participants show their skills in a tea stir-frying ...€¦ · a deck reception on the visiting...

Participants show their skills in a tea stir-frying contest held in Tiantai County, east China's Zhejiang Province on May 15, 2012. The contest is an activity of the closing ceremony of the 19th Shanghai International Tea Cultural Tourism Festival.

VOL. XXIV No. 5 May 2012 Rs. 10.00

The commander of the warship, Liao Shining, Deputy Chief of Staff of the People's Liberation Army (PLA) Navy addressed a deck reception on the visiting Chinese navy training ship "Zhenghe" in Kochi on May 10. The PLA's ocean-going training ship arrived at Kochin Port for a four-day goodwill visit to India. Indian Chief of Staff of the Southern Naval Command Rear Admiral S.Y. Srikhande and Chinese Ambassador Zhang Yan were present.

Chinese Ambassador Zhang Yan, accompanied by Chinese Consul-General Zhang Lizhong in Kolkata met with West Bengal Chief Minister Mamata Banerjee in the Writers' Building in Kolkata on April 20.

Chinese Ambassador Zhang Yan addressed a special session on "China-India Business Opportunities and Challenges" sponsored by Bharat Chamber of Commerce in Kolkata on April 20.

Chinese Ambassador Zhang Yan visited Visva-Bharati University in Shantiniketan and interacted with students in the School of Chinese Studies on April 22.

Minister Wang Xuefeng of the Chinese Embassy received graduate students led by Dr. Sharma from the School of Government, Maharashtra Institute of Technology in New Delhi on May 5.

NEWS FROM CHINA /MAY 2012 3

CONTENTS

I CHINA-INDIA RELATIONSI CHINA-INDIA RELATIONSI CHINA-INDIA RELATIONSI CHINA-INDIA RELATIONSI CHINA-INDIA RELATIONS

1. Chinese Navy Training Vessel Visits India for Friendship 42. Vice Foreign Minister Cui Tiankai Holds G20 Consultations in India and Indonesia 53. Graduate Students from Maharashtra Institute of Technology 5

Visit the Chinese Embassy in India

II EXTERNAL AFFAIRSII EXTERNAL AFFAIRSII EXTERNAL AFFAIRSII EXTERNAL AFFAIRSII EXTERNAL AFFAIRS

1. Hu Jintao Attends the Opening Session of the Fourth Round of the 6China-US Strategic and Economic Dialogue and Delivers a Speech

2. President Hu Jintao Meets with Secretary of State Hillary Clinton and TreasurySecretary Timothy Geithner, Special Representatives of U.S. President Barack Obama 9

3. Productive Dialogue 104. President Hu Jintao Meets with ROK President Lee Myung-bak and Japanese

Prime Minister Yoshihiko Noda 125. Chinese Premier Calls for Closer “Pragmatic” Cooperation Among China, Japan, ROK 136. China, Japan and ROK Ink Investment Deal 147. Council of Foreign Ministers of the Shanghai Cooperation Organization 15

Holds Meeting in Beijing

III DOMESTIC AFFAIRSIII DOMESTIC AFFAIRSIII DOMESTIC AFFAIRSIII DOMESTIC AFFAIRSIII DOMESTIC AFFAIRS

1. Chinese President Stresses Reaching Young People 162. Premier Wen Visits Cleaners, Bus Drivers 183. Bo’s Downfall Result of Inflated Sense of Influence 194. Risks Under Control 205. Feeding a Populous Country 226. Super Farmer 26

IV SOUTH CHINA SEAIV SOUTH CHINA SEAIV SOUTH CHINA SEAIV SOUTH CHINA SEAIV SOUTH CHINA SEA

1. Chinese Foreign Ministry Spokesperson’s Answers on Huangyan Island in South China Sea 292. Text of Interview of Director-General of the MFA Department of Boundary and

Ocean Affairs Deng Zhonghua by Phoenix Satellite TV 313. What One Needs to Know about the South China Sea 374. Mainland, Taiwan Responsible for South China Sea Sovereignty: Spokeswoman 425. Fishing Ban to Start in South China Sea 42

V TIBET TODAYV TIBET TODAYV TIBET TODAYV TIBET TODAYV TIBET TODAY

1. Self-immolations in Tibetan Regions Politically Motivated: Lawmaker 432. China Lodges Representation Over David Cameron-Dalai Meeting 443. China Voice: Dalai Lama Apathetic Toward Loss of Life 444. 17-Article Agreement and Peaceful Liberation of Tibet 455. Historical Facts of Imperialists’ Plots to Split Tibet from China 49

4 NEWS FROM CHINA /MAY 2012

Chinese Navy Training Vessel Visits India for Friendship

Kochi, May 9 (Xinhua) — ChineseNavy training vessel “Zhenghe “ arrivedat India’s Kochi Port Wednesday,starting a four-day good will visit to thecountry.

Hanging both Indian and Chinesenational flags, the People’s LiberationArmy (PLA)’s ocean-going training shipslowly entered Kochi Port in southwestern India along the Arabian Sea ataround 10 a.m. local time.

The warship is named after the greatChinese navigator Zhenghe who hadcome to Kochi six times more than 600years ago. The city of Kochi is still famousfor its Chinese fishing net, reflecting thedeep historic link between China andIndia. The Kochi Shipyard is now thelargest ship-building as well as maintenancefacility in India, building India’s first indigenousaircraft carrier.

With the upbeat music performed by the navyband of both countries, Chinese Ambassador toIndia Zhang Yan, Chinese defense attache Cai Pingand representatives from the Indian Navywelcomed the warship.

The commander of the warship, Liao Shining,Deputy Chief of Staff of the PLA Navy, said themain purpose of the visit is to promote the ideal of“a harmonious world and a harmonious ocean,”as well as strengthen the friendship andcooperation between the two countries and thetwo navies.

During the visit, senior Chinese officials willcall on Indian Chief of Staff of the Southern NavalCommand Rear Admiral S.Y. Srikhande, who is

I. CHINA-INDIA RELATIONSI. CHINA-INDIA RELATIONSI. CHINA-INDIA RELATIONSI. CHINA-INDIA RELATIONSI. CHINA-INDIA RELATIONS

officiating as chief of the command in the absenceof Vice-Admiral K.N. Sushil.

The Chinese naval personnel aboard thevisiting ship will also drop in at the Indian SouthernNaval Command’s Navigation and DirectionSchool and the Indian Navy’s newly-inducted sailtraining ship INS Sudarshini.

Meanwhile, the Chinese training vessel willopen to the Indian navy for visit and will hostdinner on the deck.

Naval cadets of the two countries will holdfriendly football and volleyball matches. A jointperformance of naval bands will also be staged.

The Chinese vessel had taken on board IndianNaval Sea Cadet David Veeravalli at Malaysia asa goodwill gesture.

“I enjoyed the friendly interaction andnavigation training during the nine days on theChinese training vessel,” he told Xinhua before

Indian Chief of Staff of the Southern Naval Command Rear AdmiralS.Y. Srikhande (L) talks with Chinese Ambassador to India Zhang Yan(C) and the commander of the warship, Liao Shining (R), Deputy Chiefof Staff of the PLA Navy, during the deck reception on the visiting PLAnavy training vessel “Zhenghe” in Kochin, India, on May 10, 2012.


getting off the ship at the end his trip on board.India is the third leg of the ship’s global

goodwill voyage, with more than 300 sailors,including 110 students from the Dalian NavalAcademy on board.

It is also the second visits to India by the vesseland the fifth visit of a Chinese navy warship to

India.On the voyage around the world that covers

more than 30,000 nautical miles, the Chinesenavy training vessel is scheduled to visit ports in11 countries, including Vietnam, Italy, Spain,Canada, Ecuador, Indonesia and Brunei, besidesIndia.

Vice Foreign Minister Cui Tiankai HoldsG20 Consultations in India and Indonesia

From May 7 to 10, 2012, Vice Foreign Minister and Chinese Coordinator of G20 Affairs Cui Tiankaiheld consultations with Indian G20 Sherpa & Deputy Chairman of Planning Commission MontekSingh Ahluwalia and Indonesian G20 Sherpa & Deputy Finance Minister Mahendra Siregar in Indiaand in Indonesia respectively, exchanging views on the preparatory work for the G20 Los Cabos Summit.

Graduate Students from Maharashtra Institute of TechnologyVisit the Chinese Embassy in India

On May 5, 2012, graduate students and a teamleader from the School of Government,Maharashtra Institute of Technology visited theChinese Embassy in New Delhi. They were warmlywelcomed by diplomats from the Embassy, andparticipated in an animated interaction with thelatter.

Minister Wang Xuefeng of the Chinese Embassybriefed the group on the current development andprospects of China-India relations. Then two shortdocumentary films about China and the BRICScountries were shown to help them to have a betterview about China and other BRICS countries. Inaddition, a small photo exhibition was also


arranged on the spot. During the interactionsession, the students from the Institute raisedlots of questions regarding China andChina-India relations, which were fully andsatisfactorily answered by Minister Wangand other diplomats of the Embassy.

Dr. Sharma, on behave of the students,expressed their gratitude for the well-organized and information oriented activitythe embassy held, and said that it greatlyenhanced their understanding on China andChina-India relations.

Maharashtra Institute of Technology islocated in the emerging industrial city ofPune, which annually organizes its students to visitother places in India as well as foreign countriesduring the summer vocation time. This visit to theChinese Embassy and interactions with the

Chinese diplomats is one of the activities for thosegraduate students who come to New Delhi for theirsummer programs.

II. EXTERNAL AFFAIRSII. EXTERNAL AFFAIRSII. EXTERNAL AFFAIRSII. EXTERNAL AFFAIRSII. EXTERNAL AFFAIRS

Hu Jintao Attends the Opening Session of the Fourth Roundof the China-US Strategic and Economic Dialogue and

Delivers a Speech

In the morning of May 3, 2012, thefourth round of the China-US Strategicand Economic Dialogue (S&ED) kickedoff in Diaoyutai State Guesthouse.Chinese President Hu Jintao attendedthe opening session and delivered animportant speech. US President BarackObama sent a text message to theevent.

Hu pointed out that the China-USS&ED has facilitated the high-levelstrategic consultation between the twocountries. China and the US haveincreased understanding of each


other’s strategic intentions and policies andexpanded consensus on the future course ofChina-US relations. The S&ED has given a strongboost to our mutually beneficial cooperation andcontributed to the mutual understanding andfriendship between our two peoples. It hasenriched exchanges and consultations betweenthe two countries in various fields and at variouslevels. He hopes that the two sides both focus onthe present and look ahead to the future duringthis round of S&ED and explore ways to buildChina-US cooperative partnership.

He stressed that China and the US arerespectively the largest developing country andthe largest developed country in the world. Thesustained, sound and steady growth of ourrelations will not only deliver real benefits to ourtwo peoples but also make valuable contributionsto world peace, stability and prosperity.Whatever changes may take place in the worldand no matter how the domestic situations inour two countries may evolve, China and theUS should be firmly committed to advancing thecooperative partnership and build a new typeof relationship between major countries that isreassuring to both of our people and to peopleacross the world.

He pointed out that first of all to build a newtype of relationship between China and the USas two major countries, we need to thinkcreatively. We should, through creative thinkingand concrete steps, seek new ways of developingrelations between major countries in the era ofeconomic globalization. Second, we need to trusteach other. The world we live in is big enoughfor China, the US and all other countries toachieve common development. Third, we needto act in the spirit of equality and mutualunderstanding. We should respect andaccommodate each other’s interests and concernsand properly handle differences. Fourth, weneed to work actively. We need to take solid andeffective steps to implement what we have agreed

upon. We should enhance practical cooperationin a wide range of areas and bring the benefitsof China-US cooperation to the people of ourtwo countries and the whole world. Fifth, weneed to nourish our friendship. We shouldactively promote exchanges between China andthe US from all walks of life and encouragegreater public participation in the course ofpromoting China-US friendship and cooperation.

He noted lastly that China and the US nowface new opportunities to further grow ourrelations and are confronted with new challengesas well. Let us seize opportunities, removeinterferences and work together to build a newtype of relationship between major countriesfeaturing mutual respect and win-wincooperation.

Obama said in the text message that the USis firmly committed to building the US-Chinacooperative partnership based on mutual respectand mutual benefit. The two sides haveestablished the effective communicationframework through frequent high-levelexchanges. The S&ED manifests the width anddepth of US-China relations and the cooperationcapacity of both sides. It has enhancedcommunications, improved mutual trust anddeepened cooperation between the twocountries. The US and China can work togetherto safeguard global security, stability andprosperity through bilateral and multilateralcooperation.

He noted the US and China can prove to theworld that US-China relations will not repeatpast mistakes. The two countries can join handsto overcome the severe economic and securitychallenges in the 21st century and build a solidfoundation for the development of bilateralrelations featured by lasting trust, long-termstability and full of hope.

Hu’s special representatives Vice PremierWang Qishan and State Councilor Dai Bingguoand Obama’s special representatives Secretary


of State Hillary Clinton and Treasury SecretaryTimothy Geithner co-chaired the dialogue andaddressed the opening session respectively.

Wang said that President Hu Jintao andPresident Obama met in Seoul and VicePresident Xi Jinping paid a successful visit to theUS not long ago. The two sides further clarifiedthe strategic positioning of building the China-US strategic partnership based on mutual respectand mutual benefit and pointed out direction forthis round of S&ED. Since the establishment ofthe S&ED, 151 economic cooperation outcomeshave been achieved. Practice has proved that theS&ED is broad, pragmatic and productive. Ittakes care of each other’s concerns, avoids the“politicization” of the economic problems to themaximum extent, fully reflects the win-winnature of China-US cooperation and effectivelymaintains the interests of the two peoples at thelevel of economic relations. In the context of thecurrent complicated and severe global economicsituation, he hopes that the two sides take theopportunity of this round of S&ED to furtherpromote pragmatic cooperation in such fields astrade, investment, finance and infrastructure,step up communication and coordination,convert the consensus of the two heads of stateinto tangible results and boost the strong,sustainable and balanced growth of the Chineseand US economy and the world economy atlarge.

Dai said that practice has proved thecorrectness of the decision made by the twoheads of state to launch the S&ED. Throughoutthe world history, there are too many painfullessons that big powers contended for hegemony,victimizing themselves and causing sufferings tothe world. Living in the 21st century, we shouldlearn a lesson, respond to the call of the times,break the so-called historical destiny that bigpowers inevitably engage in conflict andconfrontation and bring lasting peace andprosperity to the world. Today, China is closer

than ever before to the goal of rejuvenating theChinese nation and needs more than ever beforeto unswervingly follow the path of developmentchosen on its own. We need to live in harmonywith all the other countries in the world, seekcommon development and be committed todeveloping a new type of relationship with theUS based on mutual respect and mutual benefit.As long as the two sides have sincerity, complywith the general trend, firmly stick to thedirection determined by the two heads of state,continue to strengthen dialogue, enhance mutualtrust, expand cooperation and properly handledifferences, we will be able to achieve our goals.

