govt ¹ ² ³   UN ¹ ²
  forums ¹   maps ¹
  ©photo  
  ÐPRCH I N A  
 
 
 




  ©photo

China's stealth war on the U.S.
7.20.05   CFR sr fellow
L.A. Times

Maj. Gen. Zhu Chenghu of the Chinese People's Liberation Army caused quite a stir last week when he threatened to nuke "hundreds" of American cities if the U.S. dared to interfere with a Chinese attempt to conquer Taiwan. This saber-rattling comes while China is building a lot of sabers.
Although its defense budget, estimated to be as much as $90 billion, remains a fraction of the U.S.', it's enough to make China the world's third-biggest weapons buyer (behind Russia) and the biggest in Asia. Moreover, China's spending has been increasing rapidly, and it is investing in the kind of systems, esp. missiles and submarines, needed to challenge U.S. naval power in the Pacific.

The Pentagon on Tuesday released a study of Chinese military capabilities. In a preview, DefSec Rumsfeld told a Singapore audience last month that China's arms buildup was an "area of concern." … Chinese strategists, in the best tradition of Sun Tzu, are working on craftier schemes to topple the American hegemon.
In 1998, an official People's Liberation Army publishing house brought out a treatise called "Unrestricted Warfare", written by 2 sr army colonels, Qiao Liang and Wang Xiangsui.

This book, which is available in English translation, is well known to the U.S. national security establishment but remains practically unheard of among the general public.
"Unrestricted Warfare" recognizes that it is practically impossible to challenge the U.S. on its own terms. No one else can afford to build mega-expensive weapons systems like the F-35 Joint Strike Fighter, which will cost more than $200 billion to develop. "The way to extricate oneself from this predicament," the authors write, "is to develop a different approach."
Their different approaches include financial warfare (subverting banking systems and stock markets), drug warfare (attacking the fabric of society by flooding it with illicit drugs), psychological and media warfare (manipulating perceptions to break down enemy will), intl law warfare (blocking enemy actions using multinational organizations), resource warfare (seizing control of vital natural resources), even ecological warfare (creating man-made earthquakes or other natural disasters).

Cols. Qiao and Wang write approvingly of Al Qaeda, Colombian drug lords and computer hackers who operate outside the "bandwidths understood by the American military." They envision a scenario in which a "network attack against the enemy", clearly a red, white and blue enemy, would be carried out "so that the civilian electricity network, traffic dispatching network, financial transaction network, telephone communications network and mass media network are completely paralyzed," leading to "social panic, street riots and a political crisis." Only then would conventional military force be deployed "until the enemy is forced to sign a dishonorable peace treaty."

This isn't just loose talk. There are signs of this strategy being implemented. Anti-Japanese riots that swept China in April (were) psychological warfare against a major Asian rival. The stage-managed protests in 1999, after the U.S. accidentally bombed the Chinese Embassy in Belgrade, fall into the same category.
The bid by the state-owned China National Offshore Oil Co., to acquire Unocal, resource warfare. Attempts by China's spy apparatus to infiltrate U.S. high-tech firms and defense contractors, technological warfare. China siding against the U.S. in the U.N. Security Council over the invasion of Iraq, international law warfare. Gen. Zhu's threat to nuke the U.S., media warfare.

These events have alternative, more benign explanations: Maybe Gen. Zhu is an eccentric old coot who's seen "Dr. Strangelove" a few too many times. The deliberate ambiguity makes it hard to craft a response to "unrestricted warfare." If Beijing sticks to building nuclear weapons, we know how to deal with that; use the deterrence doctrine that worked against the Soviets.
But how do we respond to what may or may not be indirect aggression by a major trading partner? Battling terrorist groups like Al Qaeda seems like a cinch by comparison. This is not a challenge the Pentagon is set up to address, but it's an urgent issue for the years ahead.

Yakuza turf turns ugly as underworld overrun by aliens   2.17.03   Cheryl Chow WaiWai

Kabukicho, Shinjuku   Crime pays, even during a protracted recession. Kabukicho, which has always had a seedy reputation, is becoming a veritable hotbed of crime. The "dark elements" of Kabukicho are not only surviving, they're thriving, reports Yomiuri Weekly (2/23). With scam artists galore, a nightclub might lure you in with a flat 5,000 yen fee for the night. But you'll get hit with a bill for 25,000 or 30,000 yen. If you complain, you'll find that true, your drinks cost only 5,00 yen. But you're charged 5,000 yen per bottle for the beer that the cute hostess drank with you. Ditto for the small plate of snacks.
You've been had, but it's only petty cash. Imagine if you happen to be an undocumented worker who's got to send money home through illegal channels. One Chinese hostess tells Yomiuri Weekly she runs the risk of attracting Chinese mafia's attention whenever she sends money home through an underground bank. "In Kabukicho, it's the Chinese you've got to worry about, they're the most dangeorus," she says.

Unlike legitimate banks, the underground banks don't require an I.D., and they don't ask questions. It only takes one day for the money to reach the hands of your waiting family. All you have to do is to pay a hefty fee, 5% of the transaction amount. Yomiuri Weekly writes that these underground banks became a problem in the early 90's, along with an increase in the number of illegal aliens.
Presently there are some 400 underground banks in Kabukicho alone. Day-to-day operations are generally run by a Japanese, but the Chinese are usually behind the scenes. Clients are mostly Chinese & Korean workers. Chinese smugglers, such as "Snake Head," also use the banks to pay for the transporation of their illegal ware, and Chinese mobsters use them to launder money.

According to the Police Agency, close to 500 billion yen in illegal funds were moved abroad by organized crime between 1992 & 2002.. The money mostly goes to Asia, South America and MidEast. One of the leaders of a Japanese mob group confides to Yomiuri Weekly that his people would love to get into the lucrative business of moving lucre. "But the Chinese & Koreans have such a tight grip on the operations, we can't get a foothold."

Right now Kabukicho is home to 7 Japanese mobster families. Organized criminial groups, both Japanese & foreign, run 50 underground casinos that deal with millions of yen a day. On a smaller scale but just as pernicious are the rings of thieves. They execute well-planned attacks on upscale boutiques, stealing mostly watches & designer goods. The hot merchandise is then sold for one-tenth the original sticker price at nightclubs after hours. One regular shoplifter tells Yomiuri Weekly, "The rule is that the goods must still have the original price tag and label. Louis Vuitton bags have to be in boxes."
They're also careful not to sell any stolen goods to the Japanese. As an informed source explains, "If you sell to a Japanese, there's a possibility that the merchandise will eventually wind up in a pawn shop and might be traced." When you're in Kabukicho, caution is the name of the game.

China changes coarse   The govt has set itself a monumental task ahead of the 2008 Olympics: teaching the nation's 1 billion people how to be polite.
9.17.05 & Mark Magnier, Yin Lijin L.A. Times

Beijing   Even Miss Manners might blanch at the task at hand: charm school for a billion people, a good number of them convinced that life means never having to say you're sorry, excuse me or thank you. This is no tutorial on fish forks. In advance of the 2008 Olympics, the govt has embarked on a crash campaign to instill manners in the world's most populous country. The effort has left govt planners struggling to break some deeply entrenched habits, including public spitting and urinating, driving that evokes a "Road Warrior" set, and an inordinate fondness for cutting in line.
"I think they're already too late for the Olympics," said Zhu Wei, manager of the Shanghai Boni Housekeeping Service, a maid-referral agency that uses British butlers to train its staff. "They should have started 20 years ago."

China hardly has a monopoly on rude behavior. And many give Beijing major kudos for tackling the problem.
"Some people's manners in China are atrocious, but you have to start somewhere," said Yue-sai Kan, author of "Etiquette for the Modern Chinese." "I think it's great what the govt is doing. I wish the New York City govt would do this."
Among various initiatives in manners are televised courses, slogans, billboards and local contests. China's politeness push may be more challenging than elsewhere, however, in part because of the country's history. After the communists took power in 1949, etiquette wasn't just pushed aside, it was often actively rooted out, sociologists say. That was particularly true during the chaotic 1966-76 Cultural Revolution, when refinement was condemned as a ruling-class plot to inhibit people and keep them down.

Now China finds itself playing catch-up as it realizes that commanding global respect means more than just churning out widgets and building five-star hotels.
"Most Chinese are very confident about the hardware for the 2008 Olympics," said Ge Chenhong, a People's University professor and govt advisor. "But it takes much longer to improve the software, especially the quality of people's behavior, and that's a problem."
In a country where mass campaigns, stage-managed party congresses and pageantry remain important, leaders are hoping to avoid embarrassing scenes at the Olympics.

In April, referees repeatedly chided fans at a world snooker tournament here for their lack of manners, noisy outbursts and jangling cellphones. "Bad behavior left unchecked at one sports event can grow like a cancer and destroy an entire Olympics," the govt -run China Daily newspaper warned the following day.
Then, in July, in what the state press dubbed a "night of shame," the crowd at a basketball game went ballistic, throwing objects and launching insults after a Chinese player was fouled during a match with Puerto Rico.
Although the Olympics is a major manners motivator, it's not the only one. Better behavior promises to reduce friction in a society where corruption, growing income disparity and land appropriation make for an increasingly explosive mix.

"Manners are essential for interpersonal communication," said Li Lulu, dean of the sociology department at People's University. "Without rules, everyone gets hurt."
China is sparing no effort in the charm offensive. Daily TV talk shows, dramas and prime-time mini-spots provide lessons nationwide on everything from public fighting to the proper use of cellphones. Universities hold etiquette contests, slogans on village walls urge farmers to create a civilized society, and neighborhoods take part in "courteous community" competitions.
By the end of the year, "the bad habits of local citizens will be eradicated," the China Daily declared optimistically in outlining Shanghai's six-year "Be a Lovable Shanghainese" campaign.

Topping the list of pet peeves in many local surveys is spitting, which not even a campaign linking it to SARS could stop. In fact, some Chinese say it improves your constitution. Asked mid-spit for his view of the govt 's politeness campaign, a resident of Beijing's Shijingshan district swore, then yelled, "It's none of your business!" before stomping off.
Other targets of the various campaigns include aggressive jostling, men who lounge half-naked in public, cooking on the street, cutting in line and urinating in public.
"The etiquette of food is another big area," deportment expert Kan said. "Eating loudly, not knowing what a napkin is for, throwing bones on the table or floor. But anyone who's seen things over the past 20 years knows it used to be way worse."

It also used to be much better. Historians note that China, a nation that perfected the subtleties of good taste and behavior thousands of years ago, now finds itself lagging. Some attribute this to poverty, limited education and the eradication of an upper class, the traditional champion of good manners.
Others point to the enormous imprint of Mao Tse-tung, a man who often enjoyed flouting convention. "Some people might have considered him coarse and vulgar," American reporter Edgar Snow said of Mao in his landmark 1938 book, "Red Star Over China." Snow described how Mao would scratch himself, remove his clothes and conduct meetings naked when he felt hot, and on occasion "absent-mindedly turn down the belt of his trousers and search for some guests," namely lice and fleas.

In 1972, Mao attended the funeral of Marshal Chen Yi in his pajamas. And in 1954, he met former British Prime Minister Clement Attlee wearing worn trousers that were patched on the backside. Advised by an aide that he might want to wear a new pair, according to a biography by historian Chen Jin, he replied: "It doesn't matter. Who will look at my bottom?"
During the Cultural Revolution, it was a compliment to be called dalaocu, or big, rude guy, as leaders sought to upend anything associated with tradition. Nor were manners the only thing destroyed during those years, said Guo Shixing, author of a 1999 play about disrespect titled "Bad Words Street." By stripping away civility, China often destroyed the fundamental trust between people, a legacy its society is still paying for.

Today, wealth has come so rapidly to some Chinese that they haven't had time to absorb it. "You see people, yesterday they couldn't eat, overnight they're millionaires," said June Yamada, dean of a Shanghai-based "school of elegance" and author of an etiquette bestseller titled "Tell It Like It Is, June." "They have no education, but they have money. They still forget to take a bath for 3 days."
The govt 's good-behavior campaign has its critics. Some say Beijing has launched so many campaigns, follow the leaders, don't gamble, create a harmonious society, that the impact is often lost. Others argue that the dos and don'ts fail to address more fundamental deficits, such as morality and ethics.

Still others, such as Peng Lin, a history professor and Confucius studies expert at Beijing's Qinghua University, question China's headlong embrace of Western manners as a way to impress the world. The trend ignores China's own rich li and yi traditions with their focus on filial piety, mutual obligation and modesty, Peng said.
Govt advisor Ge agrees that the ultimate goal should be stronger core values. But a message like "Be a moral person" is too abstract to convey in a 15-second TV spot, she said, although she added that it has to start somewhere. Etiquette academy dean Yamada prefers to start at the top. "I'd like to teach all of China, but we can't afford it," she said. "So our service is limited to the upper class."

On a recent weekday morning in Shanghai, she and trainer Gigi Pederosa, a former govt protocol officer from Peru, ran the Chinese sales staff through its paces at high-end watch seller Patek Philippe. During several hours of role-playing, she instructed them to be polite and warm and to avoid doggedly following customers around the store. "They're not selling vegetables," she explained.
Yamada, the daughter of a Taiwanese father and Japanese mother, said business at her school was booming in part because Chinese wanted to be taught by a foreign teacher
"Many universities have manners classes, but students aren't fooled by those old Communist Party instructor types," she said. "These old guys don't even get it. If they did, they would be coming to my school themselves."

Businesspeople also are taking a growing interest in proper behavior, in hopes of boosting profits. China's Alibaba.com, a website launched in 1999 that links Chinese and foreign wholesalers, soon found itself facing a large cultural gap. Even as Chinese companies were becoming more adept at producing mountains of goods at low prices, many employees lacked the manners or sophistication to earn the trust of customers in America or Europe.
Since then, Alibaba has trained more than 5,000 Chinese firms in such basics as responding in a timely way, using polite language and not cheating the customer.
"We're in a phase where Chinese companies are beginning to think with a longer-term perspective," said Porter Erisman, Alibaba's marketing vice president. "People are starting to see that operating in a good, ethical and well-mannered way helps you survive in the long term."

As local govt s educate the masses, they're trying to clean up their own act. This summer, the Beijing municipal govt launched "professional manners education month," one of several campaigns nationwide. More than 100,000 workers are in training to smile, wear socks to work and use proper hygiene, among other things. A similar Shanghai campaign advises women not to dye their hair green or wear strange dresses.
One of the more obscure things bureaucrats hope to phase out is kaidangku, the open-crotch pants worn by Chinese children that allow them to do their business wherever. Although the pants tend to draw stares from foreigners, defenders say they are comfortable, healthy and hasten the potty-training process.

Huang Wei, 31, an employee of the state TV network and mother of a 4-month-old girl, said she, her mother, grandmother and countless generations wore them, as does her daughter now.
She bristles at the effort to get rid of them, saying: "I don't see any link between kaidangku and the Olympics. It's pretty weak. I think the bureaucrats should be more concerned with spitting."
Kaidangku soon may have a new use, however. Several Chinese websites now promote the pants as romance enhancers. "Laced and convenient for you and your partner," promises one site. "Transparent, green and charming," says another.


DoD briefing   9.9.97

Let me just say that I think one of the things that's extremely important for all interlocutors between the U.S. & China to make clear is that the U.S. considers itself to be an Asian Pacific nation.
We are an Asian Pacific nation if you look at our trade flows, our immigration patterns, our strategic engagement. … To the extent that there is a debate in China about whether Americans are welcome in the Asian Pacific region, China needs to understand that any statements that suggest that we are not welcome or that our forward deployed forces are somehow unsettling, have a very negative impact on debate in the U.S. So one of the things that we are seeking from China is a greater understanding that we're going to be around for awhile.

Sec. Armitage says it best; we're here to play and we're here to stay. That's our goal & we want China to understand that. Our presence is not aimed at China. Our presence is aimed at preserving peace & stability and we're going to continue to play that role. We want very much for China to understand that and not to take steps to undermine it."

Millenium kids: oligarchy's triumph
According to the US business magazine Forbes , "There has probably never been a better time for capitalists in modern China", and China's "long-awaited WTO admission will galvanize the economy more comprehensively than anything undertaken by the Beijing govt since the late Deng Xiaoping launched his open-door policy in 1978."
In a 11.27.00 feature article on "China's 50 richest entrepreneurs", Forbes claims "Economic liberalization has profoundly changed China for the better … The state still occupies the commanding heights of the economy, but beneath the clouds, it is the private sector that makes China's economy tick."

These comments certainly reflect the US capitalist rulers' endorsement of China's ongoing process of capitalist restoration and their acute awareness that China's impending entry into the WTO will give that process a critical boost. So keen was Forbes to promote its thesis that China has never been better off, thanks to "economic liberalisation" and the "private sector" (capitalist mode of production), the magazine massaged statistics to "prove" its point.
Forbes lumped together indices in the growth of very different things, assets (presumably gross), net assets and market capitalisation, in order to demonstrate that the "average" Chinese citizen is now able to "make it" (acquire considerable personal wealth) thanks to the pro-capitalist policies of Deng and current Chinese President Jiang Zemin.

According to Forbes, some among the richest 50 Chinese citizens made their fortune through traditional activities well within the reach of small producers, such as producing seeds or animal feed, breeding animals or manufacturing auto parts, furniture, sweaters or air-conditioners. Others achieved millionaire status simply by trading (speculating) in real estate or construction materials.
The whiz kids surfing on the crest of the "new economy" also form a solid contingent, enriching themselves through designing software, telecommunications equipt or providing internet portal services. The examples which Forbes chose to highlight seemed to confirm the "free market" myth that anyone, even in today's highly monopolised capitalism, can still "make it" into the ranks of the top capitalists.

The only exception in the list is Rong Yiren (China's vice-president 1993 - 1998) & his family. The Rong family are China's richest "entrepreneurs" according to Forbes. The magazine bases this ranking solely on the 18% of shares owned by Rong's son, Larry Yung, in the Hong Kong-listed CITIC Pacific co. Rong certainly has amassed considerable wealth since Deng Xiaoping invited him in 1979 to form the state-owned China Intl Trust & Investment Corp.
But what Forbes listed in its latest survey is just a tiny slice of the fortune held by the Rong family/clan, which comprises more than 200 members (incl some outside China). In addition to grossly underestimating of the actual size of the Rong family fortune, by not examining how the Rong clan re-emerged as capitalists (the Rongs were a leading capitalist family prior to the coming to power of the Chinese Communist Party in 1949) Forbes was able to hide the cronyism and officially sanctioned private theft of state assets that has greased the path to enrichment of a key component of China's fledgling capitalist class.

This is the select group made up of the sons & daughters of top Chinese Communist Party (CCP) officials, commonly referred to by ordinary people in China as the "princelings". The most critical flaw of the Forbes survey is its failure to even try to identify this crucial group of capitalists, who often take the appearance of being key executives in enterprises which are nominally state owned or only partially privatised.
Maintaining a link to political power is key to the princelings' success as capitalists. That link is often provided through one or more family members, but some princelings hold political positions concurrently with executive power in enterprises. Looting the state assets they manage is still the key mechanism for acquiring capital for most of China's new capitalists.

No one can present a balance sheet on how the spoils of this theft of state assets have been laundered and into what companies controlled by which CCP official or their relatives. But enough of it has happened, and it is of such a scale, that even the CCP has been forced to publicly acknowledge this phenomenon.
Beijing's late 1992 constitutional amendment to officially declare that its goal is the creation of a "market economy" and Deng Xiaoping's January 1992 endorsement of the capitalist-dominated special economic zones (SEZs) in southern China as the road that the rest of the country had to follow, unleashed an unprecedented frenzy of speculative swindles & embezzlements of state assets, propelled by the princelings.

In 1994 the Chinese govt revealed that state assets were vanishing at a rate of 100 million yuan a day, and that state assets valued at 500 billion yuan (US$60.25 billion) had been embezzled & looted in the previous decade. Vice-premier Zhu Rongji warned at the time that if the "drainage" of state assets continued "there will be no more socialism to speak of". Despite this warning, the rate at which state property was "disappearing" increased to the officially admitted figure of 300 million yuan a day in late 1995.
Chinese govt wasn't shy about admitting that CCP officials were the chief culprits in the "drainage" of state assets into the "private sector", but it tried to put the problem down to a few "bad apples". It even admitted that leakages often occurred when the accounting "wasn't done properly" when joint ventures with foreign capitalists were formed.

However, the idea that asset-stripping on the scale that the regime itself acknowledged was the result of mere oversight or incompetence by a few "bad apples" was hardly believable. It was well-known that many CCP officials who managed state enterprises deliberately deflated the asset contribution of their enterprises in joint ventures, while inflating book contribution of foreign partners, leaving CCP officials to pocket the difference.
Laundering or investing the spoils of such swindling overseas isn't difficult as many such transactions involved the overseas offshoots of Chinese state firms. These offshoots are clustered most densely in Hong Kong from where, well-known within business circles there, much of these laundered spoils found their way back to China as "foreign investment". The bulk of the foreign investments in China originated from Hong Kong-registered entities.

Princelings in business, whether acting as mere front persons or not, are only the most visible representatives of the growing layer of CCP "cadres-turned-capitalists". Their significant influence and widespread corrupt practices have attracted public anger. There was widespread applause when a 1988-89 anti-corruption campaign targetted Kang Hua Enterprise, business empire headed by Deng's eldest son Deng Pufang. With its hundreds of subsidiaries, Kang Hua Enterprise was also a feeding ground for numerous other princelings.
The protest movement in early 1989 targetted the princelings' business scams as a prime concern. In the wake of the regime's massacre of worker-student protesters in June that year, Chinese authorities made considerable noise about cracking down on the princelings' activities.

However, in 1992 the regime made a sharp turn toward promoting private entrepreneurship. That same year Deng's other son, Deng Zhifang, became head of Four Seas Real Estate and CITIC. Four Seas is formally an arm of the Shanghai municipal govt but is widely known in Hong Kong business circles to be a conduit through which the younger Deng managed his extensive business interests in Beijing, Shanghai, Hainan island and Hong Kong.
CITIC turf was shared with another super-princeling, Wang Jun, son of military leader Wang Zhen. Wang senior had pivotal influence in the military and was a close associate of the Deng Xiaoping. Like Kang Hua Enterprise, CITIC was only one carriage in the gravy train that a whole network of princelings boarded.

Jiang Zemin's 1995 clampdown on Shougang, major steel-making state conglomerate based in Beijing which was headed by Zhou Guanwu, father of Deng Zhifang's close business crony Zhou Beifang, was a dramatic move to tackle another super-princeling. But while Deng Zhifang has adopted a lower profile since then, there are no signs he has withdrawn from "entrepreneurial" activity.
These high profile cases are just the tip of the iceberg. A more detailed picture of the princelings' activities can be found in, for example, The Chinese Communist Party `Princelings', a Chinese language book published by the Times Publisher in Taiwan. Co-authored by He Pin & Gao Xin, who left China only in the 1990s, the book was issued in a second edition in 1997 after 10 printings.

