briefing3_promoting a harmonious society to cope with

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China Policy Institute

Briefing Series Issue 3

CHINA POLITICAL REVIEW 2005:

PROMOTING A HARMONIOUS SOCIETY TO COPE WITH

A CRISIS OF GOVERNANCE

by Yongnian Zheng, Zhengxu Wang & Liang Fook Lye

Copyright China Policy Institute

December 2005

China HouseUniversity of NottinghamUniversity ParkNottingham NG7 2RDUnited KingdomTel: +44 (0)115 846 7769Fax: +44 (0)115 846 7900Email: [email protected]: www.nottingham.ac.uk/china-policy-institute

The China Policy Institute was set up to analyse critical policy challenges faced by China in its

rapid development. Its goals are to help expand the knowledge and understanding ofcontemporary China in Britain, to help build a more informed dialogue between China and the UKand to contribute to government and business strategies.
http://www.nottingham.ac.uk/china-policy-institutemailto:[email protected]


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Summary

1. In 2005, Hu Jintao emerged as having full control of Chinas domestic andforeign policies. Hu has quickly consolidated his power to become the

core of the leadership, with Premier Wen Jiabao and Vice President Zeng

Qinghong as his important lieutenants.

2. In line with Hus vision of a harmonious society, the Fifth Plenum of theCommunist Party Central Committee in November 2005 approved a seriesof recommendations for the 11th Five-Year Plan that aims to achievebalanced and sustainable development. The Party will continue to deliversocial goods to stay relevant to the people.

3. To meet the challenges of governance, the Party embarked on a campaignto improve the competence of its members and address the moralproblems within its ranks. In the face of the many social problems, somecircles within the Party want to revive Marxism to bring it in line with the

realities of a market economy.

4. The leadership has tightened control over societal elements that coulddestabilize society, such as intellectuals. Incidents of social unrest arebeing carefully handled and contained at the localities. Foreign elementsthat could promote regime change in China are closely watched.

5. Despite some internal debate, Hu went ahead with the ceremony tocommemorate the 90th anniversary of the birth of Hu Yaobang, the latereformist leader. This left open the question of political liberalization in thefuture.

6. In 2006, the leadership will continue to improve the lot of the people andaddress social grievances, while cracking down on potentially destabilizingelements. Local leaders will be urged to handle potentially explosive issueswith care, such as land evictions and peasant petitions, and avoid high-handed measures.

7. Hu is likely to promote more of his supporters into powerful positions. TheParty centre under his leadership will step up efforts to groom the 5th

generation leadership that will succeed the current leadership in 2012.

8. The ups-and-downs that characterize the Sino-US relationship willcontinue while Sino-Japan ties will remain cool. Cross-straits ties mayfurther improve as the pro-independence Democratic Progressive Partyremains under pressure to adjust its stance. For Hong Kong, Beijing islikely to stick to incremental political liberalization.


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China Political Review 2005:Promoting a Harmonious Society to Cope with a Crisis of Governance

By Yongnian Zheng, Zhengxu Wang and Liang Fook Lye*

Hu Jintao Fully-in-Charge

1.1 At first glance, the year 2005 appears to have been politically uneventfulfor China. In past years, major events took place such as the leadershipsuccession in 2002, the SARS epidemic and its political repercussions in2003, and Hu Jintaos assumption of the Chairmanship of the CentralMilitary Commission (CMC) in 2004. No events of similar significance tookplace this year. Even on the economic front, the regimes effort incurtailing economic overheating seems to be on the right track. This year,the economy is expected to grow by 9.4%, compared to 9.5% a yearbefore. 1

1.2 Yet, beneath the veneer of stable economic growth and politicaltranquility, China faces simmering social grievances arising from peasantdiscontent, corruption and government abuse of power, widening incomeand regional disparities, and environmental degradation. For example, inJuly 2005, the Standing Committee of the Chinese People's PoliticalConsultative Conference (CPPCC) pointed to the widening income gap as"the root cause of disharmony".2 Official statistics show that the number ofincidents of popular unrest in 2004 jumped to 74,000 from 58,000 in 2003and 10,000 in 1994.3

1.3 Moreover, the frequent coal mining disasters across the country and therecent contamination of the Songhua River in Chinas Northeast due to an

explosion at a chemical plant are exemplary of the increasingly damagingeffects of the blind focus on economic growth. Besides raising questionsabout proper governance at the local level, these mishaps underscore thechallenges faced by the central government in encouraging local leaders tolook beyond GDP growth figures.

