major role in increasing understanding and trust,
safeguarding peace and tranquility on the border
areas and promoting bilateral relations in general.
He expressed his hope that the two sides follow
the instructions of the leaders of the two countries,
make great efforts to find a suitable solution to the
border issue, while holding to the strategic and
political height of views on developing the overall
bilateral relations.
Dai noted that the BRICS summit will be held
in India this year and China will support and
coordinate with India in hosting the summit.
China, India Hold 15th Round of Special Representatives
Talks on Border
From January 15 to 17, 2012, the 15th Round
of China and India Special Representatives Talks
on Boundary Questions was held in New Delhi.
Chinese Special Representative, State
Councilor Dai Bingguo and Indian Special
Representative, National Security Advisor
Shivshankar Menon had a candid and in-depth
discussion on issues related to maintaining peace
and tranquillity in border areas of the two
countries.
Both sides expressed willingness to carry
forward the process of framework negotiation
under the agreement of political guidelines in
resolving boundary questions, seeking fair and
proper solutions acceptable to both sides.
Exchanging views on the framework of
resolution, the two sides decided to sum up the
record agreed upon since framework negotiation
began, and confirm in a proper manner so as to
provide guidelines for future negotiation.
The two sides reiterated their efforts in
maintaining peace and tranquillity along their
common borders before the resolution of boundary
questions.
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China, India Sign Pact on Border Consultation,
Coordination Working Mechanism
New Delhi Jan. 17 (Xinhua) — China and India
signed an agreement here Tuesday on establishing
a working mechanism for consultation and
coordination over their border issues.
The agreement was signed by China’s Assistant
Foreign Minister Liu Zhenmin and Indian
Ambassador to China S. Jaishankar on behalf of
their respective governments.
The agreement is believed to help strengthen
bilateral cooperation on border affairs, and benefit
the joint effort to maintain peace and tranquillity
of their borer areas.
Under the agreement, the working mechanism
will be headed by officials at director general level
from China’s Foreign Ministry and at joint
secretary level from Indian External Affairs
Ministry, and will be composed of diplomatic and
military officials of the two sides.
The major task of the mechanism is to deal with
border related affairs so as to maintain peace and
tranquillity in the border areas.
The mechanism will address issues and
situations that may arise in the border areas that
affect the maintenance of peace and tranquillity
and will work actively towards maintaining the
friendly atmosphere between the two countries. It
will not, however, discuss resolution of the
boundary question or affect special representatives
mechanism.
The working mechanism will study ways and
means to conduct and strengthen exchanges and
cooperation between military personnel and
establishments of the two sides in the border areas.
It will provide a proper channel and platform
facilitating information exchange and
coordination, so that border related affairs can be
handled in a timely and effective manner at the
diplomatic level. The mechanism will help enhance
mutual trust, ensure peace and stability in the
border areas, thus creating favorable conditions
for resolving boundary questions through
negotiations and promoting bilateral ties.
Dai Bingguo Delivers Speech on China-India Relations
On the evening of January 16, 2012, Indian
National Security Advisor Shivshankar Menon
hosted a welcome banquet for visiting Chinese
Special Representative for Sino-Indian Talks on
Boundary Issues and State Councilor Dai Bingguo.
Dai said at the event that Sino-Indian relations have
evolved beyond simple bilateral relationship into
a strategic partnership of global weight. The two
countries should play greater role in the forming
of a new world political and economic order based
on fairness and reasonableness.
Over the past several years, the meetings of
Special Representatives of China and India on
Sino-Indian Boundary Issues have contributed to
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the maintenance of peace and tranquility on the
border areas of the two countries, as well as the
development of bilateral relations, said Dai. He said
China-India relations have achieved great
development over the past few years and have
huge potentials for further development and wide
perspective of cooperation. Dai said the world is
experiencing huge and profound changes at
present. This, he said, is providing a rare
opportunity for both China and India to engage
in their respective development and common
development. Dai called on both sides to
emancipate their mind, pioneer into new horizons
of cooperation and focus the attention to the
maximum limit of the 2.5 billion people of the two
countries on how to develop better the friendly
relations of the two countries. He also said China
is ready to work with Indian friends for the greater
development of bilateral relations and greater
cooperation between the two countries with the
purpose of benefitting the two peoples.
Menon expressed welcome to Dai and his
entourage to visit India and join the 15th round of
India-China Special Representatives Talks on
Boundary Issues. He said that over the past few
years, the agendas of the India-China Special
Representatives Talks on Boundary Issues have
kept widening, which has pushed forward
development of bilateral relations and cooperation
in international affairs between the two sides.
Menon also expressed his confidence that positive
results will come out from the current round of
talks.
II. LECTURE ON CHINA-INDIA RELATIONS
Chinese Ambassador Zhang Yan’s Speech at the Lecture on
China-India Relations
(New Delhi, January 9, 2012)
H.E. Mr. Shivshankar Menon, National Security
Advisor,
Distinguished Guests,
Ladies and Gentlemen,
Good evening. At the outset, I’d like to extend
warm welcome and belated New Year’s greeting
to all of you. It’s indeed a great privilege for me
together with National Security Advisor Mr.
Menon to share our views with you on how to
advance China-India relation which undoubtedly
is one of the most important and multifaceted
relations in the world today.
To begin with, I would like to have a glimpse
of the past year first.
2011 is no ordinary year for China–India
relation. In spite of the complicated international
and regional situation, our bilateral relations
maintained a sound and steady growth with
cooperation and interactions unfolding in an allround manner. We have also successfully
concluded the Year of China-India Exchange
announced by two sides during the Chinese
Premier Wen Jiabao’s visit to India in December,
2010. To take stock of the year, we have seen a
cluster of positive developments in our bilateral
relations.
First, active high level interactions have visibly
enhanced our mutual understanding and trust.
Last year, Chinese President Hu Jintao and Premier
Wen Jiabao had fruitful meetings with Indian
Prime Minister Manmohan Singh respectively
during BRICS Summit in China and the East Asia
Leaders Meetings in Indonesia. Two sides had indepth discussions on issues of mutual interest and
reaffirmed commitments to deepening the strategic
and cooperative partnership.
Second, provincial and state level exchanges
have become new highlights of bilateral relation.
Successful visits by Governors of Sichuan,
Guangdong and Gansu provinces and
Chairman of Xinjiang Autonomous
Region of China to India and Chief
Ministers of Bihar and Gujarat of India
to China produced positive results in
economic and cultural cooperation,
bringing the local governmental
cooperation into the overall picture.
Third, economic and trade
cooperation maintained a robust growth
and becomes a salient feature of our
bilateral ties. China-India two-way
trade in 2011 has touched new height.
According to the estimation, during the
11 months of this year the trade volume
reaches 67 billion USD, up 21.8 per cent
year on year and is expected to exceed 70 billion
USD for the whole year. The first branch office of
Industrial and Commercial Bank of China opened
in Mumbai last year, marking a new milestone in
financial cooperation. To settle the trade account
in RMB and Rupee is another important move by
two countries to facilitate bilateral economic
cooperation. Mutual investments are also gaining
new momentum. One recent example is TBEA
Corporation, the largest special transformer
producer of China, has signed a 400-million USD
agreement with an Indian company to invest in
Gujarat to put up a factory for manufacturing
transformers for power projects in India.
Fourth, new headway has been made in
institutionalization of bilateral cooperation. The
newly established China-India Strategic Economic
Dialogue held its first round meeting in Beijing
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September last year. China-India CEO Forum is
also in the making. At the same time, the existing
mechanisms such as the fifth China-India Financial
Dialogue, the fourth China-India Defense and
Security Talks and consultation on counter
terrorism were successfully held in Delhi and
Beijing last year. These new and old mechanisms
have helped to enhance mutual trust and deepen
economic cooperation between two countries.
Fifth, cooperation on international and regional
issues has acquired new momentum. Two
countries maintained close consultation and
worked vigorously within the framework of UN,
WTO, G20 and BRICS on issues such as climate
change, reform of international financial
institutions, Doha Round Trade Talks as well as
issues related to the situation in West Asia and
North Africa. Two countries have played
constructive role in the proper settlement of
relevant issues and defending the interests of
developing countries.
Sixth, people-to-people exchange has added
new vitality to our relation. The 500-member
Indian Youth delegation visited China last
September and were warmly received by Premier
Wen Jiabao in the Great Hall of People. The Year
of Exchange was successful and colorful. Events
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like “Treasures of Ancient China” exhibition,
Sichuan Week, Yunan Acrobatics Troup
performance and cultural activities like “A Grand
Stage for China-India Youth Traditional Culture
Exchange” were organized in India and China
respectively, creating cross-culture dialogues
between two ancient civilizations. China has also
provided financial support to the reconstruction
of Nalando University.
The performance of our relationship in the year
2011 is impressive and fruitful. More importantly,
it has demonstrated the following salient features.
First, China-India relation is anchored on a
more solid political base than before. It is
encouraging to see that the leaders of two countries
have viewed our relations from a long-term and
strategic perspective. They have given increasing
importance and attention to our relationship
which provides strong political foundation for the
development of our bilateral relations.
Furthermore, I have sensed a growing consensus
view in favor of developing a sound and mutually
beneficial relation with China among all political
parties and general public in India. From the
Chinese side, to build a stable and mutually
beneficial relationship with India is the set policy
of Chinese government. President Hu Jintao stated
on many occasions that India is an important
neighbor of China. China is ready to work with
India to maintain the sound momentum for further
advancement of the China-India Strategic and
Cooperative Partnership and for the common
interests of two countries.
Second, China-India relation has become more
substantive. Both countries pursue an independent
foreign policy and share growing common
interests. Today, China-India relation is developing
in a comprehensive manner and has acquired
strategic significance. Both countries not only enjoy
growing cooperation in economic field, but also
work closely in political and security fields, brining
tangible benefits to our people. On issues directly
affecting our interests as well as global situation,
such as climate change and issues related to the
West Asia and North Africa, two countries worked
constructively and effectively to defend the interests
and rights of our two countries as well as that of
all developing countries.
Third, China-India relation holds great
potential. As two fast growing economies, China
and India provide opportunities to each other. In
spite of the financial and debt crisis in US and
Europe, China and India enjoy stability
domestically and boast a relatively rapid economic
growth. With 2.5 billion populations, huge
markets and rich human resources, China and
India are regarded by the international community
as powerhouse for world economy and are
expected to play a bigger role in the reform of
international economic and financial governance
as well as in the global economic recovery. Facing
with similar challenges and historical tasks, China
and India are complimentary to each other and
enjoy certain degree of synergy. Two countries are
partners of cooperation, and partners for growth
and prosperity. China’s development provides
opportunity to India, so does India’s development
to China.
Fourth, China-India relation has grown
matured. We are fully aware of the fact that there
are differences and challenges left over by the
history in our relation. But we know much better
how to manage them. We are keenly aware that
cooperation between the two countries benefits
both and confrontation only hurts each other. As
two Asian neighbors and fast growing economies,
China and India share more common interests than
difference. Both have adopted a “looking forward”
approach and are trying their best not to let the
historical burdens to stand in the way of our
cooperation. When we are facing problems, we are
now more than willing to engage each other in
dialogue and consultation to diffuse the risk. As to
the perceived competition between the two
countries, so long as it is a fair and friendly one,
we also look at it in a positive way. As Indian
Prime Minister Mamnohan Singh and Chinese
Premier Wen Jabao pointed out that the world is
large enough for both China and India to develop
and prosper. And there is enough room for two
countries to cooperate.
Here I must point out that not every country
in the world is happy to see China and India going
closer and prospering together. Some even try to
drive wedge between us. I must point out again,
China and India’s rising together is an irreversible
historical trend that no force in the world can stop
it. In spite of all kinds of prophecies with illintention, China-India relation takes its own
course and moves ahead, because two countries
know where their national interests lie and how
to handle their relations. Our cooperative relation
poses no threat to others and is not developed at
the expense of other countries’ interests.
2012 has just arrived and the traditional
Chinese New Year, the year of dragon will come
soon. In Chinese culture, it is the most auspicious
time to make planning. As Chinese saying goes, a
good beginning is crucial to a successful year. In
order to push the bilateral relations forward, we
should join hands and work in the following areas.
First, efforts should be made to further increase
political trust and enhance strategic cooperation.
Political trust is the very foundation of any bilateral
relation. To achieve this, two sides should maintain
the sound momentum of high-level exchanges and
interaction. Fully utilizing all existing mechanisms
to enhance the confidence and minimize the
suspicion and distrust. This year India will play
the host of the BRICS’ Summit. We should do our
utmost to make the best preparation to ensure a
successful and fruitful summit, thus giving positive
impetus to the cooperation of five countries as well
as to China and India relation. I can assure you
that China will closely coordinate and cooperate
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with India to ensure its success.
Second, more work should be done to upgrade
our economic cooperation. The global economy will
remain uncertain at least for some time. China and
India should optimize our own potentials and
ensure healthy development of our respective
economy. We should strive to meet the trade target
of 100 billion USD by 2015 set by our leaders. The
Chinese side is fully aware of the necessity to
narrow the trade gap between the two sides in
order to ensure the sustainability of bilateral trade
cooperation. China will take measures to increase
the import of Indian products which have market
demand in China. But our cooperation should not
be limited in trade only. To deepen our economic
cooperation, there is much room for us to explore.
Here I just provide some food for thought.
1. China and India should diversify trade
structure, expand the scope and items, and
increase the technical content and added value to
the products. At the same time, cooperation should
be expanded into financial, service and investment
sectors.
2. China and India should initiate policy
dialogue and coordinate our economic
development strategy in order to ensure steady
growth of respective economy. China started its
12th Five Year plan last year. This year India will
launch its 12th Five Year plan. We should exchange
our experience and methods in changing the mold
of development, readjusting the economic
structure and building an environmentally friendly
and inclusive economy, with a view to achieving
the best results in our economic development.
3. mutual investments should be encouraged.
China welcome Indian companies to invest in
China and is willing to encourage more Chinese
companies, especially private companies to come
and invest in India. We hope the Indian side will
make additional efforts to create more conducive
environment for foreign investors, especially the
visa service. Two countries also can explore the
possibility of jointly investing in third countries.
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4. free trade agreement or regional trade
arrangement should be actively considered. FTA
and RTA are useful instruments to facilitate and
boost the bilateral trade in a bigger way. As first
step, two countries can work on a regional trade
arrangement and at the same time prepare the
ground for a full-fledged FTA.
