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2007

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DECEMBER 2007

China Bends To U.S. On Trade Subsidies
Shu-Ching Jean Chen, 11.30.07, 3:34 AM ET Related Stories Summer of Setbacks Novartis Set Back In India Patent Fight Over Glivec Chinese Toy Terror Goldman, UBS Cash In On Shanghai IPO Boom Go-Go Growth For Vietnam Most Popular Stories Smart Ways To Connect Your TV To The Internet Great Holiday HDTVs Baseballs Best Free Agents How to Protect Yourself from Dropping Home Values Eight Hints For Healthier Holiday Eating HONG KONG - The United States hailed as a victory an agreement signed Thursday under which China will eliminate subsidies and tax rebates that boost its exports in certain sectors and stymie imports. For China, it is evidence of a quiet and growing recognition that it must play by the rules of the global trade regime. China reacted with indignation when the U.S. Trade Representative’s Office announced in February that it would challenge China at the WTO over state subsidies of exports of steel, wood and information technology products, among other goods, as well as “import substitution” subsidies that encouraged Chinese companies to buy domestic products instead of imports. Chinese officials and trade experts angrily claimed that the subsidies were allowable under WTO regulations and that Washington was attempting to retaliate against China’s rising trade surplus with the U.S., which this year is on pace to exceed $250 billion [China competition] [Trade friction]
Korea Becomes No. 1 Investor in China
With nearly US$3 billion in investments, Korea has beat out Japan to become the largest investor in China. Citing statistics from China's commerce ministry, the Korea Trade-Investment Promotion Agency (KOTRA) said Thursday that Korea's investments in China for the first 10 months of the year totaled $2.95 billion. While that amount isn't much compared to the $18.66 billion invested by Hong Kong and the $12.9 billion from the British Virgin Islands, KOTRA said Korea is the largest investor among sovereign states since Hong Kong is part of China and the Virgin Islands are a tax haven drawing investors from around the world. Japan came in second among sovereign states with $2.81 billion, followed by Singapore with $2.25 billion and the U.S. with $1.99 billion.
China Denies 'Misunderstanding' about US Ships
The Kitty Hawk and its battle group returned to Japan after being refused entry for a port call in Hong Kong, where the ships were to mark the Thanksgiving holidays, 27 Nov. 2007 The Chinese government has denied that a "misunderstanding" led to its refusal to allow U.S. warships to dock in Hong Kong, and has hinted it may be retaliating for recent U.S. actions. The Pentagon had earlier protested the refusals and said China's explanation was not sufficient. Daniel Schearf reports from Beijing.
Choe Thae Bok Meets Chinese Party Delegation
Pyongyang, November 29 (KCNA) -- Choe Thae Bok, secretary of the Central Committee of the Workers' Party of Korea, met and had a talk with the delegation of cadres of the Communist Party of China (CPC) led by Chen Quanguo, deputy secretary of the Henan Provincial Committee of the CPC, on Thursday. Chen Quanguo said that the Sino-Korean friendly relations provided by the revolutionaries of elder generation of the two countries are growing strong as the days go by under the deep care of General Secretary Hu Jintao and General Secretary Kim Jong Il. He wished the Korean people greater success in their socialist construction under the leadership of Kim Jong Il.

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NOVEMBER 2007

China Rising
Cyrill Eltschinger 11.29.07, 9:20 AM ET
BEIJING - Outsourcing and offshoring are entering a new phase in their development. With the dollar falling and demand for outsourced talent rising, traditional choices for these services are changing and, as a result, incumbent players are no longer an automatic choice. In fact the shift toward global nearshore is growing strong. So parallel with this approach, the China market is increasing in popularity. Through a combination of factors, China has come to the forefront of the outsourcing industry, and stands to become the world's pre-eminent supplier of outsourcing talent and services. In a report that heralded the new paradigm shift, International Data predicted earlier this year that by 2011, China will be the world's top outsourcing destination. [Offshoring]
China’s Denial of Port Calls by U.S. Ships Worries Navy
Top of Form By THOM SHANKER Published: November 28, 2007 WASHINGTON, Nov. 27 — Two senior American admirals expressed concern on Tuesday over decisions this month by China to refuse access to the port of Hong Kong for three American warships, including two seeking fuel and sheltered waters ahead of a major storm. The officers, Adm. Gary Roughead, the chief of naval operations, and Adm. Timothy J. Keating, commander of American forces in the Pacific, said neither the Chinese government nor its military had offered explanations. Two minesweepers, the Patriot and the Guardian, were sailing in international waters this month when a serious Pacific Ocean storm threatened. The two vessels, relatively small, asked for permission to enter Hong Kong’s harbor for fuel and safety. The request was denied. [China confrontation]
Broad External Activities of Koguryo
Pyongyang, November 27 (KCNA) -- Koguryo (277 B.C. - A.D. 668) which existed for nearly one thousand years was a powerful state in the East. It displayed the dignity and mettle of the independent nation, having established external relations with many neighboring countries. According to historical records, Koguryo had external relations with 24 countries in western and northwestern regions adjacent to it and engaged in brisk diplomatic and trade activities with them. This is well illustrated by a palace mural of Samarkand. The mural discovered in Samarkand of Uzbekistan in Juche 54 (1965) portrays Koguryo envoys who traveled tens of thousands of ri across the continent and conducted diplomatic activities in the western region (Central Asia).
China Takes Issue With Dam Critics
Official Affirms Safety Of Three Gorges Area By Maureen Fan Washington Post Foreign Service Wednesday, November 28, 2007; Page A17 BEIJING, Nov. 27 -- A week after a landslide near the controversial Three Gorges Dam killed more than 30 people, Chinese officials on Tuesday defended the environmental work around the project, arguing that "geological disasters" in the area "have been effectively controlled" and dismissing negative news coverage as sensationalistic. "This area has always been an area of frequent geological disasters," said Wang Xiaofeng, director of the Three Gorges Project Construction Committee, noting that China has invested more than $1.4 billion in tackling such problems. [Reassertion]
France, China sign $30 billion in nuclear, airliner deals
By Tim Johnson | McClatchy Newspapers Posted on Monday, November 26, 2007 President of the People Republic of China Hu Jintao (left) welcomes his French counterpart Nicolas Sarkozy at the Diaoyutai host residence in Beijing, China. | View larger image BEIJING - French President Nicolas Sarkozy, remaining largely silent on sensitive human-rights topics, won deals from China on Monday for two nuclear reactors and 160 Airbus jetliners together worth some $30 billion, an amount he called unprecedented. "The total amount of these contracts has never been matched before," Sarkozy told Chinese President Hu Jintao in the Great Hall of the People. The sales appeared to be a reward to France for respecting Beijing's sensitivities on such matters as Tibet. Sarkozy, unlike his German and American counterparts, hasn't received the Dalai Lama, the Tibetan spiritual leader, whom China condemns as a separatist.
Airbus to Sell 160 Jets to China
By THE ASSOCIATED PRESS Published: November 26, 2007 Filed at 3:08 a.m. ET BEIJING (AP) -- Airbus said it signed contracts Monday to sell 160 commercial passenger jets to China in a deal worth around $14.8 billion. The order includes 110 of the European company's A320 jets and 50 of the slightly larger A330 planes, Airbus officials said in Beijing, where they were accompanying French President Nicolas Sarkozy on his first state visit to the Asian trading giant. Airbus and Chinese partners this summer signed an agreement to produce A320s in China in anticipation of large Chinese orders for the popular single aisle jet that seats 150 or more passengers. Size-wise, the plane is well suited for Chinese domestic routes expected to show strong growth in the years ahead as the economy continues to expand. Airbus and its American archrival Boeing Co. predict China will become the world's second-biggest aircraft market after the United States, with airlines buying 1,900 to 2,600 planes over the next two decades. The order stands to push Airbus past Chicago-based Boeing in total orders for commercial aircraft this year
China Shows First Image From Lunar Probe
The Associated Press Monday, November 26, 2007; 12:20 AM BEIJING -- China displayed the first image of the moon captured by its Chang-e 1 lunar probe at a gala ceremony Monday, marking the formal start of the satellite's mission to document the lunar landscape. Unveiling the image at the Beijing Aerospace Control Center, Premier Wen Jiabao hailed it as a major step in "the Chinese race's 1,000-year-old dream" of exploring the moon.
China hopes the probe, launched late last month, will have surveyed the entire surface of the moon at least once by early next year. The probe's launch closely followed the start of a similar mission by Japan, prompting speculation over a new space race in Asia. India plans to launch a lunar probe in April. [China India competition]
Why we could see red over a Chinese-owned Standard
The place of the People's Republic in Western economies could become an issue if it launches a bid, writes Richard Wachman Richard Wachman The Observer Sunday November 25 2007 Standard Chartered has long been rumoured to be a takeover target for US and British rivals, but now it's the turn of Chinese state-run institutions to be sizing up the London-based bank, which operates primarily in Asia, Africa and the Middle East. Several Chinese banks have been trying to persuade another state-owned body, the Singaporean investment agency Temasek, to sell them its 17 per cent stake in Standard. The Singaporeans are said to be reluctant sellers, but the teasing question for Standard's investors is whether the Chinese want only the Singaporean holding, or intend to acquire it to launch a full-scale bid. Even if Temasek won't sell, there is nothing to stop the Chinese buying a stake from other investors in the market. Robin Down, a banking analyst at HSBC, says: 'China has a lot of money and Standard has an enviable franchise in most of the big Asian economies. I am less convinced than I used to be about Standard being able to retain its independence.' Down says it would take years for a competitor to build a bank such as Standard, which is strong in Indonesia, Thailand, Korea, India, Hong Kong and Malaysia. It is also expanding on the Chinese mainland. [China confrontation] [China competition]
N.Korea Becoming China's 'Fourth Northeastern Province'
China last year bought US$274.5 million worth of North Korean mineral resources. The total volume of South Korea’s imports of North Korean mineral resources was $59.73 million, just one fifth of China’s volume. South Korea’s trade with North Korea amounted to $1.2 billion, which was not much different than China’s $1.6 billion. But when it comes to North Korean minerals, China is sweeping them up. This is what’s written in a report compiled by the Korea Chamber of Commerce and Industry on ways to cooperate in developing North Korean underground resources. In recent years, China has been sweeping up major North Korean mining rights. China has so far acquired 50-year rights to Musan Iron Mine, North Korea’s largest, located in Hamgyong Province, 25-year rights to Hyesan Youth Copper Mine in Yanggang Province and 50-year rights to Yongdeung Coal Mine in North Pyongan Province. China and North Korea have signed pacts to co-develop offshore oil deposits in the Yellow Sea, but specific details have yet to be revealed. [China NK]
The U.S. “One China” Policy: Time for a Change?
By Alan D. Romberg The U.S. “one China” policy is under challenge. Some say the U.S. should support the independence of democratic Taiwan; others argue the U.S. should support, not just peaceful resolution of cross-Strait issues, but peaceful reunification. But this is not time for a change; not only does the policy work, there is no better alternative. [China confrontation]
India's Gandhi to visit China as ties show strain
Tue Oct 23, 2007 7:07am. By Simon Denyer
NEW DELHI, Oct 23 (Reuters) - India's most powerful politician, Sonia Gandhi, heads to China this week to set the stage for a summit between the Asian heavyweights, as relations between the rivals show renewed signs of strain.
Gandhi, head of the Congress party and the ruling coalition, is due to arrive in China on Thursday, setting the stage for Prime Minister Manmohan Singh to visit later this year or early next.
Decades of mistrust between the neighbours date back to a 1962 war, and this year has seen an apparent setback in the long-running border dispute which sparked that conflict. These days they talk the language of cooperation, but more often than not they are locked in competition, whether for global influence or for the raw materials and energy they need to fuel Asia's two fastest growing economies.
New Delhi has its own concerns. This year China appeared to harden its position on the border dispute, signalling it no longer felt bound by a 2005 agreement that any settlement should not disturb settled populations. [Border war] [China India relations]
Chinese Senior Official on Sino-Korean Relations
Beijing, November 20 (KCNA) -- Gu Xiulian, vice-chairperson of the Standing Committee of the Chinese National People's Congress, Monday met and had a friendly talk with the delegation of the Korean Committee for Cultural Relations with Foreign Countries headed by its acting Chairman Mun Jae Chol on a visit to China at the Great Hall of the People in Beijing.
India, China ready to take partnership to 'new level'
21 Nov 2007, 1033 hrs IST,PTI SINGAPORE: India and China on Wednesday affirmed their readiness to take their strategic and cooperative partnership to a "new level" and see a "fair, reasonable and mutually" acceptable solution to the boundary question. During a 30-minute meeting marked by "cordiality and friendship" on the margins of the East Asia Summit, Prime Minister Manmohan Singh told his Chinese counterpart Wen Jiabao that India attaches "great importance" to its partnership with China. Singh said India is resolved to ensuring the comprehensive development of bilateral relations for mutual benefit and on the basis of "mutual sensitivity" to each other's concerns. This is Singh's second meeting with the Chinese premier this year. They had earlier met at the second East Asia Summit in Cebu in January this year. Warmly reciprocating the Prime Minister's sentiments, Wen said "friendship with India is the strategic and long term objective of China". [China India]
India, China to hold joint military exercise
Updated: Wednesday, November 21, 2007 at 12:14:42 New Delhi, November 21: China and India, who went to war in 1962, will hold their first joint army exercise next month in a sign of warmer ties between the two Asian powers. About 100 troops from each country will participate in the military exercise in China's Yunnan province. "The focus of the joint exercise will be on counter-terrorism measures. This is significant for the relationship between the two countries," Indian defence ministry spokesman Sitanshu Kar said. The world's two most populous nations are forging new ties amid soaring trade and business links despite serious differences over their Himalayan border, the cause of the 1962 conflict. "The exercise is undoubtably significant. India wants to be increasingly engaged with China," said Alka Acharya, head of East Asian Studies at Delhi's Jawaharlal Nehru University. "It wants a comprehensive relationship, and this has been on the cards for some time." India has also been pursuing closer relations with the United States, something that worries China. India held a large military exercise with the United States, Australia, Japan and Singapore in the Bay of Bengal in September and is boosting its navy presence in the area. [China India]
China Feared Grabbing Up Resources in N.Korea
In January last year, China's Zhaoyuan Gold signed a 25-year contract with North Korea for a 50 percent share of operational rights to North Korea's largest copper mine, the Hyesan Youth Copper Mine in Yanggang Province. The Chinese firm invested 8 million euro (about W11 billion). In 2005, the Department of Commerce of China's Jilin Province bought a 50-year contract for mining rights to North Korea's largest iron mine, Musan Iron Mine in North Hamgyong Province, for 7 billion yuan (about W875 billion). The deal gives China the right to mine and haul 10 million tons of iron ore per year from Musan. Many experts are raising concerns about China's recent attempts to sweep up North Korea's mineral resources. They are stressing the importance of getting involved in the development of mineral resources in the North at a time when international prices of raw materials are soaring. [China NK]
India Rediscovering East Asia
Chietigj Bajpaee 24 October 2007 he visit of Japanese Prime Minister Shinzo Abe to India in August; India's multi-nation naval exercise with the navies of Australia, Japan, Singapore, and the United States in September following the trilateral naval exercises with Japan and the United States in April; and the planned visit of Indian Prime Minister Manmohan Singh to China following China's and India's first joint counter-terrorism training in November were all events confirming that India's "Look East" policy is in full swing.
Pax Sinica vs. Pax Americana
The Economist magazine recently released a report entitled "The World in 2008." The London-based magazine predicts that the U.S. economic growth rate will drop to 1.2 percent next year, lower than this year's 1.9 percent estimated by the World Bank, due to a large drop in domestic consumption in the wake of the sub-prime mortgage crisis. The magazine also predicts that China will achieve a high growth rate of around 10.1 percent to fill the void left by the U.S., and that the world economy as a whole will not shrink to a large extent. On the whole, the biggest focus of attention for next year will be a rising China and a declining U.S. China is expected to become the world's largest exporter next year, outdistancing Germany, and to become the second largest importer after the U.S. It will also likely win the most gold medals at the Beijing Olympics in August. China could also overtake the U.S. in terms of the number of broadband Internet users, emerging as the world's leader in e-commerce. What this means is that in 2008 the world will witness the Pax Americana-based world political and economic system being shifted to a Pax Sinica-based system for the first time. [Decline] [Reserve] [Sandwich]
Distressed Sailors of DPRK Rescued by Chinese Side
Pyongyang, November 17 (KCNA) -- The Korean Central News Agency Saturday released the following report as regards the Chinese side's sincere rescue of sailors of the DPRK-flagged ship which met a disaster in the waters off Yantai City, Shandong Province of China: Shortly ago, the DPRK-flagged ship "Jungsan" was wrecked by a sudden strong wind in waters off Yantai City, Shandong Province when it was sailing with trade cargo aboard towards the Shandong Peninsula of China. Upon receiving a distress signal sent by the ship, the Chinese side lost no time to give an instruction to the field concerned to launch a rescue operation by every possible means. The Maritime Bureau of Shandong Province and the maritime rescue centers of Yantai City and Weihai City and a unit of the Chinese People's Liberation Army stationed in the relevant area took emergency measures and sent dozens of rescue ships to the scene of the disaster. Despite strong wind and wave, the local government there and the above-said army unit mobilized thousands of people and servicemen for a large-scale rescue operation. A large quantity of goods was provided to the distressed crewmen to protect them from cold and a medical team was sent to sincerely treat the rescued crewmen. As a result, 20 sailors of the 23 crewmen of the wrecked ship were rescued and returned home.
The World in 2008 – China special section
The challenge to Beijingoism China prepares for the games—and its critics James Miles
Dire straits Taiwan heads, turbulently, to the polls James Miles
Chery-picking The global temptation for Chinese companies Charles Lee
No kids, more money Watch out for China’s empty-nesters
Smelling a rat Worries about China’s economy are overblown Steven Sitao Xu
Flashing red Sooner or later, the world’s hottest market will burn up Thomas Easton
E-commerce with Chinese characteristics A million internet entrepreneurs will bloom, predicts the boss of China’s biggest internet company Jack Ma
The new champions Guess who’ll be rising up the statistical charts in 2008 Pam Woodall
Win-win Olympics Team China will strike gold in Beijing Matthew Glendinning
In 2008, be nicer to your neighbours The Dalai Lama, Tibet’s exiled spiritual leader, urges the world in general—and China in particular—to show more compassion in the year ahead
Engaging China: The Political Economy and Geopolitical Approaches of the United States, Japan and the European Union
Ming Wan
Abstract This paper examines US, Japanese and European political economy approaches to China and their effect on US-Japan and US-European Union (EU) relationships. Great powers with a greater security concern in dealing with another major country care more about power while those with less concern are preoccupied with calculations of wealth. China's rise and its actions have posed a far greater security challenge to the United States and Japan than to the EU and are driving the two countries closer together. The political economy game involving China reveals a dominant welfare motive among the advanced market economies. The ambition to transform China politically has diminished. China's integration into the global market makes a relative gains approach difficult to implement. Globalization simply limits the ability of a state to follow a politics-in-command approach in the absence of actual military conflict, which explains why the political economy approaches of the United States, Europe and Japan are not that different. China's own grand strategy to reach out to the world and outflank the US-Japan alliance has also contributed to a divergent European policy toward China, although there are severe limitations to Beijing's ability to drive a wedge between the United States and Europe. Engaging China: The Political Economy and Geopolitical Approaches of the United States, Japan and the European Union [China confrontation]
Chinese Banks Becoming Powerful Factor in the Global Financial Sector
Adam Wolfe07 November 2007
n October 25, Industrial and Commercial Bank of China (I.C.B.C.), the world's largest bank by market capitalization, announced that it would purchase a 20 percent stake in Standard Bank, South Africa's largest bank. If the US$5.6 billion deal is approved, it will be the largest foreign direct investment in South Africa since the end of apartheid in 1994 and the biggest overseas investment by a mainland Chinese company.
Chinese banks may also regain access to the U.S. market soon. Chinese banks have been effectively banned from operating branches in the United States since 1991, but the Federal Reserve is reviewing applications from I.C.B.C. and China Merchants Bank to open branches in New York. [Finance]
Anniversary of Transfer of Koguryo's Capital to Pyongyang Marked
Pyongyang, November 15 (KCNA) -- A symposium of social scientists was held on Thursday to mark the 1,580th anniversary of the transfer of the capital of Koguryo to Pyongyang. The symposium heard six papers which explained and proved the transfer of the capital of Koguryo to Pyongyang in 427 and its historic significance as it contributed to promoting the development of social history in Korea and had a great impact on exalting the national honor and the international prestige of Korea in the middle ages. Dr. Son Su Ho, director of an institute of the Academy of Social Sciences, spoke under the title "Relics dating back to Koguryo which were discovered in the vicinity of Pyongyang and restored to their former glory under the wise guidance of President Kim Il Sung and leader Kim Jong Il". He said: The tomb of King Tongmyong was discovered and its nature scientifically proved in the 1970s thanks to the patriotic intention of the peerlessly great men and their wise guidance. It was successfully rebuilt into a mausoleum of the founder of powerful Koguryo.
China Stand on Imports Upsets U.S.
By STEVEN R. WEISMAN Published: November 16, 2007 WASHINGTON, Nov. 15 — Few American industries have had more success in selling goods to China than makers of medical devices like X-rays, pacemakers and patient monitors. Which is why a recent Chinese decree was so troubling. China has called for new safety inspections for foreign-made medical devices, but not its own. The directive, issued in June, called for burdensome new safety inspections for foreign-made medical devices — but not for those made in China. The Bush administration is crying foul. [China competition]
Dire climate warning linked to China and India
By Elisabeth Rosenthal Published: November 14, 2007
ROME: The average global temperature will rise to a devastating level by 2030 if China and India do not begin curbing energy use and carbon emissions immediately, officials of the International Energy Agency predicted Wednesday. Speaking at the World Energy Congress, the officials noted that 60 percent of the global increase in emissions from 2005 to 2030 would come from India and China. By next year, China will overtake the United States as the leader in carbon emissions, the agency predicts; some studies suggest that this has already occurred.
India, China will cross $30 bn trade this year: Envoy
India and China are set to surpass $30 billion in bilateral trade this year, Chinese ambassador Sun Yuxi said here Wednesday.
New Delhi, Delhi, India, 2007-11-14 20:45:03
India and China are set to surpass $30 billion in bilateral trade this year, Chinese ambassador Sun Yuxi said here Wednesday. 'Bilateral trade has already crossed $27 billion. We will easily cross $30 billion trade this year,' he told reporters while stressing that the two countries would achieve the 2010 target of $40 billion much before that date. The Chinese envoy, however, sounded ambivalent about Beijing's position on the India-US nuclear deal in the 45-nation Nuclear Suppliers Group (NSG). 'Let's see the changes in India first,' he replied, when asked whether there was any change in Beijing's stance on the nuclear deal. He was referring to problems the landmark nuclear deal has run into in India due to a standoff between the Indian government and its Left allies. China, an influential member of the NSG, has been noncommittal towards supporting India in the grouping but has indicated that it will not stand in the way of New Delhi's way when the deal comes to the nuclear grouping for approval. He was equally ambivalent about China's stand on India's bid for an expanded Security Council seat. 'We want India to play a larger role in the world,' was all that he would say. The envoy did not comment on the progress on talks on resolving the boundary dispute between India and China. [Border war]
Attacks Spark Debate About Chinese Anti-Koreanism
A series of attacks on Koreans in the Chinese city of Shenyang over the past couple of months has sparked a dispute about anti-Korean sentiment among Chinese netizens. One Chinese Internet user posted comments on the attacks under the title, "Chinese start teaching Koreans a lesson" on China's largest web portal Sina.com, drawing more than 8,000 readers and over 70 replies as of Wednesday afternoon. The end of the posting is adorned with a propaganda slogan reading, "Let's drive Koreans out of China." Supporting the claim, some Chinese users expressed anti-Korean sentiment in replies, proposing a boycott of Korean products or expelling Koreans and teach a lesson to people who look down on the Chinese.
Anniversary of CPV's Entry into Korean Front Marked
Pyongyang, October 25 (KCNA) -- Today marks the 57th anniversary of the entry of the Chinese People's Volunteers into the Korean front. On this occasion the men and officers of the Korean People's Army and the people of the DPRK extend friendly greetings to the men and officers of the Chinese People's Liberation Army and the people of China and pay high tribute to all the fighters of the CPV who fell while bravely fighting on the Korean front, Rodong Sinmun today says in a signed article.
Talks Held between Senior Officials of WPK and CPC
Pyongyang, October 29 (KCNA) -- Talks were held between Choe Thae Bok, alternate member of the Political Bureau of the Central Committee of the Workers' Party of Korea and secretary of its Central Committee, and Liu Yunshan, member of the Political Bureau, member of the Secretariat and head of the Publicity Department of the Central Committee of the Communist Party of China, on Oct. 29. Present there from the WPK side were Pak Kyong Son, vice department director of the C.C., the WPK and from the CPC side Liu Yunshan's party and Liu Xiaoming, Chinese ambassador to the DPRK. The talks proceeded in a comradely and friendly atmosphere.
As military balks, Chinese public pushes for aircraft carriers
By Tim Johnson | McClatchy Newspapers Posted on Thursday, November 8, 2007
TIANJIN, China — On a windswept pier at the Binhai theme park, tourists board an aged Russian aircraft carrier, the Kiev, and imagine what it would be like if China had such a symbol of maritime might. Along dimly lit passageways, they peer into compartments to see mannequins of Russian sailors loading rockets into firing tubes, manning radars and even entering a sauna. On deck, simulated jet fighters rest on the rolling tarmac along a runway. China remains the only major global power without aircraft carriers in its fleet. For years, military leaders have weighed the pride that such vessels would bring the nation with the costs and complexity of operating the giant ships, continually postponing a decision. But now public sentiment is running strongly in favor of launching a program to build aircraft carriers, and some military experts say construction may be inevitable. [Democracy] [Militarisation]