He & Gao list more than 200 princelings, their positions in the govt or the army and their relationship to senior CCP officials. The cases of 25 such families are featured. While not every one of them was known to be involved in business, enough of them have done so, especially in scandalous activities, that more general observations can be drawn. Among the more notorious examples are:

  •   Wang Bing, another son of Wang Zhen, masterminded high profile kidnapping of another princeling in June 1995 in the Shenzhen SEZ to resolve a money dispute arising out of a corruption scandal in the early 1990s involving a chain of key state firms such as the China Ocean Petroleum Corp, China Ocean Helicopters Corp (which is owned by 6 major state firms including CITIC) and Dong Hui Industrial Share Co (headed by the wife of long-time Guangdong governor Ye Xuanping, the son of Marshal Ye Jianying).
    The kidnapped victim was Chen Xianxuan,husband of a grand-daughter of a senior CCP official. The scandal was speedily concluded by an "internal disciplinary action" for the people involved.
  •   Wang Jun, sr military officer to whom Rong Yiren only relinquished control of CITIC in 1993. Wang Jun is widely believed to have been managing his private business interests mainly through CITIC Shenzhen, formally a CITIC subsidiary which had led the frenzy of real-estate speculation in the SEZ since the mid-1980s.
  •   Chen Weili, daughter of Chen Yun (a CCP Politburo member since the 1930s), was also at the centre of a scandal. After raising close to US$30 million in loans from the Chinese govt, she founded China Venturetech Investment Corp in the early 1990s and was involved in a chain of high profile takeovers in Hong Kong.
    In June 1993 an investment firm which Chen Weili headed, Standard Financial Co, was sued in New York for allegedly defrauding the investors. It was reported to have offered a compensation package of US$16 million to settle the dispute but was rejected.
  •   He Ping, son-in-law of Deng Xiaoping, headed the Poly Corp, key business arm of the Chinese military which takes prime charge of nearly all its arms trading. Hand in hand with fellow princelings such as Deng Zhifang & Wang Jun, He Ping was centrally involved in a number of high profile corporate takeovers in Hong Kong in the early 1990s. In 1995, he joined a Hong Kong property conglomerate Sun Hung Kai as vice-chairperson.

    China prosecutes former bank official
    8.17.05   AP

    China has begun prosecuting a former banker accused of embezzlement who was returned by U.S. under a promise he wouldn't be executed, state media reported Wednesday. The transfer of Yu Zhendong last year to Chinese authorities was unusual for U.S., which doesn't have an extradition treaty with China.
    A court in the southern province of Guangdong began hearing the case against him Tuesday, govt Xinhua News Agency said.
    "Yu candidly confessed everything," the agency said.

    Yu, former head of a Bank of China branch in Kaiping, a city in Guangdong, is accused of helping embezzle $485 million from his state-owned bank. He fled to U.S. and was sent back to China in April 2004, under an agreement in which he pleaded guilty to racketeering charges in a U.S. federal court in Las Vegas.
    His plea agreement required U.S. authorities to obtain assurances that China wouldn't sentence Yu to more than 12 years in prison and "he will … not be tortured or put to death," U.S. govt said at the time. China frequently sentences defendants to death for nonviolent offenses such as tax evasion or embezzlement involving much smaller sums than that in the Bank of China case.

    Yu and his accomplices are accused of using their posts at bank to approve phony loans and money transfers. The case is being heard by the Intermediate People's Court of Jingmen City, Xinhua said. It didn't say when a ruling was expected.

    Tailor-made problem
    9.16.05   Evan Osnos Chicago Tribune

    Pity the tailors of Hangzhou, but not their children. In shops throughout this lakefront city celebrated for its embroidered silk, middle-age men and women with nimble fingers mourn the decline of their once-glorious trade in handmade clothes. They count many reasons, including the drifting tastes of China's vast new middle class, whose members would rather don Louis Vuitton's initials or Ralph Lauren's polo pony than a sturdy nameless creation from the neighborhood.

    More surprising, however, these weary craftspeople tell a tale of economic evolution that all but echoes the trials of faraway American workers. Hangzhou's tailors know little about the debates over offshoring and free trade that have complicated relations between the U.S. and China. What they know is that they are bedeviled by China's surging manufacturing power, the acres of textile and garment factories that have cropped up on the city's edge to disgorge mountains of low-cost blouses, suits and pants.
    Guan Qinming once owned a thriving clothier with three employees who could stitch custom business suits for the relatively rich sum of $24 each. But by 2003, business had soured so much that the 49-year-old tailor laid off his last apprentice and turned his store into a laundry. He now makes 10 cents for pressing a shirt and 40 cents for a wash, just enough to cover the monthly rent of $100.

    "There used to be three or four tailors every 100 meters, but the profits disappeared," Guan said, shirtless on a stifling afternoon, arms draped in a new delivery of dirty clothes. "I should have been a driver," he added.
    Just down the street, Yao Rucan, 55, laughs bitterly at the notion of trying something else. He joined the trade right out of high school nearly 40 years ago, when the political disorder of the Cultural Revolution scuttled his hopes for more education.
    "Most tailors don't want to be in this business anymore," Yao said, his battered, black-enameled sewing machine sitting idle beside him. "There isn't enough work for us. Most my age want to join a clothing factory." With his long shears and electric sewing machine, Yao can fashion a man's shirt from bolt to hanger for a little more than $3. But he concedes that a factory can do it faster and cheaper: the same shirt for $1.25. "They have assembly lines. I can't beat them," he said.

    In a nation churning with innovation, the tailors are addled by the change around them. For centuries, Chinese poets hailed this eastern city, beside the placid shores of West Lake, as a symbol of culture and beauty. For a millennium, it scarcely changed.
    But today the city of 6.4 million people, two hours' drive from Shanghai, is increasingly regarded as China's Silicon Valley, an emerging incubator of Internet companies such as Alibaba, the country's multibillion-dollar e-commerce giant. The willow-lined lakefront has sprouted a Porsche dealership and an Armani boutique.

    The tailors' problems sprouted on the city's northern edge, with rows of modest factories like the Hangzhou Guqi Fashion Co. plant, where 100 workers turn out brightly colored women's wear.
    "There are 1,000 factories like this," said plant manager Xie Linchang. "This is the trend. I think the factories will get bigger, and the small tailors will probably disappear."
    Do the tailors imagine govt or anyone else can save them? Not likely, they say. But they are not ready to fade into oblivion. They have a plan.

    Guan, the laundry owner, crows that his 19-year-old daughter entered college this year to major in communications. With luck, in a few years she will be like Yao's 24-year-old son Yeyong, whose years of night school have paid off with a job as a programmer at the Web site Hangzhou Life. His monthly salary of $400 is three times what his father earns.
    Slightly built, with a floppy haircut, the younger Yao is the portrait of the Chinese yuppie, that immense class of rising professionals born since the late 1970s, when then-leader Deng Xiaoping declared China open for business. He is urbane, apolitical and ambitious.
    "My generation is experiencing the biggest change in China's history," he said. "And people who were born in the 1990s? Their material position will be even better."

  • He still goes to night school, studying database management and other subjects he has trouble explaining to his father.
    "I need to study the technical subjects, but my real interest is management," he said.
    His heroes are not political leaders, poets or sports stars; they are entrepreneurs such as Jack Ma, the Hangzhou-raised English teacher who parlayed himself into an Internet rainmaker and chief executive of Alibaba.
    "To me, they are more exciting than movie stars. The [companies] they bring to life are not just about products, they can change your life."

    China's illiterates: 50% in west, female 70%
    3.4.02   Li Heng People's Daily

    [ Chinese language has over 2000 characters & the culture never had egalitarian tradition of universal literacy. ]

    One out of less than 10 illiterates in the world is Chinese. About 90% illiterate Chinese live in rural areas, 50% in west regions and 70% female, the statistics published by the Education Ministry have aroused strong concern from CPPCC members at the just opened NPC & CPPCC sessions. One out of less than 10 illiterates in the world is Chinese. About 90% illiterate Chinese live in rural areas, 50% in the west regions and 70% female, the statistics published by the Education Ministry have aroused strong concern from CPPCC members at the just opened NPC & CPPCC sessions.

    After years of efforts China's illiteracy eliminating work has made much progress, with the illiteracy rate for adults dropped from 22.23% 10 years ago to 8.72%. But the total number of illiterate people stands as much as 85.07 million, of which 20 million are at an age between 15 & 50. Presently there are 800 million illiterate people in the world, most living in the countries as India, China, Indonesia, Pakistan, Brazil, Nigeria, and Egypt. The number in China is only next to that of India. The provinces and autonomous regions of Tibet, Qinghai, Guizhou, Gansu, Yunnan, Ningxia, Xinjiang and Shannxi are home to 50% of China's illiterates, although their whole population only takes 15% of the national total.
    In poverty-stricken rural areas, a vicious circle has formed between illiteracy and poverty. Besides, there are still illiterate people in the eastern developed areas, much less in number, including 600,000 in capital Beijing. In rural areas, the dropout of girls remains a serious problem since women are responsible for raising children, an illiterate mother does no good to her child's education. China sees a number of 500,000 people joining in the rank of illiteracy each year; primary school education has still not been extended to 200 counties. Dropouts remain a problem. Increasingly migrant population results in new illiteracy in addition to existing illiteracy. Eliminating illiteracy, carried out more as a campaign than long-term task, has made some people return to the illiterate state shortly after being taught how to read.

    US warns HK over anti-subversion law
    11.22.02  
    BBC

    U.S. govt has warned Hong Kong that its proposed new anti-subversion law must not harm civil liberties in the territory.
    The controversial law, designed to protect China's national security, would mean that anyone found guilty of acts of subversion against China could be imprisoned for life. Human rights & pro-democracy groups have said China could use the new laws to suppress freedoms inherited from British rule, as well as to ban groups, such as the religious group Falun Gong, it considers a threat.

    "The HK people and the intl community have raised serious concerns about the proposed legislation," US State Dept deputy spokesman Philip Reeker said. He added that the US was concerned that any system in the territory must be "predictable, transparent and fair".

    The Basic Law, HK's mini-constitution which has governed the territory since its 1997 return to Chinese sovereignty from British rule, requires an anti-subversion bill to be passed under article 23. The proposed law is due to be enacted after a 3 month consultation exercise ends 12.24.02. Its purpose is to protect the "sovereignty, territorial integrity, unity and national security" of China & HK govt.

    Under the law, expressing or reporting an opinion is not criminalised, unless it threatens to "to levy war or use force or other serious offences to sedition". But emergency powers would allow a property to be entered and an individual to be stopped and searched in order to investigate suspected treason, secession, sedition or subversion. The penalty if found guilty for such crimes would be life in prison.

    Reeker said that although the US was encouraged by the fact that HK had listened to criticism of the law, he encouraged the authorities to publish the full text of the law, which so far they have refused to do. He also added that, ultimately, "a democratically elected govt, answerable to the will of the people, is the best way to ensure the protection of fundamental freedoms in HK".
    Britain has also expressed its concerns regarding the law, saying in a statement on Monday that any laws which undermined basic freedoms would be "seriously damaging" to the territory. Paris-based World Association of Newspapers warned Wed. the legislation "gives excessive weight to national security at the expense of civil liberties, esp. press freedom & freedom of speech".

    However the HK security bureau Wed. said "the way of life, the rights and freedoms guaranteed for and enjoyed by HK residents, incl freedom of the press, will not be affected by implementing the proposals."

    Drive-ins the hot, 'new' thing in China
    4.16.04  
    AP

    Beijing   It's Saturday night, and shiny new cars rumble onto the leafy lot. Customers munch dried squid. On the screen above, Tom Cruise is speaking Chinese. China is at the drive-in. "We all work so hard nowadays that after work you want to be lighthearted," said Liu Xiu, who came to the Maple Motor Cinema to see "The Last Samurai." Also in the family's year-old Citroen sedan were her husband and 5-year-old daughter. "And what could be more relaxing than watching a movie from your car?" Liu said.
    Drive-ins, fading into history in U.S., are an exciting novelty in China, whose economic boom is creating an urban class that can afford to buy cars and wants the newest thrill. It would have been unimaginable 10 years ago, when Beijing's professional elite were still saving for their first TV. "Up until I was in middle school, I had never even sat in a car," said the drive-in's 40-year-old owner, Wang Qishun, a native of the gritty northeastern industrial city of Shenyang. "We didn't even have bicycles, so we'd walk or run to movies. We'd run as fast as our legs could carry us."

    Back then, even setting foot in a theater was a luxury, so a public park with a sheet for a screen would double as a cinema. "We'd watch movies outside and sit on a rock or a small bench," said Wang. "You could say that we Chinese have gone from sitting on a rock to sitting in a car."
    The Maple Motor Cinema is less a hotbed of weekend revelry than a quiet night out for those with the means. Huge lighted movie posters flank the entrance. Strings of lights illuminate the winding, tree-lined drive to the 5 screens, sheltered by trees from the city noise. No carhops or "American Graffiti"-style preening teenagers at this drive-in, just a subdued after-dinner crowd.

    Business was especially brisk last year during the SARS outbreak, when Beijing cinemas and restaurants were ordered to close to prevent crowding that might spread the virus. "Cars were lining up to get in here," Wang said. "We were the only cultural activity open in Beijing." Car owners are still a privileged minority in China, where annual income averages just $1,000 per person and most families get by on far less. But as life for city dwellers approaches what Americans might call "middle class," cars are changing the way people live.
    Beijing & other cities are demolishing centuries-old neighborhoods to make way for wide avenues. Rice paddies are being replaced by fancy suburbs for families that can afford to drive to work. "When I started this drive-in movie theater in 1998, few people had their own cars. But since 2000, private car ownership has grown extremely fast, especially here in Beijing," Wang said.

    China's car culture is still so new that Wang says he only breaks even showing movies. Tickets are $9.50 per car, no matter how many people are inside. Profits come from 3 restaurants on the 15-acre site. Maple Motor Cinema can hold about 100 cars, but Wang said most weekend nights he gets only a few dozen. Most cars are filled with young families, but late-night moviegoers include necking couples, another novelty in strait-laced China. Wang treated it as news. "Hugging & kissing?" he said. "Maybe they do that in America, where people are more liberated. But not here in China."
    Gong Aihua, the boss of a medical instrument company, said he likes the drive-in because "you can watch the movie in your own environment." "It's just better," he said as he pulled bags of snacks from the trunk of his Buick sedan. "It improves your impression of the movie." His daughter agreed. Drive-in movies, said 11-year-old Mengyuan, "are really excellent."

    GoodWorks Intl   Andrew Young, Atlanta

      … "Globalization is neither inevitable nor efficient. It has flaws just like that of communism, fascism (of which globalization is a spin-off of) and mercantilism"

      … "in another ten years it will be Brazil"

    exegesis   re 3 Billion New Capitalists by China nee Japan lamenting Reagan Commerce undersecretary Clyde Prestowitz
    ports
    Trade & Development Agency   independent U.S. Govt agency under Exec.Branch, promotes economic development in developing countries by funding feasibility studies, consultancies, training pgms & other project planning services. TDA in Africa assists U.S. firms by identifying major development projects which offer large export potential and by funding U.S. private sector involvement in project planning

    OFAC U.S. Treasury Dept Office of Foreign Assets Control administers & enforces economic & trade sanctions against targeted foreign countries, terrorism sponsoring organizations & intl narcotics traffickers
    Bureau of Export Admin ¹ ²

    ILO MNE reports   Multinationals' 1996-99 human rights impact in 100 countries from govts, workers' orgs, employers' assoc., & business reps. Representative sample of countries w/ FDI in & out-flows in ILO regions.

    Mary W. Covington covington@ilo.org
    Assoc.Dir. Intl Labor Org
    1828 L St NW #600 WashDC 20036-5121
    202.653.7652 f202.653.7687

    GB.280/MNE/1/1 synthesis analytic report   GB.280/MNE/1/2 country-by-country replies in separate vol.
    Survey covers key human & workers' rights issues & development concerns, such as employment promotion and security; wages, benefits & conditions of work (e.g., safety & health issues); training; industrial relations; export processing zones; privatization; and MNE practice in relation to human rights/labour law policies.

    U.S., China reach consensus on WTO, eye Geneva   6.9.01   Bill Savadove Reuters

    Shanghai   U.S. & China on Saturday said they had reached consensus on issues holding up Beijing's entry to the World Trade Organization and would work toward bringing China into the global trade body by year-end. The announcement followed talks between China's Foreign Trade Minister Shi Guangsheng & U.S. trade rep Robt Zoellick on sidelines of Asia Pacific Economic Cooperation (APEC ¹ ² ³ ª) trade ministers meeting in Shanghai this week.
    "We are pleased to report that the U.S. & China have reached consensus on major issues that we discussed," the U.S. embassy in Beijing said in a statement. "China & U.S. agree that we should now work together in Geneva to complete China's WTO accession," it said. The statement did not detail the issues discussed, but talks on China's entry have stalled over the amount of subsidies Beijing can pay its farmers.

    The 2 countries also discussed trading rights, distribution & insurance market access during bilateral talks on Tuesday, Zoellick told a news conference earlier this week. U.S. officials said earlier that the talks with China were positive, but neither side had indicated any consensus had been reached until Saturday. U.S. had wanted China to pay farm subsidies of just 5% as a developed country. China had insisted it could pay subsidies of 10% as a developing country.
    The WTO has already announced its members & China will hold high-level talks in Geneva from 6.28-7.4.01   The last round of multilateral talks was held in January. "This understanding is a win-win result for China & U.S.," Zoellick said in the statement. "It should help us & the other nations of the WTO to try to complete China's accession this year."

    In a similarly worded statement released through the official Xinhua news agency, China's trade minister Shi said the 2 sides reached "full consensus" on remaining issues concerning its entry. "This has served to create important conditions for the 16th session of the China working group of the WTO to be held in Geneva at the end of this month, and for ending the substantive talks for China's accession to the WTO at an early date," Shi said.
    APEC trade ministers closed a 2 day meeting in Shanghai on Thursday with an urgent call for completion of negotiations to get China into the WTO this year. But analysts warn it will still be a race for China to enter the WTO before the end of the year.

    Even though China & U.S. appear to have worked out their differences, the WTO must draft a complicated accession protocol that could take 3 to 6 months, leaving a narrow window of opportunity for entry this year. Analysts say China could shelve sweeping economic reforms linked to WTO pledges if it does not enter the trade body soon.
    Zoellick said in the statement that progress on China's entry would also add momentum to the launch of a new global trade round, which could take place at a WTO meeting in Qatar in November. China wants to act as a bridge between developing & developed countries for the next trade round. Trade officials say China, now only an observer, would need to be a member of the WTO to participate fully in the new trade round.

    China secures U.S. support for WTO entry
    6.10.01   Ching-Ching Ni L.A.Times

    Shanghai   … rehearsal for an Oct. APEC summit at which President Bush is expected to meet Chinese President Jiang Zemin for the first time. There had been hopes that the 2 sides would take advantage of the APEC meeting to announce a breakthrough. But nothing had materialized by the time the conference ended Thursday. Talks between Zoellick and Shi reportedly continued until 3 a.m. Friday.
    China's 15-Year Effort
    … China's marathon bid to join the global trading community has lasted nearly 15 years. It cleared a major obstacle 2 years ago when the U.S. agreed to endorse it. But a logjam developed after China refused to accept the status of a developed nation, with correspondingly low farm subsidies. Earlier last week, Zoellick had implied that if this final wrinkle could not be ironed out, Beijing's entry by year's end would be highly unlikely. … The pact could also help reinitiate stalled trade talks, something that the violence-plagued WTO meeting in Seattle in 1999 failed to do. …

    Mexico a Holdout
    Every WTO member except Mexico, which has demanded more anti-dumping protections to counter cheap imports, has endorsed China's accession request. During a visit to Beijing last week, Mexican President Vicente Fox told Jiang that he hopes their 2 countries can reach a deal soon. How the world's most populous nation and its 800 million mostly impoverished farmers will adjust to membership in the world trade body remains to be seen. … while the U.S., pressured by powerful farm lobbyists, was insisting on a cap at 5%.

    China's choice was a difficult one. Already, 20 years of breakneck economic reforms have transformed a backward command economy into an impressive engine of growth. But those changes have also created huge unemployment as well as widened rifts between rich & poor. Rural unrest is on the rise, and urban unemployment threatens to cause more social instability. Conservatives worry that the country is simply not ready for the onslaught of more market openings & foreign competition. The reason China's growth has not ground to a halt during the global economic downturn is that its economy is protected by barriers such as tariffs, corruption, a lack of openness and the relative absence of the rule of law. Under WTO, all of that will have to change, and reform-minded leaders in Beijing, like the intl business community, which is hungry for a piece of the giant China market, believe that should be reason enough for it to embrace membership in this particular global partnership.

    Mexico's Fox pledges flexibility in talks on China's WTO bid   6.7.01   L.A.Times pA4

    Beijing   The president of Mexico, which has yet to formally endorse China's bid to join the WTO, said Wednesday that his country does not object to Beijing joining the trade body and will be flexible in talks on the issue. President Vicente Fox made his comments during a whirlwind trip to Asia that has been dominated by trade & economic discussions. A day earlier, Fox & Japanese PM Junichiro Koizumi agreed to consider a free-trade pact between their nations. On Wednesday, Fox met with Chinese President Jiang Zemin to discuss ways to strengthen trade, economic, scientific and cultural cooperation, one of Fox's aides said. The official New China News Agency said Fox told Jiang that Mexico "will take a more flexible stance" in upcoming talks about Beijing's WTO bid so that a deal can be reached "as soon as possible." Fox's aide confirmed the report, speaking on condition of anonymity.
    After 15 years of negotiations, China hopes to this year join the organization that makes rules for world trade. But it needs approval from all 141 WTO members; Mexico and the U.S. are the only ones that have yet to complete negotiations. Talks with Mexico were interrupted in November because Chinese negotiators were waiting for Fox's administration to take office. … Foreign investment in Mexico has surged in the last five years, thanks to free-trade agreements and domestic deregulation. The U.S. is by far the largest investor in Mexico, followed by Britain, Japan and Canada.

      Bush urges renewal of China trade ties
      6.2.01   James Gerstenzang L.A.Times
    Wash.D.C.   President Bush on Friday said that extending normal trade relations with China for another year would signal U.S. desire to help the Chinese join the intl trading system, boost economic development and gain greater freedom. The president sent the China trade measure to Congress on Friday, moving to keep relations with Beijing on an even keel. He had announced his decision to extend the trade provision in a speech Tuesday in Los Angeles. Rep. Dana Rohrabacher (R-Huntington Beach) said he would seek to overturn the extension through a congressional vote. Congress has 60 days to reject the trade status. Bush had until Sunday to tell Congress whether he would seek renewal. The trade provision gives China the same access to the U.S. market, in terms of lowered tariffs for its products, as most other nations. The exceptions to the normal trade status include Vietnam, Cuba, N.Korea and Afghanistan.