5. efforts should be made to increase the
tourism cooperation. With large population and
rich tourist resources, two countries possess great
potential to become major tourist destination to
each other. Regrettably, last year altogether only
600 thousand tourists traveled between two
countries. Compared with 16.5 million between
China, Japan and Korea, the figure between China
and India is too small. I am of the view that more
Chinese tourists to India can also help narrow the
trade gap of our two countries.
Third, emphasis should be placed on
expanding people and culture exchanges. Peopleto-people exchange serves as a cornerstone of stateto-state relations and can play crucial role in
minimizing the so-called “trust deficit”. The
Chinese side will work with Indian side to
continue the annual youth exchange program and
expand the exchanges of journalists, media and
think-tanks. Cross-cultural exchanges can enrich
the knowledge of each other and foster closer ties
among peoples. We are ready to provide assistance
in Chinese language teaching in Indian secondary
school. And Indian students are most welcomed
to study in China. We will continue to lend our
support to the revival of Nalanda University.
Fourth, efforts should be made to enhance our
regional and international cooperation to promote
common interests. We should step up our
coordination and cooperation on regional and
international issues and work together to address
the challenges of global implications such as
climate change, food security, energy security,
reform of global financial system, counter terrorism
etc. to ensure those issues will be handled in line
with the interests of developing countries and in a
fair and equitable manner. China and India also
should promote the rights and increase the say of
developing countries in the global decision-making
process.
Fifth, properly manage the sensitive issues and
difference. Mutual understanding and mutual
accommodation are crucial in dealing with
differences and disagreements in our relations. We
should handle them from a long-term and strategic
perspective. So long as we follow the spirit of
equality and mutual respect, we will be able to
ensure a stable and healthy bilateral relation. It is
China’s policy to maintain good neighborly
relations with all its neighbors, including India. We
welcome India to play a more active role in
international and regional affairs. We are happy
to see the recent improvement of relations between
India and its neighbors. A stable South Asia is not
only a blessing to China and India, but also a great
contribution to the region and the world at large.
With the joint efforts of two countries, the situation
along the China and India border area is on the
whole peaceful. Efforts shall be made to do a good
preparation for the 15th Special Representatives
Meeting on China-India boundary issue. In order
to maintain the peace and tranquility of the border
area before the final settlement of the issues is
found, it is necessary for two sides to work out a
new mechanism to serve that purpose. We are
willing to work with Indian side to achieve that in
the near future.
China has declared to the rest of the world on
many occasions that it takes a path of peaceful
development and is committed to upholding world
peace and promoting common development and
prosperity for all countries. To this end, China has
sticked to an independent foreign policy of peace.
As President Hu Jintao reaffirmed in his New Year
Address few days ago, that China will continue to
advance our opening-up drive for win-win results,
and will unswervingly stick to the path of peaceful
13
development and the independent foreign policy
of peace. We will develop our friendly relations
and mutually beneficial cooperation with various
countries in the world following the Five Principle
of Peaceful Coexistence. An open and harmonious
China of prosperity and stability will make even
more contribution to the whole world.
Mr. Deng Xiaoping and Prime Minister Rajiv
Gandhi, two great visionary leaders of China and
India, shared a consensus view during their
historical meeting in 1988 that China and India
together can give the world new perspectives on a
new international order and that the Asian age
will arrive only when both China and India
developed. Today the evolution of the world
situation has proved their far-sightedness and
outstanding vision. China and India are on their
way to translating their vision into reality. What
shall we do now? The answer is clear and simple.
That is to cooperate. With the joint efforts of China
and India, we will not only create a brighter future
for our two countries and two peoples, but also
make fresh contribution to the world peace and
prosperity.
Thank you.
Developments in India-China Relations
By Shivshankar Menon, National Security Advisor of India
(New Delhi, January 9, 2012)
Your Excellency, Ambassador Zhang Yan,
Ladies and Gentlemen.
Thank you for inviting me to view the exhibition
on the India-China Year of Exchanges in 2011, and
to share thoughts on developments in India-China
relations.
Today India-China relations attract attention
beyond our two countries. International
developments and achievements in domestic
construction by our peoples in the last few decades
have given our relationship wider significance.
Relations between India and China and their new
equilibrium hold an important key to the emerging
economic and strategic landscape of Asia and, to
a certain extent, the world.
Let us look briefly at the context within which
we conduct our relations and then look at the
content of our relations today.
The basic facts are evident and well known.
India and China are the two most populous
nations on earth, are the two largest developing
countries, and are among the societies and
economies in the world that are transforming
themselves most rapidly. They are the largest and
the third biggest economies in Asia. China has the
distinction of being the second largest economy in
the world. The two countries are building a strong
domestic economic base and rapidly training
scientific and technical manpower. When much
of the world is reeling under recession or grappling
with political turmoil, our two countries have
managed to register reasonably healthy rates of
growth and maintain stability. We share a common
geopolitical space and similar socio-economic
aspirations for ourselves.
The future is less certain or evident. Uncertainty
in the international system is at unprecedented
levels. The economic and security situation facing
both India and China has become far more
complicated in the last few years. On the positive
side, thanks to sustained growth rates, high
14
savings rates and a prudent financial approach,
Asia and the developing world have witnessed a
greater accretion of relative economic power
following the financial crisis of 2008. In Asia, larger
economies like China, Japan, India, South Korea
and Indonesia, all members of the G-20, have
increased their ability to influence economic
outcomes. The BRICS process has also gained
ground. These are welcome developments.
At the same time, risks remain for economies
which are still developing. An early return to robust
growth and spending in the developed world are
necessary for world economic recovery. The US,
Europe and Japan still account for approximately
$20 trillion of consumption expenditure as against
about $2.5 trillion by China and India together. A
re-balancing of economic structures in our
countries in the face of such differences could be
difficult. More generally speaking, the relatively
benign external environment in the last two
decades is changing negatively and is threatened
by protectionism in the developed world.
World politics also faces new challenges. The
balance of power is in flux in Asia and the world.
As uncertainty rises, powers follow hedging
strategies. The mechanisms of strategic
communication and consultation and a common
security outlook are evolving slower than the
changes in objective reality.
Besides, both India and China are increasingly
linked to the rest of the world, through trade,
investment and their Diasporas. The impact of
changes in West Asia on our energy security, for
instance, is an example of how developments
further away from our shores also affect India and
China more and more profoundly. It is therefore
natural for us to take ever greater interest on global
issues..
Equally, global issues like climate change,
nuclear proliferation and cyber and space security
matter more to both India and China in this
globalised world as they influence our
development, peace and prosperity.
What does this context imply for India-China
relations?
Both India and China currently give the highest
priority to their domestic transformation, which
will take time. A peaceful periphery, a stable and
benign world environment and continued
prosperity among our economic partners are of
utmost importance to both of us. This will remain
so for quite some time. It is in our mutual interest
to work together, bilaterally and with other
partners, to reduce uncertainty and create an
international environment that is supportive to our
domestic transformation efforts. Economics and
development are not zero-sum games.
It is for this reason that we believe that there is
enough space for both India and China to realise
their development aspirations.
Economically, we are already integrated with
each other to an unprecedented extent. Our
bilateral trade reached over US$67 billion in the
first 11 months of last year, and China has
consistently remained our largest trading partner
in goods for several years. However, investment
flows between us have not kept pace with trade.
Indian investment in China worth a total of US$
433 million is spread over 676 projects, while
Chinese investment in India is worth nearly US$
300 million. There are several opportunities for
cooperation in developing infrastructure. India is
already one of China’s most important markets for
project exports, with a cumulative value of
contracted projects at US$ 53.5 billion and
turnover realized at US$ 24.6 billion.
What is less noticed is the range of contact
between our two societies. For instance, over 7,000
Indian students are studying in China today. This
scale of interaction never occurred before in history.
Naturally, the corollaries of such an
intensification of economic and social engagement
are issues of trade imbalance, diversifying the trade
basket and commercial disputes. The two
governments have taken several initiatives to make
our trade more balanced and harmonious, and to
facilitate and streamline our business engagement.
More remains to be done and we will learn by
doing. For instance in September last year we held
the first Strategic Economic Dialogue between
India and China which identified several areas of
promise for the future. Equally the business
communities and their Chambers need to take
advantage of growing opportunities while
sharpening competitive edge. I am convinced that
our business and economic engagement with each
other and with other countries will intensify as we
seek to overcome the prospect of sluggish recovery
in the traditional engines of growth in the world
economy.
Our Governments have common or similar
positions on the global development agenda, in
WTO and on climate change, which has made it
possible for us to work together internationally.
A few vocal experts in our two countries and
elsewhere argue that notwithstanding the
numerous cooperative elements in our economic
relations and approach to international issues,
India and China are bound to be strategic
adversaries. I find such determinism misplaced. It
ignores the successful experience and
demonstrated expertise of both governments in
managing differences and building on
commonalities for over three decades and
particularly since the Rajiv Gandhi visit to China
in 1988. It also ignores the wisdom of the leaders
of the two countries, who have consistently worked
to ensure that problems are managed in a mature
manner. The issue is whether we can continue to
manage the elements of competition within an
agreed strategic framework which permits both
of us to pursue our core interests. I see no reason
why that should not be so. Indeed I would go
further and say that the rapid changes in the
international situation today also create an
opportunity for India and China to work with
others to shape benign international outcomes.
The boundary question remains unresolved,
and there is no denying that it is a difficult issue.
15
However, a number of mechanisms have been put
in place to ensure that the border stays peaceful
while we seek a settlement of the boundary
question. On the settlement itself, we are in the
second stage of the three stage process of agreeing
principles, a framework and finally a boundary
line.
Similarly, on other bilateral issues of potential
difference there exist mechanisms of dialogue and
communication to address them. We appreciate
China’s assistance to us in tackling floods and
natural disasters in the downstream areas of our
shared rivers. There is a need to widen the scope
and deepen the level of our communication in some
areas. These include new challenges and new
issues in the changing context of our relations. I
am confident that we will do so.
Indeed, some security challenges, especially of
the non-traditional variety, are common to India
and China, and offer an opportunity to work
together. Both India and China face the challenge
of terrorism in our shared neighbourhood. It
requires common effort by all members of the
international community to tackle terrorism.
Energy is the key to domestic transformation
in both India and China, which is why both of us
have a common stake in energy security, and in
the freedom and security of transportation on the
global commons. We both have an interest in global
public goods like a peaceful order, freedom of the
seas and open sea lanes. We similarly need to
address issues of piracy with common resolve. As
important maritime nations, we can contribute to
each other’s maritime security by coordinating
approaches.
Asia’s security is interlinked across this great
continent. India has therefore argued for an open,
inclusive Asian security architecture. India and
China will have key roles to play in forging a new
compact for common and collective security for
Asia. We should also contribute within our
capacity to the global public goods that are
increasingly important to our well being.
16
The robustness of our bilateral relation will
depend on dialogue and communication so that
the potential for misunderstanding and
miscalculation is limited. This dialogue process
must not be limited to the two Governments.
Today, there are multiple stakeholders in our
relations as also multiple determinants of these
relations. Each of them, be it businessmen, media
or scholars of the two countries, has a responsibility
to take our relations to the desired level of
equilibrium. It is therefore absolutely essential that
they acquire an informed understanding of their
neighbours. Today, as both India and China
change fast, our understanding of each other needs
to keep pace. Both the quality and the scale of our
interactions have also grown so rapidly that we
need to learn new ways of dealing with the
relationship.
To conclude, India and China have
demonstrated an ability to deal with difficult issues
and to build a cooperative partnership based on
common interests. Its regional and global impact,
and its long term significance to our own
development, is what makes the India-China
relationship strategic in the true sense of the term.
I do hope that I have been successful in giving you
some idea of why I am confident that by working
together India and China will be able to
successfully face the challenges that the new
geopolitics are throwing up, and would best serve
their own national interests by further deepening
their strategic cooperative relationship.
III. DOMESTIC AFFAIRS
Chinese President Delivers New Year Address,
Stresses World Peace, Development
Beijing,
Dec.
31
(Xinhua) — In a New
Year’s address broadcast
on Saturday, Chinese
President Hu Jintao vowed
that China will continue to
develop friendly exchanges
with other countries and
positively participate in
international cooperation
on global issues.
While
addressing
domestic and overseas
audiences via state TV and
radio broadcasters, Hu
urged the acceleration of
the transformation of the
country’s
economic
development pattern and
structural adjustments
while making more
efforts in ensuring
people’s livelihood.
The country will
continue to balance
maintaining steady and
relatively fast economic
growth with adjusting its
economic structures and
managing
inflation
expectations, he said in
the speech titled “Jointly
Improve World Peace and
Development,” which
was broadcast by China Radio International,
China National Radio and China Central
Television.
China will stick to the guidelines of “one
country, two systems,” “Hong Kong people
governing Hong Kong,” “Macao people
governing Macao,” and a high degree of
autonomy in maintaining the long-term
prosperity and stability of Hong Kong and
Macao, Hu said.
“We will adhere to the principles of ‘peaceful
reunification’ and ‘one country, two systems,’
continue to push forward the peaceful
development of cross-Strait relations, ensure the
basic benefits for those of the Chinese nationality,
and endlessly work for the common benefit of
the compatriots on both sides of the Taiwan
Strait,” he said.
2011 was the first year of the country’s 12th
Five-Year Plan period (2011-2015). In the face
of complicated international situations and
arduous tasks in maintaining domestic reform,
development and stability, Chinese people united
and continued to push forward the opening up
and reform drive and the socialist modernization
construction, while maintaining steady and
relatively fast economic growth and making
progress in building a well-off society in an allaround way, he said.
China was also actively engaged in
international cooperation to boost the growth of
the global economy and financial stability, and
17
it was involved in resolving international and
regional issues, he said.
The world is currently witnessing
multipolarization and globalization, and various
countries are increasingly interdependent, Hu
said.
“However, the instability and uncertainty of
the world economic recovery is on the rise,
international and regional hot-topic issues have
cropped up one after another, and the peace and
development of the world faces unprecedented
opportunities and challenges,” Hu said.
China will stick to peace, development and
cooperation, adhere to independent foreign
policy, maintain world peace and promote
common development, Hu said.
The country will stick to the principle of
mutual benefit when opening itself up, he said.
“We will develop friendly cooperations with
all countries on the basis of the five principles of
peaceful co-existence, and we will continue to
actively participate in international cooperation
on global issues,” Hu said.
