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C HINA I NSIGHT Fostering U.S.-China Cultural and Business Harmony NOVEMBER 2003 www.chinainsight.info FREE VOL.2 NO.10 Copyright © 2003 China Insight, Inc. All Rights Reserved C HINA S ENDS MAN INTO S PACE: ONLY THIRD NATION TO DO SO China News Cement Industry in China China Builds the Largest Power Grid in the World PAGE 3 Community CHINA BUSINESS COLLOQUIUM Asian Media Access Presents Cinema With Passion Fulltime Killer PAGE 7 People Madame Chiang Kai-shek PAGE 10 Business United Airlines and Air China Agree on Marketing Alliance Relationship to Provide Unrivaled Access Between United States and China PAGE 11 Education Historic Class to Receive China Executive MBA PAGE 12 The Minnesota China Teacher Exchange: How to Experience A Positive Force for Change PAGE 14 Government China’s Central People’s Government: The State Council PAGE 15 STORY on pages 9 & 10 STORY on page 7 CLOUD GATE DANCE THEATRE OF TAIWAN STAGES “CURSIVE” AT NORTHROP AUDITORIUM

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Page 1: CHINAINSIGHT · PDF file763-540-8290 Hopkins Hopkins Library, 22 11th Ave. N. 952-930-2740 Maple Grove ... Zhongxing Telecom Equipment and Huawei Technologies, with a report submitted

CHINAINSIGHTFostering U.S.-China Cultural and Business Harmony

NOVEMBER 2003www.chinainsight.infoFREEVOL.2 NO.10Copyright © 2003 China Insight, Inc. All Rights Reserved

CHINA SENDS MAN

INTO SPACE:

ONLY THIRD

NATION TO DO SO

China NewsCement Industry in

China

China Builds the LargestPower Grid in the World

PAGE 3

CommunityCHINA BUSINESS

COLLOQUIUM

Asian Media Access

PresentsCinema With Passion

Fulltime Killer

PAGE 7

PeopleMadame Chiang Kai-shek

PAGE 10

BusinessUnited Airlines and Air ChinaAgree on Marketing Alliance

Relationship to Provide

Unrivaled Access Between

United States and ChinaPAGE 11

EducationHistoric Class to Receive

China Executive MBAPAGE 12

The Minnesota China

Teacher Exchange:How to Experience A

Positive Force for Change

PAGE 14

GovernmentChina’s Central People’s

Government:The State Council

PAGE 15

STORY on pages 9 & 10

STORY on page 7

CLOUD GATE DANCE THEATRE OFTAIWAN STAGES “CURSIVE” AT

NORTHROP AUDITORIUM

Page 2: CHINAINSIGHT · PDF file763-540-8290 Hopkins Hopkins Library, 22 11th Ave. N. 952-930-2740 Maple Grove ... Zhongxing Telecom Equipment and Huawei Technologies, with a report submitted

AnnouncementsCHINAINSIGHT > PAGE 2 NOVEMBER 2003

CHINAINSIGHTSubscription Order Form

12 issues - $18.00 for a domestic subscription and $36 for International.

Please make check payable to China Insight, P.O. Box 1075, Minnetonka,MN 55345

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Address: ________________________________________________

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YES, you could run to the store and pick up a copy. But did you knowyou can have China Insight delivered directly to your mailbox?

A subscription costs a mere $18 and brings a full year (12 issues) ofnew understanding about today's China, from language to businessopportunities.

Publisher:Gregory [email protected]

Editor:Daniel [email protected]

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Copy Editor:Jennifer [email protected]

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Staff Writers:Greg [email protected] [email protected] [email protected] [email protected]

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About China Insight

China Insight is a monthlyEnglish language newspaperfostering U.S.-China cultural andbusiness harmony.

Submissions &Correspondence

China Insight welcomes guestarticles and mail for the Lettersto the Editor column.Correspondence should beaddressed to:

Editor, China InsightP.O. Box 1075

Minnetonka, MN 55345Fax: (651) 493-1479

[email protected]

Letters to the Editor becomethe property of China Insight andmay be edited for length andpublished. Articles will not bepublished without the expressconsent of the author.

Where

to pick up

BloomingtonNew Century Buffet, 7827 Portland Ave S.

952-888-3177Mandarin Kitchen, 8766 Lyndale Ave S.

952-884-5356Brooklyn Center

New King Buffet, 5927 John Martin Dr.763-566-8300

Brooklyn ParkPanda Garden Buffet, 8089 Brooklyn Blvd

763-391-8061Coon Rapids

New China Buffet, 105 85th Ave NW763-780-2636

ChanhassenHappy Garden, 2443 Highway 7 West

952-474-1990Crystal/New Hope

Hong Kong Buffet, 4211 Winnetka Ave N,New Hope. 763-531-9489

Eden PrairieEden Prairie Library, 479 Prairie Center Dr.