Clinton noted that in today’s world, no globalplayer can afford to treat geopolitics as a zero-sum game. The relations between the US andChina are highly interdependent. Major globalissues cannot be solved without the cooperationbetween the US and China. The relationshipbetween the US and China today is muchstronger than 40 years ago when formerPresident Nixon visited China. The two sides areworking to build a relationship that allows bothof our countries to flourish without unhealthycompetition or conflict. It is the commonexpectation of the two peoples and will benefitpeople all over the world. The US believes that aprosperous China is beneficial to the US and aprosperous US is good to China. The S&ED isimportant to the US and to the US-Chinarelations. The US expects the two sides toenhance mutual trust, avoid misjudgment andincrease communications on major regional andinternational issues through dialogue.

Geithner noted that the S&ED wasestablished three years ago when the globaleconomy was faced with serious threats. Thetwo sides worked together in a constructivemanner to overcome the impact of the globalfinancial crisis and pushed forward the bilateralrelations. Today, the world economy is stillfacing various risks and challenges. Both the US


and China are major economic and trade powers,share wide economic interests and key globalresponsibilities. We should build strongereconomic relations and a better framework forcooperation, recognize and respect each other’sinterests and concerns, properly solve relevantissues, advance our own economic reform, boostthe balanced growth of bilateral trade, continue

to strengthen cooperation in the G20 and othermultilateral frameworks, promote reform of theinternational financial system and boost globaleconomic growth.

Following the opening session, the two sidesconducted the strategic and the economicdialogue respectively.

President Hu Jintao Meets with Secretary of StateHillary Clinton and Treasury Secretary Timothy Geithner,Special Representatives of U.S. President Barack Obama

On the morning of May 4, 2012, President HuJintao met at the Great Hall of the People with theU.S. delegation to the fourth round of the China-U.S. Strategic and Economic Dialogue (S&ED),which is headed by Secretary of State HillaryClinton and Treasury Secretary Timothy Geithner,special representatives of U.S. President BarackObama.

Hu hailed the “positive results” of the fourthround of the China-U.S. Strategic and EconomicDialogue (S&ED), saying it has resulted in bothparties reaching several significant agreements. Hehoped that the delegations from both sides willseriously sum up experience and make persistentefforts to further develop the dialoguemechanism. Hu called for the two sides to fullyutilize the talks in strengthening strategiccommunication, enhancing mutual trust andadvancing strategic cooperation in order tocontribute to the development of the cooperativepartnership between China and the UnitedStates.

Hu said the two sides reached importantconsensus on establishing and developing thecooperative partnership based on mutual respectand mutual benefit, pointing out the direction forthe development of China-U.S. relations. Hu saidin face of the profound and complex changes in

the international situation, both sides should adopta long-term and overall view and proceed fromthe basic interests of their respective peoples inenhancing mutual trust and expandingcooperation and consensus. Hu called for the twosides to respect each other’s core interests andappropriately address differences and sensitiveissues so as to push forward the building of thecooperative partnership and create a better futurefor China-U.S. relations.

Clinton and Geithner said the fourth round ofthe dialogue has seen excellent results so far, whichproves once again that the decision of the twoheads of state to build the U.S.-China cooperativepartnership based on mutual respect and mutualbenefit conforms to the common interests of bothcountries, is of great historical significance and isa correct path. The U.S. side expressed a wish towork with China to maintain high-level contact,enhance dialogue, bridge differences, expandcooperation and address difficulties and challengesin a frank and open spirit. Clinton and Geithnerappreciated China’s firm commitment toadvancing economic reform and opening itsmarket. They said the U.S. side is working to builda closer and stronger economic relationship withChina and enhance cooperation with China in theprocess of global governance.


Major officials of both sides participating in theS&ED including Vice Premier Wang Qishan, StateCouncilor Dai Bingguo, Foreign Minister YangJiechi, Minister of Finance Xie Xuren, Minister ofCommerce Chen Deming, Governor Zhou

Xiaochuan of the People’s Bank of China, ViceMinister of the National Development and ReformCommission Zhu Zhixin and Chinese Ambassadorto the United States Zhang Yesui attended themeeting.

Productive Dialogue— Mutual interests between China and the United States make them more interdependent

by Ding Ying, Beijing Review

THE MOMENT: (From left to right in front) U.S. Treasury Secretary TimothyGeithner, Secretary of State Hillary Clinton, Chinese Vice Premier WangQishan and State Councilor Dai Bingguo at the fourth round of China-U.S.Strategic and Economic Dialogue in Beijing on May 3 (LIAO PAN)

It seemed a traditional belief thattwo major powers must confront eachother. Now China and the UnitedStates are the two biggest economiesin the world. But they are activelyworking to build a new type ofrelationship by deepening mutualtrust, mutual respect and win-wincooperation because today’s world isdifferent. Their efforts are visible underthe framework of China-U.S. Strategicand Economic Dialogue (S&ED).

Today, China and the UnitedStates face the fact that their commoninterests and competition areinterwoven. How to build relations isthe core problem that China and theUnited States should work together tosolve, said Zhao Kejin, a specialist in foreign studiesat Tsinghua University. He pointed out thatcomplicated changes in international political andeconomic situations provide opportunities fordevelopment of the bilateral relationship and injectgreat impetus into the latest S&ED, which is the mostimportant political experiment for building a newrelationship between the two powers. “The two sides’cooperation is getting more practical,” Zhao said.

The fourth round of the S&ED, which was titledPromote Win-Win Cooperation and Build a NewType of Relations Between Major Countries, was

held in Beijing on May 3 to 4, with 67 concrete resultsachieved. The dialogue framework has been animportant cooperative platform between the twosides. Chinese Vice Premier Wang Qishan said thetwo sides have reached 218 cooperative results duringthe past three years since the framework wasestablished, which brought factual benefits for bothnations.

More Win-Win

Economic cooperation has always been a focusof the relationship. Trade and economic relations


based on win-win cooperation serves as glue pastingthe two countries together. Now China is seeking aneconomic transformation, and the United States is inurgent need of economic revival, which made thisyear’s dialogue fruitful.

Under pressure of the coming presidentialelection, U.S. President Barack Obama’sadministration hopes to realize economic revival assoon as possible. Its major overseas helper is China.Close China-U.S. economic cooperation is of strategicsignificance to such an economic revival, said Zhao,explaining that China’s influence is decisive especiallyto Washington’s plan to increase exports.

Ding Yifan, Deputy Director at the Institute ofWorld Development of the Development ResearchCenter of the State Council, pointed out the U.S.exports to China have been the backbone of U.S.foreign trade in recent years. U.S. trade volume toChina has almost doubled since 2009. The growthspeed is about twice its export growth to othermarkets. In 2011, the U.S. commodity and serviceexports to China reached $130 billion, providing over600,000 job opportunities to Americans.

“You have to look at the trend line, not just theheadlines. That is especially true in the China-U.S.relationship,” said Secretary of State Hillary Clintonat the dialogue. “The trend is clear. Our country isgrowing more interdependent. So we need to builda resilient relationship that allows both of us thriveand meet our regional and global responsibilities.”

The two sides reached agreements on promotingfree trade and intellectual property protection,showing their common concerns. Ding pointed outthat China is worried about the recently-showedtrade protection in the United States. The UnitedStates established a trans-departmental trade lawenforcement center targeting at Chinese products.And the U.S. Congress amended the country’sCountervailing Act, and added some Chineseenterprises to its antidumping and anti-subsidy lists.Under that background China hopes the agreementcan help to maintain the bilateral trade and economicrelationship on a good trend.

Ding pointed out that the United States has beenfocusing on China’s intellectual property protection.However, he said, China also has the demand ofprotecting its intellectual property. With thedevelopment of China’s economy, the two sides havemore common needs on this point. Statistics showthat China’s ZTE Corp. was the world champion ofapplying for the most patents in 2011. And anotherChinese enterprise, Huawei, was the third. Chineseenterprises also have urgent needs to protect theirintellectual property, he said.

Trust and Respect

Besides economic agreements, the two sidesreached consensus on strategic fields, such asstrengthening communication and cooperation inenlarged areas. All these efforts are targeted atbuilding a new type of relationship between majorcountries based on mutual trust and mutual respect.“To build a new type of relationship between Chinaand the United States, we need to trust each other,”Chinese President Hu Jintao said at the openingceremony of the S&ED.

Zhao Kejin pointed out that both the space andsignificance of their cooperation are tremendous. Asthe two most influential powers, neither of them canshift responsibility to world peace and development.During this year’s dialogue, the two sides also heldexchanges on global events.

The good atmosphere of the dialogue frameworkhas spread to the military communication betweenthe two sides. Right after the dialogue, ChineseDefense Minister Liang Guanglie visited the UnitedStates and reached several agreements with his U.S.counterpart Leon Panetta on developing bilateralmilitary relations. Jiang Shaoliang, a researcher atthe Military Science Academy, said this interactionis of special significance. The military communicationwill bring the bilateral relationship onto the track ofhealthy, comprehensive, multi-field and high-leveldevelopment. He added that Liang’s visit helped thetwo armies enhance common understanding whiledemolishing misjudgments, which is crucial for both


sides.Experts said that building a new type of

relationship between the two powers based onmutual respect is the key to the China-U.S.relationship.

Zhao said there are three factors to therelationship: maintaining the positives trend ofdialogue and cooperation, pushing forward the frankdialogue on sensitive events, and deepening theirmutual trust on strategic problems.

Achievements of S&ED

Strategic Dialogue:

- Promoting high-level exchanges andcommunication;

- Maintaining bilateral dialogues andconsultations on issues including security, humanrights, arms control, non-proliferation, legislation,law enforcement and marine safety. The two sidesagreed to hold a human rights dialogue inWashington in the coming summer;

- Enhancing communication and cooperationwhile coping with regional and global challenges,

world events and hotspots;- Boosting bilateral cooperation.

Economic Dialogue:

- Strengthening macroeconomic cooperation.China promised to continue its currency exchangerate reform. Meanwhile, the U.S. made commitmentssuch as changing economic growth pattern, cuttingoff its financial deficit by at least $5 trillion withinthe next 10 years;

- Encouraging open trade and investment; Chinaagreed to increase the amount of money thatforeigners can invest in the domestic capital market.The United States undertook to promote exportinghi-tech products for civilian use to China, and be moreactive when dealing with Chinese enterprises’investment applications;

- Making joint efforts on international rule andglobal governance;

- Pushing forward stability and reforms of thefinancial market;

- Reinforcing bilateral economic relations underthe framework of the China-U.S. Strategic andEconomic Dialogue.

President Hu Jintao Meets with ROK President LeeMyung-bak and Japanese Prime Minister Yoshihiko Noda

On the morning of May 14, 2012,Chinese President Hu Jintao met withRepublic of Korea (ROK) President LeeMyung-bak and Japanese PrimeMinister Yoshihiko Noda at the GreatHall of the People. Lee and Noda arein Beijing to attend the Fifth TrilateralSummit Meeting among China, theROK and Japan.

Hu hailed the positive resultsachieved during the trilateral summitmeeting, saying the trilateral


cooperation has become an important platformfor the three East Asian countries to cementgood-neighborly friendship and expandcommon interests. He said it is very necessaryand urgent for China, Japan and the ROK tounite more closely for self development, and seekcommon development. The three countries, Husaid, should handle and deepen trilateralcooperation from a strategic height and long-term perspective, so as to promote mutual benefitand common development, bring more benefitsto the three peoples and contribute to regionaland global peace, stability and prosperity.

In general, the China-ROK and China-Japanrelationship now maintains sound developmentmomentum and exchanges and cooperation inall areas have achieved remarkable outcomes,the Chinese president said. China highly valuesits ties with the ROK and Japan, and stands readyto work with the two countries to implement theresults of high-level visits, grasp the overalldirection of bilateral ties, cement good-neighborliness, mutual trust and practicalcooperation, properly handle existing problemsand differences, respect and accommodate eachother’s major concerns, and promote sustainable,healthy and stable development of itsrelationship with the two countries, accordingto Hu.

During the meeting, Lee said ROK-China-Japan cooperation has witnessed rapiddevelopment and achieved fruitful results.

During the summit, the leaders of the threecountries held in-depth discussions on somemajor issues. He hailed the summit as beinggreatly significant as it witnessed agreementsreached on starting the construction of a freetrade area and promoting investment. Leeexpressed hope that the three countries cancontinuously strengthen exchanges andcooperation in such fields as politics, economyand culture, and make efforts to promoteregional stability and development as well asworld economic recovery.

Noda said the Asia-Pacific region is the centerof global economic growth and is full ofopportunities. Japan, China and the ROK are allimportant countries in the region and theirtrilateral cooperation is essential andindispensable. Japan, according to Noda, hopesthe three nations take the opportunities securedat the summit, to enhance mutual trust, upliftthe level of economic, trade and investmentcooperation, expand personnel exchanges,especially among young people, and make effortsto safeguard regional stability and development.

Lee and Noda also expressed willingness towork with China to enhance bilateral exchangesas well as communication and coordination onimportant regional issues.

State Councilor Dai Bingguo, ForeignMinister Yang Jiechi and other officials attendedthe meeting.

Chinese Premier Calls for Closer “Pragmatic” CooperationAmong China, Japan, ROK

Beijing, May 13 (Xinhua) — Chinese PremierWen Jiabao on Sunday called for closer“pragmatic” cooperation between China, Japanand the Republic of Korea (ROK) as the three

nations’ leaders met in Beijing.“(The three nations should) quicken the

establishment of a China-Japan-ROK free tradearea (FTA),” Wen said, according to a news


Chinese Premier Wen Jiabao (C), President of the Republic of Korea (ROK) LeeMyung-bak (L) and Japanese Prime Minister Yoshihiko Noda (R) shake handsduring the fifth meeting of the leaders of China, Japan and the ROK at the GreatHall of the People in Beijing, capital of China, May 13, 2012. The meetingkicked off in Beijing on Sunday morning. (Xinhua/Zhang Duo)

release issued by the Chinese sideafter the Fifth Trilateral SummitMeeting. The meeting was alsoattended by Japanese PrimeMinister Yoshihiko Noda andROK President Lee Myung-bak.

During the meeting, the threeleaders agreed to launchtrilateral FTA talks this year.

Establishing the FTA at anearly date will inject strongmomentum into East Asianeconomic integration, Wen said.

During the meeting, theleaders witnessed the signing ofa deal to promote, facilitate andprotect investment among thethree nations.

Wen said the three sidesshould take advantage of the signing of the dealto spur economic integration among the nations.

The Chinese premier said the three sidesshould also expand their trade settlements inlocal currencies to boost financial cooperationin East Asia.

During the meeting, Wen also called forenhanced cooperation on environmental

protection and the recycling economy, amongother areas, to realize sustainable developmentin the region.

“The three sides should continue makingefforts to deepen mutual understanding amongthe people of the nations and improve people-to-people sentiments,” said the Chinese leader.