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OCTOBER 2007

Taiwan Leader Dismisses Hu Overture
By KEITH BRADSHER Published: October 18, 2007 TAIPEI, Taiwan, Oct. 18 - President Chen Shui-bian of Taiwan on Thursday denounced a peace overture from President Hu Jintao of China that has received a cautious welcome here from both candidates for the presidential election next March.
China summons U.S. ambassador to protest award to Dalai Lama
+ - 17:06, October 18, 2007 Chinese Foreign Minister Yang Jiechi on Thursday summoned U.S. ambassador to China Clark Randt to express strong protest on behalf of the Chinese government for the Capitol's awarding to the Dalai Lama, Foreign Ministry spokesman Liu Jianchao said. The move of the United States is a wanton interference in China's internal affairs, has hurt the feelings of the Chinese people and gravely undermined its relations with China, Liu told a press briefing on Thursday. Tibet is an inalienable part of the Chinese territory, Liu said, adding the Tibet issue is purely China's internal affairs. China resolutely opposes any country or any people to make use of the Dalai Lama issue to interfere its domestic affairs, he said. "The words and deeds of the Dalai Lama in the past decades show he is a political refugee engaged in secessionist activities in the camouflage of religion," Liu said. The so-called U.S. congressional award to the Dalai Lama and the meetings of U.S. leaders with him "have severely trampled on the norms of international relations and violated the U.S. government's reiterated position on the Tibet issue," Liu said. "We express our strong dissatisfaction and resolute opposition toward this," he said. Chinese people's determination to safeguard national sovereignty and territorial integrity is unswerving and any attempt to interfere in China's internal affairs using the Dalai problem is doomed to fail, Liu said. [Separatism] [Fragmentation] [China confrontation]
China resents 'gross interference'
+ - 08:13, October 18, 2007 China lashed out at US President George Bush's meeting with the Dalai Lama, calling the meeting a "gross interference" in its internal affairs. "China is strongly resentful of this and resolutely opposes it, and has made repeated solemn representations to the US side," Foreign Ministry spokesman Liu Jianchao said yesterday. He again urged the US side to correct its wrongdoings and stop interfering in China's internal affairs in any form. Liu said such a meeting "seriously violated" the norms of international relations and gravely hurt the feelings of the Chinese people. "It is a gross interference in China's internal affairs," Liu added. Liu's remarks were the latest response in a string of Chinese protests about the decision to award the Dalai Lama the US Congressional Gold Medal in a public ceremony earlier yesterday. Despite stern warnings from Beijing, Bush met with the Dalai Lama in the White House on Tuesday The meeting is the third since Bush took office in January 2001, but the first public appearance with the Dalai Lama for a sitting US president. Liu reiterated that Tibet is an inalienable part of China, saying China is firmly against any country and any people using this issue to interfere with its internal affairs. "The words and deeds of the Dalai Lama in past decades have demonstrated that he is a political refugee engaged in secessionist activities under the camouflage of religion," Liu said, adding that any attempt to interfere in China's internal affairs using the Dalai issue is "doomed to failure". "Chinese people's resolve to safeguard the nation's sovereignty and territorial integrity is firm and unshakeable." [Separatism] [Fragmentation] [China confrontation]
Honoring the Dalai Lama
EDITORIAL
Published: October 18, 2007 It is a given that whenever the Dalai Lama is honored, China’s Communist leaders lash out. It happened when the Tibetan spiritual leader, and Nobel Peace Prize laureate, was received by German Chancellor Angela Merkel last month, and it happened again yesterday when the Dalai Lama met with President Bush and was awarded the Congressional Gold Medal in Washington. The Dalai Lama said yesterday that he felt “regret” over the tensions. It is our hope that leaders will continue to ignore China’s protests and threats, and that by continuing to honor the Dalai Lama they will finally persuade Beijing to open serious talks about granting autonomy to Tibet. [Separatism] [Fragmentation] [China confrontation]
Afraid of the Dalai Lama?
China's Chance to Turn Toward Dialogue on Tibet
By Maura Moynihan Thursday, October 18, 2007; Page A25 Yesterday the Dalai Lama received the Congressional Gold Medal, Congress's highest civilian honor, and China is throwing a fit. "We are furious," the Chinese Communist Party's secretary for Tibet, Zhang Qingli, declared this week. "If the Dalai Lama can receive such an award, there must be no justice or good people in the world." In recent days China has abruptly withdrawn from a summit on Iran and canceled a meeting with German Chancellor Angela Merkel, who received the Dalai Lama in September. Beijing, which according to The Post "solemnly demanded" that the Bush administration cancel Washington events planned for the Dalai Lama, is determined to punish and intimidate anyone who might pay tribute to Tibet's Nobel laureate. Why is the mighty People's Republic of China so petrified of this 72-year-old Buddhist monk? True, the Dalai Lama is no ordinary scholar and teacher; he is the living symbol of the Buddhist faith. It seems that Beijing's cadres fear his moral authority and do not want the international community to examine their record in Tibet, because they have a lot to hide. [Separatism] [Fragmentation] [China confrontation]
Rush to Chinese fund investments gets a red light
Analysts advise consumers not to put their eggs all in one basket
Recently, a man in his 50s visited a local brokerage and asked to open a Chinese equity fund account in which he wanted to put as much as 200 million won. He said, "The money is needed in a year to pay for an apartment, but I want to put all of it on a Chinese equity fund." Though a brokerage clerk advised him not to do it, he deposited his money into two funds, with 60 percent on a local equity fund and the rest on a BRICs product. A similar case was reported in another brokerage company when a customer asked to invest 25 million, which he borrowed from a bank to pay for a house he is going to rent, but the request was rejected by a company clerk. With the Chinese economy expanding at breathtaking speed and its stock markets going up every day, an increasing number of local investors are rushing to jump on the bandwagon and open China-related fund accounts.
China Issues Warning on Dalai Lama Trip
By JOSEPH KAHN Published: October 17, 2007 BEIJING, Oct. 16 - Chinese officials warned the United States on Tuesday not to honor the Dalai Lama, saying a planned award ceremony in Washington for the Tibetan spiritual leader would have "an extremely serious impact" on relations between the countries.
Economic Brief: E.U. Textile Quotas Set to Expire in December
17 October 2007 On December 31, 2007, European Union quotas limiting the import of Chinese textiles will expire. This will allow for significant increases in imports, which will have negative effects on European textile producers, especially in countries such as Italy where textile manufacturing makes up a larger part of the economy. At the same time, the lifting of quotas is necessary for the E.U. to fulfill obligations to the World Trade Organization (W.T.O.), made when China became a member of that organization, which outlines that W.T.O. members could only limit Chinese exports until 2008. This is a classic conflict between the potential losses of European textile manufacturers and the potential gains of European consumers and low-cost Chinese producers. [China competition] [Protectionism]
Ma Unveiled “Golden Triangle” and “Economic Proposal 623”
October 12, 2007 KMT Presidential candidate Ma Ying-jeou delivered a speech at the Taiwan Investor Conference 2007 hosted by Citigroup Global Markets Inc. on October 11, declarling that, if elected, he would establish a "golden triangle" in Taiwan to boost employment. The golden triangle aims to turn three elements of Taiwan’s service sector, i.e., financial services, tourism, and healthcare, into the new engine for Taiwan’s economic development, and reverse the negative legacies left by the DPP, including sluggish economic development, high unemployment, widening gap between rich and poor, and a skyrocketing suicide rate. [Services]
China’s Citic Weighs Bear Stearns Bid
By JOSEPH KAHN Published: October 17, 2007 BEIJING, Oct. 16 — An investment bank controlled by the Chinese government is interested in buying a stake in Bear Stearns, the Wall Street securities firm hit hard by the subprime mortgage sell-off, the firm’s president and a Chinese regulator said Tuesday. Skip to next paragraph Related Buffett Said to Consider Bear Stake(Sept. 27, 2007) The comments were the first official confirmation that a Chinese entity was joining the bidding for a stake in Bear Stearns, which has held discussions with several outside investors as it seeks to shore up its balance sheet after suffering heavy losses during the summer’s credit-market turmoil. If the bid succeeds, the investment bank, the China Citic Group, which is affiliated with China’s Cabinet, would join a growing list of Chinese government-linked companies and investment agencies that have sought to expand abroad over the last several years. Heavy foreign investment and a booming export sector have left China flush with foreign currency, but its financial system remains relatively backward and focused inward, analysts say. Citic may hope that a foothold in Bear Stearns, Wall Street’s fifth-largest securities firm, would enhance its ability to handle complex financial deals and compete internationally. [ODI]
The Turnaround in Sino-Indian Relations
Tarique Niazi
Many observers have recently argued that the newly forged Indo-U.S. alliance will work against its “intended aims of Chinese encirclement.” [1] Although India denies its part in any attempt at “Chinese containment” to the publicly acknowledged satisfaction of China, [2] the theory nevertheless persists. China’s response to the Indo-U.S. alliance is, however, quite creative. Instead of reacting with alarm, Beijing has gone on a charm offensive to draw New Delhi into a triangular entente among China, India and Russia. India, which has languished under foreign subjugation for centuries, has a visceral aversion to strategic alliances with world powers. Since its independence in 1947, it has followed what could be described as the “Third Way” in world diplomacy, which manifested itself in the birth of the Non-aligned Movement (NAM) in the 1950s. China is now building bridges to India based in part on the latter’s instinctive wariness of foreign influences, which is evident in India’s homegrown opposition to its nuclear deal with the U.S.
Yet India seeks deeper relations with the U.S. to help modernize its economy, strengthen its military, and make needed advances in science and technology. The Indo-U.S. nuclear deal addresses all these concerns. Above all, India needs the U.S. to step onto the world stage as an emerging world power. To achieve this end, India will heed Subrahmanyam’s advice “to learn to deal simultaneously with all major powers to enhance its own national interest.” [38] India will do so even if it has to play off competitive tensions between China and the U.S. to its advantage as described by an Indian statesman, Kuldip Nayar: “It suits (India) to keep America guessing whether we would ever be a counter force to check China…. Not that America’s friendship is crucial to us, but our equation with it will help us get a better offer on the border (dispute) from China.” [39] Chinese and Indians have come to recognize this reality by agreeing that they both will “play their respective roles in the region and beyond, while remaining sensitive to each other’s concerns and aspirations.” [40] [China India US]
Choking on Growth. Water and China’s Future
Jim Yardley
Shijiazhuang, Hebei, China — Hundreds of feet below ground, the primary water source for this provincial capital of more than two million people is steadily running dry. The underground water table is sinking about four feet a year. Municipal wells have already drained two-thirds of the local groundwater. [Environment]
Karat's triumph
15 Oct, 2007, 0220 hrs IST
Congress blinks
CPI(M) general secretary Prakash Karat has pulled off a major political victory. We believe Mr Karat's triumph will be bad for India but there is no doubting his strategic implacability and tactical astuteness. In the confrontation between the Congress and the Left, it is the former which has blinked. The UPA allies, no doubt encouraged by Mr Karat and his friends, made it clear that they were not keen on early elections following which the government caved in. It could be argued that Mr Karat always held the aces. [Nuclear deal]
India and Pakistan: partition lessons
Ravinder Kaur
The violent territorial rupture of 1947 and its legacy reveal partition to be conceptually flawed and historically ill-grounded as a solution to political antagonism, says Ravinder Kaur. 16 - 08 - 2007 The sixtieth anniversary of the independence of Pakistan and India on 14-15 August 2007 has prompted official celebration in both countries, as well as an ocean of commemorative coverage in the world's media. The terrible violence that accompanied the birthpangs of the two states from the ashes of empire is an inevitable theme in much commentary. What is being less addressed amid the profusion of human stories - and what this article considers - is whether the problems of communal division in the sub-continent were or are best addressed by the partition of territory. Ravinder Kaur teaches at the University of Roskilde, Denmark. She is the editor of Religion, Violence and Political Mobilisation in South Asia (Sage, 2005) and author of Since 1947: Partition Narratives among Punjabi Migrants of Delhi (Oxford University Press, 2007) The bare details of 1947 and its legacy are stark. The territorial partition that created modern India and Pakistan involved the internal division of Punjab and Bengal provinces, which - in unimaginable conditions of collapse of authority, flight, and massacre - resulted in the forced movement of 20 million people (Hindus and Sikhs to India and Muslims to Pakistan) and approximately 1.5 million deaths.
Arms sales: How the US is not winning friends
By Zia Mian The United States sells death and destruction as a fundamental instrument of its foreign policy. It sees arms sales as a way of making and keeping strategic friends and tying countries more directly to US military planning and operations. At its simplest, as Lt Gen Jeffrey B Kohler, director of the Defense Security Cooperation Agency, told the New York Times in 2006, the United States likes arms deals because “it gives us access and influence and builds friendships”. South Asia has been an important arena for this effort, and it teaches some lessons the United States should not ignore. A recent Congressional Research Service report on international arms sales records that last year the United States delivered nearly $8 billion worth of weapons to Third World countries. This was about 40% of all such arms transfers. The US also signed agreements to sell over $10 billion worth of weapons, one-third of all arms deals with Third World countries. It is easy to put this in perspective: $10 billon a year is the estimated cost of meeting the UN Millennium Development Goal for water and sanitation, which would reduce by half the proportion of people in the world without proper access to drinking water and basic sanitation by 2015. Today, about 1.1 billion people do not have access to a minimal amount of clean water and about 2.6 billion people do not have access to basic sanitation. [Arms sales] [Pakistan] [India]
What Korean unification means to China
SEOUL, Sep. 18 ZHANG QUANYI
Column: Global Survey The coming summit meeting on the Korean peninsula signifies another step toward reconciliation between two long-time adversaries. South Korean President Roh Moo-hyun and North Korean leader Kim Jong Il will meet in Pyongyang in early October. Their meeting will be only the second between leaders of the two countries, following the 2000 summit between former South Korean President Kim Dae-jung and North Korean leader Kim Jong Il. [China NK] [Unification]
Kim Jong-il may visit China after leadership change
Progress on N. Korean nuke issue and possible Korean peace accord increase likelihood of Kim's trip
BEIJING - As China is expected to conduct a major reshuffle of its leadership during the 17th Communist Party Congress next week, attention is focused on whether North Korean leader Kim Jong-il will visit China. Observers who expect Kim to visit China cite a recent geopolitical change in the Northeast Asian region as the primary reason for their view. North Korea is taking steps to disable its Yongbyon nuclear facilities by the end of this year. At the same time, the United States is likely to remove North Korea from its list of state sponsors terrorism. In addition, in the wake of the inter-Korean summit, held earlier this month, discussions are actively underway to establish a peace regime on the Korean peninsula, offering reasonable grounds for a trip by Kim to China.
Photo Exhibition of Koguryo Tomb Mural Paintings Opened
Pyongyang, October 11 (KCNA) -- A photo exhibition of the Koguryo tomb mural paintings was opened at the Korean Central History Museum here on Thursday under the co-sponsorship of the Yonhap News of south Korea and the Kyodo News of Japan. On display at the exhibition hall are photos of Koguryo mural paintings including those in King Kogukwon's Mausoleum (Anak Tomb No. 3) and Tokhung-ri tomb, which are listed as the world's cultural heritages, and those in middle- and big-size tombs in Kangso.
GM to Build Vehicle Testing Ground In China
By REUTERS Published: October 12, 2007 Filed at 2:03 a.m. ET Skip to next paragraph SHANGHAI (Reuters) - General Motors Corp said on Friday it will build a comprehensive vehicle proving ground in China as the Detroit automaker seeks to speed up research and development in the world's second-largest car market. Shanghai General Motors, GM's venture with Shanghai Automotive Co Ltd <600104.SS>, will spend 1.6 billion yuan ($213 million) on a 5.6 square kilometer (2.16 sq mile) testing ground, China's biggest, in the eastern province of Anhui. "The move will help us to accelerate product development
India government and communists step back from brink
Tue 9 Oct 2007, 12:16 GMT By Palash Kumar NEW DELHI (Reuters) - The India government and its communist allies stepped back from the brink on Tuesday, agreeing to meet again this month to resolve a row over a nuclear deal with the United States that threatens to spark a snap election. A fourth meeting of a panel formed to end the face-off between Prime Minister Manmohan Singh's government and the left appeared to make little progress. But both sides came out putting a brave face on what has been a hot-tempered impasse
The deal would mark a milestone in relations between India-U.S. relations, not the best of friends during the Cold War. It would allow India to import U.S. nuclear fuel and reactors, despite having tested nuclear weapons and not signing the Non-Proliferation Treaty. [NPT] [Nuclear deal]\
China Insists on Role In Korea Peace Process
China has made it clear that it is entitled to a role in any summit on replacing the armistice that still halts hostilities on the Korean Peninsula with a permanent peace framework. President Roh Moo-hyun and North Korean leader Kim Jong-il needled China by agreeing to work for a summit of "the three or four parties directly concerned" to declare an end to the war. China is a signatory to the armistice along with the U.S. and the two Koreas. Beijing on Tuesday also reiterated a permanent peace mechanism can only come once North Korea completes the denuclearization process.
India-China Competition Revealed in Ongoing Border Disputes
09 October 2007 et another "useful and positive" round of Sino-Indian boundary negotiations was held on September 24-26 against the backdrop of a general consensus in both capitals that no breakthrough to the territorial dispute could be achieved for a long period of time. Talks for a settlement have now gone on for more than a quarter of a century (since 1981, to be precise) -- with a "big push" given to them by Prime Minister Rajiv Gandhi's visit to China in 1988, the second one by Atal Bihari Vajpayee's sojourn in Beijing in 2003 and a third one by Manmohan Singh's talks with Premier Wen Jiabao in 2005 and President Hu Jintao in 2006 -- yet all were in vain. As a result, the 4,056-kilometer (2,520 miles) frontier between India and China, one of the longest inter-state borders in the world, remains the only one of China's land borders not defined, let alone demarcated, on maps or delineated on the ground. While Indians doubt China's sincerity in border negotiations, Chinese question India's leaders' will and capacity to settle the dispute in a "give-and-take" spirit. [Border war] [Nuclear deal] [China India competition]
Indian Exporters Hit by Surging Rupee
Indian exports, particularly those by small and medium companies, have been hit by the recent surge in the rupee against the dollar. The Farida Group, based in the southern city of Chennai, is one of India's biggest footwear exporters. A large part of its production goes to the U.S. But Farida Group's business has taken a beating due to an 11 percent appreciation in the value of the rupee against the dollar this year.
Burmese rebels accuse India of betrayal
· 34 men in secret trial deny being arms smugglers · Case highlights growing trade links with Rangoon Randeep Ramesh in New Delhi Monday October 8, 2007 The Guardian Thirty-four men who are being tried in secret by India, accused of being arms smugglers, are Burmese anti-junta rebels who were once backed by the Indian army, say human rights activists who are demanding their freedom. The Indian army says the men, who belong to the Arakan ethnic minority that is fighting the Burmese army, were captured by Indian security forces in February 1998, along with a cache of arms and weapons, in the Andaman and Nicobar islands.
New Delhi claimed Operation Leech had smashed a group of gunrunners who had been aiding anti-Indian separatists. However the men say they are Karen National Union (KNU) and National Unity Party of Arakan (Nupa) rebels who were fighting Burma's junta and who had been provided with arms and a sanctuary by India. [Double standards] [Separatism]
China seeks to play part in the peace regime talks
October 08, 2007 The call to end the Korean War formally with a peace treaty and establish a peace regime on the Korean Peninsula may scramble the power balance in the region, and Beijing said over the weekend it wants to be included in the process. However, building a peace regime threatens to be a long and complex process as even the number of nations that will be involved has not yet been decided. The inter-Korean agreement signed last week called for "three to four parties" to be involved in ending the Korean War, referring at a minimum to the two Koreas and the United States.
Other Ollywoods Divert Limelight From Bollywood
By Emily Wax Washington Post Foreign Service Monday, October 8, 2007; Page A11 MUMBAI -- At a recent Bollywood party, where the glitterati were draped in silk saris and the literati were slightly less glamorous, some guests sipped cinnamon mojitos while others bellied up to the sushi bar. All around, there was plenty of movie buzz, but most of it wasn't about Bollywood, India's best-known film industry. Instead, the chatter seemed to be mostly about "Sivaji: The Boss," which was produced by the Tamil-language film industry, Kollywood, one of India's half-dozen regional "ollywoods." The star of "Sivaji," a beer-bellied, double-chinned everyman, goes by the name Rajinikanth. [Diversity]
India holds key in NATO's world view
By M K Bhadrakumar
Summing up the 10-year ties between Russia and the North Atlantic Treaty Organization (NATO), a Russian military analyst wrote, "Relations between the two are a marriage of convenience, where husband and wife live together, often socialize with others as a couple, and show every sign of respect for each other. "At the same time, they sleep in different rooms, and have separate households and personal expenses. Each side is primarily pursuing its interests, and although the couple is formally married, they cannot be called a real family." A portrait of arranged marriages wouldn't unduly perturb Indians. But it would be a sobering thought for Delhi how shockingly brief Russia's dalliance with NATO turned out to be when it rubbed against the realities of life. As NATO steps up its courtship of India, Delhi too will have to think about the kind of relationship it desires. Not surprisingly, when Indian Foreign Minister Pranab Mukherjee and NATO secretary general Jaap de Hoof Scheffer met in New York on September 28, both sides chose to keep their landmark 45-minute meeting on a low key. Washington genuinely seeks a NATO-India partnership. As NATO retools for the 21st century for new missions in Africa and South Asia, and as it advances across the Middle East toward the Indian Ocean, looking for global partnerships (numbering 20 at present), India inevitably figures in its agenda. This became starkly evident last month. [China confrontation]
Firing Up India's Factories
For big manufacturers, the subcontinent is becoming an alternative to China
By Manjeet Kripalani For years, Sriperumbudur was known primarily as the town where Rajiv Gandhi was assassinated by a Sri Lankan suicide bomber in 1991. But these days, the city 25 miles west of Chennai is earning a far less grisly reputation. Alongside well-paved roads flanked by freshly planted trees, scores of glistening factories have popped up, bearing the names of global heavyweights such as cell-phone producers Nokia (NOK ) and Motorola (MOT ) and automaker Hyundai—which now builds some 350,000 cars a year in India. All around Chennai, other industrial parks are filled with the plants of auto-parts manufacturers, leather and textile exporters, and even German über-carmaker BMW. [China India competition]
Yang Hyong Sop Meets Indian Ambassador
Pyongyang, October 5 (KCNA) -- Yang Hyong Sop, vice-president of the Presidium of the DPRK Supreme People's Assembly, met and had a talk with Zile Singh, new Indian ambassador to the DPRK who paid a courtesy call on him, at the Mansudae Assembly Hall on Friday.
'US, Not China, to Dominate 21st Century'
Guy Sorman speaks at a forum hosted by the Institution of Global Economics in Seoul, Thursday. By Yoon Ja-young Staff Reporter The United States will continue to dominate the world, and China is not as threatening as it seems, said Guy Sorman, a world-famous intellectual. ``The U.S. economy has been the leading economy for more than one century now,'' the French writer and columnist said at a forum titled ``Why the U.S. Will Continue to Lead the 21st Century,'' organized by the Institution for Global Economics in downtown Seoul, Thursday. Sorman has written many books that preach the ideals of creativity and modern capitalism. Among his latest books are ``Made in USA'' and ``The Empire of Lies.'' He compared the U.S. economy with that of Europe and pointed out why it will continue to dominate. He defined the U.S. as the land of ``destructive creation.'' ``When the company doesn't work or isn't profitable anymore, it is destroyed and restructured,'' Sorman said. The spontaneous reaction in Europe, on the contrary, would be to protect the company, according to the French intellectual. ``It is easy to get into business, but also easy to go out of business. The bankruptcy law is the key element of flexibility of the U.S. economy, and is a major instrument of the economic dynamism.''[Realignment] [Hubris] [China confrontation]
Tough Stance Is Urged On Nuclear Pact With India
By Glenn Kessler Washington Post Staff Writer Friday, October 5, 2007; Page A06
Key lawmakers have written a bipartisan House resolution that urges a group of nations engaged in nuclear trade to place toughly worded constraints on future nuclear dealings with India. The resolution, introduced late yesterday by Rep. Howard L. Berman (D-Calif.), Rep. Ileana Ros-Lehtinen (R-Fla.) and Rep. Jeff Fortenberry (R-Neb.), is nonbinding. But it has the potential to significantly delay, or even derail, final approval of a nuclear deal that President Bush and Secretary of State Condoleezza Rice consider part of their foreign policy legacy.
Congressional aides said the resolution is aimed at influencing the coming debate within the 45-member Nuclear Suppliers Group (NSG) and a budding controversy in India over the pact. The timing of the legislation also appears linked to next week's visit to India of Mohamed ElBaradei, director general of the International Atomic Energy Agency. [Nuclear deal]
The Buoyant Bush Agenda in Asian Waters
Gang of Four
By VIJAY PRASHAD
In 1954, India's Jawaharlal Nehru told the Parliament that his government opposed military pacts because they converted areas of peace "into an arena of potential war." The South East Asian Treaty Organization (SEATO) was not intended to provide security to the countries of South-East Asia alone. Formed in Manila, SEATO included the US, and because of the presence of this major power, Nehru argued, "it inclines dangerously in the direction of spheres of influence to be exercised by powerful countries. After all, it is the big and powerful countries that will decide matters and not the two or three weak and small Asian countries that may be allied to them."
Indeed, the Indian government led by the Congress Party has moved quite eagerly into an alliance with the Bush agenda. [China confrontation] [India US] [Japanese remilitarisation] [SCO]
Wanted: Chinese Graduates to Babysit Children
Six-year-old Chang Yeon-dong speaks fluent Chinese with accurate pronunciation after only six months of learning Chinese. Daily communication is no problem, and he even understands cartoons in Chinese, all thanks to a babysitter who takes care of him from 4 p.m. to 8 p.m. His mother Kim In-jung (37) fired the former nanny at the end of April and hired Wu, a 38-year-old ethnic Korean from China. The new babysitter's duties are similar, but Wu, an elementary school teacher from Qingdao who came to Korea in 2005 leaving her nine-year-old daughter with her mother, only speaks Chinese when taking care of Chang. In Korea, she has also given private Chinese lessons to college students, who recommended the babysitting job. As China rises, so does the language. Many parents believe early teaching of foreign languages is better for effective acquisition. There have long been Chinese maids in Korean households, but now college graduates or former teachers like Wu are popular employees. Parents seek well-educated domestic [Human rights] [China competition]
The India-US Nuclear Deal at a Crossroads
Praful Bidwai
As the US-India-Japan-Australia-Singapore joint military exercise styled Operation Malabar was conducted in early September, reverberations were felt not only in China, but also in India. The US-India nuclear agreement, driving a nail deep into the Nuclear Non-Proliferation Treaty, has produced sharp debate within Indian politics, including in the ruling coalition, as described by Praful Bidwai. {NPT} [Nuclear deal]
Kim Jong Il Sends Greetings to Chinese Leaders
Pyongyang, September 30 (KCNA) -- General Secretary Kim Jong Il together with President of the Presidium of the DPRK Supreme People's Assembly Kim Yong Nam and Premier of the DPRK Cabinet Kim Yong Il Sunday sent a message of greetings to President of the People's Republic of China Hu Jintao, Chairman of the Standing Committee of the Chinese National People's Congress Wu Bangguo and Premier of the State Council Wen Jiabao on the occasion of the 58th anniversary of the People's Republic of China.
High-Tech Revolution Remaking Rural India
Land Sales Bring Sudden Wealth By Rama Lakshmi Washington Post Foreign Service Monday, October 1, 2007; Page A15
NEEMANA, India -- A chorus of clanging metal and clunking lumber burst the morning air in this village as farmers reclined on jute cots, smoking water pipes and supervising the construction of fancy mansions with marble floors and spiraling columns. Along narrow dirt tracks, buffaloes and tractors jostled for space with shiny new sport-utility vehicles. A farmer in town noted that he had recently bought a "foreign breed" dog, a German shepherd. He said he calls his new pet "Sweetie." The village here in the northern state of Haryana oozes new money. Residents have sold most of their farmland to a private company for the establishment of a special economic zone, one of more than 250 that the Indian government approved last year. Now, the sleepy village of Neemana, known for its wheat and mustard fields, is on the cusp of a field-to-factory shift that is transforming the lives of its people.
Basu dashes hopes, says no compromise
30 Sep 2007, 0121 hrs IST,TNN KOLKATA/NEW DELHI: Poll clouds seem to have darkened further with CPM veteran Jyoti Basu on Saturday ruling out the possibility of any compromise on Left opposition to the US-India nuclear deal. Endorsement of the hard line on the deal is likely to quicken poll calculations of the UPA as the Left axe begins to descend on the Manmohan Singh government. Government sources responded to Basu's remarks by ruling out any backtracking on the deal, and indicating that negotiations with IAEA for safeguards might take place any time after mid-October. [Nuclear deal] [India US]

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SEPTEMBER 2007

What's Propelling Korea's Growth
Forget electronics. Heavy industry exports to China are doing the job
Investors in South Korea's two best-known blue chips have scant reason for cheer these days. The leading icon of Korean corporate success, Samsung Electronics, appears headed for a third straight year of falling profits as a result of the crash in memory-chip prices. And growth at Hyundai Motor Co. has stalled as Korea's surging currency has erased most of the automaker's cost advantage vis-à-vis its Japanese rivals.
Time to bail out of the Korean stock market? Investors don't seem to think so. The Seoul exchange's benchmark KOSPI index has surged 34% so far this year despite the U.S. credit crunch. The chief attraction: Korea's steel mills, shipbuilders, petrochemical operations, and other smokestack industries. Shares of petrochemical producer LG Chem Ltd. and steelmaker Posco have more than doubled. And Hyundai Heavy Industries Co. (the world's largest shipbuilder, which split from Hyundai Motor Co in 2002) has tripled. Samsung's shares, meanwhile, are down by 13% this year and Hyundai Motor's are up just 5%. "Forget about the Digital Era and fancy marketing," says Park Kyung Min, chief executive at Seoul-based fund manager Hangaram Investment Management. "It's all China and emerging markets." [China market]
Unilever Looks to Recover Lost Indian Glory
As competition heats up, India's top consumer-products company woos affluent shoppers with global brands like Dove, while cooking up its foods biz
by Nandini Lakshman
The middle-aged Briton strolling the aisles and checking out the products doesn't attract much notice from other shoppers in Mumbai's Hypercity, the India hypermarket chain. That's how Douglas Baillie likes it. Baillie, the managing director of Hindustan Unilever, India's premier consumer-products company, wants to see how his products are stocked, what consumers are buying, and how shoppers are reacting to competitive brands. It's primary market research at its most elemental, and it's best done incognito. Hindustan Unilever has traditionally relied on small traders and mom-and-pop corner stores to retail its products. But India's recent retail boom has created large stores and malls, so the company wants to make sure it's in with the new marketing crowd. Hence Baillie's Hypercity visits, and the calls he makes on the headquarters of the big retail chains.
Pyongyang Depends Too Much on China: Kim
Staff Reporters NEW YORK _ Former president Kim Dae-jung said Tuesday that South Korea, the United States and international organizations need to invest in North Korea to attain a balance against China. Kim emphasized that once North Korea completes its denuclearization, the international community must step up and start investing in North Korea's faltering economy. "Once the North Korean nuclear crisis resolved, international organizations such as the International Monetary Fund and Asia Development Bank, enterprises of the United States and the Western world should advance into North Korea together with South Korea," he said in a speech to a gathering here organized by Korea Society, a New York-based non-profit group dedicated to the promotion of the South Korea-U.S. relationship. ``I believe we should expedite our entry into North Korea so as to attain balance against China,'' he said. ``China is extensively involved in the North Korean economy.'' [China confrontation]
Airlines brace for bloodbath over Shanghai
By Nelson Alcantara l Special to eTN If it were a boxing match, Singapore Airlines would have been declared the winner and Cathay Pacific the loser for backing down on a fight. But, the Centre for Asia Pacific Aviation is not ready to call the winner just yet. In a nutshell, it is saying there are many rounds ahead. In light of the recent events in Shanghai aviation, Sydney-based aviation research group Centre for Asia Pacific Aviation (CAPA) has said it is too early for airlines to vie for the coveted landing rights at Beijing’s International Airport.
According to CAPA, Asia Pacific aviation has come within a whisker of a massive power struggle between two of its most influential airlines, Cathay Pacific and Singapore Airlines, because of a conflict over Shanghai. “Had Cathay Pacific proceeded with plans to team up with China National Aviation Holding Co (the parent of Air China) to try to block Singapore Airlines’ (SIA) bid for China Eastern, the region would have entered a whole new level of gloves-off competition,” CAPA stated in a statement released today. But even with Cathay backing down from the face-off “for reasons that are yet to emerge,” the Sydney-based aviation group ascertains that that the “new competitive era has now dawned, spurred by China’s massive growth and even bigger potential.”
Outsourcing Works So Well, India Is Exporting Jobs
By ANAND GIRIDHARADAS Published: September 25, 2007 MYSORE, India - Thousands of Indians report to Infosys Technologies' campus here to learn the finer points of programming. Lately, though, packs of foreigners have been roaming the manicured lawns, too.
Many of them are recent American college graduates, and some have even turned down job offers from coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: fly here for six months of training, then return home to work in the company's American back offices.
India is outsourcing outsourcing.
One of the constants of the global economy has been companies moving their tasks - and jobs - to India. But rising wages and a stronger currency here, demands for workers who speak languages other than English, and competition from countries looking to emulate India's success as a back office - including China, Morocco and Mexico - are challenging that model.
Such is the new outsourcing: A company in the United States pays an Indian vendor 7,000 miles away to supply it with Mexican engineers working 150 miles south of the United States border
NK to Attend Shanghai World Expo in 2010
SHENYANG, China _ North Korea has expressed an intention to attend the Shanghai World Expo in 2010, Chinese media reported Sunday. North Korean Prime Minister Kim Young-il has sent a letter to Chinese Premier Wen Jiabao, saying that his country will attend the Expo, scheduled to run from May 1 to Oct. 31, 2010, according to the reports.
Dell to Sell PCs Through China Retailer
By THE ASSOCIATED PRESS Published: September 24, 2007 Filed at 3:53 a.m. ET BEIJING (AP) -- Dell Inc. announced a deal Monday to launch a retail presence in China by selling computers through the country's biggest chain of electronics stores as it struggles to capture a bigger share of the booming market. The deal extends Dell's strategy of expanding beyond its traditional Internet- and phone-based sales model into retail to cope with competition from Hewlett-Packard Co. and other rivals. Dell also has targeted China with a low-cost PC unveiled in March and aimed at rural customers.
Mattel Official Delivers an Apology in China
Andy Wong/Associateed Press Thomas A. Debrowski, a Mattel executive, left, with Li Changjiang, China's product safety chief. Top of Form Bottom of Form * Top of Form E-MAIL Bottom of Form * PRINT * REPRINTS * SAVE * SHARE o DIGG o FACEBOOK o NEWSVINE o PERMALINK
By LOUISE STORY Published: September 22, 2007 Mattel, the world’s largest toy maker, apologized in China yesterday for its recalls of nearly 20 million Chinese-made toys this summer. Skip to next paragraph Multimedia Audio Slide Show Mattel's Wake-Up Call (Aug. 29, 2007) Related Times Topics: Consumer Product Safety According to news accounts, Thomas A. Debrowski, Mattel’s executive vice president for worldwide operations, apologized to China for harming the reputation of Chinese manufacturers. American politicians and others reacted in turn with criticism that Mattel was kowtowing to China, where the company manufactures 65 percent of its toys, many in partnerships with Chinese vendors. [Reassertion]
Mattel apologises to 'the Chinese people'
By Geoff Dyer in Shanghai, Matthew Garrahan in Los Angeles and Daniel Pimlott in New York Published: September 21 2007 13:13 | Last updated: September 22 2007 01:45 Mattel was forced to deliver a humiliating public apology to 'the Chinese people' on Friday over the damaging succession of product recalls of China-made toys that the US toymaker has announced in recent months. In a carefully stage-managed meeting in Beijing with a senior Chinese official, which, unusually, was open to the media, Thomas Debrowski, Mattel's executive vice-president for worldwide operations, read out a prepared text that played down the role of Chinese factories in the recalls. "Mattel takes full responsibility for these recalls and apologises personally to you, the Chinese people, and all of our customers who received the toys," Mr Debrowski said. [Reassertion]
Mumbai's Moment
By ALEX KUCZYNSKI Published: September 23, 2007 On an April evening in pre-monsoon Mumbai, India, about 600 of the city's glitterati gathered in the ballroom of the Taj Mahal Hotel Palace and Tower for a fashion show. Waiters in white jackets passed flutes of Champagne and trays of caviar. Like any other large city, Mumbai has its highly visible reigning class, the wealthy people who want to be seen - in contrast to the wealthy people who will do anything to remain unseen. This night's audience was composed of the former group, dressed in their latest couture purchased on their last jaunts to Europe, professionally lacquered and coiffed, turning their angular chins and dermatologically plumped lips at pleasant angles for the photographers there to capture Mumbai's blossoming beau monde.
India's Long-Established Ties With Iran Straining Alliance With U.S.
By Rama Lakshmi Washington Post Foreign Service Thursday, September 20, 2007; Page A15 NEW DELHI, Sept. 19 -- India's long-standing ties with Iran appear to be threatening the beleaguered nuclear energy deal between Washington and New Delhi and, more broadly, their growing strategic alliance. The Bush administration has long expressed concern regarding India's relations with Iran and its reluctance to help curtail Iran's nuclear program. On Wednesday, Richard A. Boucher, assistant secretary of state for South Asia, made clear that the administration is still looking for answers from New Delhi.
"The Indian government is very well aware of the concerns of India's military relationship with Iran. What we are trying to do is for everybody to understand the facts of the matter," he said in Washington. Boucher's remark came as the Indian government is battling domestic opposition to the U.S.-India nuclear deal. While the agreement will assure India uninterrupted nuclear supplies from the United States, critics have accused Prime Minister Manmohan Singh of giving in to various U.S. demands, compromising India's sovereignty. For opponents of the deal, Boucher's statement served as further evidence of U.S. meddling.
China, India to hold meeting on border issue
+ - 20:05, September 18, 2007 China and India will hold the 11th meeting between the special representatives to discuss the border issue from Sept. 24 to 26 in Beijing, according to the Chinese Foreign Ministry spokesperson on Tuesday. Special Representative of India and National Security Advisor M K Narayanan will attend the meeting at the invitation of the Chinese Vice Foreign Minister Dai Bingguo, who will head the Chinese delegation, said spokesperson Jiang Yu at a regular press conference. "China will work with India, in accordance with the political guideline reached by the two countries, to find a reasonable, fair and all-accepted solution (on the border issue) through consultations," Jiang said. She said China would like to make joint effort with India to push forward strategic and cooperative partnership.
Military, economic ties focus of Sino-Korea dialogue
September 19, 2007 Young Koreans and Chinese met at the first Korea-China Dialogue on the Future. About 20 scholars from the two countries participated in the two-day event, which opened Monday at the Korea Chamber of Commerce and Industry in Seoul. The dialogue is sponsored by the JoongAng Ilbo, together with the Chinese Academy of Social Science and Posco Research Institute. The discussions revolve around issues in the political environment of East Asia in the 21st century, including peace on the Korean Peninsula. While the participants shared many views and ideas, on certain topics they stood on different sides. The dialogue is organized to focus on five main areas ? politics, military issues, economics, culture and the Northeast Project of the Chinese Academy of Social Sciences. The biggest disagreement was over military issues. Participants agreed that the two countries have achieved progress in their relationships, but not where the military is concerned. "Military diplomacy between Korea and China is still on the level of simple exchanges," said Ha Do-hyeong, a professor at the National Defense University. "even that mere exchange is not balanced." The Korean defense minister visited China officially four times, while his counterpart in China has made only two visits here, he pointed out. The cause of estrangement was viewed differently by the two countries. Wang Yi-sheng, a researcher at the Chinese People's Liberation Army, said, "Korea, dependent on U.S. forces, deploys military policies based on a Korea-U.S. alliance. This is blocking the exchange between China and Korea."
High-tech growth faster in China than in Korea
September 19, 2007 Economists in Korea and China said Korea still has an edge over China in manufacturing technologies, but they predicted the gap is going to narrow quickly as China's industry develops. In a seminar on the development of manufacturing in Korea and China, Youn Woo-jin, vice president of research at the Korea Institute for Industrial Economics and Trade, or KIET, said China has been catching up fast with Korea in high-technology exports. [China competition]
Kim Yong Nam Receives Credentials from Indian Ambassador
Pyongyang, September 18 (KCNA) -- Kim Yong Nam, president of the Presidium of the Supreme People's Assembly of the DPRK, received credentials from Zile Singh, Indian ambassador e.p. to the DPRK, at the Mansudae Assembly Hall today. On hand were Kung Sok Ung, vice-minister of Foreign Affairs, and others and staff members of the Indian embassy here. After receiving the credentials, Kim Yong Nam conversed with the new Indian ambassador.
Former S. Korean president urges Seoul, Washington to tap into N.K. resources
WASHINGTON, Sept. 18 (Yonhap) -- Former South Korean President Kim Dae-jung on Tuesday urged his government and the United States to tap quickly into North Korea's economic resources, suggesting that otherwise, China may gain a competitive edge in the area. Speaking at the National Press Club in downtown Washington, the former dissident-turned-president said the upcoming inter-Korean summit should be of great interest to both South Korea and the U.S. because of Pyongyang's economic potential.
Iran, China in energy deal, annual trade to hit US$20 billion (€14.4 billion), minister says
The Associated Press Published: September 14, 2007 Size BEIJING: Iran's interior minister said Friday his country has finalized oil and gas projects with China, adding that two-way trade was on target to hit US$20 billion (€14.4 billion) this year among robust commercial ties. Speaking to reporters after meetings in Beijing, Mostafa Pour Mohammadi gave few details but indicated progress had been made. "We have many big projects on the table," Pour Mohammadi said. "And in my talks and sessions we finalized our parts and projects in oil fields, gas fields and investing and transporting of fuel between the two countries," the minister said. Economic ties covered areas ranging from power station construction and mining to the building of subways and automobile plants. "This year, trade will hit US$20 billion (€14.4 billion) and will develop in other fields," Pour Mohammadi said.
Wu Yi: China's Enforcer Of Last Resort
Burned by the product safety crisis, Beijing turns to a battle-tested veteran
After this summer's wave of bad news about China's product safety, Beijing finally decided it was time to patch things up. So the leadership did exactly what it has done in every tough situation China has faced over the past decade or so: It called on 68-year-old Vice-Premier Wu Yi.
Her gentle, friendly demeanor can be deceiving: The highest-ranking woman in China's Communist Party hierarchy is Beijing's enforcer of last resort. In recent years, she has cleaned up the country's image after the SARS crisis, overseen the response to the AIDS epidemic, led tough trade negotiations with Washington, and shored up the mainland's shoddy record on intellectual-property rights. And now she's head of a new high-level food, drug, and product safety team. [Country image]
Chinese Envoy Gave N. Korea Data to South, Officials Say
Diplomat Removed, Accused Of Betraying State Secrets By Edward Cody Washington Post Foreign Service Thursday, September 13, 2007; Page A12 BEIJING, Sept. 12 -- For years, Ambassador Li Bin was China's go-to diplomat for the tense Korean Peninsula. After studies in North Korea, Li had served several tours in the Chinese embassies in Pyongyang and Seoul. Fluent in Korean and gregarious in nature, he also struck up an unusually personal relationship with Kim Jong Il, the secretive North Korean leader. It turns out, according to knowledgeable Chinese officials, that Li was also a resource for the South Koreans, who exploited his insider knowledge about Kim and the closed-door North Korean government. During a tour as China's ambassador to Seoul from 2001 to 2005, the officials said, Li regularly provided the South Koreans with information on Kim, the North and China-North Korea relations. Li's willingness to talk got him arrested in Beijing late last year for betraying state secrets, officials said, but the exact nature of Li's alleged transgressions remained opaque. Now, after months of interrogation, his case is being treated at the Foreign and State Security ministries as a major breach. It is believed to be the most damaging state secrets case in China since 1994, when an army general was discovered to be a spy for Taiwan.
Korea Outclassed by China in 'Art of War'
A classic has recently captivated not only universities and businesses but also political circles and the military in China. It's "The Art of War", a military treatise written during the 6th century BC by Sun Tzu. Prominent universities like Peking University, Tsinghua University and Fudan University last year opened courses called "The Art of War and Business Strategy" and similar titles as required subjects in Chinese Studies classes taught to CEOs.
More notable is the fact that Chinese leaders personally apply, with success, the principles of the book at home and abroad. A case in point is the Asia Pacific Economic Cooperation that closed Sunday in Sydney. The U.S., Japan and Australia held a security strategy summit, the first of its kind, in a bid to build a "net" encircling China. Chinese President Hu Jintao meanwhile didn't denounce the meeting or even show much concern about it. Instead, he secured a promise from Australia, a spoke of the trilateral alliance, to hold an annual security dialogue with China at a level identical with that of the U.S., and to supply China with one million tons of natural gas over the next 20 years
Yang Hyong Sop Meets Chinese Delegation
Pyongyang, September 10 (KCNA) -- Yang Hyong Sop, vice-president of the Presidium of the DPRK Supreme People's Assembly, met and had a friendly talk with the delegation of the China Association for International Friendly Contact led by its Vice-President Shen Weiping at the Mansudae Assembly Hall today. Present there were Jon Yong Jin, vice-chairman of the Korean Committee for Cultural Relations with Foreign Countries, and Xing Haiming, Chinese charge d' affaires ad interim in the DPRK.
Paulson Urges Restraint in Policy on China Trade
By STEVEN R. WEISMAN Published: September 11, 2007 WASHINGTON, Sept. 10 - Treasury Secretary Henry M. Paulson Jr. warned Monday that enacting legislation aimed at punishing China over its economic policies could jeopardize future growth and unsettle markets already on edge over the severe difficulties in the American housing and mortgage sector. "I really do believe we are at an inflection point here," Mr. Paulson said in an interview. "When we look at taking unilateral actions aimed at another nation, this can have enormous repercussions to our economic well-being. You know, we're playing with fire." Mr. Paulson said he remained confident that the American economy was resilient enough to survive recent market turmoil. But he said he feared Chinese retaliation and a loss of China as an engine of global growth and a market for American exports. [China confrontation]
US exercising India's military muscles
By Praful Bidwai NEW DELHI - India's hosting of large-scale military exercises involving five countries led by the United States has triggered spirited protests by left-wing parties that prop up the country's ruling coalition. The naval exercises, which began on Tuesday, are the largest and the most complex that India has ever participated in and feature as many as 25 ships from India, the US, Australia, Japan and Singapore.
The war games involve three aircraft carriers, two of them American and one Indian, and a nuclear-powered submarine, besides a host of destroyers and frigates. Warplanes, based on the carriers and on land, will also play a major role in the exercises, which include "close air combat". [India US] [Joint US Military] [China confrontation]
Pipeline Politics: India and Myanmar
Gideon Lundholm 10 September 2007 ecent developments in the gas field projects of Myanmar have served to highlight the intense resource diplomacy that is ongoing in the region. The government of Myanmar withdrew India's (under the Gas Authority of India Limited or GAIL) status of "preferential buyer" on the A1 and A3 blocks of its offshore natural gas fields and instead declared their intent to sell the gas to PetroChina. The offshore gas fields of the Shwe project in the Bay of Bengal have estimates of 4.8 trillion cubic feet (TcF) for the current blocks with more exploration ongoing. The controlling interests in the two blocks are Daewoo International (60 percent), O.N.G.C. Videsh Ltd (20 percent), GAIL Ltd (10 percent) and Korea Gas Corporation (10 percent). The most viable of the proposed pipeline routes for moving the gas to India would have proceeded through Myanmar's Arakan state before entering India's Mizoram and Assam provinces and finally terminating in West Bengal at the proposed Jagdishpur-Haldia distribution line.
It is likely that joint military initiatives in the border region will be initiated and more direct military aid like the proposed light attack helicopter sales from India to Myanmar will continue. Transfers of military equipment have increased significantly in the last two years between India and Myanmar, while joint counter-insurgency operations have been proposed, which would see an unprecedented level of cooperation, and therefore much higher counter-insurgency activity, between the two countries [Double standards] [Separatism]
China’s cyber army is preparing to march on America, says Pentagon
The Times September 8, 2007
Tim Reid in Washington Chinese military hackers have prepared a detailed plan to disable America’s aircraft battle carrier fleet with a devastating cyber attack, according to a Pentagon report obtained by The Times. The blueprint for such an assault, drawn up by two hackers working for the People’s Liberation Army (PLA), is part of an aggressive push by Beijing to achieve “electronic dominance” over each of its global rivals by 2050, particularly the US, Britain, Russia and South Korea. China’s ambitions extend to crippling an enemy’s financial, military and communications capabilities early in a conflict, according to military documents and generals’ speeches that are being analysed by US intelligence officials. Describing what is in effect a new arms race, a Pentagon assessment states that China’s military regards offensive computer operations as “critical to seize the initiative” in the first stage of a war. [Cyberwar] [Double standards]
Farming is 'sensitive' in India deal
September 08, 2007 Korea aims to ensure a measure of protection for agricultural products if an economic partnership agreement is signed with India, the government said yesterday. The Ministry of Agriculture and Forestry said every effort will be made to include agriculture in the batch of "sensitive" items that can be excluded from an open trade arrangement. The two sides are to hold the next round of Comprehensive Economic Partnership Agreement talks in Seoul early next week. [FTA] [Protectionism]
Jobs Abroad Support 'Model' State in India
By JASON DePARLE Published: September 7, 2007 TRIVANDRUM, India - This verdant swath of southern Indian coastline is a famously good place to be poor. People in the state of Kerala live nearly as long as Americans do, on a sliver of the income. They read at nearly the same rates.
With leftist governments here in the state capital spending heavily on health and schools, a generation of scholars has celebrated the "Kerala model" as a humane alternative to market-driven development, a vision of social equality in an unequal capitalist world. But the Kerala model is under attack, one outbound worker at a time. Plagued by chronic unemployment, more Keralites than ever work abroad, often at sun-scorched jobs in the Persian Gulf that pay about $1 an hour and keep them from their families for years. [Remittances] [Diaspora]
China Steps Up Efforts to Cleanse Reputation
By DAVID BARBOZA Published: September 5, 2007 SHANGHAI, Sept. 4 - In recent weeks, Beijing has begun its most concerted global public relations offensive since the outbreak of SARS, the severe acute respiratory syndrome. In 3rd Recall, Mattel Says More Toys Include Lead Diplomats and government officials are holding news conferences on food and product safety. They are showing contrition in high-level talks with Western officials and offering tours of government safety laboratories to foreign journalists. But China has also struck back at critics who have called Chinese goods shoddy or dangerous, and highlighted problems with the exports of other nations. And, in its latest move to respond to a series of recalls and product safety scandals, Beijing introduced a new food and toy recall system last week and announced a "special war" to crack down on poor-quality products and unlicensed manufacturers. [China competition][Image]
Asians Say Trade Complaints Bring Out the Bully in China
By Ariana Eunjung Cha Washington Post Foreign Service Wednesday, September 5, 2007; Page A01 JAKARTA, Indonesia -- After hearing about dangerous Chinese products elsewhere, Indonesia this summer began testing popular Chinese-made items on its own store shelves. What it found has added to the list of horrors: mercury-laced makeup that turns skin black, dried fruit spiked with industrial chemicals, carcinogenic children's candy. [China confrontation] [China competition] [Image]
Chinese military hacked into Pentagon
By Demetri Sevastopulo in Washington and Richard McGregor in Beijing Published: September 3 2007 19:00 | Last updated: September 3 2007 20:53 The Chinese military hacked into a Pentagon computer network in June in the most successful cyber attack on the US defence department, say American officials. The Pentagon acknowledged shutting down part of a computer system serving the office of Robert Gates, defence secretary, but declined to say who it believed was behind the attack. [Cyberwar] [China confrontation] [Espionage] [Double standards]
'China-Free' Movement Sneaks Into Food Industry
By Jane Han Staff Reporter Next to the calories and nutrition details on the side of a food package, you may soon be looking at the words ``China-Free,'' as the labeling movement that debuted in the U.S. is quietly trickling into the local food and beverage industries. The move, which was first triggered in June by a Utah-based health food company for consumer awareness, has stirred controversy that it may promote racism. But a rising number of American businesses, consumers and interest groups are welcoming the labeling method as Chinese food and other imports have recently been headline news for their unacceptable health and safety standards. [China confrontation] [China competition]
China’s rise and East Asian export performance: is the crowding-out fear warranted?
Prema-chandra Athukorala*
The rise of China as a major trading nation is one of the most momentous developments in the post-Second World War era, surpassing even the stunning rise of Germany and Japan. [China competition]
China’s Korean Autonomous Prefecture and China-Korea Border Politics
Andrei Lankov
By Chinese standards, the city of Yanji is rather small, with a population of nearly 400,000. About a third of them are ethnic Koreans: Yanji is the capital of Yanbian autonomous prefecture in the northeastern province of Jilin, the ethnic home of the large Korean minority in the area. The prefecture is close to the borders of North Korea and Russia.
Trade with U.S., Japan slows, China steps up
September 03, 2007 Korea's trade dependence on the United States and Japan dropped in the first seven months of this year from a year ago, while its trade with China is increasing, officials said yesterday.
Nepal: harmonious dragon-elephant dancing will make contributions to peace and stability
H.E. Zheng Xianglin, Ambassador of the People’s Republic of China Q.1 Nepal-China relations have withstood remarkably the vicissitudes of history, including many dramatic political changes in both countries in recent times. How confident are you that it will continue on an even keel in the days or years ahead? Ambassador: China and Nepal are close neighbors with a long history of friendship. Since the establishment of diplomatic relationship in 1955, the China-Nepal relations have stood the test of time and changes in the world and grown healthily and smoothly [Himalayas] [China India relations]
India's appetite for arms draws world's defense contractors
By Heather Timmons and Somini Sengupta Published: August 30, 2007
NEW DELHI: India is developing a military appetite to match its growing economic power, and defense contractors are scrambling to profit. As the country overhauls its largely Soviet-era military arsenal, it could spend as much as $40 billion over the next five years purchasing everything from artillery to submarines to tanks, analysts estimate. In particular, American defense contractors are now aggressively pursuing bids after decades of Cold War alliances and sanctions kept India off limits. In terms of "potential for growth, India is our top market," said Richard Kirkland, the Lockheed Martin president for South Asia. [Proliferation] [Arms sales]

