Sino-US ties impacts China's future

Beijing (China)—Sino-US relations, a top priority of China's foreign policy for a long period of time, are the most vital bilateral ties in the country's foreign policy and have a crucial bearing on the overall situation with the Chinese foreign policy, which produces a significant influence on the world, as people often think of it this way.
The importance of Sino-US bilateral ties far exceeds this scope. It can be said that the situation with the bilateral relations can seriously affect the ways and degrees with how China's strategic goals are materialized. The country's development strategy, national reunification, and cultural progress and rehabilitation, are all subjected to the influence of existing Sino-US relations.
The 16th National Congress of the Communist Party of China (CPC) held in 2002 mapped out a blueprint for China's strategic development, to build a relatively better off society in an all round day in the first 20 years of the 21st century. With China's rapid growth and apparent increasing impact on the world affairs, the international community has also obviously raised doubts on the country, since it cannot determine what foreign policy of such a non-Western nation like China would follow in years ahead and what impact it would bring to the politics, economics and the basic setup of the world. So the "China threat theory" has a market precisely due to the prevalence of such doubts, and there are indeed some political forces in the world which are maliciously spreading up the theory,
The course of history has decided that China has to underscore "peace" particularly in its development strategy, and this is a major reason for discussion of "peaceful rise" over the past two years, and also the fundamental reason for Chinese leaders to repeatedly explain and promise the country's adherence to "peaceful development".
The United States exerts its maximum pressure upon China, as people will query whether all issues in Sino-US relations, including the Taiwan question, can be resolved. A kind of interdependent, constantly-rising relations of competitions has been forged between China and the United States after more than three decades of contacts. Only by getting to know the existence and characteristics of this "competition", can people understand why the United States still keep up its plan for military deployment in East Asia on a large scale and in a sustained way, in a bid to slow down the modernization pace of China's national defense. East Asia is, after all, China's leading arena of activities. With its undoubtful, growing impact in the region, China will possibly inflict, to some degree, a force of impact upon the position of the U.S. Therefore, it can hardly avoid readjusting their respective position in the East Asia.
The external hurdle to China's national reunification comes mainly from the United States. The issue of national unity has always been a "core issue" and "core value" of political administration in the long-standing history of the Chinese nation. In history, China became powerful only when it put an end to the state of chaotic divisions and accomplished its national unity.
As known to all, the U.S. involvement constitutes a main obstacle to the settlement of the Taiwan issue and the accomplishment of ensuing national unity. Without an involvement of the United States, there would be no Taiwan issue today, a remark people in China has said or heard most often. As along as the United States does not cease its involvement in Taiwan issue, there is a risk for a possible major clash between China and the U.S.
Another grave issue China facing at present in its maintenance of its national unity has something to do with some people's ambiguous understanding of the relevant issues, as the United States' concept of value concept and political mode are spreading rapidly around the world, and some political forces in the U.S. often instigate and support these people in an open or covert way. Apparently, there is a great complex, long-term historical background for differences between China and the United States in the political and ideological sphere.
In the field of cultural development, the situation China has been facing since the beginning of the modern times is far more complicated than in any previous period in history. After the Opium War of 1840-1942, the Chinese nation was plunged into the abyss of sufferings and had fostered a strong sense of frustration. In the course of being thrown into a colonial and semi-colonial society, the Chinese people gradually came to realize that they were confronted with "an unexpected great change in thousands of years." Till today, they find themselves difficult to cope with the intrusion and influence of the culture from the Europe and the United States. The people in China are still thinking of exploring what kind of culture and civilization they would develop, though they were fully capable to defend their land with their flesh and blood in history.
It is an arduous, prolonged course for China to go in for the development of a modern culture. It still has not yet made a fundamental change and the country has difficulties in some aspects with politics of the contemporary world despite its substantial economic strength.
The tremendous force of impact of the American culture poses a big challenge and pressure for the growth of the Chinese culture today, whose rehabilitation can succeed only when it observes and merges with the world culture.
The period of reform and opening up represents a unique period in the development of the Chinese culture, which is somewhat related to the formation of the core value of the Chinese nation, the enhancement of the sense of national identity and the capability of scaling the world's advanced level in the field of cultural progress. From this sense, the in-depth significance contained in Sino-US relations will have a great impact on China's future.

—People’s Daily, Daily Mail news exchange item

Wen on govt reform

Beijing (China)—Premier Wen Jiabao has highlighted the importance and urgency of government reform calling for hard efforts to build a government that is ruled by law, focused on service and bound by duty and efficiency.
The premier, who is also member of the Standing Committee of the Communist Party of China (CPC) Central Committee, made the remarks during a key-note speech at Monday's national teleconference on accelerating government reform.
Government officials at all levels, leading officials in particular, should seriously study the newly-published Selected Works of Jiang Zemin, implement the important thought of "Three Represents" on the advanced nature of the Party, and recognize the importance and urgency of the government's own reform.
He also called for speeding up the government's innovation in management in order to better implement a scientific concept of development.
The government should further regularize government powers, deepen the campaign against corruption and build a clean government which will prevent the misuse power and increase the credibility of the government.
"Our powers are given by the people and we must serve the people heart and soul," he stressed.
Senior officials present at the meeting were Huang Ju, Wu Yi, Zeng Peiyan, Hui Liangyu, Zhou Yongkang, Tang Jiaxuan, Chen Zhili, and Hua Jianmin.