“I believe that as long as people from all
countries make efforts hand-in-hand, the world
will have a better future and the welfare of the
people of all countries will improve,” Hu said.
An article by Hu on boosting the country’s
cultural development will be published in Qiu
Shi (Seeking Truth), an official magazine of the
Communist Party of China Central Committee,
on Jan. 1.
Chinese Leaders Watch Peking Opera for New Year
Beijing, Dec. 29 (Xinhua) — President Hu Jintao
and other Chinese leaders watched Thursday
Peking Opera at the National Center for the
Performing Arts in a gala to celebrate the New Year.
Top legislator Wu Bangguo, Premier Wen
Jiabao, top political advisor Jia Qinglin, and other
leaders including Li Changchun, Xi Jinping, Li
Keqiang, He Guoqiang and Zhou Yongkang also
18
watched the performance, together with nearly
1,000 audience.
The programs include excerpts from classical
Peking Opera “The Fourth Son Visits His Mother”
and a series of other traditional works.
The 200-year-old Peking Opera, which
combines instrumental music, vocal performances,
mime, dance and acrobatics, was regarded as a
cultural treasure of China.
The United Nations Educational, Scientific and
Cultural Organization (UNESCO) has listed Peking
Opera as an intangible cultural heritage.
Chinese top leaders Hu Jintao, Wu Bangguo, Wen Jiabao, Jia
Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang
and Zhou Yongkang shake hands with artists as they enter
the venue of a Peking Opera show to celebrate the New Year
at the National Center for the Performing Arts in Beijing,
capital of China, Dec. 29, 2011. (Xinhua/Huang Jingwen)
Chinese top leaders Hu Jintao, Wu Bangguo, Wen Jiabao, Jia
Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang
and Zhou Yongkang pose for group photo with performers
after they watch a Peking Opera show to celebrate the New
Year at the National Center for the Performing Arts in Beijing,
capital of China, Dec. 29, 2011. (Xinhua/Ju Peng)
Legislature Reviews Government Reports
Beijing, Dec. 28 (Xinhua) — The National
People’s Congress (NPC) Standing Committee,
China’s top legislature, heard Wednesday
government reports on education reform,
tourism industry and rural land contracts.
Zhang Ping, head of the National
Development and Reform Commission (NDRC),
said the government will focus on raising
people’s incomes and improving their economic
expectations in a bid to expand domestic
demand, especially household consumption.
Zhang reported the progress of accelerating
the shift of the economic growth mode to the
legislative session attended by 144 members of
the NPC Standing Committee, including
Chairman Wu Bangguo.
Contributions of domestic consumption to
economic growth remained limited. Although
retail sales jumped by 15.5 percent and 18.3
percent in 2009 and 2010 respectively, compared
to the previous years, the final consumption
expenditure as a percentage of gross domestic
product was in decline, Zhang said.
He called for enhanced environmental
protection and further energy saving and
emissions cuts, saying that the eco-system
remains fragile and energy consumption high
despite the positive achievements were made in
the 11th Five-Year Plan period from 2006 to 2010.
While commenting on tourism industry,
19
Shao Qiwei, head of the National
Tourism Administration, said that China
has 23,315 travel agencies, among which
1,387 are able to operate outbound tours
to overseas.
The number of star-rated hotels has
reached 13,908, including 607 five-star
hotels, bolstering the tourism
infrastructure, according to the report.
Shao said that the country will focus
on maintaining market order, promoting
service quality and developing tourism
Wu Bangguo (2nd L), chairman of the Standing Committee of China’s
resources in the future.
National People’s Congress (NPC), attends the third plenary meeting
In a report on the implementation of of the 24th session of the 11th NPC Standing Committee in Beijing,
the law on rural land contracts, capital of China, Dec. 28, 2011. Lu Yongxiang, vice-chairman of the
NPC Standing Committee, presided over the meeting. (Xinhua/Fan
Uyunqimg, vice chairperson of the NPC Rujun)
Standing Committee, said that the
occupation of farmland in road and railway
country is facing a stern challenge of farmland
construction, Uyunqimg said.
protection, as many construction projects are
Among some local governments, illegal landencroaching on arable land and exceeding the
grab conduct, such as exploration against
scale envisaged in the country’s land-exploration
relevant regulations and non-transparent
plan.
distribution of compensation, has violated the
The most outstanding problem is the illegal
rights of farmers, she said, urging greater
transparency and supervision in this
area.
A report submitted by the Ministry
of Education stated it would continue
working
with
the
General
Administration of Press and
Publication to strengthen regulations
on editing, printing and distributing
reference books for students.
Education Minister Yuan Guiren
asked education departments at all
levels not to force students or schools
to purchase reference books, and
The third plenary meeting of the 24th session of the 11th National People’s schools not to force students to buy
Congress (NPC) Standing Committee is held in Beijing, capital of China,
Dec. 28, 2011. Wu Bangguo, chairman of the Standing Committee of the those books.
NPC, attended the meeting on Wednesday, which was presided over by
It is common for Chinese students
Lu Yongxiang, vice-chairman of the Standing Committee of the NPC.
in primary and middle schools to do a
(Xinhua/Fan Rujun)
20
large amount of after-class study and tests to get
better exam scores, which has resulted in a
booming market for reference books and test
books.
All 8,043 Suggestions Made at China’s
Top Legislature Receive Feedback
Beijing, Dec. 28 (Xinhua) — The 8,043
suggestions Chinese legislators made at the annual
session of the nation’s top legislature in March have
received feedback, a report said Wednesday.
These suggestions have been given to 177
government departments and public institutions,
said He Yehui, vice secretary general of the
Standing Committee of the National People’s
Congress (NPC), whose bimonthly session is
running from Dec. 26 to 31.
These departments and institutions have solved
or are planning to deal with 77.2 percent of all
these suggestions, and have achieved positive
effects in boosting development and improving
people’s livelihoods, He said in a report to the
session attended by 134 NPC Standing Committee
members, which included Chairman Wu Bangguo.
In addition, the NPC committees discussed 566
motions raised by legislators at the annual session
in March.
According to the Chinese Constitution, NPC
deputies and members of the NPC Standing
Committee can submit motions and proposals that
are within the respective functions and powers of
the NPC and its Standing Committee.
A motion will be legally binding when it is
adopted while a proposal is not.
According to the Organic Law of the NPC and
the NPC’s rules for the discharge of its duties, a
motion can be raised by the presidium of the NPC,
the NPC Standing Committee, special committees
of the NPC, the State Council, the Supreme
People’s Court, the Supreme People’s
Procuratorate, a provincial-level delegation (of
deputies) to the NPC, or a group of at least 30 NPC
deputies.
Agriculture Still Vital to China
Beijing, Dec. 28 (Xinhua) — Chinese Vice
Premier Hui Liangyu said Wednesday China must
avoid mishaps in supply of major farm produce
because agriculture is vital to ensure stable price
levels, fast economic growth and social stability.
Hui said the agricultural sector has witnessed
continuous, comprehensive and faster
development this year, which has played a key role
in curbing inflation and maintaining social
stability.
“We will promote agricultural modernization
as we push forward industrialization and
urbanization,” Hui said at the annual central
conference on rural work that concluded
Wednesday in Beijing.
Scientific and technological advancement and
transformation of the agriculture growth pattern
will be the key and fundamental solutions to
developing a modern agriculture, as environment
and resources impose greater constraints, Minister
of Agriculture Han Changfu said.
The vice premier also highlighted the effective
supply of farm produce, fiscal spending on
infrastructure building, and farmers’ livelihoods
as the major fields on which the country will work
next year.
Government data showed grain output rose to
record high 571.21 million tonnes this year. The
figure represented a year-on-year increase of 4.5
percent and marked the eighth consecutive year
of growth for the country’s grain output.
It also marked the fifth straight year that
China’s total grain output exceeded 500 million
tonnes, which indicated a more consolidated
foundation for food security in the world’s most
populous nation.
Han, however, warned that rising labor costs,
more expensive production materials such as diesel,
and limited space to expand crop acreage all
impose tough challenges.
Han said the country sought to maintain its
grain output at a level above 525 million tonnes
next year by stabilizing the total acreage for growth
of grain crops and enhancing yield rate.
“Any slight failure in agriculture will hamper
the country’s economic development and social
stability,” Premier Wen Jiabao said Tuesday at the
conference.
Wen also said that agricultural work is of
21
particular significance next year, faced with the
complicated macroeconomic condition and the
dual pressures of an economic slowdown and a
rising inflation. Meanwhile, he urged more efforts
to be taken to protect farmers’ rights in land
properties.
Gan Zangchun, a state-land supervisor with
the Ministry of Land and Resources, said land
requisition must be reformed to ensure farmers’
rights as rapid urbanization has given rise to
frequent land disputes in recent years.
To guarantee agricultural production, the
country’s fiscal spending on water-related
infrastructure surged 43.8 percent year-on-year to
216.3 billion yuan (34 billion U.S. dollars) during
winter 2010 and spring 2011, an official with the
Ministry of Water Resources said.
The spending will further rise 10 percent to
258.4 billion yuan during this winter and spring
next year.
A finance official said earlier that fiscal
spending of the central government on agriculturerelated projects and farmers is likely to top 1.04
trillion yuan this year, which represents a 21.3percent surge compared to that last year.
Apart from expenditures on construction of
agricultural infrastructure, more subsidies will be
given to help impoverished farmers. This year,
around 141 billion yuan of funds were deployed
to subsidize farmers to purchase materials such as
machinery and improve crop varieties.
More Chinese Farmers Benefit from
Transfer of Land-use Rights
Beijing, Dec.28 (Xinhua) — Perhaps the days
when hundreds of millions of Chinese migrant
workers had no choice but render their land
desolate to find jobs in the city are gone.
In 2011, more and more have benefited from
transferring, leasing, or mortgaging land-use rights,
22
said Uyunqimg, vice chairperson of the Standing
Committee of the National People’ s Congress
(NPC), China’s top legislature, in her report
Wednesday on the implementation of the law on
rural land contracts.
A total of 207 million mu (13.8 million hectares)
has been involved in land-use transfers in 2011,
accounting for 16.2 percent of the total area of
contracted arable land, according to the report.
Under China’s existing land ownership
structure, rural collectives own the land. The
collective, often a village committee, distributes
land-use rights to households on 30-year
“household management” contracts.
In October 2008, the central government issued
a landmark land policy that allowed farmers to lease
contracted farmland or transfer land-use rights.
According to Uyunqimg, 229 million
households joined the “household management”
contract by the end of 2011.
The top legislature sent a team to ascertain how
a law on rural-land contracts has been
implemented in order to prevent farmers’ land
rights from being infringed.
Wu Bangguo, chairman of the NPC Standing
Committee, said in a written comment that the
inspections are aimed at helping protect farmers’
rights in the land-contract system, maintain the
system’s stability, and strengthen the management
and services regarding the transfer of farmers’ land
contract management rights.
The team went in six separate groups to the
provinces of Hebei, Jilin, Anhui, Shandong, Hunan
and Gansu from August to October.
Chinese Defense Department, Army Continue to
Conduct Foreign Exchanges in 2012
Beijing, Dec. 28 (Xinhua) — The Chinese
defense department and army will actively carry
out exchanges and communication with foreign
countries next year, Defense Ministry spokesman
Yang Yujun said here Wednesday.
This year’s military exchanges and cooperation
with foreign countries were conducted in a
comprehensive, multi-faceted and multi-level way,
and positively contributed to China’s diplomacy
and the modernization of its armed forces, Yang
said at a press conference.
He said China’s military diplomacy enjoys an
active, pragmatic and efficient momentum and
sees frequent high-level contacts with foreign
countries.
According to Yang, China in 2011 received
more than 50 major foreign military delegations.
China also held defense consultations and
security talks with eleven countries this year,
including Russia, Pakistan, Turkey, Germany, the
United States and India.
In 2011, China’s armed forces conducted eight
joint drills or training with the army from countries
such as Indonesia, Belarus and Venezuela, and
carried out emergency rescue and relief work in
seven countries, including Japan, Afghanistan,
Kazakhstan and Thailand, he said.
Yang said this year the Chinese army actively
took part in dialogue within multi-lateral
frameworks, including the Shanghai Cooperation
Organization
The Chinese army also participated in a UN
peacekeeping operation, escort mission in the
Gulf of Aden, and sent a naval hospital ship for
a four-country Latin American visit, he added.
23
Revenues of China’s Customs Duties Top 1.6 Trl Yuan
Beijing, Jan. 12 (Xinhua) — Revenues from
customs duties in China jumped 29 percent yearon-year to more than 1.61 trillion yuan (around
256 billion U.S. dollars) last year, Yu Guangzhou,
chief of the General Administration of Customs
said Thursday.
Yu ascribed the revenue surge to the higher
prices of imported commodities, which rose 13.8
percent, Yu said.
Prices of imported crude oil, iron ore, and
soybean, for example, were up 36.7 percent, 29.3
percent, and 26.4 percent, respectively. The price
gains of imported commodities directly resulted in
an increase of 210 billion yuan to the revenues,
according to the customs authority.
Meanwhile, the nation’s customs upped the tax
on products made by energy-intensive and
polluting enterprises. Income from tax collections
upon such export products rose 45.7 percent to
19.08 billion yuan.
A government white paper released in
December said that by July 2010 China had granted
zero-tariff treatment on over 4,700 commodities
from 36 least developed countries that have
diplomatic ties with China. The country’s average
tariff level has also been lowered from over 15
percent to less than 10 percent since its entry to
the WTO.
In efforts to promote balanced trade by boosting
imports, China will keep import tariffs at a low
level this year, with average tariffs on more than
730 categories of imported goods at 4.4 percent in
2012.
China’s Reading List Reveals a Few Surprises
China Daily
Beijing, Dec. 30 — 2011 witnessed dramatic
changes in the country’s publishing and reading
scene. With the rise of e-publishing, traditional
publishers faced the real danger of losing out in a
new era, as highlighted by the theme of two key
publishers’ gatherings.
The Beijing International Publishing Forum and
China Book International’s Foreign Experts
Seminar - both staged in August - focused on epublishing.
At the same time, traditional bookstores are
closing down, while others struggle to survive.
The good news is that the number of readers is
on the rise.
Writers’ Rich List producer Wu Huaiyao says
that’s judging from his fieldwork in publishing,
more Chinese are habitual readers, thanks to the
adoption of e-reading devices.