    A year ago, Congress voted to make the normal trade status permanent for China. But that does not take effect until China joins the WTO. Negotiations to complete that move are still underway. In a written statement, Bush said the trade measure would work in the "economic & security interests of the American people." At the same time, he said, it "sends a clear but simple message to the people of China: U.S. is committed to helping China become part of the new intl trading system so that the Chinese people can enjoy the better life that comes from economic choice & freedom." "Fair trade is essential not only to improving living standards for Americans but also for a strong & productive relationship with China," Bush said.

    The decision, despite the vote a year ago, is controversial, particularly in light of the recently rocky state of U.S.- Chinese relations. Although there was no suggestion that Bush would not extend the trade status, the decision followed China's recent announcement that it was conducting war games across from Taiwan. In April, a U.S. spy plane made an emergency landing on China's Hainan island after colliding with a Chinese jet fighter. The Chinese pilot was killed, and the American crew was held on the island for nearly 2 weeks. Seeking to smooth over likely opposition, Bush sought to remind critics of the importance that an economically powerful China can hold in relation to U.S., even as he acknowledged that the relationship has been troubled.

    "U.S. has a huge stake in the emergence of an economically open, politically stable and secure China," the president said. "Recent events have shown not only that we need to speak frankly and directly about our differences, but that we also need to maintain dialogue and cooperate with one another on those areas where we have common interests." Outlining the administration's argument, Sec.State Colin L. Powell portrayed the decision as one that would pressure China to change "for the better." At the same time, American exporters would be able to maintain normal ties with Chinese purchasers of their products. "The president's decision is not an endorsement of China's policies, some of which clearly conflict with America's views & values," Powell said in an opinion column written for the Wash.Post. "Rather, we believe that extension of normal trade relations with China again this year is clearly in America's interest."

    China's response focused on the mutual benefit from the 2 nations' trade relationship, emphasizing that U.S. companies benefited from it. "This is a 2 way reciprocal trade arrangement between 2 nations and absolutely not a favor granted by one country to another," said Foreign Ministry spokesman Zhu Bangzao. In the past, the prospect of normal trade ties with China has brought vociferous opposition. Labor unions have objected, arguing that the ties suggest acquiescence to low pay & harsh treatment of workers in China. Others, including conservative Republicans & liberal Democrats, have built their objections around China's human rights record, arguing that the U.S. should use economic pressure to encourage Beijing to increase democratic freedoms.

    Sale of Body Parts in China
    6.16.98   asst Sec.State John Shattuck, Democracy, HRts and Labor HIRC

    foreign embassies & missions by nation
    3/25/00 region per 1999 HRts Practices Country Rpts
    China per 1999 Intl Narcotics Control Strategy Reports
    Washington Report a la Alger Hiss: exStateDpt
    State Dept Historical Advisory Committee
    foreign policy org acronyms incl some links
    USAID   net guides
    IFES

    players   delegates at U.S.-Africa Ministerial Conference on Partnership in 21st Century WashDC 3.16-18.99
    GWBush Asst.Sec. x
    Sr Policy Advisor email
    202.225.6636 f.1988   Cannon HOB WashDC 20515

    US HRts rpt interferes China's internal affairs
    3.6.02   People's Daily

    The Chinese govt Tue. criticized U.S. for double standards and interfering in China's internal affairs under the pretext of human rights. Foreign Ministry spokesman Kong Quan lambasted the 2001 global human rights report issued by the US State Dept, pointing out that the report is another manifestation of US interference in China's internal affairs. At a regular press conference, Kong said the report fabricated facts and confused truth and falsehood to attack China on its legal system, ethnic policies and human rights conditions. "The Chinese govt & people are strongly indignant about and are resolutely opposed to such a behavior," he said.
    He said the Chinese govt has been devoted to the improvement & protection of human rights & basic freedoms, and human rights conditions in China are now in the best period of improvement than they have ever been. Kong said the US turns a blind eye to its own violations in the field of human rights, which are widespread in the US, while arbitrarily distorting human rights conditions in other countries. "This is exactly intentional," the spokesman stressed, saying that the US has adopted double standards on human rights & ethnic issues, which is sure to incur scorn and opposition from people around the world who respect justice. China demands the US respect the basic guidelines in international relations, correct its wrongdoings and stop its interference in China's internal affairs at the pretext of human rights, he added.

    HK govt responds to US HRts report
    The Hong Kong Special Administrative Region (HKSAR) govt Tue responded to the US Country Report on Human Rights 2001 concerning Hong Kong's human rights situation. A SAR govt spokesman pointed out that there are a few points in the report which the SAR govt is obliged to clarify. "We note the US govt's view on democratic development in Hong Kong," he said, noting that "In considering how to further the constitutional development of Hong Kong, we should consider very carefully the impact of democratic reform on society and adopt a step-by-step approach in accordance with the framework laid down in the Basic Law." It is widely recognized by the international & local communities that press freedom is respected in Hong Kong, the spokesman said, adding that "The fact remains that the media has been rigorously and relentlessly exercising its role as a watchdog on the govt." The spokesman said the SAR govt has spared no effort in preventing Hong Kong from being used as a migrant trafficking center. "We will continue to maintain close trans-boundary cooperation with law enforcement agencies overseas and in the Mainland to bring migrant smugglers to justice," he said.

    As regards to complaints of excessive use of force by police, the spokesman said the Hong Kong police force takes a serious view of any allegation of excessive use of force by police officers. "All such complaints are investigated thoroughly by the Complaints Against Police Office and any investigations of which the results are 'withdrawn' or 'not pursuable' are subject to close scrutiny by the Independent Police Complaints Council (IPCC) before they are endorsed," he said. The spokesman said that the govt was committed to tackling domestic violence. On the participation of women in govt & political life, he said women made up one-third of the civil service and comprised about 24% of directorate staff. Stating that the govt is fully committed to the protection of human rights, the spokesman said, "Human rights are well protected in the Basic Law, our mini-constitution, the Bill of Rights Ordinance and various local laws."

    Powell to visit Beijing as U.S.-China ties improve   7.5.01   Reuters

    Wash.D.C.   Sec.State Powell said on Thursday he will visit Beijing this month to prepare a U.S.- China summit amid signs that ties between the 2 powers were entering a more productive & stable period. In an interview with Reuters, Powell expressed hope that frictions over Beijing's detention of U.S.-connected Chinese scholars would soon be resolved and said "the force which causes us to cooperate is more powerful than the force that may cause us not to cooperate." Sino-American relations were plunged into crisis early in the administration of President Bush when China detained for 11 days the crew of an American Navy surveillance plane that made an emergency landing on Hainan Island April 1 after colliding with a Chinese fighter.

    There also had been increased tensions over Bush statements and decisions viewed as drawing U.S. closer to Taiwan, which Beijing considers a renegade province. But in recent days China has sided with the United States at the United Nations on Iraq sanctions, concluded a hard-fought World Trade Organization membership agreement and returned the U.S. surveillance plane, albeit in pieces. The Bush administration angered human rights advocates but pleased China by declining to oppose Beijing's bid for the 2008 Olympic Games.

    scholars to be released?
    Furthering the goodwill trend, China Thursday put on trial 2 U.S.-connected Chinese scholars accused of spying for Taiwan that Bush personally asked be freed. The proceedings are widely viewed as a prelude to the scholars' release. The trials of American citizen Li Shaomin and Gao Zhan, a U.S. permanent resident, were confirmed soon after Bush spoke by telephone with Chinese President Jiang Zemin. A U.S. official said it is believed to be the first telephone call from Bush to Jiang and that the gesture was "indirectly" linked to the spy plane, which arrived at a Georgia air base to be reassembled and returned to service. "The whole (spy plane) incident is completely off the screen now and we can focus on this important, complex relationship," the official said.

    Powell doubted Jiang gave Bush any actual assurances about the scholars' fate but said: "I hope those (judicial) proceedings will be concluded in a way that hopefully will create a path that will allow these folks to return to the U.S. and rejoin their families." Meanwhile, a Powell aide, Policy Planning Director Richard Haass, made an unannounced trip to Beijing this week for talks with a senior foreign ministry strategic planner. Powell, speaking with Reuters reporters and editors at the State Department, confirmed Haass's visit and said the talks "went well. There was a clear indication that they're anxious to move the relationship forward in a more positive way". Haass's talks were wide-ranging, including counter narcotics efforts, Taiwan, weapons proliferation and crisis management.
    Powell will meet Chinese Foreign Minister Tang Jiaxuan in Hanoi later this month at the annual meeting of the Association of Southeast Asian Nations and also hold detailed talks with him in Beijing, where Bush and Jiang plan an October summit. The secretary said he did not know if the administration's missile defense plans came up in Haass's meetings but he intended to discuss the subject when he goes to Beijing.

    missile defense
    China and many experts argue that because of its relatively small size, China's nuclear arsenal is more threatened by U.S. missile defenses than Russia, which like the United States possess thousands of nuclear weapons. But Powell said: "I can demonstrate to them that they really should not see it that way. What we are going to do with missile defense will be fairly open, obvious, transparent." "It's not intended to be a threat to their deterrence capability and I hope we'll be able to persuade them of that over time," he added.
    On improving ties with Beijing, Powell said the two countries have a "mutual interest in removing these irritants in our relationship." "We have large areas of interest with respect to trade, economics, our views on the security situation in the region. There is every incentive for us to remove these irritations so we can pursue these issues," he said. Powell stressed that disagreements remain, including human rights and non-proliferation, and will be debated.

    One thorn is China's sale of missiles and other technology to certain countries. Republicans repeatedly accused former President Bill Clinton of failing to invoke U.S.-mandated sanctions for China's behavior in this sphere.
    Although it has not yet done so, Powell insisted "this administration will not shrink from our responsibility to hold people to account for the commitments they have made to us," including imposing sanctions.
    Also Thursday, State Dept faulted China's handling of the Falung Gong spiritual sect, saying it was "deeply disturbed by reports that China has further intensified its harsh repression of the Falun Gong." A spokesman cited "particularly troublesome" reports that over a dozen Falun Gong practitioners died in a labor camp on June 20.

    Powell says China should democratize
    7.23.01   AP

    Tokyo   Sec.State Powell said Monday the U.S. must retain its military presence on Okinawa despite friction caused by the misbehavior of U.S. troops stationed there. Speaking to reporters while en route here, Powell said the U.S. does everything it can to instruct the troops on proper behavior but added "there will be these occasional incidents." In the most serious recent incident, a U.S. Air Force sergeant was charged with raping a Japanese woman last month.
    "I don't think it is possible to remove our presence from Okinawa," Powell said, adding that U.S. deployment there is critical for national security. There are almost 50,000 troops stationed in Japan, most of them on Okinawa. Powell arrived here Monday evening for an 18-hour stay highlighted by a meeting Tuesday with Prime Minister Junichiro Koizumi. He also has a lunch meeting with the new U.S. ambassador, former Sen. Howard Baker.

    Powell then leaves for Vietnam for talks with leaders from more than 20 Asian and Pacific countries. Afterward, he will visit South Korea, China and Australia. The meeting could well be dominated by the political upheaval in Indonesia. Powell was monitoring the situation there closely, officials said. On China, Powell said that country will never become a full-fledged member of the international community until it moves toward creating a democratic system. He also said the U.S. is looking for a basic change in China's human rights attitudes. It is not enough for China to resolve occasional rights cases that have attracted international attention, he said.
    Increased protection for human rights would improve Chinese society as well as the country's international standing, Powell said. The international community is not just an economic entity, he said. "It is a community of human rights, community of individual rights. It is a community of increasing democratization if you want to be a full-fledged member," he added. Powell said he planned to raise with Chinese officials their compliance with arms control agreements reached with the U.S.
    He did not provide details but his comment could signal American dissatisfaction with an agreement reach last November in which China promised not to sell nuclear technology abroad. At the time, Chinese companies were suspected of transferring dangerous missile technology.

    Inscrutable Mr. Hu may be Tony Blair in disguise
    11.18.02   Robert Thomson ed. Times   ¹

    China's Communists see themselves as the natural party of govt. Besuited men stretching across the stage of the Great Hall of the People displaying cultivated political blandness suggesting rules for Politburo Popstars are a little unconventional; the most inoffensive & least charismatic leaders are chosen to preside over 1.3 billion people and, depending on how you do the sums, to steer the world's second largest economy.
      [ This editorial written in response to public relations campaign for Hu's formal designation as sucessor. Hu shortly vanished from headlines back to "cultivated political blandness" ]

    Somehow, the Chinese Communist Party has developed a formula for a bleach that drains colour from a kaleidoscope and personality from its politicians, meaning that every movement in the Great Hall and every photograph published in the "official" press was analysed to absurdity in the quest for an answer to that eternal question: what on earth is going on?
    In the early days of China-watching, the answer was fascinating to a few and meaningless to the many, given that the country was content with an isolation that was far from splendid. It was a distant place whose exoticism, if not eroticism, was attractive to aesthetes & political extremists.

    It is now officially impossible to ignore China. The economic statistics are extraordinary, but its influence on the outside world is becoming simultaneously both more obvious & more subtle. Much less easy to prove statistically is whether Hu Jintao, new head of the Communist Party, will be influential or merely a political prop.
    There is much speculation in Sinologist circles about ongoing influence of predecessor Jiang Zemin, whose old Politburo pals form the sinister sounding "Shanghai Gang"; not since the unremittingly violent film Reservoir Dogs have men in neatly pressed suits seemed so threatening.

    But the inevitable over-interpretation of who stands where on the Chinese stage could prompt the interested observer to miss the 2 most significant trends that emerged in Beijing over the past couple of days: the Chinese Communist Party has evolved into new Labour; and the Emperor system is dead.
    The Communist Party was supposed to honour the worker, peasant and soldier but is now the party of the reasonably well-educated urban elite and of those outside the cities who aspire to a similar lifestyle. These growing constituencies are courted & reinforced by the most influential political broadcasts in China, TV advertisement.
      [ GOP model of hegemony maintenance ]

    Why care for a grease-stained, sweaty "model worker" when the idealised Chinese couple (whose latest- model fridge has automatic defrost and an extra-large freezer compartment) are stylish & fragrant, and their perfectly presented single child has every gadget imaginable and a diet rich in chocolates & health drinks that come with modern packaging & traditional restorative powers?
    Over & over, night after night, most Chinese are witness to materialist greatness which is beyond their means and certainly beyond the ambitious imaginings of Deng Xiaoping when he launched the economic reform pgm in 1978. Then, individual expectations were in the basement, but they are taking the express elevator to the penthouse, and the party is going along for the ride.
      [ Given Chinese human & natural resources, the pump preceding capitalism's obligatory dump is likely to be a spectacularly world record cycle. Since stability, sustainability & stewardship shrink profit margins, capital's challenge is to compel Chinese to forget their history as recent as their parent's grandparents, 20th century commodities markets whipsawed by intl economic fraternization at most a century past. ]

    Like the Labour Party, the Chinese Communist Party suggests that it is the natural party of govt because of a record of sound economic management. When Mr Hu was introduced as leader he said that his Politburo would "work hard to build a well-off society", which is some way from the state of permanent revolution that Mao desired.
    Like the Labour Party, the Communist Party is alienating traditional supporters by courting successful business people, whom it calls the "most advanced productive forces". They are welcomed in Mr Jiang's clumsily titled 3 Represents theory, now officially blessed as doctrine (along with Marxism-Leninism, Mao Zedong Thought & Deng Xiaoping Theory); Three Represents & its inherent acceptance of private wealth is China's equivalent of abandoning of Clause Four.

    Whether Britain has become a one-party state will become clearer over the next 2 or 3 elections, but the Communist Party is betting that if it gets the economy right and welcomes the newly influential merchant class, there will be no need for political pluralism. The problem is that the party can't be all things to all people; the Gansu farmer who lives in humiliating poverty has little in common with the Shanghai sophisticate who speculates on the stock market and is about to buy a second apartment.
    The death of the Emperor system makes it even more difficult to bring these disparate "classes" together. Jiang was the last in a fading line and, while he may linger in the shadows, his imperial influence has never come close to that of Deng or Mao, whose tyranny was inspired by a sense that party & country were not under total control.

    Mao's thoughts were inspired by the rise & fall of previous dynasties and he had presumed that the system would continue long after his remains were imperfectly preserved. China has finally collectivised its leadership. Hu is hardly omnipotent and will need long conversations & consultation if he is to introduce even minor policy changes.
    His job will be made easier by the virtual disappearance of the extreme conservatives, who were always distrustful of Deng, wary of market reforms and obsessed in their own peculiar way about party purity.
    With mists of ideology evaporating, Chinese politics should become easier to understand, although it is not yet in the interests of Chinese politicians to become too comprehensible. But even the most evasive of the new Politburo members would have to admit that the terms & conditions of Mandate of Heaven have been rewritten. As they say in Shenyang: Jinji weiyu shouwei (It's the economy, stupid).

    Thousands queue to see Mao on anniversary
    9.9.06   E.Graham-Harrison, B.Kang Lim, L.Beck Reuters

    Beijing   Thousands queued at Beijing's Mao Zedong Mausoleum on Saturday for a glimpse of the embalmed corpse of the former Great Helmsman on the 30th anniversary of his death but Chinese state media kept coverage of the event low-key. Police and undercover agents infiltrating crowds outside the squat building on Tiananmen Square were a reminder of govt sensitivity about how the man who founded "new China", but then plunged it into bouts of famine and chaos, is remembered.

    Five years after his death the Communist Party, which uses Mao as an ideological prop to help govern an increasingly materialistic country, officially declared him "70 percent right and 30 percent wrong." It has discouraged further discussion.
    "Their legitimacy still relies upon his enormous legend. Khrushchev denounced Stalin knowing they could fall back on Lenin. but Mao is both," said Harvard University Mao scholar Roderick MacFarquhar.
    For the hundreds of millions of rural poor in particular, often left behind by the vast economic changes of recent years, he represents a govt that cared about their plight.
    "We adore Chairman Mao. We are farmers like him and have endured a lot of hardship," said 45-year old Guo Xin, who had taken an overnight bus from neighboring Hebei province to lay three yellow chrysanthemums at the Mausoleum at dawn.

    But officials who use Mao's image to shore up their authority are also wary of stirring up memories of his increasingly autocratic leadership and ruthless political campaigns, which claimed millions of lives. The low-profile cover of the anniversary was a stark contrast to the extravagant bombast of tributes at the height of Mao's personality cult.
    A memorial gala with the throwback title "The reddest sun -- Chairman Mao is the most beloved" was held at the cavernous seat of parliament, the Great Hall of the People, on Friday. But its program of famous names from the 1960s and 1970s performing songs based on Mao's works and reciting his poems got just a brief write-up buried in the pages of the Beijing Daily.
    Only the English-language China Daily, a govt paper aimed mostly at foreigners, put the anniversary on its front page, but the article relied on foreigners' comments, leaving out Chinese scholars' views of their former leader.

    Govt's mixed assessment of Mao's legacy is echoed by many who lived through first the famine caused by his Great Leap Forward and then the decade of chaos and persecution Mao sparked in 1966 when he launched the Cultural Revolution.
    "Life is better today, we have a lot more opportunities and choices. In Mao's day everything was rationed, from food to oil," said supermarket worker Zhan Jingsheng, 50, standing beneath the huge Mao portrait on the Tiananmen gate that gazes across the square to his own mausoleum. "But we have more worries. In Mao's day the state took care of us and we couldn't be fired. We did not have a lot, but we didn't starve," Zhan said.

    For many of the younger generation, Mao's relevance as anything more than an abstract figurehead is fading. Strolling on the vast square to enjoy a rare day of sunshine in the pollution-clogged capital, Li Xin, a 24-year-old clerk in a sports goods store, was oblivious to the day's significance.
    "What is it today? Teachers' day?," he said when asked if he was outside the Mausoleum to commemorate the anniversary.

    In China, living with the unspeakable
    9.7.06   John Pomfret
    Wash. Post

    40 years ago this past August, the first killings were carried out to launch the Great Proletarian Cultural Revolution in China. Two educators in Nanjing and a high school principal in Beijing were the first victims of the Red Guards, the shock troops of Mao Zedong's war against rivals in the Communist Party. Over the following 10 years, 18 million city kids were dispatched to the countryside to hack out meager existences amid the peasantry. Millions of officials were purged and hundreds of thousands were executed.
    My college classmate at Nanjing University, Wu Xiaoqing, was the son of the two educators who were murdered in Nanjing; he was 11 when his parents died. When we studied together he had the nickname "Old Wu" because he seemed old before his time.

    Today China's juggernaut economy, freewheeling night life and sophisticated diplomacy make it seem a world away from the Communist Party-imposed madness of the 1960s. Wu's life is an example. He's a university professor, a published author and the father of a young woman who is preparing for college in Australia. No other country seems to have been so adept at avoiding the pitfalls and erasing the memory of its past.
    Wu's parents were beaten to death by a gang of Red Guards 8.3.66. At the time, his father was the top educator in Jiangsu province and his mother was the party secretary at a leading university in Nanjing. The gang descended on their home, dragged the parents out onto the streets in their pajamas and set upon them savagely. The autopsy report on Wu's father listed 6 broken bones, a brain hemorrhage and massive trauma to his internal organs.

    A few years later, Wu had the opportunity to join the Communist Party, road to a good future in China, but there was a condition. Party officials told him he had to have a "correct" understanding of why his parents died. Wu wrote in his application that his father died of chronic hepatitis and his mother of high blood pressure, and he added the requisite denunciation.
    "My parents made mistakes and you must criticize mistakes," he wrote. "The Cultural Revolution is great!"
    His application for party membership was accepted. He felt no remorse for joining an organization responsible for the murder of his parents.
    "I know I wrote lies. They made me write lies," he rationalized to me later. "But a party membership helped improve my life."

    When the Cultural Revolution ended, Wu passed college entrance exams and found a job at the university where his parents were killed. His reasoning was simple. His family had been victimized there so he would be protected there.
    His parents' murderers were never prosecuted, despite the fact that two Chinese journalists (a writer and a photographer) documented the whole affair and the evidence was quickly placed in the hands of the police.

    Old Wu kept his head down. He did not march during the 1989 student protests that ended in the Tiananmen Square crackdown. After the crackdown he was put at the head of a committee investigating professors in the history dept of his university.
    In recent years, Wu was assigned to write a chapter in a high school history textbook about the Cultural Revolution. He tried to slip in some details about the horrors of the time, including a subtle critique of the systemic nature of the problem. But it was excised by a censor's knife.