China, Japan and ROK Ink Investment Deal

Beijing, May 13 (Xinhua) — China, Japan andthe Republic of Korea (ROK) signed a deal onSunday in Beijing to promote and protecttrilateral investment after more than 13 roundsof talks over the past five years.

The deal was clinched Sunday morning asleaders of the three countries met in the Chinesecapital for a meeting chaired by Chinese PremierWen Jiabao.

Talks aimed at reaching the deal began in2007. Since then, the three nations had held 13

rounds of official negotiations and several otherinformal consultations by March, the Ministryof Commerce (MOC) said in a statement on itswebsite.

The inked agreement, which has 27 terms andan additional protocol, includes every importantaspect that an international investmentagreement should have, said the statement.

The deal, the first legal instrument to promoteand protect investment between the threenations, is regarded as a milestone, it said.


It laid a solid foundation for theestablishment of a free trade area(FTA) among the three nations andwill ensure a transparent and stableinvestment environment forinvestors, according to the MOCstatement.

The fifth meeting of the leadersof China, Japan and the ROKkicked off on Sunday and wasattended by Japanese PrimeMinister Yoshihiko Noda and ROKPresident Lee Myung-bak.

At the meeting, the three sidesagreed to launch talks on an FTAthis year.

Chinese Premier Wen Jiabao (C, back), President of the Republic of Korea(ROK) Lee Myung-bak (1st L) and Japanese Prime Minister Yoshihiko Noda(1st R) jointly attend the signing ceremony of an agreement on promoting,facilitating and protecting investment after the Fifth Trilateral SummitMeeting among China, ROK and Japan at the Great Hall of the People inBeijing, capital of China, May 13, 2012. The meeting kicked off in Beijing onSunday morning. (Xinhua/Li Xueren)

Council of Foreign Ministers of the Shanghai CooperationOrganization Holds Meeting in Beijing

On May 11, 2012, the meeting of the Councilof Foreign Ministers of the Shanghai CooperationOrganization (SCO) was held in Beijing. ChineseForeign Minister Yang Jiechi chaired the meeting.Kazakh Foreign Minister Yerzhan Kazykhanov,Kyrgyz Foreign Minister Ruslan Kazakbayev,Russian Foreign Minister Sergei Lavrov, TajikForeign Minister Hamrokhon Zarifi and UzbekForeign Minister Abdulaziz Kamilov attended themeeting.

In a friendly and cooperative atmosphere, themeeting made political preparations for the SCOsummit to be held in Beijing in June this year. Theforeign ministers also discussed the importantcooperation items within the SCO framework,raised recommendations on the future steps andexchanged views on the international and regionalsituation.

Yang said that the world today is undergoinggreat development, changes and adjustments. Boththe international and regional situation remainscomplicated and regional hotspot issues keepemerging, bringing many unstable and uncertainfactors to the security and development of theregion. Countries in the region are committed tospeeding up the economic construction andmaintaining social stability, which will create moreopportunities for the development of the SCO.Under new circumstances, we shouldcomprehensively and thoroughly implement theconsensus reached by leaders of the member states,strengthen cooperation, consolidate mutual trust,give top priority to security and pragmaticcooperation, adhere to the new concepts ofsecurity, cooperation, development and civilizationadvocated by the SCO and step up


communication, coordination and collaboration onmajor international and regional issues. China iswilling to work with other member states topromote the development of the SCO towards theestablished goal of building a harmonious regionwith lasting peace and common prosperity.

The foreign ministers expressed satisfactionwith the positive progress made by the SCO invarious fields over the past year, especially thesuccess of the “good-neighborly friendship year”activities. They believe that under newcircumstances the SCO should better fulfill itsfunctions, effectively boost the pragmaticcooperation of member states and makeunremitting efforts to safeguard regional peaceand stability and promote common development.They agree to continue to improve the capacity ofhandling new threats and challenges, enhance thecrisis early warning and emergency responsecapabilities, deepen cooperation to fight againstthe “three forces”, drug trafficking andtransnational organized crimes, strengthencooperation on information security and jointlycope with the financial, energy and food securityissues. Member states should expand cooperationin the fields of trade, investment, transportation,communications, agriculture and innovation,gradually set up a special account of the SCO,development bank or other credit institutions andvigorously promote cultural exchanges.

They believe that the SCO should continue tostrengthen pragmatic cooperation with the

observer countries, dialogue partners, the UnitedNations and other friendly countries andorganizations.

They agree to make joint efforts to ensure thesuccess of the SCO summit in Beijing. The draft ofthe strategic plan on the SCO’s medium-termdevelopment was adopted by the meeting and willbe submitted to the Beijing summit forconsideration and approval.

The foreign ministers expressed concern overthe situation in Afghanistan and West Asia andNorth Africa. They believe that the SCO memberstates should continue to play a constructive roleto promote the peaceful reconstruction ofAfghanistan and appeal to the related parties toabide by the Charter of the United Nations andnorms of international law, respect the choice ofcountries and people in the region and ensurepeace, stability, prosperity and progress in therelevant areas.

They listened to the work reports of the SCOSecretary General Muratbek Imanaliev andDirector of the Executive Committee of theRegional Anti-Terrorist Structure DzhenisbekDzhumanbekov.

After the meeting, the foreign ministers signedthe SCO Council of Foreign Ministers meetingresolution and jointly met the press.

On the same day, they also attended theopening ceremony of the new premises of the SCOSecretariat.

III. DOMESTIC AFFAIRSIII. DOMESTIC AFFAIRSIII. DOMESTIC AFFAIRSIII. DOMESTIC AFFAIRSIII. DOMESTIC AFFAIRS

Chinese President Stresses Reaching Young People

When marking the 90th anniversary of China’snational youth organization on May 4, 2012President Hu Jintao stressed the importance of

fostering youth organizations and improving theParty’s influence among young people.

Hu delivered a keynote speech at a rally in


Chinese President Hu Jintao speaks at a ceremony marking the90th anniversary of the founding of the Communist YouthLeague of China (CYLC), in Beijing, capital of China, May 4,2012. (Xinhua Photo)

Beijing to mark the90th foundinganniversary of theCommunist YouthLeague of China(CYLC), a mass youthorganization under theleadership of theCommunist Party ofChina (CPC).

CYLC organi-zations at all levelsshould adapt to newsituations and reformtheir work, said Hu,who is also generalsecretary of the CPCCentral Committee.

CYLC organizations should uphold the “right”political direction, implement the CPC’s policiesin their work and guide young people to followthe CPC down the “road of socialism with Chinesecharacteristics,” he said.

Founded in 1922, the CYLC had a membershipof about 75.4 million as of 2007. About one in four,or 24.8 percent, of Chinese youths were membersof the body at the time, according to the CYLCCentral Committee.

The CYLC has proven itself to be a loyal aideand reserve force of the Party over the past 90years, the president said.

The CYLC serves as a bridge linking the CPCand Chinese youth, and it remains an importantsocial pillar for the socialist state power, accordingto Hu.

CPC organs of all levels should consider theirjob among young people “an essential and strategicone,” he said.

They were urged by the president to listen toyoung people, take care of their needs, encouragetheir development, support their career plans andissue policies to help create a favorableenvironment for their health, career and happiness.

In addition, Husaid Chinese youthsmust unswervinglyfollow the leadershipof the CPC, carryforward patriotism,walk in the forefrontof the times and takean active part in thesocial practices of theChinese people.

Dr. ZhengChangzhong, withthe School ofI n t e r n a t i o n a lRelations and PublicAffairs, Fudan

University, told Xinhua that the CYLC, as anassistant of the CPC, can play a positive role inconnecting young people and help enhance theCPC’s popularity.

President Hu urged the CYLC to strengthenits grassroots organizations and improve their workto serve young people and protect their legal rightsand interests.

An effective network of CYLC will allow theParty to understand and meet the needs of youngpeople, Zheng said.

“The CPC has realized that it would reachyoung people more easily if its organs can guidethem on the basis of serving their needs,” he said.

Hu also noted in the speech that youths mustbe respected as the main body of the Chinese youthmovement, urging better efforts to understand andtrust them, and give full play to their strengths.

It is very inspiring that the presidentemphasized the need to understand young people,said Huo Jingyi, an official with the CYLCShanghai committee.

“For people born in the 1980s and 1990s, it isimportant to understand them instead of simplyasking them to do what you want,” Huo said.

“Traditional ways of education might not work


today. We are trying to unite them through socialactivities like volunteer programs.”

VOICING HOPE FOR YOUTH

In the speech, Hu said the country’s youngpeople have made great achievements over thecourse of three major eras, including China’srevolutionary years, the socialist constructionperiod and the times of opening-up and reform.

From generation to generation, young peoplehave grown up and become the most energetic andactive force in society, according to the president.

“History has proved that young people areworthy of high trust and confidence, and arehighly promising,” Hu said.

The Party attaches great importance to youngpeople, he said, adding that it views China’s youthas the hope and future of the nation and thecountry, as well as an impetus for the work of theParty and the people.

President Hu, who served as first secretary of

the CYLC Central Committee Secretariat from 1984to 1985, said that current generation of Chineseyouths has both good fortune and greatresponsibility.

The president made five proposals to China’syoung people. Firstly, he expressed hope thatyouths can uphold their lofty ideals. The youngpeople should believe the socialist system withChinese characteristics has enormous superiorityand strong vitality, he said.

Secondly, young people should study hard tolearn all kinds of knowledge and practicalcapabilities, he urged. Thirdly, he suggested youthswork hard and avoid basing their lives on comfort.

Fourthly, the president said he hopes youngpeople maintain enthusiasm for innovation andcreativity and, lastly, that they can maintain nobleand honorable morals and behavior.

The event was attended by all StandingCommittee members of the Political Bureau of theCPC Central Committee.

Premier Wen Visits Cleaners, Bus Drivers

Chinese Premier Wen Jiabao, who is also a member of the Standing Committeeof the Political Bureau of the Communist Party of China (CPC) CentralCommittee, talks with environmental sanitary workers in Beijing, capital ofChina, May 1, 2012, on International Labour Day. (Xinhua/Zhang Duo)

Beijing, May 1 (Xinhua) —Chinese Premier Wen Jiabao visitedstreet cleaners and bus drivers inBeijing, and offered festivalgreetings to workers across thenation on Tuesday, InternationalLabor Day.

When visiting cleaners with theBeijing Environment SanitationEngineering Group, Wen calledupon Beijing citizens to think ofcleaners and their hard work whileenjoying the clean environment,and to respect these frequentlyunder-appreciated workers.

During his visit to bus driversand conductors with Beijing Public


Transport Holdings Ltd., Wen said their hard workshould win society-wide respect, as publictransport serves not only locals but domestic andforeign visitors.

The premier added cities should give priorityto public transit in developing transport networks.Only if buses offer convenient, comfortable,

punctual and safe services, can they become majortools of cities, and can the traffic and air quality beimproved.

Beijing Public Transport Holdings Ltd., with110,000 employees, runs 28,000 vehicles on 948routes.

Bo’s Downfall Result of Inflated Sense of Influenceby Shan Renping

The case of Bo Xilai shows that officials shouldnot overestimate their personal influence in China,or they will have the illusion of being above Partydiscipline and the law. If those who study China donot perceive this, they will misinterpret the country.

As a former member of the Political Bureau ofthe CPC Central Committee as well as the formerSecretary of the CPC Chongqing MunicipalCommittee, Bo was in a high position withextensive power. As such a high-level official isbeing investigated, there will undoubtedly be ablow to the region and authorities under hisprevious leadership.

But the impact will only be temporary. Personalinfluence and high rank will not shield waywardofficials from punishment. A few high-level officialsapparently misjudged and gambled on this fact.

With the development of new media, especiallythe Internet, some within the Party think that theirfall would be unbearable to the public. Theyoverestimate their personal influence. China hasinvestigated and punished many corrupt officials.Some of these cases have drawn great attentionbut China has not changed.

Some in the West imagined a struggle betweendifferent political factions in China after Bo’s case,and some Chinese believed it. But they overestimateBo’s personal influence.

Reform and opening-up has long beenestablished as a basic national policy of China and

the Party is working resolutely for the constructionof a socialist country with Chinese characteristics.Bo does not have the ability to change China’spolitical landscape. His influence in Chongqing isregional and cannot expand to the whole country.

There is only one way for high-level officials torealize personal ambitions and influence thedevelopment of the country positively, namely topromote the implementation of the Party’s lines.Some hold that Chongqing’s revolutionary songcampaign and crackdown on organized crime waspart of political in-fighting. They confused localpractices with national policies.

The central government has the absoluteauthority to judge local practices, while localgovernments are unable to upgrade their localactions to the national stage. There is no politicalin-fighting.

There were such controversies of ideologicalfighting during China’s revolutionary period, butthese ended when the country embraced reform.The general direction of China is decided basedon historical lessons and global patterns. Nointernal affairs can challenge this direction.

Personal influences cannot penetrate Partydiscipline and State laws. Highlighting a strugglebetween political factions may stir up publicopinion on Bo’s case, but cannot affect all of China.With further investigation, the Chinese public willget to understand this case fully.


Risks Under ControlBeijing Review

TRADE DEFICIT: A container port in Lianyungang, east China’s JiangsuProvince. According to the General Administration of Customs, a tradedeficit of $31.48 billion appeared in February, the largest monthly deficit ina decade (GENG YUHE)

The People’s Bank of China, the central bank,widened the trading band for the yuan against theU.S. dollar in April. Nowquestions about thepotential risks facing amore flexible yuan havearisen, most importantly:Are these riskscontrollable? Mei Xinyu,an associate researcher atthe Chinese Academy ofInternational Trade andEconomic Cooperation ofthe Ministry of Commerce, addressed this issue inan article to Beijing Review. Edited excerpts follow:

Enhancing flexibility of the yuan’s exchangerate formation mechanism and realizing the yuan’sfree fluctuation to a large extent have been a long-term goal for the Chinese Government. But thepotential risks of increasing exchange rate flexibilityshould never be overlooked.

History has proven to us thatcountries with a floating exchange ratehave a bigger chance to be hit byfinancial crises than those with a fixedexchange rate. Moreover, enhancedflexibility of the exchange rate broughtby international speculative “hotmoney” is more harmful fordeveloping countries.

High flexibility can have anextremely adverse effect on thefinancial market of developingcountries, because the value offinancial assets denominated in thelocal currency that residents hold willalso fluctuate and residents may turnto assets denominated in foreigncurrencies. Then, the domestic

financial market denominated in the local currencywill shrink.

Because of the hidden risks, countries with afloating exchange rate regime have little chance tosucceed. China is cautious as it widens the yuan-U.S. dollar trading band, hoping to minimize theside effects of the move.

On April 16, the People’s Bank of Chinawidened the trading band for the yuan against theU.S. dollar to 1 percent from 0.5 percent, the latestmove after the trading band was widened from0.3 percent to 0.5 percent in 2007.