As for the literature itself, Chen Fumin, with
the Chinese Academy of Social Sciences, says
established writers are more concerned with down
to earth topics relevant to society.
“Some of them are really as good as the older
generation,” Chen says, of younger writers. “They
just need time to be better known.”
Top 10 Books (in alphabetical order)
China in Revolution: The Road to 1911
By Liu Heung Shing
(World Publishing Corporation)
Pulitzer-winning photographer Liu Heung
24
Shing pays tribute to the 1911
Revolution to celebrate its 100th
anniversary this year.
China Shock
By Zhang Weiwei
(Shanghai People’s Publishing
House)
The author, a Geneva-based
researcher of international
relations, was formerly China’s
top leaders’ translator/
interpreter. Zhang expands the
ideas of the “China Model” and
concludes “no other countries
have made the people better off
quicker than China”.
Dead End, third book of the
Three Body Trilogy
By Liu Cixin (Chongqing
Publishing House)
Hailed as the first writer of
Chinese science-fiction, Liu Cixin
ends the trilogy about a Chinese
scientist saving the world from
being flattened into two
dimensions.
Divine Redolence
By Wang Anyi
(People’s Literature Publishing
House)
The novel reflects Chinese
folk life in Shanghai through the
rise and fall of the Shen family
during the late Ming Dynasty
(1368-1644).
Inmate Lu Yanshi
By Yan Geling (Writers’
Publishing House)
The latest novel by the
Chinese-American writer is based
on her grandfather and was a
work of self-discovery.
My Village, My Country
By Xiong Peiyun (New Star
Press)
Taking his hometown,
Xiaobao village in Jiangxi
province, as a sample,
columnist Xiong Peiyu n
explores China’s rural villages
a n d w h e r e t h e c o u n t r y is
heading in this essay collection.
Old Kiln
By Jia Pingwa
(People’s Literature Publishing
House)
The author reveals in the
novel the trajectory of the
“cultural revolution” (1966-76) at
a mostly grassroots level. It was
awarded “Best Novel of the
Year” by the prestigious Dangdai
magazine.
Record of Zhu Rongji’s
Speeches
By Zhu Rongji
(People’s Publishing House)
The four-volume book is a
collection of Zhu Rongji’s talks
from 1991 to 2003, when he
served as the vice-premier and
premier of the country. Marked
by his signature bluntness, the
book reveals untold stories of
China’s social, economic and
political reforms that Zhu was
leading.
25
Southern Spring
By Ge Fei
(Shanghai Literature and Art Publishing House)
Southern Spring centers on the life of a middleaged couple, poet Tan Duanwu and lawyer Pang
Jiayu. Their spiritual quest over the past two
decades reveals problems confronted by
individuals in an era of dramatic changes.
Tiny Times 3.0
By Guo Jingming
(Changjiang Literature and Arts Press)
Guo Jingming is one of the country’s most
influential young writers. Tiny Times 3.0 centers
on four young people’s entangled lives in
Shanghai.
2011’s Top Three Translated Books:
China in Innovation:
The Chengdu Triangle
By John and Doris Naisbitt (Jilin Publishing House,
All-China Federation of Industry
and Commerce Press)
The futurist and author of Megatrends
examines the pioneering solutions of Chengdu in
urban-rural integration.
1Q84: Book 3
By Haruki Murakami
(Nanhai Publishing Ltd)
Murakami is a widely loved Japanese writer in
China. His new series, with a sci-fi touch, is
reviving interest among Chinese readers, following
his immensely popular Norwegian Wood.
Steve Jobs: A Biography
By Walter Isaacson (Citic Press)
The book is a timely publication after the
legendary Apple founder Steve Jobs’ death in
October, and is the only authorized version of Jobs’
life.
The list is based on other newspapers’ book lists,
and China Daily’s interviews with publishers and
critics.
Top 10 National Events in 2011
Beijing Review
Development Goals Defined
China’s 12th Five-Year Plan for National
Economic and Social Development (2011-15) was
approved by the National People’s Congress, the
country’s top legislature, on March 14.
Focusing on building a green economy, China
plans to cut energy consumption and carbon
dioxide emissions per 10,000 yuan ($1,576) of the
GDP by 16 percent and 17 percent, respectively.
Other key targets include maintaining a 7percent annual GDP growth on average, realizing
an urbanization rate of 51.5 percent, increasing
expenditure on research and development to 2.2
percent of national GDP, expanding pension
schemes to cover all rural residents and 357 million
urban residents, building 36 million affordable
apartments for low-income families and
conducting comprehensive reforms in monopoly
industries which will allow for more competition.
Party Anniversary Commemorated
A grand gathering marking the 90th
anniversary of the founding of the Communist
Party of China (CPC) was held in Beijing on July
1. Hu Jintao, General Secretary of the CPC Central
Committee, delivered a keynote speech.
26
Hu said that the CPC has
accomplished three major feats
since its formation: With reliance on
the people, completing a newdemocratic revolution to win
national independence and
liberation for the people; completing
the socialist revolution and
establishing the basic socialist
system; carrying out a great new
revolution of reform and opening
up, and creating, upholding, and
developing socialism with Chinese
characteristics.
Hu said that the CPC, now with
Shanghai Yangshan Deep-water Port (CHEN FEI)
a membership of more than 80
million, will “actively yet prudently”
October 18, adopting a decision on deepening the
carry out political structural reform in order to reform of China’s cultural system and promoting
achieve the Party’s fundamental goal, a situation the development of the cultural industry.
where the people are able to determine their own
A statement issued by the session said that
destiny, and where the CPC is able to fully tap the developing the cultural industry is a key priority
initiative of the people.
for the Chinese Government. According to the
statement, the country should not only provide its
Boosting Cultural Industry
people with a comfortable material life, but also a
The 17th Central Committee of the CPC healthy and rich cultural life.
concluded its sixth plenary session in Beijing on
More resources will be devoted to boosting
public cultural services and speeding
up the reform of the cultural industry,
according to the statement.
New Food Safety Regulation
A gathering commemorating the 90th anniversary of the founding of the
Communist Party of China is held in Beijing on July 1 (XINHUA)
The Ministry of Health announced
a ban on the production of two food
additives commonly used to “bleach”
flour on March 1.
The two additives, benzoyl
peroxide and calcium peroxide, were
banned amid public concerns that
China’s current food processing
techniques cannot mix the additive
evenly and excessive use of the
additive might become “a hidden
peril.”
27
The ban is part of China’s tightened
efforts to improve food safety.
National and local crackdowns on
food safety-related crimes have been
launched throughout the country.
Between January and October, courts
at various levels tried a total of 173
cases related to food safety and 255
people were sentenced to prison
terms.
In March, an investigation into the
safety of pork was launched in Henan
Province after several farms were
found using clenbuterol, a banned Dancers rehearse at Yinchuan Arts Theater in Ningxia Hui Autonomous
Region (WANG PENG)
chemical that makes pork leaner but
can be harmful to humans, in pig feed.
Eventually a total of 113 people received sentences under fire after a credibility scandal erupted on
for selling and using the chemical.
the Internet on June 21. Netizens were infuriated
In August, the police initiated a nationwide when, Guo Meimei, a 20-year-old micro-blogger
food safety campaign to curb the illegal production claiming to be the general manager of Red Cross
and sale of “gutter oil” or illegally recycled cooking Commerce, flaunted wealth by posting photos of
oil. By the end of November, more than 700 her extravagant lifestyle.
suspects had been detained during the
Although both Guo and the RCSC later denied
investigation of 128 cases.
having any ties to one another, further leaks
concerning poor accounting and waste at the
Damaged Charity Credibility
RCSC continued to flood the Internet.
The Red Cross Society of China (RCSC) came
Donations to charities in China have plunged
as a result of the scandal.
In response, the RCSC pledged to
increase transparency and establish
channels
to
allow
better
communication with the public.
The State Council released a
statement on October 19, saying that
the country will establish a social credit
system nationwide to create an honest
and trustworthy society over the next
five years.
A Space Breakthrough
A food safety regulator confiscates shoddy food products in a warehouse
in Shanghai on April 12 (PEI XIN)
China successfully concluded its
first space rendezvous and docking
mission, upon the safe return of the
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unmanned spacecraft,
manned space station by
Shenzhou 8, to the Earth on
around 2020.
November 17. China is the
Poverty Alleviation
third country to master
At a national poverty
space docking technology
alleviation meeting on
after the United States and
November 29, the poverty
Russia.
line in China’s rural areas
Launched from the
was raised to an annual
Jiuquan Satellite Launch
per-capita net income of
Center on November 1,
2,300 yuan ($359), up by
Shenzhou 8 successfully
more than 80 percent from
rendezvoused and twice
the 1,274 yuan ($199)
docked with the Tiangong-1
standard set in 2010.
space lab module on
The sharp increase
November 3 and 14.
brings China’s poverty line
Launched on September 29,
closer to the international
Tiangong-1 will remain in
standard of $1.25 a day,
orbit to await future docking
which was established by
attempts with Shenzhou 9
the World Bank in 2008. It
and Shenzhou 10 spacecraft
will make 128 million
in 2012. At least one of these
Guo Meimei (CFP)
people
eligible
for
two missions will carry
government anti-poverty
astronauts.
The 49-day space-docking mission paves the subsidies.
The Chinese Government has set the goal to
way for China’s establishment of a permanent
The Shenzhou-8 spacecraft docks successfully with the Tiangong-1 space lab module on November 3
(WANG YONGZHUO)
29
adequately feed and cloth the
country’s impoverished people by
2020. Their access to compulsory
education, basic medical care and
housing will also be ensured.
The State Council Information
Office released the Assessment
Report on the National Human
Rights Action Plan of China (200910) on July 14.
It says that all the measures
stipulated in the action plan, the first
of its kind in China that was
published in April 2009, had been
put into practice, and all the goals
A leaking rig at the Penglai 19-3 Oilfield (LUO SHA)
and tasks set out in the plan had been
fulfilled by the end of 2010.
“Over 50 percent of the targets concerning 19-3 Oilfield operated by ConocoPhillips China, a
people’s livelihoods were met ahead of time,” says subsidiary company of U.S. oil giant
ConocoPhillips, polluted around 6,200 square km
the report.
At present, the second National Human Rights of water in north China’s Bohai Sea, resulting in
Action Plan of China, which is expected to guide the country’s worst offshore maritime pollution
the country’s human rights work from 2012 to accident in history.
After an investigation into the cause of the
2015, is being formulated. The new plan will cover
economic, social and cultural rights as well as civil spills, the State Oceanic Administration said on
November 11 that the spills resulted from defects
and political rights.
in ConocoPhillips China’s production and
Worst Oil Spill
management faults. The company was accused of
Spills first reported on June 4 at the Penglai violating the original protocol of exploitation and
failing to take necessary precautions
when there was a high risk of a spill.
In the wake of the spills, legal
experts and environmentalists have
called for an emergency response
mechanism to tackle environmental
accidents.
On December 13, more than 100
Chinese fishermen filed a lawsuit
seeking total compensation of 490
million yuan ($76.6 million) from
ConocoPhillips China. They blamed
the oil spills for damaging their sea
The rebuilt Yingxiu Town in Wenchuan County, Sichuan Province
scallop and sea cucumber catches.
(LI QIAOQIAO)
30
Successful Wenchuan
Reconstruction
The Chinese Government
announced on May 10 that three
years after a devastating earthquake
in Wenchuan County, southwest
China’s Sichuan Province, official
reconstruction targets have basically
been met.
On May 12, 2008, an 8.0magnitude
earthquake
hit
Wenchuan. The number of dead and
missing totaled more than 80,000
people, and millions lost their
homes. Neighboring provinces, such
as Gansu and Shaanxi, were also affected.
At the end of September 2008, rescue and relief
work in the quake-affected area shifted its focus
toward reconstruction, and the Chinese
Government made a three-year plan for the area’s
redevelopment.
As of May 95 percent of reconstruction projects
had been completed, with the remainder to be
finished by the end of September.
By the end of April, more than 38,000 projects
of a total 41,130 had been completed at a cost of
885.1 billion yuan ($138 billion).
Aircraft Carrier’s Debut
China’s first aircraft carrier set out on its low-
China’s refitted aircraft carrier (XINHUA)
profile maiden sea trial on August 10 and returned
to port on August 14.
The vessel, an Admiral Kuznets class aircraft
carrier with a displacement of 58,500 metric tons,
was originally built by the former Soviet Union and
was formerly called Varyag. After the former Soviet
Union disintegrated in 1991 Ukraine, which had
the ownership of the unfinished Varyag, disarmed
the ship and removed its engines before selling it
to China.
The vessel has been totally refitted for its new
role as a research and training platform for the
Chinese military.
The aircraft carrier conducted its second sea
trial between November 29 and December 11.
Top 10 Economic Events in 2011
Beijing Review
Slower Economic Growth
China’s economy grew 9.1 percent in the third
quarter of this year, tapering off from 9.7 percent
in the first quarter and 9.5 in the second. The
slowdown is a result of voluntary quality-oriented
growth moderation and came along with the ease
of inflation pressures. The consumer price index
(CPI) fell to 5.5 percent in November, from July’s
peak of 6.5 percent.
Exports, which used to be the growth engine,
continued losing steam. In November, exports
totaled $174.46, with a year-on-year increase of
31
13.8 percent, the slowest growth since
February.
Tenth Anniversary of WTO Entry
December 11, 2011 marked the 10th
anniversary of China’s entry to the
World Trade Organization (WTO).
China became the WTO’s 143rd
member on December 11, 2001.
China’s total volume of exports and
imports ranked second in the world in
2010, up from sixth in 2001, becoming
the world’s second largest importer and
the biggest exporter.
Total tariff levels decreased from A worker uses an automatic welding machine in a factory in Zouping,
Shandong Province (XINHUA)
15.3 percent to 9.8 percent during the
past decade, reaching and exceeding the
Lower Income Tax
WTO’s requirement for developing countries.
China opened 100 service trade departments,
The amended individual income tax law,
close to the level of developed countries.
effective on September 1, raised the monthly tax
It has also amended its laws and regulations exemption threshold from 2,000 yuan ($313) to
in accordance with its WTO commitments. The 3,500 yuan ($547). It also lowered the minimum
Central Government has cleared more than 2,300 tax rate from 5 percent to 3 percent for people
laws and regulations as well as department rules. whose monthly taxable incomes are between 3,500
Local governments have cleared more than yuan and 4,500 yuan ($703).