    Wu is aware of the Faustian bargain he's made to live and live well in the People's Republic of China. It's a bargain that millions of people like him in China's growing middle class have made. They inhabit a system that many despise, but it's also a system they believe they can't live without.
    The cost of moving forward is forgetting the past, Old Wu would say, including the dream of bringing to justice the people who killed your parents.

    China wants the 21st century to become the Chinese century, yet history has a way of sneaking up on countries, just as it does on people. The late Chinese writer Ba Jin lobbied hard in the last years of his life for a museum to commemorate the victims of the Cultural Revolution; it was never built.
    I asked Wu what he thought about such a museum. 40 years after the Cultural Revolution, he said, "China isn't ready for it." in China.

    HIRC   IOHR
    unilateral trade sanctions & Cox rpt 6.14.99 105th Cong.
    Cong. Nancy Pelosi D-CA 10.22.97 re People's Liberation Army's harvest of organs from executed prisoners

    opposition "threat to sovereignty"

    House votes to block compensation to China
    7.19.01   Reuters

    Wash.D.C.   Calling China's demands for $1 million to cover its costs stemming from the downing of a U.S. aircraft the height of arrogance, the House of Representatives voted overwhelmingly on Wednesday to block such a payment. The Bush administration has said it is reviewing the claim and would consider "reasonable" costs to Beijing for holding the U.S. crew and reconnaissance plane after the April 1 midair collision with a Chinese military aircraft that forced the U.S. plane to make an emergency landing on China's Hainan Island. But members of the Republican-led House said they wanted to make sure that none of China's claims were paid. They added language to block such payments to a $38.5 billion bill the House later passed to fund the departments of Commerce, Justice and State next fiscal year starting on Oct. 1. The House backed the amendment 424-6.

    "The brazen audacity of some demands can almost take on a kind of comic grandeur," said House Republican Whip Tom DeLay of Texas. "This Congress will never allow a single dollar to be used to compensate the perpetrators of international aggression," he said. The collision in which a Chinese pilot was killed caused a diplomatic row as China blamed the United States, detained the 24 U.S. crew members for 11 days over Washington's objections and held the aircraft for three months before returning it, in pieces, to U.S. custody.
    U.S. said its aircraft was not in China's air space and not at fault in the collision. "Now the Chinese govt has presented us with a $1 million invoice. This ... is the ultimate arrogance on the part of this communist regime," said Rep. Tom Lantos of California, senior House International Relations Committee Democrat.


    Chinese editor fired amid clampdown
    6.18.00   AP

    Beijing   An editor at a popular Chinese newspaper has been fired and journalists forced to undergo political instruction, part of what observers say is a new clampdown on the news media. Ma Yunlong was removed Friday as deputy editor-in-chief of the Dahe News in Zhengzhou, capital of Henan province, a newspaper spokeswoman said. Ma said his dismissal came after he approved articles that exposed corruption among health officials & business regulators.
    "These articles were well-intentioned and sought to improve the overall environment'' in Henan, Ma said by telephone. "I was just doing my job.''

    Journalists & media watchers said a new campaign of firings, closures and intimidation is under way to rein in newspapers seen as challenging the Communist Party's strict limits on coverage. 2 top editors at Southern Weekend, one of China's most prominent & aggressive newspapers, were dismissed less than 2 weeks ago following official complaints about their articles. Officials at the govt's All-China Journalism Association say reporters & editors nationwide are being forced to attend refresher courses on the role of the media in China's communist society.

    And at least one popular newspaper has been closed under murky circumstances. Authorities in the southwestern province of Sichuan recently shuttered Shubao, a daily that enjoyed high readership and relative autonomy from govt depts. While all newspapers are state-owned, dwindling subsidies have forced officials to let them compete for readers with livelier stories that sometimes cross the line of official tolerance. But period clampdowns have at times occurred. Officials this year are concerned independent reporting could fan resentment over rising unemployment & official corruption.
    Many also want to muzzle the media to prevent it from joining in power struggles as China begins a transition to a new generation of top leaders next year. "The party has no intention of allowing a free press, but now they have to contend with growing professionalism among journalists, profit seeking by media and the effects of exposure to media outside China,'' said Joseph Cheng, a China watcher at City University of Hong Kong.

    The Dahe spokeswoman said govt investigators cited an article approved by Ma and published Feb. 28 that said health insurance officials drank with female escorts supplied by drug and medical companies at a national industry conference. Ma said the article was written jointly by reporters from the Dahe News and the govt's official Xinhua News Agency. Ma said he also was criticized for approving use of a Xinhua article in March that aired complaints by foreign investors about graft, chaotic management and obstruction by Henan officials. An official of the Henan provincial propaganda dept, which oversees media in the province, denied that anyone had been penalized at the newspaper.

    Just following orders in China
    9.14.05   Max Boot
    L.A. Times

    … California-based Web giant Yahoo deserves the same kind of public opprobrium that would have fallen on any Western firm that dared to publicly cooperate with the enforcers of apartheid for what it has just done in China in the case of journalist Shi Tao. Shi, victim of Yahoo's shameful behavior, was sentenced to 10 years in jail for "illegally sending state secrets abroad."
    Shi was a reporter for a Chinese newspaper, Contemporary Business News. His crime consisted of e-mailing to a New York-based website information about a supposedly secret directive his newspaper had received from the state propaganda dept telling it how to cover the 15th anniversary of the 1989 Tiananmen Square massacre.

    The security services were able to track him down thanks to information helpfully provided by Yahoo's Hong Kong affiliate, whose e-mail service Shi used. Yahoo co-founder Jerry Yang breezily defended his company's role: "To be doing business in China, or anywhere else in the world, we have to comply with local law."
    … If local law required Yahoo to cooperate in strictly separating races or rounding up & extermination of a certain race or stoning of homosexuals, would Yang eagerly do govt's bidding in those cases too?

    Summed in most recent State Dept human rights report: "The [Chinese] govt's human rights record remained poor, and the govt continued to commit numerous and serious abuses." These included "instances of extrajudicial killings; torture and mistreatment of prisoners, leading to numerous deaths in custody; coerced confessions; arbitrary arrest and detention, and incommunicado detention."
    State Dept estimates that at least 250,000 people, and possibly as many as 310,000, are serving sentences in "reeducation through labor" camps and "other forms of administrative detention not subject to judicial review." The subjects of such crackdowns have included labor, religious and political activists, including Tiananmen Square protesters (at least 250 of whom remain behind bars) and Christians, Buddhists, Muslims and Falun Gong members.
    A particular focus of official ire has been ethnic minorities in Xinjiang, Inner Mongolia and Tibet who are harshly persecuted for complaining about their lack of equal employment and educational opportunities.

    Yahoo's conduct is not out of the ordinary, either for it or for other American media firms operating in China. They all eagerly kowtow to a despicable police state. Yahoo, Google, MSN and other Web search engines have agreed to block searches in China involving words such as "Tibetan independence" or "human rights." Bloggers can't post messages involving "democracy" or other "dangerous" concepts. Rupert Murdoch's Star TV has agreed not to carry BBC news or other information that the Chinese govt might not like. Cisco has sold Beijing thousands of routers programmed to monitor Internet usage and flag for the secret police any "subversive" sentiments.
    There is a theory that greater access to information technology will further freedom in China. The reality is that the communist oligarchy is adroitly using the Internet to increase its level of control with the help of its American business partners.

    The conduct of Yahoo et al should be illegal. The Commerce Dept, and if necessary Congress, should forbid American firms from facilitating human rights abuses in China. Unfortunately, the Bush administration would probably block such rules because it continues to cling to the vain hope that Beijing will solve the North Korean nuclear crisis for us. The only pressure the administration is interested in applying at the moment is to get Chinese firms to stop selling us so many bras.

      telecomm
    China is world's second in home internet access
    4.22.02   Reuters

    New York   China trails only U.S. in number of people with Internet access at home, more than 56 million able to connect from their residences despite more than half of its population lives on less than $2 a day, per Nielsen//NetRatings study released Monday showing just over 5% of more than one billion Chinese can reach the Internet from home. Far higher%age in many developed nations reach the Internet at home, but China's massive population pushed it above Japan, Germany, and Britain in terms of overall at-home Internet access. The U.S. leads the world with 166 million Americans reaching the Internet at home, the study showed.

    With Internet subscription rates in China growing at 5 to 6% monthly, 25% of China's population, or more than 250 million people, may have online access in only 3 or 4 years, said Nielsen//NetRatings managing dir. Hugh Bloch in North Asia. "The potential is staggering, and it's a not-too-distant reality," he said.
    Key limits on China's growth remain, however. Only 35.6% of China's homes have phone lines, restricting availability to a minority of homes, according to the report. The study was conducted through interviews with 1,000 randomly selected households with fixed phone lines across mainland China.

    China to be #2 market for PCs by 2006 study
    3.5.02   People's Daily

    With the shipment of personal computers in China surpassing that Japan, China will become second largest market in world after U.S. by 2006, leading IT market research organization predicted. "After adjustments & consolidations in 2001 & 2002, growth of market will pick up speed until 2006," said CCID Consulting Co Ltd president Yang Tianxing, affil. with Information Industry Ministry. Intel's CEO Craig Barrett also said Thu. that China will surpass Japan as its largest customer in this year or the next. According to CCID Consulting forecasts shipment of desktops will see a breakthrough with 10.1 million units in 2003 and the figure will reach 17.4 million, more than double the 7.28 million last year. Aver. annual growth rate for Chinese PC market will remain at 18.8% for next 5 years.

    Sales volume of market expects almost 2 fold increase to 104 billion yuan (US$12.6 billion) from last year's 51.7 billion yuan (US$6.3 billion), according to the research firm. Yang chided the pessimistic outlook of some researchers that China's PC market has entered recession. "The difficulties many PC makers faced last year mainly resulted from too high expectations of computer sales in China after the Internet fever in 2000, so the long- term prospect will still be positive," the veteran IT expert said at the weekend.
    He believed China's entry into the World Trade Organization (WTO) last December and the initiation of the nation's 10th 5 Year Plan (2001-05) would be driving forces for the sustained growth of the PC market. The start of construction for the 2008 Beijing Olympic Games will also spur demand. For foreign computer makers, the attraction of the world's most populous market will be enhanced in future, Yang said.

    "In 5 to 10 years, more & more intl players will shift their plants to China which will become a centre of PC manufacturing and exports by then," he added. However, there will still be hard times for almost all PC makers this year, analysts believe. According to a recently released report on CCID Consulting on the desktop market in 2001 and 2002, the growth of shipments last year was 17.4% on 2000, while the growth of sales was only 12.3%.
    The report, one of CCID Consulting's 67 reports on almost all areas of the information industry in China, also forecasts this year's growth rate of PC shipments over 2001 will be 16.7%, lower than the rate in 2001. The growth of sales is expected to shrink further to 12.2%. Meanwhile, the average price of desktops last year dropped by 4.4% on the previous year.

    Changes and industry reshuffle inevitable. "The scenario for the market will see some major changes in these years and an industry reshuffle is inevitable," said Zhang Hongfen, a senior researcher on computer market with CCID Consulting. She predicted the arena for desktop makers would be more and more concentrated into the hands of some big nationwide players.
    "Future competition will be based on efficiency, so large scale firms will have an advantage," she explained.
    Together with the increased ferocity of the competitions, rising frequency of mergers and acquisitions will also characterize the evolution of the market, with many existing players making an exit.

    China leads PC sales in Asian Pacific. Sales of personal computers in the Asia-Pacific region, excluding Japan, rose 14.4 percent in the first quarter from a year earlier to 4.7 million units, led by sales in China, according to latest data released by U.S.-based market-research firm Gartner.
    Asia-Pacific personal-computer sales are traditionally slower in the first quarter, but the decline from the fourth quarter of 2000 was a slight 0.1%, as strong sales growth in China offset declines elsewhere in the region, Gartner said. It said 1.9 million personal computers were sold in China in the first quarter, up 38% from a year earlier.

    China, Taiwan conflict causes flag flap at Comdex   6.19.01   Reuters

    Las Vegas   China's refusal to recognize Taiwan as anything more than a renegade province has stirred up a duststorm of controversy in this desert city, resulting in a ban on all foreign flags at Comdex, the biggest U.S. computer show. China's views carried particular clout this year because the country, a growing high-tech powerhouse, will send a full-fledged delegation for the first time to the show scheduled to start on Nov. 12. Key3Media Group Inc, Los Angeles-based company that organizes the massive event held every fall, confirmed that no flags will be draped from the exhibition hall ceilings at this year's exhibition except for that of U.S. Hong Lei, a spokesman for the Chinese consulate in San Francisco, said his country's state-run Council of Chinese Trade Promotion reiterated its opposition to the Taiwanese flag several times before Key3Media decided to abandon the banner hanging at Comdex.
    China views the Taiwanese flag, a red banner with a white sun on a blue rectangle in the upper left corner -- as an affront to the official U.S. policy that recognizes only one China with the Beijing govt as its sole representative, Hong said. "It's our official stance that in the international arena people should abide by the 'one China' principal," Hong said. "There's only one China, and the flags they put on should be standing for the People's Republic of China. That is the sole legal govt of China ... We emphasized this principal to the organizers." Key3Media spokesman Rick Moore said he was not aware that China's position had prompted the change, saying the decision was purely financial and practical. "It was costing us an enormous amount of money," he said. "We decided last year that we weren't going to hang any flags ourselves because it was a logistic nightmare and because of costs."
    Individual exhibitors and delegations will still be allowed to hang national flags from their own booths and pavilions, Moore said. "You can put any flags you want at your booth in Comdex," Moore said. "We have a huge international presence at Comdex, and countries put up all kinds of flags. ... The fact is, whether you're China, Taiwan, Korea or France, you have a pavilion and you can pretty much do whatever you want to."

    China #1 mobile phone country in the world
    3.5.02   Han Rongliang People's Daily

    In a short span of a dozen years or so, China has become a No.1 country in the world for cellular phone users. Neither strange nor new to see a garbage collector with mobile phone in hand. China has no brand-name cellular phone of its own. Kejian domestic made cellular phone field not until 1998 followed by Xoceco, TCL, Bird and Hai'er. Less than 3% of market shares in our hands in 1999, then a rise to 8% in 2000 followed with an increase to 15% in 2001. Domestic brands still lag foreign brands Motorola, Nokia and Ericsson in terms of technology in general while technology at the core is almost totally controlled by foreigners. Domestic models can be renewed once in 3 months while intl market sees change once in 7 days. … "Auto-reporting technology for the lost" made by Xoceco for cellular phone & the CDMA technology on chip-card separate from phone-set by Kejian. Meanwhile, the state will also make a lump sum of funds to support R&D for domestic manufacture. Whoever knows Chinese consumers best, says one expert, will eventually win the Chinese market. Better follow-up service is advantage of local manufacturers. …

      Aborted babies sold as health food for $10
      4.12.95  
    HK Eastern Express

    No one could accuse the Chinese of being squeamish about the things they eat; monkeys' brains, owls' eyes, bears' paws and deep fried scorpions are all items on the menu. But most dishes revered as national favourites sound as harmless as boiled rice when compared to the latest pint de jour allegedly gaining favour in Shenzhen - human foetus. Rumours that dead embryos were being used as dietary supplements started to spread early last year with reports that some doctors in Shenzhen hospitals were eating dead foetuses after carrying out abortions. The doctors allegedly defended their actions by saying the embryos were good for their skin and general health. …

      Out in the orchard
      7.19.05   Intl (Dwarf) Fruit Tree Assn study tour of world’s largest apple producer (China); 7.11-26.05 Shandong & Shaanxi provinces

    … …products for sale last night at health store at Beijing Airport. There were 60-capsule packages of various forms of “human placenta” for sale. According to the label, they were a product of Utah, USA. The price for one type, “Row Poison Soft Capsule,” was 429 yuan. (Currently there are about 8.2 yuan to the dollar.)
    In the part of the store where one might find a product such as Viagra, there were 2 products labeled as coming from Australia: “Deer Blood” (458) and “Essence of Kangaroo” (399 to 428, depending on the brand). …

      Controversial topics & seeing the sights
      7.15.05   ibid

    … One final note about this orchard: There was marijuana growing wild! Some suggested the weed is beneficial because it wards off snakes. Do they get so stoned they are harmless? …

    Chinese banks test investors' patience
    Foreign firms buy stakes to get into the huge market, but bad debt and corruption remain.
    9.11.05   Don Lee
    L.A. Times

    Shanghai   Foreign companies have been practically stepping over one another to invest in Chinese banks, but it will probably be a long time before anybody walks away with happy returns. Just ask Frank Newman, a turnaround artist who took the helm at Shenzhen Development Bank a few months ago. When the former No. 2 man at the U.S. Treasury Dept arrived at the bank, an institution with $25 billion in assets, he was amazed that there were no financial reports on co. divisions. The bank's thick book of bad debts was fraught with surprises: One real estate loan had been neglected for 12 years. Many others, he learned, were actually collectible because borrowers had hidden assets.

    "In all my years of banking, I've never seen anything like it," said the 63-year-old Newman, who helped revive Bank of America in the 1980s and Bankers Trust a decade later. Analysts consider China's financial sector to be the weakest link in the nation's booming economy. Chinese central govt has poured tens of billions of dollars to prop up its big banks, which have been hobbled by corruption and lax lending practices. At the same time, Beijing has encouraged foreign firms to buy a stake in them, to inject capital and much-needed technical and management know-how.
    Many have been happy to oblige. In recent months, Bank of America Corp., Royal Bank of Scotland, American Express Co., Goldman Sachs, Merrill Lynch & Co. and others have pledged to invest billions of dollars in Chinese banks.

    The allure is China's huge banking market, which is dominated by 4 state-owned banks but will be open to all comers at the end of 2006 under Beijing's agreement when it joined the World Trade Organization. Foreign banks are buying stakes now to get a toehold in that market, and investors are betting that China's banks will be reformed and someday become valuable publicly listed companies.
    Chinese banks have made progress, but they're still loaded with bad debt and operate inefficiently. Weak corporate management and corruption remain a problem at many banks. Last weekend, China's bank regulator reported that 1,700 employees were held for embezzlement and other bank crimes in the first half of this year.

    There could be more trouble ahead. Leading analysts say China's economy is downshifting. Corporate profits are weakening, as are Chinese imports of steel, oil and capital goods. Real estate activity in places such as Shanghai is slowing.
    "For the last 3 or 4 years, [China banks] have been operating in a very benign environment," said China expert &anp; Institute for Intl Economics sr fellow Nicholas Lardy. But now, he said, "I think we're at a turning point where the economy is likely to grow more slowly."
    That doesn't mean China's economy will tumble; few are expecting that. But given that Chinese banks have been lending liberally to private enterprises during good times, a downturn is almost certain to set the financial industry back, said Standard Chartered Bank (Shanghai) sr economist Stephen Green. "Inevitably, there will be a second large wave" of troubled loans, Green said.

    Central govt will see to it that the biggest banks don't fail because that could lead to social disorder, which could be disastrous for the Communist Party leadership. But a relapse would be more costly to Beijing, which already has handed out about $100 billion to banks, mostly to the big four: Industrial & Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China.
    The cash infusion has helped those 4 banks collectively trim the percent of bad loans from 35% a few years ago to about 10%, according to Chinese govt figures. But some analysts think that the share of problem loans is much higher than that. When analyzed with govt support excluded, each of these 4 Chinese banks has an unfavorable D rating from Standard & Poor's.

    "We don't think their credit quality will improve substantially because of a new partner," said Connie Wong, an S&P analyst in Hong Kong, explaining that it was partly because foreign investors can acquire only a minority stake, thus giving them relatively little control over operations and management.
    A foreign company is essentially restricted from owning more than 20% of a Chinese bank. A Chinese lender can have only up to 25% of its total shares in foreign hands before it faces significant constraints.
    In June, Bank of America announced it would spend $2.5 billion for a 9% stake in China Construction Bank, which is expecting to list its shares on the Hong Kong Stock Exchange this year. For that, the Charlotte, N.C. based bank got one seat on the Chinese bank's board of 14 members, although analysts say the deal also could give BofA opportunities to jointly market credit cards and other fee-generating products.

    The problems at China Construction Bank and the others go back decades, a legacy of a centrally planned economy in which banks functioned to serve state-owned enterprises and keep party bureaucrats happy. Even today, entrepreneurs complain that the big commercial banks favor state-owned firms. But Beijing is trying to change that culture and bring its lenders up to international snuff before December 2006, when foreign banks will be allowed to do business directly with Chinese consumers.
    China's big four hold most of the nation's $1.4 trillion in savings deposits as well as the lion's share of loans. Competing against them are about 120 city commercial banks and so-called shareholder banks. A few of them are listed in China's stock exchange. Still, said CLSA Asia-Pacific Markets analyst Andy Rothman in Shanghai, "There are no private banks in China because the Communist Party controls all of the country's financial institutions."

    Newbridge Capital, a Fort Worth-based private equity firm, paid $145 million late last year for an 18% stake in Shenzhen Development Bank. Other foreign firms that have opted to invest in smaller Chinese banks, partly so they can have greater influence, include Citigroup Inc., which for now holds 5% of Shanghai Pudong Development Bank, and Britain-based Standard Chartered, which last week agreed to invest $123 million for a 20% interest in Bohai Bank in the northern city of Tianjin.
    But as Newbridge's early experience suggests, it's going to be a long slog. Newbridge is unusual in that it has managerial control at Shenzhen Development Bank. The equity firm brought in Newman as chairman, who has helped recruit chief financial, credit and systems officers from Taiwan, Hong Kong and California.
    Newman, a former deputy Treasury secretary in the Clinton administration, replaced half of the branch managers. Newman says some of them were running their operations like fiefdoms. He also beefed up the bank's debt collection staff and then had them go after delinquent borrowers by using the courts and in at least one case by turning to Shenzhen police.

    That helped the bank collect $185 million of bad debt in the first 6 months of the year. But the bank still has $1.8 billion of nonperforming loans in its books. That represents a hefty 10.7% of the company's overall loan portfolio. The average nonperforming loan ratio in the U.S. is closer to 2%.
    Still, Newman says, there's "tremendous opportunity" to attract customers at Shenzhen Development Bank with credit cards, home mortgages, wealth management and investment funds, all of which are in their infancy in China.
    Beijing banking analyst Yang Qingling agrees. Not only are these products not developed, but Chinese banks also haven't really needed to compete for even basic customers, she says. Virtually all of them offer the same measly 1% interest rate for ordinary savings deposits. Yet Chinese can't invest in overseas markets, and China's stock market is dysfunctional, so most continue to sock away their incomes in their neighborhood banks.
    "I don't think the service is good," Yang said. "There isn't much difference between them."