Can we control the risks of increased yuanexchange rate flexibility this time? The answershould be yes.

Ripe Conditions

If the yuan’s one-way fluctuation (onlyappreciation or only depreciation) expectationprevails in the foreign exchange market, increasing


exchange rate flexibility will make the rate unstable.China didn’t dare to rashly widen the tradingband in the previous years because both the trendof foreign exchange market and the people’sexpectations are on the yuan’s appreciation.

The central parity for the yuan against the U.S.dollar has appreciated over 30 percent, since Chinaunpegged the yuan to the U.S. dollar and shiftedto a managed floating exchange rate regime basedon market supply and demand with reference to abasket of currencies in July 21, 2005.

Only when the yuan’s exchange rate sees two-way movements can the widening of the tradeband avoid causing drastic fluctuation, especiallysubstantial appreciation in the short run which isbeyond the endurance ability of China’s realeconomic entities.

In a large country like China, all economicmoves in the past, at present and in the future haveto rely on its strong real economy.

The good news is that the yuan’s one-wayfluctuation came to an end in 2011. The currency’stwo-way fluctuation was thoroughlydemonstrated in December 2011 and the first fourmonths of 2012.

Among the 19 trading days from December 6to the end of 2011, there were eight trading dayswhen the yuan depreciated against the U.S. dollar.From the beginning of 2012 to April 20, half of the70 trading days saw the yuan depreciated againstthe U.S. dollar.

From December 30, 2011 to April 20, 2012, theyuan slipped 0.05 percent against the U.S. dollar.The Chinese currency has virtually realized two-way fluctuation.

The two-way fluctuation of the yuan’sexchange rate will continue throughout the wholeyear and become a more common phenomenon, dueto the changing balance of China’s foreign trade anddramatic fluctuation in emerging economies.

Dwindling Trade Surplus

Export increase and continuous trade surplus

used to back the yuan’s appreciation. So decliningexports and trade deficit would do the contrary.

In January 2012, China witnessed drops bothin imports and exports, which has been rarely seenin the past several years. Their total value was$272.6 billion, a 7.8-percent year-on-year decrease.Exports dropped 0.5 percent to $149.94 billion andimports declined 15.3 percent to $122.66 billion.Although exports and imports both saw year-on-year increases in February, a trade deficit of $31.48billion appeared, the largest monthly deficit in adecade.

The large monthly trade deficit causeddepreciation of the yuan exchange rate in theforeign exchange market. On March 12, the centralparity of the yuan against the U.S. dollar nose-dived 209 basis points, the largest drop in onetrading day for the past one and a half years.

The lingering subprime crisis and sovereign debtcrisis that developed countries and regions aremired in have hindered their ability to import fromChina. In 2011, China’s exports to the EuropeanUnion, United States and Canada increased 14.4percent, 14.5 percent and 13.7 percent, respectively,all lower than China’s overall export growth inthe year, which stood at 20.3 percent.

Developed countries and regions are ourtraditional export markets. Although it’s estimatedthat China can gain surplus for the whole year of2012, more monthly deficits may appear. Underthis circumstance, the yuan’s appreciation trendcan be frequently interrupted by the changingbalance of foreign trade or can even be reversed.

Emerging Economies

Unstable macroeconomic situations inemerging markets will intensify the fluctuation ofthe yuan exchange rate, via the internationalfinancial market. Economic fundamentals, markettrends of primary products and increased capitalliquidity will jointly produce drastic fluctuationsin economic growth and currency exchange ratesin emerging markets.


Almost all emerging economies, except China,witnessed two-digit depreciation of theircurrencies against the U.S. dollar in 2011, such asRussia, Brazil, India and South Africa. Thedepreciation of their currency exchange rates isclosely related to their economic fundamentals.

Take India for instance. Continuous currentaccount deficits for several decades after itsindependence caused the depreciation of the rupeein 2011. Also, India imports about 75 percent ofits energy, giving the country enormous pressurefor imported inflation. India’s monetary authoritieshad to continue tight monetary policy to hedgeinflation, leading to the longest period of interestrate hikes in its history, which has brought furtherdamage to the real economy and made the rupeedepreciate even more. Rubbing salt into woundsis capital fleeing the country.

Although $7.4 billion made its way into theIndian stock market by early March, pushing upthe SENSEX index of the Bombay Stock Exchange

by 11 percent, the basic economic regime in thecountry hasn’t been utterly changed. The exchangerate increase and capital backflow in India in theprevious two months are not stable and thesituation can be easily reversed. By then, the morecapital has flown back, the severer the impact willbe when the capital flows out.

Emerging economies’ prosperity in recent yearspartially stems from the boom of the commoditiesmarket. However, the primary goods have seenobvious price decreases, with the ThomsonReuters/Jefferies CRB Index plunging 8.3 percentin 2011. It’s estimated that the import prices ofcommodities in 2012 will continue to drop, givingmore pressure to emerging economies.

Hence, economic growth rates and exchangerates in emerging economies will see furtherintense fluctuations this year, which will increasethe possibility of the two-way fluctuation of yuanexchange rate.

Feeding a Populous Country— A shortage of labor and land holds back Chinese agriculture

by Yin Pumin, Beijing Review

China’s grain imports in 2011 surpassed 61million tons, indicating that its overall self-sufficiency rate in grain was less than 90 percent.

For the past few years, China has insisted that,to ensure national food security, 95 percent is thebottom line of the country’s grain self-sufficiencyrequirement.

“But now the volume of imported grain hasreached 10.7 percent of the domestic grain output.I am afraid this will affect grain security if theimported amount keeps increasing,” said ChenXiwen, Director of the Office for the CommunistParty of China (CPC) Central Committee’s LeadingGroup on Rural Work, in March.

The supply of other major agricultural producein China also depends increasingly on theinternational market. According to Customsstatistics, China imported about 4 million tons ofcorn from the United States and 52.6 million tonsof soybeans from overseas markets in 2011.

To avoid becoming too reliant on imports,Chen suggested that the country increase its grainoutput by protecting arable land and furtherimproving agriculture through science andtechnology.

Preserving Farmland

Despite the country’s enormous demand for


grain, farmland in China has shrunk overthe past decade.

According to the Ministry of Land andResources (MLR), China’s farmland hasshrunk by more than 8 million hectaressince 1997. In August last year, China hadless than 121.7 million hectares of arableland, MLR figures showed.

To ensure grain security, China hasset a “redline” to guarantee its arable landnever falls below 120 million hectares.

Land use sanctioned by localgovernments to construct projects such asgolf courses, railways and industrialparks, is an obstacle to the nation’sfarmland preservation, according to theministry.

“Local governments’ reliance on land transferas a major revenue source poses a threat to thecountry’s grain security,” Chen said. He pointedout that some local governments are using the name“land reform” to expropriate arable land, causingthe amount of available arable land to decrease inquantity and quality.

According to the MLR, the area of land useprojects that violate state farmland preservationpolicies surged 11 percent year on year to 16,400hectares in the first nine months of 2011.

Environmental pollution from the excessive useof agricultural chemicals and the inappropriatedisposal of heavy metal has also taken its toll.

Heavy metal pollution has so far damagedapproximately 10 percent of the country’sfarmland and caused the loss of 12 million tons ofgrain every year, according to research by theInstitute of Geographic Sciences and NaturalResources Research of the Chinese Academy ofSciences (CAS).

In 2011, China restored a total of 300,000hectares of farmland and developed 4 millionhectares of high-quality farmland, according toMLR data.

The ministry plans to add 27 million hectares

of high-quality farmland throughout the countryby the end of 2015. “The Central Government hasattached great importance to preserving farmlandand local governments have also enhanced theirefforts to protect farmland in recent years,” Xusaid.

Less Attractive Business

Li Qiang, Dean of the School of Humanitiesand Social Sciences at Tsinghua University, saidthat the outflow of young labor, including thosewith technological abilities from rural areas hasalso become a main obstacle to China’s agriculturaldevelopment.

In recent years, with continuous price hikes,the cost of farming has risen. The rising cost oflabor, land and agricultural materials such aspesticides and fertilizers has squeezed the profitsof farmers and greatly affected their willingnessto plant crops, although the Central Governmenthas taken measures since 2006 to lower taxationon the farming sector, increase farmers’ incomeand support construction of agriculturalinfrastructure.

“Since farming is less profitable these days,more and more young farmers have left homeseeking jobs in cities,” said Zheng Fengtian, aprofessor at the School of Agricultural Economics

NEW SEEDS OF HOPE: An old farmer works at his farmland in thesuburb of Nanning, southwest China’s Guangxi Zhuang AutonomousRegion, on May 14, 2011 (HUANG XIAOBANG)


and Rural Development of theRenmin University of China inBeijing.

Statistics from the NationalBureau of Statistics (NBS) showedthat China’s urban populationexceeded its rural population for thefirst time at the end of 2011,accounting for 51.27 percent of thecountry’s total.

Official figures show that Chinanow has about 150 million migrantworkers, 60 percent of whom areaged 30 or under. This group oflaborers, born in the 1980s and 1990s,are better educated than theirparental generation.

However, a survey conducted by BeijingNormal University last year showed that only 7.7percent of young migrant workers and 13.3percent of older workers want to return to thecountryside. The proportion of the populationengaged in agriculture dropped to 38.1 percent in2011, according to NBS figures.

“A large amount of arable land is being farmedby women and the elderly left behind in ruralareas,” said Tang Rennin, Deputy Director of theOffice for the CPC Central Committee’s LeadingGroup on Rural Work.

With capable farmers moving to cities, moreand more rural farmland is being left uncultivated.An MLR survey showed that about 2 millionhectares of arable land in China are in disuse eachyear.

On March 26, the Institute of GeographicSciences and Natural Resources Research of theCAS released a report on rural development,urging the country to make full use of rural landand infrastructure abandoned by farmers whomove to cities to find work.

“The untended land and infrastructure arebecoming a major obstacle for the coordinateddevelopment of urban and rural areas,” the report

said.The institute’s surveys showed that a huge

amount of rural land that was originally taken overfor housing building now lies idle, and the use ofland in many areas is highly inefficient.

The report estimated that 7.6 million hectaresof land can be released for reuse if the countryimproves its rural construction land managementand releases untended areas for farming andforestry.

“Up to one third of the land in traditionalagricultural regions is not in use, being occupiedby empty houses and abandoned farmland,” saidLiu Yansui, author of the report.

The number of rural residents could fall to 280million by 2020, from 300 million now, accordingto the report.

The report urged the government toincorporate the management of “hollow villages”and optimized distribution of rural land into itsgeneral strategy to protect farmland and improvepeople’s livelihoods.

According to the report, 16.5 million hectaresof land have been allocated to farmers asresidential land, which can be used by farmers tobuild houses, but they are not allowed to transfer

OFF THE FIELD: Migrant workers from the countryside look foremployment vacancies at a job fair in Shanghai on February 9 (LIN CHAO)


it to others if they move.“Most villagers would return the land if they

could receive compensation,” said Liu Weidong, aresearcher with the institute.

Survey results in east China’s ShandongProvince show that about 90 percent of villagersthink abandoned residential land is a waste ofresources, while nearly 60 percent said they wouldbe willing to return the land if they wereadequately compensated.

In a pilot project being carried out in southwestChina’s Chongqing, villagers can trade theirresidential land after reclamation.

However, Li Maosong, Director of theAgriculture Information Office of the ChineseAcademy of Agricultural Sciences, believes it is verylikely that most of the idle land in rural areas,especially those that are not far from cities, will bedeveloped for construction of residential housingand shopping centers, instead of being used asfarmland.

“More and more rural residents are shunningagricultural life and heading for cities. Therefore,it is impossible to develop much of the idle landfor agricultural production,” he said.

Professionals Needed

The growing exodus of ruralresidents has not only led to more andmore farmland being left unattended, butit has also caused a brain drain in thecountryside.

In March, 15 academicians with theCAS and the Chinese Academy ofEngineering submitted a joint letter tostate leaders, warning that China wouldface a dearth of farmers unless somestrategic measures are taken to stop thenew rural generation abandoningagricultural work.

“The most significant measure is toreduce the income gap between farmersand non-agricultural workers,” Zheng

said.China has strict price controls on grain. “In a

country with nearly one fifth of the world’spopulation, grain price control is vital to socialstability. But the policy today has become ahindrance to people sticking to farm work,” Zhengsaid.

Zheng suggested that the government shouldincrease subsidies to farmers in order to encouragethem to work the land.

Currently the subsidies given to grain farmersare about 1,200 yuan ($190) per hectare. “Thesubsidy is too low,” Zheng said. “For those farmerswho have a large area of farmland, the subsidiesmight be meaningful but in China, most ruralresidents are small-scale farmers.”

In early March, Premier Wen Jiabao said in hisGovernment Work Report to the session of theNational People’s Congress, that the CentralGovernment will allocate 1.2 trillion yuan ($190billion) this year to develop the agricultural industryand the country’s rural areas, an increase of 186.8billion yuan ($30 billion) from last year.

The premier said that China would continueto raise the average minimum purchase price ofwheat and rice by 148 yuan ($23.46) and 320 yuan($50.72) per ton this year. In addition, he pledged

MECHANICAL AGRICULTURE: Farmers harvest their rice withcombines at the Friendship Farm in northeast China’s HeilongjiangProvince in September 2011 (XINHUA)


that the government would continue to increaseagricultural subsidies and special subsidies wouldbe given to farmers if fuel prices rose, as fuel hasbecome indispensable for mechanical farming.

According to the Ministry of Agriculture, inthe first two months of this year, the CentralGovernment earmarked 132.5 billion yuan ($21billion) for various agricultural subsidies.

Zheng also calls on the government tointroduce farming studies as part of compulsoryeducation and provide agricultural training to theyoung rural generation after school.

“In major grain producing areas such as HenanProvince in central China, less than 20 percent oflocal high school graduates go to college. It’sessential to offer farming skill training that meetslocal conditions while nurturing young people’sinterest in agricultural production,” he said.

Tang with the Office of the CPC CentralCommittee’s Leading Group on Rural Work saidthat the country will train more professionalfarmers and lure others back from urban areas tocontribute to agricultural production and the ruraleconomy.

He said that a series of preferential policies,such as credit and tax supports, would be given tothe young generation of farmers to lure them backto rural areas to develop modern farming or evenset up private farms with advanced technologies.

In its first policy document this year, whichwas issued on February 1, the Chinese Government

pledged to provide more training on science andtechnology in rural areas to produce professionalsin the agricultural sector to facilitate growth.

During his March visit to Henan, Premier Wensaid that guidance offered by agricultural experts,as well as farmers’ hard work, is the key to a goodharvest.

In Huoqiu, a county in east China’s AnhuiProvince, 32 professional crop-protection teamshave been set up with training in agriculture tohelp farmers in their fields and offer advice. Manyprovinces are now attempting to learn from theexperience.

