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China, US kick off new round of strategic parleys

WASHINGTON—Two of the world’s most powerful nations have kicked off a new round of strategic talks in Washington, to underscore their shared responsibilities as “stake-holders” in the global economic and security system.
The meeting between U.S. Deputy Secretary of State Robert Zoellick and Chinese Vice Foreign Minister Dai Bingguo follows their inaugural talks in Beijing in August. Analysts said the joint diplomatic effort, initiated by Washington, is aimed at managing some frictions in their increasingly complex relationship.
US State Department deputy spokesman Adam Ereli said the two-day meeting in Washington would cover bilateral issues as well as international topics including Iraq and Sudan and the nuclear ambitions of North Korea and Iran.
“They will be looking at a number of issues — bilateral, security-related, economic related — in a strategic context, with the aim of exploring the responsibility that both countries share to make the international system more secure and more prosperous over the long term,” Ereli said.
“They will also look to the long term, over the horizon, to the future of U.S. and Chinese relations and what we hope that the relationship will look like,” Ereli added.
Yin Chengde, a researcher with the China Institute of International Studies on Sino-US relations, said the ongoing dialogue is expected to focus on issues of “strategic, overall and long-standing importance” to the two countries, such as trade, security and energy.
“It is also expected to pave the way for Chinese President Hu Jintao’s visit to the US early next year,” Yin told China Daily in an interview. Yin said Sino-US relations have gained a sound momentum this year thanks to frequent high-level visits and expanding communication channels.
“The Bush administration is adjusting its policies towards China, from a ‘strategic competitor’ to a ‘stake-holder’,” Yin said.
Washington and Beijing cooperate in areas including counter-terrorism and six-party talks to try to end the North Korean nuclear crisis. But they have often sparred over human rights, trade and currency disputes and China’s military spending. And, China’s approach towards Sudan, Iran, Venezuela and other states which are at odds with the United States have added to the friction, analysts said.
Ereli said the talks aimed “not to prescribe courses of action or specific moves” but to discuss shared responsibilities as “stake-holders” in the world system.
Zoellick unveiled the phrase “responsible stake-holder” in a key policy speech in September in which he called China to assure the world it would use its growing power responsibly.
Ereli said Washington would explain to Beijing “how we see China playing a positive role in that area, and how China might be willing to consider how the rest of the world sees it”.
The Taiwan question, although still very important to Sino-US relations, is gradually dwindling in its significance in bilateral ties, said Chinese researcher Yin.
Yin said the structural contradictions in China-US relations would not change if the US adopts a policy of both “co-operation” and “containment”.
                                                                                                                                                                         (The Daily Mail-China Daily news exchange item)


Beijing rejects Tokyo’s concerns over mily spendings
From Max Lee
The Daily Mail’s Special Correspondent in Beijing

BEIJING—Foreign Ministry Spokesman Qin Gang said on Thursday that China’s military spending is open and transparent when asked to comment a speech by Japanese Foreign Minister Aso Taro urging China to increase military transparency.
Qin said at a routine news conference that China adheres to peaceful development and a defensive national defence policy, adding its military expenditure should not only cover the livelihood and training expenses of those serving in the army but also meet the country’s current national defence requirements in a world with numerous complicated changes.
China has already written clearly about its military expenditure in a white book on Chinese national defence, openly giving details on its military growth, said Qin.
“The Japanese side should not make a fuss over the military spending of China over and again but explain, as soon as possible, to its neighbors as well as the international community about its own military moves,” said the spokesman. “Some of its recent moves have caused concern to both the neighboring countries and around the globe”.
The most important thing, as Qin acknowledged, on the Japanese side, should be making substantive efforts by taking actions to overcome the political hurdles impeding the growth of friendly and cooperative relations between Japan and its Asian neighbors, including its relationship with China and the Republic of Korea (ROK).
Qin denied the possibility of discussing defence issues at the upcoming ASEAN (the Association of Southeast Asian Nations) plus China, Japan and the ROK Summit and the East Asian Summit by saying that the main focus of the summits would be on the economic and social issues of the region.
He added that there was no arrangement for a meeting to bring together the foreign ministers of China, Japan and the ROK in the near future for reasons known to all.
The government plans to trim its budget deficit by about 1.7 percent to 295 billion yuan (US$36.5 billion) in 2006 while continuing to wind down infrastructure spending, the China Securities Journal said yesterday.
The planned cut, if approved, would be much smaller than this year’s 6 percent reduction from 2004, which helped bring down the government deficit to 300 billion yuan, or just over 2 percent of gross domestic product.
“The Central Government deficit will be reduced by 5 billion yuan next year from this year’s level”, the newspaper said, citing unnamed government officials.
Chinese leaders have pledged to redirect spending from roads and airports to social security to encourage consumption under a shift in long-term strategy to help tilt economic growth from an over-reliance on investment and exports.