1.4 At the Zhongnanhai palace complex, Hus effort to consolidate power hascontinued apace. Hu has emerged dominant as the top leader of the Partyand the State. In achieving this, he has established a viable workingrelationship with Premier Wen Jiabao, who handles the dailyadministration of the country. Most notably, Vice President ZengQinghong, who is Jiang Zemins protg and was previously seen as a

contender for power against Hu, has rallied behind him.

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1.5 Within the Party, Hu has made a concerted effort to enhance its governingcapacity. Early this year, a campaign was launched to maintain theadvanced nature of the Party (). Party members, from the

* Yongnian Zheng is Professor and Head of Research at the China Policy Institute of the University ofNottingham Zhengxu Wang is Visiting Research Fellow at the East Asian Institute (EAI) of theNational University of Singapore and, Liang Fook Lye is Research Officer at the East Asian Institute.The authors are grateful to John Wong and Richard Pascoe for their valuable comments on the draft.1 Chinas economy to grow by 9.4 points this year, China Daily, 5 December 2005.2 China warns gap between rich, poor is feeding unrest, The Washington Post, 22 September 2005.3 The cauldron boils protests in China, The Economist, 1 October 2005.4 Hus consolidation of power is rapid by Chinese standards. His immediate predecessor, Jiang Zemin,

is widely regarded to have only consolidated his power eight years after he became General Secretaryin 1989. Before that, Zhao Ziyang (1987-1989) and Hu Yaobang (1982-1987) only managed to holdon to the post of General Secretary for two years and five years respectively.


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rank-and-file to senior personnel, have had to participate in educationalactivities to improve their quality of work and better serve the people.Beyond this, some ideologically-inclined senior Party members called for arenewed effort to re-examine or to redefine Marxism, making it moreconsistent with rising capitalist realities in the Chinese society.

1.6 To address social grievances, Hu has proposed a harmonious society,both as a guiding principle for the government in the coming years, and asa grand vision to boost public confidence in the regime. Following this line,the Party approved a series of policy initiatives for the 11th Five-Year Planat its Fifth Plenum in October 2005.5 These initiatives mark a new focus onresolving the negative consequences of the uneven developments ofrecent years.

1.7 In light of the increasingly precarious social conditions, the Party hastightened political control. Certain segments of society such asintellectuals, lawyers, and journalists have been put on a tighter leash.The authorities have also been careful in handling local incidents to

prevent them from escalating. With more than 100 million registeredInternet users and almost 400 million cell phone holders, China today isbecoming an increasingly open society, where bad news and adversepublicity can travel very fast to become newspaper headlines the worldover, such as the recent shooting incident in a village in Guangdong.6

1.8 Meanwhile, Hu called a party meeting to commemorate the 90th birthdayanniversary of the late Party General Secretary Hu Yaobang in November2005. China Youth Daily, the organ of the Chinese Communist YouthLeague, published a long article on Hu Yaobang by Hu Qili who used to amember of the Standing Committee of the Political Bureau before the1989 pro-democracy movement. It is an unusual move since that

newspaper had not even mentioned Hu Yaobang since his death in 1989.7

Given the ongoing tightening-up of political control, the commemoration ofHu Yaobang was considered an unusual move. Apparently, the young Huis using the old Hu to broaden his political support base while leavingenough room for political liberalization in the future.

1.9 On the external front, Hu has quickly emerged as a confident leader on theinternational stage.8 Chinas rapid economic rise has enabled Chinasleaders to be proactive in world affairs. Both Hu Jintao and Primer WenJiabao have made frequent visits to major powers such as the US, Britain,Germany and France. Recently, China ordered 150 A320 airbuses and 70Boeing passenger planes within a span of two months. In terms of Sino-

US relations, the two sides are working toward a relationship whereby theUS welcomes Chinas participation as a responsible stakeholder in theinternational system and China is willing to work within the existing worldorder, an implicit recognition of US supremacy.9