With adequate techniques and marketingexpertise, farmers can make significant revenue.In north Beijing’s Changping District, strawberryplanting has become a prosperous business underthe guidance of professionals and has broughtwealth to local farmers. According to localauthorities, farmers can earn 15,000 yuan ($2,377)from a greenhouse each year.

Zhang Taolin, Vice Minister of Agriculture, saidin March that, in order to guarantee the cultivationof new, hi-tech-minded farmers, the governmentwill increase its spending on agricultural educationand training.

“The future of farming depends on well-educated professionals who have a good grasp ofagriculture and marketing techniques,” Zhengsaid.

Super Farmer— A Chinese farmer uses economies of scale to increase agricultural productivity

by Tang Weibin & Huang Yan, Beijing Review

A large stretch of freshly plowed farmlandbathes in the warm March sunlight in LonggangVillage in Xiaogan City, central China’s HubeiProvince. Beside the field, farmers employed by

the Chunhui Group are digging and repairingirrigation channels.

Chunhui Group is an agricultural companythat farms 6,667 hectares of land and boasts an


A BIG PRIZE: Tan Lunwei stands next to a tractor awarded to him by thelocal government for his contribution to agriculture (XIAO YIJIU)

annual production value of 2.5billion yuan ($396 million). Itoperates four agriculturalcooperatives and one researchinstitute. Because of the group’sscale, its president Tan Lunwei isnicknamed a “super farmer.” Tanused to be a businessman. He wentinto farming two years ago becauseof his insights into modernagriculture.

In 2007, Tan, then a real estatedeveloper, entered the grainstorage business. Since localpurchases could fill only 80 percentof his granaries’ capacity, everyyear he had to purchase grain fromHenan Province, a major grain producer incentral China.

But according to Tan, transporting grain wascostly and the quality of grain was notguaranteed. Then, the idea of growing grainhimself first occurred to him.

“When visiting villages, I was shocked to find

SOWING SEASON: A farmer from the Chunhui Agricultural MachineryCooperative tills a field on March 6 (XIAO YIJIU)

that those working in the field were all aged intheir 60s and most young farmers had moved tocities to work. Large parcels of land were lyingin waste. Ten years later, these farmers will betoo old to grow crops. Then who will producegrain?” Tan said. This thought increased hisdetermination to farm the land.

Scale Production

When traditional agriculturalproduction methods are challengedby rapid urbanization, agriculturemust be modernized to ensure foodsafety, Tan said.

In March 2010, ChunhuiGroup’s subsidiary Weiye ChunhuiRice Co. leased 1,333 hectares ofland in the rural area of Xiaogan togrow rice.

In 2011, the group set upLonggang Land ShareholdingCooperative, which covered eightvillages in Sancha Township inXiaogan. Chunhui Groupcontributed agricultural machines,


while villages contributed land. The cooperativeis managed jointly and profits are shared.

Liu Shuntian, director of the cooperative, saidthat a few years ago many plots of arable landin local villages were left uncultivated, and atmaximum, the idle land accounted for half ofthe total availability.

“Now through intensive management, cropshave been planted in all the land parcels. Weare very happy to see that,” Liu said.

Tan has also formed cooperatives withfarmers in other places in Hubei such asHanchuan, Yingcheng and Yunmeng. Throughcooperative, long-term land leases or seasonalshort-term leases, Chunhui Group managesnearly 6,667 hectares of land.

“We can realize mechanization and scale ofproduction and increase labor productivity bypooling land together,” Tan said.

In the compound of Chunhui Group is aspectacular array of agricultural machines,including tractors, rice transplanters, planters,harvesters and mist sprayers.

“These are not all our machines. We set upan agricultural machinery cooperative andfarmers can contribute their machines as a share.The income from leasing machines in sowing andharvesting seasons is split according to shareownership,” Tan said.

On January 4, members of the LonggangLand Shareholding Cooperative got their firstdividend. Wang Yulan, a villager in LonggangVillage, said that she was paid 7,500 yuan($1,189) for renting out her 1.1 hectare of landlast year, and she was paid an additional5 ,500 yuan ($872) for working as anagricultural worker in the cooperative for fourmonths.

“Now I can earn a salary without leaving myhometown. The deal is pretty good,” she said.

Tan is drawing a new blueprint. “In two tothree years, we are going to add 33,333 hectares

of rice paddies, so that we can further improveproductivity and increase farmers’ income,” hesaid.

Science-oriented

The Chunhui Agricultural Academy isChunhui Group’s research arm, running a largeintelligent seed nursery. An imported seedgerminator bought with 300,000 yuan ($47,553)has significantly improved its seed germinationrate and seedling quality.

In Chunhui Group’s rice paddies, a U.S.-produced computer-controlled land scraper isused to level the field, which can improve landproductivity and save water and fertilizers. Asolar-powered extermination lamp is used tokill insects. A security monitoring room hasbeen built to monitor the 400 plus hectares ofland near Longgang Village. The fields 10 kmaway and vegetables in the seedl inggreenhouse are all under the watch ofsurveillance cameras.

Tan said that an asset more valuable forChunhui Group than machinery is agriculturalscientists and technicians. Last year, ChunhuiGroup recruited more than 30 college graduates.They are assigned to work in the field, engagingin agricultural production and management.

Wang Jinwei graduated from the AgronomyDepartment of Xiaogan College. He said, “Here,I can put what I have learned into use, andrealize my value in life.”

At an intelligent drying plant that can dry480 tons of grain everyday, Tan said that manyproblems in traditional agricultural productioncan be solved by extending the production chain.

“At present, the profit from crop plantingis still very low. Last year, I just broke even,”he said, “We should continue to complete theproduction chain, further process agriculturalproducts, develop ecoagriculture and improvegrain warehousing and logistic services.”


IV. SOUTH CHINA SEAIV. SOUTH CHINA SEAIV. SOUTH CHINA SEAIV. SOUTH CHINA SEAIV. SOUTH CHINA SEA

Foreign Ministry Spokesperson’s Answers onHuangyan Island in South China Sea

May 7

Q: It is reported that the Philippines recentlyannounced renaming the Huangyan Island andwould demolish all signs that are irrelevant tothe Philippines, especially those about China.How does China comment?

A: The Huangyan Island is China’s inherentterritory. China has indisputable sovereignty overthe Huangyan Island. Any action taken by thePhilippines over the Huangyan Island is illegal andinvalid, and cannot alter the fact that theHuangyan Island belongs to China. China remainscommitted to the diplomatic resolution of thecurrent situation. We strongly urge the Philippinesto come back to the right track of diplomaticresolution since any word or deed that willcomplicate or magnify the situation cannot helpsolve the issue.

May 8

Q: Vice Foreign Minister Fu Ying said duringher meeting with the Philippine Charge d’Affairethat China was not optimistic about the situationof the Huangyan Island and it had made all kindsof preparations for the Philippines’ attempt toescalate the situation. What do thesepreparations include? Do they include militarymeans?

A: The current Huangyan Island situation wasprovoked unilaterally by the Philippines. Over aperiod of time, the Philippines has been escalatingthe situation regardless of the consequences. Chinahas made remarks to point out its serious mistakesand urged it to concretely respond to China’s

concerns and demands, and come back to the righttrack of the diplomatic resolution of the HuangyanIsland situation.

Q: China believes that the Philippines isresponsible for the Huangyan Island incident.However, previously, the Philippines proposedto submit the issue to international arbitration.Does China think that handing this issue to animpartial third party is common sense? Since thePhilippines believe that the sovereignty over theIsland is disputed, how can China still say thatit has indisputable sovereignty over the Island?

A: On your first question, the Huangyan Islandis China’s inherent territory, and China hasindisputable sovereignty over it. Isn’t it a weirdthing in international affairs to submit a sovereigncountry’s territory to international arbitration?What a chaos the world will be in if this happens?

On your second question, I want to point outsolemnly that China has full historical andjurisprudential evidence for its sovereignty over theHuangyan Island. Whatever the Philippines do orsay regarding the sovereignty of the Island cannotalter the fact that the Island belongs to China.

May 9

Q: Recently, Vice Foreign Minister Fu Yingcalled a meeting again with the PhilippineCharge D’affaires over the Huangyan Islandissue and said that China was not optimisticabout the situation, and had made all kinds ofpreparations for the Philippines’ attempt toescalate the situation. Does China believe thatthe Huangyan Island issue will further escalate?

A: On the Huangyan Island issue, Vice Foreign


Minister Fu Ying fully expounded on China’sposition and demands to the Philippines duringher representations on May 7. We noticed that thePhilippines have kept making strong-wordedremarks on the issue to play up public feelings,which seriously undermines the atmosphere ofChina-Philippines relations. The Philippines hasalso incited domestic public and overseas nationalsto stage anti-China protests. Such behaviours havetriggered strong reaction and concerns from theChinese people at home and abroad. We hope thePhilippines will not do further damage to bilateralrelations.

I want to reiterate that China remainscommitted to the diplomatic resolution of thecurrent situation. We once again urge thePhilippines to seriously respond to China’sconcerns and come back to the right track as soonas possible.

May 10

Q: It is reported that the Spokesperson of thePhilippine Department of Foreign Affairsrecently remarked on the Huangyan Island issuethat the Philippines was trying to make newdiplomatic initiatives in the hope of relaxing thesituation. How does China comment?

A: We have noticed the above remarks and aswell as the Philippine Department of ForeignAffairs’ restoration of diplomatic contact with theChinese Embassy in the Philippines. China hasreiterated its position to the Philippines, demandingit to respect China’s sovereignty over the HuangyanIsland and refrain from any acts that maycomplicate or magnify the situation. We will closelymonitor the situation and the actual actions of thePhilippines.

Q: It is reported that the Philippines willstage a large-scale anti-China protest in thecountry tomorrow. Some Chinese travelagencies have also suspended organizing toursto the Philippines. Has the Chinese ForeignMinistry taken corresponding measures too?

A: The Philippines has kept making strong-worded remarks on the Huangyan Island issue toplay up public feelings, which seriouslyundermines the atmosphere of China-Philippinesrelations. The Philippines has also incited domesticpublic and overseas nationals to stage anti-Chinaprotests. Such behaviours have triggered strongreaction and concerns from the Chinese people athome and abroad. We hope the Philippines willnot do further damage to bilateral relations.

China is highly concerned over the safety ofChinese nationals and institutions in thePhilippines. We demand the Philippines to takeeffective measures to earnestly protect the safetyand legitimate rights and interests of Chinesecitizens and institutions in the Philippines.

May 11

Q: Some Philippine people held protestsoutside the Chinese Embassy in the Philippinesover the Huangyan Island incident. How doesChina comment?

A: The Huangyan Island is China’s inherentterritory. The Philippine side’s incitement of itspeople to launch demonstrations and protestsagainst China is an erroneous move which willamplify and complicate the situation. We arefollowing closely the security environment ofChinese citizens in the Philippines, and havedemanded the Philippines to take effectivemeasures to safeguard security and legitimaterights and interests of Chinese citizens andinstitutions there. We hope that the Philippine sidewill take concrete actions to respect China’sterritorial sovereignty in earnest, and refrain fromany act that might escalate the situation.

Q: Given the simmering situation over theHuangyan Island, does China believe that thePhilippine side should pay for its provocations?

A: The Huangyan Island incident wascompletely caused by Philippine military vessels’harassment of Chinese fishermen. I would like tostress again that the Huangyan Island is China’s


inherent territory and the Philippines must respectChina’s sovereignty and refrain from any act thatmight amplify and complicate the situation. Weurge the Philippines to meet us half way andcontinue to stick to a settlement through diplomaticconsultation. We will follow closely thedevelopments of the situation and the actualactions of the Philippines.

Q: The Huangyan Island has drawninternational attention, and India today calledupon both China and the Philippines to exerciserestraint. How does China respond to that?

A: The Huangyan Island is China’s inherentterritory, and China’s will and resolve to safeguardnational sovereignty and territorial integrity isunwavering. The current situation over the Islandwas caused by Philippine military vessels’harassment of Chinese fishermen and theresponsibility lies with the Philippine side. China’sposition of resolving the incident throughdiplomatic consultation remains unchanged. Weurge the Philippines to show sincerity and meet ushalf way, respond to China’s concerns in earnest,and refrain from any act that might escalate thesituation.

May 12

Q: South China Sea Fishery Bureau of theMinistry of Agriculture announced that from May16, most waters in the South China Sea, includingwaters off the Huangyan Island, will enter aperiod of two and a half months’ fishingmoratorium. Is this related to the currentsituation over the Huangyan Island? Will the

Chinese fishery administration ships andmaritime surveillance ships withdraw from thatarea? Internet users said this move is for thepreparation of military actions against thePhilippines. What is China’s response?

A: The fishing moratorium system has been anadministrative measure of competent departmentof China for many years. It’s purpose is to protectthe marine biological resources in relevant seawaters and has nothing to do with the currentHuangyan Island incident. You may consultcompetent department for specifics. China hasrepeatedly expounded on its position on theHuangyan Island issue and remains committed tothe diplomatic resolution of it.

Q: Philippine Foreign Secretary del Rosarioreportedly said that the Philippines would neveragree on China’s demands on the HuangyanIsland and diplomatic dialogues between the twosides would at most reach a “temporaryagreement” which could not help solve the issuefundamentally. The Philippines asks for acomprehensive resolution of the HuangyanIsland issue from political, legal and diplomaticaspects. What is your comment?

A: China’s principled stance on the HuangyanIsland issue has been made clear. China demandsthe Philippines to earnestly respect China’sterritorial sovereignty and do not take measuresthat will escalate and complicate the situation. Inparticular, diplomatic negotiations should beadhered to in resolving the current situation, ratherthan continuing to incite public opinion and sendcontradictory messages.

Text of Interview of Director-General of theMFA Department of Boundary and Ocean Affairs

Deng Zhonghua by Phoenix Satellite TV

On May 8, 2012, Director-General of theDepartment of Boundary and Ocean Affairs of the

Ministry of Foreign Affairs Deng Zhonghuareceived the interview on the issue of Huangyan


Island by Moderator Anthony Yuen of PhoenixSatellite TV’s News Talk. Deng introduced thebackground of the Huangyan Island issue andChina’s position and policy proposition. Hestressed that the Philippines should return to theright track of seeking diplomatic solution to theHuangyan Island issue. The following is the textof the interview.

Yuen: our standoff with the Philippines on theHuangyan Island issue has lasted nearly a month.According to the latest developments, it seems thatthe Philippines has no intention to solve the issueand things are getting intensified. Yesterday ViceForeign Minister Fu Ying summoned the charged’affaires of the Philippine embassy in China. Herewe would like to note that it has been almost oneyear that there is no Philippine ambassador toChina. The ambassador appointed by its newPresident Aquino was not approved by theCongress. That’s why until now they have had noambassador but only a charge d’affaires to China.Yesterday, Fu Ying for the third time summonedtheir charge d’affaires to express our seriousconcern about the issue. We have also made itclear that China is ready to take the necessarymeasures if the matter continues to worsen.