    That's where foreign banks see an opening. But analysts caution that it'll hardly be a cakewalk. Last year Chinese officials lifted the ceiling on interest rates for loans, giving banks the ability to charge risky customers a rate well above the govt's benchmark rates. But Beijing didn't abolish the minimum rate that banks could offer.
    China expert Lardy says the Chinese central bank never explained the rationale for the lower limit. But he suspects that one reason may have been to keep foreign competitors at bay. The upshot is that international lenders with expertise in sizing up the best borrowers won't be able to offer them much lower rates and beat domestic banks on price.
    "I think it will take a long time for foreign banks to increase market share," Lardy said.

    Chinese premier hits Wall St amid trade spats
    12.8.03   Evelyn Leopold Reuters

    NYC   China premier Wen Jiabao prepared to hit Wall St on Monday, cozying up to America Inc. in a bid to highlight a desire for greater cooperation between the world's fastest growing economy and its biggest.
    But Wen, in charge of China's wrenching economic reforms, will come under U.S. pressure to pare its massive trade surplus with the United States and ease its grip on the tightly held yuan currency.

    The visit takes place against a backdrop of tension over Taiwan, which Beijing fears is creeping toward independence under President Chen Shui-bian, who has said he plans to use a new referendum law at polls in March.
    Arriving on Sunday, Wen went to the UN where he issued a warning that Taiwan should not use democratic procedures, like the upcoming referendum, as a cover for separatism. Wen intends to visit the site where the World Trade Center was 9.11.01. China swiftly backed the U.S.-led war on terror and the Sino-U.S. relationship has improved steadily since.

    Other New York events were strictly business, reflection of concern over trade tensions with Washington which slapped sanctions on Chinese textiles & TVs Nov. 2003. State media sought to play down the trade tensions. "It is important for China-U.S. economic relations to remain on track despite recent trade spats between the 2 countries," the China Daily said on Monday.
    Wen was scheduled to ring the opening bell at NYSE then meet NYC govt & business leaders to deliver a speech to the American Bankers Assn. He also was expected to visit offices of General Electric in New York and sign deals later in Washington to buy 5 737 aircraft from Boeing Co. .Both U.S. firms were winners in symbolic Chinese buying sprees in November aimed at addressing U.S. complaints about the trade surplus, which Washington estimates will top $120 billion this year.

    U.S. officials argue Beijing keeps its currency artificially weak, giving its exports unfair advantage at expense of U.S. jobs. Treasury Sec. John Snow said on Friday the administration would press China to make the yuan more flexible. U.S. also would push China to live up to its WTO commitments to open its markets, he said.
    Analysts said Wen would likely stand firm against any swift move on the yuan, pegged at around 8.28 to the dollar since the mid-1990s. China argues its debt-laden banking system is unready to handle a currency regime change, and point out the country has its own problems with tens of millions of jobless.

    China also points to a mass of WTO-related laws it has already approved and says it is trying to fight piracy. Wen would be firm against U.S. moves last month to cap some imports of Chinese textiles, like bras and robes, and impose tariffs on TVs, analysts said. Taiwan, however, remains at the top of China's agenda.
    Wen was expected to seek reassurances from President Bush on Tuesday that Washington would "oppose" the island seeking independence, a subtle but significant shift in the U.S. line it "does not support" such moves. He was due in Washington Monday night for a dinner hosted by Sec. State Powell.

    how to buy plywood
      in a green manner
    China denies plundering world's rain forests   8.15.06   Reuters

    Beijing   China on Tuesday denied accusations of plundering the world's rain forests to meet booming demand for wood. Environment groups say China is at the heart of a global trade for lumber it sells to markets in the United States and Europe and that much of its plywood exports comes from illegal logging.

    Domestic demand from a fast-growing economy only adds to the problem, they say. "As for the question that China's large demand for timber assists illegal logging and smuggling from Asia, this statement has no basis," State Forestry Administration spokesman Cao Qingyao told a news conference.
    "The Chinese govt consistently upholds and puts in practice collective international responsibility, opposing and cracking down on illegal logging in illegal wood imports," Cao said. "We have very strict import controls."

    British-based NGO Global Witness said last year China imported timber from Myanmar alone worth an estimated $350 million (185 million pounds), almost all of it illegal. But the group conducted an investigation in May that showed Chinese checkpoints had been sealed to log transports from the former Burma, where years of military rule and ethnic unrest in remote mountain areas have lead to widescale forest clearances.
    A report issued in March by the Center for International Forestry Research and other groups found about 70 percent of all timber imported into China, now the largest consumer of wood from tropical developing countries, was converted into furniture, plywood and other processed products for export.

    China accounted for over half the log exports from Papua New Guinea, Myanmar and Indonesia, the report said. Cao said that over the next few years China's timber trade would be stable, with exports not exceeding imports, though that for certain products, like paper, there was still a lack of domestically sourced wood.
    "But at the same time, we export a large amount of wood, and in 2005 our exports exceeded imports," he said.

    Chinese drop takeover bid for Unocal   CNOOC cites political opposition in the U.S. in abandoning its offer for the oil company. The move clears the way for Chevron's purchase.
    8.3.05   Don Lee, Elizabeth Douglass L.A. Times

    Shanghai   The Chinese oil company battling to buy Unocal Corp. abandoned its effort Tuesday because of what it termed "regrettable and unjustified" U.S. political opposition, ending a showdown that spotlighted American concerns about energy security. The decision by CNOOC Ltd., largely owned by Chinese govt, to drop its $18.5-billion bid for Unocal clears the way for Chevron Corp. to acquire the El Segundo-based company in a deal currently valued at $17.5 billion.
    It also cuts short the biggest takeover attempt made by a Chinese company for a foreign firm. CNOOC's play for the U.S.' eighth-largest energy co. represented China's aggressive global push to secure energy resources.

    But the furor that it generated in Congress underscored the increasing economic and political competitiveness between U.S. and a rapidly rising China. Even though analysts said CNOOC's failed bid could give other acquisition-minded Chinese companies pause as they look to build their brands and compete on a global scale, it's not likely to end their interest in buying U.S. companies.
    "This is a wake-up call that China is sitting on a big pile of dollars, and they've got to spend it somewhere," said Richard C. Bush, a former U.S. intelligence official now at the Brookings Institution. "It seems clear they want some of them to occur here."

    CNOOC's withdrawal from the contest appeared increasingly likely in recent days as American political objections mounted and Unocal's board of directors swung its support behind Chevron's competing bid, which will be voted on by Unocal shareholders a week from today.
    CNOOC's management in Beijing, led by the Western-educated oilman Fu Chengyu, considered sweetening its bid for Unocal but concluded that it wasn't worth it, given the obstacles imposed by Washington. An energy bill passed by Congress last week would have delayed a CNOOC acquisition of Unocal by at least 120 days. An influential shareholder advisory firm estimated that such delays would reduce the value of CNOOC's offer by at least 5%.

    The hostile political climate created "a level of uncertainty that presents an unacceptable risk to our ability to secure this transaction," CNOOC said in a statement. Fu wasn't available for comment, but a CNOOC spokesman left no doubt about the company's bitterness.
    "Are we pissed off? Yes," said Tim Payne, a CNOOC spokesman in Hong Kong.
    Some shareholders and analysts also were disappointed. They were hoping for a bidding war, and a higher price.
    "It's not the best outcome for Unocal shareholders," said Fadel Gheit, energy analyst at Oppenheimer & Co., who owns Unocal and Chevron shares. "I think it's more that CNOOC lost Unocal than that Chevron won Unocal."

    There was no immediate reaction from the Chinese govt. A month ago, China's Foreign Ministry excoriated American politicians for interfering with what it called a routine business deal. Some members of Congress, however, raised the specter of CNOOC's bid as a security threat to the United States, although most experts said there was little evidence to support that claim.
    Other U.S. politicians complained that CNOOC had unfairly used its links with the communist govt in Beijing to obtain cheap financing for the deal. The state-controlled China National Offshore Oil Corp. owns 71% of CNOOC, with the rest owned through publicly traded stock. CNOOC, while insisting that it was run independently, acknowledged that it had lined up loans from govt controlled entities at very favorable terms.

    Rep. Richard W. Pombo (R-Tracy), who pushed the energy bill amendment mandating additional review of any CNOOC-Unocal deal, said the Chinese company's decision to pull out was "good news for the free markets, the American consumer and U.S. national security."
    But American businesses have expressed fears that the political reaction in Washington over the CNOOC affair could trigger a backlash in China that would prove costly for U.S. companies. China, with its low-cost manufacturing base and booming consumer market, has been an irresistible, and potentially profitable, market for corporations ranging from Wal-Mart Stores Inc. to Microsoft Corp.

    Analysts say the Chinese govt could retaliate by cutting purchases of U.S. goods or delaying approvals for American corporate initiatives in China. That could worsen bilateral relations that are already strained by trade disputes over textiles and recent statements by U.S. defense officials that China's military buildup poses a threat to the region.
    "To many corners in Beijing, [the CNOOC outcome] is further proof that the U.S. govt and certain people in the administration are trying to block China's rise," said Wenran Jiang, a political scientist specializing in Chinese affairs at the University of Alberta.
    Jiang and other analysts said many Chinese might accuse U.S. of applying a double standard in its treatment of CNOOC's bid, subjecting it to special scrutiny at a time when the U.S. is calling on China to operate under rules of free trade and a market-based economy.

    He said CNOOC's effort to buy Unocal fit well with Beijing's strategy of expanding its search for energy resources beyond politically sensitive areas such as Sudan and Iran. With most of Unocal's assets in Asia and its oil production comprising of just 1% of U.S. consumption, Chinese officials didn't expect the CNOOC bid to ignite such political uproar. "It's a bitter lesson," Jiang said.
    Nonetheless, China isn't expected to stop pursuing its global hunt for energy resources. In addition, said Donald Straszheim, a Los Angeles economist who focuses on China's business and economy, the nation's manufacturers are poised to "expand their reach by buying overseas brands" to acquire technology, global recognition and management skills, as Beijing-based Lenovo Group Ltd. did with its purchase of IBM Corp.'s personal computer business this spring.

    More recently, Chinese appliance maker Haier Group joined with two U.S. firms in a bid for Maytag Corp., but dropped out last month in the face of a higher bid from Whirlpool Corp. Many Chinese companies are cash-rich and the recent appreciation of China's currency, an action taken by Beijing at the behest of American politicians, will give the Chinese even more buying power abroad. That could engender further ill will in U.S., although not the kind of opposition triggered by CNOOC's foray into an industry that many consider vital to America's national interest.
    When CNOOC made its unsolicited bid for Unocal on 6.22.05, company executives expressed confidence that their superior bid would give them an edge. Over the last two decades, CNOOC had built a reputation as a well-run company with an unusually strong Western orientation. The company's board conducted its meetings in English, and its 54-year-old chairman, Fu, who earned a master's degree in petroleum engineering from USC, was known for his American management style.

    Internally, CNOOC dubbed its bid for Unocal as "Treasure Hunting Ship," an apparent reference to the 15th century Ming Dynasty voyager Zheng He, who was known for leading an armada to the "western ocean." Although Unocal is small compared with major multinational oil companies, its allure is its substantial holdings of natural gas and oil in Asia, which is fast becoming one of the strongest energy markets in the world. In addition, Unocal is a world leader in deep-water drilling, and has several such projects underway in the Gulf of Mexico.
    To improve its chances, CNOOC followed the protocol of a savvy American company, lining up 2 top Wall St investment banks, as well as a team of lawyers, public relations specialists and consultants in Asia & U.S. to advise it on the deal and strategy.

    CNOOC sought to deflect political opposition by voluntarily seeking a quick U.S. govt review of the deal, offering to divest certain Unocal assets and pledging to retain Unocal's workforce and management. An advisor to CNOOC said Tuesday that more Unocal employees faced the loss of jobs in a merger with Chevron than CNOOC.
    Neither Unocal nor Chevron would quantify possible cuts, and had no official comment on CNOOC's decision. If a Unocal-Chevron deal is completed this month, as is now expected, layoffs would most likely come in El Segundo, Unocal's headquarters, where 128 people work.

    Analysts said that unlike CNOOC, Chevron was a known quantity and it would be easier to blend the cultures and operations of two California firms than those involving companies operating across the ocean. CNOOC's advisors said it was clear that they and management at the Chinese firm underestimated the degree of political resistance in Washington, a feeling intensified by the large U.S. trade deficit with China and complaints about Chinese competition from American small businesses and manufacturers.

      Chronology   Key dates in the bidding for Unocal Corp.:
      Jan. 6: Unocal Corp.'s stock has its biggest one-day gain in six years on reports that Chinese oil firm CNOOC Ltd. may make a bid for the company.

      March 3: Unocal's stock rises 12% on speculation it may be bought by Chevron Corp.

      April 4: Chevron offers to buy Unocal in a stock and cash deal valued at $16.4 billion, or about $62 a share.

      June 7: CNOOC says it also may bid for Unocal.

      June 10: The Federal Trade Commission approves proposed Chevron-Unocal deal after the companies agree to surrender Unocal's patents for making cleaner-burning gasoline.

      June 22: CNOOC unveils $18.5-billion, or $67 a share, all-cash offer for Unocal.

      June 27: Two key members of the U.S. House of Representatives urge President Bush to block CNOOC's bid.

      June 28: Chinese govt says political considerations shouldn't interfere with bidding for Unocal. Unocal and CNOOC begin 3 days of meetings.

      June 29: The Securities and Exchange Commission approves Chevron's offer, clearing the way for a vote by Unocal shareholders in early August.

      June 30: The House passes two measures aimed at blocking CNOOC's bid for Unocal.

      July 13: Chairman of House Armed Services Committee says "it would be a mistake" to allow CNOOC's bid to succeed.

      July 14: Unocal Chief Executive Charles Williamson tells CNOOC CEO Fu Chengyu that the Unocal board is prepared to drop its support of Chevron's offer if CNOOC raises its bid.

      July 15: Williamson informs Chevron CEO David J. O'Reilly that the Unocal board may rescind its approval of Chevron's offer.

      July 16: Fu tells Williamson that CNOOC will not increase its original offer.

      July 19: Chevron raises its bid to $63 a share, or $17.2 billion. Unocal directors recommend that shareholders approve the new offer at the Aug. 10 meeting.

      July 20: CNOOC says publicly it has no plans to increase its offer.

      Friday: Congress OKs energy bill, which mandates that a CNOOC acquisition of Unocal undergo federal scrutiny that would delay a deal by at least 120 days.

      Monday: Influential shareholder advisory firm backs Chevron's bid.

      Tuesday: CNOOC withdraws its offer for Unocal, citing political opposition.

    China's Execution, Inc.
    5.2.01   Erik Baard & Rebecca Cooney Village Voice

    3 years ago, Dr. Thomas Diflo's moral nightmare walked into his examination room: a patient freshly implanted with a kidney bought from China's death row, where prisoners are killed, sometimes for minor offenses, and their organs harvested. Since then, Dr. Diflo, director of the renal transplant program at NY Univ. Medical Ctr, has seen half a dozen such people, typically young Chinese American women. The surgeon says his patients weren't distressed about snatching organs from the condemned, but he was overwhelmed by the implications. Unable to shoulder the burden alone, on 1.11.01, Diflo took his "horror at a real ethical quagmire" to the medical center's Ethics Committee. Diflo is the first American doctor to talk publicly about this experience, and he did so only after being drawn out by the Voice. The gruesome practice has been documented among ethnic Chinese communities throughout Asia, but so far every attempt to prove that people were leaving U.S. soil to buy organs from China's massive death row has failed.

    "To tell you the truth, the original rationale for bringing this situation to the Ethics Committee was my own discomfort in taking care of these patients. I was outraged at the way in which they obtained their organs, and I had a great deal of difficulty separating that fact from the care of the patient," Diflo told the Voice. "Several patients were very up-front and candid about it, that they bought an organ taken from an executed convict for about $10,000," Diflo recalls. "Most of the patients are ecstatic to be off of dialysis, and none has seemed particularly perturbed regarding the source of the organs." There's no telling how many kidney buyers returning to the U.S. have gone for follow-up care at a less elite institution or stayed within secretive medical channels recommended by their brokers. Diflo gets his patients on referral from recognized hospitals. "Patients sort of arrive on their doorstep and they don't know what to do. Not everybody who's had a transplant is cared for by a transplant specialist. I tend to see the more complicated ones," Diflo says.

    … outright sale of organs is abhorrent to nearly all surgeons in the field. Selling organs is a felony under a 1984 federal law that was spearheaded by then senator Al Gore, and is punishable by up to five years in prison and a fine of up to $50,000. Live or executed prisoners in the U.S. are forbidden to donate an organ, even for free, except to family members under special circumstances. In China, human rights groups say, citizens have been executed for nonviolent offenses like taking bribes, credit card theft, small-scale tax evasion, and stealing truckloads of vegetables.

    Political dissidents have also been sentenced to death. Chinese embassy officials did not respond to requests for comment, but in the past the govt has denied promoting the for-profit organ trade. Diflo says he and his colleagues wrestled with the issue in a debate that was "quite lively and revealing, but the bottom line was that we take care of patients who come to us, regardless of their situation—moral, ethical, financial, or social. Although I might find what they had done reprehensible, I was still nonetheless obligated to care for them in the best way that I knew how, and that is what I do."
    But Diflo refuses to let it end at that. "Because it is not really appropriate for me to take my outrage out on the patients who come to me, I began to think that I would be better off addressing the root problem, the pilfering of organs from prisoners in China. That is what pushed me to pursue this further," he says. And so he's going public.America-based human rights activists have sought this break for years. …

    China's bitter harvest
    Theft & sale of human body parts
    2.5.01   Bay Fang U.S. News & World Rpt

    Foshan, China   Peng Xiaohong's 7-year-old son, Zhang Yao, died last Nov. from gas poisoning while taking a bath. A devastated Peng kissed his eyes one last time before sending his body to the morgue. She thought that was the end.
    But at the funeral a few days later, she noticed something strange. There were fresh cuts at the corner of his left eye. When the eyelid was opened, out came a wad of bloody cotton balls and half an eye. Gone was the most valuable part, the cornea.

    At first, doctors at the district hospital in this southern city said the damage was caused by accidentally dropping the body. Then, they blamed it on rodents. Their explanations dodged the obvious: Someone stole the cornea.
    "It's a double tragedy," says Peng, "first that my son died and then that they had to mutilate his eye." The larger tragedy lies in the fact that China lacks effective laws governing organ donation & transplantation. As a result, doctors take organs & tissue from bodies without permission, peasants hawk their own kidneys for quick cash, and Chinese authorities, defying the outcry from intl human rights advocates, sell organs taken from executed prisoners.

      [ So much for the liberating democratic influence of a genuinely free market, something regarding which the Chinese NEVER needed a lesson. ]

    "Without a law, there is no institutionalized, effective system," says Xu Hong- dao, president of the China Organ Transplantation Development Fdtn, who is seeking legislation on organ donation &and transplantation. Efforts to establish an organ-donor program conflict with the traditional belief of keeping one's body whole even in death. Confucius dictates that it is a gift from one's parents and that to damage it is to dishonor them. Living family members are considered the only acceptable donors. But that's hardly sufficient. For instance, some 2 million Chinese go blind from corneal diseases each year; there is reportedly a supply for only 3,000 operations.
    One result: a thriving Internet trade in organs. "I'm offering to sell one of my kidneys because I really have no other way to raise a sum of money," says An Feng, a 29-year-old from Xi'an who has posted several notices on the popular NetEase auction site. "I need to pay back a loan very urgently." One morbid posting reads, "I have organs, a heart, kidneys, corneas–for sale. I don't plan on living anymore, and I need some money for my parents' old age." But the biggest supply still comes from China's prisons. Organs of executed convicts are usually harvested as soon as the bullets are put in the back of their heads (or hearts, if the corneas are needed).

    Because China executes more prisoners than the rest of the world combined, it can supply foreigners willing to pay to avoid the long waiting lists for donated organs in their home countries. "Every hospital we visited, the doctors were totally open about the organs coming from executed prisoners," says a Taiwanese man whose ailing father paid $35,000 and the standard $2,000 bribe for the doctor to obtain a liver transplant after a 2 day wait. "We were lucky that there happened to be an execution of a convict . . . whose blood type matched my dad's," he says. " They said the longest wait would only have been about a month."

    The govt so far has failed to curb abuses. Though some regulations exist, they are poorly enforced and not backed up by laws. Shanghai, which enacted China's first organ donation regulations, effective March 1, has expressed concern that organ smugglers will find a loophole to legalize their deals. The Ministry of Health is currently reviewing a draft national Organ Transplantation Law, which if enacted should encourage organ donations and end some of the more grisly practices. And attitudes are changing. "We did a survey of young people in Beijing, Shanghai, and Wuhan and found that 70% were willing to donate their organs," says Xu. "All we need is to formalize an institution to accept them." For now, with no clear law, someone like Peng Xiaohong cannot expect redress for what happened to her son. She has been trying to sue the hospital but only to get someone to admit responsibility. "If they had only asked me whether I would donate my son's corneas for someone who needed them, I would have gladly said yes," says Peng, gazing sadly at a picture of her once bright-eyed son. "But the problem is, they had to do everything so underhandedly." For her, as with many others, a system of organ donation will have come too late.

    An Execution for a Kidney
    China supplies convicts' organs to Malaysians
    6.15.00   Thos Fuller Intl HeraldTribune

    Malacca, Malaysia   The night before their execution, 18 convicts were shown on a Chinese television pgm, their crimes announced to the public. Wilson Yeo saw the broadcast from his hospital bed in China and knew that one of the men scheduled to die would provide him with the kidney he so badly needed. Mr. Yeo, 40, a Malaysian who manages the local branch of a lottery company here, says he never learned the name of the prisoner whose kidney is now implanted on his right side. He knows only what the surgeon told him: The executed man was 19 years old and sentenced to die for drug trafficking. …

    HKpaper re transplants of executed prisoners' livers
    1.9.00   S.China Morning Post

    Recent reports from a Hong Kong newspaper prove again that the gruesome practice of harvesting organs from executed prisoners continues in Mainland China. Patients from Hong Kong obtained liver transplants at Sun Yatsen Hospital in June of 1999. … Beginning with a 1994 report on organ harvesting by HRtsWatch, reports of the lucrative organ trade in China have centered around kidney transplantation. …

    Pressuring China to end abhorrent organ harvesting
    10.29.97   editorial Abilene Reporter-News

    Jiang Zemin's visit to America will overlap the holiday of Halloween, which should make the Chinese president feel at home. For when it comes to outright ghoulishness, nothing with fake fangs in a $30 costume can compare to the organ-selling business presided over by Jiang's govt. Recently ABC's "PrimeTime" confirmed on videotape what human-rights groups have long reported: Petty criminals, whose misdeeds would draw a short jail stay elsewhere, are being executed to supply their kidneys to rich patients in Asia, Europe and the United States. Many of these legalized murders occur at military hospitals, and according to dissidents like Harry Wu, the Chinese army has made millions in the organ trade. So accepted is the practice in China that the macabre debate there is not over the ethics of the practice, but whether poison or a bullet produces the least damage to marketable innards. (The latter is still widely favored. Last year, reports Amnesty Intl, Chinese firing squads killed 4,367 convicts, more legal executions than in the entire rest of the world.)