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AUGUST 2007

S. Korean ambassador lambastes Samsung's 'sandwich theory'
Ambassador argues that, far from being caught in the middle, S. Korea will rise to the top
BEIJING - South Korean Ambassador to China Kim Ha-joong has strongly criticized the so-called "sandwich theory," a warning on the South Korean economy, of Samsung Group Chairman Lee Kun-hee. Chairman Lee observed a crisis in the South Korean economy earlier this year by saying: "Korea is being sandwiched by fast-growing China and technologically-advanced Japan." Then in June, he said that "The nation's economic situation is worsening." [China competition] [Sandwich]
Sandwich Theory Is Beneficial, Not Threatening: SERI Chief
By Jane Han Staff Reporter JEJU ISLAND _ Contrary to popular belief that the ``sandwich theory,'' which describes the country's position between Japan and China, is a threat to the economy, the head of a local think tank said Thursday that the phenomenon is exaggerated and may actually become beneficial. ``It's not Korea that gets hit from the China boom, but countries like Indonesia and other Southeast Asian countries as they got their attention stolen from potential global investors,'' Jung Ku-hyun, president of the Samsung Economic Research Institute (SERI), said during a speech at a summer CEO forum hosted by the Korea Chamber of Commerce & Industry. He stressed that although China is speeding up in terms of technology, there's still a long way to go before it hones global competitiveness. ``Korea has reaped many benefits for the 15 years since it established diplomatic ties with China,'' Jung said, adding that unlike the up and coming China, Japan is a withering leaf. [Sandwich]
Firms Struggle to Sharpen Competitiveness
By Ryu Jin Staff Reporter Large business groups in South Korea are struggling to further enhance their competitive edge by cutting basic costs, exploring new business items and making management more efficient, as the corporate environment gets worse amid high oil prices and unfavorable exchange rates. Leading the van are the nation’s four largest business conglomerates, including Samsung Group, which have fortified their ``emergency systems’’ for their competitiveness in the coming years. Last Wednesday, Samsung Group unveiled its new strategies to heighten its competitive power, which largely focused on the development of new growth engines and reprioritization of investment. Samsung said it would make strenuous efforts to develop future growth engines, acquire more global bases, make weak businesses more efficient and reduce various costs and expenditures. Sources inside the group indicated that such plans in fact came as contingency measures to address unfavorable external conditions like oil prices and the strong won and tackle difficulties stemming from a gloomy semiconductor market where Samsung has so far made huge profits. Samsung’s moves to ``tighten its belt’’ and ``look for other things to eat’’ actually came on the heels of Group Chairman Lee Kun-hee’s remarks, which caused jitters in and outside the group. ``Not only Samsung but the whole country would face greater difficulties in five or six years unless they watch out now,’’ he said, warning that the Korean economy is ``sandwiched’’ between more dynamic neighbors such as Japan and China. [Sandwich]
‘Korean Textile Firms Lack Brand’
By Jane Han Staff Reporter Although local textile businesses have exceptional production skills, they must develop their original brands overseas to gain a sharper competitive edge among global competitors after the Korea-U.S. free trade deal takes effect, said a visiting chairman of one of the largest fabric dyeing and finishing companies in the United States.
``Korean makers are talented with preciseness, speed, design and responsibility'' Chang Jung-hun, chairman of USDF, said in a Korea Times interview. ``But they must now explore introducing their own brands to the U.S. market, instead of producing for others.'' Chang said the local textile industry is no exception to the ``sandwich'' phenomenon, as many American buyers are relying on China for low-end materials and Italy for top quality. [Sandwich] [Brand]
Hynix CEO Refutes `Sandwich' Theory
Kim Jong-kap, CEO of Hynix By Cho Jin-seo Staff Reporter China's emergence as a major economic power should not be viewed as a threat but a blessing to Korean industries, said Hynix Semiconductor CEO Kim Jong-kap, refuting the ``sandwich crisis'' theory raised by Samsung Chairman Lee Kun-hee. Kim said that worry that Korea is losing its steam between high-tech Japan and low-cost China is exaggerated. He also criticized Korean businessmen in general, saying they are isolating themselves from the outside world, unable to communicate properly. [Sandwich]
Lee Warns of `Sandwiched Korea'
Lee Kun-hee By Kim Tae-gyu Staff Reporter Samsung Group Chairman Lee Kun-hee warned again that the nation is ``sandwiched'' between Japan and China and things are getting worse. [Sandwich
South Korea Torn Between Japan, China in Trade
By Ryu Jin Staff Reporter South Korea is getting more and more ``sandwiched’’ between its neighboring countries, as its trade deficit with Japan is expanding while its trade surplus with China is shrinking in recent years, the latest statistics showed Monday. According to the Ministry of Commerce, Industry and Energy and the Korea International Trade Association, South Korea’s trade deficit with Japan in the first four months of this year amounted to $10.06 billion (9.37 trillion won), up 20.5 percent from $8.35 billion in the same period last year. [Sandwich]
Samsung??s Lee Warns of Economic Trouble
2007-03-09 18:31:00 Cho Jin-seo Samsung Group chairman Lee Kun-hee listens to reporters as he attends a meeting of the Council for the Korean Pact on Anti- Corruption and Transparency at Kim Koo Museum in Seoul, Friday. The meeting featured several conglomerate leaders including Lee and LG Group Chairman Koo Bon-moo as well as South Korean President Roh Moo-hyun. /Yonhap Samsung Group chairman Lee Kun-hee said that not only Samsung, but the economy of the nation as a whole could find itself in a ``chaotic situation???? in a few years amid fiercer global competition.
Lee tends not to be outspoken in public, but South Korea??s richest man has often made prophetic remarks regarding Samsung and South Korea. In January, he expressed worries that the Korean economy is in a dire situation as it is being ``sandwiched???? between high-tech Japan and rapid-developing China. [Sandwich]
South Korea Losing Ground in High-Tech Goods Abroad
2007-03-28 20:38:08 Park Hyong-ki Korea is losing its competitive edge in exporting advanced technology goods, as fast growing economies such as China, India and other Southeast Asian nations are becoming dominant competitive exporters. Overseas sales of Korea??s high-tech goods have been dropping since 2002, said the Korea International Trade Association (KITA) yesterday. According to the Organization for Economic Cooperation and Development, such goods refer to electronic parts, computers, and aerospace, information and communications technology products. Korea??s high-tech commodities accounted for 35.4 percent of the total $162.5 billion sales abroad five years ago. But that percentage dipped to 30.6 percent last year when Korean exports achieved a record high of $325.5 billion, making it the world??s 11th largest exporter. [Sandwich] [India competition]
Hyundai Chief Concerned Over ??Sandwich?? Situation
2007-03-16 18:26:30 Hyundai Motor Chairman Chung Mong-koo, who was recently found guilty of embezzlement and other crimes, said Friday that the automaker and its affiliates need to find ``different growth engines???? to survive challenges from leading Japanese and up-and-coming Chinese rivals. ``Unlimited competition is continuing in the global auto industry and it's difficult for us to gauge tomorrow's winner,???? the 69-year-old Chung told shareholders of Kia Motors, a Hyundai affiliate. ``Japanese frontrunners are increasing their lead against us, while Chinese latecomers are catching up at a faster pace,???? Chung said.
The remark by Chung came a week after Samsung Group Chairman Lee Kun-hee gave a similar warning. On Feb. 9, Lee, whose image has also been tainted by a series of legal disputes involving illicit father-to-son wealth transfer claims, said Samsung Electronics could face a ``chaotic situation???? in five or six years, citing falling profitability in key business units including semiconductors and mobile phones. At that time, Lee said Samsung is being ``sandwiched???? between high-tech Japanese and labor-cheap Chinese rivals. [Sandwich]
Korea Sandwiched in Four Areas’
By Lee Hyo-sik Staff Reporter 04-20-2007 21:14 ‘ South Korea needs to find ways to generate sustainable growth as the world’s 11th largest economy is increasingly sandwiched between developed and developing economies. Hisashi Ohno, head of the Nomura Research Institute’s Seoul branch, said yesterday that Korea has recently been cornered by other major economies, particularly by China and Japan, in areas of technology, corporate earnings, market share and the competitiveness of the high-tech industry. [Sandwich]
Economic Warnings Are More Than Cries of 'Wolf'
Commerce, Industry and Energy Minister Kim Young-ju said, “People who are overly concerned about our economic situation and are bent on making exaggerated warnings and critical comments aren’t helping anyone.” He was referring to recent comments by Samsung Group chairman Lee Kun-hee and other prominent businesspeople who have voiced their concerns over Korea’s economic situation, sandwiched between Japan in the lead and China catching up from behind. Kim said, “Such concerns are nothing new. Ten years ago, the consulting company Booz Allen laid out the ‘nutcracker’ theory, which is no different than the ‘sandwich’ theory.” He was saying that the latest concerns were exaggerated, since Korea is still intact 10 years after the warnings that its economy was being squeezed to death. In the 10 years since the Booz Allen warning, Korea’s textile, clothing, toy and other light manufacturing industries, as well as many electronics products, such as TVs, VCRs and MP3 players, have been overtaken by Chinese products. [Sandwich]
Korean Trade Squeezed by Big Neighbors
The year’s catchword has it that the Korean economy is dangerously “sandwiched” between economic giants China and Japan, much as the Chosun Dynasty was sandwiched between world powers. Figures suggest that is certainly true for Korea’s foreign trade. In late April, Korea's trade surplus with China was 17 percent lower than last year, while its trade deficit with Japan widened more than 20 percent. According to the Ministry of Commerce, Industry and Energy, Korean exports to China stood at US$24.79 billion between January and April and imports from China at $19.53 billion, registering a trade surplus of $5.27 billion, down 16.8 percent from the corresponding period of last year. Korea's trade surplus with China took a downturn last year for the first time in five years, and the downward trend continues. [Sandwich]
In Manufacturing, Third Place is Close to Last Place
Two subjects are the main topics of conversation among Korean manufacturers these days: "number three" and "four kinds of sandwiches." Number three refers to Korea's spot below the world's first- and second-ranking countries. The four sandwiches refer to the four disadvantages of the Korean manufacturing sector, which is sandwiched between China and Japan. The CEO of a local conglomerate told the following story. His company ranks third in the world this year in terms of product sales. Every one of his employees should be in high spirits, but in reality things aren't at all rosy. "We still have a long way to go before we can reach the top spot, and we're not even sure if we can maintain our current standing," he said. "We need better technology to rank first or second in the world, but the domestic technology base is too weak." [Sandwich]
The mist lifts over China's sky-high railway
By Eve Cary b For the Chinese, the ambitious railway between Qinghai and Lhasa in Tibet - now a year old - represents both a triumph of Chinese technology and the realization of "father of modern China" Sun Yat-sen's dream to link the East to the resource-rich West. The Chinese have provided a number of justifications for the project, including aiding development in the West, bringing economic benefits to Tibet, and improving the Tibetan quality of life. To critics, these justifications are seen as an unconvincing cover-up for China's true intentions for the railway: to homogenize and colonize Tibet while stripping it of its natural resources and cultural heritage. [Railways]
Wages Rise in China as Businesses Court the Young
Ariana Lindquist for The New York Times At the Dahon bicycle plant in Shenzhen, China, pay has risen 10 to 15 percent a year, but productivity gains have held down costs.
By KEITH BRADSHER Published: August 29, 2007 SHENZHEN, China, Aug. 28 - At the Dahon bicycle factory here, Zhang Jingming's fingers move quickly and methodically - grabbing bicycle seats, wrapping them in cardboard and smoothly attaching them to frames.
Working a 45-hour week, Mr. Zhang makes the equivalent of $263 a month; as recently as February, he was making just $197. Some of his higher pay comes from working more efficiently. "When I first started, I wasn't this fast," he said. But a good portion reflects a raise Mr. Zhang got: to 1.45 cents for each bicycle seat from 1.32 cents. It is a small difference that signifies major change. Chinese wages are on the rise. No reliable figures for average wages exist; the government's economic data are notably unreliable.
China's Explosive Growth Threatens Korean Job Market
China's rapid growth has undermined Korean exports and caused the loss of 1.17 million Korean jobs since the two countries established diplomatic relations in 1992, an economist has said. Kim Dae-il, an economics professor at Seoul National University, said in a report released Monday that China eroded Korea's export market from 1993 to 2004 for an accumulated loss of W153 trillion (US$1=W938). China's erosion of Korean exports has affected domestic industries and the foundation for job growth has shrunk by 0.4 percent annually since 1993, the report claimed. Over 12 years, Korea has lost an estimated 1.17 millions jobs. [China competition]
India and China urged to cut emissions
* James Randerson, science correspondent * The Guardian * Tuesday August 28 2007 A UN climate change conference began yesterday with a call from the most vulnerable developing nations for large and rapidly developing countries such as China and India to do more to tackle global warming. [Environment]
Korea-China Ties
Two Sides Must Step Up Cooperation for Co-Prosperity
South Korea and China marked the 15th anniversary of diplomatic ties between the two countries Friday. Since establishing bilateral relations in 1992, the two nations have taken great strides in trade, investment, tourism, culture, education and human exchanges. Seoul and Beijing have developed a closer partnership based on economic interdependence, cultural similarities and geological closeness.
In India, a Jewish Outpost Slowly Withers
After Many Emigrated to Israel, Once-Thriving Community on Southern Coast 'Is Dying Out' By Emily Wax Washington Post Foreign Service Monday, August 27, 2007; Page A09 KOCHI, India -- Down a narrow, stone-paved road in a quarter known here as "Jew Town," a woman with salt-and-pepper hair was sewing glittery beads onto the rim of a Jewish prayer cap. It was just after 3 p.m., and Sarah Cohen, wearing a housedress and flip-flops, sat in the sunny doorway of her shop, waiting for the visitors from around the world to come in for a visit. Cohen lives right near the Pardesi Synagogue, which was built in 1568 when Jewish spice traders set up businesses in this small outpost of the Jewish world on the South Indian Malabar coast. The synagogue sparkles with colorful Indian chandeliers and green and red glass candleholders that swing from the ceiling beams. The floor is intricately patterned with blue and white tiles imported from a Jewish community in China in the 15th century
IAEA and NSG will be no Cakewalk
T P Sreenivasan The timing of the 'do or die' opposition of the Left to the nuclear deal has remained inexplicable. They had two long years to give a clear signal to the government that it was definitely a 'we or they' situation, but they chose to raise the alarm bells only when the 123 Agreement was done. This was possibly because they thought that the US would never concede the points on testing and reprocessing. When they found that these hurdles were crossed and it appeared that the remaining steps like negotiations with the International Atomic Energy Agency, IAEA, and the Nuclear Suppliers Group, NSG, were a mere formality, they chose to put their foot down
The New 'NATO of the East' Takes Shape: The SCO and China, Russia and US Maneuvers
M K Bhadrakumar
If optimism is a force multiplier, as former US secretary of state Colin Powell once said, it has worked well so far for the Shanghai Cooperation Organization (SCO). It is certainly a measure of the SCO's success that the United States and Japan are knocking at its door, anxious to gain "observer" status. But for Beijing and Moscow, the two capitals that jealously guarded the SCO and nursed it through its infancy, optimism wasn't the entire story behind the success of the organization, which comprises China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Everything depended on their mutual relations, too. Over the past half-century, Sino-Russian relations have been less than fraternal. But fortuitously, Sino-Russian relations have reached an almost unparalleled level of mutual understanding. That indeed helped the SCO gain flesh and blood. The author assesses recent development in the SCO at the time of a summit coinciding with military exercises. [SCO]
LEADER ARTICLE: Don't Get Fooled By China
The Times of India 28 Aug 2007, 1200 hrs IST,K Subrahmanyam There is a lot of talk of India getting closer to US if it goes ahead with the nuclear agreement and becoming a subordinate ally of Washington. But in reality the reverse is true. The nuclear agreement could lead to the waiver of the guidelines of the 45-member Nuclear Suppliers Group (NSG) and thereby liberate India from the technology apartheid to which it has been subjected to for over three decades. Therefore, countries such as Russia and France are keen to see New Delhi obtain the India-specific IAEA safeguards to get the NSG waiver. Whether the US will be able to make India an ally for its global dominance depends, of course, on India and its ability to stand up to American pressure. [China India US] [Dilemma]
Korea Importing More Chinese Consumer Products
Chinese consumer products make up one third of the imported products in Korea. As trade between the two countries grows, Chinese products are rapidly penetrating whole sectors of Korean markets, from materials and parts to end products. China is the biggest buyer of Korean products and the second biggest supplier of Korean imports. According to a report by the Korea Economic Research Institute on Sunday, the market share of Chinese goods in Korea was just 4.6 percent in 1992 when diplomatic relations between the two were opened. Since then that figure has grown nearly four-fold to 15.7 percent. The percentage of Chinese imports that are consumer products, used directly by consumers, was 9.8 percent in 1992. In 2006 it was 35.7 percent. The market share of capital goods, which are products such as equipment that are utilized in the production of other products, grew a whopping 41 times from 0.45 percent in 1992 to 18.5 percent in 2006. In contrast, Korean products are seeing their market share in China shrink. [China competition]
The Great Wall of Sound
A trip to Ibiza 20 years ago helped Paul Oakenfold reinvent dance music, but he says clubbers in search of new thrills should head for China * Paul Oakenfold and Tom Pattinson in Beijing * The Observer * Sunday August 26 2007
For 20 years, I've been travelling around the world as a DJ: Thailand, Columbia, Chile, India, Israel, Malaysia, Miami - you name it, I've played there. Going to all these countries - and through the contacts you make there - you seem to build up an idea of what place is happening at a particular time. And right now, nowhere is more exciting than China. I've been going to China every year now for more than a decade. I was there for the handover of Hong Kong in 1997. Everyone was in a state of high panic, thinking there was going to be drastic change overnight, with tanks and soldiers sweeping in from the outskirts of town. I was working, playing a set rounding off a party for 10,000 people in Kowloon Bay. There was an air of chaos and pandemonium, and then, just like the millennium bug, nothing happened. The morning dawned and things continued pretty much as they were. But change did begin to come, slowly, at first, but now accelerating all the time. Every time I go, I can see, smell and feel the changes since my last visit. By the late 1990s, I'd kind of got over Hong Kong and was looking for more. I felt the place to go was definitely Shanghai, and friends who lived there were saying the same thing.
N. Korea building fences along border with China
North Korea has started building fences along its border with China in an apparent attempt to forestall defections of its hard-pressed citizens, local residents said Sunday. The move comes amid growing international criticism of China which sends back home North Korean border trespassers under an agreement with Pyongyang. Some human rights activists have been pressuring Beijing not to repatriate North Korean refugees, threatening to launch a campaign to boycott the Beijing Olympics in 2008. About a month ago, North Korean workers were spotted erecting wire fences along a 10-kilometer area near a narrow tributary of the Yalu River, a major border-crossing point, local residents said. China already built fences along its side of the border late last year.
As China Roars, Pollution Reaches Deadly Extremes
' http://nytimes.com/china A series of articles and multimedia examining the human toll, global impact and political challenge of China's epic pollution crisis.
By JOSEPH KAHN and JIM YARDLEY Published: August 26, 2007 BEIJING, Aug. 25 - No country in history has emerged as a major industrial power without creating a legacy of environmental damage that can take decades and big dollops of public wealth to undo.
Threatens U.S.-India Nuclear Cooperation Deal
Delhi Parties Say Pact Limits Sovereignty By Emily Wax and Rama Lakshmi Washington Post Foreign Service Sunday, August 26, 2007; Page A14 NEW DELHI -- After two years of painstaking negotiations, a historic nuclear cooperation agreement between the United States and India appears to be unraveling as a broad spectrum of political parties calls on the government of Prime Minister Manmohan Singh to scrap the deal, saying it limits the country's sovereignty in energy and foreign policy matters. The landmark accord that just weeks ago looked like a major foreign policy triumph for this energy-starved subcontinent has become a political liability for India's fragile ruling coalition.
The brouhaha over the deal has surprised some nuclear analysts in Washington, partly because the Bush administration was widely perceived as having caved in to key Indian demands. The administration had assured the government here that it could receive uninterrupted nuclear supplies from the United States and maintain the right to reprocess spent nuclear fuel -- a potentially dangerous prospect because reprocessing technology can also be used to make weapons-grade plutonium. To many Western observers, India already had the upper hand in the deal, a testament to its growing international influence. [NPT] [Sovereignty] [Nuclear deal]
Chinese Seek to Buy American Maker of Disk Drives
Paul Sakuma/Associated Press William D. Watkins of Seagate Technology disclosed the move by a Chinese company to buy a U.S. drive maker.
By JOHN MARKOFF Published: August 25, 2007 SAN FRANCISCO, Aug. 24 - A Chinese technology company has expressed interest in buying a maker of computer disk drives in the United States, raising concerns among American government officials about the risks to national security in transferring high technology to China. The overture, which was disclosed by the chief executive of one of the two remaining drive makers in the United States, William D. Watkins of Seagate Technology, has resurrected the issues of economic competitiveness and national security raised three years ago when Lenovo, a Chinese computer maker, bought I.B.M.'s personal computer business. [China confrontation] [ODI]
Bound to China
Just three decades ago, China was a remote and mysterious land far removed from daily life in the United States, much like North Korea today. Children were told that if they dug a deep hole in the sand they might reach China. Their parents held vague and frightening images of a nation of ant-like workers, a massive population garbed in baggy blue uniforms and brainwashed into hatred of America. When in 1972 President Nixon visited China and Americans got their first glimpse of the actual country, the televised event excited almost as much attention as the first landing on the moon. Fast forward
Whether noble or nutty, one family's shopping habits obviously cannot dent the roughly $230-billion annual U.S. trade deficit with China, the largest imbalance we've ever had with any country. But a national embargo on most or all Chinese products -- as Sen. Christopher J. Dodd (D-Conn.) recently proposed on food and toys, in reaction to highly publicized recalls of adulterated pet food and lead-painted playthings -- would cause an economic pile-up harming many countries, not just China, and bring back few, if any, U.S. jobs. Almost two-thirds of Chinese exports are manufactured as foreign brands by foreign-owned companies, mainly from Taiwan, Japan and the United States. Only about 35 cents of each Barbie doll selling for $20 stays in China. Television sets, computers and lots of other consumer products are churned out by production chains linking a number of countries; instead of "Made in China," their labels really should read, "Finished in China." [Brands]
Korea's Future After 15 Years of Diplomatic Ties with China
It's been 15 years since Korea and China resumed formal diplomatic ties on Aug. 24, 1992, ending 43 years of antagonism. Last year, bilateral trade amounted to US$118 billion, marking a 19-fold increase since diplomatic relations started. Last year, 4.8 million people from both countries visited the other, marking a 36-fold rise. Over 10,000 Koreans visit China every day on average. Each day, over 100 million Chinese viewers tune into Korean TV dramas, while one-third of all foreign students in China are Korean. Also, two out of three foreigners who can speak Chinese are Korean. These are explosive changes that are far greater in scale than the exchange that has taken place between Korea and the United States. Over the last 15 years, China was a land of opportunity for Korea. The vast Chinese market served as a new direction for Korean companies that had been smarting from lost competitiveness in the U.S. market. After just 12 years of forming diplomatic relations, China emerged as Korea's top export destination. Last year, China accounted for 21.5 percent of all Korean exports. A study by the Samsung Economic Research Institute shows that whenever Korea's GDP grows by 100, China is responsible for 8.7 of that rise.
China Closing Technology Gap With Korea
Last year the amount of electronics components that Samsung Electronics sourced from Chinese suppliers increased by 20 percent from 2005. Each division of Samsung Electronics set up a global sourcing committee to evaluate the quality and the supply chain competitiveness of component manufacturers around the world. Chinese suppliers ended up with high marks in the surveys. "Chinese-made goods have received highly favorable evaluations over the past two years," said a Samsung official. "Almost everything, including quality and price, is satisfactory." China is rapidly narrowing the technology gap with Korea, and Chinese businessmen also seem to be increasingly confident in their country's tech goods.
India's secret history: 'A holocaust, one where millions disappeared...'
Author says British reprisals involved the killing of 10m, spread over 10 years
Randeep Ramesh in New Delhi Friday August 24, 2007 The Guardian
A controversial new history of the Indian Mutiny, which broke out 150 years ago and is acknowledged to have been the greatest challenge to any European power in the 19th century, claims that the British pursued a murderous decade-long campaign to wipe out millions of people who dared rise up against them. In War of Civilisations: India AD 1857, Amaresh Misra, a writer and historian based in Mumbai, argues that there was an "untold holocaust" which caused the deaths of almost 10 million people over 10 years beginning in 1857. Britain was then the world's superpower but, says Misra, came perilously close to losing its most prized possession: India.
Conventional histories have counted only 100,000 Indian soldiers who were slaughtered in savage reprisals, but none have tallied the number of rebels and civilians killed by British forces desperate to impose order, claims Misra.[Human rights]
The most important 15 years in Sino-Korean relations
August 23 marks the fifteenth anniversary of the resumption of formal relations between Korea and China. Fifteen years ago, China had a per capital national product of US$400. Today, it looks forward to enjoying a GNP of US$2,000. Korea had a GNP of about US$7,500 at the time, and is now at US$20,000. Naturally each country was of help to the other in that growth. When diplomatic relations were established, trade amounted to US$6.3 billion. The first half of this year it was more than US$74 billion, a figure that compares to the amount of trade done with Japan and the United States combined. As of last year China became Korea's largest export destination and ranked second in terms of where Korea imports things from, while Korea ranks as China's second exporter and fourth largest export destination. Some 4.8 million people traveled between the two countries last year. 700,000 South Korean citizens are living in China right now, where there is a growing interest in things Korean.
The partition evasion
Sumantra Bose A personal, family inheritance of opposition to India's partition later develops into an intellectual conviction that territorial division is almost always bad policy. Sumantra Bose shares his journey through one of the most contested ideas in international politics. 23 - 08 - 2007 I grew up, in India, regarding the partition of 1947 as an abomination. This was due to reasons more complex, and powerful, than any reflexive Indian nationalism. My father's family, prominent activists in India's long march to freedom, struggled and sacrificed much for the cause of an united, undivided India. My paternal grandfather, Sarat Chandra Bose (1889-1950), a Congress leader of undivided Bengal and India for more than two decades, was among very few major figures of the time to oppose the partition, on grounds of political morality as well as practicality, until the bitter end.
India’s third liberation
John Elkington
The size of India's economic and social tasks in the new century exceeds those it achieved in the last, says John Elkington. 21 - 08 - 2007
India during a moment of global financial panic is an object-lesson both in the integration of the world's markets and the scale of the challenge facing the country's leaders in building an economic model capable of addressing such crises. In particular, a week-long visit to Agra, Delhi and Mumbai on behalf of SustainAbility convinces me that India faces an even bigger convulsions in the next forty years than in its first sixty as an independent nation. This not entirely comfortable message - the theme of my keynote speech to a centennial conference of the Indian Merchants' Chamber in Mumbai - reflects partly a belief in the utility for India of the "triple bottom line" (TBC) concept I launched in 1994 (a point echoed by the chamber's president, Niraj Bajaj, in his introduction). More widely, it seems to me that the world's second most populous country is now embarking on its third great liberation process since the end of the second world war: and that the third is likely to be greater even than the first and second taken together. John Elkington is founder and chief entrepreneur at SustainAbility. He blogs at www.johnelkington.com India's first liberation was the achievement of independence from British rule, consummated at horrendous cost in 1947 as the partition process literally tore the country apart (see Ravinder Kaur, "India and Pakistan: partition lessons", 16 August 2007). As the sixtieth anniversary approached, the world's media - as well as India and Pakistan's - was full of reports and analyses memorialising the process and assessing its legacy. But so epic was this event that it is likely that the seismic aftershocks of partition will still be shaping the world in 2047. The second liberation arrived in the 1990s, as the levers of economic power were gradually won from the iron grip of the state - and India proceeded to catch up with broader processes of liberalisation, privatisation and globalisation. Again, the convulsive effects are still working their way through the country's economy - and will continue to do so for decades to come. The new order has many beneficiaries, but millions remain left behind or have been pushed even deeper into poverty. This is a clue to the third liberation. If the first broke the stranglehold of the British and the second that of the state, the next must be even more ambitious. It involves nothing less than a simultaneous triple-whammy: * developing a sustainable, modern economy * ensuring that its benefits can be extended to the 250 million-plus of India's people trapped in poverty * protecting the country's natural environment from degradation, and playing a key role in minimising global climate change.
Bay of Bengal war games not aimed at China: U.S.
Thu Aug 23, 2007 11:29am ET Top News NEW DELHI (Reuters) - The United States said on Thursday that next month's joint naval exercises with several Asian nations, but not China, were not aimed at isolating Beijing. The navies of India, Japan, Singapore, Australia and the United States will hold the war games in the Bay of Bengal, the first such joint exercises by the five nations. Admiral Timothy J. Keating, the commander of the U.S. Pacific Command, told reporters in New Delhi the exercises were not an attempt to corner China. "There is no, let me emphasize, no effort on our part or any of those (participating) countries' part, I am sure, to isolate China, to put China in a closet," Keating said. [US Joint military] [China confrontation]
Shanghai Cooperation Organization Pledges Energy Cooperation
Archived Story by Kadyr Toktogulov Thu, Aug 16, 2007 22:57 GMT
BISHKEK, Kyrgyzstan - Shanghai Cooperation Organization, or SCO, a China and Russia-led regional security grouping, Thursday called on member states to cooperate on energy issues to create a unified energy infrastructure. "Considering existing resources, demand, opportunities and potential, SCO member states will support the development of a dialogue on energy issues, practical cooperation between producers, transit countries and consumers of energy resources," the presidents of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan said in a joint statement adopted at a summit in Kyrgyz capital Bishkek. "Reliable and mutually beneficial partnership in various energy spheres will contribute to security and stability in SCO region and in a global dimension." [Energy security]
China outruns U.S. in S. Korea 15 years after normalization of ties
South Korea's economic and cultural relationship with China has surpassed that of its ties with its long-time ally, the United States, just 15 years after Seoul's 1992 normalization of relations with Beijing, even though China fought the 1950-53 Korean War alongside its communist ally, North Korea. China, which normalized ties with South Korea on Aug. 24, 1992, became South Korea's largest trading partner in 2004, surpassing the United States and Japan, while South Korea became China's third-largest trading partner. The volume of bilateral trade between South Korea and China jumped to over US$134 billion last year from $6.3 billion in 1992, according to government statistics. Two-way trade volume between South Korea and the United States in 2006 came to $76.8 billion, while the comparable figure for South Korea-Japan was $78.5 billion. The number of people traveling to the other country also increased nearly 40-fold, from some 130,000 in 1992 to over 4.8 milion in 2006, according to Foreign Ministry figures. Some 20,000 South Korean firms are currently operating businesses in China. South Korea's aggregate investment in China reached $13.5 billion in 2005, according to ministry statistics. China puts the figure at $31.1 billion. About 800 weekly flights connect South Korea's six major cities with some 30 Chinese cities these days, while the number for South Korea and the U.S. is about 200 [Realignment]
Kim Jong Il Sends Reply Message to Hu Jintao
Pyongyang, August 22 (KCNA) -- General Secretary@Kim Jong Il Tuesday sent a reply message to Hu Jintao, General Secretary of the Central Committee of the Communist Party of China and President of China. The message says: @I express thanks to you for sending a message of sympathy in connection with the flood that hit the DPRK. Availing myself of this opportunity, I wish you fresh success in your responsible work. [China NK]
Wine may not be what it seems in China
By Tim Johnson | McClatchy Newspapers * Posted on Wednesday, August 22, 2007
BEIJING - Poisoned pet food and lead-tainted children's toys have created jitters worldwide about the safety of Chinese exports, but lost in the media storm is this fact: Consumers in China face an even more daunting challenge from misleading labels and unscrupulous manufacturers. Take, for example, wine. Chinese vineyards can fib about the vintage on labels. They also can mislead consumers about where the wine comes from. Some inexpensive "wines" may not even be wine at all. The state broadcaster, China Radio International, said investigators earlier this year found that "many wines consist of little more than water, pigment and alcohol, with trace amounts of grape juice." False wine labels don't fall into the category of bogus antibiotics, which killed seven people in China last year. No one has perished from sipping a mock merlot.
A Bump in India-U.S. Rapport: Defining 'Ally'
By SOMINI SENGUPTA Published: August 23, 2007 NEW DELHI, Aug. 22 - Affection for things American can be felt regarding many things in this country, from sneakers to accents, to where the elite send their children for university education. And yet deepening relations between New Delhi and Washington, symbolized by a landmark nuclear accord whose details were made public earlier this month, have stirred such fierce political anxiety here that it now stands as the biggest challenge for the coalition government of Prime Minister Manmohan Singh. The government's Communist allies, as well as the opposition, the conservative Hindu nationalist Bharatiya Janata Party, have seized on the deal to assail the government for cultivating broader strategic and economic ties with the United States. [India US]
China in the Year 2020
Mercy Kuo & Andrew D. Marble, David M. Lampton, Cheng Li, Pieter Bottelier, and Fenggang Yang
India & Japan: Impact Of Relationship On China
by B. Raman