190,000 local rules and regulations.
Under the new amendment, about 7.7 percent
of wage earners will have to pay taxes, down from
the previous 28 percent. The number
of income tax payers will be reduced
from 84 million to 24 million.
By readjusting the income tax rate
structure, the government will alleviate
tax burdens for the medium and lowincome population and increase taxes
on high-income individuals, also in
compensation to the rising cost of living
caused by inflation.
Local Bonds Issued
Containers at Shanghai Waigaoqiao cargo port (CHEN FEI)
In October, the Ministry of Finance
started a pilot program allowing local
governments in Shanghai and
Shenzhen and Zhejiang and
32
Guangdong provinces to issue bonds. It is the first
time that local governments have been allowed to
issue bonds.
The Central Government ordered that bonds
of the four local governments should not exceed
22.9 billion yuan ($3.61 billion) in 2011.
This move is expected to ease their financial
strains and curb fast-spreading risks of local
government debt. According to the National Audit
Office, local government debt totaled about 10.7
trillion yuan ($1.69 trillion) at the end of 2010,
accounting for 27 percent of the GDP in 2010.
Yuan Going Global
This year China has been stepping up its efforts
to globalize its currency, called the renminbi or
yuan.
On January 14 the central bank’s No.1
document of the year was devoted to allowing the
country’s qualified businesses and banks to settle
their overseas direct investment in the yuan. This
is considered a move that expands the Chinese
currency’s global reach from international trade
settlement to investment settlement.
On October 12 the People’s Bank of China, the
central bank, issued regulations about foreign
direct investment (FDI) settled in the yuan, another
move aiming at promoting cross-border use of the
yuan. Within two months, China has approved
16.5 billion worth yuan-denominated FDI.
On December 16 the China Securities
Regulatory Commission, the People’s Bank of
China and the State Administration of Foreign
Exchange jointly issued rules for pilot programs of
RMB Qualified Foreign Institutional Investors,
formally giving the green light to investment of
overseas renminbi funds at mainland securities
markets.
Hong Kong subsidiaries of fund management
companies and securities firms can use renminbi
funds raised in Hong Kong to invest in mainland
securities within a permitted quota, according to
the rules.
Meanwhile, the yuan exchange rate has been
increasingly driven by market demand. As of
November 4, when the yuan strengthened to 6.3165
against the U.S. dollar, the yuan had appreciated
4.6 percent against the U.S. dollar this year. But
from November 30 the yuan had weakened for 12
consecutive trading days. The fluctuations indicate
that the exchange rate of the yuan is
responsive to market demand and is
not being manipulated by the
government.
Home Purchase Limit
A bank clerk in Shandong Province counts renminbi and dollar notes
(CFP)
On January 26, the State Council
announced the toughest-ever measures
to tame the sizzling housing market.
Besides setting property price-control
targets, increasing the supply of
affordable housing and public rental
housing, increasing land supply and
stricter tax measures, the toughest
measure was home purchase limits in
large cities or cities where housing
prices are high or rise very fast.
On July 12 the State Council
required cities that had already
implemented home purchase limits to
continue to carry out related policies,
while second- and third-tier cities
whose home prices increased rapidly
must carry out necessary policies to
limit home purchases.
As 2011 comes to a close, purchase
limits are taking effect, as the housing
market has been rife with mounting
inventory, plummeting prices and
sluggish sales. According to the
National Bureau of Statistics, 49 cities
out of 70 major cities saw month-onmonth drops in new home prices in
November, compared with 34 cities in
October.
Premier Wen Jiabao said in November the
property market control measures will remain in
force to let the property prices fall to a reasonable
level.
Many cities including Beijing and Shanghai
have announced that the home purchase limit will
continue in 2012.
33
A housing complex in Shanghai (CFP)
are not faring well this year. Because of tightened
bank lending to deal with inflation, many SMEs
faced the risk of cash flow collapse. For those SMEs
that borrowed from private lenders with higher
interest rates the weakened overseas demand and
sluggish market became unbearable. From the
middle of the year a massive collapse of SMEs was
reported in export-oriented southeast coastal
Supporting SMEs
regions.
Small and medium-sized enterprises (SMEs)
A number of SME bosses in Wenzhou, Zhejiang
Province ran away to avoid debt.
According to the Xinhua News
Agency, from April to the end of
September, at least 90 company
owners in Wenzhou fled, causing their
companies to close. Twenty six of
those incidents occurred in September
alone.
To provide support to these
burgeoning businesses China revised
its standards for SMEs in July. One of
the most important breakthroughs of
the revision is the inclusion of a new
category of SMEs: micro enterprises.
Formulating new division standards
for SMEs aims at facilitating research
The production line of Jiangsu Nantong NTEC Textile Co. (CFP)
34
and the implementation of supporting policies for
SMEs, strengthening differentiated guidance and
promoting SME development.
On October 12 the State Council pledged
stronger financial and fiscal support to small and
micro enterprises. The State Council
required commercial banks to strengthen
lending to small and micro enterprises,
especially those whose credit limits are
below 5 million yuan ($785,000).
The Ministry of Finance announced on
December 9 that it will cut corporate
income tax by half for micro and small
enterprises from January 1, 2012 to
December 31, 2015.
counterparts since the implementation of the antimonopoly law in 2008.
Joys and Woes of High-Speed Rails
On June 30 the Beijing-Shanghai High-Speed
Anti-monopoly Investigation
November 9 will be a memorable day
in China’s anti-monopoly history. The
National Development and Reform
A bullet train makes its way to Nanjing South Station (CFP)
Commission (NDRC) began probing
China Telecom and China Unicom for
allegedly taking advantage of their dominant Railway, with a total investment of 220.9 billion
positions regarding broadband access to suppress yuan ($34.8 billion), started operations on its 1,318competition from rivals and charging high fees, km-long line. The railway cut the travel time
CCTV reported that day.
between the two biggest cities from 12 hours to
This is the first case involving large state- five.
owned enterprises. The two telecom giants, which
The Beijing-Shanghai High-Speed Railway can
control two thirds of the country’s broadband also accelerate the integration of the Bohai Sea Rim
business, will face penalties of up to 10 percent of and the Yangtze River Delta economic zones and
annual revenues if found guilty.
promote balanced, sustainable development of
Despite having the world’s largest Internet urbanization and the economy.
population of 485 million, China’s average
But tragedy stuck on July 23 when two highbroadband speed only ranks 71st in the world, speed trains collided on an elevated track near
while average costs are three to four times those of Wenzhou, Zhejiang Province, leaving 40 people
developed countries.
dead and 191 injured, causing China to reassess
Although the investigation is still in progress, its high-speed rail development.
the move may clear the way for the government
After the accident the Ministry of Railways
to broaden the scope of its anti-monopoly law. launched a nationwide safety check on its highPublic opinion has been critical of perceived speed railways to eliminate risks and lowered the
monopolistic practices among large companies. But speed of its high-speed railway service. Other lines
anti-monopoly cases have mainly involved foreign also joined the speed reduction. From August 28
companies’ mergers and acquisitions of domestic the top speed of the Shanghai-Hangzhou bullet
35
train dropped to 300 km per hour from 350 km
per hour.
In August and September inspections of 49
projects and 6,000 km of high-speed rail lines were
conducted.
On August 12, China’s state-owned train
maker, China CNR Corp. (CNR), recalled 54 trains
it supplied for the high-speed rail link between
Beijing and Shanghai to be investigated for
equipment failure.
New Financial Regulators
On October 29 China changed the top positions
at its three financial regulatory bodies: the China
Banking Regulatory Commission (CBRC), China
Securities Regulatory Commission (CSRC) and
China Insurance Regulatory Commission (CIRC).
Shang Fulin, former CSRC Chairman, was
appointed CBRC Chairman; Guo Shuqing, former
Board Chairman of China Construction Bank, was
appointed CSRC Chairman; and Xiang Junbo,
former Board Chairman of Agricultural Bank of
China, was appointed CIRC Chairman. Liu
Mingkang, former CBRC Chairman, and Wu
Dingfu, former CIRC Chairman, retired from their
former positions.
The three new chairmen face various challenges
such as maintaining stability of the financial system,
the yuan’s appreciation, local government debt and
IPO reform. Moreover, with the domestic real estate
market headed in a downward trajectory,
maintaining financial stability will play an active role
in stabilizing the economy.
Xiang Junbo
Shang Fulin
Guo Shuqing
Top 10 Cultural Events in 2011
Beijing Review
Gardening Expertise
The 2011 International Horticultural Exposition
was held in Xi’an, capital of northwest China’s
Shaanxi Province, from April 28 to October 22.
The 178-day expo showcased new
achievements and new products in the areas of
landscaping, horticulture, environmentally
friendly and energy-saving technology, and
hundreds of rare plants and ecological landscapes
from different areas and different climate zones
around the globe.
It was the third time a city on the Chinese
mainland has held the event. Kunming, capital
of southwest China’s Yunnan Province, hosted
the event in 1999 and Shenyang, capital of
northeast China’s Liaoning Province, was the
host in 2006.
36
Two folk artists performing
Chinese shadow puppetry (GUO
XULEI)
Chinese Names on UNESCO
Heritage List
After a decade-long application,
the West Lake Cultural Landscape of
Hangzhou, capital of South China’s
Zhejiang Province, was officially
admitted to UNESCO’s World Heritage
List by the World Heritage Committee
in Paris on June 24. West Lake became
the only lake recognized as a world
A sculpture decorated with plants and flowers at the park of the 2011
heritage in China, marking the International Horticultural Exposition in Xi’an, Shaanxi Province (JIAO
country’s 41st world heritage WEIPING)
recognition.
Relic Theft Crackdown
The West Lake is an outstanding model of a
cultural landscape, reflecting idealized fusion
On May 11, the Chinese Government pledged
between humans and nature.
to launch an eight-month crackdown campaign
In addition, Chinese shadow puppetry, a form in 17 provinces and regions to deal with the
of theater performed with colorful silhouette rampant relic theft that may threaten the safety of
figures made from leather or paper, accompanied state cultural relics.
by music and singing, was inscribed on UNESCO’s
This announcement was made days after the
List of Intangible Cultural Heritage of Humanity relic theft in the Palace Museum in Beijing on May
on November 27. It’s China’s 29th intangible 8. On that day, seven pieces of art from the private
cultural heritage on the UNESCO list.
Liang Yi Museum in Hong Kong were stolen from
the heavily-guarded Palace Museum, where they
were on display.
This incident alerted the public to the
rampant theft, smuggling and illegal
trading of cultural relics driven by high
profits in some places in China. Police and
cultural relic authorities also announced
the establishment of a national database
for relic theft crimes to facilitate future
investigations.
Free Access to Cultural Facilities
Two folk artists performing Chinese shadow puppetry (GUO XULEI)
The newly refurnished National Art
Museum of China opened to visitors for
free on March 2. The new museum,
covering an area of nearly 200,000 square
37
meters, is the largest museum in the
world.
In addition to the National Art
Museum of China, public art museums
at national and provincial levels also
stopped charging admission.
Meanwhile, all public libraries and
cultural centers are to have barrierfree, zero-threshold access by the end
of 2011 as part of China’s campaign
to offer the citizens free access to public
cultural facilities, which started on
February 10. Other levels of art
galleries are to be opened to the public
for free by the end of 2012.
The Palace Museum holds a press conference and apologizes for the exhibits
The Central Government plans to theft incident on May 11, 2011 (XINHUA)
provide special subsidies to such
facilities in less developed central and west China. Dwelling in the Fuchun Mountains, by Huang
In addition, local governments are required to Gongwang (1269-1354), was displayed in its
provide funds to art galleries and libraries at all entirety at an exhibition in the “National Palace
levels, enabling them to continue operating and Museum” in Taipei from June 1 to September 25.
This great cultural event across the Taiwan
improving services without relying on entrance
fees. Private investors are also encouraged to invest Straits attracted a flood of attention because it was
the first time for the two parts of the great work to
in or donate to museums and libraries.
come together since they were burnt apart 360
Landscape Reunited
years ago. For more than 60 years, half of the
The renowned Chinese landscape painting, painting has been kept in a museum in Hangzhou,
Visitors appreciate paintings at an art gallery in Wuhan, Hubei Province (DU HUAJU)
38
capital of South China’s Zhejiang
Province, while the other half has been
housed in the “National Palace
Museum” in Taipei. Its reunion also
symbolizes the end of the history when
the people separated by the Straits
didn’t see each other for decades.
Online Copyright Dispute
A group of 50 Chinese authors
posted an open letter online accusing
Baidu, China’s biggest search engine,
of stealing their work and infringing
copyright laws on March 15, the
Museum goers in Taipei appreciate the two parts of Dwelling in the Fuchun
World Consumer Rights Day.
Mountains (XINHUA)
They said Baidu Wenku, Baidu’s
online literary database, provided free
world.
download service of their works without paying
Cooling Down the Art Market
copyright royalties. They claimed Wenku was
damaging original Chinese literature. In response
Artwork prices hit new records at auctions this
to the accusation, Baidu Wenku deleted nearly 3 year after China became the world’s largest art
million potentially infringed items from its literary market in 2010. The artwork transaction volume
section.
this year is expected to more than double last year’s
Online copyright infringement has become a figure, powered by the country’s double-digit
prominent problem as everything goes digital in economic growth.
the information age. Among others, Baidu’s case
Behind the prosperity, however, a number of
has called for public awareness on and effective problems have plagued China’s art market for
measures of copyright protection in the virtual years. Auction companies sell fake artwork
without punishment. Unqualified
experts and art agencies offer unreliable
endorsements and certificates.
Counterfeiters grow in numbers. To
resolve these knotty issues, qualified
third-party artwork authentication and
valuation agencies have to be established.
While reinforcing supervision, the
authorities also need to toughen
legislative efforts to regulate the market
and curb artwork counterfeiting.
Cheaper Books Online
Fine blue and white porcelain vases of the Qing Dynasty (1644-1911)
(ZHAN YANHUI)
Threatened by much cheaper prices
at online marketplaces, brick and mortar
39
bookstores are disappearing in
cities.
While many bookstores have
gone out of business, the market
share of online booksellers has
continued to expand. In addition to
Dangdang and Joyo Amazon,
many online vendors have joined
the price war. 360buy began selling
books at the end of 2010. Online
sales of books and audio and video
products are expected to be worth
more than 500 million yuan ($78.75
million) in 2011.