952-829-5460Edina

Southdale Library, 7001 York Ave. S.952-847-5900

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763-540-8290Hopkins

Hopkins Library, 22 11th Ave. N.952-930-2740

Maple GroveMaple Grove Library, 8351 Elm Creek Blvd.

763-420-8377Chin Yung Chinese Restaurant, 13704 83rd Way N.,

763-420-8940Minneapolis

China Center, 290 Humphrey Center, 301 19th Ave.S., 612-624-1002

Carlson School of Management BuildingHumphrey Center Building

Hong Kong Noodles Restaurant, 901 WashingtonAve. SE., 612-379-9472

Lucky Dragon, 1827 Riverside Ave.612-375-1690

My Chinese Kitchen, 304 Oak Street SE.612-331-4061

Seafood Palace, 2523 Nicollet Ave.612-874-7721

TCM Health Center Clinic, 6550 York Ave S, #417.,952-926-4011

TCM Health Center Clinic, 1403 W. Lake St.612-823-6650

TCM Health Center Clinic, 1313 5th Street SE #212.,612-379-3583

U Garden Chinese Restaurant, 2725 University Ave.SE., 612-378-1255

United Noodles Oriental Grocery, 2015 E. 24th

Street., 612-721-6677Minnetonka

Ridgedale Library, 12601 Ridgedale Dr.952-847-8800

Dragon Jade Restaurant, 14432 Excelsior Blvd.,952-933-1129

Mounds ViewRamsey County Library Mounds View Branch,

2576 County Rd. 10, 763-717-3272Oakdale

Jade88 Chinese Restaurant, 1811 Geneva Ave. N.,651-7300802Plymouth

Plymouth Library, 15700 36th Ave. N.763-847-5825

Teahouse Restaurant, 88 Nathan Lane N.763-544-3422

Grand Buffet, 16605 County Road 24 (24 & 55).,763-383-0049

St. Louis ParkChina Jade Restaurant, 5009 B Excelsior Blvd.

952-920-1171St. Louis Park Library, 3240 Library Lane.

952-929-8108Yangtze Restaurant, 5625 Wayzata Blvd.

952-541-9469St. Paul

Children’s Home Society, 1605 Eustis St.651-646-6393

Hayden Heights Branch Library, 1456 White BearAve., 651-793-3934

International Student Center, St Paul Campus,Multicultural Student Services, 2115 Summit Ave,

106 Murray-Herrick Campus CenterUniversity of St. Thomas, 651-962-6460

Minnesota Trade Office, 1000 Minnesota WorldTrade Center, 30 East 7th St. 651-297-4222

Minnesota State Office Building, 100 ConstitutionAve.

Peking Restaurant, 475 Etna Street #5.651-771-7000

Ruminator Books, 1648 Grand Avenue651-699-0587

Sun Ray Branch Library, 2105 Wilson Ave.651-735-1050

TCM Health Center Clinic, 613 Grand Ave.651-726-2459Wayzata

Jade Fountain, 838 Lake St E (Wayzata Bay

Shopping Ctr), 952-473-4646

CHINA

INS

IGH

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* If you want to be included as adistribution location, contact China

Insight at [email protected]

CHINAINSIGHT

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China NewsCHINAINSIGHT > PAGE 3www.chinainsight.info

Guizhou Zeroes in OnHigh-Tech Industry

Guizhou province has an ambitious

plan to become one of the most importantresearch and production bases for China’shigh-tech industry. Senior provincialofficials said recently that the province, insouthwest China, is attracting overseastalent and investors to establish threeresearch and development (R&D) centersfor hard disc drives (HDD), opticalelectronic (OE) chips and digital video andcommunications.

Six industrial bases will be establishedfor HDD, optical electronics, digital videoand communications, electronicscomponents, biological engineering andnew materials. Guizhou’s provincialgovernment is extending preferentialpolicies for land use, electricity prices, taxcollection and introduction of talent.

Guizhou is a poor inland province. Itsgross domestic product (GDP) in 2002 wasUSD 14.2 billion, about one-tenth of EastChina’s Jiangsu Province’s GDP of USD128.1 billion.

In early 2002, Guizhou choose a 1-inchsmall form-factor HDD as a pilot project forthe innovative knowledge-based economydevelopment plan. GS Magicstor, Inc.opened a HDD factory in Guiyang in August2002, and unveiled its 4.8-GB, 1-inch HDDand 40-GB, 1.8-inch HDD.

Moutai Distillery Group Co. hasinvested USD 21.7 million and Yan KuangGuizhou Energy Chemical Co., Ltd. pumpedUSD14.5 million into the R&D of the HDDs.

Zhang Qunshan, Director of Guizhou’sEconomy and Trade Commission Stressedthe importance of “treating special mattersin special ways,” and said “Guizhou hasbeen known for its poor investmentenvironment, due to its geographicallocation and weak industrial and businessheritage. It is hard to change this situationovernight, so we have to concentrate ourefforts on key projects that are pivotal tothe economic growth of the province.”