5 These policy initiatives will be incorporated into the 11 th Five-Year Plan (2006-2010) forconsideration at the National Peoples Congress in March 2006.6 In an incident in December, foreign reports claimed that police opened fire and up to 20 villagerswere killed. See Villagers Tell of Lethal Attack by Chinese Forces on Protesters, New York Times,December 11, 2005.7 China Youth Daily, 7 December 2005.8 Hus frequent diplomatic forays to Asia, Europe, Canada, Latin America, and his attendance at theAPEC Summit and UN General Assembly this year share a common message, that China is committedto building a mutually beneficial and constructive relationship with other countries.9 For the US view of a constructive Sino-US relationship, see Whither China: from membership toresponsibility, Remarks by Robert B. Zoellick, Deputy Secretary of State to the National Committeeon US-China Relations, 21 September 2005 (http://www.ncuscr.org/articlesandspeeches/Zoellick.htm
http://www.ncuscr.org/articlesandspeeches/Zoellick.htm


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1.10 In order to enhance Chinas relations with EU, China this year chose not toemphasize the question of the EUs lifting of its sixteen-year ban on theexport of weapons to China. Instead, China has focused on commercialareas. Despite trade disputes over textile and clothing, substantialprogress has been made in relations between China and major European

powers.

1.11 In dealing with Japan, Chinas most important neighbour, Hu has adopteda practical but firm approach. Following Prime Minister Junichiro Koizumisrepeated visits to the Yasukuni shrine and rising anti-Japanese nationalismat home, China has taken a more hard-line attitude towards Japan.Nevertheless, it seems that the political chill has not had an adverseimpact on their commercial relations due to the nature of economicinterdependence between the two countries.

1.10 Closer to home, Hu seems to have dampened the pro-independencemovement in Taiwan. Mainland China took a tough line with the passage

of its anti-secession law in March 2005. Then, it added a soft touch withhistoric visits to the mainland by the then Kuomintang (KMT) ChairmanLien Chan and People First Party Chairman James Soong. The KMT victoryin the end-of-year local elections in Taiwan underscored the success ofHus cross-straits policy.

Harmonious Society: A Vision and A Plan

2.1 The Chinese government has to manage the unintended consequences ofmore than two decades of uneven reform and development: relativepoverty, income disparity, regional development gaps, rising social

discontent, deteriorating work safety, government incompetence andcorruption and environmental degradation, among others.10 Ensuringequitable and well-rounded development is the foremost task of thecurrent leadership.

2.2 In this context, the policy initiatives for the 11th Five-Year Plan approvedby the Party at its Fifth Plenum in October 2005 mark the culmination ofwhat the current leadership, notably Hu Jintao and Wen Jiabao, has beenpromoting over the past few years. The emphasis is on a more balancedand sustainable form of development.

2.3 Since Hu and Wen took office, there has been a shift in official rhetoric.

Most important is the emphasis on the ordinary people and disadvantagedgroups, such as peasants and migrant workers. There is also an emphasison balanced and sustainable development, the so-called scientificdevelopment idea. These shifts in policy focus are guided by the conceptof harmonious society, which Hu first enunciated in February 2005. Such

). For Chinas willingness to work within the existing world order, see Zhongguo gongchandang zai 21shiji de zouxiang [The way ahead for the Chinese Communist Party in the 21 st century], PeoplesDaily(Foreign Edition), 11 November 2005 Also see the two articles by Zheng Bijian, and Wang Jision the Sino-US relationship published in Foreign Affairs, Vol. 84, No. 5 (September/October 2005),pp. 18-24 and pp. 39-48.10 According to official statistics, Chinas Gini co-efficient, an internationally accepted way ofmeasuring income inequality, is expected to reach 0.47 this year, exceeding the "alarm level" of 0.4.

On the Gini scale, zero corresponds to complete equality and one refers to perfect inequality, or oneperson having all the income. See Measures called for to narrow income gap, China Daily, 9 July2005.


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a society would contain elements of democracy, rule of law, fairness anduprightness, order, and balance between the needs of man and nature.11

2.4 The idea of harmonious society has evolved into a set of concrete policyinitiatives outlined in the Proposal for the 11th Five-Year Plan. Thisproposal is politically significant in that, on the one hand, it marks the

maturation of the developmental thinking of the Hu-Wen leadership. Onthe other, it shows that the fourth generation leadership, with its powerconsolidated, is pushing ahead with a comprehensive development plan.