Booklovers and bookstore
The bliss of hanging around in bookstores is disappearing as brick and mortar
owners are calling on the bookstores come under pressure from online book sellers (LIU XU)
government to save traditional
bookstores, because along with
year. While domestic box office revenue is expected
these bookstores, a lifestyle featuring the bliss of to reach 13 billion yuan ($2 billion), Chinese movie
hanging around in bookstores is disappearing. The theaters are adding eight more screens every day
Chinese Government is planning to include private nationwide, or about 10,000 screens in total by the
bookstores as beneficiaries of this policy to help end of 2011.
them survive the competition.
Thanks to increasing diversity and the fact that
more audiences go back to cinemas, some smallBooming Movie Market
budget productions find chances to glitter and
China’s movie market continues to grow this perform well at the box office.
Meanwhile, foreign film makers
are trying their luck in this
expanding market. While foreign
faces are increasingly seen in the
movie crew and cast of Chinese
productions, China has further
relaxed rules and regulations on
movie cooperation. Six countries
have so far signed cooperation
agreements on movie production
with China. The co-produced
movies are treated as Chinese films
for domestic distribution and are
exempt from quota control, and
are also protected in overseas
markets.
A scene from the Chinese version of Mama Mia! (XU ZIJIAN)
40
The Musical Season
The past summer offered an interesting variety
of musical performances. While the Chinese
version of Mama Mia!, one of the most popular
musicals in the world, tours China on a 200performance run, homegrown musicals are also
gaining ground.
Love U Teresa, an original musical about
influential Taiwanese Chinese pop singer Teresa
Teng (1953-95), has been staged in Beijing since
August 5. The Broken Bridge, a large-scale musical
featuring a cross-Straits love story spanning 60
years produced with funds from the Hangzhou
Municipal Government, was staged in the famous
tourism city in Zhejiang Province from September
15 to 22. Musicals for children, such as The Vagrant
Life of Sanmao and Sesame Street, were also piquing
the interest of younger audiences.
A real interest in musicals has been cultivated
through overseas productions and Chinese-version
reproductions. But musical professionals still have
to cope with challenges such as a lack of talent
and standards for producing quality musicals,
while finding investments and heading towards
profitability.
The Plan for 2012
— China aims to walk a fine line between maintaining stable growth,
rebalancing the economy and combating inflation next year
By Hu Yue, Beijing Review
For the Chinese economy, 2012
will be a year filled with
uncertainties. With the Western
world struggling with a fragile
recovery, China’s export growth has
taken a hit, with expectations of even
worse to come.
Domestically, concerns abounded
that the country has gone too far with
its monetary tightening, which may
in turn sap the country’s growth
momentum. This dark prospect has
placed an onus on policymakers to
fine-tune their macroeconomic
policies and steer the economy on a AFFORDABLE HOUSING: An affordable housing project under construction
in Shanghai (YAN DAMING)
steady course.
For 2012, China will adhere to
stable and consistent policies and retain its prudent annual Central Economic Work Conference
monetary policy and proactive fiscal policy—the (CEWC), China’s top-level economic meeting, held
macroeconomic outline was mapped out at the on December 12-14 in Beijing.
At last year’s CEWC, China pledged to take a
prudent monetary stance for 2011, marking a
switch from the moderately loose policy adopted
to counter the 2008 financial crisis.
Growth Woes
41
economic blows were smaller private firms that
have found it harder to secure bank loans than
state-owned enterprises. Reports have been
flooding media outlets that east China’s Zhejiang
Province, a cradle of the private economy, is
experiencing massive factory closures and
bankrupt entrepreneurs are disappearing to avoid
huge debts.
The purchasing managers index (PMI), a
barometer of manufacturing activities, slumped to
49 percent in November. This was the first time
that the index has dropped below the boom-bust
line of 50 percent in 33 months.”Judging from the
PMI figures, China is experiencing its most difficult
period since the global financial crisis in 2008 and
the situation demands the Chinese Government
loosens its monetary policies,” said Liu Ligang, a
researcher from ANZ Greater China.
The China Entrepreneurs Survey System, a
research institution under the State Council,
recently conducted a survey of more than 4,000
companies all over the nation, and 48.3 percent of
the respondents said they have come under intense
financial pressures because of the tightening
measures.
The People’s Bank of China, the central bank,
“The world economy is confronted with serious
headwinds, with global trade weakening and the
financial markets fluctuating,” said the CEWC
statement.
“Meanwhile, domestic downside risks are
looming for the economy, and some enterprises are
facing difficulties in operation,” it said. “The
inflation pressures remain and the financial sector
is hidden with potential dangers.”
“That means China must stay alert over the
uncertainties and prepare countermeasures,” it
added.
The Chinese economy is feeling the chill of
lackluster exports since the global economy remains
on a slippery slope in large part due to the twoyear sovereign debt crisis. The credit rating agency
Standard & Poor’s has recently put 15 euro zone
nations on “credit watch” due to deepening
economic and political turmoil in the region.
“If the global recession returns, China’s exports
may nose-dive 10-12 percent next
year, taking around 2.25 percentage
points off GDP growth, “ said the
Swiss investment bank UBS in a recent
report. “In addition, the ripple effect
will also filter through investments
and consumptions.”
UBS trimmed its forecast for
China’s economic growth in 2011 to
9 percent from a previous 9.3 percent
to reflect weaker prospects in Western
economies.
Domestically, signs are emerging
that the once-robust growth engine is
stalling as policymakers twisted hard
on credit screws to quell inflation. CREDIT SQUEEZE: Employees of Center Group, a private producer of eye
glasses in Wenzhou, Zhejiang Province, at work on an assembly line (WANG
Bearing the brunt of the heavy DINGCHANG)
42
has ordered interest rate hikes three
times this year and increased the
reserve requirement ratio six times.
The quickly cooling real estate
market also became a significant drag
on growth. Home buyers have stayed
on the sidelines, draining life out of
the once-exuberant market and
dealing a blow to a series of related
sectors like furniture and appliances.
“The contracting demand is
squeezing profitability out of affected
industries and dampening business
confidence,” said Peng Wensheng,
chief economist with the China EXPORT CONCERN: A German container ship docks at Qingdao Port,
Shandong Province (YU FANGPING)
International Capital Corp.
Zheng Xinli, Vice Chairman of the
Fine-tuning Policies
China Center for International Economic
To ensure economic stability, the Central
Exchanges, said the CEWC has sent out a message
that the country will prioritize ensuring stable Government vowed to make policies more
“targeted, flexible and foresighted.”
growth next year.
“The goal is to strike a balance between
“Policymakers should coordinate monetary
and fiscal policies to benefit economic rebalancing, maintaining growth, deepening economic
and lay a solid groundwork for steady growth in rebalancing and managing inflation expectations,”
said the CEWC statement.
the future,” he added.
“Monetary policies will be fine-tuned according
to actual situations and fiscal policies
will focus on structural tax reduction
and inputs for improvements of
people’s livelihoods,” it added.
China has already taken some
selective steps, geared to small business,
to prevent a deeper downturn.
The central bank has required
commercial banks to bump up lending
to cash-starved smaller businesses and
the weak agriculture sector. In the first
three quarters, small and medium-sized
enterprises received 2.26 trillion yuan
($357.03 billion) in new loans,
accounting for 68.4 percent of the total.
A more substantial move came on
INFLATION EASES: Residents in Chongqing buy vegetables in a
November
30 when the central bank
supermarket (LI JIAN)
announced to decrease the ratio of deposits that
banks must set aside in reserve by 0.5 percentage
points for the first time in three years. This was
widely seen as a signal for China’s policy shift
toward targeted easing as inflation jitters give way
to concerns over slowing growth.
“The cut is within expectations given liquidity
shortages in the banking system,” said Lu Ting, a
Hong Kong-based economist with Bank of America
Merrill Lynch. “It is part of ongoing fine-tuning,
which has been taking place since early October.”
“Inflation is moderating in the country, leaving
room for China to step up selective easing
measures and shore up the weakening economy,”
he said. Lu expected China to cut the ratio another
three times before the end of 2012.
Qu Hongbin, chief China economist with the
HSBC, also believes that more reserve ratio cuts
may follow, but interest rates may remain
unchanged until inflation falls below 3 percent.
“Full-fledged monetary easing is not needed
because China’s exposure to external demand is
less than it was during the 2008-09 downturn, and
its dependence on exports is much lower,” Qu said.
“The underlying strength of the industrial
sector remains strong,” he said. “Policymakers
need to become more flexible and closely watch
the unfolding European debt crisis.”
Ba Shusong, Deputy Director of the Research
Institute of Finance at the Development Research
Center of the State Council, also pointed out that
it is inappropriate to adopt more aggressive easing
policies for fear of reigniting inflation.
“China must learn lessons from the massive
credit expansion two years ago that sowed the
seeds of acute inflation,” he said.
“There is usually a time lag before the monetary
adjustments gain traction, so a more direct solution
is to take proactive fiscal policies to avoid an
economic hard landing,” said Liu Tiejun, a senior
analyst with the Shanghai-based Haitong
Securities Co. Ltd.
Xia Bin, a member of the Monetary Policy
43
Committee of the People’s Bank of China and a
researcher with the Development Research Center
of the State Council, believes the key to stabilizing
growth lies in the fiscal front.
“China is positioned to hand out more fiscal
stimulus such as tax reductions for smaller
businesses and strategic emerging industries, as
well as greater efforts to improve the social safety
net,” he added.
Qu said fiscal policies should play a bigger role
in stimulating the economy without sparking
inflation. “The country needs to put more
investments in affordable housing projects, and
improvement of medical and education services,”
he added.
Rebalancing Commitment
As China embarks on a more sustainable path
of growth, economic rebalancing and structural
adjustment will take center stage.
China will boost domestic demand, encourage
consumption, expand the proportion of people in
middle-income groups, and foster the strategic
emerging industries including information
technology and new materials, according to the
statement. Moreover, efforts will be made to protect
the environment, as well as enhance energy
conservation and emission reductions.
“The slowdown provided a powerful catalyst
for the country to accelerate economic rebalancing
and wean off reliance on external demands,” said
Fan Jianping, chief economist with the State
Information Center.
Instead of pumping massive lending and
investments like it did in 2009, China should attach
greater importance to seeking more sustainable
growth and improving people’s livelihood, he
added.
“For example, the government should
strengthen anti-monopoly efforts and foster private
investments by opening up more state-controlled
sectors,” said Fan.
Steps to transform the growth pattern are
44
already underway. The country’s 12th Five-Year
Plan (2011-15) vowed vigorous efforts to propel
consumption, develop the service sector and
eliminate polluting and energy-guzzling
businesses.
The country in September raised the cut-off
point for personal income tax to 3,500 yuan ($553)
from 2,000 yuan ($316), a move expected to bolster
wage growth and fuel consumption.
Credit Suisse expected China’s share of global
consumption to increase from 5.2 percent at $1.72
trillion in 2009 to 23.1 percent at $15.94 trillion in
2020, overtaking the United States as the largest
consumer market in the world.
In another move, the Ministry of Commerce
recently released a five-year blueprint for the
service trade sector, pledging generous incentives
including favorable tax policies and financial
assistance.
Industrial overcapacity is also abating. Earlier
this year, the country released plans to eliminate
31.22 million tons of outdated iron-making
capacities and 31.22 million tons of cement
capacities. By the end of September, the country
had fulfilled 90 percent of the target, said Miao
Wei, Minister of Industry and Information
Technology, at a press conference in November.
Meanwhile, energy-efficient and environmentfriendly industries are getting the chance to shine.
As it attempts to diversify away from fossil fuel,
China has made headway in developing wind and
solar energies.
“Economic rebalancing should be a long-term
task for China, whatever external environment it
faces,” said Wang Tao, chief China economist with
the UBS.
“The key is to deepen market-oriented reforms
and liberalize pricing of several elementary factors
such as power, land and interest rates,” she said.
“It is necessary to allow the markets to play a
leading role in promoting rebalancing.”
Stephen Roach, Non-Executive Chairman of
Morgan Stanley Asia, said China should focus on
the creation of service jobs; boost income growth
by very aggressive urbanization—moving tens of
millions of people each year from the countryside
to the cities; and improve the social safety net,
especially by investing in social security, private
pensions and medical insurance.
Justin Lin Yifu, chief economist and Senior Vice
President of the World Bank, said China has the
potential to achieve another 20 years of 8-percent
growth.
“However, China faces challenges in achieving
this objective due to triple imbalances, including
relatively weak consumption, income inequality
and environment damages,” he said.
“To address those concerns, it is imperative for
China to remove distortions in the finance, natural
resources and services sectors that currently leave
too much power and borrowing capacity in the
hands of big corporations and rich citizens and
very limited access to credit for low- and middleincome Chinese,” he said.
Specifically, he said these changes should
include propelling development of small and local
financial institutions, and encouraging competition
in telecommunications, power and financial
sectors.
Fears of Inflation
Inflation remains a headache for the economy,
though its acuteness is already moderating.
“Upward pressures on consumer prices
remain, and we will continue comprehensive
measures to prevent inflation from rebounding,”
said the CEWC statement.
The consumer price index (CPI), a barometer
of inflation, grew 4.2 percent in November from a
year ago, 1.3 percentage points down from
October, said the National Bureau of Statistics. This
was the fourth straight month of declines, after
peaking at 6.5 percent in July.
The biggest driver of the CPI was still food
prices, which leapt 8.8 percent in November over
the same period last year. Pork prices, in particular,
jumped 26.5 percent.
The producer price index (PPI), an effective
gauge of inflation at the wholesale level, edged up
slightly by 2.7 percent in November, 2.3 percentage
points lower than the previous month.
Shen Jianguang, Greater China chief economist
at Mizuho Securities Asia Ltd., said three major
factors combined to weigh down the CPI: a
tightening monetary environment, falling
international commodities prices and increased
domestic supplies of agricultural products.
The policymakers have been pushing all the
buttons to tame inflation. The government has
distributed subsidies to farmers in wheat-growing
areas, enhanced price supervision and fought hard
against speculation.
Wang Jian, Secretary General of the China
Society of Macroeconomics under the National
Development and Reform Commission, said
China’s inflation jitters are easing, but have not
disappeared.
“The downward cycle of consumer prices is
yet to be established,” he said. “The future trend
will largely depend on international commodities
prices and whether China can reap a bumper
harvest of grain next year.”