Under such circumstances, people familiarwith diplomacy know that China is trying its bestand, to put in a more popular way, China hopesthat the Philippines wakes up to the danger at lastmoment. If they don’t, we will take necessarymeasures. Therefore, today we are very glad to haveDirector-General of the Department of Boundaryand Ocean Affairs of the Ministry of Foreign AffairsDeng Zhonghua here to give us a detailed analysisof the developments over the past 29 days or almostone month from a legal point of view. Mr. Deng,the Philippines repeatedly claims that HuangyanIsland belongs to its territorial waters and in fact ithas been taking actions accordingly very early on.The Philippines claims that Huangyan Island is itsterritory, but the whole world knows this argumentis very far-fetched. Could you tell us what is wrong

with the Philippines from the standpoint of lawand jurisprudence?

Deng: thank you, Mr. Yuen. It is undisputableand crystal clear that Huangyan Island is China’sterritory. Talking about this, I would like to saythat a lot of historical facts fully prove HuangyanIsland is Chinese territory. Several hundred ofyears ago or even one thousand years ago, theChinese have engaged in activities in theHuangyan Island waters. It is recorded in theChinese history and I do not need to elaborate onthis. But I want to say that all the previous namingof the islands in the South China Sea by theChinese government includes Huangyan Island.For example, the Chinese government announcedthe naming of the South China Sea islands in 1935and the naming of Huangyan Island in 1947 and1983. In the form of legal act of the government,the naming itself proves that Huangyan Island isChinese territory. The maps published by theChinese government in all ages contain HuangyanIsland. This is the first point.

On the other hand, Huangyan Island forgenerations has been a traditional fishing groundof the Chinese fishermen. For example, accordingto a recent report, fishermen in Hainan (QinmenTown) always call the Huangyan Island waterstheir ancestor waters. They have been fishing therefor generations. What’s more, Chinese people fromall sectors also go to Huangyan Island often toconduct scientific researches and install radios, etc.There are lots of these activities. That’s why I sayit is an undisputable fact that Huangyan Island isChina’s territory.

In addition, let’s look at the Philippines. ThePhilippines for a very long period of time haspublically stated that Huangyan Island is not itsterritory. In 1990, the Philippine Ambassador toGermany said clearly in a letter to the Germanradio amateurs that Huangyan Island is not theterritory of the Philippines. I believe Mr. Yuen mustknow that the comment, especially the writtendocument of the Ambassador Extraordinary and


Plenipotentiary of one country to anotherrepresents the official stance of his or her country.Furthermore, in 1994, an official document of thePhilippine Department of Environment andNatural Resources also clearly stated thatHuangyan Island is not the Philippine territory.Then, when did the Philippines begin claiming thatHuangyan Island is its territory? It is after 1997.But even after 1997 all the official maps publishedby the Philippines do not include Huangyan Islandin its territory, even the 2006 map.

Yuen: here we have a 2006 map you mentioned.This is the whole map. I would like to ask ourcameraman to slowly zoom in. Right here we cansee Huangyan Island on the left side. The crossline in the middle is the Philippines’ so-called borderline. It is 128 degrees east longitude.

Deng: 118 degrees.Yuen: 118 degrees. Along this line, the right

side is the territory of the Philippines and the leftside is our Huangyan Island. In other words, thismap published by the Philippines itself…

Deng: its official map…Yuen: shows that Huangyan Island is neither

the possession nor in the territorial waters of thePhilippines.

Deng: it is not the territory of the Philippines.Yuen: we can say that until now the

Philippines has been making trouble out ofnothing. This place is not yours and your officialmap indicates that. Well, now Aquino not onlysays this place belongs to the Philippines but alsogives it a new name, right?

Deng: so I want to say that even the 2006 mapdoes not include Huangyan Island in its territory.It proves that for a very long period of time thePhilippines publicly and formally announcedHuangyan Island is not its territory. It startedtaking legal actions to claim that Huangyan Islandis its territory in 2009 when it amended its law ofterritorial sea baseline. Now, as the Philippines stirsup trouble on Huangyan Island, it has been callingthe Island different names, even sometimes using

the name of Huangyan Island itself. It has officiallycome up with a name for Huangyan Island in arush. I think that the act itself is ridiculous andexactly proves that Huangyan Island is China’sterritory rather than the territory of the Philippines.

Yuen: people who know anything about theinternational law will know that your claim ofterritory should have international recognition. Asfar as you know, is there any country in the worldrecognizing the Scarborough Shoal reef which isin fact the Huangyan Island?

Deng: so far I’ve not seen any countryrecognizing that Huangyan Island is the territoryof the Philippines. I’ve not heard any countrymaking such a statement.

Yuen: we have read in the newspaper that somepeople, including its minister of foreign affairs saidthat China, as a big country, bullies the Philippines.They claim that Huangyan Island is their territory.He alleged that our acts in the past showed thatwe bullied them. You have been involved inhandling this crisis from the very beginning. HasChina bullied the Philippines?

Deng: after hearing this news, I am verypuzzled and very confused. Why does thePhilippines claim that China bullies it? I want tolist several facts. The incident took place on April10. The Philippines’ warship blocked the lagoonwithin the Huangyan Island. Their armed soldiersboarded the Chinese fishing boat which wasconducting normal operations within the lagoonand forced the Chinese fishermen to take off theirshirts under the sun for more than 2 hours. So, isthis the case of China bullying the Philippines?

After the Chinese fishermen reported to ourrelevant departments, we immediately sentgovernment ships, specifically the Chinese marinesurveillance and fishery administration ships to thesite. Our ships went there to protect the life andproperty safety of our fishermen. They exercisedthe maximum restraint and avoided furtherdeterioration of the situation. Moreover, our marinesurveillance and fishery administration ships are


civil vessels. What they were faced with was a3000-ton warship which at present is the biggestwarship of the Philippines. Is this the case of Chinabullying the Philippines?

Third, the Philippines has been taking a verytough attitude towards this incident since it tookplace. Its senior government officials, includingsenior military officials, have been making veryaggressive, irresponsible and even wrongstatements on this issue to mislead the Philippinepeople. Is this a case of China bullying thePhilippines? Meanwhile, during this period of time,the Philippine government has been encouragingthe Philippine media to hype up the unfriendlymood towards China. Mr. Yuen, you might knowthat recently there have occurred severaldemonstrations against the Chinese Embassy in thePhilippines. It is understood that the Philippineswill launch even larger scale of demonstrationsagainst Chinese embassies and consulates aroundthe world. They even said publicly that they willmake China lose face on this matter. Is this thecase of China bullying the Philippines? I tell youthe fact because I hope the Chinese and thePhilippine people and the international communityknow the truth and are not misguided by the wrongand misleading statements.

Yuen: Mr. Deng, in the past month, from thePhilippine President Aquino to the Philippineforeign minister, they have made a lot of remarks.From the perspective of a media practioner, someremarks are simply intolerable. For instance, thePhilippine foreign minister lately said in the USthat they will make China “pay a heavy price” onthe Huangyan Island issue. As you said just now,the Philippines has done many such things lately.We have to ask that what do you think is thereason and the intention of the Philippinegovernment?

Deng: after the Huangyan Island incidenthappened, we immediately lodged solemn

representations and strong protests to thePhilippines, demanding it to immediately stopviolating China’s sovereignty and damaging thelife and property safety of Chinese fishermen andfishing vessels in China’s Huangyan Island watersand at the same time asking its vessel to leave thewaters immediately. In the process of handling theissue, the Philippines repeatedly said it hopes solvethe matter through diplomatic channels andexpressed such hope publicly. But what is theactual situation? Based on what has happened overthe past more than 20 days, we feel that they haveno intention to solve the issue through diplomaticchannels but pursue the opposite direction, which,as I have already said, can be proven by what thePhilippines has been doing during this period oftime. As Mr. Yuen said earlier, we have seen verystrong words and deeds on the Philippine side. Itencouraged its people, including overseasnationals, to launch protests and demonstrationsin front of the Chinese embassies and consulatesand said it will make the Chinese people “lose face”.Furthermore, it also vowed to suspend diplomaticdialogue with China over the Huangyan Islandissue. In fact, after April 25, the Chinese embassyin the Philippines and the Philippine Departmentof Foreign Affairs suspended diplomatic contact.

Yuen: what does this mean? We call them andsay we want to meet them, but they turn us down?

Deng: the Philippines publicly declared tosuspend diplomatic dialogue with the ChineseEmbassy in the Philippines on the HuangyanIsland incident. Moreover, over the past more thanone year, the Philippines has not sent ambassadorto China. Therefore, it on the one hand claims thatit hopes resolve the issue through diplomaticchannels and on the other hand unilaterallydeclared cessation of diplomatic dialogue. I wonderhow exactly it is going to solve the issue throughdiplomatic channels. On the contrary, some of itsremarks and behavior have further complicated


and escalated the situation. Therefore, we havebeen observing and trying to figure out the intentionof the Philippines. Does it intend to solve this issuepeacefully as soon as possible or to furthercomplicate and escalate it to the extent ofimpacting the bilateral relations and even peaceand tranquility in the South China Sea? We donot know.

Yuen: the Philippines has sent out a lot ofconfusing messages lately. Aquino said yesterdayduring an interview by the Philippinenewspaper that the Huangyan Island issue hastwo dimensions. One is political and the other iscommercial. In the commercial dimension, thePhilippines can cooperate with China to developoil or natural gas in that area jointly. What isthe purpose of saying this? Any commercialbehavior should be based on the political statusquo. The political status quo is that China hasthe sovereignty over this place and developmentor not is China’s call. Joint development shallnot be decided by the Philippines, right?

Deng: you are right, Mr. Yuen. On this issue,I do not understand what the speech of thePhilippine President yesterday means. We havemade it very clear to the world and also to thePhilippines that Huangyan Island is China’sinherent territory and we have full sovereigntyover it. We can certainly cooperate with thePhilippines in related waters, but we must bevery clear on the issue of sovereignty.

Yuen: the Philippines said the day beforeyesterday that typhoon is coming and its marinepolice ship may leave the waters and return backafter typhoon passes. According to yourjudgment, does this statement mean that thePhilippines is looking for the opportunity toclimb down or is it because typhoon is reallycoming. Is there any warning about typhoon offthe coast of the Philippines?

Deng: I’m not in a position to judge the

consideration or intention of the Philippinesbehind this statement. But as far as China isconcerned, I have said that Huangyan Island isChina’s inherent territory and there is no disputeover that. The Huangyan Island waters are thetraditional fishing ground of the Chinesefishermen for generations. We fished, fish and willcontinue to fish in the Huangyan Island watersjust like our ancestors. The life and property safetyof the Chinese fishermen and their fishing boatsmust be guaranteed, their personal dignity mustnot be insulted and their normal fishing operationscannot be disturbed or blocked.

Therefore, our government vessels willcontinue to provide services for and administerour fishing boats in the waters. We also demandthat the Philippine side shall neither furtherdisturb or harass our fishermen and fishing boatsnor obstruct or block the operation of ourgovernment vessels.

Yuen: in other words, we have clearly toldthe Philippine authorities that this place is myterritory and in my territorial waters. In thefuture, if our fishing boats, marine surveillanceships or fishery administration ships aredisturbed, we will fight to the end.

Deng: we certainly do not want to see thathappening, but it is totally legitimate that ourown fishing boats and fishery administrationships conduct activities in our own territory. Ofcourse we want to maintain our legitimate rights.It is our territorial sovereignty and legitimateright and interest. We must safeguard ourlegitimate rights and interests.

Yuen: during this period of time, the wholecountry, regardless of government, civil societyor academic community, has been paying closeattention to this matter because it has gonebeyond our endurance. What on earth does thePhilippines want? Therefore, Vice ForeignMinister Fu Ying made it very clear yesterday


when summoning the Philippine charged’affaires that we have to take the appropriateactions if our patience runs out. Of course, wedo not want to make this hypotheticalprediction. But if China takes further actions,what will these specific measures be?

Deng: as you said, Vice Foreign Minister FuYing yesterday comprehensively elaborated tothe Philippine charge d’affaires the position ofthe Chinese Government on the HuangyanIsland issue and our views about the future. Iwould like to take this opportunity to tell ouraudiences that China and the Philippines areclose neighbors only separated by a strip ofwater. We have a history of more than onethousand years of friendly exchanges. In termsof history, culture or even ties of blood, we arejust like distant relatives. In fact, since the TangDynasty we have had exchanges with thePhilippines. Such exchanges and contactsbetween China and the Philippines, especiallythe business, cultural and social exchanges arebecoming closer and closer. It should be said thatwe have one thousand reasons to maintain anddevelop such traditional friendly relationsbetween China and the Philippines without anysingle reason to sabotage such relations. Weshould engage in win-win cooperation. Thisshould be the situation we expect.

It is based on such a consideration that wehave exercised the maximum restraint to handlethe issue although the Philippines humiliatedwith force the unarmed Chinese fishermen. Westill hope to properly deal with this issue withthe greatest sincerity and patience together withthe Philippines through diplomatic channels soas to resolve it appropriately as soon as possibleand bring peace and tranquility back to theHuangyan Island waters. Meanwhile, we alsohope the Philippines return to the correctdiplomatic channels and work with us to solvethis issue properly.

Yuen: a lot of international media haveanalyzed the intention of Philippine PresidentAquino. He certainly knows that the Philippines’military power is not comparable to that ofChina. He hopes to get the promise of the US.After he held a so-called 2+2 meeting with theUS last week, he was told by the US side thatthe US would not take any position on this issue.We have one minute left. Could you tell uswhether the US has made any gesture to Chinaas far as you know?

Deng: on April 30, the US and the Philippinesheld a 2 +2 meeting between their foreignministers and defense ministers. After themeeting, the US publicly stated its attitudetoward this issue. According to the US, it takesno position on the territorial issue in the SouthChina Sea. That is to say, it holds no position onthe territorial dispute over Huangyan Island. Butwe have noticed that the US expressed hope fora peaceful solution. It should be said that Chinaholds the same idea on this point.

Yuen: yes, we always have hope for peace.Deng: we always hope to solve the dispute

peacefully and properly, no matter in the pastor at present. We are making efforts continuouslyand hope to appropriately solve this issuetogether with the Philippines.

Yuen: well, thank you, Mr. Deng very muchfor your introduction today. We can see thataccording to official point of view China doesnot want any armed or intense conflict in thisplace. We hope to solve the issue peacefully, butwe must warn the Philippines sternly that Chinawill not turn a blind eye if the situation escalatesor the Philippines takes other illegal or irrationalmoves.

Deng: I have said that we will do our utmostto solve this issue with the greatest sincerity andpatience. On the basis of safeguarding China’sterritorial sovereignty and related rights, we willwork with the Philippines to find a solution.