There is an economic and a strategic angle to India's expectations from the current visit of Prime Minister Shinzo Abe of Japan, who arrived in Delhi on August 21, to reciprocate the visit paid by Prime Minister Dr. Manmohan Singh to Japan from December 13 to 16 last year. 2. The economic angle relates to India's expectations of a major role by Japanese investors in developing the infrastructure in India and by the Japanese Government in facilitating the Indian quest for nuclear energy by supporting the relaxation of the present restrictions on civilian nuclear trade with India when the matter comes up before the Nuclear Supplier's Group (NSG)----most probably before the end of the year. [India Japan relations] [China confrontation] [Nuclear energy]
Beijing Hardens Its Stand on the India-US Civil Nuclear Cooperation Agreement
C3S Paper No. 41 dated August 19, 2007, by D.S.Rajan
Amidst latest media reports on China-Pakistan negotiations over a civil nuclear cooperation agreement, similar to that between the US and India, the People’s Republic of China (PRC) is coming out with firm signals pointing to its disapproval of the Washington-New Delhi deal. A series of articles in the official Chinese and English language media, appearing since the consensus reached by the two sides on the implementation of their civil nuclear cooperation agreement (Washington, July 27, 2007), have shown no hesitation in openly questioning the motives of the US and India behind their deal. This approach stands in contrast to Beijing’s willingness, noticed at official levels till recently, to be open minded on the issue. [China confrontation] [India US]
China's Trade in Africa Carries a Price Tag
Benedicte Kurzen for The New York Times
By LYDIA POLGREEN and HOWARD W. FRENCH Published: August 21, 2007 KABWE, Zambia - The courtyard in front of the Zambia China Mulungushi Textiles factory is so quiet, even at midday, that the fluttering of the ragged Chinese and Zambian flags is the only sound hanging in the air.
The factory used to roar. From the day it opened more than 20 years ago, the vast compound had shuddered to the whir of rollers and the clatter of mechanical weaving machines spooling out millions of yards of brightly colored African cloth. Today, only the cotton gin still runs, with the company's Chinese managers buying raw cotton for export to China's humming textile industry. Nobody can say when or even if the factory here will reopen. "We are back where we started," said Wilfred Collins Wonani, who leads the Chamber of Commerce here, sighing at the loss of one of the city's biggest employers. "Sending raw materials out, bringing cheap manufactured goods in. This isn't progress. It is colonialism." [China competition]
Korea Has 1/16 of China's Market-Leading Products
The number of Korean products deemed to be global market leaders stand at 59, only 1/16 of China's. Market-leading Korean products are shifting from light to heavy industry and information technology, but as rival countries are catching up fast, Korea's competitiveness is increasingly becoming, in the fashionable phrase, "sandwiched" between bigger powers. China had the most top products with 958 followed by Germany (815), the U.S. (678), Italy (304) and Japan (280). In a Sunday report on products with the largest global market share based on 2005 data, the Institute for International Trade affiliated with the Korea International Trade Association said Korea ranked 17th with 59 products. World no. 1 products were Korean oysters, benzene, bleached fabric, hair pins, refrigerator and washing machines. [China competition]
South Asia's schizophrenic twins
By Chan Akya
Reading through the various valedictory, overly critical and self-congratulatory articles on 60 years of independence for India and Pakistan this week, it becomes apparent that the media largely lack the courage to discuss the main issues confronting the two nations. Instead, the focus has overwhelmingly been on the cosmetic symptoms that are displayed by the disease in question.
In my opinion, this would be the abysmal economic record of the two countries for the past 60 years that has been the dominant factor in the continued socio-political strife, diplomatic snafus and wars. The lack of economic growth in these two countries over the first 50 years of independence weighed on their domestic politics, security and, eventually, every element of the socio-political milieu.
Much of the economic mess in the subcontinent can be laid at the door of two forces: feudal chiefs in the case of Pakistan and communist leaders in the case of India
Combined with rising income disparities, the political framework ended up handing power to communist leaders, a term I use to describe the heads of all Indian political parties. These politicians come in different hues, but much like the French political system today, even the most right-wing of Indian politician looks like a socialist to me. From that perspective, branding the whole lot as communists does not appear an oversimplification of the current environment. [Bizarre]
DPRK Students Prove Successful at World Students' Chinese Contest
Pyongyang, August 17 (KCNA) -- Ri Un Gyong and Pak Chun Gyong, students of Pyongyang University of Foreign Studies, won the gold and bronze medals at the 6th World Students' Chinese Contest held in Changchun City, Jilin Province, China, from August 4 to 6. The contest brought together 102 aces from 52 countries, who had been selected through preliminaries in different countries. The contest was classified into three categories -- the art of speaking Chinese, question and answer about common knowledge and the presentation of special ability -- in which the contestants competed in the semi-finals and the finals. Ri Un Gyong advanced to the finals by setting excellent records in the semi-finals and showed her distinguished talent in every category including the art of speaking Chinese, which indicated all-round linguistic standard and ability of expression. Pak Chun Gyong who also competed in the finals showed her multifarious knowledge of different fields such as history and culture.
Gift to Kim Jong Il from China Development Bank
Pyongyang, August 17 (KCNA) -- General Secretary Kim Jong Il was presented with a gift by the China Development Bank. It was handed to an official concerned Friday by Du Baishun who is heading the delegation of the bank on a visit to the DPRK.
Chinese Entrepreneurs Flourish in Africa
By HOWARD W. FRENCH and LYDIA POLGREEN Published: August 18, 2007 LILONGWE, Malawi - When Yang Jie left home at 18, he was doing what people from China's hardscrabble Fujian Province have done for generations: emigrating in search of a better living overseas.
What set him apart was his destination. Instead of the traditional adopted homelands like the United States and Europe, where Fujian people have settled by the hundreds of thousands, he chose this small, landlocked country in southern Africa. "Before I left China," said Mr. Yang, now 25, "I thought Africa was all one big desert." So he figured that ice cream would be in high demand, and with money pooled from relatives and friends, he created his own factory at the edge of Lilongwe, Malawi's capital. The climate is in fact subtropical, but that has not stopped his ice cream company from becoming the country's biggest.
U.S. businesses share blame for China toy recall
By Tim Johnson and Kevin G. Hall | McClatchy Newspapers
* Posted on Thu, August 16, 2007
BEIJING - This week's product recall by toy titan Mattel Inc. is the latest black eye for the "Made in China" label, but experts here and abroad believe that U.S. manufacturers and importers share the blame by putting relentless pressure on Chinese suppliers to deliver lower prices to American consumers. "Everybody is pushing, pushing, pushing for lower and lower prices. The vendors are squeezed to the point where they aren't making a profit anymore. So they are looking to cut corners," said Peter Dean, a former U.S. toy company executive who now teaches at Hong Kong Polytechnic University. The squeeze on China's manufacturers, led by big retail names like Wal-Mart and Target, means low prices and low inflation for U.S. consumers. But perversely, it may now be giving an incentive for Chinese manufacturers to cut corners or outright cheat. [Globalisation]
Imports of Chinese-Made Food to Hit W4 Trillion
Korea will import an estimated W4 trillion in Chinese-made food this year. The Ministry of Agriculture & Forestry and the Ministry of Maritime Affairs & Fisheries said that some W2 trillion (US$1=W932) of Chinese farm, fisheries and livestock products were imported in the first half of the year. Imports for the full year appear likely to exceed W4 trillion, compared to last year's W3 trillion. Chinese food products are quickly becoming popular among restaurants, particularly those catering to college students and office workers. Some 3,000 containers arrive at Incheon customs office every day, 90 percent of which are from China. Korean homes still prefer domestic produce but this is not the case with restaurants. Some 20 Korean eateries surveyed in areas around Shinchon, Ewha Womans University, Daehakno and Sillimdong were found to be using Chinese ingredients.
Agricultural products headed for Korea pile up at a dock in Qingdao port on Monday. A peddler in his late 30s from Gunsan, North Jeolla Province said, "If you're quick witted, it's possible to import 70 kg of goods free of customs." Farmer Park Byung-man said, "This is why the rural economy is ailing. Even we farmers eat Chinese sesame and sesame oil."
Now the trend is moving to include processed goods. A Korea Food & Drug Administration official said more than half of Chinese food imports are processed goods, and that percentage is rising.
Meanwhile Chinese dogs intended for food purposes are being imported as pets. A KFDA official said that there's no way to restrict the entry of such dogs that will obviously end up as dog stew. According to the National Veterinary Research and Quarantine Service, an airline passenger can bring in up to four animals a month as long as the person can show proof that the animals have been vaccinated.
Although there have been several health scandals involving Chinese food recently, experts point out that the quality of imports has improved drastically in the past one to two years, which is worrying in its own right. [China competition]
Welcome to America (Made in China)
When Toyota's Crown sedan was first exported to the U.S. in 1957, it cost US$1,900, about half the price of a competing GM model. Before the Tokyo Olympics in 1964, American consumers considered Japanese products to be synonymous with cheap. But Japanese manufacturers succeeded in winning over Americans, thanks to competitive prices for the first 10 years, and superior quality for the next 10 years. Japanese goods dominated the American market until the early 1990s, when they lost their export competitiveness due to the strong yen.
Until the mid-1990s Chinese products accounted for just two to three percent of the goods sold in the U.S. But in 2002 China outdistanced Japan, which had dominated the U.S. market for 20 years. A year ago, Chinese products had a 16 percent share of the American market, double the share of Japanese goods. Korean products had maintained a four percent market share until the mid-1990s, but that figure dropped to 2.5 percent in 2006, putting Korea in seventh place. Now Korea looks like it will be bested in the U.S. by India, too. It doesn't seem likely that Korean goods will ever gain any more ground in the U.S. market, unfortunately. [Chinese competition]
China, a Haven for Fake Goods
"You'll see everything here in Shenyang is fake, except for Shenyang itself," a South Korean executive told a Chosun Ilbo news team in Shenyang, China some time ago. He was only half joking. He showed us a designer watch that would cost millions of won in South Korea. It was a fake, of course, bought for 20 yuan (US$1=CNY7.57). So was his wallet, his belt, his shoes -- all fakes. There's no reason to pay for genuine brand name goods in China, the executive said, because even if you buy the real thing, people just assume it's fake. [Counterfeiting] [IPR]
Economic Boom Fails to Generate Optimism in India
By SOMINI SENGUPTA Published: August 16, 2007 NEW DELHI, Aug. 15 - Prime Minister Manmohan Singh cautioned Indians against hubris in his annual Independence Day speech on Wednesday and promised a spate of antipoverty measures that hinted at the vulnerabilities facing his government and the nation. Skip to next paragraph Harish Tyagi/European Pressphoto Agency Prime Minister Manmohan Singh after his speech on Wednesday. His tone reflected the fragility within his governing coalition. "India cannot become a nation with islands of high growth and vast areas untouched by development, where the benefits of growth accrue only to a few," said Mr. Singh, speaking from behind a bulletproof glass shield at the historic Red Fort. His speech signaled the peculiar paradox facing Mr. Singh's coalition government, led by the Congress Party, three years into its term in office. On the one hand, his government has presided over sustained economic growth, amassed record government revenues, avoided conflicts with rival neighbors and stepped closer to securing a landmark deal with the United States that would allow energy-starved India access to additional nuclear technology and fuel. And yet, after 60 years of independence, nearly 30 percent of Indians still live below the official poverty line and close to half of all Indian children under the age of 3 are malnourished. A government study released last week found that the majority of Indians live on 50 cents a day.
U.S. Ties With Isolated Taiwan Souring Over China
By REUTERS Published: August 16, 2007 Filed at 3:36 a.m. ET Skip to next paragraph TAIPEI (Reuters) - Taiwan, ridiculed by China at every opportunity and recognized by only a couple of dozen countries worldwide, has no stauncher ally than the United States, but goodwill appears to be in limited supply. The United States, Taiwan's biggest trading partner and main arms supplier, has grown increasingly impatient since the island ignored its warnings against holding a referendum on U.N. membership alongside presidential elections next March. For Washington, the self-ruled island, which Beijing has claimed as its own since their split in 1949 during a civil war, is needlessly provoking China by pressing for U.N. membership and grandstanding about formal independence. The United States, increasingly entangled with China in economic relations and security issues including North Korea, is also annoyed at Taiwan's refusal to buy $18 billion in advanced arms, even though a fraction of the bill was approved in June. [Tribute] [Arms sales]
Politics Is the New Star of India's Classrooms
Jacob Silberberg for The New York Times
By SOMINI SENGUPTA Published: August 15, 2007 NEW DELHI, Aug. 14 - Quietly, a great upheaval is taking place inside Indian high schools. For the first time, some of the most controversial episodes in Indian politics are being taught in political science class. For the first time, the messy brawl that is modern Indian politics, including some of its ugliest and most controversial episodes, is being taught in political science class. It is part of a broader revision of the school curriculum, with potentially long-lasting implications for how Indian children grasp the workings of their nation and its place in the world. Using cartoons, newspaper clippings and questions that invite classroom debate on thorny contemporary issues, the new curriculum comes at a time when democracy has firmly rooted itself in Indian soil and is indeed one of the nation's principal selling points as it tries to assert itself in the world. India marks the 60th anniversary of its independence from Britain on Wednesday. "Sixty years after independence, it's a statement of maturity of Indian democracy," said Yogendra Yadav, one of the two chief advisers to the political science textbook committee. "This couldn't have been written 30 years after independence. This probably couldn't have been written 15 years ago." Shikha Chhabra, 16, offered an example from her new 12th-grade textbook, "Contemporary World Politics." She said she had always been taught that the nonaligned movement, in which India played a leading role during the cold war years and countries carved out at least a rhetorical policy of independence from both the Soviet Union and the United States, was "a wonderful thing." The new textbook, she noticed, treats it differently. "Now they raise the question - does the nonaligned movement really apply in the world today? Was it just fence-sitting?" [Textbooks] [Realignment] [Imperialism] [Indoctrination]
Mattel Recalls 19 Million Toys Sent From China
By LOUISE STORY and DAVID BARBOZA Published: August 15, 2007 Mattel, the world's largest toy company, yesterday announced the biggest recall in its history. In a double-barreled announcement, the company said it was recalling 436,000 Chinese-made die-cast toy cars depicting the character Sarge from the animated film "Cars" because they are covered with lead paint. At the same time, the toy maker said it was recalling 18.2 million other toys because their small, powerful magnets could harm children if swallowed. The magnetized toys were also made in China, but they followed a Mattel design specification. About half of the toys in each recall were distributed in the United States. Amid a wave of increasing safety concerns about products made in China, the recall threatened to set the toy industry on its heels - just as companies are beginning to ship toys to stores for the holiday shopping season, when half of all toy purchases are made.
S.C.O. Summit Demonstrates its Growing Cohesion
. Marcel de Haas
In July 2007, the Shanghai Cooperation Organization (S.C.O.) -- consisting of Russia, China, Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan -- founded a so-called "Energy Club" to coordinate energy strategies. On August 16, the heads of state will hold their annual summit, this time in Bishkek, Kyrgyzstan. After the summit, they will travel to Chebarkul, a city in Russia's Urals, to attend the closure of the S.C.O. military exercises. The rapidly developing activities in these three security dimensions -- energy, politics and the military -- gives the impression that the S.C.O. is firmly on its way to mature into a full-fledged security organization. [SCO] [Energy security]
Peace Mission 2007 and the S.C.O. Summit
August 2007 on the eve of the upcoming Shanghai Cooperation Organization (S.C.O.) summit, the members of the security alliance are hosting their largest joint military exercises in Russia and China. All six permanent members of the organization are participating in the exercises, which are scheduled to be held from August 9-16. The mission begins in Urumqi, the capital of China's Xinjiang Autonomous Region, and then moves to Chelyabinsk in the Ural mountain region of Russia. The joint military exercises, dubbed "Peace Mission 2007," demonstrate the growing importance of the S.C.O. in Central Asian geopolitical calculations. [SCO]
Shanghai Cooperation Organization Primed and Ready to Fire: Toward a Regional and Global Realignment?
M K Bhadrakumar
It may seem improbable that a regional cooperation organization commences its annual summit against the backdrop of military exercises. The European Union, the Association of Southeast Asian Nations, the African Union, the Organization of Latin American States - none of them has ever done that. Therefore, the Shanghai Cooperation Organization is indeed making a very big point by way of holding its large-scale military exercises from August 9-17. The SCO is loudly proclaiming to the international community that there is no "vacuum" in Central Asia's strategic space that needs to be filled by security organizations from outside the region. The exercises, code-named "Peace Mission 2007", will be held in Chelyabinsk in Russia's Volga-Ural military district and in Urumqi, capital of China's Xinjiang Uyghur autonomous region. The SCO summit is scheduled to take place in the Kyrgyz capital Bishkek on August 16. After the summit, in a highly symbolic gesture, the heads of states and defense ministers of all SCO members - China, Russia, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan - will watch the conclusion of the joint military exercise in Urumqi. [SCO]
Mekong-Ganga Cooperation Initiative: A analysis and Assessment of India's Engagement with Greater Mekong Sub-region
By Swaran Singh
, Irasec, Occasional Paper, no. 3, 2007, 72 pages ISBN :
From October 2006, India holds the Chair of the Mekong-Ganga Cooperation Initiative (MGCI). Cambodia and Thailand have held this position for three years each before India, and in that order. MGCI was launched on 10th November 2000 in Vientiane (Laos) and aims at rekindling the cultural links between India and the five riparian states of the Mekong River, namely, Cambodia, Laos, Myanmar, Thailand and Viet Nam. It is from here that India seeks to strengthen connectivity through building the physical and social infrastructure in these countries. This includes roads, rails, air links and information and communication technologies as also education, culture, and imparting skills in development management and other technical areas. It is only with a robust engagement of this nature that MGCI may evolve a lasting socio-political and economic partnership with this region and take it further in enhancing Indiaâs military and strategic equations with these countries. India has taken scores of major initiatives under the MGCI and this newfound enthusiasm has also provided a boost to India's bilateral relations with each country. As this study shows, the results, however, remain a mixed bag and India needs to accelerate its footwork to implement its grand vision and to keep pace with other major stakeholders in this region. In particular, progress made by China has been far too rapid and this has put China in the lead and this remains a subject of debate both inside and outside the Mekong region.
Dr. Singh is currently President (2005-2010) of the Association of Asia Scholars (AAS, New Delhi) for South Asia chapter. He lectures regularly at several military and academic institutions in India and abroad and has traveled to and written extensively on China and Southeast Asia with special interest in perspectives on India's interests, equations and priorities. Dr. Singh has authored China-South Asia: Issues, Equations, Policies (2003), China-India Economic Engagement: Building Mutual Confidence (2005) and co-authored Regionalism and South Asian Diplomacy (2007), last one published by the Stockholm International Peace Research Institute (SIPRI), Stockholm, Sweden. He is currently working on a full-length study on India's ties with GMS. [China confrontation] [China India}
Tawang: some Indian plain-speaking at last
by B.Raman
For those who are knowledgeable about the goings-on in New Delhi, it has been known for some time that despite all the positive spins put out by the Government of India, the Sino-Indian border talks were making no progress due to Beijing's insistence that there could be no agreement on the border issue unless and until India agreed to transfer at least the Tawang Tract if not the whole of Arunachal Pradesh to China. The fact that China's unreasonable demand was in violation of the broad principles already agreed to by the leaders of the two countries did not inhibit China from pressing it. One of these principles is that any transfer of territory under the border agreement should not involve populated areas. [China confrontation] [China India]
Taiwan Independence turns Anti-American
United Daily News editorial (Taipei, Taiwan, ROC) (A translation) August 9, 2007
A SUMMARY Chen Shui-bian has maneuvered Taiwan independence movement so shamelessly in recent years that it has undergone a total metamorphosis. Not only is the Taiwan independence movement moving farther and farther away from its original goals, it is actually working against itself. As matters stand, Taiwan independence has morphed into anti-Americanism. Taiwan independence leaders should stop to ask themselves: "What am I fighting for? Whom am I fighting for?" Does the Taiwan independence movement really want its most important foreign backer as an enemy? Has Uncle Sam suddenly become an effigy to be hanged and burned as part of the Taiwan independence movement's Jihad? Has anti-Americanism suddenly become the Taiwan independence movement's final article of faith? On September 15, the Taiwan independence movement will hold a "Join the UN under the Name of Taiwan Plebiscite" protest march. In response to anti-Chinese provocations, Mainland China has maintained its composure. In response to anti-Ma provocations, Ma Ying-jeou has chosen to sing the same tune. This being the case, the "Join the UN under the Name of Taiwan Plebiscite" million-man protest march will probably turn into the largest scale "pro-Taiwan independence, anti-US" protest in recorded history. One really doesn't know whether to laugh or to cry.
Chinese Firms Ask to Move into Kaesong Complex
Two Chinese firms have recently applied to move into the inter-Korean industrial complex located in North Korea's border city of Kaesong. The Korea Land Corporation in Seoul said on Saturday a cosmetics manufacturer and a maker of plywood have each asked for a six-thousand square-meter lot and a two-thousand square-meter lot, respectively. [Kaesong] [FDI]
China, Filling a Void, Drills for Riches in Chad
Ruth Fremson/The New York Times
By HOWARD W. FRENCH and LYDIA POLGREEN Published: August 13, 2007 KOUDJIWAI, Chad - The small plane flew in low over a scorched, peppercorn scrubland, following a broad, muddy river that was all elbows on its run to the southeast. Koudjiwai, a small village in Chad, is surrounded by a Chinese oil exploration zone. More Photos » The first hint of humanity came with the appearance of an immense grid for seismic testing, laboriously traced through the brush. Finally, a lonely, hulking steel drilling platform popped into view. Chad is as geographically isolated as places come in Africa. It is also among the continent's poorest and least stable countries, the scene of recurrent civil wars and foreign invasions since it gained independence from France in 1960. None of that has put off the Chinese, though. [China competition] [China confrontation] [Energy]
In China, a High-Tech Plan to Track People
Ariana Lindquist for The New York Times Law enforcement technology is being introduced to monitor people, like these citizens from Hong Kong, crossing into Shenzhen.
By KEITH BRADSHER Published: August 12, 2007 SHENZHEN, China, Aug. 9 - At least 20,000 police surveillance cameras are being installed along streets here in southern China and will soon be guided by sophisticated computer software from an American-financed company to recognize automatically the faces of police suspects and detect unusual activity.
Starting this month in a port neighborhood and then spreading across Shenzhen, a city of 12.4 million people, residency cards fitted with powerful computer chips programmed by the same company will be issued to most citizens. Data on the chip will include not just the citizen's name and address but also work history, educational background, religion, ethnicity, police record, medical insurance status and landlord's phone number. Even personal reproductive history will be included, for enforcement of China's controversial "one child" policy. Plans are being studied to add credit histories, subway travel payments and small purchases charged to the card. Security experts describe China's plans as the world's largest effort to meld cutting-edge computer technology with police work to track the activities of a population and fight crime. But they say the technology can be used to violate civil rights. [Surveillance] [Double standards]
India's Tough Choice on Iran
By Sadanand Dhume
Special to washingtonpost.com's Think Tank Town Saturday, August 11, 2007; 12:00 AM With last month's consummation of a landmark agreement to cooperate with the United States on civilian nuclear programs, India took another large stride from the periphery to the center of the global order. Not many countries can boast a special relationship with the world's sole superpower, an economy that's expanding at upwards of 8 percent per year, and a democracy lauded for holding together a billion people of every conceivable class, color and creed. Indeed, at times it seems as though most everyone has reason to smile upon a rising India. For idealists here's proof that democracy belongs as much to poor countries as to rich ones, and that you don't have to choose between democracy and development. For realists, a large English-speaking country with a free market and rule of law is a reassuring presence in a neighborhood that includes both an unpredictable China and the turmoil of Pakistan and Afghanistan. For the first time since India's independence 60 years ago the West appears willing to see it as the pivotal power in an arc stretching from Singapore to Aden.
To put it bluntly then, India faces a simple choice. A tepid response to the Iranian threat will reveal an India too mired in Third Worldism and too heedless of the dangers of proliferation and global terrorism to be counted on as a reliable partner for the West. A robust response, on the other hand, will showcase a country ready to shoulder responsibilities commensurate with its size, ambition and growing economic heft. [Imperialism] [Pro-Americanism]
Chinese Scooters Rule in Korean Market
Chinese-made scooters dominate the Korean market. While there effectively no imports of Chinese cars due to concerns about quality and safety, Chinese copies of Japanese scooters or scooters made in China by Korean and Japanese makers are buzzing in Korea. And indeed, they make a tempting choice for those who want cheap, pretty scooters. [China competition]
In the Hole to China
Uncle Sam, Your Banker Will See You Now ...
By PAUL CRAIG ROBERTS
August 8, 2007 Early this morning China let the idiots in Washington, and on Wall Street, know that it has them by the short hairs. Two senior spokesmen for the Chinese government observed that China’s considerable holdings of US dollars and Treasury bonds “contributes a great deal to maintaining the position of the dollar as a reserve currency.” Should the US proceed with sanctions intended to cause the Chinese currency to appreciate, “the Chinese central bank will be forced to sell dollars, which might lead to a mass depreciation of the dollar.” [China confrontation] [Reserve]
Another Shot in Currency Fight: Chinese Threaten Divestment
By Krissah Williams Washington Post Staff Writer Thursday, August 9, 2007; Page D01
In a Wednesday opinion piece in the state-run China Daily, a Chinese government researcher made what sounded like a warning to U.S. policymakers not to get too tough in insisting the yuan should appreciate. The researcher, He Fan, noted that China has accumulated "a large sum of U.S. dollars" and that its holdings contribute "a great deal to maintaining the position of the U.S. dollar as an international currency." If the yuan's exchange-rate against the dollar does not remain stable, he said, China could be forced to take strong action.
China has $1.33 trillion in foreign-exchange reserves, with $407 billion in U.S. Treasuries, the second-largest holder after Japan. A substantial sell-off of the reserves could spark a recession in the U.S. economy, which is already experiencing a housing slump, financial analysts said. [China confrontation] [Reserve]
Countdown to Beijing
The Choice for China: Propaganda or Positive Change? By Victor D. Cha
Wednesday, August 8, 2007; Page A15 One year from today, Beijing One year from today, Beijing will host the opening ceremonies for the 2008 Summer Olympics. For two weeks we will be treated to athletic performances that animate dreams and inspire the world, set against the backdrop of one of the world's most ancient and celebrated civilizations. That, at least, is the way Beijing would like to sell the Games. For better or worse, they will mark a critical crossroads in China's development as a responsible global player.
Another record export performance in 2006-07
Australia’s exports topped $215 billion in 2006-07, which is a new record, the Australian Government Minister for Trade, Warren Truss, said today.
Leading the way was China, with exports rising by 26 percent. Even stronger was merchandise exports to India, which were up by 37 percent. This took India to fourth in the list of Australia’s merchandise export markets, now ahead of New Zealand, the US and United Kingdom and behind Japan, China and Korea. [IM]
The Last Rajah
By Pete Engardio
India's Ratan Tata aims to transform his once-stodgy conglomerate into a global powerhouse. But can it thrive after he steps down?
Among Asia's business titans, Ratan N. Tata stands out for his modesty. The chairman of the Tata Group—India's biggest conglomerate, with businesses ranging from software, cars, and steel to phone service, tea bags, and wristwatches—usually drives himself to the office in his $12,500 Tata Indigo Marina wagon. He prefers to spend weekends in solitude with his two dogs at a beachfront home he designed himself. And disdainful of pretense, he travels alone even on long business trips, eschewing the retinues of aides who typically coddle corporate chieftains.
But the 69-year-old Tata also has a daredevil streak. An avid aviator, he often flies his own Falcon 2000 business jet around India. And in February he caused a sensation at the Aero India 2007 air show by co-piloting Lockheed (LMT ) F-16 and Boeing (BA ) F-18 fighter jets.
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China's Massive New Dam Passes Its First Real Test
In a Season of Deadly Floods, the Yangtze Appears Tamed at Last
By Edward Cody Washington Post Foreign Service Friday, August 3, 2007; Page A10 JIANLI, China, Aug. 2
The Yangtze River, flowing more than 3,900 miles from the mountains of Tibet through fertile plains here in Hubei province and on to the East China Sea, was playing its traditional life-giving role Thursday, feeding the Chinese economy as it has for centuries.
As barges laden with goods churned upstream and irrigation canals branched out like capillaries, the river's even flow seemed in many ways remarkable. Other rivers in China have swollen out of their banks, with floods killing about 700 people and causing an estimated $7 billion in damage to buildings and farmland over the past two weeks. The Yangtze's flow across the Hubei flatlands marks the latest chapter in China's millenary struggle to control its waters. Since before written history began, the river has alternated between giving life to China's farmers through irrigation and killing them through seasonal flooding. The cycle always seemed beyond man's control. But this year, for the first time, the mammoth Three Gorges Dam, 220 miles upstream from here, was used to regulate the river, releasing limited amounts of water and trapping the excess of summer rains in a huge reservoir. The engineers who have run the dam since it was finished a year ago said the 606-foot-high structure, the world's largest flood-control and hydroelectric barrier, passed its first real test as the waters peaked Tuesday
China goes global
Kerry Brown
China's purchase of a stake in a leading western bank signals a new phase in the country's global ambitions, says Kerry Brown. 2 - 08 - 2007
The epic process of China "going global" has been underway for over a decade, but the events of late July 2007 may well be its defining moment. The stake in Barclays bank purchased by the China Development Bank - one of Beijing's state-owned "policy banks" - is significant in itself, but it also represents a high-profile reversal of the dominant perception of China's international economic role. Since China's entry to the World Trade Organisation in 2001, foreign investors have salivated at the prospect of buying into a market with one of the highest savings-rates on the planet ($1.7 trillion sits in Chinese personal savings accounts). The Royal Bank of Scotland and the Bank of America (to name only two) have taken stakes worth billions of dollars in Chinese banks. But even a few months ago, the thought that China's own banking institutions might themselves undertake such bold action wasn't envisaged.
The China Development Bank's acquisition of a minority share in Barclays was (as the Financial Times observed) well judged: modest enough not to appear threatening, in tandem with a similar stake from Singapore's state investment arm, Temasek. [FDI] [ODI]
Short Report: China and India: A comparison of trade, investment and expansion Strategies
Renfeng Zhao
Chatham House Friday 1 June 2007 1. Introduction This paper summarizes the main findings and conclusions of a one-day workshop convened in London in March 2007 by Chatham House and the Japan Economic Foundation.
China and India: Cooperation and Competition
Gareth Price, May 2007
Strategic China
Strategic China is on the Executive Committee of the 48 Group Club. The Club has some 300 members including many eminent individuals who have contributed over the years to Sino-British trade relations. In 1953 the 48 Group took the first trade mission to New China at a time when the British Government maintained a trade embargo.
Candidate has 'productive' US trip
08/03/2007 By Edwin Hsiao
Democratic Progressive Party hopeful for Taiwan's 2008 presidential election, Frank Hsieh, said he and his U.S. hosts held sincere and productive talks and understood each other's positions during his ten-day visit to the United States. Hsieh made the remarks at a televised July 30 press conference upon his return to Taipei. The former premier left July 20 for New York and made stops in Washington D.C., Detroit and Los Angeles. Hsieh said he visited numerous U.S. government agencies, including the State Department, Defense Department, National Security Council and Office of the Vice President.
Chairman Mao's Long Arm Strikes Korean Pet Shop
The signboard of a pet shop in Yongin, Gyeonggi Province which provoked a diplomatic incident by substituting Mao Zedong's picture for a dog. This picture was posted on Web portal xiangshu (http://www.xiangshu.com). A pet shop in Yongin, Gyeonggi Province has bowed to international pressure over a sign in its window that showed the head of a dog emblazoned on Tiananmen gate. The gate in fact bears the likeness of chairman Mao Zedong. According to China's Global Times, the shop has now removed the offending composite picture after the Cheoin-gu district office of Yongin City, responding to complaints from Chinese netizens, dispatched staff to the shop. The owner of the pet shop said, "I got a call from the Korean Embassy in China and the Foreign Ministry, asking me to remove the signboard. And Chinese students in Korea also called nonstop to protest saying that the signboard offends China's pride." The owner explained he had no intention of insulting China but simply thought the signboard, which also showed the Great Wall of China, would look cute. [ICT]
Protect Our Technologies From Competitors
The National Intelligence Service apprehended and handed over to prosecutors a former executive of a shipbuilding company who tried to pass on key Korean shipbuilding technology to China. The man is a former head of the technology planning team at Daewoo Shipbuilding & Marine Engineering. He is accused of copying blueprints for 69 vessels and a shipyard copying altogether 360,000 files worth W517.5 billion (US$1=W925) in research and development costs alone. Those files, if handed over to China, would have narrowed the technology gap between China and Korea by two to three years, while causing W35 trillion in damages to Korean shipbuilders over the next five years, shipbuilding experts estimated. At the end of last year, the man moved to a local ship-design firm as its vice president. That firm launched a joint venture with China's Qingdao city government to build a large shipyard.
Mt. Paektu, Ancestral Mountain of Korea
Pyongyang, August 1 (KCNA) -- Mt. Paektu, a famous mountain of Korea, has been called as an ancestral mountain from olden times. The mountain, which had been called as Pulham, Tothae, Thaebaek and Paek Mountains, was fixed as Mt. Paektu in the middle of the seventh century. In the light of its geological and geographical view, the mountain constitutes the origin of all the mountains and ranges of Korea.