Wang expected the inflation rate to stay
elevated near 5 percent in 2012 due to persistent
pressures from labor and land costs inflation.
Zhang Yongjun, a researcher with the China
Center for International Economic Exchanges, also
struck a note of caution.
“Lagging effects of the lending spree two years
ago are tapering off, paving the way for inflation
to cool off,” he said. “But China’s inflation is likely
to come roaring back if the United States kick-starts
a third round of quantitative easing.”
“The challenge for policymakers is to enact
measures that boost domestic demand and to
loosen credit controls somewhat without stoking
inflation and property price bubbles,” said Jing
Ulrich, JP Morgan’s chairwoman for global
markets.
45
MAIN TASKS FOR 2012
1. Strengthen and Improve Macroeconomic
Regulations and Maintain Stable and Healthy
Economic Development
- Adopt proactive fiscal policies and prudent
monetary policies to prevent economic risks;
- Continue with structural tax reduction, step
up investments to improve people’s livelihood
and tighten management of local government
debts;
- Fine-tune monetary polices according to
economic situations, optimize the credit structure
and fend off financial risks;
- Increase investment in agriculture, farmers,
rural areas and affordable housing construction,
and continue supporting technology innovation,
environment protection, strategic emerging
industries and key infrastructure projects.
2. Reinforce Supplies of Agricultural Products
- Increase subsidies to agricultural productions
and bump up the minimum purchase prices of
grain;
- Tighten rural infrastructure construction,
including irrigation projects, roads and grids;
- Strengthen efforts to promote rural
compulsory education and secondary vocational
education, and expand coverage of the new rural
social pension system.
3. Speed Up Economic Structural Adjustments
- Encourage consumption and increase income
of residents, especially poorer population;
- Propel innovation, protect intellectual
property rights and sharpen industrial
competitiveness;
- Cut bac k o n o u t d a t e d i n d u s t r i a l
capacities, promote mergers and acquisitions,
develop new energies, stimulate the modern
service sector, invigorate the cultural industry
and enhance energy conservation and emission
reductions.
46
4. Deepen Reforms and Further Open Up to the
Outside World
- Push forward the value-added tax reform and
the pilot program of property tax, reform the
resource tax system and research on the
environment protection tax reform;
- Deepen market reforms of interest rates,
further reform the yuan exchange rate regime and
ensure basic stability of the yuan;
- Maintain steady growth of exports, upgrade
export structure, expand imports and seek trade
balance;
- Attract foreign investments to the central and
western regions, widen outbound investments and
fight against protectionism in any form.
5. Improve People’s Livelihood
- Increase the quality of education, promote
employment and support labor-intensive industries
and small and micro-sized enterprises;
- Improve the social safety net, expand pension
systems and help migrant workers in employment,
housing, medical health and education of their
children;
- Tighten funding, construction, operation and
management of affordable housing projects,
adhere to control measures of the real estate
markets, bring house prices back to a reasonable
level, expand supplies of commercial houses and
promote healthy development of the property
markets.
IV. TIBET TODAY
Chinese Official Talks with EU Representatives
on Tibet Issues
China Tibet Online
On Dec.12, 2011, Zhu Weiqun, Executive Vice
Minister of the United Front Work Department of
CPC Central Committee, had dinner and
discussion sessions with representatives in Brussels,
at the Mission of China to the EU. The
representatives include chief executive officials of
the Chinese Department of European External
Action Service, senior researchers of the Institute
of Contemporary China Studies in Brussels,
researchers of the Eurasia Center, Professors of
the College of Europe, journalists of New Europe,
journalists of EU Observer, editors of the magazine
Parliament, students of the College of Europe, and
assistants of members of the European Parliament
(from People’s Party and Conservative Reform
Party respectively).
During the meeting, Zhu Weiqun briefed them
the current situation in China’s Tibet Autonomous
Region, and answered questions concerning the
Dalai Lama issue, human rights in Tibet, “the selfimmolation incidents”, contacts and talks, etc. The
main contents are as follows:
Zhu Weiqun: First, I will brief you the basic
situation of China’s Tibet, and then I would like to
answer your questions.
This year marks the 60th Anniversary of Tibet’s
Peaceful Liberation. During the past 60 years, the
Chinese government has done a lot to Tibet, in
general three good deeds.
The first one refers to the Peaceful Liberation
of Tibet in 1951. Since then, it is no longer possible
for any forces to split Tibet from China. Tibet’s
Peaceful Liberation is a great progress of human
rights. Because China’s national sovereignty,
which is regarded as the basis for human rights,
has been guaranteed.
The history has clearly indicated that human
rights in Tibet can never be possible with imperialist
aggression and humiliation.
The second one refers to the suppression of the
armed rebellion launched by the minority of the
ruling class led by the 14th Dalai Lama.
The Democratic Reform has abolished the
theocratic feudal serfdom which existed for
hundreds of years. Since then,Tibet has stepped
into a new socialist society, just like the other parts
of the country. And what’s more, it has been rest
assured that the old feudal serfdom system could
never be restored.
Millions of serfs and slaves have gained human
rights through the Democratic Reform, which had
important and a far-reaching influence in the world
history of human rights.
The third one refers to the establishment of the
System of Regional Ethnic Autonomy, which led
to a rapid economic and social development in
Tibet in half a century. What’s more, it has also
protected and improved every aspect of the human
rights undertakings.
I’ve been to Tibet on business trips for 40 times
including five times this year. And I see changes
there each time, such as people’s living standard
has improved and democratic rights are
guaranteed. Here I cite some basic numbers for you.
Though the numbers are boring, they indicate the
achievements made through the joint efforts by the
Chinese central government and the Tibetan
people.
During the 11th Five-Year Plan period (from
2006 to 2010), the Chinese government pumped a
total construction fund of 137.8 billion yuan to
47
support the development of the Tibet Autonomous
Region. In the “12th Five-Year Plan” period (from
2011 to 2015), the overall investment is planed to
amount to 330 billion yuan, more than double the
figure of the previous five years.
In 2011, Tibet’s gross domestic product (GDP)
is estimated to reach 60.5 billion yuan, a 12.6
percent increase over that of last year, keeping a
double-digital growth rate in 19 consecutive years.
The average disposable income of urban residents
is estimated to reach 16,148 yuan, up by 7.8
percent that of 2010.
We are always concerned about famers and
herders, because they living in most harsh
conditions. Data indicate that the per capita net
income of Tibetan farmers and herders will reach
4,700 yuan with a double-digital growth rate over
the past nine years.
An important meeting was held recently in
China, and the poverty-relief criterion (average per
capita income) has been raised to 2,300 yuan from
the previous 1,196 yuan. Of course, this has given
a challenge to our next step in poverty-relief
development, but it is a must. The criterion of 2,300
yuan, if calculated, is equivalent to the per capita
income of one dollar per day. Therefore, based on
the per capita net income of 2011, the living
standard of the Tibetan farmers and herders has
generally gone well above the poverty line.
Besides, Tibet also witnesses a booming
development in education and health. There is
another number to prove this: the average
expectancy of Tibetan people has increased to 69
years old from only 35.5 years old in 1951 when
Tibet was just peacefully liberated. The population
in Tibet has increased from one million to three
million. But one point needs to be stressed: it is
definitely not true as someone said the increase of
population of Tibet is resulted from migration of
inland Chinese. The Tibetan population has taken
up above 92 percent in each of our census,
including the most recent one.
48
It is a basic policy in China to respect and
protect citizens’ freedom of religious belief. At
present, there are 1,780 Tibetan Buddhist
monasteries in Tibet, which is to say, about one
monastery for every 1,600 people. There are 46,000
monks and nuns in all, taking up 1.5 percent of
the overall population. I have no idea about how
many people on average share a church or what
the demographic percentage of clergymen in the
total population is in Europe. Of course, the
number is much lower than that in the Dalai
Lama’s ruling period. At that time, there were
100,000 monks and nuns out of a mere population
of one million. But let’s think about it: would there
be any hope of social progress for such a society?
At present, China and the EU have a friendly
relationship and both sides have built up an allaround strategic partnership through multi-level
dialogues and cooperative mechanism covering
areas in economy, technology and humanity. The
cooperation has benefited both sides and even the
whole world, especially under the context of
international financial crisis and the EU’s debt crisis.
Strengthened connections and mutual support are
urgently needed for both to overcome difficulties
together for a win-win situation.
When cooperation between both sides becomes
increasingly important, however, I feel puzzled at
persistent reasonless accusations over China from
the EU. On the contrary, in my memory, Chinese
people have never criticized EU’s internal affairs
at any time. A recent example is that some
minorities in the European Parliament, regardless
of China’s interests, insisted on inviting the new
head of the Dalai clique’s “government-in-exile”
to Brussels and held high-profile meeting with him.
They also invited him to give a speech in the name
of “prime minister of the Tibetan Administration
Center” to the Foreign Affairs Council of the EU,
disseminating the so-called “Tibet Independence”.
Such activities are extremely ridiculous,
running counter to both the EU’s promise to China
and the general norms in international relations.
If the EU has recognized that Tibet is a part of
China, the EU has no right to invite such a
separatist and head of the rebellious clique. I hope
all of you here to play your part in preventing such
terrible incidents from happening again in future
given your relationship you cherish so much
between China and the EU.
I used to be a journalist with the People’s Daily
and I like to ask tough questions. Today, you are
also welcomed to raise tough questions to me. I
hope it won’t affect your appetite today that I just
mentioned the new head of the Dalai clique’s
“government-in-exile”.
The EU: I am an official with the European
Eternal Action Service (EEAS). Your visit to
Brussels and the questions you have raised are
quite important. We are glad to hear that Tibet
has made remarkable achievements. And I want
to remind that you know clearly how much the
EU values human rights as well as protection of
traditional culture. That’s why we are concerned
about the human rights and cultural protection
situation whether inside or outside the European
Union.
We have paid attention to the recent selfimmolations of the monks. From the perspective
of the EU, the incidents showed extreme
desperation of some Tibetans over their culture
preservation. I want to point out that the EU does
not recognize the legitimacy of the guy as Kalon
Tripa of the “government-in-exile”. But he was
only invited by the publicly elected and
independent parliament members, rather than the
European Union.
Zhu Weiqun: To develop China’s human rights,
we need to make more efforts and we hope that
there are more friends to help us.However, what I
want to say is that the Chinese government care
more about its people, with Tibetan people
included, than any other government in the world.
Why did the Chinese Communist Party start a
revolution then?
It was because that one task of this revolution
is to fight against the invasion of imperialism
forces, including some European countries, to
China.Not too long ago, some European countries
had launched two wars to invade China’s Tibet.In
a war in 1904, with modern arms, which is a
symbol of civilization, these invaders killed more
than 600 Tibetans in a valley at one time.
At that time, have any of you talked about
human rights for Tibetan common people?
Besides, in 1951, some countries in the west
backed the local Tibetan government with guns to
revolt against the peaceful liberation by the central
government. What’s more, in 1959, they directly
incited and backed up the Dalai clique to rebel,
with not only so-called “moral support”, but also
direct arms airdropping and agents training.
During that time, have any of you talked about
human rights for China’s Tibetans?
What we have done, including emancipating
millions of serfs in Tibet, developing Tibet economy,
improving common Tibetan’s life standard,
insuring the freedom of religious belief, as well as
reserving and expanding Tibetan culture, etc, these
are all for Tibetans’ human rights. However, how
many favors have you westerners done for that?
You westerners can count it by yourselves!
As far as I can see, some Europeans care more
about the privileges which some few feudal serf
owners, represented by the 14th Dalai Lama, have
lost and the supreme powers that the 14th Dalai
has lost in politic, economy and religion.
I’m sorry that I have not enough time to list
some western countries’ terrible and ignominious
“human rights records” today. Now, I’d like to talk
about the self-immolations that you are concerned
about.
A chain of self-immolations have happened at
four monasteries in the Garze Tibetan Autonomous
Prefecture and Aba Tibetan and Qiang
Autonomous Prefecture in Sichuan Province
49
(rather than Tibet) since March this year. Those
who set themselves on fire are in their twenties
and the youngest is only 16 years old. I was shocked
by those incidents and feel sorrowful for those
young lives engulfed in flames.
When I went to those temples for a field survey
not long ago, the local monks and residents
expressed indignation at those who had provoked
those incidents.
The incidents of self-immolation occurred in
only four temples, but there are 3,542 temples in
Tibet and other Tibetan areas, with over 140, 000
monks and nuns in total. Therefore, what the Dalai
clique described that all the Tibetan areas were
burning up is not true at all. The vast majority of
temples and monks did not get involved in this
matter, instead, they condemned it. The Dalai
clique also mentioned that Tibetan people are living
in misery. In my view, however, the only person
in a tragic situation is the Dalai Lama himself.
Self-immolations occurred in four of the 3,542
temples with most incidents happened in one
temple, the Kirti Monastery in Aba county of
Sichuan Province. Why? The Kirti living Buddha
used to follow the Dalai Lama and launched the
armed rebellion in 1959. After it failed, he fled
abroad and served as the “security minister” of
the Dalai clique’s “government in exile”, which,
as we know, is a department for making
bloodshed, destruction and sabotage.
The first self-immolation happened on March
16, and the monk who burned himself to death
was only 19 years old. The other three monks who
instigated him were arrested. They confessed in
court that they had been incited by the separatist
forces. When the self-immolation happened, they
not only stood aside but also prevented our cadres
from helping the injured. They filmed the selfimmolation, and sent it to Dharamsala quickly.
As it was reported, continuous self-immolation
incidents occurred. The Dalai clique dubbed the
monks and nuns who burned themselves as
50
“heroes” and “fighters”, expressed their
admiration, suggested to “award” them, and
wanted to erect monuments for them.The Dalai
Lama even held a religious ceremony and led a
fasting in Dharamsala. He praised those victims
for their “courage” and encourages more people
to go down toward this dead end.
I noticed that some western media, including
Reuters, the French international broadcaster,
Deutsche Welle and so on, who barely agreed with
us, pointed out the Dalai Lama did nothing to stop
the self-immolations but encouraging them.
What’s even worse is that in the articles
published by the “Dalai Lama Tibet Religious
Foundation” in Taiwan, the self-immolations were
regarded as “Buddha practice”, and they declared
that those who burned themselves to death would
be reincarnated into Buddha immediately. They
forgot that Tibetan Buddhism is a religion of
compassion, which values life .