    Utilitarian-minded Chinese authorities no doubt imagine they are serving dual goals, "social hygiene" & national defense. Zero tolerance is the watchword. The London Sunday Times reports 8 people were executed in Fujian province for stealing pigs; 3 others who burglarized a car were shot within a week. This fast-track bloodletting facilitates the matching of kidney types. Instead of "3 strikes & you're out," in China the penological standard is "one strike & you're dead." …

    Organ harvesting charges dismissed
    3.16.99   Deborah Pines NY Law Journal

    Celebrated case against 2 Chinese citizens accused of trafficking in body parts of executed Chinese prisoners was dismissed yesterday by a judge highly critical of the govt's reliance on an unsavory informant and dubious of the defense's ability to proceed without cross-examining the man, who recently fled the country. Southern Dist. Judge Deborah A. Batts dismissed all charges against Xing Qui Fu, 36, who runs a laundry in Queens, and Chen Yong Wang, 42, a former Chinese prosecutor, in a 155-page ruling accusing the govt of "willful ignorance" about their witness, Paul Risenhoover, who "made" the case for prosecutors along with human rights activist Harry Wu.

    Her ruling, in U.S. v. Wang, 98 Cr. 199, also faulted govt delays in turning over exculpatory material and found the defense could not develop claims of innocence and entrapment without questioning Mr. Risenhoover, an American sympathetic to the Chinese dissident movement, about his motives and possible unrelated criminal activity.
    Allowing a trial to proceed in the absence of Risenhoover, who played a central role in the govt probe before fleeing to Taiwan, "would violate due process & the 6th Amendment," Judge Batts wrote.

    In response, Herbert Hadad, a spokesman for Southern Dist. U.S. Atty Mary Jo White, issued a written statement saying the govt "believes that its investigation & prosecution of this case was responsible & well-founded." The statement said the govt disagrees with the judge's analysis and conclusion and is "reviewing her opinion and assessing our options." …

    Since their arrests, the defendants maintained they were innocent victims. They claimed they were set up by activists looking to prove China, which executes some 4,000 prisoners a year, was engaged in the illegal sales of prisoner body parts, an activity known as "organ harvesting." Judge Batts' ruling does not resolve this allegation but suggests it is possible. She cited questions about Mr. Risenhoover steering the taped conversations and translating incorrectly portions of the defendants' statements to make them more incriminating.
    She also cited multiple unrelated accusations against Mr. Risenhoover, incl claims he sold over the Internet "assistance" to students interested in applying to a non-existent medical school, failed to pay phone bills, and was accused of brokering another organ transaction in Oklahoma. Information about Mr. Risenhoover suggests "a fraudulent opportunist whose credibility at any stage of his involvement with any govt entity ... should have been, and must now be, seriously questioned," Judge Batts wrote.

    She dismissed the charges, however, because of Mr. Risenhoover's disappearance and the govt's failure to timely respond to defense requests about him. …

    Nuclear baby tests confirmed in HK
    6.10.01  
    Reuters

    Hong Kong   A scientist who led Cold War experiments on the effects of nuclear fallout has confirmed that corpses of Hong Kong babies were used, the South China Morning Post reported Sunday. Lawrence Culpa, a project leader of "Project Sunshine," was quoted as saying that British scientists carried out tests on the corpses of babies, children and adults in Hong Kong, then a British colony. U.S. scientists turned to Taiwan in their search for corpses, Culpa was quoted as saying, though the story did not specify whether any bodies were obtained there. British newspapers reported last week that around 6,000 stillborn babies and dead infants had been sent to U.S. & Britain from hospitals in Australia, Canada, Hong Kong and S.America over a 15-year period without the permission of parents.

    Project Sunshine began in 1955 when University of Chicago doctor Willard Libby, who was later awarded a Nobel prize for his research into carbon dating, appealed for bodies, preferably stillborn or newly-born babies, to test the impact of atomic fallout, the reports said Culpa later led the project, the Post reported.
    Hong Kong was a British colony for more than 150 years before being handed back to mainland China in mid-1997.

    Culpa was quoted as saying that Project Sunshine had been organized on a "doctor to doctor" basis and that it had drawn the participation of British scientists. It was not a govt project, he said. Hong Kong health officials said last week they would not investigate the reports unless specific evidence came to light that local babies had been used in the tests. Health officials were not available for further comment on Sunday. Australian officials Thursday confirmed that cremated bones from some Australian babies, children and adults had been shipped to U.S. and Britain to test for fallout from nuclear tests.


    Chinese doctor tells of organ removals after executions ¹
    6.27.01   Steven Mufson & Lena Sun Wash.Post pA1

    A Chinese man seeking political asylum in U.S. says that as a physician in China, he took part in removing corneas & harvesting skin from more than 100 executed prisoners, including one who had not yet died. Wang Guoqi, a burn specialist, said in a written statement that he also saw other doctors remove vital organs from executed prisoners and that his hospital, the Tianjin Paramilitary Police General Brigade Hospital, sold those organs for enormous profits. China executes more prisoners a year than any other nation, and some patients from U.S. and other Western countries travel there for organ transplants. Although China's practice of harvesting body parts after executions has been widely alleged, Wang's asylum petition offers a rare, eyewitness account from someone who was involved in a large number of cases. The House International Relations Committee has invited him to testify today.

    Wang, 38, came to U.S. on April 30 with a tourist group and stayed on rather than returning to China as scheduled May 14. He later made contact with Harry Wu, a Chinese American who spent 19 years in prison in China for political offenses. Wu heads the nonprofit organization Laogai Fndtn campaigning against the collecting of organs from Chinese prisoners. He said that he went to great lengths to verify Wang's identity and that both he & congressional staff members found the doctor's statements "highly credible." Wang's detailed statements, provided to The Washington Post by Wu's foundation, include the dates & places of executions, the names of doctors involved in organ removals and graphic descriptions of the medical procedures.
    According to his statement, the police hospital often was notified in advance of multiple executions, usually around the Chinese New Year or the govt's "strike hard" campaigns against crime. Wang said security officials were paid $37 a corpse to tip off the hospital about executions. Kidneys later were sold to wealthy or high-ranking people for more than $15,000 each, he said. Wang said he worked at execution grounds & crematoriums, wearing plain clothes rather than a police uniform. In many cases, he said, prisoners were shot, then immediately placed in ambulances, where their kidneys were extracted within two minutes of death. Afterward, he and other doctors went to crematoriums and, in a small room next to the cremation furnaces, carved skin from the arms, legs, chest and back of each corpse. The skin was stored in saline solution at low temperatures to use later on burn victims. He said he also extracted corneas and other tissue.

    "After all extractable tissues & organs were taken, what remained was an ugly heap of muscles, the blood vessels still bleeding, or all viscera exposed," he said. "Then the corpse was handed to the workers at the crematorium." Wang said his conscience has been "tortured" since an Oct. 1995 incident in Hebei Province, where he and other doctors arrived for the execution of a man sentenced to death for robbery & murder. Before the execution, Wang administered an injection of heparin to prevent blood clotting. A policeman told the prisoner it was a tranquilizer. An executioner then shot the prisoner, but the bullet did not immediately kill him, and he lay on the ground convulsing, Wang said. Nevertheless, the doctors were ordered to take him to the ambulance, where urologists extracted his kidneys and left the scene with the county staff & executioner. Wang & other burn surgeons remained inside the ambulance to harvest the skin. Then they threw the half-dead prisoner in a plastic bag on a flatbed truck and left, he said.

    "Whatever impact I have made in the lives of burn victims & transplant patients does not excuse the unethical & immoral manner of extracting organs," Wang wrote. He added that hospital authorities criticized him after he asked to be transferred to different work. The hospital demanded he write a self-criticism and promise not to expose its organ extraction and sale practices. In his application for political asylum, he said he fears persecution if he returns to China. Wang said he obtained a passport under a false name for about $550 and joined a tour group to U.S. The group visited Las Vegas, the Grand Canyon, Universal Studios and Disneyland. He said there were 15 people in the group and, to the best of his knowledge, none of them returned to China as scheduled.

    According to the Laogai Foundation, there were 1,769 executions and 3,167 kidney transplants in China in 1998. Wu noted that a 1984 Chinese regulation bars organ removal from condemned criminals unless they, or their families, volunteer their bodies for medical use. But he said that, in practice, prisoners and their families are not consulted and the process is rife with corruption. In its annual report on human rights this year, the State Dept said that "credible reports have alleged that organs from some executed prisoners were removed, sold, and transplanted." Chinese officials "have confirmed that executed prisoners are among the sources of organs for transplants but maintain that consent is required from prisoners or their relatives before organs are removed," the report added.

    2 charged in organ sales   ¹ ƒn incl at right
    Chinese foreign ministry says trade is against law
    2.24.98   Larry Neumeister AP

    NYC   2 men were arrested on charges they planned to sell body parts of prisoners executed in China, spotlighting longstanding complaints from human rights groups about trade in human organs. "Trafficking and profiteering in human organs is ghoulish, criminal conduct that imperils the most vulnerable," U.S. Attorney Mary Jo White said in a statement Monday. The men, Cheng Yong Wang, 41, and Xingqi Fu, 35, both of Flushing, Queens, were arrested Friday. The complaints alleged they tried to sell corneas, kidneys, livers, skin, pancreases and lungs for transplant. The Chinese govt has consistently denied the accusations of human rights activists. A foreign ministry spokesman today said such trade is against the law. In 1993, Amnesty Intl called on the Chinese govt to ban the harvesting of organs from executed prisoners but found that the practice continued.
    In a May 1995 Senate hearing, Amnesty Intl reported that the%age of transplanted kidneys in China estimated to come from executed prisoners was as high as 90%
    The arrests were "further confirmation of a reprehensible inhuman practice we knew was taking place," said Marc Thiessen, a spokesman for Sen. Jesse Helms, the Senate Foreign Relations Committee chairman. "This is a widepread systematic practice the Chinese govt engages in in their quest for hard currency. They sell human bodies," he said.

    Prosecutors said an informant showed them papers indicating Wang had been a prosecutor in the Hainan Province of China and participated in the execution of Chinese prisoners. Wang and Fu were caught when an FBI agent posed as a board member of a dialysis center in a meeting Friday, the complaint said. Wang allegedly discussed with the agent the methods by which Chinese prisoners are executed, and described how he & Fu would sell the dialysis center two corneas from executed prisoners for $5,000.
    According to the complaint, Fu asked the agent how old skin could be to be sold, and promised that lungs would come from nonsmokers. Wang signed a contract Feb. 13 with the informant, identified in court papers only as "Person A", saying he coordinated with Chinese govt agencies and hospitals to get organs for transplant, prosecutors said. The transplants would be performed in China for foreigners, the complaint said.

    On Tuesday, foreign ministry spokesman Zhu Bangzao said: "The Foreign Ministry spokesman and relevant departments of the People's Republic of China have repeatedly indicated clearly that such incidents would never happen in China. Should it occur, the Chinese law will punish the culprits." If convicted, Wang & Fu could face up to 5 years in prison & fines of $250,000. Fu appeared Monday before Magistrate Judge Ronald L. Ellis, who set bail at $100,000. Wang will appear in court Wednesday.
    In October, ABC's "PrimeTime Live" reported that organs taken from Chinese prisoners were being sold in the U.S. & elsewhere. The report alleged that the Chinese military was charging up to $30,000 for transplants of kidneys and other organs.

    Call for laws to protect doctors
    11.27.93   Alison Wiseman SCMP

    MORE protection has been urged for doctors against legal action from patients and their relatives in order to increase the number of life-saving operations and organ donations. …

    Follow transplant education with legislation
    11.21.93   SCMP

    Though the Govt rejected the Legislative Council's call for an "opt-out" organ donation scheme last Wednesday, the debate carried 4 messages: It shows there is still a large group among legislators and inside the Govt who are reluctant to accept that the current opt-in works as necessary …

    Pre-arranged permission
    11.18.93   Jonathan Braude SCMP

    The govt sensibly has rejected Legislative Council calls for an "opt-out" organ donation scheme, on the grounds that this would be seen as a totalitarian approach. A system that makes the organs of dead people automatically available for donation individuals deliberately opt out, assumes ...

    Secret world of human cloning
    11.17.93   SCMP

    There may be little to stop scientists from breeding designer babies to order; the age of designer humans is getting closer: carbon-copy people with high intelligence, identical people born at different times, designer babies for tomorrow's parents, or babies cannibalised for organ donation. …

    Finance chiefs target terrorist cash
    7.5.02   BBC

    Finance officials from 15 European and 10 Asian countries have sounded an upbeat note on the global economy and pledged to crack down on terrorist finance. Speaking mid-way through 2 day round of talks in Copenhagen, Danish finance minister Thor Pedersen said there was unanimous agreement on the need to choke off the flow of funds to terrorists. "Everyone wants to take part and share the responsibility," he said. "Nowhere should people who want to finance terrorism feel that they are secure."
    Indonesian finance minster Boedonio said he would take action to ensure that his country was removed from a blacklist of countries where anti-money laundering rules are lax. The blacklist, drawn up by a task force set up by the Organisation for Economic Cooperation & Development, comprises 15 countries incl Indonesia & Philippines.

    The ministers explored ways of improving banking transparency, and discussed means of tracking flows of money around the world. On the economy, the ministers said the global recovery would gather momentum in the second half of this year and continue in 2003. Growth in Asia was expected to outpace the rest of the world, although there was agreement that structural reform would be needed to sustain the continent's recovery. Europe, meanwhile, would benefit from lower inflation due to the rise of the euro against the dollar.
    The issue of structural reform is a vexed one, with most European govts favouring strict codes of conduct and global standards of corporate governance, while Asian countries are loath to introduce burdensome legislation which could slow their economic development.

    The ministers are being joined by representatives from the International Monetary Fund, the European Central Bank, the Asian Development Bank and the European Union. The Copenhagen talks coincide with a meeting of South East Asian trade & economics ministers in Malaysia. That meeting will discuss the creation of the world's largest free-trade area incl existing 10 members of Association of Southeast Asian Nations (ASEAN) and China. ASEAN & China aim to create the free-trade zone within 10 years.

    Rumsfeld makes light of alleged split with Powell
    7.30.01   Reuters

    Canberra   DefSec D.Rumsfeld said on Monday relations with China were evolving and made light of talk of a split between him & SecState C.Powell on how to approach the communist giant and other issues. The two men appeared side-by-side at a news conference in Australia, where they attended talks with their counterparts, facing questioning about their alleged difference in approach. Powell repeatedly characterized China as a "friend" during a visit to Beijing at the weekend and told reporters en route from China to Australia late Sunday that he had decided to stop talking about the communist giant as a "strategic competitor."

    Rumsfeld, who flew round the world to join Powell in Canberra, is seen as more hardline on China, and did not use the word "friend" in remarks about the country. But he said, "Colin Powell and I talk every day and meet several times a week and I don't know that there's a difference between us."
    He added, "My personal view is that the People's Republic of China's future is not yet written, that they are evolving. Our relationship with them is multi-faceted, it's political, it's economic, and clearly there are security implications." Asked if he had also decided to stop calling China a strategic competitor, a phrase first adopted during President Bush's election campaign, he said, "I don't recall using that phrase. I think you suggested that I had." "I haven't put any Rumsfeldian codewords on it," he said, in a lighthearted exchange with reporters.

    Later he was asked about U.S. plans for a missile defense, a system opposed by China which fears it would neutralize its nuclear arsenal, and treated with caution or suspicion by many other countries, including U.S. allies. Powell is often at pains to emphasize the U.S. desire for consultations with other countries as it proceeds with developing the system, in hope of winning them round to the U.S. position that the post-Cold War world needs a new strategic framework to fight new threats. Rumsfeld put it differently. Missile defense "really ought not to offend anyone other than a country that intends to use ballistic missiles to impose their will on their neighbors."

    We agree, except when Colin is learning
    During questioning, Rumsfeld asked ironically, "Are you trying to find some daylight between Colin and me?" A reporter asked, "Do you agree on everything?" He paused and, to loud laughs from officials and media, replied in a deeply ironic and humorous tone, "Except for those few cases where Colin's still learning." Earlier he was asked about another foreign policy matter on which there have been reports of a split between hard-liners and moderates within the Bush administration. Powell visited South Korea last week and said he was ready for talks with authoritarian N.Korea any time, anywhere. Asked if he was happy with this formulation, Rumsfeld said, slowly for emphasis, "With respect to N.Korea, I stand fully behind Secretary Powell's positions."

    Later Powell chipped in to say they discussed China regularly and the hope was that U.S. engagement "will move them in the right direction." He added, "But we can't see into the future so at the same time we have to remain strong. We have to not be naive. We have to keep following their actions very, very carefully." In an apparent bid to explain any difference in tone between himself and his colleague, Powell said, "Obviously I would come to it from a foreign policy perspective and the secretary from a defense perspective. But there is no real space between us as suggested."


    China's vast military cuts fat, adds muscle   Downsizing is consistent with a new emphasis on mobility, technology. But personnel policies have added to the ranks of the disgruntled.
    1.10.06   Mark Magnier L.A. Times

    Beijing   China, which has the largest military force in the world, is making important strides toward developing a lean, high-tech fighting machine, the People's Liberation Army said Monday. A two-year slim-down program has eliminated more than 200,000 jobs, or about 9% of the service, according to the PLA's official newspaper. By year end, that left a total of about 2.3 million members, a 45% reduction since 1987.
    "Our military is marching towards the goal of an appropriately sized, structurally balanced, lean, command-responsive fighting force," the official Liberation Army Daily said.

    The PLA has made no secret of its effort to craft a slimmer, more mobile force versed in the use of advanced weaponry as a source of national pride and a deterrent to Taiwanese independence. In an environment in which too many officers and poorly educated soldiers undercut efficiency, these staffing reductions are in line with analysts' expectations. But the downsizing has engendered less obvious social changes, the analysts say.
    In recent months, China has seen more protests by uniformed and retired military personnel over pay and pensions as the institution's ambitions outpace its resources. It has also faced grumbling from those who have been laid off. Many are less educated and feel let down by an organization that Mao Tse-tung once heralded as virtually indistinguishable from the Chinese people, as "integral to the society around it as fish to water."

    "This reaction is natural and normal," said Beijing-based govt-linked think tank China Arms Control and Disarmament Assn. analyst Liu Yongsheng. "Certainly many are not happy with the layoffs. But it's necessary, and the govt has considered all this. In Chinese, we say it's better to suffer short-term pain than long-term pain."
    At a time when Beijing is grappling with unrest around the nation, the specter of public protests by men and women in uniform has been particularly unsettling. In April, about 2,000 retired troops from around China staged a 3 day sit-in in the capital demanding higher pensions, reportedly the most extensive protest by veterans since 1949.

    In August, China's Central Military Commission warned PLA members never to take part in street protests or put the interests of the army above those of the Communist Party. Any activities that challenged single-party rule would be severely punished, it added.
    "It's a bad sign any time the military protests," said Jane's Defense Weekly Taiwan correspondent Wendell Minnick. "They really depend on these guys to put down other protests. You can't have these guys running around protesting with guns."

    Generals also have more subtle headaches. As they hire better-educated people to fill the ranks, a generation brought up in shopping malls and karaoke halls and used to having much more personal choice than their parents inevitably exerts more pressure for change.
    "This is challenging China's highly centralized military system," said Andrew Yang, secretary-general of the Chinese Council of Advanced Policy Studies in Taiwan. "The bottom-up pressure is rampant."

    China is also working overtime to lighten many of the army's ancillary responsibilities, including planting crops, teaching school and running shops. These activities grew out of a tradition dating back to the conflicts with the Japanese and the Nationalists, when fighters were supposed to be self-sufficient.

    Given today's emphasis on technology, professionalism, mobility and rapid response, analysts say these duties are not only distracting but demeaning for soldiers.
    "That's the old system; it doesn't work anymore," Minnick said. "Now you want to hire [civilians] to plant crops."

    China's official military budget in 2005 was about $30 billion, a 12.6% increase from the prior year. The U.S., in comparison, earmarked $420.7 billion for defense in the 2005 fiscal year. Some analysts, though, believe Beijing's actual budget is larger than reported. The U.S. has far fewer military personnel than China: about 1.39 million on active duty worldwide in September, according to the Pentagon.
    As part of its restructuring program, the Chinese army has sought to acquire more high-tech equipt and tried to strengthen the effectiveness of how decisions are made and carried out, known in military parlance as command and control.
    The infantry now makes up an all-time low proportion of the force, the army newspaper said, whereas the shares of the navy, air force and Second Artillery Corps, which oversees China's nuclear missiles, are rising.

    The govt has been lobbying the European Union to end its ban on weapon sales, so far without success. Washington has urged the EU not to lift the ban. This has left Russia as Beijing's primary supplier of military hardware.
    In August, China and Russia cooperated in the largest joint military exercise in decades, descending on China's Shandong peninsula with 10,000 troops and a range of sophisticated weapons. Russia is expected to hold a similar exercise on its territory this year. Analysts believe the exercises are partly meant to showcase Russian technology for Chinese buyers.

    A longer-range objective for China, analysts say, is to build a home-grown arms manufacturing capability. Although Moscow is eager to earn more hard currency from its aging militaryindustrial complex, analysts say it is wary of selling its best technology to a potential rival.


    extreme apologist: how's a careerist to make a buck sans intl relations?
    Lead hawk Rumsfeld sour on China ties
    6.11.01   UCLA prof. Tom Plate S.China Morn.Post

    The sourness of GWBush admin policy towards China is beginning to alarm many Americans. The Defence Dept's decision last week to back away from military contacts with China came across as provocative. And the tit-for-tat cancellation of navy ships' future port calls to Hong Kong, after Beijing itself spiked the latest one, added downward momentum to the relationship. Where will this stop? How vicious will the volleying get? The Bush hawks cannot control everything, of course. They won't be able to reverse last year's congressional approval of permanent normal trading relations for China. They could appear out of touch if they continue to oppose awarding the 2008 Olympics to Beijing. And are they seriously thinking of boycotting this autumn's Asia-Pacific Economic Co-operation summit in Shanghai? This important event raises consensus on both sides of the Pacific Rim.
    Chiller-in-chief is Def.Sec Rumsfeld, who sometimes comes across as nostalgic for the Cold War. The Pentagon cited security concerns in justifying the military contact pull-back, a retrograde move Mr Rumsfeld had been itching to effect for months. In truth, America learns at least as much from these exchanges as China does. Can anyone stop Mr Rumsfeld, a veteran Washington player in prior GOP administrations? Surely sudden GOP loss of the Senate is an unexpected obstacle for him. The new Democratic chairmen of key Senate committees are not enthused about paying for super-expensive, unproven National Missile Defence weaponry, which many Bush campaign contributors favour and from which they would benefit economically. But the probable result of an American arms build-up would be a corresponding Asian arms build-up, not just in China but in Japan, too. The logic of how this would make the region safer is hard to follow.