China to build dam in bid to halt river pollution

HARBIN—China is considering a proposal raised by Russia to build a temporary dam at the confluence of its Heilong and Wusuli rivers to prevent the water source of a neighbouring Russian city being contaminated, a local water resources official said yesterday. Khabarovsk, a major city in the Russian Far East, relies heavily on Wusuli River, on the border, for civilian and industrial use.
The toxic spill in Songhua River, a tributary of Heilong River, was caused by a chemical plant explosion on November 13. About 100 tons of benzene, a carcinogenic chemical, spilled into the river. Building of the dam will start on the Fuyuan waterway, which joins Heilong and Wusuli rivers, to block the flow of the polluted water, said sources at the provincial water resources department.
On Tuesday, the Ministry of Water Resources sent an expert panel to Jiamusi to study the possibility of building the dam. According to the initial investigation, there are two factors in favour of the project.
“The water at the Fuyuan waterway is 0.91 metre at its deepest and 0.3-0.4 metre deep on average. In addition, the current velocity of water there is almost zero,” said an expert. In a related development, the State Council on Tuesday set up a high-level team to probe the cause of the chemical plant blast which led to the pollution and vowed to mete out severe punishment to those responsible.
Li Yizhong, minister of the State Administration of Work Safety, was appointed the head of the investigation team. The team has three groups, responsible for technical, administrative and overall matters. The Supreme People’s Procuratorate has also sent a representative. The same day the special team was formed, Wang Wei, vice-mayor of Jilin city, who was in charge of work safety and environment protection, was found dead at home. Wang, who took part in the rescue work after the blast, insisted to journalists then that there would be no pollution.
The exact reason for his death and whether it was related to the pollution case is unknown. The Jilin Provincial Public Security Bureau is probing the case and local officials refused to comment. The slick disrupted the lives of millions of residents living in the cities downstream of Songhua River. It forced Harbin, capital of Heilongjiang Province, and a city of 3.8 million people, to cut tap-water supply for four days from November 23 to 27.
At 2 pm yesterday, the front of the contaminated water arrived at Aoqi Town, 30 kilometres away from urban Jiamusi. Zhu Guanyao, deputy director of the State Environment Protection Administration (SEPA), yesterday asked governments at all levels along the Songhua River to strengthen monitoring. Meanwhile, in Harbin, experts said they would closely study future impact on drinking water safety, irrigation, fisheries and livestock breeding when the ice melts.

(The Daily Mail-China Daily news exchange item)

China to limit water pollution to Russia
From Our Correspondent

BEIJING—Chinese President Hu Jintao said Thursday that China will spare no effort to minimize the water-borne pollution damage to Russia, which was caused by the toxic spill in the Songhua River.
Hu told visiting Russian First Deputy Prime Minister Dmitri Medvedev that China will deal with the issue seriously with an attitude of “being highly responsible to the two countries and the two peoples”.
“We will take all necessary and effective measures and do our utmost to minimize the pollution and reduce the damage to the Russian side,” Hu said, adding that China is also ready to improve communication and consultation with Russia, provide assistance and enhance cooperation. “I believe relevant problems will be properly solved with our joint efforts and close cooperation,” Hu said.
The pollution spill in northeastern China’s Songhua River was caused by an explosion at a Chinese petrochemical plant early Nov.
Medvedev told Hu that the Songhua River pollution is a common challenge to both China and Russia, and the two countries should improve cooperation to overcome difficulties and conquer the disaster.
Before meeting with Hu, Medvedev, also president of the organizing committee of the Russia Year in China, had held talks with Chinese State Councilors Tang Jiaxuan and Chen Zhili. The two sides agreed to hold large-scale cultural activities within the coming two years, a move to strengthen bilateral strategic partnership.
The Russia Year in China scheduled for 2006 and the China Year in Russia for 2007 were in a joint statement during Russian President Vladimir Putin’s visit to China last year.
The two goodwill programs cover a wide spectrum of areas including culture, education, economy, political systems and traditional customs of the two countries.
Hu said he hoped the organizing committees of the two countries and relevant departments would improve coordination to ensure the cultural programs full success.
The Chinese president also hailed China-Russia relations, saying that China is ready to further pragmatic cooperation with Russia and try to score new progress in cooperation on economy, trade, energy, science and technology.
Hu also expressed his hope that the two countries would upgrade their strategic cooperative partnership to a new level through closer cooperation in regional and international affairs and jointly safeguard world and regional peace, stability and development.
In response, Medvedev said Russia-China relations are currently at a high level with vibrant cooperation in economy, trade and cultural areas and the two also share many consensus on key international issues.
He said he believed that the Cultural Year programs to be held in the next two years would be successful.