It is shown that the self-immolations are caused
by the long-term brainwashing of those monks by
the Dalai clique, who are locked in the temples
and lack of basic modern education. The reason
for these tragedies is that the Dalai Lama wants to
transform the Tibetan Buddhism into a religion of
suicide to serve his own political purposes.
You said that the self-immolations are caused
by our destruction of Tibetan culture and religion,
but could you give me the evidence? How did we
damage the Tibetan culture and religion? I could
give you numerous cases for our protection and
development of Tibetan culture and religion. Could
you give me examples of the so-called destruction?
Will the Chinese government change policies
in Tibet and the attitude toward the Dalai clique
only because we are attacked by some people about
the incident of the self-immolation?
I suggest that everyone have a review about
the history: in 1951 the upper class of Tibet fought
against the People’s Liberation Army in Chamdo
to prevent Tibet’s liberation although they failed;
in 1959 the Dalai Lama were able to launch an
elaborately planned armed rebellion in Tibet; in
1960s they had no ability to launch real wars with
us, but they were still able to harass our border
while living overseas; later they found it difficult
to make military activities and their military base
was destroyed in Nepal, whereas in 1980s they
could still stirred up riots in Lhasa, which had
lasted for three years; in 2008 they made a
desperate attempt by making the March 14 riots
in Lhasa which were cracked down by us soon.
Now the clique can only cheat a few innocent
young men to burn themselves to death in order
to impose pressure on the Chinese government.
There is a Chinese saying goes that “weasels give
birth to rats”, which means that one generation is
inferior to the last. Will a political group last long
when they make a living by inducing their fellows
to burn themselves? In this case some people from
the EU still connect their own fate to that of the
Dalai Lama, which is so unwise. Whether to cheat
another few for self-immolation or not has different
voices inside the Dalai clique because some believe
that such a scheme can’t go on. Today I can frankly
tell every friend that the Chinese government will
not change policies on Tibet and the attitude
toward the Dalai clique even if such cases happen
again.
You just mentioned that some members of the
parliament of EU invited the new head of the
“Tibetan-government in exile”. I clearly know
about the inner structure of the EU and I also know
that a few people from the parliament can’t stand
up for the whole EU. However, as an international
organization, shouldn’t the EU keep its members
in bounds when the merciless members are
harming the interests of other countries as well as
that of EU? If not able to constrain their behaviors,
can’t EU at least criticize them? It is not a good
thing for the EU’s prestige if showing sympathy to
those who violate the interest of the Chinese people
by committing brutal actions or offering them
platforms.
I have heard too many of the excuses that you
have said before: when something have been done
to harm the interest of the Chinese people, some
would say that should attribute to the parliament,
non-governmental organizations or somebody’s
private behavior, which seems as if it is not the
government who manages the land. Some people
often criticize our Chinese government that we lack
democracy and human rights, but we know about
a fundamental principle that we can’t allow some
people to harm the interest of other friendly
countries in the land of China. A responsible
government should hold the attitude that never
accusing others when knowing little about the
facts.
The EU: In my impression, your visit aims to
discuss “Tibet issue” with us frankly and sincerely.
If so, will China allow the EU to send an
independent diplomatic team to Tibet to check
your description?
Zhu Weiqun: That’s a serious issue. China is
an independent country and has the ability to
safeguard its sovereignty and interest. We never
allow foreign forces to interfere in China’s internal
affairs by any means.
I never believe it can settle any problem or bring
good to its people for foreign forces to interfere in
the internal affairs of another country. On the
contrary, it will intensify the contradiction and
even lead to wars.
China never interferes in other countries’
internal affairs, or requires other peoples to do so.
Likewise, we will never allow any other country
to interfere in our own internal affairs. No one can
allow you.
You can criticize us or give us advices, but we
will not give the right of handling internal affairs
to any foreign organization or government.Of
course, if foreign officials, journalists or scholars
want to visit Tibet and broaden their knowledge
of the Tibetan ethnic group and Tibetan culture as
individuals. They are all welcome.
51
Tibet has never closed its door to the outside
world. Last year, Tibet hosted a total of about 6.85
million tourists, including about 228,000
international tourists. This year, the number of
tourists rose to about 7.5 million with a drastic
increase of tourists from overseas.
The EU: Will you interfere if we move around
and have interviews in Tibet?
Zhu Weiqun: It appears that you have never
been to Tibet. There is no interference in one’s
interview. But honestly speaking, Tibet is a border
region and it’s the international practice that one
must obey related rules in some border areas or
restricted military zones.
The EU: You hope that the EU should restrict
the activities of some of its members. In your
opinion, what measures should we take?
Zhu Weiqun: It’s your internal affairs. I will
never impose my idea on others. As a Chinese
saying goes, “don’t impose on others what you
yourself do not desire”.
I can only suggest that the EU try to persuade
someone who speaks indiscreetly and groundlessly.
One should learn more of Tibet’s real situation and
then speak discreetly.
One shouldn’t hurt the interest of a country
with a population of 1.3 billion and fast economic
growth. Making the Chinese uncomfortable will
result in serious consequences.
Of course, it’s indeed not a big deal if someone
doesn’t like to take my advice and continues to
denounce and attack us.
In my opinion, if there are some contradictory
voices by the ear, it may be a good way for an
individual or a country to enhance its vigilance
and strengthen its self-resistance capability.
The EU: According to your experience of
conducting several meetings with the envoys of
the Dalai Lama, would you please tell us the latest
development and future movement?
Zhu Weiqun: China’s central government has
arranged 10 rounds of talks with the private
representatives of the Dalai Lama since 2002. Yet
52
no results have been achieved by far.
The Chinese central government and
representatives of the Dalai Lama had “sharply
divergent” views. There are two basic reasons: The
first lies in that the Dalai Clique declares that this
is a talk between the “two separate governments”
-”Tibet government-in-exile” and China’s central
government.
It is acknowledged that the “Tibet governmentin-exile” is illegal, it is only a continuation of rebel
groups. Therefore, the talk we will consider is only
that between the Chinese central government and
the private envoys of the Dalai Lama. However,
the interference of the new boss of the “exiled
government” makes it even more difficult to
rearrange such talks.
Secondly, the two parties disagree on the
contents of the talks. We firmly hold the position
that the Dalai Lama should first comply with the
central government in terms of the following basic
principles. For example, Tibet is an inalienable part
of China, and Taiwan is an inalienable part of
China. The Dalai Lama should cease his separatist
activities before we would continue to discuss
about his future.
However, the so-called issues of “Tibet’s
political status”, “Greater Tibet” and “High degree
of autonomy” raised by the Dalai Lama ask only
for the whole Qinghai-Tibet Plateau with 25million hectares under the control of his clique.
This is out of the question.
After his selfish request was refused, he stopped
the talk twice in 1993 and 2008. Even though, the
central government did not give up the talks and
wanted to “give the Dalai Lama a chance to correct
his mistakes”.
Recently, Dalai Lama claimed that what needed
to be discussed were not his own future , but the
“future of the six million Tibetans”, and “the
position of Tibet”. In terms of these two problems,
the central government has already settled with
no possibility of changes in its position.
Dalai’s rigid and arrogant attitude creates
obstacles to contact and talks. How did the Dalai
Lama come out with such ridiculous demand
without any power to compete with the central
government? I assume that he owns the support
of some western countries.
I suggest those western countries would
persuade this 77-year-old old man to abandon his
unrealistic ambition and restart talking with the
central government about his future. Or else, he
will end up with a poor ending.
The EU: Many Europeans hold opinions
towards Chairman Ashton, so what do you think
about the EU leaders? In addition, what do you
think about the “Tibet Issue” and “Taiwan
Question”? Are there any common points and
differences between them?
Zhu Weiqun: I didn’t pay much attention to
the EU leaders, nor would I judge them. The
judgment should be made by EU countries and
people from all countries.
If you want to compare Tibet with Taiwan,
there is indeed a common point: both of them are
inalienable parts of China. The difference is that
the unification with Taiwan hasn’t been realized,
and we tend to unify Taiwan with the policy of
“one country, two systems”.
Tibet, however, was and is a region under
China’s sovereignty with national autonomy.
China practices the same administrative policies
in Tibet as those in other provinces. The central
government did offer some more preferential
polices in Tibet, as its economy lags far behind than
that of other regions.
Therefore, the “Tibet issue” never exists. The
socialist system has been established in Tibet for
over half a century. We will give full play to the
system so that more Tibetans can benefit from it
and lead a relatively comfortable life.
The EU: your name is widely known in China,
what do you think about Tibetan people’s feelings
when your name is mentioned? Are they going to
be happy or scared?
Zhu Weiqun: My name is not so well-known
in China, for there are many more capable cadres
in China. I was given the job to handle the Dalai
Lama issue due to being less capable.
I have many friends in Tibet, including top
Tibetan leaders, ordinary Tibetan farmers and
herders, and Tibetan seniors. I hold no doubt that
Tibetans are satisfied with my work, as I have
always received heartfelt welcome wherever I
arrived in Tibet. I also have no doubt that some
people, especially those in the Dalai Lama clique
hate my guts. Nevertheless, I feel honored to be
hated by the splitting forces which engage in
sabotaging Tibet’s stability. And it may even be
the greatest achievement in my life. If the Dalai
Lama and his followers, including those who
incited self-immolations did like me, it would mean
I have done something wrong.
The EU: As a Chinese European who has lived
in Europe for dozens of years, I don’t think the
Chinese Communist Party has given a positive
impression to Europeans. Due to the Cold War,
they always hold negative judgment about the
Communist Party as well as communism, especially
after years of Tibetan exiles’ propaganda. It is
indeed an arduous task for you to let more
Europeans hear China’s real voice.
A journalist just said that an independent
investigation team should be sent to Tibet, which
is coincided with most Europeans’ thought about
Tibet. They hold suspicious attitude towards
leaders elected and sent by the Chinese Communist
Party.
Therefore, I think the Chinese Delegation to
other countries should bring some of Tibetans with
you to tell us what has happened in Tibet right
now. Their words would be more convincible and
understandable for Europeans.
Zhu Weiqun: In the recent years, we have
organized Tibetan scholars, government officials,
and religious leaders for many international visits.
53
However, when they told the truth about Tibet,
they were still questioned and opposed by some
Europeans.
At the same time, no matter which ethnic
group we belong to, the national unity is our highest
priority. Though there are no ethnic Tibetans in
my team, we still represent the whole nation’s
interest. As the Executive Vice Minister of the
United Front Work Department of the CPC
Central Committee, I not only represent the Han
nationality, but also the 56 ethnic groups in China
to protect my country’s interest.
I agree with your suggestions, and we will
invite more Tibetan friends for international
communications in the future.
I want to tell you that one of the Vice Ministers
of the United Front Work Department of the CPC,
Sita is a Tibetan and my Tibetan colleagues account
for one third of our team on Tibetan affairs.
At present, I am aware that the western media
supports the Dalai Lama. There are many reasons:
at first, I admit that there are few opportunities
for us to tell the real Tibet to the western society.
The other reason, which you have already
mentioned is that the ideology reflected in western
media doesn’t accept the success of Chinese
Communist Party and doesn’t want to see the
rapid development achieved in China’s socialist
system.
Due to the stereotypes, some people are more
prone to believe the Dalai Lama, but not us. I can
not change the way people think, but the peaceful
development in Tibet can prove everything. I
believe time is on our side.
I would like to hear the two young students’
opinions, for maybe in a few years you are the ones
to settle the China-Europe affairs.
The EU: The reason why the Dalai Lama can
be successful in Europe is that his language can be
understood by Europeans. On the contrary, the
words from the Chinese government seem not
believable.
54
China needs to learn how to use the European
language and methods to express their ideas; while
as for the Europeans, we also need to abandon the
prejudices with an open mind.
Zhu Weiqun: Your suggestion is very good,
showing young people’s perception towards world
affairs.
In my opinion, during the last decades after
the Dalai Lama fled China in 1959, he devoted
much of his time and energy to learning western
ways of thinking and socializing with the help of
his western teachers.
But in fact, there is one more fundamental
reason-the political force behind the Dalai Lama.
Every year, he is supported by the annual
financial allocation from some countries, charity
funding and money collected through public
meetings and mass prayers.
According to their own material released by
the Dalai clique, more than 90 percent of its
expenses come from some western countries.
The principle of determining a person first
would see what contributions he or she has made.
As for the Dalai Lama, what has he contributed to
Tibet? Compared with the endeavor of the Chinese
government, what has he brought to the Tibetan
people?
The best method to resolve differences is
resorting to the facts when observing the same
problem with different backgrounds and
perceptions.
One who does not respect the fact may be
successful at present, but in a long run, he will
lose.
As I sit on the host position today, my remarks
may seem too strong. It doesn’t matter whether
you believe or not, but we welcome each one of
you to Tibet and make your own judgments with
your own eyes.
China Earmarks Additional 8 Mln Yuan to Renovate
Tibet’s Sera Monastery
Lhasa, Dec. 30 (Xinhua) — The Chinese
government has pledged an additional 8 million
yuan (1.26 million U.S. dollars) for renovations at
the Sera Monastery, one of the three leading
monasteries in Lhasa, a massive project whose
completion has been pushed back to next October.
More than one year after the renovation work
started, work crews had completed repairs on three
major colleges in the sprawling compound of the
five-century-old monastery. The project,
suspended for the plateau’s frigid winter, will
resume in March, monastery officials said Friday.
Next year’s repairs will focus on the golden roof
of the Great Assembly Hall, for which the
government has earmarked an additional 8 million
yuan, said Penpa Gyaencaen, an official with the
monastery’s civil management committee.
The central government originally earmarked
46 million yuan for the renovations.
The renovations will preserve the monastery’s
original style. The project was expected to be
finished by the end of 2011, but is now expected
to finish in October 2012, officials said.
Sera, Deprung and Ganden are considered the
‘great three’ Gelukpa monasteries in Lhasa, a holy
land of Tibetan Buddhism.
Since the 1980s, the Chinese government has
spent more than 1.3 billion yuan on the
preservation of more than 1,400 monasteries and
cultural relics in Tibet.
Postal Regd. No. DL-SW-1/4034/12-14
R.N.I. No. 47440/88
January 2012
The Summer Palace in Beijing has been decorated with traditional laterns for the Chinese Spring Festival.

January 2012 - Embassy China in India

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