2.5 This is a proposal for equitable, balanced, and sustainable development. Itstresses the comprehensive building of a moderately well-off society toimprove the well-being of ordinary people comprehensivelyimplementing scientific development to achieve balance andsustainability building a new socialist rural society to improve farmersincome and living standards and to better conserve resources and protectthe environment.

Rejuvenating the Party

3.1 With the goal of building a harmonious society set, the leadership believesthat its force of Party cadres needs to be brought up to this task. InJanuary 2005, the Party launched a nationwide campaign to maintain theadvanced nature of the Party. The campaign is carried out in three half-year stages: the first (January-June 2005) involves Party andgovernmental organizations at county level and above the second (July-December 2005) involves urban grassroots organizations and the third(January-June 2006) goes to the rural areas.

3.2 Party members attend educational and discussion sessions within theirparty cells to discuss ways of improving the Partys quality and moreimportantly, their daily work. They are also required to carry out criticismand self-criticism. The purpose is to improve the quality of the 69 millionParty members and eradicate malpractices that have tarnished the Partysreputation. Meanwhile, the Party has singled out several exemplaryparty members as role models for other party members to emulate.

3.3 At the same time, the leadership is searching for ways to rebuild thePartys ideological foundation. After two decades of pragmatism and adeliberate sidelining of ideological assertions, there appears to be aresurgence of Marxism within some circles of the Party.12 While Chinas

economic success reflects the strengths of a market-oriented economy,capitalism has also caused many social problems. At least to some,Marxism, with its emphasis on distribution and equity, seems relevantagain.

3.4 In a much quoted article in July 2005, Liu Guoguang, a renowned Chineseeconomist and former Deputy Director of the Chinese Academy of Social

11 Hu Jintao qiangdiao zhashi zuohao gongzuo dali cujin shehui hexie tuanjie [Hu Jintao stresses theneed to firmly lay the groundwork to push ahead with a socialist and harmonious society],

Xinhuawang, 19 February 2005 (http://news.xinhuanet.com/newscenter/2005-02/19/content_2595497.htm ).12 Chinese Marxism redefined, The Wall Street Journal, 6 December 2005. Earlier, in June 2004,while presiding over a study session of Political Bureau members, Hu had stressed the need to embark

on a comprehensive and in-depth study of the Chinese Communist Party governing theory. See Dangde zhizheng lilun: yige xuyao shengru yanjiu de keti [The Partys governing theory: a topic thatrequires in-depth research], Renminwang, 31 August 2005.
http://news.xinhuanet.com/newscenter/2005-02/19/content_2595497.htm


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Sciences (CASS), warned of the dangers of allowing western economicstudies dominate in China. He argued that any attempt to weakenMarxism in China, including in Chinese academia, would ultimately forcethe Party to change its colour. Meanwhile, CASS was instructed by theParty to establish a school of Marxism, to revive the study of Marxistideology in China.

3.5 But such well-intended efforts may turn out to be ill-conceived. Politicalcampaigns only generate reluctance if not resistance from Party members.Although Marxist theory may provide some insight into prevailingproblems, it is clearly ill-fitted for a China that is moving rapidly toward afree market economy and pluralist society. In governing such an economyand society, democratic institutions and processes of representation,interest aggregation, and decision making may be more necessary than anideology. Political reform is more fundamental than a return to old-fashioned party work and ideological campaigns.

Tightening Political Control

4.1 While the government is addressing the urgent issues that lead todiscontent, it is also applying tough measures to minimize social unrest.Although the leadership realizes that political reforms are needed, it takesthe view that they should be implemented gradually to keep things incheck. Furthermore, dissenting voices must be muted to ease policyimplementation. These are the complex causes behind the tightening ofcontrol in China.

4.2 The political environment was tightened towards the second half of 2004.In November 2004, the Publicity Department (previously called the

Propaganda Department) banned discussions in the media on the role ofpublic intellectuals.13 Some outspoken public intellectuals were even takeninto custody for questioning. Sophisticated technologies and methods areused to restrict what citizens can and cannot view and write on theInternet.

4.3 Some university authorities have also required research institutions andprofessors to declare their foreign funding to ensure that such fundingdoes not come with an agenda to promote political change. The leadershipis particularly concerned about the colour revolutions that recently led tothe downfall of regimes in several Central Asia countries.14 It fears thatforeign forces might promote regime change in China through intellectuals

and nongovernmental organizations (NGOs).