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JULY 2007

Rise of 'Chaiwan' Threatens Korea's Tech Industry
Taiwanese tech companies are increasingly joining hands with Chinese manufacturers, forming a so-called "Chaiwan" economy in the global market.
Chen Shui-bian's Taiwan Independence Makeup
United Daily News editorial (Taipei, Taiwan, ROC) (A translation) July 26, 2007 KMT News Network A SUMMARY Frank Hsieh says that the "Join the UN under the name Taiwan plebiscite" campaign has already been launched. "Not even President Chen can call a halt to the process now." Frank Hsieh's comments in the US about the "Join the UN under the name Taiwan plebiscite" were akin to microsurgery. They were intended to draw a bright line between himself and Chen Shui-bian. Although Frank Hsieh signed the petition for "Join the UN under the name Taiwan plebiscite," his key phrase was "foreign policy is President Chen Shui-bian's prerogative." What he was actually saying was that the "Join the UN under the name Taiwan plebiscite" was Chen Shui-bian's pet project. Chen’s "Join the UN under the name Taiwan plebiscite" and Chen’s "Four Imperatives and One Non-issue" initiatives are not helpful to Frank Hsieh's election prospects. Nor are they helpful to the DPP's rational interests. All they do is apply a heavy and politically costly layer of make-up over the face of a corrupt Chen Shui-bian, transforming him into a "champion of Taiwan independence." Must Frank Hsieh pick up the tab for Chen Shui-bian? Must the DPP pick up the tab for Chen Shui-bian? Must the people pick up the tab for Chen Shui-bian?
China and the Two Koreas Clash Over Mount Paekdu/Changbai: Memory Wars Threaten Regional Accommodation
Yonson Ahn
Mount Paekdu (Korean), meaning “White-Topped Mountain”, or Changbai (Chinese), meaning “Forever White Mountain” straddles the border between North Korea and China. It has long flared as a hot spot in claiming national history, identity and territory involving China, Korea and earlier kingdoms in the region. It has also emerged as a source of contention between China and the two Koreas, North and South. China has recently moved aggressively to develop the Changbai area in Jilin Province on the Chinese side of the border. Plans include economic and infrastructural development including the Mt. Changbai Airport and the Mt. Changbai Eastern Railroad, both under construction. The railroad is a key to linking China’s largest nature preserve to Changchun (1) and to the promotion of domestic and international tourism. China has also filed a claim to make the mountain a UNESCO World Heritage Site.(2) There is even momentum behind a Chinese proposal to hold the Winter Olympic Games there in 2018. In addition, Chinese actions like the torch-lighting ceremony for the 2007 Asian Winter Games atop Mt. Changbai, the naming of schools after the mountain, and military operations in the area have exacerbated tensions between China and the two Koreas. The Asia Winter Games’ official song includes a paean to Changbai. The pressroom for the Games at Changchun in February 2007 provided pamphlets on Changbai Mount.(3) All these activities lay foundations for claims that the landmark is Chinese. [China Korea relations]
Competing Nationalisms: The mobilisation of history and archaeology in the Korea-China wars over Koguryo/Gaogouli
By Yonson Ahn
Abstract: This article explores how and why history and archaeology have been mobilised and utilised in nationalist projects in East Asia, especially in the case of the Koguryo dispute between Korea and China. Koguryo (Korean)/Gaogouli (Chinese), an ancient kingdom in the period between 37 BC and AD 668, encompassed a vast area from central Manchuria to south of Seoul. According to the “Northeast Project”, launched in China in 2002, Gaogouli was an ethnic regime in an ancient Chinese province. In contrast, Korean historians of nationalist persuasion view Koguryo as an ancestral state of the Korean historical tradition and a foundation of the national identity. Unity, continuity and coherence are claimed in both communities through invoking the history and culture of Koguryo/Gaogouli. Koguryo/Gaogouli relics which were put on the UNESCO World Heritage List in 2004 are pivotal in the contestation between China and Korea. In both, the ancient relics are held to show the distinctiveness of a national past linked to the present. This article argues that the contested history of Koguryo/Gaogouli should be examined as a site of historical hybridity between China and Korea, rather than being claimed as a site of exclusive national history. [[China Korea relations]] [Koguryo]
India's Interests at Stake in Relationship with China
Dr. Harsh V. Pant
30 July 2007
As India embarks on redefining its foreign policy priorities to match its growing weight in the international system, it has become imperative for Indian policymakers to learn from the country's past in order to frame appropriate policies for the future. The Central Intelligence Agency recently declassified its decades-old documents, referred to as the "family jewels," which included the CIA's own assessment of the reasons behind India's debacle in the 1962 Sino-Indian war. While the documents do not reveal any major new insight into the events, it reinforces some of the issues that India should not ignore.
Yet, contrary to what many in India might think, China is not a malevolent, sinister international entity out there to demolish India, but a state which is simply pursuing its own strategic interests in a hard-headed fashion on its way to great power status. It is time for India to realize that India's great power aspirations cannot be realized without a similar cold-blooded realistic assessment of its own strategic interests in an anarchic international system where there are no permanent friends or enemies, only permanent interests.
The Nightmare of POSCO's Indian Dream
POSCO is a great example of the power of the "gung-ho" spirit. In the late 1960s, a few young men were determined to build an iron and steel works on a sandy field near Yeongil Bay on Korea's east coast. They pushed for what seemed an impossible project, eating bowls of rice dusted with fine sand at each meal. They even pledged to jump into the East Sea if they weren't able to succeed. A considerable number of the country's modernization achievements were the outcome of this kind of determination.
Forty years later, in summer 2007, POSCO is dreaming of another miracle on the east coast of India, on the Indian Ocean.
Nonetheless, the project has now turned into a cause of great trouble. POSCO is not an exception. Many foreign companies have rushed to woo the Chinese market and its population of 1.3 billion. But they are leaving China one by one, because Chinese enterprises that have grown rapidly with government support dominate more than 70 percent of major domestic markets. The newcomers should have been prepared for this when they set up shop in China in the first place. Some people say POSCO is having a hard time in India because of the influence of Tata Steel, India's largest iron and steel corporation, and Lakshmi Mittal, the Indian-born steel king. But we can't give up at this point, can we? The gung-ho spirit is not all-powerful, but we expect POSCO to display its legendary determination again in India. [China competition] [Globalisation]
China Moves to Refurbish Damaged Global Image
Chang W. Lee/The New York Times
By DAVID BARBOZA Published: July 29, 2007 SHANGHAI, July 26 - After years of being accused by Western nations of making only token gestures to fight fake goods and months of complaints about the safety of its exports, China is taking extraordinary steps to change its image.
Last week, Beijing unveiled new controls aimed at fighting counterfeit drugs and substandard exports. High-ranking officials and regulators vowed to strengthen China's food safety system, tighten controls over chemical use by large seafood and meat producers, and create a system that holds producers more accountable for selling unsafe products. [IM] [Image]
Indian Police Kill 8 Protesters
* Top of _np.gif.html&goto=http://www.foxsearchlight.com/joshua By THE ASSOCIATED PRESS Published: July 29, 2007 Filed at 3:06 a.m. ET HYDERABAD, India (AP) -- Police opened fire on stone-throwing communist protesters in southern India, killing at least eight, officials said Sunday. The protest, held Saturday in Mudigonda, a small village in the southern state of Andhra Pradesh, was called by two Indian communist parties as part of a campaign to press the government to give land to the poor. As police approached a tent under which protesters were gathering, they were pelted with stones. The police responded by opening fire, said the state's home minister, K. Jana Reddy. [human rights]
China free
Wonsoo Yi Cartoon
Rise Of The Rupee
Tech companies and exporters are losing profits as the currency continues to rise
by Manjeet Kripalani and Nandini Lakshman
On July 20, a group of Indian businessmen gathered in Mumbai to listen to a presentation entitled "How to Deal with the New, Improved Rupee." Yet for this crowd—mostly smallish exporters of textiles and commodities—the rupee's 10% appreciation against the dollar this year feels more like a punishment than an improvement. Jamal Mecklai, the risk-management consultant giving the talk, explained that the currency's unprecedented show of strength is a sign of India's increasing importance in the global economy. "India has grown up," he said. And it has done so in a hurry. A key manifestation of globalization has been a rebalancing of the world's currencies, as the dollar has fallen to new lows and the euro has hit all-time highs. Few developments, though, have been as unexpected as the strength of the rupee, which since March seems to have turned from a perennial weakling into a surging up-and-comer.
No sector is more exposed to the effects of a strong rupee than the dynamic IT services industry, which brought in about $35 billion in export revenues last year. The top four IT companies—Tata Consultancy Services, Infosys Technologies (INFY), Wipro (WIT), and Satyam Computer Services (SAY)—are all complaining that the currency's strength is crimping margins. [ICT] [Offshoring] [Software]
China's Sovereign Rating Again Overtakes Korea
Global credit ratings firm Moody's on Thursday raised China's sovereign rating by one notch from A2 to A1. China is now placed in the same ratings group as Greece, the Czech Republic, Macao, and Slovakia, and has once again overtaken Korea. [China competition]
Airport agreement will reroute Chinese freight
Ferry across Yellow Sea will speed delivery July 26, 2007 Beginning late this month, Chinese trucks carrying freight to be shipped abroad from Qingdao can cross the Yellow Sea on a ferry and drive directly to Incheon International Airport before unloading. The Korean Transportation Ministry announced yesterday that it signed a memorandum of understanding with the government of Qingdao introducing a road feeder service. Qingdao is one of the industrialized cities with international ports along the east coast of China. By allowing Chinese trucks to come directly to the bonded area of Incheon International Airport, the airport can attract more freight from China, said the ministry. Sending freight through Incheon instead of the Chinese airports of Shanghai or Beijing, when shipping to New York for example, saves four to six hours of delivery time and $1,200 for every five tons, according to the ministry
China aids Barclays on ABN Amro
By Jane Croft and Kate Burgess in London and David Ibison in Amsterdam Published: July 23 2007 07:46 | Last updated: July 23 2007 21:17 Barclays on Monday revised its offer for ABN Amro to about €68bn ($94bn) after announcing it had persuaded China Development Bank and Singapore's Temasek to take stakes in Barclays, investing up to €13.4bn.
China’s Emergence as a Science and Technology Power and the Politics of Chinese-Japanese Cooperation
Kobayashi Tetsu
BEIJING--With more than two decades of market reforms under its belt, China has transformed into a trading powerhouse and the world's "factory." It is also making its presence felt in the worlds of science and technology. China's expenditure, in terms of purchasing power parity, along with its army of researchers, has already surpassed Japan's. In some fields, China is now the leading authority. And that has caused some concern in Europe and the United States. [China competition] [R&D]
Beijing keeps Islamabad honest
By Tarique Niazi
18 July 2007 China's relations with Pakistan, which are close and warm as never before, have come under severe strain lately from the growing militancy in Pakistan. The Pakistani military's storming last week of the Red Mosque (Lal Masjid) has been an important indicator of the tenor of the relationship. The most recent source of stress is the July 8 execution-style killing of three Chinese nationals who owned a small business in a town near Peshawar in North-West Frontier Province. The killings were widely seen as revenge for the government's crackdown on religious militants holed up in the Red Mosque in Islamabad.
Musharraf is often characterized as Washington's "man in Pakistan". But Islamabad's recent actions reveal more of a Chinese hand behind the scenes.
Female President Elected in India
Historic First Hailed as 'Special Moment' for Nation's Women By Emily Wax Washington Post Foreign Service Sunday, July 22, 2007; Page A14
NEW DELHI, July 21 -- Lawmakers elected India's first female president, officials announced Saturday, in a vote seen as a step forward for hundreds of millions of Indian women and girls who face bitter discrimination in everyday life. The position is largely ceremonial. But observers said the selection of Pratibha Patil, 72, in a vote by the national Parliament and state politicians, will widen the role of women in the country's often male-dominated political scene.
"This is a victory of the principles of which the Indian people uphold," said Patil, wearing her signature oversize glasses and a red and gold celebratory sari. As she waved a V-for-victory sign on television, marigolds and colored powders used in Hindu celebrations were tossed at her feet. Patil had been expected to win because of support from the governing Congress party and her deep political ties and friendship with Sonia Gandhi, leader of the party and the powerful Gandhi dynasty. Patil is a steadfast loyalist of the Gandhi family, which has long maintained a strong hold over Indian politics.
The office of the presidency has long been used to give underrepresented groups a voice; there have been three Muslim presidents and one Sikh.
How Microsoft conquered China
Or is it the other way around? Fortune's David Kirkpatrick goes on the road to Beijing with Bill Gates, who threw his business model out the window.
By David Kirkpatrick, Fortune senior editor July 17 2007: 9:58 AM EDT
China has 162 mln Internet users by end of June
www.chinaview.cn 2007-07-18 23:58:54
    BEIJING, July 18 (Xinhua) -- The number of Internet users in China hit an estimated 162 million by the end of June, with nearly 100 people a minute going online for the first time, the China Internet Network Information Centre (CNNIC) announced on Wednesday.
    An estimated 122 million Chinese have broadband access to the Internet, according to the 20th statistical report on China's Internet development issued by the CNNIC on Wednesday.
    One in every four Chinese Internet users, or 44.3 million, accesses the Internet by phone, largely due to lower mobile charges and about one third of users access the Internet primarily by wireless devices.     With Internet penetration rate reaching 12.3 percent, China had around 9.18 million domain names, including 6.15 million ending with "cn".
China says joint anti-terror drill to improve SCO security cooperation
www.chinaview.cn 2007-07-17 18:09:23
BEIJING, July 17 (Xinhua) -- A senior Chinese military official said here Tuesday that the upcoming joint military drill on combating terrorism, separatism and extremism will improve the security cooperation between members of the Shanghai Cooperation Organization (SCO). The drill, which is believed to be a test of SCO members' capability of conducting strategic consultations, battle planning, transportation and deployment of troops, "demonstrates the determination of SCO members in tackling new challenges and threats in the region," said an official with the Foreign Affairs Office of the Ministry of National Defense.
The exercise, dubbed "Peace Mission 2007", will be carried out in Chelyabinsk in Russia's Ural Mountains region and in Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region from Aug. 8 to 17. All six SCO members -- China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan -- will take part. [Russia China relations]
E.U.-China Partnership on the Galileo Satellite System
17 July 2007 W When the European Union and China agreed to cooperate to develop the E.U. Galileo Satellite System in 2003, the United States reacted with strong skepticism since Washington was against the sharing of sensitive dual-use technology (with civilian and military applications) with China. In the past, the United States had tried unsuccessfully to impede the European Union's ability to set up Galileo, which is an alternative to the U.S.-established Global Positioning System (G.P.S.). At the time, U.S. analysts questioned why Brussels was spending money (3.6 billion euros) to duplicate an existing system that was available "for free," and why it was eager to accept Chinese participation in the program [China confrontation] [US dominance]
In Role Reversal, China Blocks Some U.S. Meat
By Ariana Eunjung Cha and Renae Merle Washington Post Foreign Service Sunday, July 15, 2007; Page A01
SHANGHAI, July 15 -- China announced Saturday that it was blocking imports of some U.S. processed meat that showed signs of contamination, turning the tables on critics who in recent months have questioned the safety of Chinese exports and making good on a warning that it would apply greater scrutiny to food shipments entering its borders. The suspension affected some of the largest U.S. food companies, including Cargill Meat Solutions and Tyson Foods, the world's largest meat processor.
In recent weeks, Beijing has rejected a number of other U.S. products at its ports of entry, including health supplements, sugar-free drink mix and dried fruits such as raisins and apricots. The increasingly aggressive moves are raising concern that what started as a seemingly isolated investigation in March over contaminated pet food from China has trigged a broader trade skirmish.
Broken China
Beijing can't clean up the environment, rein in stock speculation, or police its companies. Why the mainland's problems could keep it from becoming the next superpower [Innovation] [China competition]
After Silence, China Mounts Product Safety PR Offensive
By Ariana Eunjung Cha Washington Post Foreign Service Saturday, July 14, 2007; Page A01
BEIJING -- Scanning the headlines in the Chinese press, it's easy to conclude that the global brouhaha over product safety is not about China -- but about America. Investigative reports in the state-run media delve into the case of an exploding cellphone purportedly made by U.S.-based Motorola that allegedly killed a young man. They warn consumers not to use contact-lens solution produced by U.S.-based Advanced Medical Optics, which has been linked to rare cases of blindness. And they play up recalls of U.S. beef.
Faced with mounting international concern over the safety of some of the products it exports, the Chinese government -- often perceived as defensive and clumsy in how it handles public relations -- is firing back.
Living a Half-Life While Waiting for Those Lost
Families in Divided Kashmir Left Wondering, Often for Years, About Loved Ones Taken by Indian Army By Emily Wax Washington Post Foreign Service Saturday, July 14, 2007; Page A12
SRINAGAR, India -- Jana Begum squatted on the floor of her small kitchen with a friend, confiding to her how her life felt like a kind of purgatory, year after year spent waiting for a husband who had vanished shortly after his arrest by Indian security agents five years ago. To this day, Begum said, she doesn't know the charges against her husband, a respected pharmacist and father of five. At 35, Begum is one of thousands of women who, in turbulent Indian-controlled Kashmir, are called half-widows: women who wait years and sometimes decades for husbands to come home, unsure if they are even alive. [Human rights]
China’s Information Revolution: Managing the Economic and Social Transformation
BACKGROUND Information and communication technology (ICT) has played a prominent role in China’s development strategies since the mid-1990s. However, as China’s development has entered a new stage, it requires an updated “informatization” strategy to reflect unprecedented economic and social challenges as well as opportunities. China’s Information Revolution: Managing the Economic and Social Transformation provides an overview of key enablers and building blocks for achieving China’s informatization priorities. The publication also shares insights into how e-government and e-business applications can contribute towards reducing China’s disparity to ensure a balanced and equitable progress for all. This report is the culmination of 18 months of strategic research and collaboration between a World Bank team and a number of Chinese experts, at the request of China’s State Council Informatization Office and the Advisory Committee for State Informatization. Statistics [ICT]
Chinese Economy Grows Even More Than Expected
China's growth is outstripping earlier estimates. The National Bureau of Statistics of China on Wednesday reported GDP grew 11.1 percent last year, topping its estimate of 10.7 percent early this year. It was the first time in 12 years that growth has topped 11 percent after 1994, when it recorded 11.8 percent. This year's growth rate from January to June has also tentatively been estimated at 11.1 percent.
The stellar figure is due to a virtuous cycle of an enormous trade surplus thanks to increased exports leading to investment in production facilities, which in turn boost exports. Another factor is investment worth more than US$60 billion a year by foreigners who bet on continued high growth spurred by the Beijing Olympics next year. China's trade surplus has kept up a stunning pace this year. During the first half, the trade surplus rose $112.5 billion, up a whopping 83.1 percent from the corresponding period last year. If the trend continues, China will overtake Germany at the end of this year to enjoy the world's largest trade surplus and become the world's second largest exporter after Germany. Wang Xinpei, a spokesman for the Chinese Ministry of Commerce, predicted a sustained increase in exports. "No matter how tough our trade balance policy, the world market wants Chinese goods," he said. [China competition]
China and Korea in the 21st Century
It was hot when I visited Beijing in early July. After a long time, I was able once again to talk with scholars from major Chinese think tanks about the world, East Asia and the Korean Peninsula. Yet considering the limited autonomy think tanks have in a socialist country, it was necessary to carefully gauge the way China identifies and resolves issues, rather than paying attention to the details of the scholars' views. It is crucial to have a correct understanding of what Chinese strategies for the 21st century are, and they are formulated by the political leaders who determine the course the think tanks take.
China Not Sole Source of Dubious Food
By ANDREW MARTIN and GRIFF PALMER Published: July 12, 2007 Black pepper with salmonella from India. Crabmeat from Mexico that is too filthy to eat. Candy from Denmark that is mislabeled.
At a time when Chinese imports are under fire for being contaminated or defective, federal records suggest that China is not the only country that has problems with its exports. In fact, federal inspectors have stopped more food shipments from India and Mexico in the last year than they have from China, an analysis of data maintained by the Food and Drug Administration shows. China has had much-publicized problems with contaminated seafood - including a temporary ban late last month on imports of five species of farm-raised seafood from China - but federal inspectors refused produce from the Dominican Republic and candy from Denmark more often. For instance, produce from the Dominican Republic was stopped 817 times last year, usually for containing traces of illegal pesticides. Candy from Denmark was impounded 520 times. By comparison, Chinese seafood was stopped at the border 391 times during the last year.
Reception Given to Mark Anniversary of DPRK-China Treaty
Pyongyang, July 10 (KCNA) -- The Korean Committee for Cultural Relations with Foreign Countries and the Central Committee of the DPRK-China Friendship Association hosted a reception at Yanggakdo International Hotel on July 9 on the occasion of the 46th anniversary of the conclusion of the DPRK-China treaty of friendship, cooperation and mutual assistance. [China-NK relations]
Rebel cleric shot dead as commandos storm mosque to end siege
Declan Walsh in Islamabad Wednesday July 11, 2007 The Guardian
Commandos killed the rebel cleric Abdul Rashid Ghazi yesterday, at the climax of a blistering battle for control of the besieged Red Mosque complex in central Islamabad. At least 58 others also died. After more than 20 hours of battle and dozens of casualties, Pakistan's Special Forces controlled most of the compound by last night, narrowing the fighting to pockets of resistance. Mr Ghazi, a university-educated cleric who tried to foist Sharia rule on the capital, was shot twice as commandos stormed his basement hideout. On refusing to answer calls to surrender, a second volley of bullets cut him down and killed him.
Mr Ghazi was the public face of a brief-lived Islamist rebellion which had brazenly defied President Musharraf's government in an attempt to install Sharia law on the Pakistani capital. Since January thousands of burka-clad women and stick-wielding students at his madrasas took to the streets, kidnapping prostitutes, intimidating movie store owners and branding western diplomats' wives as hussies for "spreading nudity" by wearing sleeveless shirts. When they abducted seven Chinese nationals working in a local massage parlour, it deeply embarrassed Gen Musharraf, before a key ally, and forced him into action. The crisis sparked deep international concern. The EU foreign policy chief, Javier Solana, said he was "gravely concerned" that fighting could spill over into neighbouring Afghanistan. After the killing of three Chinese nationals in Peshawar on Sunday, Beijing publicly urged Pakistan to protect its citizens.
China-India Clash Over Chinese Claims to Tibetan Water
Brahma Chellaney New Delhi — Sharpening Asian competition over energy resources, driven in part by high growth rates in gross domestic product and in part by mercantilist attempts to lock up supplies, has obscured another danger: Water shortages in much of Asia are beginning to threaten rapid economic modernization, prompting the building of upstream projects on international rivers. If water geopolitics were to spur interstate tensions through reduced water flows to neighboring states, the Asian renaissance could stall. Water has emerged as a key issue that could determine whether Asia is headed toward mutually beneficial cooperation or deleterious interstate competition. No country could influence that direction more than China, which controls the Tibetan plateau — the source of most major rivers of Asia.
Taiwan Leader Vows to Pursue Vote on Island's Name
Dismissing U.S. Objections, Chen to Press Ahead on Measure Affecting Application to United Nations
By Edward Cody Washington Post Foreign Service Sunday, July 8, 2007; Page A17
TAIPEI, Taiwan, July 7 -- President Chen Shui-bian said Taiwan will press ahead with a controversial referendum on whether the self-ruled island should apply for U.N. membership under the name Taiwan, dismissing U.S. objections as appeasement of China. Chen's defiant stand, outlined in frank language during an interview Friday, raised the prospect of a rocky period in Taiwan's relations with the Bush administration and a rise in tension across the volatile 100-mile strait separating Taiwan from mainland China.
New Chinese Tax Rules Could Shrink Korean Profits
The Chinese government's decision to reduce value-added tax rebates on exporters will affect Korean companies doing business there, the Korea Trade-Investment Promotion Agency (KOTRA) said. To encourage exports, China offered exporters tax refunds on the purchase of raw materials. But the government has since issued a new export tax refund policy, which went into effect July 1 and decreases tax refunds on 2,955 items by 2 to 13 percent. The measure is part of China's efforts to curb the excessive growth of low value-added industries like textiles, miscellaneous manufactured articles and minerals.
China expected to exceed Japan as top importer of S. Korean goods
China is expected to replace Japan as South Korea's number one importer this year on the strength of surging demand for steel and electronic parts, a report said Thursday
Chinese FM Winds Up His Visit to DPRK
Pyongyang, July 4 (KCNA) -- Chinese Foreign Minister Yang Jiechi and his party left here on July 4 after wrapping up their visit to the DPRK. During their stay here they visited Mangyongdae.
Australia, US Concerned by Chinese Power
&goto=http://www.foxsearchlight.com/joshua By THE ASSOCIATED PRESS Published: July 5, 2007 Filed at 4:06 a.m. ET CANBERRA, Australia (AP) -- Australia and a top U.S. military official expressed concern Thursday that China's rapid military buildup and use of a missile in space could add to instability in the Asia-Pacific, and backed a greater role for Japan in regional security. Releasing his government's first defense policy update since 2005, Prime Minister John Howard said China's economic rise was good for the world, but added a caution that it was also a pivotal player in several tense issues in the region.
Chinese FM Urges Kim Jong-il to Honor Commitments
Chinese Foreign Minister Yang Jiechi met with North Korean leader Kim Jong-il on Tuesday afternoon to discuss North Korea's denuclearization commitments, China's state-run Xinhua news agency reported from Pyongyang. It was Kim's first meeting with a high-ranking representative of his country's closest ally in nine months; the last to see the reclusive dictator was Chinese State Councilor Tang Jiaxuan, a special envoy of President Hu Jintao last October, right after North Korea's nuclear test. Yang told Kim two key agreements from six-nation denuclearization talks -- a Sept. 19, 2005 statement of principles and the Feb. 13, 2007 agreement on particulars -- must be implemented. The Chinese chief diplomat was quoted as expressing hope that all parties concerned "continue to take positive steps, fulfil their commitments and take vigorous actions in a comprehensive and balanced manner so as to push forward the six-party talks."
The North Korean leader acknowledged China's hard work in resolving problems on the Korean Peninsula. He added Pyongyang "values the traditional friendship with China and is willing to work with China to boost investment and trade ties on the basis of equality and mutual benefit," according to the agency. [Media] [Blame] [Agreement070213] [China NK relations]
Chinese foreign minister meets Kim Jong-il in Pyongyang
China's Foreign Minister Yang Jiechi met North Korean leader Kim Jong-il to deliver a personal message from Chinese President Hu Jintao, Pyongyang's official news agency said Tuesday. The North Korean News Agency (KCNA), monitored in Seoul, said the meeting took place later in the day, but did elaborate on the details of the verbal message from the Chinese president to Kim.
Tensions easing says Kim Jong-il
July 04, 2007 North Korea's reclusive strongman Kim Jong-il told visiting Chinese Foreign Minister Yang Jiechi yesterday he believes the Korean Peninsula's tense atmosphere is showing signs of easing, China's state-run media reported. Kim also said all sides should implement the Feb. 13 agreement to denuclearize the peninsula, Xinhua News agency said.
Kim Jong Il Receives Chinese Foreign Minister
Pyongyang, July 3 (KCNA) -- General Secretary Kim Jong Il Tuesday received Yang Jiechi, Chinese foreign minister, and his party on a visit to the DPRK. Yang conveyed the verbal personal message to Kim Jong Il from Hu Jintao, general secretary of the Central Committee of the Communist Party of China and president of the People's Republic of China, and presented the leader with a gift prepared by him. Kim Jong Il expressed thanks for this and conversed with him in a cordial atmosphere. Present there were Kang Sok Ju, first vice-minister of Foreign Affairs, and Liu Xiaoming, Chinese ambassador to the DPRK.
Talks between DPRK and Chinese FMs Held
Pyongyang, July 3 (KCNA) -- Talks between Pak Ui Chun, DPRK foreign minister, and Yang Jiechi, Chinese foreign minister, were held at the Mansudae Assembly Hall on July 3. Present at the talks were officials concerned from the DPRK side and from the Chinese side the party of the Chinese foreign minister and the Chinese ambassador to the DPRK. At the talks both sides exchanged views on boosting the friendly relations between the two countries and issues of mutual interest. The talks took place in a friendly atmosphere.
DPRK Premier Meets Chinese FM
Pyongyang, July 3 (KCNA) -- Kim Yong Il, premier of the DPRK Cabinet, met and had a friendly talk with Yang Jiechi, Chinese foreign minister, and his party who paid a courtesy call on him at the Mansudae Assembly Hall on Tuesday. On hand were Kim Yong Il, vice-minister of Foreign Affairs of the DPRK, and others and Liu Xiaoming, Chinese ambassador to the DPRK.
Made in China, Driven in USA
Chrysler to Help Bring Chery Cars To U.S. Showrooms By Sholnn Freeman Chery Automobile, a feisty newcomer to global carmaking, is on the verge of becoming the first Chinese company to crack the U.S. auto market. Yesterday, DaimlerChrysler said it finalized a deal with Chery and the Chinese government to export small cars made by Chery to United States and Western Europe. The deal, a broad framework for strategic cooperation, was signed today at a ceremony in Beijing. Chery cars will be sold under the Chrysler, Jeep or Dodge brand and are expected to go on sale in the next few years.
Essentially a state-owned enterprise with strong backing from local and central government, Chery was created in 1997 to help the economy of Wuhu, a city about 150 miles west of Shanghai. The company is viewed as a rebel in the Chinese auto industry. Chery constructed its first assembly line in secret, violating Chinese law. Its biggest competitive advantage is that it excels at manufacturing small, fuel-efficient vehicles at low cost.
Chinese FM Arrives Here
Pyongyang, July 2 (KCNA) -- Yang Jiechi, Chinese foreign minister, and his party arrived here today on the invitation of Pak Ui Chun, DPRK foreign minister. They were greeted at the airport by Kim Yong Il, vice-minister of Foreign Affairs of the DPRK, and others and Liu Xiaoming, Chinese ambassador to the DPRK, and staff members of the Chinese embassy here.
US-Taiwan FTA is Badly Needed
Publication Date?07/01/2007 Taiwan has been discussing a free trade agreement with the United States on and off for nearly a decade, but with little progress. This lassitude was widely ascribed to Washington's seeing Taiwan's position as politically, rather than economically, motivated. Taiwan has constantly sought to widen its acceptance as a state in the face of China's diplomatic blockade by doing the things that states do, such as entering into international trade agreements. When the idea of a US-Taiwan FTA was first raised, it was widely assumed that this was such a strategy, and therefore not taken terribly seriously. At the time Taiwan was about to enter the World Trade Organization (WTO), and it was thought that greater liberalization of Taiwan's trade would be gained through the WTO process. Now the WTO's Doha round has all but collapsed, many countries have sought freer trade by concluding their own bilateral agreements. According to the Asian Development Bank, 150 FTAs were either concluded or under negotiation last year. April this year alone saw the signing of an agreement between Japan and Thailand and another between the United States and Korea. The Washington-Seoul deal is likely to have a direct impact on Taiwan
Chinese foreign minister begins visit to North Korea
The Associated Press Published: July 2, 2007 SEOUL, South Korea: China's foreign minister arrived in North Korea on Monday for talks with his counterpart, the North's state media reported, as Pyongyang's promised nuclear disarmament is expected to be a key topic for their talks. Yang Jiechi was greeted in Pyongyang by Vice North Korean Foreign Minister Kim Yong Il, China's ambassador to Pyongyang Liu Xiaoming and other officials, according to broadcaster APTN. Yang's three-day trip to Pyongyang — his first there since he took office in April — comes as North Korea last week vowed to carry out its February pledge to shut down its main nuclear reactor in exchange for economic aid and political concessions. Yang's meeting with North Korean Foreign Minister Pak Ui Chun is expected to focus on the nuclear issue, including when to reconvene six-nation nuclear talks, according to South Korean media. [China-NK relations]
Korea and China explore free trade
July 02, 2007 A feasibility study to determine if Korea and China can benefit from a free trade agreement will be held in Seoul this week, the government said yesterday. The two-day talks, which kick off tomorrow, are focused on evaluating the effects of an open trade pact between the neighbors, the Ministry of Agriculture and Forestry said.
The Trouble With India
Crumbling roads, jammed airports, and power blackouts could hobble growth
When foreigners say Bangalore is India's version of Silicon Valley, the high-tech office park called Electronics City is what they're often thinking of. But however much Californians might hate traffic-clogged Route 101, the main drag though the Valley, it has nothing on Hosur Road. This potholed, four-lane stretch of gritty pavement—the primary access to Electronics City—is pure chaos. Cars, trucks, buses, motorcycles, taxis, rickshaws, cows, donkeys, and dogs jostle for every inch of the roadway as horns blare and brakes squeal. Drivers run red lights and jam their vehicles into any available space, paying no mind to pedestrians clustered desperately on median strips like shipwrecked sailors.
Military Power of the People's Republic of China 2007: A Report to Congress"
The National Defense Authorization Act for Fiscal Year 2000, Public Law 106-65, provides that the Secretary of Defense shall submit a report "on the current and future military strategy of the People's Republic of China. The report shall address the current and probable future course of military-technological development on the People's Liberation Army and the tenets and probable development of Chinese grand strategy, security strategy, and military strategy, and of the military organizations and operational concepts, through the next 20 years. [Military balance] [China confrontation]

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JUNE 2007

While Wuhan Is Blooming, Ulsan Is Withering
The city of Wuhan in China's Hubei Province is very similar to Ulsan in Korea in several respects. As Ulsan was once a poor fishing village, Wuhan was an inland village near the Yangtze River (sic). Wuhan has turned into a major automotive city that feeds central China. Wuhan's success is symbolized by Chinese carmaker Dongfeng Motor; Ulsan is represented by Hyundai Motor. But Wuhan is quite different from Ulsan this summer. On a recent visit, I found Wuhan a city in bloom. Businessmen, workers, and city residents were working hard to gain self-sufficiency in automobile technology and win recognition from the world. This is in stark contrast to Ulsan, a city of worries and frustrations caused by the Hyundai Motor union and its political anti-FTA strike. [China competition] [Blame]
Chinese deception, Nehru's naivete led to '62 war: CIA papers
27 Jun, 2007 BIG BLUNDER: CIA document says Zhou repeatedly conned Nehru by telling him that there was no border problem except for some "petty issues" (TOI Photo)
WASHINGTON: In revelations that could inject new mistrust between India and China and their efforts to resolve a long standing border issue, declassified CIA documents released this week extensively detail what the US saw as Chinese perfidy and Indian naivete that led to the 1962 war between the two sides. Three sets of documents on the Sino-Indian border dispute has been declassified by the CIA as part of new transparency efforts that also involved disclosing what has been dubbed "family jewels," describing covert CIA operations at home and abroad. One set of documents called the Caesar-Polo-Esau papers deal extensively with the communist regimes in the former Soviet Union and China, and the American reading of their policies. [China-India relations] [Border war]
Rice Hopeful US - India Pact Not Far Off
By THE ASSOCIATED PRESS Published: June 27, 2007 Filed at 9:33 p.m. ET WASHINGTON (AP) -- Secretary of State Condoleezza Rice on Wednesday acknowledged negotiations to conclude a nuclear deal with India were moving slowly, but she foresaw a deal by the end of the year. ''Wrapping up this agreement will open new doors of cooperation for us in the nuclear field,'' she told the U.S.-India Business Council. And, she said, it will open even more doors in business, science, agriculture and development -- and perhaps most importantly, strengthen international security. The outline of the agreement, worked out last year, calls for the United States to provide technology for civilian nuclear programs in India. Wrapping up the accord has been slowed over how use of the technology would be monitored in the absence of oversight by the U.N. International Atomic Energy Agency. [NPT] [Double standards] [China confrontation]
India: USS Nimitz Visit Raises Fears
Gov't tells the public that no nuclear warhead will be on board
M.G. Srinath (srinath)
Published 2007-06-28 13:33 (KST) Indians still bristle with anger at the crude gunboat diplomacy conducted by former U.S. President Richard Nixon when he sent then frontline aircraft carrier USS Enterprise to the Bay of Bengal in 1971 when India's victory in a war with Pakistan seemed certain. India refused to be intimidated. Although the event passed without incident, it left a deep wound on the Indian psyche that took many years of Washington diplomacy to heal.
Since then, many military ships and submarines, including nuclear-powered ones, from Britain, France, the U.S. and other countries have visited India as part of routine activity to promote goodwill and share experience. But the proposed "friendship visit" next week of the nuclear-powered aircraft carrier USS Nimitz to the southern Indian port of Chennai has reopened old wounds. It has also rekindled a debate on nuclear safety with allies of Indian Prime Minister Manmohan Singh over the granting of permission for the American military ship to berth.
China Lends A Hand
By Richard Holbrooke
Thursday, June 28, 2007; Page A25 BEIJING -- Three seemingly unrelated events may not constitute a trend. But they certainly deserve attention when they shed light on the relationship between the United States and China, which is fast becoming the most important bilateral connection in the world.
The first is the much-heralded breakthrough in Assistant Secretary of State Christopher Hill's negotiations with North Korea. After more than a year in which the six-party talks were suspended, North Korea returned to the table and agreed to disable its main nuclear reactor under the eyes of international inspectors.
This would not have happened without a change in Chinese policy toward North Korea. Two years ago, Beijing publicly criticized Washington's "lack of cooperation." But after North Korea detonated a nuclear device Oct. 9, Beijing started applying invisible but substantial pressure on North Korea, realizing belatedly that another nuclear neighbor was not in its interest. Once China's strategic interest was aligned with America's, it still took skillful bilateral diplomacy to make progress. There is a long road ahead, but this is a welcome diplomatic achievement for an administration that has had very few. [NK-China relations]
Rice wants India to dump NAM; pledges N-deal will be done
28 Jun, 2007 l 1225 hrs ISTlChidanand Rajghatta/TIMES NEWS NETWORK WASHINGTON: Pledging to get the India-US nuclear deal completed before the end of the year, Secretary of State Condoleezza Rice on Thursday invited New Delhi to ditch the non-aligned movement and join a new US-led global alliance of democracies.
Although she seemed to cite the names off-handedly in what was a prepared text, the exclusion of China and Russia, in the context of current US troubles with the two countries, was quite striking. Already, there is disquiet in Beijing over a US-forged Asian alliance, ostensibly involving India, Japan and Australia, aimed at isolating China. [China confrontation]
Chinese, Korean Carmakers Heading for Showdown in Philippines
Chinese carmaker Chery Automobile is set to begin large-scale exports to the Philippines in July. It will be the first time a Chinese auto company has exported its own models in volume without a foreign partner. As for partnerships, Japan's Honda Motor has been exporting its Fit subcompact to Europe since 2005. That car, also known as the Jazz, is built in China. Chery Automobile's debut will make the Philippines the first place outside of China where Korean and Chinese vehicles will compete head to head. If the Chinese cars are priced low enough, they could eat into the sales of Korean vehicles.
Book on History of Koguryo Published in DPRK
Pyongyang, June 25 (KCNA) -- The book "Story about Koguryo" is popular among experts and working people. The book introduces the history of Koguryo, which once existed as a powerful nation in the Orient for 1,000 years. It consists of "Foundation of Koguryo," "Emperor's Country Looks down the World," "Yon Kae So Mun and His Son" and others. It deals with important events and famous generals of Koguryo on the basis of historical data. It has an appendix on historical tradition of the Korean nation seen through the custom of the Koguryo people. The book was written by Prof. and Dr. Jo Hui Sung, director of the History Institute under the Academy of Social Science. He told KCNA: Koguryo once demonstrated its might in East Asia for nearly 1,000 years. But records of its history and its many material and cultural creations were severely destroyed by foreign invaders after its ruin. Therefore, the history of Koguryo had an eclipse like those of Paekje and Kaya which existed in the same time. The book "Samguksagi" (the history of the Three Kingdoms--Koguryo, Paekje and Silla) refers a little to the history of Koguryo and the tomb murals belonging to Koguryo show part of its cultural development. Even the historical materials were deprived of and severely destroyed by the Japanese imperialist aggressors during their occupation of Korea in the beginning of the 20th century. Japanese government-patronized historians extremely dwarfed the history of Koguryo, by writing that the Paleolithic era did not exist in Korea and Kojoson (Ancient Korea) was also established by a foreign exile. But no one can erase the history of Koguryo which turned a brilliant page in the Korean history with a time-honored history, efflorescing culture and strong national power. The book helps the readers get the history of Koguryo. .
On the North Korean border, a tale of two economies
By Kevin G. Hall | McClatchy Newspapers
* Posted on Tue, June 26, 2007 DANDONG, China - North Korea’s fragile, backward economy is on display here for gawkers on Chinese tour boats that traverse the Yalu river. The barren riverbanks, the absence of lights after dark and armed North Korean soldiers who prevent escapes suggest a country whose economy could hardly get worse. But in fact it did this year as a result of U.S.-led trade and financial sanctions, which followed North Korea’s test late last year of an atomic bomb, according to merchants and missionaries who deal with the reclusive, repressive nation. And then the slowdown reversed. The Bush administration’s efforts at isolation were apparently undercut when China, which has both geo-political and economic interests in neighboring North Korea, stepped in with more fuel and food deliveries, according to residents of Dandong. Now the Bush administration itself has reversed course, raising hopes for relief for the suffering 23 million North Korean citizens on the other side of the Yalu. [China-NK relations] [Sanctions]
Castles on Mountains of Koguryo
Pyongyang, June 20 (KCNA) -- Koguryo (277 B.C.-668 A.D.) in the Korean history existed as a powerful nation in the Orient for 1,000 years as it turned the whole country into an impregnable fortress with such strong defence facilities as castles on mountains. There were more than 1,000 castles in Koguryo, most of which were mountain walls. So, it was called a "country of mountain castles."
Stone-carved Astronomical Chart of Koguryo
Pyongyang, June 22 (KCNA) -- The stone-carved astronomical chart of the Korean nation is one of the comparatively oldest astronomical charts of the humankind. @People of Koguryo (BC 277 to AD 668) carved rich astronomical data, which they had observed for many years, on a flat stone about two meters length and 1.2 meters breadth at the close of the 5th century and the beginning of 6th century.
Shipbuilders Rush to China Despite Tech Leak Concern
By Cho Jin-seo Staff Reporter South Korean shipbuilders are expanding their manufacturing facilities abroad on the back of the vibrant market, despite nationalistic criticism that such overseas investments may cause inadvertent technology transfer to strong competitors such as China. [China competition] [FDI] [Outsourcing]
Look out locals, here come the Chinese buses
June 16, 2007 In a sign of future competition from a giant neighbor, the first Chinese-made motor vehicle to be imported into South Korea ? a double-decker bus ? will start operation next month. Big Motors, a tour-related vehicle importer, announced yesterday that it will have the Chinese bus serve tourist routes in Seoul. The bus is made by a subsidiary manufacturer of the German-based bus and coach maker Neoplan, which is a unit of the German MAN.
The Chinese bus has high price-competitiveness, said the importer. The double decker from China costs about $510,000 while a similar model from the German mother company would be $720,000.
Lee warned that once domestic demand in China lags, then Chinese companies will turn their interest to foreign markets. “Not many Chinese auto manufacturers are exporting their cars. Their quality is still lower than other global competitors. But the bigger reason is that the Chinese market is big enough to consume their production.” China is already the world’s third largest automobile manufacturer. “It will not be not long before Chinese-made Volkswagens and Audis will be in the Korean market,” said Lee. [China competition]
Documents Show U.S. Pressure on Taiwan
By THE ASSOCIATED PRESS Published: June 15, 2007 Filed at 3:15 p.m. ET TAIPEI, Taiwan (AP) -- As Washington struggles to end nuclear programs in Iran and North Korea, startling details have emerged from declassified U.S. government documents regarding its success in halting Taiwan's budding nuclear project in the 1970s.
The recently declassified documents show the administrations of former Presidents Ford and Carter pressured Taiwan to end its quest for sophisticated equipment, fearing it would be used to make a nuclear bomb.
The pressure paid off -- although not without setbacks -- and the Taiwanese government abandoned its plans, according to the documents, which were obtained under Freedom of Information Act guidelines by a private group of researchers affiliated with George Washington University. The documents were shown to The Associated Press. [Nuclear weapons]
Rain Strikes First China Ad Deal
By Lee Hyo-won Staff Reporter Rain's star power will reign in China as the hallyu star models for Fuma, a local confectionary company. The one-year contract is the singer's first deal with a mainland Chinese brand. [Hallyu]
Ethnic Koreans in Yanbian
(454) People walk across the street in Yanji, the Yanbian Korean Autonomous Prefecture in China’s northeastern Jilin Province. / Korea Times By Andrei Lankov In 1952, the nascent Communist government of China declared that a large area in the country’s northeast would become the Yanbian Autonomous Prefecture, a home for the Chinese Koreans. The newly established district occupied an area of 42,700 square kilometers, just a bit less than half the area of South Korea. Its population was largely Korean: in 1953 ethnic Koreans constituted 60.2 percent of the total. They were children and grandchildren of migrants who crossed the border into Manchuria between the 1880s and early 1940s. As was customary in Communist states, the government went to great lengths, creating and supporting Korean language media and education. Every bit as boring as their Chinese counterparts of Mao’s era, the ethnic Korean newspapers and radio delivered the same ideology packaged in Korean.
Chinese Grads 'Go West' to Serve in Provinces
By Edward Cody
Washington Post Foreign Service Friday, June 15, 2007; Page A16 AWATI, China -- Clad in an official-looking white smock, the newly minted doctor leaned over the Uighur peasant woman lying facedown on a consultation table. One by one, he removed several glass suction cups he had fixed to her lower back to ease her pain.
The Go West program, as it is known, encourages freshly graduated teachers, engineers, agronomists, administrators and doctors to pledge one or two years to the cause. The program reflects a long-standing party doctrine encouraging students to take their knowledge to the countryside and share it with peasants -- a policy that led to compulsory service and massive disruptions during the Cultural Revolution. But it also fits smoothly into a government campaign to develop China's remote western reaches more swiftly and integrate their ethnic minorities into an economic and political system run by the majority Han Chinese.
China Aims to Top U.S. In Cyberspace: U.S. General
By REUTERS Published: June 13, 2007 Filed at 2:11 p.m. ET WASHINGTON (Reuters) - China is seeking to unseat the United States as the dominant power in cyberspace, a U.S. Air Force general leading a new push in this area said Wednesday. "They're the only nation that has been quite that blatant about saying, 'We're looking to do that,"' 8th Air Force Commander Lt. Gen. Robert Elder told reporters. Elder is to head a new three-star cyber command being set up at Barksdale Air Force Base in Louisiana, already home to about 25,000 military personnel involved in everything from electronic warfare to network defense. The command's focus is to control the cyber domain, critical to everything from communications to surveillance to infrastructure security.
Elder described the bulk of current alleged Chinese cyber-operations as industrial espionage aimed at stealing trade secrets to save years of high-tech development. He attributed the espionage to a mix of criminals, hackers and "nation-state" forces. Virtually all potential U.S. foes also were scanning U.S. networks for trade and defense secrets, he added. "Everyone but North Korea," he said. "We've concluded that there must be only one laptop in all of North Korea -- and that guy's not allowed to scan" overseas networks, Elder said. [Sanctions] [Cyberwar] [Arrogance] [China confrontation]
Korea's Exports to China Changing
The list of Korea's leading exports to China has been changing rapidly, from steel and petrochemical products to semiconductors, electronics and nonferrous metal goods. Analysts attribute the change to lowered Chinese tariffs, growing Chinese consumption and the rapid development of Chinese industry.
China’s trade surplus overshadows talks
By Richard McGregor in Beijing Published: May 11 2007 06:09 | Last updated: May 11 2007 21:10 China’s trade surplus grew in April, setting the scene for a tense meeting in Washington this month aimed at tackling bilateral disputes. China recorded a surplus of $16.9bn (£8.5bn), more than double that of March, Beijing announced on Friday. For the first four months of the year, the surplus reached $63.3bn, 88 per cent higher than for the same period in 2006. More important than the monthly figure is the continued acceleration of the trend of the past two years, in which exports have outpaced imports with China’s main trading partners, the US and Europe, by a significant margin. Stephen Green, an analyst at Standard Chartered bank in Shanghai, issued a report on Friday predicting that China’s current account surplus would hit $400bn this year, equal to about 12.8 per cent of GDP.
China’s Rise and the Reorganization of the Asian Regional and World Economy
Guillaume Gaulier, Francoise Lemoine and Deniz Ünal-Kesenci
Japan Focus introduction. China's share in international trade more than tripled from less than 2% in 1985 to about 7% in 2005. By 2004, China was the world’s third largest exporter and it is expected to become the leader by the beginning of the next decade. Gaulier, Lemoine and Ünal-Kesenci provide new perspective on China’s surge and its repercussions for the restructuring of Asian and world economy and trade.
What’s Your China Fantasy?
By David M. Lampton, James Mann Page 1 of 4 Posted May 2007
Nearly two decades after the Tiananmen Square clampdown, China remains a tightly controlled state ruled by the Communist Party. But just how repressive is the Middle Kingdom today, and is it becoming any more free as it grows in economic clout? Veteran reporter James Mann has his doubts—and his controversial new book accuses U.S. leaders and prominent scholars like David M. Lampton of peddling unduly optimistic assumptions about China’s rise. In this often heated FP debate, Lampton and Mann go toe-to-toe on the uncertain political future of the world’s most populous country.
Z-Park: China's Silicon Valley
Beijing's high-tech park is an incubator for innovation in technology, business, and financing, as well as a testing area for liberalized government policies by Claire-Juliette Beale Innovation June 5, 2007, 11:29AM EST text size: TT
The new Chinese line of "Regenerist" packaging for Olay, developed at Procter & Gamble's R&D Center in Z-Park in the northwest of Beijing.
Just before the Chinese New Year in February, Olay launched a new look for its popular Regenerist line of premium anti-aging skin-care products. Featuring an elongated bottle reminiscent of those of upscale rivals, with a minimal but powerful use of color, the idea was to offer a posh look—at an affordable price. The packaging has apparently been a hit. Olay would not release figures, but James Kaw, director of Procter & Gamble's (PG) research and development center in Z-Park (short for Zhongguancun Science Park), China, which created the new packaging, is happy. "The upgraded line delivered superior experience and 'first moment of truth' advantages for the Olay counters," he says—in other words, the designs made a visual impact on the shop floor and then sold. "The products are the most elegant designs within the global franchise." A Local Center for Ideas But perhaps more interesting is the story of where the designs came from. As is happening more frequently, they were the result of collaboration between P&G's local Chinese team and its unidentified local packaging supplier. And while the new packaging was intended specifically for the Chinese market, local R&D is also being applied to creating technologies and products that will serve global markets. No mere basic research or "indigenization," this research is designed to affect the world. P&G's strategy conforms nicely with Chinese President Hu Jintao's plan, announced in 2006, to turn China into an "innovation-oriented" country by 2021.
India's Life of the Party
They call UB Group and Kingfisher owner Vijay Mallya "the King of Good Times," but he's also enjoying a new level of corporate respect
Asia June 7, 2007, 7:46AM EST text size: TT by Nandini Lakshman
It's no wonder they call Vijay Mallya the "King of Good Times," because the Indian tycoon sure knows how to throw a party. A week after bagging Scotch whisky maker Whyte & Mackay Ltd. for $1.2 billion on May 16, the 51-year-old chairman of India's UB Group Ltd. staged one of his epic bashes aboard his 311-foot yacht, the Indian Empress, anchored off the French Riviera. Among the 300-odd guests were steel baron Lakshmi Mittal and other Indian industrialists, European aristocrats, and celebrities such as American hip-hop artist Jay-Z. A DJ flown in from Mumbai spun Bollywood tracks. And while Indian dishes such as fish Amritsari and Tandoori chicken were served, the wine that flowed all
Chinese Food Floods Korean Market
By Jane Han Staff Reporter If you feel you're seeing more and more Chinese imports like pepper and black sesame on the local market, you're right. To be more exact, about six times more than 10 years ago. Annual food imports from China recorded 66,920 cases of 3.237 million tons in 2005, up 6.4 times than the amount in 1995 (10,393 cases totaling 356,000 tons) when the World Trade Organization (WTO) was created, a researcher at the Korea Institute for Health and Social Affairs (KIHASA) said Sunday.
Activists Work Hard to Thwart Beijing Olympics
Pamela Sciantarelli looks at China's treatment of the people of Tibet and North Korea
Ever since winning the bid to be the hosts of the 2008 Summer Olympics six years ago, China has been under more fire by human rights activists than ever. Issues of sweatshop labor, absence of freedom of speech, religious and thought persecution, and sex trafficking are just a few banners that activists are taking up in attempts to thwart success in the Games. [Manipulation]
Agreement Signed between DPRK and China
Pyongyang, June 5 (KCNA) -- An agreement of the 46th meeting of the Cooperation Committee of the Korea-China Border River Navigation, was inked here on Tuesday. Present there were members of delegations of the Korean and Chinese sides to the committee. It was signed by Ri Nam Jong, head of the delegation of the Korean side, and Zhang Yong, head of the delegation of the Chinese side.
Korea's Trade Surplus With China Shrinking Fast
Korea’s trade surplus with China is dwindling faster than ever. The Korean Embassy in China on Monday said Korea recorded US$5.27 billion in trade surplus with China in the first four months this year, down $1 billion from the same period last year. In 2006, Korea posted a trade surplus of $20.9 billion with China, down $2.4 billion from the previous year. This marks the first time that the trade surplus with China has dropped since 2001
North Korea and the China Model: The Switch from Hostility to Acquiescence
By Mika Marumoto The global community has plainly noticed the critical role played by the People’s Republic of China (PRC) in inducing change in North Korea’s diplomatic behavior, particularly with respect to the recent international crisis created by North Korea’s pursuit of a nuclear weapons program. Less attention has been given, however, to China’s powerful influence over North Korean behavior on the economic front. As it turns out, China’s influence on North Korea in the economic sphere, while subtle, has been considerable, extending beyond the simple empirical fact that China is the most important investment and trade partner for North Korea. China has, in fact, had an important impact on North Korean domestic economic policy, as a model and as a catalyst for the modest changes that have taken place despite North Korea’s extreme regime rigidity and limited state capacity. [NK China relations] [China model]
Chomsky on India-Pakistan Relations
Michael Shank | May 22, 2007
Noam Chomsky is a noted linguist, author, and foreign policy expert. On April 26, Michael Shank interviewed him about relations between India and Pakistan. This is the second part of a two-part interview. The first part, on the Iraq War, the World Bank, and debt, can be found . Here