—The Daily Mail-China Daily news exchange item

Chinese FM denies Kim's visit

Beijing (China)—No arrangements have been made for a China visit by North Korean leader Kim Jong Il, a Chinese Foreign Ministry spokesman said in Beijing Tuesday, September 5.
Foreign media reports said Kim's special train had arrived in a town bordering China and Kim would make a visit soon.
"As far as I know, there is no such arrangement now," said FM spokesman Qin Gang. He did not give any more details.
Qin made the remarks at a regular press conference in response to a question about whether Kim was in China or will visit China.
The South Korean newspaper JoongAng Ilbo said Tuesday that Kim was likely to begin his visit to China within the next few days.
Speculation of a possible trip by the leader has been rife since South Korea's main spy agency warned last week that Pyongyang could test a nuclear device at any time, following reports of suspicious activity at a suspected North Korean underground nuclear testing site.

—The Daily Mail-China Daily news exchange item

China's overseas investment in 2005 hits new high

BEIJING—China's direct investment overseas hit a new high of 12.26 billion U.S. dollars in 2005, exceeding 10 billion dollars for the first time, the Ministry of Commerce said Monday.
The figure, which excludes investment in the financial sector, rose 123 percent over that of 2004, the ministry said in a statistical bulletin on China's overseas investment in 2005.
Out of the number, 3.8 billion dollars came from capital stocks, 3.2 billion from reinvested profits and the remaining 5.26 billion dollars were invested through other forms.
By the end of 2005, China's aggregated direct overseas investment reached 57.2 billion U.S. dollars, representing 0.59 percent of the world's total overseas investment.
Mergers and acquisitions accounted for half of China's overseas direct investment in 2005. Forty-three percent of the investment were in the form of lending to overseas businesses. Eighty-one percent of the investment in 2005 went to Cayman Island, Hong Kong and other tax havens. Latin America overtook Asia as the No. 1 destination for Chinese investment in 2005.
Asia and Latin America together account for 90 percent of China's aggregated overseas investment.
The bulletin said that limited-liability companies have overtaken state-owned enterprises to become China's largest investor in overseas market with their aggregated investment representing 32 percent, up four percentage points from 2004. The investment by state-owned enterprises accounted for 29 percent, down six percentage points from a year ago.
About seven percent of the companies investing abroad are large state-owned companies directly under the administration of Central Government and their subsidiaries.
East China's Zhejiang Province finds 949 local companies having invested abroad, representing 23.6 percent of the total, the highest among all Chinese provinces and municipalities. In addition, nearly 70 percent of privately-owned companies were situated in Zhejiang and Fujian.
The Ministry cited a survey by the National Statistics Bureau of 6,426 mainland companies investing abroad, saying that Chinese companies have expanded their presence to 163 countries and regions.
With nearly 16.5 percent of the companies polled investing in Hong Kong, the special administrative region of China is viewed as the most popular investment destination. The United States and Russia follow with 10.3 percent and 5.8 percent.
The report also revealed that 34.7 percent of companies investing abroad are engaged in manufacturing. Wholesale and retailing companies took up 17.5 percent with those specialized in lease and commercial services accounting for 17.5 percent. Companies active in the construction industry represented 7.6 percent.

—People’s Daily, Daily Mail news exchange item

Property policy to deter overseas speculators

Beijing—The Chinese government continues to rein in overseas speculators in the country's property market, as it is now requiring foreigners to get approval before they send funds out of the country that were earned from selling houses.
According to a circular on management over foreign investment in China's housing sector, which was jointly released by the State Administration of Foreign Exchange (SAFE) and the Ministry of Construction, overseas investors who want to take over or acquire stakes in Chinese property companies will come up with the full purchase price.
If they want to qualify for loans from Chinese or foreign banks, overseas-financed property companies will have to provide 35 percent of the funds needed for a project from their own resources, the circular said.
The circular also asked relevant departments to enhance supervision over property deals using foreign currency, requiring banks and local foreign exchange administrations to report property purchases made with foreign currency.
The Chinese government is also asking overseas institutions to provide documentation of their presence in China when buying property for their own use. These documents will be obligatory when they bring in foreign currency or register their properties.
According to the circular, funds from foreign property investors should flow directly to the Renminbi accounts of property developers.
China's new policies on overseas investment in the property sector aims at shutting the gate on speculators from overseas, sources with the Ministry of Construction said.
A recent regulation allows overseas residents who have worked or studied in China for more than a year to buy one housing unit for their own use.
China's land resources are scarce and its population huge, so the government must take a long-term view and step up supervision of property investment by overseas institutions and individuals, said the ministry in a press release.
Overseas funds have swarmed into China's housing industry, as investors make a double bet. They're hoping the RMB will continue to appreciate and they're expecting estate prices to continue to soar.
Housing prices in some Chinese cities have doubled in recent years, putting home ownership further out of the reach of many local citizens.
Overseas institutions and individuals are highly active in the market, but there are no clear rules and standards regulating their presence, the Ministry of Construction said.
The new policies are aimed at improving the quality of market information available to real estate regulators. Officials currently only have a partial picture of the type and volume of transactions that are being carried out.
Figures from the IMF (International Monetary Fund) show that of its 187 members, 137 control the overseas investment in their domestic property market, indicating that China's new action is internationally accepted common practice, the ministry said.

—The Daily Mail-China Daily news exchange item