15

4.4 In September 2005, residents of a Guangdong village launched a peacefulprotest against a local Party Secretary who had been accused ofembezzlement. When two foreign journalists tried to enter the village,they were physically threatened and manhandled by a mob believed tohave been hired by local authorities. A Chinese legislator from a

13 Curbs on views of academics in media ban reflects growing anxiety at reports on publicintellectuals speaking out, South China Morning Post, 22 November 2004. The ban follows a series ofarticles on 50 public intellectuals including contemporary philosophers, artists, lawyers, economistsand media analysts by the Southern Peoples Weekly, a well-known magazine.14 Zhizhengdang fubai shi daozhi yanshe geming de zhongyao yuanying [The important reasonbehind color revolution lies in existing ruling Parties which are corrupt], Renmingwang, 7 Dec 2005

http://theory.people.com.cn/GB/49150/49152/3921640.html .15 Beijing concerned about colour revolution, Financial Times, 18 November, 2005. See also CCPstudies colour revolutions, EIU ViewsWire, 20 September 2005.
http://theory.people.com.cn/GB/49150/49152/3921640.html


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neighboring province who intended to provide legal advice to the villagerswas beaten up.16 In this incident, the Central Government appeared to beon the side of the local authorities. It probably feared that being toolenient to the villagers could open the floodgates to more of suchprotests.17

4.5 One particular development has generated some optimism about politicalopening. In November 2005, the Party commemorated the 90th

anniversary of the birth of Hu Yaobang, the late General Secretary whowas forced to resign in 1987 for being too pro-reform. His death in 1989led to the student demonstrations which culminated in the Tiananmencrack-down. The decision to commemorate him was personally pushedthrough the Politburo by Hu Jintao. The foreign media has taken this as asign of Hus readiness for more political opening.

4.6 But there are more practical reasons behind the commemoration. Byrestoring Hu Yaobangs reputation, Hu is attempting to appeal to a broadercross-section of society which identifies with the style of government that

Hu Yaobang stood for -- corruption-free, upright, and pro-people. Theseare the same qualities that Hu Jintao himself is championing within theParty. Hence, besides the young Hus personal indebtedness to the oldHu,18 rehabilitating him is a part of the young Hus Party building effort.19

Prognosis for 2006

5.1 In the year 2006, the leadership will strive to show itself capable ofmaking a more positive impact on society and will redouble its efforts toaddress the social grievances of the peasants and other disadvantagedgroups, in line with the broad goals of the 11th Five-Year Plan.

5.2 Local governments are urged to handle potentially explosive social issueslike land evictions and peasants petitions with care, and to avoid usinghigh-handed measures.20 The regime is afraid of the negative publicity ofthe mishandling of such issues, which can quickly tarnish the image of theParty and government, especially in the Western media. Efforts will also bemade to provide better social security and healthcare measures in ruralareas and to reduce industrial accidents, especially in coal mines. At thesame time, the leadership will continue to crack down on destabilizingsocial elements. Despite Hus much strengthened political position, he isstill very much in fear ofluan (social instability).

5.3 The frequent reports of rising social unrest by Western media do give the

impression that the Chinese leadership is in danger of losing control. Wetake the view that all these incidents still do not constitute a real threat tothe regime. Chinas successful economic reform and development, whilst

16 Beijing should step in to stop Taishi violence, South China Morning Post, 11 October 2005.17 In December, a similar but more serious case of villager protest took place in Dongzhou village,Guangdong, in which foreign reports claimed that police opened fire and up to 20 villagers were killed.See Villagers Tell of Lethal Attack by Chinese Forces on Protesters, New York Times, December 11,2005.18 The two Hus are not related. But to a large extent, the young Hu owed his earlier career to the oldHu, when he was chosen by the old Hu to lead the Chinese Communist Youth League and later to bethe Party Secretary of Guizhou.19To downscale the profile of the event, in order not to raise excessively high expectations ofimpending political reform, the commemoration date was shifted to a date when Hu was abroad so

that he could give the event a miss. The number of invitees to the ceremony was also reduced.20 Zhonggong gaoceng guanzhu qunti shijian pinfa [The Partys senior leaders are concerned aboutthe frequent occurrence of mass incidents], Xin Bao, 11 November 2005.