    The hawks could also be frustrated by clever Chinese diplomacy. The Chinese might regard Mr Rumsfeld's provocations as a tempting but dangerous detour from their solid, heretofore successful focus on economic development. Beijing needs to resist Mr Rumsfeld's neo-Cold War fandango and instead build on the development path that has lifted many Chinese out of poverty. To be sure, the impediments keeping the hawks from flying too high are far from foolproof. The Senate's Democratic committee chairmen have little to say about the Bush administration's public rhetoric. Nor can the Senate force the administration to consult sincerely on security issues of concern to E. Asia, from peace on the Korean peninsula to the mess in Indonesia. Plus, the Chinese care enough about what is said publicly not only to sulk when insulted but sometimes to do far more when taunted. Beijing could enhance Mr Rumsfeld's hand by overreacting.
    It's conceivable, of course, that Mr Rumsfeld's strategy will bring China to its knees, much like former president Ronald Reagan did in out-spending the Soviets militarily in the 1980s. But China possesses nothing like the former Soviet Union's nuclear capability and won't for decades. For these reasons, the new Rumsfeld policy is premature and high-risk. It could elicit from a frightened Beijing precisely the aggressive conduct the American hawks say the new policy is designed to deter. It could also divide all of Asia into warring camps, pro-China or pro-America. And it could result in new tensions over Taiwan. Only the president can rein in a determined defence secretary, as Mr Rumsfeld definitely is. Sadly, it's far from clear Mr Bush comprehends the full implications of what is going on.

    Capt Kelly a glimmer of hope for US policy in Asia
    5.14.01   UCLA prof. Tom Plate S.China Morn.Post

    Jas.Kelly, local boy who became a policy boffin and has now gone to Washington for a big job in the State Dept, is still seen as "one of us" by many of the Hawaii-based business & academic professionals who populated a big meeting about Asia last week at the Hawaiian Convention Ctr. They say he is not Dr Strangelove masquerading as a responsible U.S. defence secretary or some two-step Texan masquerading as a cosmopolitan world leader. But are they right about the Asst Sec.State for E.Asian & Pacific Affairs? After all, working in Washington for too long can do strange things to people. But if Mr Kelly's statements at his confirmation hearings in the Senate reflect the views of his superiors, then he is the best thing the GWBush administration has done for Asia to date.
    Mr Kelly served as NSC sr dir. for Asian affairs in Bush pere admin & understands East Asia as both headache & opportunity. "[It is] a place in which armed conflict could occur with little warning," he says. Caution about a region on edge despite economic & social development makes him respectful of the Korean Peninsula. He says: "Most Koreans, and I think most Americans, really do not have a better idea for approaching such a seriously deficient place as N.Korea than the one S.Korean President Kim Dae-jung is pursuing."

    U.S. asst sec., due to lead a delegation to China today, paints the Sino-US relationship not in black-versus-white terms but in "a considerable range of grey". China's tendencies towards globalism & intense nationalism are "contradictions . . . that make it difficult to predict the future course of our relationship". But China "is not the Soviet Union in the 1970s; we do not see factories putting out thousands of tanks and jet bombers or anything of that sort". Taiwan's democracy is a regional high point. He insists US policy on that island's relationship with Beijing hasn't really changed, despite his boss' recent back-and-forths. Of Japan, he says: "Solving the problems of a huge & rich economy like Japan is not an easy task."
    Mr Kelly talks of Indonesia with urgency. US policy needs to support the territorial integrity of this far-flung archipelago, or the world might wake up one morning to discover "a fragmented Indonesia that feeds fundamentalism, narrow regionalism and movements that, to put it most charitably, are very unstable and very dangerous". He skirts a direct clash with the well-intentioned but self-defeating congressional ban on US aid to the Indonesian armed forces by proffering the view that holding this sprawling nation together without the active co- operation of its military is hard to imagine. All the conceivable alternatives to Mr Kelly's approach to E. Asia are frightening. The worst would end up polarising the region into China-containment and China-alliance camps. Political opportunists in America such as Christopher Cox, the congressman who sought to exploit fears of Chinese spying in the U.S., would take centre stage. E.Asia would explode into costly & destabilising arms build- ups.
    That is why many delegates to the Asian Development Bank & Hawaii Business Forum conference (which went off so smoothly that even the anti-globalisation protesters had a day of uninterrupted protest) view the former navy captain as on their side. They believe this is the one man, in this administration, at least, who understands Asia. The truth is, right now, what else and who else do they have to believe in?

    U.S. strategy doesn't spell Asia troop cut-Admiral
    7.19.01   Reuters

    TOKYO   A possible shift in U.S. military strategy to focus on the capability to win one major conflict and defend against new threats would not spell a reduction in forces in Asia, Admiral Dennis Blair, commander-in- chief of the U.S. Pacific Command, said on Thursday. President Bush has vowed to modernize the cumbersome U.S. military, and Defense Secretary Donald Rumsfeld told Congress last month that the current U.S. strategy built on readiness to win two major wars at once was "not working" and he hoped to recommend changes.
    "The review of defense strategy that is now going on, I am participating in, and I see no real reduction...I see an increase in emphasis on Asia as a region of both potential opportunities and of potential threat," Blair told a media luncheon. "Within the type of strategies being considered, the overall structure of the U.S. forces is, I think, going to remain pretty well the same," he added. Blair was in Japan as part of a swing through the region and has been holding talks with Japanese officials.

    China question
    In terms of regional threats, Blair said China has been giving mixed signals about whether it is likely to become a force for instability in the region. "I think that if China develops and presses its claims and influence in a multilateral cooperative way, then it can be good for the region, and I think that China's ideas and influence, and certainly economic activities, will be welcome," he said. "If China chooses to turn its growing influence and power into aggressive bullying behavior, then I think it's quite a different story for the region," he said.
    Sino-U.S. relations have been strained by a number of issues since U.S. President George Bush took office in January, while Tokyo's ties with Beijing, always touchy, have also been frayed of late by renewed disputes over wartime history and trade.

    North Korea
    Blair, echoing the Bush administration line, said it was important to pursue talks with North Korea on conventional forces in tandem with talks on its missile and nuclear programs. North Korea has said it would not discuss its conventional forces with the United States before Washington withdraws its 37,000 troops from South Korea, a condition unacceptable to the United States. "The DMZ (demilitarized zone on the Korean peninsula) is the most intense and fortified area of the world. There are massive North Korean artillery within range of Seoul where 16 million South Koreans live, it's the capital. Warning times are very low and the potential for damage is very high," Blair said.
    "I think it is not unreasonable that, if we are to reach a durable peace agreement on the Korean peninsula, that we walk back these forces that are contributing to a hair trigger military situation there," he added. Blair said eventually there could be a quid pro quo in which U.S. and South Korea troops close to the DMZ also moved back. But he added: "I've got to tell you, we can talk about these theoretically, but we are so far away from them in a practical sense that we need to do some first baby steps which have already been proposed by South Korea that we have not seen response from the North Korean side on."

    Okinawa matters
    Blair's comments come amid revived local resentment of the U.S. military presence on Japan's southern island of Okinawa following a U.S. airman's alleged rape of a Japanese woman. Okinawa is host to about half the U.S. military presence in Japan and one-quarter of its presence in Asia as a whole. U.S. Air Force Staff Sergeant Timothy Woodland, 24, was charged on Thursday with raping a Japanese woman. Japanese perceptions that Washington dragged its feet before handing Woodland over to Japanese authorities last Friday revived calls to revise a pact on the status of U.S. military in Japan. Under the Status of Forces Agreement (SOFA), Washington need not hand over suspects until they are indicted, but has agreed to consider making exceptions for "heinous" crimes.
    Blair said the SOFA was working well in general. "I think we can work this out," he said. "This is a detail of the working of SOFA, not something that exposes a fundamental short-coming in the entire arrangement." He said the U.S. forces in Okinawa were vital to regional security and defended the behavior of most as "exemplary." "They are three% of the total population, they account for one% of the serious crime committed in Okinawa, and contribute six% of the economy of Okinawa. Our people operate well," he said.

      Chinese fighters killed in U.S. strikes
      At least 15 dead found fighting on side of Taliban
      10.22.01   Debka Intelligence Files WorldNetDaily.com
    Military sources in Dushanbe & Bishbek, capitals of Tajikistan & Kyrgizstan respectively, report at least 15 Chinese fighting men on the side of the Taliban, were killed in last week's U.S. bombing over Kahandar and in a separate incident on the ground, according to the DEBKA intelligence news service. This report was confirmed, reports DEBKA, by Pakistani sources in Peshawar, who discovered the Chinese presence alongside the Taliban from their own intelligence reports on the death of the commander of Arab Afghan troops in Jalalabad. That commander was Basir al Masri, a senior aide to Osama bin Laden and the Egyptian Islamic Jihad chief, Ayman al- Zawahiri. Al Masri appears to have been caught by an American bombardment, just as he was leaving Kahandar for Jalalabad after meeting Taliban leaders. Those leaders warned him as he left that U.S. Special Forces units were operating in the southern & western outskirts of the town. Because they thought the size of his bodyguard insufficient, they offered a detail of their own men to see him safely past the danger zone. Among that armed escort were five Chinese fighters. A Special Forces unit waylaid the group and detonated explosive charges, one of which hit Abu Basir's vehicle and a second the escort vehicles. Most of the escort was killed, including three of the Chinese guards. The next day, their bodies were carried into Kandahar. Another 10 Chinese fighters were killed in U.S. bombardments, DEBKA reports.

    The intelligence service reports its sources have no doubt that the Chinese combatants fought in a Taliban unit and were not part of Osama bin Laden's Al Qaeda or its associated Egyptian Jihad forces in Afghanistan. Neither organization admits non-Arab adherents, certainly not as guards for its senior officers. The Chinese-bin Laden relationship goes back some years. The British daily, Guardian, carried a report Saturday by John Hooper in Milan, claiming that 3 years ago, China paid bin Laden several million dollars for unexploded American cruise missiles left over from the U.S. attack on his bases. Hooper quotes an alleged senior Al Qaida agent in Europe, whose account is contained in the transcript of a secretly taped conversation between two bin Laden adherents. The Americans fired 75 missiles in the raid on bin Laden's bases in Afghanistan, carried out 8.20.98, in reprisal for the terrorist strikes against U.S. embassies in East Africa. 40 were found unexploded. The conversation taped took place in Milan between a Libyan called Ben Heni, who was arrested in Munich last week and accused by the Italian prosecution of being the liaison officer between two Al Qaida cells in Frankfurt & Milan and a leader of the Italian cells, Sami Ben Khemmais Essid. The Italian police had bugged the flat.

    According to the Guardian report, the 2 men confirmed bin Laden's close ties with China and described how the huge sums the Chinese paid for the unexploded U.S. missiles helped him finance his next three years of Al Qaida operations. In addition, the Wash.Post reported Sept. 13 that Beijing signed a memorandum of understanding with the Taliban for greater economic & technical cooperation, the last of a series of Chinese agreements with Afghanistan in the last 2 years. The Post characterized China's relationship with the Taliban as the closest of any non-Muslim country. The memorandum of understanding was, ironically, signed Sept. 11.


    Secret arms shipments from China to Cuba
    U.S. won't confirm allegations, which cite intelligence officials
    6.13.01   Nancy San Martin & Jane Bussey Miami Herald

    American Forces Information service
    Conflict Data Service
    Joint Forces Command domestic NATO
    Ctr on Intl Policy re IMET, JCET, etc.
    FAS re IMET
    Military.com subject portal
    US Army Military History Inst.   campaign medals

    Alpha Co. (3rd Batt.), 504th Parachute Infantry
    U.S.Army Kosovo motto Get Ugly Early

      privateers   cf. article in column above

      SEATO
    DPRK
      PLA General on Station of Troops in Macao
      11.21.99   People's Daily (Xinhua)
    Chinese People's Liberation Army (PLA) Major General Liu Yuejun, commander of the newly-established PLA garrison troops for the Macao Special Administrative Region ( SAR), said in Macao on November 20 that it will be necessary to station troops in Macao when the territory is returned to China on December 20. At the military unit's first press conference, he said "it is necessary to station a proper number of skilled and capable troops in the region to enforce the Sino-Portuguese Declaration and the Basic Law of the Macao SAR." This move is a symbol of China's resumption of sovereignty over Macao and a need for the Central Govt to effectively manage Macao's defense, he said, adding that it will also help maintain the region's social stability & economic development after it returns to the motherland. He noted that the troop's basic task is to take charge of the defensive affairs of the Macao SAR. In addition, according to the Garrison Law of the Macao SAR, ordered by the Central Military Commission, the troops can assist the Macao govt in maintaining social security and conducting disaster relief operations when the Macao SAR govt has appealed to and won approval from the central govt.

    He said that the troops stationed in Macao are mainly a contingent of the infantry army, with a small number of naval & air force officers. The troops will be equipped with all necessary weapons, mainly light weapons, to fulfill their mission, according to the general. Major General He Xianshu, political commissar of the Macao SAR garrison troops, these men and officers are selected based on PLA army units which have enjoyed historical success, including the army unit established in the early stage of the Red Army in the late 1920s, and troops participating in the War of Resistance against Japan between 1937-45, in the Liberation War against the Kuomintang, and in the War to Resist US Aggression and Assist Korea in the 1950s.

    Some members are from the Hong Kong SAR garrison troops, he added, and some participated in the flood- fighting campaign of 1998. He said that all the officers and soldiers are selected from active PLA military service rosters in accordance with China's conscription regulations. They are of good professional & moral quality, and have a passion for the motherland as well as for the Macao SAR, he said. In addition, every officer & soldier has a sound educational background, he said, adding that the officers are all college graduates or above and soldiers graduates of senior middle schools or higher. They are also in excellent physical condition, and the requirement for their height is over 1.7 meters for men and 1.65 meters for women. In order to successfully execute their duties in Macao, said the commissar, the troops are undergoing strict training & educational courses. They are studying the Macao SAR Basic Law, the Garrison Law, the Chinese govt's policies regarding Macao, and other laws & information concerning Macao.

    On how the troops will enter Macao, Major General Liu said it will be decided according to the actual situation. It will be convenient for the troops to enter quickly by land in the case of Macao, he added. According to the Basic Law, the Macao SAR govt will be responsible for the region's social security. However, if there is a riot that surpasses the SAR govt's capability to control, the Macao garrison troops will act strictly according to the Garrison Law which prescribes explicitly their duties & tasks, the general explained.

    A commission of outside experts has concluded that CIA reporting on China is biased and slanted toward a benign view of the emerging communist power. Numerous classified intelligence reports on China, including those on Chinese military and security issues, were reviewed by a 12-member commission and found to be flawed, according to U.S. govt officials and outside experts close to the panel. The commission concluded in a final report that China-related CIA intelligence reports and programs suffered from an "institutional predisposition" to play down or misinterpret national security problems posed by Beijing's communist regime. The commission also said CIA analysts had "overreached" in making many incorrect or misleading assessments about China's military and political activities. The conclusions of the commission are contained in a classified report. The commission was headed by retired Army Gen. John Tilelli, a former commander of U.S. forces in Korea. "There were numerous instances where [CIA analysts] just missed it," said one official who has read the report.

    The commission included several academics such as Harvard University professor Stephen Rosen, Princeton University professor Aaron Friedberg and University of Pennsylvania professor Arthur Waldron, as well as former Ambassador to China James Lilley. Peter Rodman, a current nominee for assistant defense secretary also took part, as did retired Army Col. Larry Wortzel, a former attache in China who is currently with the Heritage Foundation. The panel met 3 times with CIA Director George J. Tenet. CIA sources said Mr. Tenet tried unsuccessfully to persuade the commission to soften its findings, arguing that its findings would fuel critics of the agency. One of those critics is Sen. Richard C. Shelby, Alabama Republican and the vice chairman of the Senate Intelligence Committee, who took the lead in pushing for the CIA to form the "competitive analysis" commission. Mr. Shelby said in an interview that the CIA has "not viewed China in a realistic way." "They have tried to look the other way when China, in my opinion, may be moving toward a belligerent stand, if not attitude," Mr. Shelby said. "They are always looking the other way to put their spin on the U.S.-Chinese relationship, that everything is going well in the long run. It's just not very real. China is, has been and I believe will be a big competitor of ours, economically, militarily, politically, in every respect. They could be our biggest adversary. They are certainly not our strategic partner as Clinton and Gore would lead you to believe."

    A Pentagon report issued in December by the Office of Net Assessment, headed by long-time defense strategist Andrew Marshall, also criticized U.S. intelligence shortfalls on China.

    The report said the Pentagon could not predict the outcome of a conflict between China and Taiwan because of major "intelligence gaps." CIA China analysts and senior officials, including Mr. Tenet, declined to be interviewed. A CIA spokesman denied that its analysts were biased and said they "call them as they see them." One China specialist, who spoke on the condition of anonymity, said the most serious problem of the China analysts at the CIA is their failure to recognize the growing danger of a Sino-U.S. war. "War is a come-as-you-are party, and the Chinese are thinking about that very seriously," the specialist said. "The problem is you can't find those guys at CIA thinking about it."
    Official statements about the possibility of military conflict between Washington and Beijing have been dismissed by senior CIA analysts as hollow rhetoric, the specialist said. While most of the analyses reviewed by the panel are classified, some of the CIA China division's work is public. Based on published materials and interviews with officials who have seen its classified studies, the following problems were identified to The Washington Times:
    UK Foreign & commonwealth Office search
    NATO future 7.99 Not so long ago, the idea of Russia & China signing their first treaty in decades would have alarmed the west. But the agreement reached in Moscow on Monday by Vladimir Putin, the Russian president, and China's Jiang Zemin is a cause for satisfaction rather than concern. It is in the west's interest that these two nuclear powers with long common frontiers co-operate. During the cold war, their border rivalry almost escalated into a nuclear conflict. In the past decade, relations have improved but have been marked by considerable confusion as Moscow, in particular, has been preoccupied with domestic change. Monday's treaty is a coherent attempt to make a new beginning, although it will still take considerable effort to overcome years of mutual suspicion.
    Mr Putin and Mr Jiang have been brought together partly by their fears about the US. Both countries are frustrated that since the end of the cold war, the US has emerged as the world's only superpower. Their concerns have been magnified by signs that President George W. Bush's administration may pay even less attention to the concept of multi- polarity than did President Bill Clinton's team. The summiteers condemned Washington's plans for a missile shield and scrapping the Anti-Ballistic Missile pact. The two leaders warned of the risk of a new arms race. The west should treat these concerns seriously. While the US is not wrong to develop new defence technologies, it should avoid doing so in ways that provoke other nuclear powers to increase their arsenals.

    But even in attitudes towards the shield, the old rivalries between Moscow & Beijing persist. Mr Putin has previously offered to collaborate with Washington on a limited regional shield. China would oppose such a development because its nuclear arsenal is smaller than Washington's or Moscow's. It will also be hard for Russia & China to work together in another important arena: central Asia. Both would benefit from a reduction in the tensions born of poverty, crime and Islamic militancy. But it remains to be seen whether they can overcome centuries of rivalry in the region and collaborate to promote stability.
    Perhaps the most promising way of building on Monday's treaty is in economic relations, which are weak compared with China's ties with the U.S. The first fruits of the new deal are likely to be increased Russian arms sales to Beijing. But the leaders must now take concrete action to expand other ties, particularly in the energy field, where Russia has great potential and China has equally great needs.


    China grooms political unknown to lead next generation   10.30.01   Joe McDonald AP

    Beijing   He's getting star treatment in Europe. Russia's President Vladimir Putin took time to discuss terrorism. Queen Elizabeth is giving him a private audience at Buckingham Palace. The target of Europe's enthusiasm is China's vice president, Hu Jintao. He rarely travels abroad and is a political enigma even at home. But this former engineer excites interest because he is widely expected to be China's next leader.
    Hu has been groomed for a decade as successor to President Jiang Zemin, who is expected to start handing over power next year. At 59, Hu is young enough that he could rule China for 15 years. The 5 nation European tour is a carefully scripted diplomatic debut for Hu, and a sign that he is closer than ever to taking power. "He is being introduced to the world as the successor of Jiang Zemin," said Hong Kong City Univ Contemporary China Research Ctr dir. Joseph Cheng.

    Foreign govts get the message, and are treating Hu to high-level hospitality. The trip that began Saturday in Moscow is Hu's first to every country on his itinerary, Russia, Britain, France, Spain and Germany. In each, he is meeting national leaders. Russian officials say he and Putin spent 90 minutes talking about terrorism, Afghanistan and China-Russia relations.
    The man that Europeans are eager to size up is a political riddle. No outsiders know where he stands on economic & political reform, globalization and other challenges facing this nuclear-armed Asian giant. Hu joined the Communist Party in 1964 while still an engineering student. His official biography says he helped to build 2 hydroelectric dams on the Yellow River before going into politics. Hu rode a fast track to the top, becoming the youngest member of the party's elite Central Committee at age 39.

    But he has avoided being associated with any faction or policy. Now, he is under pressure not to outshine Jiang in a society where folk wisdom advises, "the bird that sticks its head out gets shot." "Hu has no clear political or ideological leanings. To show that is risky in Chinese political life. That's why he has survived so long," said Wu Guoguang, a former Chinese official who teaches at the Chinese Univ. of Hong Kong.
    It was late supreme leader Deng Xiaoping who endorsed Hu as Jiang's successor in the early '90s. Deng died in 1997, but his blessing still protects Hu, said Cheng. "Nobody wants to challenge Deng Xiaoping," he said. "But whether Hu becomes the leader of the next generation will depend on his performance."

    Jiang benefited from a similar surprise choice when Deng summoned him from Shanghai to lead the party after a 1989 power struggle. Jiang, 75, is expected to hand the party leadership to Hu next year, and the title of president in 2003. It isn't clear whether Jiang will give up his most important post as head of the commission that controls China's military. But

    Hu already is his deputy there. Hu's first major test came in 1999, when Jiang put him in charge of responding to the NATO bombing of China's embassy in Yugoslavia. Many Chinese got their first good look at Hu when he appeared on television during rioting by protesters outside the U.S. Embassy in Beijing. Hu declared the protests expressions of "patriotic anger." His second test came during the confrontation in April over an in flight collision of a U.S. Navy spy plane & a Chinese fighter jet. Hu is said to have made the day-to-day decisions while Jiang left on a Latin American tour.