Early warning system for MNCs demanded
Foreign firms’ monopolies irks Chinese market

BEIJING—China should introduce an early warning-system to prevent multinational companies (MNCs) from cornering the Chinese market, a cabinet think-tank has suggested. Xie Fuzhan, vice-president of the State Council Development Research Centre urged the government to take action as foreign investors have intensified expansion in some industrial sectors and obtained sizeable shares of certain large projects.
“These are new trends in foreign investment, and they deserve close attention,” Xie warned. “But it doesn’t conflict with our lasting strategy that emphasizes partnerships with MNCs which are willing to transfer core technologies and management experience”.
Facing the new investment trend, Xie suggested that China should establish standards and a system to watch the behaviour of overseas investors to prevent monopoly risks in the Chinese market. The system and standards are expected to be line with the Anti-Monopoly Law, which is going to be delivered to the National People’s Congress for voting soon.
Xie voiced his concerns at yesterday’s forum on China’s Investment Opportunity and Overseas Chinese Entrepreneurs, which was organized by China News Agency. In addition to preventing foreign investors from implementing monopolistic practices, China is establishing an anti-monopoly law to create equal market access for all investors, said Lin Yueqin, researcher with Chinese Academy of Social Sciences.
“The upcoming law will stipulate very clearly that a dominant market position should not be allowed to be abused by any market players, either from home or abroad,” said Lin. Lin said China will limit mergers and acquisitions and create a report system in which any mergers or acquisitions that meet certain criteria will require approval.
The criteria will be transparent, meaning enterprises will be held fully responsible for their business activities, said Lin.
Instead of forging partnerships with local companies, foreign enterprises have accelerated their efforts to become single investors in China, Xie said.
In addition, their presence in the electronics, auto and chemical industries, as well as some large projects, has increased considerably this year, according to Xie.
In terms of foreign direct investment (FDI), China ranks second after the United States, which received US$96 billion in FDI in 2004, according to a United Nations report. During January-October period, FDI in China reached US$48.4 billion.

(The Daily Mail-China Daily new exchange item)

More US students flocking to China
From Our Correspondent

BEIJING—China’s rise as an economic powerhouse is resulting in a rapid expansion of its system of higher education, making it the fastest-growing destination for American foreign exchange students, China Daily reported. The number of American students seeking higher education in China has never been greater, increasing by 90 percent from 2002 to 2004, according to the study by the Institute of International Education, a New York-based research organization.
At the same time, increasing numbers of Chinese students are attracted by university training in the United States, solidifying America’s position as the top destination for Chinese students abroad, according to the study, which was financed by the US State Department. The building spree in China is helping fuel student visits by Americans and other foreigners, drawn by the better facilities now available and by the prospect of gaining expertise in the world’s most populous country.
A total of 4,737 American students enrolled in Chinese universities in the 2003-2004 academic year, the institute’s study found, up from 2,493 students the previous year. The jump in enrollment stems in part from a rebound in study in East Asia following the SARS epidemic, which closed down several programs in spring and summer 2003. Just before that severe acute respiratory syndrome outbreak, however, the number of American students studying in China increased at a faster rate than any of the other top 15 destination countries, rising 33 percent from 2000 to 2001. This year’s unprecedented enrollment figures are 21 percent higher than the pre-SARS mark.
China now ranks ninth as a host destination for American students, advancing from the No. 12 spot a year earlier. Britain continues to be the leading destination, attracting 16.8 percent of all American students who study abroad, the study found. Jobs are an important consideration for American students heading to China, according to Chih-Ping Chou, professor of East Asian Studies at Princeton University.
“China is a job market,” Chou said. “Twenty years ago only those interested in Chinese literature would study Chinese language. Now all professions have opened up”. For Chinese students in America, training in the United States has benefits beyond exposure to a new culture.
“Chinese students are more competitive if they’ve studied in the US,” Denise Chu, overseas program manager for the Center of East Asian Studies at Stanford University, said by telephone. “The Chinese government has a lot of incentive programs to recruit Chinese students once they’ve studied in the US,” he said. “They can get a higher salary and a better future”.
In the 2004-2005 academic year, China sent more than 62,000 students to the United States, nearly 60 percent more than a decade earlier, the study showed. The Chinese now represent 11 percent of foreign students in the United States, the second-largest group behind students from India, according to the study.