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MAY 2007

Chiang Kai-shek Memorial Hall renamed
Publication Date:05/25/2007 By June Tsai
The 27-year-old Chiang Kai-shek Memorial Hall, a major landmark in Taipei City, was renamed National Taiwan Democracy Memorial Hall May 19. Initiated by the central government, the renaming has evolved into a fierce debate, with the Taipei City Government claiming the act violated the law and the Cabinet defending the move. In a speech to mark the unveiling of the hall's new name, President Chen Shui-bian said that renaming the landmark was to bid goodbye to Taiwan's authoritarian past. The date for the unveiling ceremony was chosen, Chen explained, because "exactly 58 years ago on May 19, the Kuomintang regime officially declared martial law in Taiwan, which lasted 38 years."
A Shining Model of Wealth Without Liberty
By James Mann Sunday, May 20, 2007; Page B01 The Iraq war isn't over, but one thing's already clear: China won. As the United States has been bleeding popularity and influence around the world, China has been gaining both. That's largely because it has been coming into its own as the first full-blown alternative since the end of the Cold War to Washington's model of free markets and democracy. As the U.S. model has become tarnished, China's has gained new luster. For authoritarian leaders around the world seeking to maintain their grip on power, China increasingly serves as a blueprint. We're used to thinking of China as an economic miracle, but it's also becoming a political model. Beijing has shown dictators that they don't have to choose between power and profit; they can have both. Today's China demonstrates that a regime can suppress organized opposition and need not establish its legitimacy through elections. It shows that a ruling party can maintain considerable control over information and the Internet without slowing economic growth. And it indicates that a nation's elite can be bought off with comfortable apartments, the chance to make money, and significant advances in personal, non-political freedoms (clothes, entertainment, sex, travel abroad). [China confrontation] [China competition] [China model]
Global Steel Makers See Gold in India
Eastern India is shaping up as a new battleground for the global steel industry. Korean steel giant POSCO plans to build a steel plant in the region with an annual capacity of 12 million tons. India's rapid economic growth is fueling strong local demand for steel and iron and the eastern region, with its reserves of 10 billion tons of iron-ore, seems to have the solution
Indian tourists worth more to London than Japanese
Julia Finch Monday May 7, 2007 The Guardian Indian visitors to London spent more than Japanese tourists for the first time last year - underlining the scale of the emerging Indian middle class and the strength of the Indian economy. Figures from Visit London show that tourists from India spent £139m last year - up from £107m a year earlier and £78m in 2003. About 212,000 Indians visited London last year, up from 130,000 in 2003. At the same time Japanese tourists - for so long regarded as part of the scenery at the capital's tourist attractions - are in decline. Some 230,000 Japanese nationals visited London last year, spending a total of £123m, compared with the 434,000 who came to London in 2000.
From China to Panama, a Trail of Poisoned Medicine
May 6, 2007 By WALT BOGDANICH and JAKE HOOKER The kidneys fail first. Then the central nervous system begins to misfire. Paralysis spreads, making breathing difficult, then often impossible without assistance. In the end, most victims die. Many of them are children, poisoned at the hands of their unsuspecting parents. The syrupy poison, diethylene glycol, is an indispensable part of the modern world, an industrial solvent and prime ingredient in some antifreeze. It is also a killer. And the deaths, if not intentional, are often no accident. Over the years, the poison has been loaded into all varieties of medicine - cough syrup, fever medication, injectable drugs - a result of counterfeiters who profit by substituting the sweet-tasting solvent for a safe, more expensive syrup, usually glycerin, commonly used in drugs, food, toothpaste and other products. Toxic syrup has figured in at least eight mass poisonings around the world in the past two decades. Researchers estimate that thousands have died. In many cases, the precise origin of the poison has never been determined. But records and interviews show that in three of the last four cases it was made in China, a major source of counterfeit drugs. [Counterfeit]
How to Approach the China–North Korea Relationship
by David L. Asher, Ph.D.
October 10, 2006Heritage Lecture #969 (Delivered September 14, 2006) I appreciate this opportunity to appear today (September 14, 2006) to discuss China’s relationship with the Democratic People’s Republic of Korea and China’s role in addressing the DPRK’s weapons of mass destruction (WMD) and missile programs. I speak to you as someone who spent a considerable amount of time in the first term of the Bush Administration focused on North Korea and its relationship to the People’s Republic of China (PRC), serving as the Senior Advisor for East Asian and Pacific Affairs, as North Korea Working Group Coordinator at the State Department, and as a participant in the Six-Party Talks. However, particularly for these reasons, I am mindful that my remarks should not in any way be interpreted as current administration policy or that I be seen as representing the views of the Department of State, Department of Defense, or any other part of the government. These views are mine alone. I want to make five points regarding the China– DPRK relationship and how we should approach it. [China NK relations] [US NK policy]

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APRIL 2007

China Becomes Japan's No.1 Trade Partner
[Analysis] FY06 figures show deepening economic interdependence
Hisane Masaki (hmasaki) Published 2007-04-26 03:14 (KST) China became Japan's largest trading partner in fiscal 2006, which ended on March 31, replacing the United States for the first time since the end of the Second World War, according to preliminary figures released on Wednesday by Japan's Finance Ministry. Japan's trade with China, excluding Hong Kong, rose 16.5 percent in fiscal 2006 from a year earlier, totaling 25.42 trillion yen (about $213.6 billion), while that with the U.S. increased 10.3 percent to 25.16 trillion yen ($211.4 billion). The trade data are measured on a customs-cleared basis before adjustment for seasonal factors and given on a yen-denominated basis.
Oil Workers' Deaths a Wake-Up Call for Globalizing China
By Edward Cody Washington Post Foreign Service Wednesday, April 25, 2007; 10:52 AM
BEIJING, April 25 -- The killings of nine Chinese oilmen in Ethiopia's desolate Ogaden Desert have provided a bloody reminder that China's worldwide pursuit of raw materials has taken it into some rough neighborhoods where goodwill proclamations may not be enough to avoid getting caught up in local conflicts. Exposure to the military and political struggles that convulse Africa is one of the prices this fast-developing country is paying for its growing power and profile on the world stage. It is a new sensation for most Chinese, who are used to considering their country an economic actor that, unlike traditional powers, avoids interference in the political and military affairs of foreign nations.
In addition to the nine killed, Chinese authorities reported, seven Chinese oil technicians were kidnapped by the ethnic Somali rebels who attacked in the desert of eastern Ethiopia shortly after dawn Tuesday. The seven joined a growing list. Already this year, 16 Chinese oil workers have been kidnapped in Nigeria and a Chinese engineer was killed and another injured in Kenya. The question facing President Hu Jintao's government Wednesday was how to better protect the 4 million Chinese who have been sent abroad by the government and private or government-run businesses to staff diplomatic and commercial activities. In addition, the growing value of Chinese investments in places like Ethiopia has created an interest for the Beijing government in preserving the stability of governments with which the deals were signed. [Globalisation] [Imperialism]
South Korea uses TV dramas in history war with China
By Jon Herskovitz Reuters Tuesday, April 24, 2007; 7:14 PM
SEOUL (Reuters) - South Korea is fighting a battle with China over ancient history using one of the most powerful weapons in its arsenal -- sappy TV dramas watched by hundreds of millions of viewers in Asia. The dispute is over whether a 2,000-year-old kingdom, whose lands covered much of the Korean peninsula as well as parts of China, was an ancient Korean royal house or a vassal of China.
At stake is national pride in South Korea where the ancient origins of the Korean people have long been overshadowed by the histories and cultures of neighboring China and Japan. "The Koguryo issue may be one of the smaller problems that China has but it is everything for Korea. Koguryo symbolizes the identity of Korea," said Kim Woo-jun, a professor at the Institute of East and West Studies at Yonsei [media]
Korea Seeks Closer Military Ties With China
BEIJING _ South Korean Defense Minister Kim Jang-soo arrived in Beijing on Monday to discuss setting up military hotlines, preventing Chinese vessels from illegally fishing in South Korea's western waters and other issues of mutual concern.
Korean Peninsula envoy named
By Guo Ji (China Daily) Updated: 2007-04-21 09:32 China has appointed 54-year-old former ambassador to Norway Chen Naiqing as its special envoy on Korean Peninsula affairs, according to the Foreign Ministry. Chen, a professional diplomat, joined the Foreign Ministry in 1974 and has been the ambassador to Norway since 2003.
Her predecessor Li Bin was ambassador to the Republic of Korea (ROK) before being appointed envoy to Korean Peninsula affairs in September 2005. The appointment of Chen, who works as a close aid to Vice-Foreign Minister Wu Dawei, is expected to speed up the process of resolving the nuclear issues of the Democratic People's Republic of Korea (DPRK). Also on Friday, the DPRK told the UN nuclear watchdog it would invite its inspectors back into Pyongyang as soon as it confirms that funds frozen at a Macao bank have been unblocked, the official KCNA news agency said. [BDA]
Hyundai Joint Venture in China Building New Sedan
Beijing Hyundai Motor, a joint venture between Hyundai Motor and the Beijing Automotive Industry in China, said it plans to independently build a new mid-size sedan to be released in China in 2010. The project will be developed at Beijing Automotive's new R&D center which is under construction and should be done in May 2008. A Chinese engineer formerly with GM in the U.S. was appointed by Beijing Automotive as the head of the new R&D center. [Technology gap]
The human cost of cheap high street clothes
Dan McDougall in New Delhi and Jamie Doward Sunday April 22, 2007 The Observer
Two of Britain's leading retail chains are selling clothing made by child slaves, an Observer investigation reveals today. The exposé raises serious questions about this country's soaring demand for low-cost clothing and has triggered angry calls for retailers to take far greater care in sourcing garments. In a network of mud-bricked sweatshops in the lawless Haryana area of New Delhi, India, this newspaper found dozens of children cramped together producing clothes for the UK high street. [Human rights] [IM] [Globalisation]
Widening Aisles For Indian Shoppers
APRIL 30, 2007 GLOBAL BUSINESS Widening Aisles For Indian Shoppers Big retailers are jostling to replace millions of small merchants with chain stores
It's a scene that would be positively ho-hum in any U.S. supermarket: Shoppers carefully select perfectly ripe tomatoes from a bin, place them in a plastic bag, weigh them on a digital scale, then slip the bag into a clean shopping cart. But what's no big deal for Americans is unusual in India. The store is a newly opened Reliance Fresh produce shop in the southern city of Hyderabad. With 200 different types of fruits and vegetables displayed along brightly lit, air-conditioned aisles, the compact store is a revelation for many middle-class Indians. "It's good to shop here—the cleanliness, the prices—everything," says Sarah Khan, a burka-clad shopper with two children in tow. A retail revolution is sweeping India. For decades, Indians have largely relied on kirana stores—tiny neighborhood shops—and produce markets, where the fruit and vegetables are often well past their prime. But Reliance Industries Ltd. and other Indian conglomerates are changing that. All told, investors both local and foreign plan to spend more than $25 billion over the next five years to change the way Indians shop. The prize? A retail market that is expected to surge to $637 billion by 2015 from some $300 billion today. [IM]
Korea Cautious on Free Trade Talks With China
South Korea is poised to spur its free trade agreement (FTA) talks with China but there are several stumbling blocks. Korea had hoped to sign a free trade deal with the world's fourth largest economy before clinching the pact with the United States as China displaced the U.S. as Korea's No. 1 trading partner in 2003. But several aides to President Roh Moo-hyun including Trade Minister Kim Hyun-chong strongly proposed pushing ahead with FTA talks with the U.S. instead of China, according to sources. Reports by the U.S. Congressional Research Service (CRS) also pointed out the necessity of signing an FTA with Korea as soon as possible in a bid to tackle a Korea-China FTA.
Bullet trains join fastest in the world
By Xin Dingding (China Daily/Xinhua) Updated: 2007-04-18 06:49
Nationwide, 140 pairs of high-speed trains with a speed of 200 km per hour or a faster speed will begin to hit the railways on Wednesday. The number will increase to 257 by the end of this year. Numbered D460, the train left Shanghai on 5:38 a.m. and is expected to arrive in Suzhou 39 minutes later. With today's sixth railway speedup, China will join the ranks of countries with high-speed rail services. Trains will be able to run at speeds of up to 200 kph on some 6,003 km of track, and on some sections, the maximum speed will increase to 250 kph. "That length (6,003 km) exceeds the total amount of rail lines capable of accommodating trains at that speed (200 kph) in nine European countries," said Vice-Minister of Railways Hu Yadong.
Chinese market represents a lifeline for struggling movie producers
April 17, 2007 Ilbo] The Korean film industry is making rapid inroads into China. In the short term, it is a way to boost growth in the local film market. In the long term, it is part of a joint effort to branch out into the world market. China's film market has been growing at 30 to 40 percent a year by revenue, and thus Korean filmmakers are anxious to find Chinese partners
China Leans Less on U.S. Trade
By KEITH BRADSHER Published: April 18, 2007 GUANGZHOU, China, April 16 - At booth after booth at China's main trade fair this week, the refrain from Chinese business executives is the same: the American market is not as crucial as it used to be.
Instead, Chinese producers of everything from socket wrenches to sport utility vehicles say, their fastest growth these days lies in Europe, Africa, the Middle East, South America and elsewhere in Asia - in other words, practically anywhere other than the United States. So it is throughout China. With ample support from the Beijing government - including a flurry of trade missions to Africa and assistance with trade fairs in Germany, Australia or someplace in between - Chinese companies are poised to expand into the markets of many of the world's rapidly growing economies. In some cases, they are running directly into American competitors.
Beijing's Big Push As anti-Americanism grows, China is learning the value of good PR and beating the United States at its own game.
By Joshua Kurlantzick Newsweek International April 9, 2007 issue - Last week Chinese president Hu Jintao arrived in Russia for a three-day visit. Remarkable as the trip itself—not long ago, Chinese leaders rarely left home—was the way Hu was feted by this former enemy. Russia has declared 2007 the "Year of China," and plans to hold hundreds of China-related business, educational and sports events in the upcoming months. Hu and Russian President Vladimir Putin presided over the opening of a massive new Chinese-culture exhibit in Moscow and pledged to build a series of cooperative energy projects. They also agreed to work toward aligning their stances at the United Nations.
Putin's bear hug was no anomaly, and though done for good strategic reasons, also reflects Russian public opinion. Even as relations between Moscow and Washington continue to sour, China is growing more popular than ever; a major public-opinion poll last year found that most ordinary Russians now think China has "a positive impact on the world" and that the United States has a negative one. And Russians are far from alone in these sentiments. Over the last five years, while anti-Americanism has surged around the globe, Beijing has worked hard to ingratiate itself in Asia, Latin America and Africa. The name of this game is soft power: making China and its culture as attractive as possible to foreign publics, not just their leaders. For years, Washington has dominated the field. But Beijing's new outreach—through foreign aid, investment, deft diplomacy, tourism and education—is starting to best American efforts. Ordinary people across the planet now view China more warmly than they do the United States. [Soft power] [China confrontation]
China Is Spiriting Away N.Korea's Resources
KDB Research Institute, an affiliate of Korea Development Bank, said in its latest report on Chinese investments to North Korea that Beijing's influence was expanding over the North's economy, requiring measures to be taken by South Korea. Chinese capital accounted for 43.7 percent of foreign direct investments to North Korea in 2005, up sharply from just 4.6 percent in 2002. In money terms, Chinese investments to North Korea rose tenfold over that period, from US$1.5 million to $14.37 million. The amount of Chinese capital that has entered North Korea without being properly reported is estimated to be far higher. What's interesting is that 70 percent of the Chinese investments are focused on mining iron, copper and molybdenum. A representative example is China's purchase for 7 billion yuan of the rights to mine North Korean iron ore in Musan for 50 years. Also increasing are Chinese investments in North Korean ports and highways to transport minerals. For example, China invested 30 million euros in the expansion of North Korea's port of Najin, obtaining a 50-year lease to use the facility. Aside from missiles and weapons of mass destruction, mineral resources are practically the only export products North Korea can sell on the international market. And those resources will be depleted after China is finished with them 50 years later. North Korea did not hand over the rights to those assets at a reasonable price. They've been sold for a bargain. These common resources of the Korean people, which will one day be used to build a unified Korea, are being handed over to the Chinese in such a helpless manner. We're seeing a repeat of an embarrassing incident that happened 100 years ago, when we handed over rights to mine gold in Pyongan Province and logging near Mt. Baekdu to Western powers for a bargain. Chinese products control more than 70 percent of the North Korean market. The North Korean economy is being rapidly incorporated into the Chinese economic sphere. That's why there are people who say North Korea is becoming China's fourth province in the northeast, after Liaoning, Jilin and Heilongjiang provinces. If you look at the amount of economic assistance to North Korea, South Korea does not lag behind China. But South Korea has almost no influence over North Korea's economy. The only achievement South Korea has made in terms of North Korean resource development is a graphite mine in Hwanghae Province by the South's Korea Resources Corporation. In order to stop the tragedy of North Korea being relegated to the status of China's next northeastern province and to prepare for post-unification of the Koreas, Seoul must focus on material gains for the Korean people, rather than generosity in its economic cooperation efforts with the North. [China-NK relations]
China Investing Heavily in N.Korean Resources - Report
Last year a Chinese company took a 51-percent stake in Hyesan Youth Cooper Mine in Yanggang Province, North Korea. Hebei-based Luanhe Industrial Group now has the right to develop the mine for the next 15 years. North Korea also sold a 50-year development claim to the Musan iron mines, Asia's largest open-air mine, to China's Tonghua Iron & Steel Group. Since 2006, North Korea has sold the rights to develop more than 10 mines to Chinese firms. KDB Research Institute, an affiliate of Korea Development Bank, has raised concerns with a report released Wednesday that details China's intensive investment in North Korean natural resources. According to the report, since 2002 China has invested US$13 million (US$1=W932), more than 70 percent of its total investment in North Korea, in iron, copper and molybdenum mines. The major investors come from the three northeast provinces of Heilongjiang, Jilin and Liaoning. They have moved the focus of their investment from small-scale, commercial opportunities to strategic deals to secure energy resources, the report said. { China-NK relations} [Minerals]
Surrendering Korea With a Smile
Photos of North Korean leader Kim Jong-il smiling brightly inside the Chinese Embassy in Pyeongyang are having a strange effect on the minds of South Koreans. On Sunday, Kim visited the Chinese Embassy, accompanied by an entourage of high-ranking officials, including Workers' Party Secretary Kim Ki-nam, First Director of the KWP Central Committee Yi Yong-chul, First Vice Foreign Minister Kang Sok-ju, and Vice Minister of the Armed Forces Kim Jong-gak. There he joined Chinese Ambassador Liu Xiaoming and embassy staff to celebrate the traditional Chinese Lantern Festival on the first full moon of the Lunar New Year. In photos released by the Chinese Embassy, the North Korean leader is either sitting across Ambassador Liu and his wife, with a wide smile on his face or engaged in a friendly conversation. The key North Korean officials are gathered nearby, their hands politely folded on their laps and their gazes fixed on the two men. [China-NK relations]
China's Colonization of North Korea
It's hard to see ahead in a big earthquake. It takes time for the dust to settle and the view to clear. That is what Japan's reaction to the Feb. 13 six-party accord on North Korea's nuclear program suggests. The assessment of Japanese experts of the pact, including the fact that Japan won't have to shoulder any of the aid burden, has been mixed. But a common feature has been discussion of China's role in the resolution of the North Korean nuclear crisis and thereafter. That was clear at an informal meeting of Japanese experts on the Korean Peninsula a while ago. "Though the U.S. and North Korea stood in the limelight in the Feb. 13 pact, the leading players were in fact the U.S. and China in their competition over the future of Northeast Asia," said a participant who delivered a keynote paper. "No problem can be resolved until America recognizes that North Korea is wholly a tributary nation of China." [China-NK relations]
A new, dynamic relationship between S.K.-China
[Editorial] Korea and China have built a very dynamic relationship in the 15 years since they established diplomatic relations. China is Korea's largest trading partner and Korea is China's fourth. Both nations are closely cooperating on issues relating to North Korea. The summits that are held between the two at least once a year always take place in a friendly atmosphere. The press conference in Seoul held yesterday by Korean president Roh Moo-hyun and Chinese prime minister Wen Jiabao showed you that relations have entered a new phase.
LG.Philips Will Move Assembly Lines to China
By Cho Jin-seo Staff Reporter LG.Philips LCD will gradually move its assembly lines from Korea to China to cope with the growing pressure on its manufacturing costs, the company's CEO Kwon Young-soo said Tuesday. Kwon said that it is inevitable for the company to depend more on China's cheap labor as prices of liquid crystal display (LCD) panels are rapidly dropping, making them an everyday commodity with slim profit margins. ``We need to move our module factories to China as soon as possible. It will also help create synergy in logistics, since most TV and PC makers have factories there,'' Kwon said in a meeting with reporters in Seoul. ``There is no need for the module factories to be in Korea.''
Roh and Wen set to meet for talks on North, trade
April 10, 2007 Chinese Prime Minister Wen Jiabao is scheduled to visit South Korea today for a summit with President Roh Moo-hyun, the Blue House said yesterday. "During his official visit until Wednesday, Wen will hold talks with Roh on South Korea-China relations, a peaceful settlement of the North Korean nuclear issue and other regional issues," said a Blue House official who was not named. "Wen will also meet with South Korea's prime minister and political and government leaders and attend the opening ceremony of the Korea-China Friendship Year, designed to celebrate the 15th anniversary of bilateral diplomatic ties," he said.
US Shadow over China-Russia Ties
By M K Bhadrakumar
[In recent weeks Japan Focus has highlighted tensions in the US-China relationship, notably Richard Tanter's account of The New American-led Security Architecture in the Asia Pacific and Paul Rogers' The United States, China and Africa. M K Bhadrakumar's geostrategic analysis approaches the issues from an alternative perspective which highlights the weakness of the China-Russia relationship, and a comprehensive deepening of US-China ties. Japan Focus.] On March 22, even as Chinese President Hu Jintao was preparing to leave on a state visit to Russia, an unusual visitor arrived in Beijing. Marine General Peter Pace, chairman of the US Joint Chiefs of Staff, was embarking on a four-day official tour of China.
China's foreign-policy priorities are moving further away from the heyday of the Sino-Russian strategic partnership circa 2006 [US China relations]
Should Korea Rush Into Free-Trade Talks With China?
Korea and China are moving swiftly toward negotiations on a bilateral free trade agreement. China's courtship of Korea has intensified since Seoul clinched an FTA with the U.S. last Monday, with Chinese Prime Minister Wen Jiabao expressing hope last Thursday that an FTA between Beijing and Seoul can be concluded "as soon possible. But Seoul should go into talks with its eyes open given that the impact on the nation's agricultural and technological competitiveness could be much greater. [FTA]
Mittal & Son
An inside look at the dynasty that dominates steel
Stanley Reed Deep inside the Beaux Arts Palace in Luxembourg that serves as headquarters of steel giant Arcelor Mittal (MT ), a half-dozen men in their forties and fifties listen intently as plant managers from around the world file in to make presentations. This is no bunch of lightweights: Almost everyone at the table has decades of experience in the steel industry. The lone exception is 31-year-old Aditya Mittal, the baby-faced chief financial officer and son of the founder and chief executive, Lakshmi N. Mittal. But in this room full of veterans, he's the one who's really calling the shots. When Louis Schorsch, who heads the company's operations in the Americas, brings up the delicate topic of personnel problems at one important plant, it's Aditya Mittal who responds. "Feel free," Mittal says impassively, "to change the management
Korea, China to Set Up Military Hotline
South Korea and China will establish military hot lines between their Navy and Air Forces. A Chinese source on Wednesday said Chinese Premier Wen Jiabao will sign a joint statement with President Roh Moo-hyun to that effect during an official visit to Seoul which begins on April 10. The Chinese source, who requested anonymity, described establishment of the hotlines the initial step in bilateral military cooperation, predicting it will help prevent clashes between the two countries over illegal fishing in the West Sea.
Waking up to high quality made-in-China
By Hong Liang (China Daily) Updated: 2007-04-03 06:58 Pride of ownership has become a cliche frequently cited to explain aficionados paying big money for something that's as unnecessary as an ornate wristwatch or as obsolete as a mechanical range-finder camera. But behind this cliche lies a passion that we can all share, a deep respect for, and appreciation of, excellence in workmanship. It is manifested in the uncompromising quality of the product, which may seem to others outrageously overpriced and laughably impractical. At a camera market in Shanghai one Saturday afternoon, I was introduced to pride of ownership in the form of a $200 ball head for a tripod mount, which was satiny in both touch and operation. An experienced photographer would certainly appreciate the precision of its movements and the rigidity of its locking mechanism. Assuming that it was an import, I enquired about its country of origin. Pointing to the "Made in China" engraved on the rim of the metal base plate, the shopkeeper, a middle-aged man, said blandly that the product was fabricated in a small Shenzhen factory well-known in the industry for its meticulous attention to quality. "Made in China" has been generally taken to mean mass-produced, low-tech and low-priced merchandise. But there are pockets of excellence, like this little Shenzhen factory, in the country's amazingly vast and uniformly dull industrial landscape. [IM]
Mobilizing Transnational Korean Linkages for Economic Development on China's Frontier
By Outi Luova
China’s coastal regions have received impressive financial and organizational resources through overseas Chinese networks and international capital generally. China’s land borders are also linked to transnational communities, thanks to the networks of ethnic minorities who live there. This article introduces the mobilization of the Korean minority’s transnational ethnicities in the service of local economic development. China’s well-established structure for the utilization of overseas Chinese resources serves as a frame of reference. The analysis focuses on foreign investment, donations, and remittances—resources that are widely regarded as the most important development input provided by the overseas Chinese. The regional focus is on Yanbian, a Korean autonomous prefecture in Jilin Province in Northeast China, which has enjoyed a measure of success in attracting Korean investment in step with burgeoning China-South Korea economic and political ties. But it has also faced significant challenges. [FDI] [China Korea]
WB: China's 'demographic dividend' to end in 2010
(Xinhua) Updated: 2007-03-25 09:44 BEIJING -- China's economic growth is set to slow in 2010 when the dependent population rises to a level that cancels out the country's "demographic dividend", which has existed since the mid-1960s, according to a recent World Bank global development report. The dependency ratio - the gap between the working population and those too young or old to work - in China was at its lowest in 1968, allowing the country to spend less on dependent groups and more on economic development. China's advantageous population structure has contributed to 27 percent of economic growth, a similar figure to that in Japan and Singapore, but a country's demographic dividend usually lasts for 40 years until the aging problem looms. Official statistics show China currently has 144 million people who are over 60 years old, accounting for 11 percent of the 1.3 billion population. But the number will reach 160 million in 2010, 200 million in 2015 and 400 million in 2044, which will result in huge pressures being exerted on the pension and healthcare systems [Ageing society]
Credit Suisse: Chinese consumer goods market to rank second behind U.S. by 2015
BEIJING, March 23 (Xinhua) -- China will overtake Japan, Germany, Britain and Italy to become the world's second biggest consumer goods market behind the United States by 2015, according to the findings of a survey by Credit Suisse, one of the world's leading investment banks. The Swiss-based bank estimates that Chinese consumption will account for 14.1 percent of the total consumption among major economies in 2015, while the U.S. consumption will account for 37.7 percent.
Late Chinese leader Mao Zedong's second son dies
Mao Anqing, the second son of late top Chinese leader Mao Zedong, died on Friday in Beijing at the age of 84. Mao Anqing's mourning hall was set up at the Beijing's Western Hill service center. Mao Anqing, born in 1923 in central China's Hunan Province, was sent to Shanghai together with his elder brother Mao anying and younger brother Mao Anlong after their mother Yang Kaihui was killed in 1930 by the rival warlord. In 1936, Mao Anqing and Mao Anying were sent to study in Moscow. Mao Anqing returned to China in 1947 and then joined the Communist Party of China (CPC). He has worked as a Russian translator in the Publicity Department of the Central Committee of the Communist Party of China since 1949. He has translated a dozen of masterpieces of Marxism and Leninism and some books on political science. He was the only surviving son of Mao Zedong.