    The biggest skeleton in Hu's political closet is his tenure as party secretary for Tibet in charge in 1989 when soldiers opened fire on Tibetans protesting Chinese rule. In London, Tibet activists blocked the front of Prime Minister Tony Blair's office, forcing Hu to use a side entrance. Protesters shouted that Blair was "harboring terrorists" at 10 Downing St. Hu also has to contend with the dismal record of past heirs apparent, whose wrecked careers litter China's recent history.
    Zhao Ziyang, once Deng's man, fell out of favor in 1989 and has lived under house arrest ever since. That record suggests why other candidates have yet to challenge Hu, said Cheng, the Hong Kong researcher. "They have plenty of time to edge him out if he makes mistakes later," he said.
    5.2.01 report S/2001/434   Inter-Agency Mission rpt 3.6-27.01
    quarterly Campaign to Reform UN   McKinney support
    UNations & Peoples Org
    UNAssociation of U.K
      U.N. official: World can't afford rich China
      7.16.03   CNN
    China's ambitious economic growth plans are environmentally unachievable because the world does not have enough resources to allow its 1.3 billion people to become Western-style consumers, a U.N. official said on Wednesday. U.N. Environment Pgm head Klaus Toepfer said China's aim of quadrupling its economy by 2020 can only occur if developed nations radically change their consumption habits to free up scarce resources for the world's poor.
    "Quadrupling the GDP of a country of 1.3 billion, can you imagine what are the consequences if you go in the same structure as was done in the so-called developed countries?" Toepfer told reporters during a visit to Sydney. He said that if China had the same density of private cars as, for example Germany, it would have to produce 650 million vehicles, a target that environmentalists say the world's supply of metal and oil would be unable to sustain.

    "It's not a question whether you are devoted to nature or whether this is an emotional topic. This is the rationality of economics," Toepfer said. China's gross domestic product, or GDP, grew 8% last year and the govt expects it to expand another 7% in 2003.
    Toepfer was in Australia to attend a conference of young environmentalists from Asia, discussing ways of changing consumer habits so that precious resources such as water are conserved. He said the world's approach to resource use was going through a significant phase with slow economic growth persuading govts in Europe & North America to aggressively try to stimulate consumption.

    While senior Chinese officials appeared to be fully aware of the constraints the environment placed on their economic plans, Toepfer said more work needed to be done in developed nations to make environmentally friendly products "trendy" & mainstream.

    China's influence spreads around world
    9.1.07   Wm Foreman, J. Paye-Layleh; A. Clendenning; D. Keane; I. James
    AP

    Karratha, Australia   For nearly three decades, Chinese peasants have left their villages for crowded dormitories and sweaty assembly lines, churning out goods for world markets. Now, China is turning the tables. Here in the Australian Outback, Shane Padley toils in the scorching heat, 2,000 miles from his home, to build an extension to a liquefied natural gas plant that feeds China's ravenous hunger for energy.
    At night, the 34-year-old carpenter sleeps in a tin dwelling known as a "donga," the size of a shipping container and divided into 4 rooms, each barely big enough for a bed. There are few other places for Padley to live in this boomtown. Duct-taped to the wall is a snapshot of the blonde girlfriend he left behind and worries he may lose. But, he says, "I can make nearly double what I'd be making back home in the Sydney area."

    The reason: China. For years, China's booming economy touched daily life in the West most visibly through the "made-in-China" label on everything from clothes to computers. But now, economic growth is giving rise to something more that can't be measured just by widgets and gadgets, a shift in China's balance of power with the rest of the world.
    China's reach now extends from the Australian desert through the Sahara to the Amazonian jungle. It's those regions supplying goods for China, not just the other way around. China has stepped up its political and diplomatic presence, most notably in Africa, where it is funneling billions of dollars in aid, increasingly shaping the lifestyle of people around the world, as the United States did before it, right down to the Mandarin-language courses being taught in schools from Argentina to Virginia.

    China, like the United States, is also learning that global power cuts both ways. The backlash over tainted toothpaste and toxic pet food has been severe, as has the criticism over China's support for regimes such Sudan's. To understand why China's influence is increasingly pushing past its borders, just do the math.
    When 1.3 billion people want something, the world feels it. When those people in ever increasing numbers are joining a swelling middle class eager for a richer lifestyle, the world feels it even more. If China's growth continues, it will be the world's second largest consumer market by 2015. The Chinese already eat 32 percent of the world's rice, build with 47 percent of its cement and smoke one out of every three cigarettes.

    China's desire for expensive hardwood to turn into top-quality floorboards for its luxury skyscrapers has penetrated deep into the Amazon jungle. In the isolated community of Novo Progresso, or New Progress in Portuguese, one of the biggest sawmills was started by the mayor with financing from Chinese investors.
    China accounts for 30 percent of the wood exported from logging operations in remote towns across Brazil's rain forest, where trucks carry the finished product hundreds of miles along muddy roads to river ports, said Luiz Carlos Tremonte, who heads an influential wood industry association. Many Chinese purchasers now travel to Brazil to clinch deals, and are almost always accompanied at business meetings by friends or relatives of Chinese descent who live there.

    "Ten years ago no one knew about China in Brazil; then the demand just exploded and they're buying a lot," Tremonte said. "This wood is great for floors, and they love it there."
    The Bovespa stock index in Brazil has climbed more than 300 percent since 2002, riding the China wave.
    China is buying coal mining equipment from Poland and drilling for oil and gas in Ethiopia and Nigeria. It has poured hundreds of millions of dollars into Zambia's copper industry. It is the world's biggest market for mobile phones, headed for 520 million handsets this year. The list goes on.

    Along with looking to other countries for goods for its people, China is also going far and wide in search of markets for its products. In war-torn Liberia, where electricity is hard to come by, Chinese-made Tiger generators keep the local economy humming. Costlier Western brands, favored by aid agencies and diplomats, are beyond the reach of small business owners such as Mohammed Kiawu, 30, who runs a phone stall in the capital, Monrovia.
    A used Tiger generator costs around $50, he said over the steady beat of his generator. "But even $250 is not enough to buy a used American or European generator. They are not meant for people like myself."
    The Chinese generators are more prone to break down, Kiawu said. When the starter cable snapped on one, he replaced it with twine. But by making items for ordinary people, he predicted, China "will take control of the heart of the common people of Africa soon."

    China is having to make up for decades of economic stagnation after the communist takeover in 1949. When Chinese leader Deng Xiaoping began dabbling in economic reforms in 1978, farmers were scraping by. By 2005, income had increased sixfold after adjusting for inflation to $400 a year for those in the countryside and $1,275 for urban Chinese, according to China's National Bureau of Statistics.
    "The Chinese don't want war; the Chinese just want to trade their way to power," said David Zweig, a professor at the Hong Kong University of Science and Technology. "In the past, if a state wanted to expand, it had to take territory. You don't need to grab colonies any more. You just need to have competitive goods to trade."

    If China stays on the same economic track, it would become the world's largest economy in 2027, surpassing the United States, according to projections by Goldman, Sachs & Co., a Wall Street investment bank. And unlike Japan, which rose in the 1980s only to fade again, China still has a huge pool of workers to tap and an emerging middle class that is just starting to reach critical mass.
    Many development economists believe China still has 20 years of fairly high growth ahead. But the transition to a larger presence on the global stage comes with growing pains, for China and the rest of the world. As Beijing plays an ever bigger role in the developing world, some Western countries fear it could undermine efforts to promote democracy.

    In its attempt to secure markets and win allies, China is stepping up development aid to Africa and Asia. Chinese President Hu Jintao pledged last year to double Chinese aid to Africa between 2006 and 2009, promising $3 billion in loans, $2 billion in export credits and a $5 billion fund to encourage Chinese investment in Africa.
    China has also promised Cambodia a $600 million aid package and agreed to loan $500 million to the Philippines for a rail project.
    China also extends aid to states such as Myanmar, Zimbabwe and Sudan whose human rights records have lost them the support of the West. Actress Mia Farrow has labeled next year's Beijing Olympics, a point of pride for China, the "genocide Olympics" because of China's support for Sudan, at a time when the West seeks to punish it for its military actions in Darfur. China buys two-thirds of Sudan's oil output.

    "In some ways, it will be integrating us into a new international order in which democracy as we've known it or the right to open organized political activity is no longer considered the norm," said James Mann, author of "The China Fantasy," a book about China and the West.
    China is also facing some of the unease that powers before it have encountered. In Africa and Asia, some complain that massive China-funded infrastructure projects involve mostly Chinese workers and companies, rather than create jobs and wealth for the local population. Moeletsi Mbeki, a political commentator and brother of South African President Thabo Mbeki, likens the trade of African resources for Chinese manufactured goods to former colonial arrangements.
    "This equation is not sustainable," Mbeki said at a recent meeting of the African Development Bank in Shanghai. "Africa needs to preserve its natural resources to use in the future for its own industrialization."

    The backlash is also coming on the consumer front, with Chinese goods earning a dubious reputation for quality. In the United States, there is a furor over the standard of Chinese imports. In Bolivia, vendors peel off or paint over any indication that their wares were "Hecho en China," Spanish for "Made in China."
    A woman selling bicycles in El Alto, a poor city outside the capital, La Paz, insisted they were made in Japan, South Korea, Taiwan or even India. With some prodding, she acknowledged the truth. "They're all Chinese," she said, declining to give her name lest it hurt her business. "But if I say they're Chinese, they don't sell."

    Even those who benefit from China's growth express some wariness. Aerospace giant Boeing expects China to be the largest market for commercial air travel outside the United States in the next 20 years, buying more than $100 billion worth of commercial aircraft, U.S. trade envoy Karan Bhatia said in a recent speech.
    "Right now, we're hiring every week," noted Connie Kelliher, a union leader. "Things couldn't be better." Yet Boeing workers remain wary of China's ambitions to build its own planes. Next year China plans to test-fly a locally made midsize jet seating 78 to 85 passengers. It also has announced plans to roll out a 150-seat plane by 2020.
    "It's kind of a double-edged sword," Kelliher said. "You want the business and we want to get the airplane sales to them, but there's the real concern of giving away so much technology that they start building their own."

    That's what happened to Western and Japanese automakers, which made inroads in the Chinese market only to see their designs copied and technologies stolen. Already, China's vehicle manufacturers are venturing overseas, exporting 325,000 units last year, mostly low-priced trucks and buses to Asia, Africa and Latin America.
    "We're taking a bigger piece of the pie," said Yamilet Guevara, a sales manager for Cinascar Automotriz, which has opened 20 showrooms in Venezuela in the past 18 months, offering cars from six Chinese makers. "They ask by name now. It's no longer just the Chinese car. It's the Tiggo, the QQ."
    China's biggest car company, Chery Automobile Co., just announced a deal with the Chrysler Group to jointly produce and export cars to Western Europe and the United States within 2 1/2 years.
    Given the speed of China's ascent, it's perhaps not surprising that China itself is trying to calm some of the fears. Its slogan for the Beijing Olympics: "Peacefully Rising China."

    The deal Senate & House negotiators struck on the foreign aid bill is threatened by GOP representatives who say it gives too much money to the U.N. Population Fund, which they accuse of complicity in China's "one-child-per-family" policy and forced abortions The disagreement is holding up final passage of the bill, which includes $15.3 billion in funds and covers everything from military aid to human rights policies to some issues related to the war on terrorism.
    Unlike years past when the debate was whether to contribute to the population fund at all, this year the White House, the House and the Senate each supported funding, $25 million in the House version of the bill and $40 million in the Senate version. The fund runs clinics and provides education & assistance for family planning, treating and preventing sexually transmitted diseases, and gynecological care.

    From 1986 to 1992, U.S. contributed nothing to the fund. Funding was restored in 1993, topped out at $40 million in 1994 and has been $25 million the past 2 years. House & Senate negotiators said they struck a balance this year with a $37.5 million contribution to the fund, closer to the Senate's figure, in exchange for the Senate dropping its amendment that would have overturned the "Mexico City policy." The policy, which critics call the "gag rule," prohibits the U.S. from contributing to overseas family planning groups that provide or counsel women about abortions.

    But when Rep. Jim Kolbe R-AZ presented the deal to his colleagues, Rep. Christopher H. Smith R-NJ and others balked, arguing that the House conceded too much for an organization some would rather not fund at all. "$25 million is $25 million too much, but it's certainly not $34 million or $39 million or some other number," Mr. Smith said. "They certainly shouldn't be getting an increase when they are flaunting coercion while pretending to embrace volunteerism." He said the population fund has "aided & abetted" communist China's policies, in which the central authorities have set quotas for population growth for certain regions. In some cases local authorities, in order to meet their quotas, have forced population control, including abortion.

    U.N. Population Fund spokeswoman Corrie Shanahan in NY, said the agency works only in areas where the one-child policy has been suspended. "That's the basis for us working there. We would not want to, nor would our mandate allow us to, work there if that was not the case," she said. The fund's supporters say rather than aiding China's policy, the fund has the best chance of proving that population growth can be controlled without coercive policies & forced abortions."It has been the UNPF that has been consistently at the forefront of trying to oppose coercion and provide choice instead," said Rep. James C. Greenwood R-PA.

    For now, House Republican leaders have sent Mr. Kolbe back to negotiate a lower U.S. contribution. Several lawmakers & aides said the end result likely will be a compromise in which the Senate agrees to lessen the amount another million dollars or so. Senate negotiators say they already have given up a lot by relenting on the Mexico City policy. But they were unlikely to win that fight anyway since President Bush has said he would veto the bill if it overturned the policy.
    The Senate did concede on another matter; it agreed to leave in a penalty provision levied against the population fund as long as it was active in China. That means that though the bill allocates $37.5 million this year, it will disburse only $34 million to the fund. Last year, even though the budget promised $25 million, the fund received only $21.5 million.

    China's union organizers   Parents crowd parks, sometimes by the thousands, seeking spouses for their adult children. It seems no detail is too personal.   12.31.05   Mark Magnier, Ding Li Beijing L.A. Times

    Beijing   The middle-aged men and women gather in small clumps around the pavilion in Zhongshan Park like molecules in motion, drawn together by the magnetic force of their placards and photos, the odd smile, a flirtatious nod that hints at fading charms.
    "Graduate degree, 5'2" tall with a Beijing residency permit," says a fifty something woman. "I'm sorry, I'm looking for someone who's 5 feet, 6 inches," a man about the same age responds before walking off.

    These earnest hunters aren't in search of soul mates for themselves. They're looking for husbands and wives for their grown children, most of whom have no idea they're here. In fact, many would blanch at meeting anyone their parents recommended.
    The parents say they're aware this is a low-percentage game. It's hard enough out here under the tall cypress trees finding compatible future in-laws, let alone hoping that the offspring will hit it off.

    Still, they return week after week to parks across China, driven by the anxiety of watching the younger urban generation marry later, devote more time to careers and give little apparent thought to starting a family — at least on their parents' schedule.
    Depending on the weather and people's schedules, attendance can range from a few dozen to the upward of 6,000 that showed up late last month at a park in Nanjing.

    Known in slang as "bare sticks", more than 500,000 singles between 30 and 50 live in each of China's 2 main cities, Beijing and Shanghai, according to government figures. That is a fivefold increase from 1990. In China, the average marrying age in 2001 was 24 for men and 23 for women, although experts say it's closer to 30 in big cities such as Beijing.
    It's the fate of Chinese parents, the park-goers say with a weary sigh, to do whatever they can for their children and future grandchildren, in a culture centered on clans, generational continuity and ancestor worship.

    "China has 1.3 billion people," says Bai Qianling, a woman in her early 60s out looking for a suitable match for her very tall 27-year-old daughter, a former volleyball player now doing brand marketing. "Why is it so hard to find one reasonable person?"
    It's a question many of the parents ask themselves as they come together along the Forbidden City's Tongzi Moat to kibitz, lament and indulge in a bit of bragging in the midst of this mass matchmaking. "It's a big auction," says Fu, a woman in her 50s who gave only her surname.

    There are also a lot of data to pore over, Fu adds. In addition to the height, wealth and education of various strangers' children, there are other things to match, such as blood type, food preferences and the Chinese animal signs. On the assumption that the fruit doesn't fall far from the tree, you also need to size up the other parents, something you can't do with Internet matches.
    Those touting eligible bachelors are often mobbed, especially if the candidates have good jobs and degrees from a prestigious university. Proffered daughters outnumber sons by as much as 10 to 1, a function of ticking biological clocks (the parents', that is), male egos (many want young, nonthreatening women, sociologists say) and the growing tendency of educated Chinese women not to settle for just anyone.

    Those hyping daughters appear almost apologetic at times as they detail their offspring's prestigious jobs, education, good looks. Some parents are so stressed by the experience that they burst into tears when talking about their daughters. "It's really pretty tough," says Zang Ling, 54, a retiree looking for a match for her 24-year-old daughter, a hospital administrator. "I've been twice, and it's not very easy hunting."
    Some offspring get angry when they discover their parents advertising their weight, birthmarks and other private details in public parks. Notions of privacy have changed a bit since the days of the Cultural Revolution, when the parents themselves were young and committees oversaw even the most intimate aspects of life to ensure they conformed with socialism.

    "I'm not happy with this," says Lu Jiajia, 27, a graphic artist whose mother has tried to set her up several times. "I told my mother not to go to the park. I don't need her help."
    Others, however, tolerate or even welcome the help after having had trouble finding someone themselves. "I have a pretty small circle of friends and no one in sight I could even imagine as a boyfriend," says Chen Lu, 23, a nurse. "If my parents found someone, I'd probably take a look at him."

    Socialists say even as society changes, younger Chinese are still more willing to accept parental involvement than their Western counterparts, a reflection of China's culture of close-knit families. Traditionally, marriage was seen as a union of two families, not something left to the whims of individuals.
    "Marriage is for the parents, the society and future generations," says Chen Yiyun, head of a matchmaking and counseling website called Green Apple, a name meant to evoke young people. "It's not about happiness or love."

    The one-child policy also has changed the equation, reducing pressure on daughters to leave home and free up the spare room even as it eliminates siblings' friends as a way to meet future spouses, experts say.
    Chinese parents and teachers generally discourage dating in high school or college, believing that interest in the opposite sex detracts from studying. A decades-old law forbidding marriage among university students was repealed only in September.
    Then once employed, a strong work ethic and weak labor laws leave many toiling long hours at small companies, further limiting opportunities to date.

    In October, parents were abuzz when an 80-year-old woman showed up at Zhongshan Park looking for a wife for her 51-year-old son, an extreme example of how Chinese parents often remain a force in their children's lives well into adulthood.
    "In the U.S., when kids become 18, their parents consider them adults and shoo them out of the house," says National Women's Assn researcher Chen Xinxi. "In China, parents of single children don't want them to leave home, no matter how old they are."

    Another element of the equation is that for many parents, hunting in the park beats playing mah-jongg at home. It gives them something to do and provides a common topic to discuss and obsess over, even if it doesn't go anywhere.
    "At first I didn't tell my son I was coming, but now he knows I'm here," Chen Yunchun, 59, says as he whips out a picture of his 28-year-old, Chen Yue, a safety inspector. "And if he doesn't like it, he can lump it."

    Green Apple's Chen says that she has advised many parents not to intervene but that most refuse to listen. For many, it's more about satisfying their own insecurities and easing the loss of face in having unmarried children, she says.
    China's tradition of arranged marriages and parental approval goes back thousands of years. "How do we split firewood?" reads a line in China's oldest poetry text, the Book of Odes, from the 7th century BC. "Without an ax it can't be done. How do we go about finding a wife? Without a go-between it can't be done."

    After the communists took power in 1949, arranged marriages were banned as feudalistic. Mao Tse-tung set an example by marrying three times without an intermediary or the approval of his father, whom he disliked.
    Old traditions die hard, however, and well into the 1970s, work units often assumed the role of matchmaker for many ordinary people. This was particularly true for promising young Communist Party cadres, who sometimes received "suggestions" from work leaders on an appropriate partner. The advice was often hard to ignore given that your work unit, or danwei, had the final say on marriage, divorce, travel, housing and children, a power relinquished only 2 years ago.

    As China opened up in the late 1970s, people's view of marriage changed. Increasingly, money and social status counted again, along with personal happiness. Zhu Junfang, an illiterate coal miner, posted the first marriage advertisement after the Cultural Revolution in the June 1984 issue of the Women in China monthly magazine.
    "I was a pioneer, the first of millions of advertisements for love," Zhu says. His efforts eventually attracted Li Ping, a woman six years his junior who was fleeing her parents' efforts to arrange a marriage she opposed.

    Many in the park remark how much easier it was to find someone in their day, when everyone around them got involved and expectations were lower.
    "There was much more of a community in the old days. Everyone helped you out," Fu says. "Now the whole society is greedy. It's all about money."
    As she speaks, another woman wanders by. "Are you single? What's your story?" she says to a foreigner. "Oh, you're not available? Well, would you know someone in Australia, then? My daughter lives in Sydney, and I'm trying to fix her up."


      circa 1640   China became dangerously dependent on New World supplies of silver for its currency. Supplies from this source start to dry up with disastrous consequences for the late Ming economy.
    History of Money  "from Ancient Times to the Present Day" Glyn Davies
      nongovt organizations
    Rights & Democracy   news email 514.283.6073 f 514.283.3792 1001 de Maisonneuve Blvd E. #1100, Montreal CA H2L 4P9
    Fed. American Scientists nation & research indices
    Methodist GlobMin Afrisearch
    China per Crisisweb (ICG   Solarz)
    Search for Common Ground in D.C. & x
    Medicin sans frontiere   re UNpax  
      links
    China per
    Wash. Post
    IRIN UN Office Coord Humanitarian Affairs
    political radio
    BBC WorldService lead
    Online Intelligence Project re China
      McKinney citations
    Black Flag Cafe
    IntelDir. Rice

    more LaRouche on Africa

    S.China's Guangdong Province plans to require some senior high schools to incorporate the English language through their curriculums in attempt to help mainland southerners match English proficiency of residents in neighboring Hong Kong. The measure, currently being introduced on a trial basis, requires jr & sr high graduates province wide to demonstrate significant av. improvement in English proficiency by 2005 and insists that students in major cities & areas around the provincial capital of Guangzhou must acquire the same command of English enjoyed by people in Hong Kong and SE Asia.
    The plan will be instituted initially in 10 classes at 5 provincial-controlled sr high schools. All the students at the experimented schools will be required to master the basics of at least one foreign language, according to a report on xinhuanet.com.

    The plan also calls for Guangdong to combine information technology with English teaching and requires provincial sr high schools to employ at least one foreign teacher. All English teachers will be required to give lessons entirely in English while some of the province's better sr highs will be encouraged to introduce bilingual teaching in non-English subjects. According to the provincial Education Commission, efforts will soon be underway to collect appropriate English textbooks and develop corresponding teaching software. The commission also revealed it plans to add a foreign language oral examination to the graduation requirements for jr & sr highs in the province.