What One Needs to Know About the South China SeaNational Institute for South China Sea Studies, China

1. WHERE IS THE SOUTH CHINA SEA?WHAT AREA DOES IT COVER?

The South China Sea is situated to the south ofChina’s mainland, and is connected by narrowstraits or waterways with the Pacific Ocean to theeast and the Indian Ocean to the west. It is a semi-closed sea extending from northeast to southwest.

Covering an area of about 3.5 million squarekilometers, the South China Sea stretches 2,000kilometers from north to south and 1,000kilometers from east to west.

2. WHAT ISLANDS DO CHINA’SNANHAI ISLANDS IN THE SOUTH CHINASEA CONSIST OF?

China’s Nanhai Islands consist of four groupsof islands scattered in the South China Sea, namelythe Dongsha Islands, Xisha Islands (also referredto as the Paracel Islands), Zhongsha Islands andNansha Islands (also referred to as the SpratlyIslands).These four groups of islands, which consistof islands, sand, reefs, shoals and banks of differentnumbers, are all parts of China’s territory. Amongthem, the Nansha Islands are the largest both inthe number of islands and reefs and in sea areaswhere they spread. The Taiping Island, the biggestof the Nansha Islands, covers an area of about 0.5square kilometer and has green vegetation andfresh water.

3. WHAT IS THE SOUTH CHINA SEAISSUE ABOUT?

The South China Sea issue has two relatedaspects: One is territorial disputes issue, whichresults from some coastal states’ territorial claimsover all or part of China’s Nansha Islands and theirillegal occupation of some of these islands and reefs.The other issue is maritime delimitation in the

waters in South China Sea where the coastal stateshave overlapping maritime jurisdiction claims.

4. HOW HAS THE SOUTH CHINA SEAISSUE COME ABOUT?

Before the end of the 1960s and early 1970s,the other coastal states of the South China Sea didnot challenge China’s sovereignty over the NanshaIslands, and the South China Sea was calm andfree of dispute.

Later, as the development of marine resourcesaccelerated, the prospect of oil and gasdevelopment in the waters around the NanshaIslands attracted attention from various parties.Some coastal states started to make territorialclaims on the islands and reefs in China’s NanshaIslands. Some even sent troops to occupy someislands and reefs, leading to the current territorialdisputes over the Nansha Islands. At the same time,as the law of the sea evolved, costal statesestablished respective regimes of exclusiveeconomic zones (EEZ) and/or continental shelf.These claims overlap in some cases, thus creatingthe issue of delimitation of some waters in the SouthChina Sea.

5. WHAT IS THE BASIS FOR CHINA’SSOVEREIGNTY OVER THE ABOVE-MENTIONED ISLANDS IN THE SOUTHCHINA SEA?

It was China which discovered, and firstnamed and developed the Nansha Islands. It wasthe Chinese government that first exercisedsovereignty over the Nansha Islands, a practicethat has continued without interruption untiltoday. The Chinese discovered the Nansha Islandsas early as in the Han Dynasty (2nd century B.C.).Since the Tang Dynasty (late 8th century and early


9th century), the successive Chinese governmentshave exercised jurisdiction continuously over theNansha Islands by taking administrative measuresand carrying out naval patrol. These historical factsare shown in the official documents, localchronicles and official maps of different dynastiesof China.

Since the early 20th century, the successiveChinese governments have continued to upholdChina’s sovereignty over the Nansha Islands. In1933, France invaded nine Nansha Islands. TheChinese government made representations toFrance over the invasion, and there was publicprotest against it in China. In the period of theRepublic of China, the Chinese government tooka series of measures to defend China’s sovereigntyover the Nansha Islands. The measures includedproviding national flags to fishermen and fishingvessels operating on related islands and in theiradjacent waters, carrying out investigations of thehistory and geography of the Nansha Islands, andrenaming and approving the names of individualand groups of islands in the South China Sea,including the Nansha Islands by the government’smapping authorities. In 1939, Japan occupied theNansha Islands during the war of aggressionagainst China. China made unremitting efforts torecover the occupied islands. After Japan’ssurrender, the Chinese government recovered theNansha Islands in 1946. By taking a series of legalprocedures including holding a take-overceremony, setting up stone tablets and stationinggarrison on the islands, China resumed exercise ofsovereignty over the Nansha Islands.

After the recovering of the Nansha Islands byChina, the Ministry of the Interior of the Chinesegovernment in December 1947 drew the map ofIslands on the South China Sea, marking on it an11-section dotted line starting from the BeilunheEstuary at the China-Vietnam Border in the westto area northeast off the Taiwan Island in the east.The names of four islands in the South China Seaas well as the names of a large number of individual

islands, reefs, banks and shoals within the dottedline were marked on the map. The Map of Islandson the South China Sea was officially published inFebruary 1948 by the Ministry of the Interior as anannex to the Map of Administrative Regions of theRepublic of China. The dotted line of the SouthChina Sea was thus made public and has been usedever since.

For a long period of time after the officialpublication of the dotted line of the South ChinaSea by the Chinese government, no other countrymade representations to China against it. In fact,in the maps published in many countries, thedotted line of the South China Sea was adopted.These maps include the Standard World Atlaspublished in 1952 by Japan, the annex pictures ofthe Great Soviet Encyclopedia published in 1953by the Soviet Union and the Atlas Laroussemoderne published in France in 1964.

China continued to maintain sovereignty overthe Nansha Islands since the founding of thePeople’s Republic of China in 1949. ForeignMinister Zhou Enlai, in his 1951 statement on theUS and UK’s draft treaty of peace with Japan andthe San Francisco Conference, explicitly stated thefollowing: “The Xisha Islands and Nanwei Island,just like the Nansha, Dongsha and ZhongshaIslands, have always been China’s territory.Although they had been occupied by Japan forsome time during the war of aggression waged byJapanese imperialists, they were all taken back bythe then Chinese government following Japan’ssurrender.” Thus, China’s sovereignty over theXisha and Nansha Islands “will not be in any wayaffected whether or not the US and UK’s drafttreaty of peace with Japan contains provisions onthis subject and no matter how these provisionsare worded.” The Chinese Government issued theStatement of the People’s Republic of China on theTerritorial Sea in 1958, reaffirming that theDongsha Islands, Xisha Islands and NanshaIslands are Chinese territories. In 1959, the Officefor Xisha, Nansha, and Zhongsha Islands’ Affairs


under the government of Guangdong Province,was opened by the Chinese government on theYongxing Island, which is a part of the XishaIslands. The office became a part of the newly-established Hainan Province in 1988. The StandingCommittee of the National people’s Congress ofChina adopted the Law of the People’s Republicof China on the Territorial Sea and the ContiguousZone in 1992, reiterating China’s sovereignty overall these islands in the South China Sea, includingthe Nansha Islands.

In particular, it should be pointed out thatsome coastal states of the South China Sea hadalways explicitly recognized China’s sovereigntyover the Nansha Islands before the 1970s.

6. WHY ARE THE TERRITORIAL CLAIMSON THE NANSHA ISLANDS MADE BYOTHER COUNTRIES INCONSISTENT WITHINTERNATIONAL LAW?

Under international Law, territorialsovereignty is exclusive in nature. Since China’sterritorial sovereignty over the Nansha Islands haslong been established under international law, noother country should make territorial claim onthese islands. To do so constitutes violation of itsobligation of respecting other countries’ sovereigntyand territorial integrity undertaken underinternational law.

One country states that its territorial claim isbased on the “geographical proximity” on theground that the Nansha Islands or some of theislands and reefs are closer to its territory.However, under international law, “geographicalproximity” does not justify the invasion by onecountry of parts of the territory of another country.Many countries have territories which are far awayfrom their home territory but are closer to othercountries.

Some countries allege that as the NanshaIslands or some parts of it are located within thelimits of their claims of 200-nautical-mile EEZ andcontinental shelf, they are entitled to claim

territorial sovereignty over these islands. Suchallegation constitutes violation of international lawof the Sea (UNCLOS). According to the principlethat “the land dominates the sea” in internationallaw, it is territorial sovereignty of coastal states thatgenerates their sovereign rights and jurisdiction inthe EEZ and over the continental shelf. TheUNCLOS has no provisions regarding change of astate’s land territory, nor does it entitle a countryto take into possession the islands and reefs ofanother country on the basis of its EES andcontinental shelf claims. The UNCLOS does notconstitute the basis for territorial claims on China’sNansha Islands. Such claims both misinterpret andabuse the UNCLOS and breach the principle ofinviolability of territorial sovereignty, a keyprinciple enshrined in the Charter of the UnitedNations.

Some other countries try to legitimize theirunlawful territorial claims over the invaded andoccupied parts of the Nansha Islands bystrengthening actual control over them. Suchattempts are futile. Acquisition by occupation ofTERRA NULLIUS, i.e. territory which is not underthe sovereignty of any state, is an old rule underinternational law. However, the Nansha Islandsare not terra nullius. They have been parts ofChina’s territory since ancient times. Acts ofinvasion and occupation of some of the islands andreefs in the Nansha Islands are illegal. Accordingto international law, illegal acts do not generatelegal rights. The Chinese government has neverrecognized such invasion and occupation aslawful, and has all along taken actions to upholdits sovereignty.

7. WHAT HAS CHINA DONE INSEEKING A SOLUTION TO THE SOUTHCHINA SEA ISSUES?

The Chinese government is committed tosettling the South China Sea issue by peacefulmeans with the countries concerned through directand friendly negotiation in accordance with


international law and the contemporary law of thesea, including the principles and legal regimeestablished in the 1982 UNCLOS. Pending the finalsettlement, all countries concerned should exerciserestraint and refrain from taking any action thatmay escalate or complicate the disputes. Theyshould, in a spirit of understanding andcooperation, enter into provisional or transitionalarrangements, including “shelving disputes andcarrying out joint development” in disputedareas.

China has maintained contact and frankexchange of views over the South China Sea issuewith the relevant countries in an effort to seek aproper settlement by peaceful means throughfriendly consultation. It maintains bilateraldialogue and consultation with other countries thatare parties to the South China Sea issue, andprogress of varying degrees has been made.

In 2000, after 26 years of negotiation, Chinasettled with Vietnam, on the basis of internationallaw and in an equitable manner, the delimitationof territorial sea, EEZ and continental shelf in BeibuBay and made arrangements for fisherycooperation in it.

In addition, China reached agreement withViet Nam on principles of properly addressingmaritime issues. Both countries agreed to keep inplace the negotiation mechanism on maritimeissues, explore a fundamental and durable solutionacceptable to both sides and consistent withinternational law, actively study and discuss jointdevelopment, refrain from taking action that couldcomplicate or escalates disputes, and work togetherto maintain stability in the South China Sea.

In November 2002, China signed with ASEANmember states the Declaration on the Conduct ofParties in the South China Sea (DOC). The partiesconcerned to the South China Sea issue undertake,under the DOC framework, to resolve disputesthrough negotiation, exercise restraint and refrainfrom carrying out activities that could complicateor escalate disputes and affect peace and stability.

Pending the peaceful settlement of territorial andjurisdictional disputes, the parties concernedundertake to intensify efforts to seek ways, in thespirit of cooperation and understanding, to buildtrust and confidence, and explore or undertakecooperative activities.

On China’s initiative, the oil companies ofChina, the Philippines and Viet Nam, with theapproval of their respective governments, signedin 2005 a tripartite agreement for undertaking jointmaritime seismic research in the South China Sea.

China and Malaysia have also reachedagreement to resolve disputes in accordance withuniversally recognized principles of internationallaw and maintain peace and stability in the SouthChina Sea.

China and Brunei agree to work together topromote peace and stability in the South ChinaSea.

8. WHY SHOULDN’T THE SOUTHCHINA SEA ISSSUE BE SETTLED THROUGHMULTILATERAL CHANNELS?

The South China Sea issue involves disputesbetween sovereign countries over territorialsovereignty and maritime jurisdiction. In otherregions in the world where similar issues exist, thegeneral practice is for parties involved to negotiatedirectly among themselves. The South China Seaissue is a complicated and sensitive one. Directnegotiation between countries to the dispute isthe best way to settle it. This is also confirmed inthe DOC sighed by China and ASEAN memberstates.

Many countries hope to see peace and stabilityin the South China Sea. This is understandable.However, if countries or internationalorganizations that are not parties to disputes inthe South China Sea were to get involved in settlingthe disputes or even become referees, it would onlyturn this region into an international politicalwrestling ground, create more obstacles and affectpeace and stability in the South China Sea.


9. WHY CAN’T CHINA AND ASEANNEGOTIATE A SETTLEMENT OF THESOUTH CHINA SEA ISSUE?

The South China Sea issue is a dispute betweenChina and some other coastal countries of theSouth China Sea, not one between China andASEAN. ASEAN, as a regional organization,obviously cannot make territorial and maritimejurisdictional claims or participate in negotiationsas a party concerned. For ASEAN as a group tonegotiate with China the settlement of the SouthChina Sea issue is incompatible with internationalpractices.

10. WHAT HAS CHINA DONE TOCONSERVE AND DEVELOP FISHERYRESOUCES IN THE SOUTH CHINA SEA?

The South China Sea has always been one ofChina’s traditional fishing grounds and importantfishing areas, where Chinese fishermen startedfishing centuries ago. For a long time after the 2ndcentury B.C., generations of Chinese fishermenmade a living from fishing in the South China Sea.Today, one can still see the ruins of their residenceson China’s Xisha Islands and Nansha Islands.Around 400,000 Chinese fishermen conductfishing in the South China Sea, and fishery is vitalto their livelihood.

While developing fishery in the South ChinaSea, the Chinese government has also taken stepsto conserve the fishery resources. China began toimpose a limit on the total number and power ofmarine fishing vessels in 1998 and began to enforcesummer moratorium in the South China Sea in1999. China has also stepped up efforts to buildhydrobiological reserves and has set up fournational hydrobiological nature reserves and fournational reserves for aquatic resources. It has alsoactively increased fish stock and built artificial fishreefs. These efforts will improve the marinebiological environment and repair the ecologicalsystem in the South China Sea.

11. WHY DOES CHINA CALL FOR“SHELVING DIFFERENCES AND CARRYINGOUT JOINT DEVELOPMENT”?

Under international law and according tointernational practices, countries involved inmaritime delimitation disputes may, pending thefinal settlement of such disputes, reach provisionaland transitional arrangements which include jointresources development in disputed areas with theunderstanding that their respective positions onsovereignty and jurisdiction are not affected. Noparty to the disputes should impose its claims ofjurisdiction on other parties. Based on this legalunderstanding, China calls for “shelvingdifferences and carrying out joint development”in the handling of oil and gas development issuesin the disputed areas in the South China Sea. Jointdevelopment will not only bring benefits to allparties concerned, but also create favorableenvironment and atmosphere for settling disputesin the future. In 2005, Chinese, Philippines andVietnamese oil companies, with the approval oftheir respective governments, carried outtripartite marine seismic cooperation in somewaters in the South China Sea, moving towardsjoint development in the disputed areas in SouthChina Sea.