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creating a lot of problems, has produced many winners, particularly therising middle class in the urban areas. On the whole, the majority of thepopulation is satisfied and still supports the government. In a recentsurvey in Chinas major cities by an American polling agency, the findingsshow that most urban residents are generally happy with their lives. Infact, 76% of the respondents are optimistic about their future, compared

to 46% in the US.21

5.4 Nevertheless, the government is facing more and more demands forpolitical liberalization from an expanding urban and well-educated middleclass. There is also pressure for political opening from the United States,the European Union and other countries.22 While the Party does notdismiss the need for political change, it wants to do so at its own pace. 23

In its first white paper on Building Political Democracy, released inOctober 2005, China states that it will build its own socialist democraticpolitical system, but it will be done under Party leadership and in agradualist way.

5.5 In the arena of high politics, Hu will continue to promote his supportersinto leading positions. This process has continued unabated and looks setto pick up pace with the 17th Party Congress only two years away. Rumorsare rife about the impending transfer of Shanghais Party Secretary ChenLiangyu, a protg of Jiang Zemin, and his replacement by one of Huspeople.24 There are also indications that the Party is stepping up efforts togroom younger leaders at the provincial level such as Li Keqiang (PartySecretary of Liaoning), Li Yuanchao (Party Secretary of Jiangsu), and XiJinping (Party Secretary of Zhejiang) for top positions in the 5th generationleadership.

5.6 The dismal showing of the pro-independence Democratic Progressive Party

(DPP) in Taiwans local elections in December 2005 is likely to compelPresident Chen Shui-bian to be more moderate in his cross-straits policies.For Hong Kong, the Chinese government and Chief Executive DonaldTsang are likely to reject demands for a timetable for universal suffrage,but will avoid appearing high-handed in doing so. Externally, China-USrelations will remain on an even keel, with occasional ups-and-downs,while Chinas ties with Japan will remain tense, with no significantbreakthrough in sight.

21 The survey was conducted by the Pew Research Center, an independent opinion researchorganization based in Washington D. C. See To people in China, future looks bright, InternationalHerald Tribune, 16 November 2005.22 During George Bushs visit to Japan in November 2005, he prodded China to grant more politicalfreedom to its citizens while praising the vibrant democracy in Taiwan. The new premier of Germanyalso raised the issue of democratic reform when she met with Hu Jintao in November 2005.23 Hu sent an unequivocal message to George Bush during the latters visit to China in November 2005that China has no intention of giving in to US pressure on this score. See China holds line duringBush visit, International Herald Tribune, 21 November 2005.24 Chen Liangyu anshi zhiwu jiangyou biandong [Chen Liangyu hints at portfolio changes],Chinesenewsnet, 21 November 2005 (http://www1.chinesenewsnet.com/gb/MainNews/SinoNews/Mainland/2005_11_20_22_20_34_215.html ).
http://www1.chinesenewsnet.com/gb/MainNews/SinoNews/%20Mainland/2005_11_20_22_20_34_215.html


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Appendix

Major Political Events in 2004

7 Feb - Premier Wen Jiabao tells a joint gathering of Party and governmentleaders celebrating the Lunar New Year that the focus this year will

be on creating a harmonious society.

19 Feb - Hu Jintao stresses the importance of creating a harmonious societybased on Chinese socialism in his address to leading provincial andministerial level cadres gathered at the Central Party School todiscuss this topic.

3 12 Mar - Third Session of the 10th Chinese Peoples Political ConsultativeCommittee convenes in Beijing.

5 14 Mar - Third Session of the 10th National Peoples Congress convenes inBeijing.

14 Mar - The Anti-Secession Law is adopted at the Third Session of the 10thNational Peoples Congress. The law obliges China to take actionshould Taiwan secede from the mainland.

26 Apr 3May

- Lien Chan embarks on an historic trip to the mainland, marking thefirst visit by a Kuomintang (KMT) Chairman since the KMT lost thecivil war and fled to Taiwan in 1949.

Lien Chans visit paves the way for subsequent visits by People FirstParty James Soong (5 12 May) and New Party Chairman Yok Mu-ming (6 13 Jul).