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MARCH 2007

China on the March
by Ashton B. Carter and William J. Perry 03.01.2007 TWENTY YEARS from now, will China be a friend or foe of the United States? Certainly, China's youngest generation will influence the answer. It controls future policies, the pace of internal development, domestic stability and whether there is a crisis over Taiwan. Yet America's response is also important; the wrong actions could turn China against us.
The Day China Overtook Korea in Shipbuilding
British shipping industry analysts say Chinese shipyards took the top spot in January and February in terms of global orders, accounting for 49 percent of total orders worth 7.8 million compensated gross tons. Over the same period, Korean shipyards were able to win only 2 million CGT, or half of what the Chinese won. This is the first time Chinese shipyards overtook Korean ones in terms of orders. Korean shipbuilders have held the top spot since beating Japanese shipyards in 1999. [China competition]
China Snatches Natural Gas From Under Korea's Nose
The government's mid and long-term plan to diversify energy import sources has met an unexpected obstacle since China is about to buy all natural gas in wells in Burma's offshore area. The wells were explored and developed by Daewoo International and the Korea Gas Corporation with a 70 percent stake. Korea hoped to secure one more direct energy import source as part of its plan to reduce its reliance on Middle Eastern energy. But the Burmese government's decision to sell all the gas to China deals a devastating blow to Korea's plan. The Burmese well holds a gas reserve of 4.5 to 8.5 trillion cubic feet, the largest among overseas gas reserves Korean companies have developed.
South Korea, India Open Arms Sale Talks
By Jung Sung-ki Staff Reporter Senior defense officials from South Korea and India on Monday opened their first-ever talks on cooperation in weapons sales, the Defense Acquisition Program Administration (DAPA) said Monday. The meeting is a follow-up to a memorandum of understanding on defense acquisition cooperation signed in September 2005, the office said in a statement. Lee Sun-hi, commissioner of the DAPA, represented South Korea at the five-day meeting, while K. P. Singh, India's secretary for defense production, led the Indian delegation, it said in a statement. ``The two sides will discuss ways to cooperate on the development and export of 5,000-ton frigates, armored vehicles, military trucks, K-9 howitzers and so on,'' a DAPA spokesman said, on the condition of anonymity. [Arms sales] [Double standards] [Proliferation]
State Council gives go-ahead to develop large passenger jets
China's plan to design and build airplanes that can carry more than 150 passengers, and compete with Airbus and Boeing, has been given the official green light from the State Council, China's cabinet, said sources close to the project on Sunday. [China competition]
In Macau, casino tycoon's daughter tries to escape his long shadow
By Tim Johnson McClatchy Newspapers MACAU - For decades, gambling tycoon Stanley Ho controlled all the casinos in this betting haven, which helped him amass one of the world's larger fortunes even as he battled allegations of connections to underworld figures. Ho's monopoly on gambling in Macau now is fading. Macau opened the door to competition five years ago, and big foreign gaming firms are rushing in with new casinos. And just as Las Vegas once cleaned itself up, this former Portuguese colony near Hong Kong on China's coast has followed suit. It's beefed up its police, jailed criminal bosses and recast itself as a fun and convention destination. U.S. gaming regulators have a lingering question, however: Have Stanley Ho and his empire of family businesses also changed their ways?
Stanley Ho also operates a casino in Pyongyang, North Korea, where he has long-standing ties, a matter that sparked a New York-based lobby group, Family Focus Coalition Against Casino Gambling Expansion, to fight the Ho-MGM Mirage partnership.
Japan, Australia to sign defense pact in Tokyo
By Isabel Reynolds Reuters Tuesday, March 13, 2007; 2:26 AM TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe was set to sign a ground-breaking defense pact with Australian Prime Minister John Howard on Tuesday that both leaders have emphasized is not aimed at reining in China. The agreement will make Australia a closer security ally of Japan than any country except the United States. [China confrontation]
Firms venture into North Korea
BEIJING - Chinese auto maker Brilliance Auto recently signed an agreement with PMC of South Korea on jointly launching an assembly plant in North Korea. The North Korean facility will be Brilliance Auto's third after its operations in Egypt and Vietnam. Brilliance Auto is neither the first nor the most active of the Chinese auto makers making direct investments abroad. Quite a few have already done or are doing so. Among them are Chery, Geely, Jianghuai, Chang'an, Great Wall, and BYD Auto, which have launched greenfield auto plants abroad, and Shanghai Automotive and Nanjing Automotive, which have invested abroad through merger and acquisition. [FDI]
Commentary The Frankenstein Alliance
Emanuel Pastreich
| March 9, 2007 Editor: John Feffer, IRC Foreign Policy In Focus www.fpif.org If you read U.S. newspapers through a security lens, you might get the impression that Washington is well on its way to containing China economically, politically and militarily. China is portrayed in the media as America’s enemy of choice: the 2006 Quadrennial Defense Report states explicitly that “of the major and emerging powers, China has the greatest potential to compete militarily with the United States and field disruptive military technologies that could over time offset traditional U.S. military advantages absent U.S. counter-strategies.” In response the United States is working closely with Japan, Australia, New Zealand, South Korea and
Clearly the United States is having trouble deciding what to think about its rival. China is simultaneously an adversary and an ally, an attraction and a threat. The prevalent explanation for this schizophrenic U.S. view of China is that, although the two nations have common interests around the globe, strategic concerns and cultural differences lead to divergent approaches. A more compelling explanation is that China and the United States have fashioned an economic alliance that both pulls the two countries together and, because of the logic of competition, pushes them apart. [China confrontation]
China’s Strategic Southeast Asian Overture
By David Fullbrook
BANGKOK - If all goes to plan, China will for the first time ever in July host joint military exercises with troops from the 10-member Association of Southeast Asian Nations (ASEAN), the strongest indication yet that Beijing’s recent economic charm offensive toward the region is starting to pay real strategic dividends. Beijing extended the invitation during last month’s ASEAN summit, innocuously for peacekeeping training and disaster-zone management and reconstruction.
China is implementing what appears to be a two-phased strategy toward the region, characterized first by promoting growing economic and investment linkages and now by offering limited military assistance. It’s a well-calculated gambit aimed at stealing a march from the United States, specifically through the development of competing linkages and personal relationships with individual ASEAN members’ militaries. China’s strategic overtures obviously have the US on edge.
N. Korea's nuclear envoy meets his Chinese counterpart
North Korea's nuclear envoy met his Chinese counterpart here Friday to prepare for a fresh round of six-nation talks on the North's denuclearization slated for March 19, a report said. According to China's Xinhua News Agency, Kim Kye-gwan briefed Wu Dawei on the outcome of his meeting with Christopher Hill, the U.S. chief envoy to the multilateral talks on ending Pyongyang's nuclear weapons program.
Beijing Debriefed by N. Korean Negotiator Over Nuke Progress
By Park Song-wu Staff Reporter Kim Gye-gwan, North Korea's chief nuclear negotiator, arrived in Beijing late Thursday to discuss with his Chinese counterparts on the progress made in his talks with the United States, Chinese state media reported on Friday.
China warns distrust tests N.Korea nuclear talks
Reuters Friday, March 9, 2007; 5:55 AM BEIJING (Reuters) - Deep distrust is challenging progress toward ending North Korea's nuclear weapons program, China's envoy to six-party disarmament talks said on Friday, following discussions with North Korea on a nascent deal. Chinese Vice Foreign Minister Wu Dawei, ring-master in the talks on Pyongyang's nuclear future, said he had hopes of progress in implementing a February 13 agreement offering North Korea aid and improved security in return for first steps to dismantling its atomic facilities within 60 days.
But Wu warned that steps forward would not be easy as the two Koreas, China, the United States, Japan and Russia wrangle over how to proceed. "The countries involved suffer a serious lack of trust among them. That's the biggest problem the six-party talks must face," he told the official Xinhua news agency in an on-line interview (www.xinhuanet.com).
Pyongyang's Nuke Envoy Says China Using N.Korea
North Korea's Vice Foreign Minister Kim Kye-gwan reportedly told North Korea specialists in the United States that China is "only trying to use" North Korea. Kim was in the U.S. for talks on normalizing bilateral ties. According to a diplomatic source, Kim made the remark during a welcome luncheon last Saturday and in a seminar on Monday, sponsored by the National Committee on American Foreign Policy (NCAFP) and the Korea Society. China has no great influence on North Korea, he was quoted as saying, adding the U.S. should not pin too great hopes on China in finding solutions to the nuclear problem. The chief nuclear negotiator said the U.S. over the last six years relied on China for the solution to the nuclear issue. "What has it achieved? We have test-fired missiles and conducted a nuclear test, doing what we wanted to do. China has solved nothing," the source quoted him as saying. Pundits say Kim apparently wanted to stress to U.S. officials the importance of bilateral talks between Washington and Pyongyang. One North Korea expert in China said Kim finally got a chance to say what the North has long wanted to tell the U.S. about China. "This was a strong message that North Korea wants direct talks with the U.S.," the expert said. [Bilateral] [China-NK relations]
China's Colonization of North Korea
It's hard to see ahead in a big earthquake. It takes time for the dust to settle and the view to clear. That is what Japan's reaction to the Feb. 13 six-party accord on North Korea's nuclear program suggests. The assessment of Japanese experts of the pact, including the fact that Japan won't have to shoulder any of the aid burden, has been mixed. But a common feature has been discussion of China's role in the resolution of the North Korean nuclear crisis and thereafter. That was clear at an informal meeting of Japanese experts on the Korean Peninsula a while ago. "Though the U.S. and North Korea stood in the limelight in the Feb. 13 pact, the leading players were in fact the U.S. and China in their competition over the future of Northeast Asia," said a participant who delivered a keynote paper. "No problem can be resolved until America recognizes that North Korea is wholly a tributary nation of China." [China-NK relations]
The New New World Order
Daniel W. Drezner From Foreign Affairs, March/April 2007
Summary: Controversies over the war in Iraq and U.S. unilateralism have overshadowed a more pragmatic and multilateral component of the Bush administration's grand strategy: its attempt to reconfigure U.S. foreign policy and international institutions in order to account for shifts in the global distribution of power and the emergence of states such as China and India. This unheralded move is well intentioned and well advised, and Washington should redouble its efforts. Daniel W. Drezner is Associate Professor of International Politics at the Fletcher School of Law and Diplomacy at Tufts University and the author of "All Politics Is Global." [Realignment]
Photos of Tibet in the early1940's
In Lanzhou and presumably in Qinghai along they way, they encountered Chinese armies stationed on the uneasy frontier between Tibet and northeastern China. There was a great deal of friction along the border between the Chinese and Tibet in 1942 and 1943, and Chinese troop movements were made to intimidate the Tibetans. A group of photos depicts the Americans in the company of Chinese Nationalist army officers; others depict Chinese soldiers in training. Few of the published sources include any images of this part of the expedition. The expedition succeeded in its stated purpose of exploring a route and the Tibetan willingness for "Trans-Tibet Transport" of military supplies to China. This route was not, however, adopted by the Allies, probably because it intersected with the Tibetan and Chinese conflict over control of Tibet. The US interests were with its ally, the Chinese. The Tibetans were willing to cooperate especially when the US representatives suggested that the Tibetans should represent themselves at a Peace Conference. The Tibetans seem to have taken that that as an indication that the US looked favorably on their their independence. Apparently Roosevelt and others were disinclined to upset the Chinese by supporting this, and suggestions are made that Tolstoy was a bit too "free-lance" in his offers. The Chinese were leery of transporting good through Tibet from the beginning: they had originally refused to grant permission even for the exploratory mission. Apparently they were concerned that it would have strengthened the British sphere of operations northward from India into Tibet, as well as providing an opportunity for Britain and the US to deal directly with the Tibetan government. Richardson suggested in 1945 in his secret "Tibetan Precis" that the expedition's "principal object appears to have been to examine the possibility of constructing a motor road from India to China, but this was not disclosed to the Tibetan Government." (Richardson, High Peaks p. 603)
N. Korean leader receives 'verbal message' from China's president, report says
North Korean leader Kim Jong-il visited the Chinese embassy in Pyongyang on Sunday and received a "verbal personal message" from China's President Hu Jintao, a news report said Monday. The North's official Korean Central News Agency said Kim's visit was made at the invitation of the Chinese ambassador to North Korea, Liu Xiaoming, but the report did not provide information about the message.
EU-India trade pact stumbles
By Jo Johnson in New Delhi Published: March 4 2007 22:03 | Last updated: March 4 2007 22:03 Indian objections to the inclusion of a standard "human rights and democracy" clause in a proposed free trade agreement with the European Union have emerged as a serious stumbling block, the Financial Times has learnt. The row is a setback for the ambitious agenda set at the EU-India summit in Helsinki in October last year, when both sides pledged to deepen economic and political ties. "This clause would, of course, be a deal-breaker," Kamal Nath, India's commerce minister, said in an interview. "This is meant to be a specifically targeted trade and investment agreement, which it will not be if other elements come into it."
New Delhi argues that the "essential elements" clause conflicts with India's longstanding position that economic agreements should not be "contaminated" by political riders. "India suspects that such clauses provide protectionist cover," said Pradeep S.?Mehta, of Consumer Unity & Trust Society, an Indian trade think-tank. [Human rights]
NK Defectors in South Denied Chinese Visas
By Lee Hyo-won Staff Reporter One North Korean defector after another is being denied entry into China, the Association of North Korean Defectors in Seoul said on Sunday. In 2005, the Ministry of Unification coined the term ``saetomin'' for North Korean defectors settled in South Korea. It means ``those with hopes for a new life in a new place.'' Domestic travel agencies have reported cases in which these legal Korean citizens are unable to obtain Chinese visas, whether for business or pleasure.
Firms Urged to Target China Consumer Market
By Lee Hyo-sik Staff Reporter The state-run export financier has urged Korean exporters to more aggressively explore the Chinese consumer market as the world's fastest growing economy is shifting its focus to expanding its domestic market from increasing outbound shipments. The Export-Import Bank of Korea (Eximbank) said yesterday in a report that Korean companies should make more efforts to advance into the Chinese consumer market, rather than build factories there and ship goods to other markets, as the business environment for manufacturing and shipping operations has deteriorated. Labor costs have increased at a rapid pace over the past few years in China and the Chinese government has taken away many incentives, including tax breaks, from foreign businesses, chipping away at the profitability of Korean companies operating there. Eximbank said the Chinese government has been trying to curb its ballooning trade surplus to avoid possible trade disputes with the United States and other countries. As a solution, China has worked to expand its local consumer base to strike balanced economic growth between exports and the domestic consumption sector
India market news
Australia-India economic relationship gaining momentum
Passage from India: bank switches its customer calls back to UK
· Lloyds TSB union hails reversal as 'victory' · Current account holders can ring local branch Jill Treanor Saturday March 3, 2007 The Guardian Lloyds TSB, the UK's biggest provider of current accounts, is bowing to customer demands and moving calls back to the UK from a service centre in India. The bank will even allow all of its current account customers to ring their local branches instead of a call centre in India which unions claim is unpopular. This marks a U-turn for the bank which has routed its calls through India since 2004. By allowing customers to call branches directly, Lloyds is also beginning to unravel a policy which began in 1994 when it opened its first call centre. [IM]
U.S. Urged to Reject Taiwan Missile Sale
By THE ASSOCIATED PRESS Published: March 3, 2007 Filed at 9:54 a.m. ET BEIJING (AP) -- China pressed visiting Deputy Secretary of State John Negroponte on Saturday to reject a proposed sale of missiles to Taiwan, the self-ruled island that Beijing claims as its own territory. Negroponte was visiting Beijing on a three-nation Asian tour focused on North Korea and regional security. In his meetings with Chinese officials [Arms sales]
Documentary about White Terror features interviews with victims
By June Tsai ROC Council for Cultural Affairs released a documentary film to commemorate the 60th anniversary of the February 28 Incident and the 20th anniversary of the lifting of martial law in Taiwan. The CCA called a press conference Feb. 8 to publicize the film. The CCA also unveiled a computer-generated model for a new memorial park, where the film would become a part of its exhibition once it opened, according to the CCA. Featuring former political prisoners, the film offered a reminder to audiences that anyone we encounter could have suffered from political persecution, said Chen Rong-sian, the film's director, who was formerly employed by the Public Television Service. Titled "Love of Taiwan," the documentary shows victims telling stories of the repression they endured for political reasons, interlaced with news footage and photos from the four-decade long "White Terror." It was a period of political persecution that began when Chiang Kai-shek declared martial law in 1949. The film attempted to tell the story of Taiwan's transition from totalitarian rule through the eyes of victims, said the filmmaker. "It's been almost 40 years since I got out of jail and I haven't made any new friends," Chen Meng-ho said in the film. Chen, born in 1930, owned a photo studio before being arrested for reading "socialist books" in 1952. He was imprisoned for 15 years on Green Island to the southeast of Taiwan proper, which was notorious for housing political prisoners throughout the 1960s and 1970s. [Human rights]
A U.S. Car Deal With A Little Chery on Top?
Chinese Firm Could Exploit Chrysler Sale
By Ariana Eunjung Cha and Tomoeh Murakami Tse Washington Post Foreign Service Friday, March 2, 2007; Page D01
SHANGHAI -- When Chery Automobile cars first appeared outside of China in 2001, they were ridiculed as a cheap attempt to trick purchasers into thinking they were buying Chevy vehicles instead of Chinese knockoffs. These days, however, when industry watchers talk about the future of the auto industry, Chery's name and its lines of cute, gas-efficient cars elicit excited talk.
The company has done so well -- it is now the No. 1 independent automaker and auto exporter in China, with business in 30 countries -- that when DaimlerChrysler announced this month that it may be interested in selling off its flailing Chrysler unit, many analysts mentioned Chery as a potential suitor. [IM]

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FEBRUARY 2007

Bordeaux Meets Beijing
China's eager oenophiles are reviving the flagging French wine industry. So what if they mix their cru with Coke? By Eric Pape Newsweek International March 5, 2007 issue - China's novice wine drinkers can be a pretty gauche bunch. To hide the actual taste of foreign wines, some dilute their Bordeaux with ice or, worse, Coca-Cola. After business people raise their glasses for a toast, they tend to drain them as if they were shots of tequila. Indeed, Ying Qunhua, China's elegant young first secretary of the Chinese Embassy in France, recently admitted during a visit to the limestone village of Saint Emilion in Bordeaux that her colleagues back home sometimes fear wasting a bottle of fine wine on "people who won't actually taste it."
But rather than mock or belittle these unschooled wine drinkers, the guardians of France's grandest grapes are asking another question entirely: red, white or rosé? Tired of declining international market share through 2005, French wine merchants are reaching out to China as a potential savior. That means overlooking Chinese nectar naiveté, as well as welcoming Chinese tourists to the wine-growing regions; Bordeaux recently began publishing a Chinese-language listing of its main châteaux. "It may not become the biggest market," says Jean-François Bourrut Lacouture, who sells high-end wines to spot markets in Shanghai, Hong Kong and Singapore, "but it will be near the top within 10 years or so [IM]
Strategic Interests Pull Japan and India Together
Chietigj Bajpaee
16 February 2007 In recent years, Japan and India have come out of their self-imposed shells and constraints of history to emerge as increasingly active players on the international stage. Nonetheless, further progress is required if these states are to reach their full potential in the foreign policy spheres. Japan would have to escape the shackles of its post-WWII pacifist constitution, while India would have to break free of its Cold War non-aligned mentality and Pakistan-centric foreign policy.
For instance, India's fear of alignment has led it to sit on the sidelines of numerous multilateral forums in Asia. For example, in recent years India has distanced itself from the Shanghai Cooperation Organization (S.C.O.), where it is an observer. This was demonstrated most recently by India being the only country not to send its head of state to the last S.C.O. summit in Shanghai in June 2006. Similarly, India has been a reluctant participant of the Sino-Russian-Indian strategic triangle for fear of antagonizing the United States. [Realignment] [Japan-India relations]
China builds a superpower fighter
By David Lague Published: February 8, 2007
BEIJING: For more than two decades, China has labored to build its first state-of-the-art jet fighter as part of the country's drive to become a leading military power. In December, it appeared to have closed in on that ambition when it revealed, in an unusual blaze of publicity, that its new fighter, the J-10, had entered service in the air force. Footage of the new aircraft firing missiles and refueling in flight was shown on state-controlled television, and Chinese defense magazines have published lengthy reports with photographs of the single-engine fighter. Although specific details about the J-10's performance and specifications remain highly classified, some Western and Chinese military experts say the successful development of this advanced, multirole aircraft could be the catalyst for China to become a leading force in military aviation. They say that Chinese engineers, with help from Israel and Russia, had refined a design aimed at matching advanced aircraft such as the Lockheed Martin F-16, the frontline U.S. Air Force fighter that has also been sold to more than 20 countries.
There has been some speculation that the production run could be expanded if the J-10, which is expected to be much cheaper than an F-16, can win export orders from countries unable to pay for expensive Western aircraft. Prices of fighters vary sharply depending on capability but Chile is paying $60 million each for 10 F-16's it has on order from the United States. Fisher estimates a J-10 could sell for $25 million to $40 million. The U.S. Defense Intelligence Agency forecasts that up to 1,200 of these aircraft could eventually be built, according to the Pentagon report on the Chinese military. [China confrontation] [Arms sales]
DPRK’s Reform and Sino-DPRK Economic Cooperation
by Li Dunqiu
August 24th, 2006 Li Dunqiu, Director of Division of Korean Peninsular Studies at the Institute of World Development Center of Development Studies, writes, “Sino-DPRK economic cooperation is growing in depth and width but both sides adopt a low-profile and practical attitude… In fact Chinese enterprises, both private and state-owned, are looking for greater room for their future development as a result of the constantly improving market economy in China. Amid such backdrop, the DPRK naturally becomes their target… It is not difficult to see that laws of the market economy are the most fundamental reason behind Chinese enterprises’ investment in DPRK.” [Economic reforms] [FDI] [China-NK relations]
First in line for a visit, Seoul makes Japan worry
February 24, 2007 TOKYO ? Chinese Prime Minister Wen Jiabao is expected to visit Japan in mid April but first he will visit South Korea, diplomatic sources said yesterday. Sources familiar with the circumstances said that Mr. Wen's prior stop in Seoul has made Japanese officials anxious. During a visit by Japanese Prime Minister Shinzo Abe to China in October of last year, Tokyo devoted enormous efforts to bring about Mr. Wen's visit. The visit has a special meaning for Japan because bilateral ties had deteriorated under the previous Japanese administration after visits by then Prime Minister Junichiro Koizumi to the controversial Yasukuni Shrine, which honors Japanese war dead, including some war criminals. Seoul's request for a visit was made in January. Diplomatic sources said that the timetable set by Beijing was deliberate, as current Japanese Prime Minister Shinzo Abe has not made a concrete promise not to visit the shrine, although he has refrained from doing so since he became prime minister. The Chinese prime minister is expected to hold a speech in front of the Japanese national assembly and will discuss bilateral issues such as resuming Japanese rice exports to China.
New Textbook Stirs Debate Over Kojoson
By Kim Tong-hyung Staff Reporter The government plans to revise high-school history textbooks to include Kojoson, an ancient Korean kingdom believed to have existed in the Bronze Age, as part of the country's official history. The move is apparently a response to recent efforts by Chinese scholars to strengthen their claim over the heritage of Kojoson and other kingdoms such as Koguryo (37 B.C. - A.D. 668), which Korea states are part of its national history. However, historians criticize that the new descriptions blur the line between myth and historical facts.
China Outsailed Korea in Ship Orders in Jan.
Korea's shipbuilding industry, ranked top in the world, was overtaken by China's in terms of order volume last January for the first time ever. According to Thursday's report from Clarkson, a market researcher for the ship construction industry, the Korean shipbuilding industry received orders totaling 600,000 CGT (compensated gross tonnage) last month, much lower than China's orders of 1.4 million CGT. China's order volume is almost half of the world total order volume of 2.8 million CGT. [China competition]
China, India strengthen ties through tourism
By eTN Staff writer China and India have designated this year as the year to strengthen ties through tourism. Through the “India-China Friendship through Tourism Year,” the two countries are hoping to accelerate tourist flow, Indian Tourism Minister Ambika Soni. The announcement follows the start of a four-day official visit by Chinese Foreign Minister Li Zhaoxing to India on Sunday. Foreign ministers from both countries are to finalize setting up of a hotline next week, as part of the move to enhance economic, strategic and cultural ties, including unveiling of a logo for the joint tourism year. The hotline is an initiate under the 10-point plan agreed by both countries during the visit of Chinese President Hu Jintao in 2006. Following his meeting with Indian Prime Minister Mamohan Singh in New Delhi, Zhaoxing is to hold talks with Indian Foreign Minister Pranab Mukherjee on a wide range of bilateral and global issues. To commemorate the China-India cooperation, China has offered to build an international university in Nalanda, a famous center of Buddhist learning in the 5th century AD. Zhaoxing is also scheduled to hold a trilateral meeting with Minister Mukherjee and Russian Foreign Minister Sergei Lavrov this coming Friday to discuss international issues, including the Iranian crisis. Both countries are looking to double bilateral trade ties to $40 billion by 2010.
Ex-Chinese Envoy to Korea Held for Espionage
Former Chinese ambassador to Korea Li Bin Former Chinese ambassador to Korea Li Bin has been detained and questioned by Chinese police on charges of leaking state secrets, it emerged over the weekend. Li was the envoy in Seoul from September 2001 to August 2005. After returning to China, he was ambassador in charge of North Korean nuclear affairs. Li was suddenly summoned to Beijing last December while serving as deputy mayor of Weihai in China's eastern Shandong Province and his name disappeared from the list of nominees for deputy mayor. As a city official, Li at a meeting with Gyeonggi Governor Kim Moon-soo during a visit to Korea last August proposed a "train ferry" linking Korea's Pyeongtaek and Weihai.
For Korean companies in China, New Year’s means mass worker exodus Lunar
New Year’s increasingly a time when Chinese laborers change jobs For one small South Korean textile firm in Shandong, China, Lunar New Year’s is not a welcome time. Every year after the week-long break, about 10 percent of its employees fail to report to work, resulting in a serious worker shortage at the company, which employs only 45 persons. A growing number of Chinese workers from rural areas tend to change jobs after the Lunar New Year’s holiday, usually to ones offering better conditions, such as higher pay.
In addition, promises of increased pay upon return could prompt salary inflation, which could have a negative impact on companies’ bottom lines. In China, the minimum wage, which rose more than 10 percent last year, is expected to increase further this year.
China Evaluates Six-Party Talks
North Korea should respect international norm: Chinese scholar Sunny Lee (sunnylee) Email Article Print Article Published 2007-02-18 10:51 (KST) While the parties to the Beijing agreement are busy doing their own math on the gains and losses from the multination negotiation and trying to gauge each other's next move, China is breathing a sigh of relief as the broker to the often stalled nuclear deal to finally have produced some viable results.
Overall, China sees the outcome as something exceeding expectation and more practicable than previous talks in that the jointly doctored document is more specific about the amount of aid, timing and conditions entailed.
Textbook changes cause uproar
New history textbooks include a volume on Taiwan's history, which covers important events, such as the 228 Incident. (CNA) Publication Date?02/16/2007 By June Tsai
New textbooks sparked controversy in Taiwan as local newspapers reported Jan. 29 changes to content and wording in new high-school history textbooks. While newspapers accused the textbook changes of being politically motivated, scholars said that the new version was more in accordance with the principles of history education than old versions, and offered a relatively neutral perspective. The title of the new textbook was changed from "National History" to "Chinese History." Moreover, terms like "this country," "our country" and "the mainland" were changed to "China," the Chinese-language China Times newspaper reported Jan. 29.
Ma Ying-jeou indicted for embezzlement
Publication Date?02/16/2007 By June Tsai Kuomintang Chairman Ma Ying-jeou stepped down from his post after being indicted on charges of embezzlement but nevertheless announced he would seek the presidency in 2008. Prosecutors with the anti-corruption center under the Taiwan High Court Prosecutors' Office indicted Ma for allegedly embezzling money from a special allowance under his discretionary use while he served as Taipei mayor from 1998 to 2006. Prosecutors, however, did not recommend a prison term. [Corruption]
Foreign Minister Li Zhaoxing Holds Talks with His Indian Counterpart on the Development of Bilateral Ties
2007/02/15 On February 13, Chinese Foreign Minister Li Zhaoxing held talks with his Indian counterpart Pranab Mukherjee in the Indian capital of New Delhi, exchanging extensive views on bilateral ties, as well as regional and international issues of common interest. During the meeting, Li said the Sino-Indian relations have maintained a favorable momentum of comprehensive development with the successful visit of Chinese President Hu Jintao last November and the recent meeting between Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh at the East Asian Summit. The leaders of the two countries reached important consensus on deepening their strategic cooperative partnership, which shows clearly the direction for the development of bilateral ties, said Li.
Giants meet to counter US power
Jeremy Page in Delhi India, China and Russia account for 40 per cent of the world’s population, a fifth of its economy and more than half of its nuclear warheads. Now they appear to be forming a partnership to challenge the US-dominated world order that has prevailed since the end of the Cold War. Foreign ministers from the three emerging giants met in Delhi yesterday to discuss ways to build a more democratic “multipolar world”. [Realignment]
China and the Future of the World Economy
By Ho-fung Hung and Walden Bello
[Japan Focus 12 February 2007]
Japan Focus presents two complementary perspectives on the challenges facing China and the world economy in the context of global over-accumulation. In 1997, China emerged unscathed from the economic collapse that set back Japan and then Korea, Thailand, Indonesia, and other high-flying Asian economies. The present analyses pose the question of whether China, too, is now vulnerable, with consequences that will be felt throughout the world economy. Posted at Japan Focus on February 9, 2007. The Rise of China: Harbinger of a New Global Order, or In the Footsteps of Pre-Crisis Japan and the Asian Tigers? By Ho-fung Hung With Chinese real estate and stock prices skyrocketing and exuberant talk about the dawn of a “Chinese Century” in western media, the Chinese Academy of Social Science recently warned that China is witnessing an unsustainable expansion of an asset bubble reminiscent of what Japan experienced in the 1980s. The prolonged economic difficulties that haunted post-bubble Japan for a decade and a half, the report warned, are not far off if timely actions are not taken to rein in the excessive liquidity now threatening China’s economy. [1]
LG Sues Chinese TV Maker
By Cho Jin-seo Staff Reporter LG Electronics said Monday it has filed a lawsuit against China’s largest TV maker Thomson TCL Electronics (TTE) for the alleged infringement of four of its patents. [IPR] [IM][China competition]
Utmost Efforts to Boost Sino-DPRK Relations Reiterated
Beijing, February 9 (KCNA) -- China will make its utmost efforts to steadily deepen and develop the Sino-DPRK relations of friendship and cooperation in line with the agreement reached between the top leaders of the two parties, said Wang Jiarui, head of the International Liaison Department of the Central Committee of the Communist Party of China. He was addressing a friendly meeting with the staff members of the DPRK embassy in Beijing hosted by the International Liaison Department of the Central Committee of the Communist Party of China Thursday on the occasion of the New Year.
Indian economy may have overtaken Korea
GDP figures for 2006 anticipate India taking Korea’s 3rd-place spot in Asia India, which currently holds the world’s second-highest economic growth rate behind China, will overtake South Korea as Asia’s third-largest economy this year, an official at the International Monetary Fund said on February 7. In the fiscal year 2006, India’s economic growth rate is estimated to have been 8.9 percent, the official said.
China Upset with "Baekdu Mountain" Skaters
China's Ministry of Foreign Affairs registered an official protest after several South Korean athletes Wednesday held up a banner claiming Baekdu Mountain for Korea at the Winter Asian Games in Changchun, China. China News, a progressive daily newspaper, reported that a head of Asian affairs in the Chinese Ministry of Foreign Affairs summoned an official from the South Korean Embassy in Beijing to officially protest against five female South Korean skaters who held a "politically-motivated banner that undermines China's territorial sovereignty" during a medal ceremony.
Skaters find themselves a target of China’s ire
Seoul’s diplomats get official protest February 03, 2007 China has reacted strongly and angrily to a bit of political theater by a South Korean ice skating team, protesting both through sports association channels and officially, to the South Korean Embassy in Beijing. The incident occurred Wednesday evening, when the Korean women’s short-track skating team accepted their silver medals in the 3,000-meter event at the Winter Asian Games, held in Changchun, China. The women held up signs that read, “Mount Paektu is our land.”
Chinese political advisor accuses India of triggering 1962 war
[ 4 Feb, 2007 1530hrs ISTPTI ] BEIJING: Ahead of Chinese Foreign Minister Li Zhaoxing's visit, a Chinese political advisor has accused India of triggering the 1962 Sino-Indian war and cited Beijing's "unilateral" withdrawal after the skirmish as an example of the Communist giant's "peaceful intentions". "China is a neighbour to a record number of 15 countries, and for historical reasons, it has territorial disputes with nearly each and every one of them," Lau Nai-keung, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) said. In a commentary entitled "China's re-emergence should be welcomed" in the state-run 'China Daily,' Lau, a Hong Kong-based politician wrote that for many years China has been trying to resolve conflicts with neighbours through peaceful means. "One by one, we have settled national boundary lines without resorting to war," he wrote ahead of Li Zhaoxing's visit to India from February 11.
China's anti-satellite test worries India
Indrani Bagchi [ 5 Feb, 2007 0024hrs ISTTIMES NEWS NETWORK ] SPACE SECURITY: External Affairs minister Pranab Mukherjee called upon all countries to redouble efforts to strengthen the international legal regime for peaceful uses of outer space. (AP Photo) NEW DELHI: India for the first time on Sunday expressed its deep disquiet about last month's ASAT (anti-satellite) test when China destroyed an aging satellite in space with a DF-21 missile. Addressing an aerospace seminar organised by IAF, external affairs minister Pranab Mukherjee said: "The security and safety of assets in outer space is of crucial importance... We call upon all states to redouble efforts to strengthen the international legal regime for peaceful uses of outer space."
India, China talk to resolve border spat
[ 17 Jan, 2007 1606hrs ISTAP ] NEW DELHI: Indian and Chinese officials started a fresh round of talks Wednesday aimed at working to resolve a decades-old border dispute, the ministry of external affairs (MEA) said. The two-day talks are being led by National Security Adviser M K Narayanan and Chinese Vice-Premier Dai Bingguo, both appointed special representatives to address the issue in June 2003.
India, China will alter global income balance: PM
[ 7 Dec, 2006 1314hrs ISTIANS ] NEW DELHI: Prime Minister Manmohan Singh on Friday said that while there were ample studies on the benefits of free movement of goods and investment, the same was not true for professionals where India has an edge. "There are many questions pertaining to the globalisation of lifestyles and its consequences for consumption, and their impact on the world environment," the Prime Minister said at the London School of Economics Asia Forum. "If every consumer in India and China, totalling up to almost three billion, want to live like people in San Francisco, Stockholm or Singapore, can they afford to? Can nature afford it?" he posed.
"China has already trebled its share of world GDP (gross domestic product) over the past two decades and India has doubled it. Both these giants are bound to gain a considerable part of their share of world GDP that they had lost during the two centuries of European colonialism," he said.
Hillary Jr following father's footsteps?
Sudeshna Sarkar [ 5 Feb, 2007 0116hrs ISTTIMES NEWS NETWORK ] KATHMANDU: Seventeen years after he summited Mt Everest and created the record of being a Everest-conquering hero's son to do so, Peter Hillary is returning to Nepal this year in a new way.
China’s Approach to the Free-Trade Area
Chu Shulong is a visiting fellow at The Brookings Institution and professor at Tsinghua University. This essay is based on his presentation at the Roundtable Discussion on Free Trade And East Asia held in Philadelphia on October 4, sponsored by FPRI and co-sponsored by World Trade Center of Greater Philadelphia. One of the unusual developments in China’s foreign relations and Asian economy in recent years is that China, as still a developing country, has been actively pushing for free trade areas/arrangements/agreements (FTA) in Asia and the world. In just the few years since 2001, it has been busy suggesting and engaging in FTA talks and negotiations with a number of countries. It has signed a basic agreement with ASEAN (Association of Southeast Asian Nations) and has also engaged in serious negotiations with Australia to set up an FTA, and has begun talks with New Zealand.
20 N. Korean Border Guards Flee to China
By Lee Jin-woo Staff Reporter A group of about 20 North Korean guards at the Sino-North Korean border have fled to China after being accused of bribery for helping defectors, a South Korean news outlet reported Monday. The Ministry of Unification in Seoul held back from verifying the report. ``We have an intelligence report on the issue, but it’s hard for us to confirm it at the moment,’’ a ministry officials said on the condition of anonymity.