12. DOES THE SOUTH CHINA SEA ISSUEAFFECT FREEDOM OF NAVIGATION IN THESOUTH CHINA SEA?

The South China Sea is an importantnavigation route in the West Pacific. Somecountries are concerned that disputes in the SouthChina Sea will affect freedom of navigation in thisregion. The fact is that, the South China Sea issueonly involves disputes between coastal countriesconcerning sovereignty over islands and reefs andmaritime jurisdiction. Such disputes do not affectfreedom of navigation in the South China Seaenjoyed by all countries in accordance withinternational law. There has not been any case of


freedom of navigation being affected because ofsuch disputes.

The Chinese government takes seriously thesecurity of and unimpeded access to internationalshipping lanes in the South China Sea. Allcountries enjoy freedom of navigation andoverflight for vessels and airplanes in the SouthChina Sea. China and other coastal countries havemade a lot of efforts to uphold freedom ofnavigation and maritime security in the SouthChina Sea, including cooperation in fightingagainst piracy and criminals at sea. As a result,the South China Sea is peaceful, and its shippinglanes are open. To maintain freedom of navigationand ensure maritime security in the South ChinaSea is the interests of the coastal states and all theother countries.

13. WHAT DOES THE DECLARATION ONTHE CONDUCT OF PARTIES IN THE SOUTHCHINA SEA (DOC) ACHIEVED?

The DOC is a political document signed byChina and ASEAN countries in 2002 to maintainpeace and stability in the South China Sea, enhancepolitical mutual trust between the parties andpromote cooperation. The DOC is not a documentsigned between China and ASEAN as a group,nor is it a legal document for settling disputes inthe South China Sea. The parties concerned haveheld many meetings on implementing the DOCand have reached agreement on the Guidelines forthe Implementation of the DOC in July 2011. Theyalso reached initial agreement on carrying outcooperation in specific areas such as marineenvironment protection and safety of maritimenavigation and transportation.

Mainland, Taiwan Responsible for South China SeaSovereignty: Spokeswoman

Beijing, April 25 (Xinhua) — People on bothsides of the Taiwan Strait share responsibility forsafeguarding the country’s sovereignty over theSouth China Sea islands and their adjacent wa-ters, a mainland spokeswoman said Wednesday.

Fan Liqing, spokeswoman for the StateCouncil’s Taiwan Affairs Office, made the remarkat a routine press conference, adding that Chinahas indisputable sovereignty over the South China

Sea islands and its adjacent waters.She responded to a reporter’s question that it’s

a good idea for the two sides of the Taiwan Straitto conduct joint development of the South ChinaSea.

Fan also said the Diaoyu Islands and their af-filiated isles are the inherent territory of China andboth sides of the Taiwan Strait bear responsibilityfor protecting them.

Fishing Ban to Start in South China Sea

Haikou, May 16 (Xinhua) — A two-and-a halfmonth fishing ban will start at noon Wednesdayin most part of the South China Sea to rehabilitatemarine resources, according to fishery authorities.

The Hainan provincial marine and fishing

department said all 8,994 locally-registered fishingvessels are all moored, affecting 35,611 people.

The annual fishing ban reinforced since 1999will last from May 16 to August 1 this year, coveringareas north of the 12th parallel of north latitude,


Vessels anchor in Batou Township of Denghai District in Shantou, southChina’s Guangdong Province, May 15, 2012. China will soon impose a routinefishing ban in northern parts of the South China Sea, authorities announcedMonday. The fishing ban will last from May 16 to August 1, covering areasnorth of the 12th parallel of north latitude, including Huangyan Island butexcluding most of the Nansha Islands, according to a spokesman from theSouth China Fishery Administration Bureau of the Ministry of Agriculture.(Xinhua/Yao Jun)

including Huangyan Island butexcluding most of the NanshaIslands.

The provincial fishing authoritysaid fishing vessels with NanshaIslands fishing permits aremandated to install and switch onvessel positioning equipment so thatthey would not accidentally enterthe banned water areas.

The fishing ban is also applicableto foreign ships.

A spokesman from the SouthChina Fishery AdministrationBureau of the Ministry ofAgriculture said earlier this weekthat fishing activity of foreign shipsin the banned areas will be seen asa “blatant encroachment on China’sfishery resources.”

V. TIBET TODAYV. TIBET TODAYV. TIBET TODAYV. TIBET TODAYV. TIBET TODAY

Self-immolations in Tibetan RegionsPolitically Motivated: Lawmaker

Brussels, May 15 (Xinhua) — Recent self-immolations by monks in China’s Tibetan regionswere part of the Dalai Lama clique’s scheme tointernationalize the Tibet issue, a Tibetan legislatorsaid here Tuesday.

In a symposium held at the Brussels Instituteof Contemporary China Studies (BICCS), QiangbaPuncog, chairman of the Standing Committee ofthe People’s Congress of China’s TibetAutonomous Region, said more than 20 people haddied from self-immolation since March 2011,adding all Tibetans grieved over the losses of lives.

The Tibetan lawmaker noted there are morethan 3,500 monasteries and 140,000 monks andnuns in Tibet and other Tibetan-populated regions,but none of the self-immolation incidents took placewithin the Tibet Autonomous Region.

“Any one with reason could tell whether (theself-immolations) were the result of a lack ofreligious freedom in the Tibet Autonomous Region,or that of a political scheme to internationalize theTibet issue,” he said.

Qiangba Puncog said self-immolations runagainst the Tibetan tradition and Buddhist


teachings, adding that “(the Dalai Lama clique) isresponsible for the losses of lives.”

The former Tibet autonomous region chairmanunderlined that development is currently the mostpressing issue for Tibet.

“The future of Tibet is in the hands of usTibetans,” he said.

Qiangba Puncog is leading a Chinese NationalPeople’s Congress delegation to Belgium. Morethan 20 officials and experts from the BICCS

attended the symposium.William Frei, minister of parliamentary affairs

of the Swiss mission to the European Union, saidthe symposium was “very comprehensive,” andthe Tibet delegation had answered questions “inan open way.”

“It is good to have them (the Tibet delegation)here and answer (our questions) directly,” he saidafter the symposium.

China Lodges Representation OverDavid Cameron-Dalai Meeting

Beijing, May 15 (Xinhua) — China on Tuesdayvoiced strong indignation and stern objection toBritish Prime Minister David Cameron’s meetingwith the Dalai Lama, and lodged representationto Britain.

Foreign Ministry spokesman Hong Lei said themeeting has grossly interfered in China’s internalaffairs, hurt the feelings of Chinese people and sentfalse signals to the “Tibet independence” forces.

Cameron and Deputy Prime Minister NickClegg together met in London on Monday withthe Dalai Lama, who Hong said is “a political exilewho has long been engaged in anti-Chinasecessionist activities in the name of religion.”

The occasion was organized by the British sidedespite repeated representations from China,Hong said.

The Chinese Foreign Ministry in Beijing andthe Chinese Embassy in London have both lodgedsolemn representations to the British side, headded.

The spokesman said the issue regarding Tibetis of exclusive concern to China’s internal affairs.

He stressed, “China objects firmly to anyforeign leader’s meeting with the Dalai Lama inany form and opposes any country, or anyone,interfering in China’s internal affairs by usingTibet-related issues.”

Hong urged the British side to seriously treatChina’s solemn stance, stop indulging andsupporting anti-China “Tibet independence”forces and take immediate and effective measuresto minimize the baneful impact, so as to safeguardthe overall development of bilateral ties.

China Voice: Dalai Lama Apathetic Toward Loss of Lifeby Zhou Yan

Beijing, May 16 (Xinhua) — The Dalai Lamahas openly refused to condemn the act of lamas inChina’s Tibetan areas setting themselves on fire.

The so-called “spiritual leader” of TibetanBuddhists this week turned a cold shoulder to theloss of life with an abrupt “No answer” to a


journalist’s question about whether monks shouldstop their self-immolation.

The Dalai Lama is apparently basking in glorythese days, after receiving the 1.77-million-U.S.dollar Templeton Prize and meeting with BritishPrime Minister David Cameron, to the indignationand protest of the Chinese government.

The remnant influence of the “spiritual leader,”even after his alleged retirement last year, delightedhim so much that he does not seem to care aboutthe loss of ordinary lives.

Or maybe he never did.The lives of ordinary Tibetans were always

considered dirt cheap under the Dalai Lama’s rulein old Tibet.

The 14th Dalai Lama has allegedly been fightingfor the rights and interests of Tibetans since he fledChina in 1959. Such claims, however, are merelymeant to appease devout Tibetan Buddhists whostill have faith in him and to persuade his Westernpatrons to continue to support his “Tibetindependence” movement, which aims eventuallyto separate Tibet from China.

With that goal in mind, the Dalai Lama wascertainly happy to see the Tibet issue become aninternational political issue. Furthermore, the spateof self-immolations over the past year has servedhim well by drawing wider international attention.

It is thus easy to understand why the DalaiLama has remained silent and apathetic towardthe deaths and injuries resulting from these tragicevents.

Instead of denouncing and calling for an endto the suicidal acts that deviate from the tenets ofBuddhism, the Dalai Lama even praised the“courage” of the self-immolators.

More than 20 Tibetans have died from self-immolation since March 2011. Most of whom werelamas, nuns or former members of the clergy, saidQiangba Puncog, chairman of the StandingCommittee of the People’s Congress of southwestChina’s Tibet Autonomous Region.

However, none of the self-immolations tookplace within the Tibet Autonomous Region. Mostof them took place in the Tibetan areas of Sichuan,Qinghai and Gansu provinces.

Investigators have found a striking similarityamong the suicidal acts: Most of the self-immolators had shouted separatist slogans suchas “Free Tibet” before setting themselves on fire.

In many cases, photos of the designated self-immolators had been sent in advance to separatistforces abroad, indicating that the self-immolationshad been carefully planned.

After each of the tragedies, separatist forcesimmediately published these photos alongsidepictures of the self-immolation scenes to play upthe situation.

“Tibet independence” groups then notified thepress, hoping to launch a media campaignhighlighting their one-sided view of the events.

To encourage self-immolations, they evenoffered compensation for the dead.

This is clear evidence that the chain of tragicevents was politically motivated and the DalaiLama’s separatist forces were behind them.

Such apathy and cruel reality make us evenmore aggrieved over the loss of innocent lives. Thesemisguided people have made senseless sacrificesfor an illegal undertaking that has been wronglypainted as rosy, and for an idol who has used themjust to achieve his personal goals.

17-Article Agreement and Peaceful Liberation of Tibet(Digest from White Paper Published by Chinese Government)

On May 23, 1951 the Agreement of the CentralPeople’s Government and the Local Government

of Tibet on Measures for the Peaceful Liberation ofTibet (“17-Article Agreement” for short) was


signed in Beijing, marking the peaceful liberationof Tibet.

The peaceful liberation of Tibet was animportant part of the cause of the Chinese people’sliberation, a great event in the Chinese nation’sstruggle against imperialist invasion to safe-guardnational unity and sovereignty, an epoch-makingturning point in the social development history ofTibet, and a milestone marking the commencementof Tibet’s progress from a dark and backwardsociety to a bright and advanced future.

The 17-Article Agreement was signed, andTibet was liberated peacefully.

The Central People’s Government andChairman Mao Ze-dong had never given up theirefforts for the peaceful liberation of Tibet. Evenduring the Qamdo Battle, Mao Zedong urged thatthe Tibetan “delegation should come to Beijing assoon as poss-ible.” The Qamdo Battle led to adivision within the local gov-ernment of Tibet,when patriotic and advanced forces got the upperhand, while the pro-imperialist separatist RegentTaktra Ngawang Sungrab was forced to resign.On November 17 the 14th Dalai Lama assumedpower, and the political situation in Tibet startedto develop in the direction of peaceful liberation.

On January 2, 1951 the 14th Dalai Lama movedto the Tibetan city of Yadong, on the one handtaking a wait-and-see attitude, and on the otherseeking support from Britain, the US, India andNepal while awaiting an opportunity to fleeabroad. But no country wished to publicly support“Tibet independence.” Correspondingly, the localgovernment of Tibet was divided into a Kashagwho remained in Lhasa and a temporary Kashagin Yadong. Following this, an “officials’ meeting”of the local government of Tibet decided to formallysend delegates to Beijing for peace negotiationswith the Central People’s Government. In his letterto the Central People’s Government to express hiswish for peace talks, the 14th Dalai Lama said,“In the past when I was young and had not taken

power, the Tibetan-Han relationship wasrepeatedly disrupted. Recently I have notifiedNgapoi (Ngapoi Ngawang Jigme) and hisentourage to set out for Beijing as soon as possible.Racing against time, we will add another twoassistants to Ngapoi, who will go to Beijing viaIndia.” Inspired by the Central People’sGovernment’s policy of equality of all ethnic groupsand peaceful liberation of Tibet, the localgovernment of Tibet sent a delegation for peacetalks with the Central People’s Government. Theplenipotentiary representatives included the ChiefRepresentative Ngapoi Nga-wang Jigme, andrepresentatives Kemai Soinam Wangdui, Tub-dainDaindar, Tubdain Legmoin and Sampo DainzinToinzhub. The representatives set out in twogroups, and assembled in Beijing on April 27, 1951.They received a warm welcome from the CentralPeople’s Government, which also organized a dele-gation, including Chief Representative Li Weihanand repre-sentatives Zhang Jingwu, ZhangGuohua and Sun Zhiyuan. After friendly talks, theCentral People’s Government and the localgovernment of Tibet signed the Agreement of theCentral People’s Government and the LocalGovernment of Tibet on Measures for the PeacefulLiberation of Tibet in Beijing on May 23, 1951.

Regarding the peace talks and the signing ofthe 17-Article Agreement, we need to stress somebasic historical facts as follows:

First, the peace talks were held on the premisethat the local government of Tibet admitted thatTibet is an inseparable part of China. When the14th Dalai Lama and the local government of Tibetdispatched the delegation, every representative gota sealed plenipotentiary certificate, which statedthe name and identity of the holder on theenvelope, and inside the statement that Tibet is apart of China and some other sentences. Theessential problem to be solved during the talks wasto enhance ethnic solidarity and safeguardnational unity. As Ngapoi recalled, on this problem,

Monks of Mount Putuo picked Buddha tea in Zhoushan City, east China's Zhejiang Province on April 23, 2012. The Buddha Tea of Mount Putuo, which is planted around the local temples, is well-known for its good taste and its connotation of Buddhist culture. The Buddha Tea can be traced back to the Tang Dynasty (618-907) and was used to be tribute to Buddha or gift to noble guests. Currently, there are 272 hectares of Buddha tea planted in the Putuo District of Zhoushan City. With the annual yield of 120 metric tons on average, the Buddha tea creates more than 1.5 million U.S. dollars of production value for the local economy.

Postal Regd. No. DL-SW-16/4034/12-14R.N.I. No. 47440/88

May 2012

participants show their skills in a tea stir-frying ...€¦ · a deck reception on the visiting...

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