30 Jun 7Jul

- Hu Jintao visits Russia and Kazakhstan, and attends the ShanghaiCooperation Council Summit in Astana and the Dialogue betweenthe Leaders of G8 and China, India, Brazil, South Africa and Mexicoin Gleneagles, the United Kingdom.

9 10 Jul - US Secretary of State Condoleezza Rice holds talks with hercounterpart Li Zhaoxing in Beijing. This is her second visit to Chinafollowing her last introductory visit in March this year.

27 30 Jul - Indonesian President Susilo Bambang Yudhoyono begins his StateVisit to China. This is a follow-up to Hu Jintaos visit to Indonesia in

April this year where the two countries signed a joint declaration ona strategic partnership.

3 Sep - Hu Jintao speaks to George Bush over the telephone. Besidesdiscussing the damage caused by Typhoon Katrina, the two leadersagree to delay Hus visit to the US which was originally scheduled inearly September.

8 17 Sep - Hu Jintao begins his State Visits to Canada and Mexico, and attendsthe summit on the 60th Anniversary of the founding of the UN. Humeets with George Bush on the sidelines of the summit.

8 11 Oct - The 5th plenum convenes and approves the recommendations to the11th Five-Year Plan


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() that willchart Chinas socio-economic progress from 2006-2010.

12 17Oct

- Shenzhou VI completes its five-day orbit around earth. This isChinas second manned space flight, following the first successfulmission in 2003.

17 Oct - Junichiro Koizumi pays a visit to the controversial Yasukuni shrine.He has visited the shrine every year since taking office in 2001.

31 Oct 2Nov

- Hu Jintao begins his state visit to Vietnam, returning an earlier visitto China by Vietnams President Tran Duc Luong in July. The twocountries alternate one high-level exchange once every six months.

8 19 Nov - Hu Jintao embarks on State Visits to the United Kingdom, Germany,Spain and South Korea, and attends the 13th APEC Informal LeadersMeeting in Busan.

13 Nov - The Songhua River in Heilongjiang Province is contaminated as aresult of a blast that occurred in a petrochemical company under theChina National Petroleum Corporation (CNPC) located upstream inJilin Province.

16 Nov - Chinas Ministry of Health confirms its first ever human case of birdflu. Two other cases were from the central province of Hunan andeastern Anhui. China has shown much greater willingness to workwith the World Health Organization to curb the disease compared toits handling of the SARS epidemic in 2003.

18 Nov - The commemoration ceremony of Hu Yaobang, former GeneralSecretary, is held at the Great Hall of the People. This ceremonymarks the political rehabilitation of Hu Yaobang 16 years after hisdeath in 1989.

19 21Nov

- Following trips to Japan and South Korea, George Bush arrives inChina for a visit. This is Bushs first visit in his second presidentialterm. Hu Jintao accepts Bushs invitation to visit the US as early aspossible.

29 Nov 1Dec

- The annual Central Economic Conference convenes in Beijing tooutline Chinas economic work for 2006.

3 Dec - Taiwans ruling party, the Democratic Progressive Party (DPP), facesits biggest political crisis since it came to power five years agofollowing its poor showing in local polls. The number of mayoral andcounty magistrate seats controlled by the DPP fell to 6 from 9previously (out of a total of 23 seats). In contrast, the oppositionKuomintang gained control of 14 seats, up from 9 previously. TheDPPs poor showing has been attributed to its lack of achievementsand involvement in recent scandals.

4 Dec - An estimated 250,000 people take to the streets in Hong Kongdemanding a timetable for universal suffrage in the election forHong Kong's chief executive and Legislative Council.

4 15 Dec - Wen Jiabao visits France, the Slovak Republic, the Czech Republic,


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Portugal and Malaysia, and attends the 9th ASEAN+China Summit,the 9th ASEAN+3 Summit and the first East Asia Summit in KualaLumpur.

6 Dec - Three people are officially confirmed dead after local security forcesopen fire on protesting villagers in Dongzhou village in Guangdong,a short drive away from Hong Kong. The villagers were unhappywith the lack of compensation for their land acquired to build apower plant.

7 8 Dec - Chinese Deputy Foreign Minister Dai Bingguo and US DeputySecretary of State Robert Zoellick hold the Second China-USStrategic Dialogue in Washington. The first round was held in Augustthis year.

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