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JANUARY 2007

Emerging TNCs from East Asia: Mainland China and Hong Kong
Edward K.Y. CHEN and Ping LIN*
Fake Korean Maps Rile Chinese
Bloggers mistakenly atttribute ultranationalist views to textbooks Hyejin Kim (mine1004) Email Article Print Article Published 2007-01-31 14:21 (KST) Two weeks ago, I received an interesting email from my Chinese friend. He asked whether I had heard about a series of historical maps that had been allegedly extracted from Korean history textbooks and had set off heated arguments in Chinese on-line chat rooms. According to my friend, the maps had been posted on several Chinese BBSs and left readers believing that they came from standard South Korean school textbooks.
I took a look at the maps. I'm no historian, but they didn't make sense in light of what I had learned in school growing up in Korea. And my school-aged nephews confirmed that the maps don't match the ones in their textbooks. The maps in questions depict ancient Korean kingdoms sprawling across present-day China, while China is shrunk to a territory far smaller than Korea.
India ‘must open up to foreign investment’
By FT Reporters Published: January 29 2007 16:48 | Last updated: January 29 2007 17:31 India must open up to foreign direct investment if it is to maintain a growth rate of 9 per cent, P Chidambaram, the country’s finance minister, told the Financial Times. In an interview with Martin Wolf, the FT’s chief economics commentator, Mr Chidambaram said that sustaining an investment rate of close to 34-35 per cent of gross domestic product would be key to maintaining growth.
“This means we must keep the environment very enabling for investment, both domestic and foreign: ample liquidity, good flow of credit, opening up more sectors which are closed or too tightly regulated, opening up to foreign direct investment and looking for innovative financing especially in infrastructure, where there’s a hunger appetite for investment,” he said. Mr Chidambaram said foreign investment is currently worth about $9bn: “In infrastructure alone, we need to get about $20bn to $24bn a year. So there is still a huge gap
China's ASAT Test and its Impact on the United States
29 January 2007 n January 11, 2007, China became the third country, after the United States and Russia, to have performed an anti-satellite (ASAT) operation successfully by destroying an aging low-earth orbiting weather satellite through the launching of a ballistic missile into orbit carrying a "kinetic kill vehicle" -- most probably a DF-21 missile, after similar operations with a DF-31 had repeatedly failed.
Crooks cash in on visa program for ethnic Koreans in China
Criminals posing as issuing agencies dupe would-be migrant workers out of thousands The hallway is packed with people. Strong anxiousness can be detected on the faces of a middle-aged husband and wife. A man clutching a handful of papers grabs another person in the search for an answer to his questions. The floor of the hallway is littered with leaflets saying, "You can go to South Korea and work!" Inside the office, the phones ring off the hook. Suddenly, a group of police officers storm in. The previously bustling hallway has become as quiet as a funeral parlor. This was a true-life scene shown on the Chinese TV program ‘Weekly Economy.’ Chinese police conducted the raid on the "Visitation and Work Visa Office" in Yenji, Yenbien Autonomous Zone, because the office was a hotbed of fraud, its "officers" swindling ethnic Koreans living in China out of thousands of dollars. Several of the office’s employees made a run for it when the officers arrived; in all, eight were arrested that day.
With the world watching, China claims Paekdu
Products using Chinese name, ‘Changbai Shan,’ to be sold January 29, 2007 A Chinese girl lifting up a flaming torch that was lit symbolically from a parabolic shaped disc next to a lake on the Chinese side of the top of Mount Paekdu, which is called Mount Changbai in China, on Sept. 6, 2006. [AP] CHANGCHUN, China ? The Changchun Asian Winter Games that kicked off yesterday are more than just an opportunity for China to gain experience hosting international sporting events. The pressroom at Changchun, apart from the usual materials found at sporting events, provided pamphlets on Changbai Shan, known as Mount Paekdu in Korea.
Greetings to Indian President
Pyongyang, January 26 (KCNA) -- Kim Yong Nam, president of the Presidium of the DPRK Supreme People's Assembly, Friday sent a message of greetings to A. P. J. Abdul Kalam, President of India, on the Day of the Republic of India. Expressing belief that the good friendly and cooperative relations between the two countries would continue to develop in all fields in mutual interests, the message wholeheartedly wished him greater success in his responsible work to build a prosperous and powerful country.
S. Korea's trade surplus with China drops for 1st time in five years
South Korea's surplus from trade with China fell for the first time in five years, with its trade deficit with Japan hitting an all-time high, officials said Sunday. South Korea's trade surplus with China was US$20.9 billion in 2006, down 9.9 percent from a year earlier, as China lowered its imports of steel and oil products from South Korea and increased its investment in steel and oil sectors, the Commerce, Industry and Energy Ministry and the Korea Customs Service said. South Korea's greatest trade surplus was with China, followed by Hong Kong with $16.8 billion, the United States with $9.5 billion, Mexico with $5.5 billion and Taiwan with $3.7 billion. The country's trade deficit with Japan stood at $25.3 billion last year, up 3.9 percent from the previous year due to South Korea's high dependency on technology, parts and materials from the neighboring country and a decline in its exports to Japan from the semiconductor and shipyard sectors.
China's test and the future of 'star wars'
By Han Sungdong, Senior Reporter On January 11 China shot down one of its weather satellites some 860 kilometers above the earth. It was big news, but the history of the development of anti-satellite weaponry is already a long one. The development of surveillance satellites in the early fifties was quickly followed by efforts to develop weaponry with the ability to destroy those of your enemies. The United States sought ways to hit them directly, while the Soviet Union thought the solution was to launch a rocket into the orbit of the satellite and make the rocket explode in a way that its fragments destroy the target
U.S. Tries to Interpret China’s Silence Over Test
By DAVID E. SANGER and JOSEPH KAHN Published: January 22, 2007 WASHINGTON, Jan. 21 — Bush administration officials said that they had been unable to get even the most basic diplomatic response from China after their detection of a successful test to destroy a satellite 10 days ago, and that they were uncertain whether China’s top leaders, including President Hu Jintao, were fully aware of the test or the reaction it would engender.
South Korea, China to Boost Military Ties
By Jung Sung-ki Staff Reporter Top Army commanders from South Korea and China on Thursday agreed to enhance cooperation between the armed forces of the two countries and improve military exchange programs, the Army announced. The agreement was made during a meeting between Army Chief of Staff Gen. Park Heung-ryul and Gen. Ge Zhenfeng, deputy chief of the General Staff of the Chinese People's Liberation Army, in the Kyeryongdae military base, South Chungchong Province.
China Confirms Space Test; Denies Intent to Intimidate
By JOSEPH KAHN Published: January 24, 2007 BEIJING, Jan. 23 — The Chinese government publicly confirmed Tuesday that it had conducted a successful test of a new antisatellite weapon but said it had no intention of participating in a “space race.” The confirmation was made at a regular Foreign Ministry news briefing, 12 days after China used a medium-range ballistic missile to destroy one of its own weather satellites 535 miles above Earth. Several countries, including the United States, Japan, Britain and Australia, pressed Beijing to explain the test, apparently the first successful destruction of a satellite in orbit in more than 20 years. Until now, Chinese officials declined to confirm or deny that it had occurred, despite news reports last week that quoted Bush administration officials describing the exercise in detail. Liu Jianchao, the Foreign Ministry spokesman, issued the first official comment. “This test was not directed at any country and does not constitute a threat to any country,” he said. “What needs to be stressed is that China has always advocated the peaceful use of space, opposes the weaponization of space and an arms race in space. China has never participated and will never participate in any arms race in outer space.”
The first confirmation apparently came when Christopher R. Hill, an assistant secretary of state, visited his counterparts in Beijing over the weekend to discuss efforts to revive six-nation negotiations on North Korea’s nuclear weapons program.
NBS release news on national economic performance in 2006
China's GDP grows 10.7% in 2006
BEIJING, Jan. 25 (Xinhua) -- Preliminary estimation shows China's gross domestic product (GDP) totaled 20.9407 trillion yuan (2.7 trillion U.S. dollars) in 2006, up 10.7 percent year on year, according to latest figures provided by the National Bureau of Statistics (NBS) Thursday. [IM]
Why Russia and India matter to each other
Rajiv Sikri
January 23, 2007 With the focus of public attention on the foreign policy front over the last year or so having been on India's relations with the United States, it is easy to miss the significance of Russian President Vladimir Putin's visit this week. Yet, it is anything but a routine one. For the first time ever, a Russian head of State has been invited as chief guest for India's Republic Day celebrations, the most prestigious and visible event on India's diplomatic calendar, one whose significance goes beyond State-to-State diplomacy.
The multiplex boom sweeps India
Prashant Mahesh, Outlook Business India's multiplex bandwagon has gone beyond the metros to redefine entertainment in B and C class towns. "While the first phase (of the multiplex story) saw emergence of multiplexes in metros and now this growth is spreading to Tier 2 and 3 cities like Lucknow, Indore, Nasik, Aurangabad, Kanpur, Amritsar and so on," says Ajay Bijli, managing director, PVR Cinemas. And PVR is not alone. [IM]
A matter of when, not if
Tuesday Jan 23 15:00 AEDT By Tim Lester National Nine News Political correspondent For the last 10 months, John Howard and Alexander Downer have danced around the question of Australian uranium exports to India. Howard has made the more flirtatious moves. He has repeatedly hinted that his government will eventually allow sales of the nuclear raw material to India. This would involve Australia making an exception to its long-held position of only exporting uranium to countries that sign the Nuclear Non-Proliferation Treaty (NPT). [Double standards]
Manmohan Singh: "Energy can transform the nature of our economic ties"
Delhi will host the seventh Russian-Indian summit late in January. The Russian president has been invited to India's main public holiday, Republic Day, which is observed on January 26, as the chief guest, and this will be a prominent feature of the summit.
Indian Prime Minister Manmohan Singh gave an interview in Delhi to Interfax and the All-Russia Television and Radio Company (VGTRK) in connection with the summit. The interviewer for Interfax was the agency's Deputy General Director Renat Abdullin
Q.1: Mr. Prime Minister, what in your view are the prospects for development of strategic partnership between India and Russia, and what are your expectations in this regard from Russian President Vladimir Putin's visit to New Delhi? Ans. The strategic partnership between India and Russia is unique. There is no other parallel of two major players in the international arena having maintained such steady and unbroken friendship over decades. While bilateral relations between other major powers have witnessed numerous upheavals, relations between India and Russia have weathered radical changes in the international system as well as political and socio-economic changes within the two countries - largely because our geo-political as well as national interests are compatible. [India-Russia relations]
India's space hopes soar as capsule returns to Earth
By Akhel Mathew, Correspondent Published: 23/01/2007 12:00 AM (UAE) Thiruvananthapuram: India has joined the exclusive club of a few space race majors with its recoverable satellite entering the Earth and splashing down in the Bay of Bengal yesterday morning, Indian Space Research Organisation (Isro) sources here said. The technique of recovering the satellite shot into space for re-use was hitherto known only to Russia, the United States and China.
Forum: rise of China, India positive for region
www.chinaview.cn 2007-01-25 02:24:53 DAVOS, Switzerland, Jan. 24 (Xinhua) -- The rapid growth of China and India is positive for regional trade and investment in Asia despite earlier concerns that they would suck foreign investment from other Asian countries and push up commodity prices, panelists of the World Economic Forum said Wednesday. Other Asian countries have enjoyed spillover benefits of the rise of China and India in terms of exports and a shift in productive capacity, Indian Commerce and Industry Minister Ashwani Kumar told a panel. Panelists agreed that regional integration is successful in Asia. Fifty-five percent of total Asian trade has been within the region, higher than the North American Free Trade Area, said Jusuf Wanandi, a researcher with Indonesia's Center for Strategic and International Studies.
What's Behind the ASAT Test?
China's New Chip in Space War Poker By MANUEL GARCIA, Jr. January 22, 2007 On January 11, 2006, EST, China launched a medium-range missile from its Xichang Space Center, or near it, which shot up to a point near its Feng Yun 1C weather satellite -- in polar orbit since 1999 -- at an elevation of 864 km (537 miles), and destroyed it. This missile had maneuvering capability and would have been guided by on-board navigation and tracking systems, or by command guidance from the ground, or by some combination of these systems. Near its intercept point, the missile, or a smaller short-range missile carried aloft by it, was pointed to the satellite and accelerated by a booster rocket motor so as to become a "kinetic kill vehicle" smashing the target satellite into a cloud of debris. This was China's first successful test of an anti-satellite (ASAT) system, after three previous trials.
China to Be No.1 Exporter to Korea
By Park Hyong-ki Staff Reporter China is expected to become the biggest exporter to Korea by the end of this year, replacing Japan, the perennial No. 1 provider of foreign goods to Korea. According to KOTRA, Korea’s trade and investment agency, China sold Korea products and services worth $44.1 billion in the first 11 months of last year. The amount was closely behind Japan’s $47.2 billion. The United States is Korea’s No.3 importer with about $31 billion. Since China became a member of the World Trade Organization in 2001 and the two sides established diplomatic ties in 1992, China has been emerging as a global trade player, raising its productivity and profile.
China May Lower Fines for Poor Who Violate One-Child-Only Policy
By Maureen Fan Washington Post Foreign Service Wednesday, January 24, 2007; Page A07 BEIJING, Jan. 23 -- Fines imposed on Chinese who violate the country's one-child-only policy may be reduced for the poor, a top family planning official said Tuesday, as authorities stressed a broader approach to population management. The announcement came a day after state media reported that many Chinese believe it is unfair that the wealthy can "buy" a second child by simply paying fines for breaking the one-child-only rule for most urban couples.
"Rich people and poor people, they are all equal before the law," Zhang Weiqing, the head of the National Population and Family Planning Commission, told reporters in Beijing. "With very poor families, we may reduce part of the social compensation fee or waive the fee, depending on the actual situation," he said. "As for their other difficulties, we will help them by all means, including providing compulsory education and medical care." The announcement appeared to be part of a broader attempt by officials to put a more human face on China's much-maligned family planning policies. As the most populous country on Earth -- China has 1.3 billion people -- the country is struggling with an aging population, a growing rich-poor gap, unemployment pressures and continued reports of family planning abuses, including forced abortions and sterilizations. [IM] [Ageing society]
China begins to define the rules
By M K Bhadrakumar
Russian Deputy Prime Minister and Defense Minister Sergei Ivanov said in Moscow recently: "The world has been changing dynamically, and threats have been changing with kaleidoscopic speed. The times of the Cold War when everything was predictable and measured were like a paradise in comparison with the present day." [China confrontation]
China's Durable Inequality: Legacies of Revolutions and Pitfalls of Reform
By Ching Kwan Lee and Mark Selden
Since the early 1980s, China has been hailed as the poster child of post-socialist transition, shifting its revolutionary course via a reform that has generated the world’s most dynamic growth in GNP and trade over a quarter of a century and elevated it to the forefront of nations attracting foreign investment. Often eclipsed in this glowing picture of reform are enduring, indeed exacerbated, structures of inequality and the vibrant forms of popular resistance these have spawned. So too are the inequalities of the revolutionary era, including both persisting historical legacies and new forms of inequality. This article seeks to provide a framework both for assessing structures of Chinese inequality in successive epochs of revolution and reform and for gauging the changing relationship between social movements and structures of inequality. Three key questions drive the analysis: What are the legacies of the Chinese Revolution for the pursuit of social equality? How has reform restructured patterns of inequality? What is the relationship between the social upheavals that took place during both periods and changing patterns of inequality? In this article, we argue that persistent inequality, defined broadly in terms of income, wealth, life chances and basic needs entitlements, has resulted from three durable hierarchies—class, citizenship and location—whose mechanisms and intersection have been in flux across time and space in the past half-century
Jealous of the fact that “his war” of four years had been won by two bombs prepared without his knowledge and dropped without his command, MacArthur determined to do his best to erase from history—or at least blur as well as censorship could—the important human lessons of radiation’s effect on civil populations.
A key phrase in his thinking crops up in “First Into Nagasaki”, when he states, having seen those dying of radiation in the hospital: “I felt pity, but no remorse. The Japanese military had cured me of that.” Another came up in a 1990 radio interview conducted by the Swedish journalist Bertil Wedin— “the worst crime of any war is to begin it.”
Responding to China's antisatellite test
The US should carefully weigh its options, taking a mix of military and diplomatic steps.
By Bruce W. MacDonald and Charles D. Ferguson from the January 22, 2007 edition WASHINGTON - China's provocative test of an anti-satellite (ASAT) weapon last week shines a spotlight on the long- overlooked national security issue of space weapons. Given the substantial US dependence on civilian and military satellites, the successful test's implications are troubling for US security – and relations with China. Before taking any hasty action, it would be prudent for the United States to think hard about how to react to this worrisome Chinese move. For years, Beijing has called for banning space weapons, but the test flies in the face of this rhetoric. Washington and other governments are right to decry the test. However, it may reflect the logic the US used in the early 1980s when it deployed medium-range missiles in Europe to encourage the Soviet Union to negotiate limits on these weapons. Ironically, had the US conducted this test, it would have been entirely consistent with its newly revised policy that places greater emphasis on offensive space capabilities. For several years, the Bush administration has signaled its interest in attaining antisatellite capabilities and has openly rejected any interest in legal agreements that could restrict countries from acquiring these capabilities. While China, Russia, and the US have demonstrated these capabilities, any country with a ballistic missile program could develop an antisatellite weapon.
Chinese Anti-Satellite Weapon Experiment; What Now?
In a major foreign policy blunder (sic), China reportedly has conducted an anti-satellite (ASAT) test. First reported in Aviation Week and Space Technology, China allegedly used a medium-range ballistic missile to launch an unknown payload that slammed into the Feng Yun (FY-1C) polar-orbit weather satellite approximately 865 km (537 miles) above the earth on January 11. China has long called for international talks to set limits on military space activities, but this has been rejected by the Bush administration, which also wants to develop and deploy ASAT weapons. On January 11, the same day China conducted the test, a senior State Department official told an Air Force military space conference that "there is no arms race in space that needs to be addressed" by arms control treaties. The Chinese test is a surprise but not unexpected. Both the United States and Russia have worked on ASAT weapons for decades, and it was almost inevitable that China would follow in their footsteps
China Shows Assertiveness in Weapons Test
By JOSEPH KAHN January 20, 2007 News Analysis BEIJING, Jan. 19 — China’s apparent success in destroying one of its own orbiting satellites with a ballistic missile signals that its rising military intends to contest American supremacy in space, a realm many here consider increasingly crucial to national security. The test of an antisatellite weapon last week, which Beijing declined to confirm or deny Friday despite widespread news coverage and diplomatic inquiries, was perceived by East Asia experts as China’s most provocative military action since it testfired missiles off the coast of Taiwan more than a decade ago. Unlike in the Taiwan exercise, the message this time was directed mainly at the United States, the sole superpower in space. With lengthy white papers, energetic diplomacy and generous aid policies, Chinese officials have taken pains in recent years to present their country as a new kind of global power that, unlike the United States, has only good will toward other nations. But some analysts say the test shows that the reality is more complex. China has surging national wealth, legitimate security concerns and an opaque military bureaucracy that may belie the government’s promise of a “peaceful rise.” Some analysts suggested that one possible motivation was to prod the Bush administration to negotiate a treaty to ban space weapons. Russia and China have advocated such a treaty, but President Bush rejected those calls when he authorized a policy that seeks to preserve “freedom of action” in space. Even so, Mr. Pollack, of the Naval War College, said that if China hoped that demonstrating a new weapon of this kind would prompt a positive response in Washington, they most likely miscalculated. “Very frankly, many people in Washington will find that this validates the view of a China threat,” Mr. Pollack said. “It could well end up backfiring and forcing the U.S. to take new steps to counter China.” This month, Lt. Gen. Michael Mapes of the Army testified before Congress that China and Russia were working on systems to hit American satellites with lasers or missiles. And over the summer, the director of the National Reconnaissance Office, Donald M. Kerr, told reporters that the Chinese had used a ground-based laser to “paint,” or illuminate, an American satellite, a possible first step to using lasers to destroy satellites. “China is becoming more assertive in just about every military field,” said Mr. Behm, the Australian expert. “It is not going to concede that the U.S. can be the hegemon in space forever.”
Intelligence Brief: Russia Wary of China's Anti-Satellite Capabilities
22 January 2007 China's recently acquired ability to disable space-based satellites received due attention by practically every major power around the world. Much of the analysis surrounding the January 11 test has centered on the threat that this capability poses for the United States. Clearly, the U.S. position in space has been somewhat compromised by the Chinese since more than half of all artificial satellites in Earth's orbit are American, and Washington stands most to lose if China expands its space capabilities. In reality, however, China has a long way to go before it can openly and directly challenge U.S. dominance in space.
China Mobilizes for 'War of the Heavens'
Der Spiegel, Germany “What could the USA do to prevent an attack on one of its satellites? Probably nothing ...” By Markus Becker Translated By Armin Broeggelwirth January 19, 2007 Germany - Der Spiegel - Original Article (German) The spectacular destruction of a satellite by the Chinese could ring in a new era of global weapons competition. Politicians and experts are puzzled: What is China planning? How great is the danger to the West's communications networks? No one saw or heard the explosion, which took place last week over 800 kilometers [500 miles] above the earth. But it nevertheless sent political shock waves around the globe: China shot down one of its old weather satellites with a ground-based missile. It was the first time that such an undertaking has succeeded - and it proves official assertions that there is "no space arms race" to be absurd.
China Blows A Hole
B. Raman
...in the US claim that there is no arms race in space with the successful destruction of one of its old and disused weather satellites orbiting 537 miles up in space by firing a ground-based missile at it on January 11, 2007 A successful Chinese destruction of one of its old and disused weather satellites orbiting 537 miles up in space by firing a ground-based missile at it on January 11, 2007, is significant for four reasons:
China Ups Ante in Space
Technicians work at Space Control Center in Beijing. (AP/Xinhua, Zhao Jianwei) January 19, 2007 Prepared by: Joanna Klonsky Michael Moran
News of China’s successful satellite-killing missile test (BBC) on January 11 raises new questions for the United States with regard to its national space policy. A Chinese ground-based ballistic missile shattered an eight-year-old Chinese weather satellite slated to be retired, proving China can play with the big boys in space. It also caused U.S., British and Japanese officials to express concern that China may now be capable of targeting foreign spy satellites and risking a space arms race. Others, however, speculate that China conducted the first space weapons test in two decades to compel the U.S. to negotiate (NYT) a treaty forbidding such weapons. The United States has historically vetoed Russian and Chinese proposals for such a policy on the grounds that it would violate American “freedom of action” (Space.com) in space.
US wary of China's new space weapon
By ASSOCIATED PRESS WASHINGTON Jan. 20, 2007 1:55 | Updated Jan. 20, 2007 12:00
Criticizing China's test of an anti-satellite weapon, the State Department said Friday "modern life as we know it" depends on the security of space-based technology. Deputy spokesman Tom Casey said the administration raised concerns about the test with Chinese officials here and in Beijing, making clear its opposition to "any militarization of space." [Chutzpah]
Chen blames China for flight ban
Taiwanese expatriates, including two newly crowned Miss Taiwan USA (right and second right), wait to welcome President Chen to Los Angeles Jan. 11. (CNA) Publication Date:01/19/2007 Section:Front Page By Edwin Hsiao ROC President Chen Shui-bian returned to Taipei in the early morning of Jan. 13 after completing his state trip to attend the inauguration ceremony of Nicaraguan President Daniel Ortega in Managua Jan. 10. His flight touched down several hours behind schedule, however, due to Mexico rescinding its permission for his plane to cross its flight information region. This forced the plane to make a detour around Mexican airspace between leaving Nicaragua and arriving for a brief transit stop in Los Angeles.
FSC clots bank hemorrhage, Rebar boss flees to China, US
Agents from the Investigation Bureau under the MOJ remove evidence from the Rebar Group's headquarters in downtown Taipei Jan. 10. The raid was assisted by Taipei prosecutors and observed by numerous media organizations. (CNA) Publication Date:01/19/2007 Section:Economy By Annie Huang
Two Taiwanese businesses in the Rebar Asia Pacific Group, Chia Hsin Food and Synthetic Fiber Co. Ltd., and China Rebar Co. Ltd. announced Jan. 4 that they had filed for bankruptcy protection. This had knock-on effects for other Rebar subsidiaries, including companies allegedly hollowed out by Chia Hsin and Rebar, and caused a run on its Taipei-based Chinese Bank.
In contrast to this responsible behavior, Rebar group founder Wang You-theng and his wife Wang Chin Shyh-ying fled to China. Executive Yuan spokesperson Cheng Wen-tsang said in a Jan. 14 statement that Premier Su Tseng-chang called on the PRC to send back the suspects. Meanwhile, Su said that the government's attitude toward this case was to "confront the problem and take it as an opportunity to create more healthy domestic corporation management and financial supervision." Wang and his wife were listed Jan. 15 as suspects wanted by Taiwanese authorities for violating the securities law. This order would remain valid for 25 years. The couple was later reported to have fled to the United States and was believed to be in San Francisco.
Western protests flood in over Chinese satellite killer
· Test shows capability to knock out US system · Britain says attack will add to space debris problem
Ewen MacAskill in Washington, Michael White and Brian Whitaker Saturday January 20, 2007 The Guardian
China faced a barrage of international condemnation from London to Canberra yesterday after it was revealed that it had launched a missile attack on an ageing weather satellite, a test that threatened to open a "Star Wars" space race. Formal protests were lodged with the Beijing government, accompanied by expressions of concern from world leaders, including Tony Blair. The Bush administration is privately seething over the event and is believed to be preparing to turn the incident into a major diplomatic spat. [Double standards] [China confromtation]
China hails satellite killer - and stuns its rivals in space
· International outcry over first such test since 1985 · Scientists have warned of dangers of debris in orbit Suzanne Goldenberg in Washington Friday January 19, 2007 The Guardian The launch site at Xichang in south-west China, from where the missile is thought to have been launched. Photograph: Li Gang/Xinhua/Reuters China has given notice of its increasing power in space - and provoked widespread international concern - with a successful test of an anti-satellite weapon that could be used to knock out enemy surveillance and communications craft.
The test was especially troubling because it exposed the vulnerability of America's dependence on low-orbiting satellites, which are used for military communications, smart bombs and surveillance. In theory, last week's exercise could give Beijing the capability to knock out such satellites - a realisation that underlay the protests from Washington. [China confrontation]
Britain and India: Chasing an elephant
Jan 18th 2007 From The Economist print edition Britain hopes to profit from its old ties with India. Thus far it has been disappointed Bridgeman IN BETWEEN games of croquet, members of Britain's imperial governing class spent much of their time worrying about what would happen if they lost India. With the resources of such a giant country at her disposal, Britannia bestrode the world. Without them, she would be nothing more than a medium-sized European power with a healthy economy, a widely spoken language and a talent for inventing sports with arcane rules. A version of that old imperial anxiety is playing itself out again, albeit with the balance of power up-ended by globalisation. With this in mind Gordon Brown, the chancellor, made his first visit to India this week.
Hu’s adviser says China’s N.K. policy must remain intact
Washington-Pyongyang dialogue essential, says Peking Univ. dean
"For the sake of stability on the Korean peninsula, China cannot change its North Korea policy, even if North Korea tested nuclear weapons." So said Professor Wang Jisi, dean of the School of International Studies at Peking University and a man known as the "brain" behind Chinese President Hu Jintao’s foreign affairs decisions. During his speech in Seoul on January 18, hosted by a Korean press society, Kwanhun Club, for its 50th anniversary event, Wang emphasized the importance of bilateral talks between North Korea and the U.S. in order to resolve Pyongyang’s nuclear crisis. He also said that China as well as the U.S. has to set as the Maginot Line a " ‘No’ to North Korea as a nuclear power and to the further spread of nuclear weapons." [Bilateral]
Chinese Satellite Test Draws Sharp Protest From Other Nations
By Marc Kaufman and Dafna Linzer Washington Post Staff Writers Thursday, January 18, 2007; 2:46 PM
The Chinese military used a ground-based missile to hit and destroy one of its aging satellites orbiting more than 500 miles in space last week, an apparent test of anti-satellite technology that raised concerns about a possible arms race in space and drew sharp protests from other space-faring nations. The satellite-destroying test is believed to be the first of its kind in two decades by any nation, and experts say it dramatically illustrates Chinese capabilities in space and their willingness to face the certainty of broad international criticism.
Both the United States and the former Soviet Union tested anti-satellite technology in the 1980s, and the United States shot down one of its orbiting satellites in 1985. Partially as a result of the debris problem, both sides stopped the practice. The Chinese test, which was first reported online by the magazine Aviation Week and Space Technology, comes at a time of heightened tensions between the United States and China regarding space. China is leading an effort in the United Nations to set up an international conference that would address what many consider to be an imminent space arms race. The United States, however, has been the one space-faring nation to oppose the idea, arguing that it wasn't needed because there is no arms race in space. [Double standards] [China confrontation]
Toxic Haze From China Blankets Korea
A toxic haze enveloped the Korean Peninsula on Wednesday after industrial pollutants from China accumulated in the sky over the West Sea due to high temperatures and weak winds. The Seoul metropolitan area was blanketed in smog in daytime, showing an increase in fine dust density of four to six times over last weekend.
Why Wen Jiabao Is Popular and Roh Isn’t
President Roh Moo-hyun reportedly told Chinese Premier Wen Jiabao in the Philippines on Sunday, "Your popularity is very high in South Korea, perhaps higher than mine." He made the comment at the ASEAN + 3 summit while inviting the Chinese premier to visit Korea within the year. The comment could be a pleasantry intended to soften the atmosphere. But it also has a suggestiveness going beyond mere pleasantry. Behind the comment that the Chinese premier's popularity is "perhaps higher than mine" is Roh’s disappointment at, and self-mockery over, his rock-bottom approval rating of around 10 percent. But if the president brings up Wen's popularity, perhaps he should look at why the Chinese premier is so popular and Roh isn’t. Wen has earned the nickname "common man’s premier" on account of his natural frugality and consideration for the socially disadvantaged such as farmers and the elderly
Starbucks faces eviction from the Forbidden City
Jonathan Watts in Beijing Thursday January 18, 2007 Guardian Unlimited
A web campaign has caused the guardians of the Forbidden City to consider relocating Starbucks outside its walls. Photograph: Stephen Shaver/EPA
One of the most incongruous sights of the globalised age - the Starbucks coffee shop inside Beijing's Forbidden City - could soon be a thing of the past after a furious online campaign for it to be relocated outside the palace's 600-year-old walls. In response to this latest demonstration of “netizen” power in China, the guardians of the ancient site have announced plans to review the presence of the Seattle-based coffee chain. A decision on its future will be made within six months, the local media reported today.
Canada still waiting for China's approval
By Satish Gupta l eTN Asia Canada’s hopes of capitalizing on China’s potential as source market for tourism will have to wait. This is because negotiations for approved destination status to allow Chinese citizens to travel to Canada on tourist visas stalled last year. “While I don’t expect to get an agreement on this trip, it would be my hope that what we can get is a commitment to accelerate negotiations and get it done,” International Trade Minister David Emerson told 24 hours after speaking to the Canadian Chamber of Commerce in Hong Kong [Tourism]
India’s boundless ambitions
By Martine Bulard
An elephant can run very fast’ The United States will attend the Aero India defence show next month, hoping to profit from India’s hunger for military equipment; it wants to make India a counterweight to China. The relationship between China, India and the US is ill-defined; in a region that bristles with weapons, India also will have to contend with Japan and Russia.
Springtime for Sino-Japanese Relations
Chinese State Councilor Tang Jiaxuan late last year told a Japanese delegation led by the speaker of the House of Representatives, Yohei Kono, "Sino-Japanese relations have emerged from a cold winter and are entering the warm spring." With leader diplomacy fully restored between the two countries, diplomatic relations between them are approaching normality as well. The direct cause is the end of the Koizumi era. A new leadership in Japan has brought a natural momentum for this thaw in Sino-Japanese relations.
Prime Minister Abe has "vague intentions" about visiting the Yasukuni Shrine. If he follows in Koizumi's footsteps, Sino-Japanese relations will take a step back. Long-standing structural contradictions and territorial disputes remain unresolved between a peacefully rising China and Asia’s leading nation Japan. Though there are signs of spring, the relationship remains fragile, a delicate search for improvement. During this delicate time, the two countries must, above all, seek to think with the same mind.
The column was contributed by Chen Fengjun, a professor at Peking University's School of International Relations.
As China Dawns, Must Korea Dim?
At last weekend's Asean Plus Three summit in Cebu, Philippines, the spotlight was firmly on China. On the streets from the airport to the hotel where China's Premier Wen Jiabao was staying were hung huge posters of the Chinese leader, his image a clear signifier of his country’s influence in the region. China's political influence in Southeast Asia is equaled by it financial clout in the region. The country lent US$750 million to ASEAN nations just last year, and over the next three years will provide the Philippines alone with $6 billion in loans. Philippine President Gloria Macapagal Arroyo made her feelings clear, saying, “We are happy to have China as our big brother in this region.”
It’s not just ASEAN that is sharing such sentiments. Last year, China hosted on its own soil separate conferences with Middle Eastern, Central Asian, and African nations, drawing scores of nation leaders. During the China-Africa conference, the leaders of 48 of 52 African countries arrived in Beijing. This level of participation was a landmark achievement in diplomatic history, reflecting the fact that China has doubled the amount of its assistance to African nations. Across the continent, China is building highways, railroads and power plants. Soon its contributions to Africa will surpass that of Western nations, and accordingly, China’s influence there will also surpass that of the West. For the last ten years, Africa has been the first stop on the overseas trips of China's foreign minister. The Financial Times reported on the possibility of Africa falling under the influence of China.
Chinese Imitations Spread Across Korea
If you think that Chinese knock-offs of Korean products are found only overseas, then think again. Korea is already full of second-rate pirated products. According to the Korea Auto Industries Cooperatives Association, more than 20 percent of car parts sold in Korea are fake. Selling the fakes here is only part of the process. Chinese knock-off merchants bring their counterfeits into Korea to obscure their true country of origin, selling them on from our soil as real Korean goods. At the same time, they sell the fakes to consumers here. [China competition] [IPR]
China’s Tortuous Middle East Journey: Israel, Iran, and Saudia Arabia
By M K Bhadrakumar
This article appeared in Asia Times on January 13, 2007.
Two prominent leaders of the Middle East headed abroad last weekend, canvassing support from the international community. Iranian President Mahmud Ahmadinejad went on a tour of Venezuela, Nicaragua and Ecuador, the “red rain land” of Latin America, while Israeli Prime Minister Ehud Olmert headed for China.
By coincidence, on Wednesday, while Ahmadinejad was being received in Managua by the charismatic Marxist revolutionary Daniel Ortega at his inauguration as the democratically elected president of Nicaragua, Olmert was received with state honors in Beijing. Nothing can bring home as vividly the complexities of the emerging “multipolar” world order.
Chinese Imitations Undermining Korean Exports
An ad for Sammeng, a Chinese copycat of Samsung. The Chinese company found itself in controversy after advertising its 17-inch TFT LCD monitor with a photo of Korean star Song Hye-gyo on its Website.
Chinese producers are increasingly churning out fakes to capitalize on the improved competitiveness and brand value of Korean products. Once even a quick glance was enough to distinguish real and counterfeit goods since the fakes merely imitated design features while the quality was way inferior. But now, equipped with cutting-edge technology, Chinese replicas sold everywhere seriously undermine Korea's export market. According to the Korea International Trade Association (KITA), Chinese fake goods cost Korean export around US$14.2 billion (W1.3 trillion), equivalent to 5 percent of total exports. Maxman found that as many as 53 stores or 60 percent of around 80 stores in China's four major cities -- Beijing, Shanghai, Guangzhou and Shenzhen -- carried fake Korean products. [China competition] [IPR] [IM]
India’s Place in the US Strategic Order
The US and India have entered a new era. -- Opening words of the “New Framework for the US-India Defense Relationship”, June 28, 2005.
Three years ago, in explaining why our journal, which is devoted to analysing the Indian economy, was producing a special issue on the invasion of Iraq, we wrote: "India has become an important part of the US strategic order. That order is now focussed on seizing Iraq and some other states in West Asia; tomorrow it will shift its focus to [the rest of] Asia, which it sees as a region of increasing strategic importance." In Asia, we argued, one of the US’s principal targets was China: "The integration of India into US military targeting of China will increase the risk of war for the Indian people.... The Indian public, however, is unaware that it is being thrust into this dangerous strategic chess-game by its rulers.” Thus, we explained, our special issue was about “the current US strategic agenda and its implications for the rest of the world. As the Indian rulers have placed India within that US agenda, it is necessary for us to understand its implications in depth." (Behind the Invasion of Iraq, Aspects no.s 33 & 34) [China confrontation] [US-India relations]
US-China Relations
By Henry C.K. Liu
Part VIII: GW Bush Policy on North Korea – a Path to War Part VII: Clinton Policy on North Korea - A Belated Path to Peace Part VI: Korea under Park Chung Hee Part V: Kim Il Sung and China Part IV: More Geopolitical Dynamics of the Korea Proliferation Crisis Part III: Geopolitical Dynamics of the Korea Proliferation Crisis Part II: US Unilateralism Part I: A Lame Duck-Greenhorn Dance
Part IX: The North Korean Perspective
This article appeared in AToL on January 11, 2007 To North Korea, having been linked by Bush to Iraq and Iran as members of an “axis of evil” that did not merit bilateral negotiation, the implication from the stream-roller push toward the invasion of Iraq was imminent US invasion of North Korea as well. The only responsible response to imminent threat to its national security would be to develop nuclear capability as quickly as possible as a deterrent against imminent US attack.
China pursues Stronger Navy and Seeks to Calm Fears of Arms Race
Adam Wolfe On December 27, 2006, at a meeting of delegates to a Communist Party meeting of the People's Liberation Army Navy, Chinese President Hu Jintao said, "The navy force should be strengthened and modernized," and, further, the navy should be prepared "at any time for military struggle." Two days later, Beijing released a white paper outlining its military posture, which also emphasized the importance of developing a powerful navy. While the modernization of the Chinese navy has been progressing at a rapid pace for several years, the recent emphasis given to its development has raised concerns from Washington and other regional powers.
Taiwan: A Key to China’s Rise and Transformation
Fei-Ling Wang
| December 21, 2006
The peaceful rise of China is in the fundamental interest of the Chinese people and world peace. But as Chinese power and confidence increase rapidly, so has international scrutiny and reaction. The United States and its allies, the currently dominant powers, will very likely develop more misgivings about China's rise, unless Beijing also becomes a responsible stakeholder in and shares the basic values and norms of the global community. Therefore, a peaceful rise of China increasingly depends on the successful political transformation of the People's Republic of China (PRC) in the direction of the rule of law and democracy. Key in catalyzing this profound change is the tenacious, democratic, and unduly marginalized Chinese political opposition: the Republic of China (ROC) on the island of Taiwan.
Chinese Banks ‘Eyeing KEB’
Industrial and Commercial Bank of China (ICBC) and Bank of China (BOC) are among half a dozen foreign commercial banks that want to take over Korea Exchange Bank now the sale to Kookmin has collapsed. An insider in the Hong Kong financial industry on Thursday said China's largest lender ICBC, BOC, as well as Bank of America and Development Bank of Singapore (DBS) told KEB’s major shareholder Lone Star they are interested in buying the bank. Some, according to sources, are offering more than Kookmin Bank. U.S. speculative fund Lone Star annulled the deal to sell KEB to Kookmin in November. KEB and Lone Star say they know nothing of the offers. If Chinese banks want to take over KEB, it is part of a bid to make more aggressive forays into the global market and diversify their foreign exchange reserves. China’s forex reserves surpassed the US$1 trillion mark in October last year.
Roh Proposes Kimpo-Shanghai Air Shuttle
By Ryu Jin Staff Reporter
President Roh Moo-hyun, fifth from left, poses with other leaders taking part in the 12th ASEAN+3 Summit, including Philippine President Gloria Macapagal Arroyo, center, ahead of the South Korea-ASEAN summit in Cebu, the Philippines, on Sunday. /Yonhap President Roh Moo-hyun suggested on Sunday that South Korea and China open a direct air route between Seoul’s Kimpo International Airport and Shanghai to make travel more convenient for the increasing number of passengers between the two cities, according to his spokesman Yoon Seong-yong. In a meeting with Chinese Prime Minister Wen Jiabao in Cebu, the Philippines, on the sidelines of the ASEAN+3 summit, Roh also asked for Beijing’s support for South Korean firms’ bid to take part in the Chinese mobile phone business, Yoon told reporters.
China and Japan eye April date at regional summit
By Chris Buckley Reuters Sunday, January 14, 2007; 10:14 AM
CEBU, Philippines (Reuters) - Chinese Premier Wen Jiabao will make an ice-breaking visit to Japan in April, Japanese officials said on Sunday, while China warned the two countries' wartime past could still derail efforts to heal ties. Wen and Japanese Prime Minister Shinzo Abe used a regional summit in the central Philippines to narrow down a time for the first top-level Chinese trip to Japan in more than six years.
JAPAN'S NUCLEAR DEBATE "It may be tempting for Japan to consider becoming a nuclear weapon state, particularly after the nuclear test by DPRK (North Korea) last 9 October," Philippine President Gloria Macapagal Arroyo told Abe. "But the possession of nuclear weapons by more countries in our region will only lead to greater risks, not less. North Korea's nuclear weapons program therefore cannot be allowed to stand." [Japanese remilitarisation] [Nuclearisation]
Beijing Ups Oil Supply to Pyongyang
China has increased its oil supply to North Korea despite heightened tension on the Korean Peninsula since the North’s nuclear test on Oct. 9, the Korea Trade Investment Promotion Agency reported Friday. The report said China provided the North with petroleum worth $29.4 million in October, an increase of 87.5 percent from the same period the year before. In November China supplied $20.5 million worth of crude oil to the reclusive Stalinist state, it said. The report said the amount of oil China supplied to the North was negligible in September but it skyrocketed a month later. The total trade in fuel, including crude oil, and fertilizer between the two neighboring countries during October and November was worth $62 million, 20 percent more than the same period the year before, it said.
China Given Credit for Darfur Role
U.S. Official Cites New Willingness to Wield Influence in Sudan By Edward Cody Washington Post Foreign Service Saturday, January 13, 2007; Page A13 BEIJING, Jan. 12 -- The U.S. special envoy to Sudan said Friday that China has pushed the Sudanese government recently to help resolve the bloody Darfur conflict and ease the plight of the region's nearly 3 million refugees. The Chinese intervention marked a shift from past policy under which Beijing seemed reluctant to use its influence in Sudan, according to the envoy, Andrew S. Natsios. "I think they're engaging much more aggressively," Natsios said at a news briefing after four days of talks here with Chinese officials. [Manipulation]
Power, corruption and lies
To the west, China is a waking economic giant, poised to dominate the world. But, argues Will Hutton in this extract from his new book, we have consistently exaggerated and misunderstood the threat - and the consequences could be grave
Monday January 8, 2007 The Guardian The emergence of China as a $2 trillion economy from such inauspicious beginnings only 25 years ago is such a giddy accomplishment that the temptation to see its success as proof positive of your own prejudices is overwhelming. And the west's broad prejudice is that China is growing so rapidly because it has abandoned communism and embraced capitalism. China's own claim - that it is building a very particular economic model around what it describes as a socialist market economy - is dismissed as hogwash, the necessary rhetoric the Communist party must use to disguise what is actually happening. China proves conclusively that liberalisation, privatisation, market freedoms and the embrace of globalisation are the only route to prosperity. China is on its way to capitalism but will not admit it.
But the closer you get to what is happening on the ground in China, its so-called capitalism looks nothing like any form of capitalism the west has known and the transition from communism remains fundamentally problematic. The alpha and omega of China's political economy is that the Communist party remains firmly in the driving seat not just of government, but of the economy - a control that goes into the very marrow of how ownership rights are conceived and business strategies devised. The western conception of the free exercise of property rights and business autonomy that goes with it, essential to any notion of capitalism, does not exist in China. [China confrontation]
New China. New crisis
In the last decade China has emerged as a powerful, resurgent economic force with the muscle to challenge America as the global superpower. But, in his controversial new book, Will Hutton argues that China's explosive economic reforms will create seismic tensions within the one-party authoritarian state and asks: can the centre hold? Sunday January 7, 2007 The Observer
MAC, MOEA ok IT transfer
Publication Date:01/05/2007 By Annie Huang The domestic semiconductor industry could make more advanced wafer products in China, the Ministry of Economic Affairs and cabinet-level Mainland Affairs Council announced Dec. 29, 2006. This represented a further opening following MOEA approval of three local companies' plans to invest in China Dec. 27. The latest announcement opened the door for manufacture of 8-inch wafers in China using 0.18-micron technology--rather than 0.25-micron technology as per current regulations--in line with Economics Minister Chen Ruey-long's proposals since November.
Intel to close down research center in S. Korea
Intel Corp., the world's largest chip manufacturer, said Friday it has decided to close down its research and development (R&D) center here in South Korea in line with the company's ongoing restructuring efforts. The closure comes less than three years after it opened the 20-member center in Bundang, south of Seoul, in 2004. The center was the first research facility attracted by the Ministry of Information and Communication.
"The decision, which was made two days earlier, is part of the company's restructuring efforts," Intel Korea spokeswoman Joo Yang-ye said. "It has nothing to do with the research environment here in South Korea." In September, Intel announced a plan to trim its workforce by more than 10,000, or 10 percent, by next year. Observers, however, say the U.S.-based company would withdraw from South Korea to focus more on a research center to be built in Shanghai with more than 1,000 employees [China competition]

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