Sources: China Business Weekly, 10/06/2003 -Translated by Sunny Cui

Cement Industry inChina

Since 1985, China has been the largest

producer and consumer of cement in theworld. The output in 2002 reached 725 milliontons. China cement industry is facing atough task of structural adjustment. Up to2002, the production capacity of all NewSuspension Preheater (NSP) productionlines only accounted for 17% of the totalproduction, replacing outdated capacitywith advanced NSP will be a major task ofthe industry in the next ten to fifteen years.

Portland Cements (also known assilicate cements in China) are the majorcement products in China, occupying 97%of the total. There are 101 cement standardsin China, including 13 compulsory nationalstandards, 27 recommended nationalstandards, 7 compulsory industrialstandards and 54 recommended industrial

standards. The standards of Portlandcements are compulsory national standards.

Shaft kiln production, small productionscale, outdated equipment andenvironmental pollution are seriousproblems that need to be solved andimproved. NSP plants of Jidong, Zhujiang,etc. imported all of their productionequipment from overseas.

Source: China Building MaterialsIndustries 2003 -Translated by PingpingXie.

China Builds the LargestPower Grid in the World

China has set up the largest power grid

in the world with a combined installed powercapacity of 140 million kW, and a span of4,600 km across 14 provinces andmunicipalities.

China’s two important power grids, theNorth China Power Grid and Central ChinaPower Grid, were successfully connectedfor the first time on September 20 and theinterconnected grid operated smoothly. Theconnection was made possible by a 210 km,500 kW transmission line, which links theXin’an Transformer Substation of the NorthChina Grid in Handan City, Hebei Provincein northern China, with the HuojiaTransformer Substation of the Central ChinaPower Grid in Xinxiang City of HenanProvince, central China.

The connection of the two grids willhelp the power sector to optimize its electricalpower resources, enable the two grids tosupport each other in distribution ofelectricity and improve operation safety ofthe power grids.

Source: China Electric Power News, 09/23/2003 -Translated by Michael Mei

China Industrial ProductionKeeps Growing in

September

China reported an industrial added

value of USD 44.7 billion in September, 16.3%higher than the same period last year,according to the National Bureau ofStatistics (NBS).

China’s industrial added value for thenine months to September rose 16.5% onan annual basis to nearly USD 350.7 billion,the NBS monthly report showed.

Communication equipment, computerand other electronic device production,transport production, metallurgy, electricalmachine production, and the chemicalindustry all had growth rates above 20% inSeptember and continued as the country’smajor driving forces in industrialproduction.

Source: China Machinery and ElectronicNews, 10/9/2003- Translated by PeiningZhao

China’s Curtain is Risingfor New 3G Licenses

China has taken a series of steps to

push the development of 3G communicationover the past few months. 3G refers to thethird-generation mobile communicationtechnology following the first generationof analog communication technology (1G)and second generation of mobilecommunication technology (2G).

Lou Qinjin, vice minister of InformationIndustry (MII) inspected 3G technologyexperiments in July and laid down detailedrequirements and guidelines for thedevelopment of 3G. A seminar was held inShenzhen on August 23 to discuss “strategyfor the development of 3G communicationssystem” under the chairmanship of LiMofang, a member of the State InformationDrive Panel and the sponsorship ofZhongxing Telecom Equipment and HuaweiTechnologies, with a report submitted tothe government as a reference for makingpolicy decisions in the future. It is alsoreported that a “Global Summit- 3G in China”which represents the barometer of 3Gprogress in China, is scheduled for the endof October in Beijing.

Technically, MII has carried out two-year long Mtnet3G experiments with theparticipation of dozens of well-knowndomestic and overseas mobilecommunication system and terminalmanufacturers and instrument companies.The experiments, claimed to be the world’slargest ever in terms of scale, participantsand technologies, cover three international3G standards of W-CDMA, CDMA2000 andTD-SCDMA. The experiments will befinished some time at the end of the year orin early 2004, according to the Wall StreetJournal.

The project will raise the curtain for thegovernment to issue 3G licenses to telecomoperators.

To date, the 3G technologiesacknowledged the world over includeEurope’s W-CDMA mode basing on GSMbackbone network, U.S. Qualcomm’sCDMA2000 mode basing on CDMAbackbone network and China DatangTelecom’s TD-SCDMA mode.

The most prominent feature of a 3Gphones, said experts, is that it provides notonly a “communication tool” but alsomultimedia services in voice, data and videoand wireless Internet access, with atransmission rate 40 times that of traditionalmobile phones. But 3G services in the worldare flat. 3G still has some technical flawsand the technical equipment is still in theexperimental stage, far from mature.

3G users of Hutchison, Europe oftencomplain about network instability, blurredimage and poor voice quality. 3G terminalproblems remain unsettled. Mobile phonessupporting 3G technology are few and farbetween. No country can afford to turn ablind eye to 3G, a leader of future mobilecommunication technology despite itscurrent flaws. China Mobile, which missedthe development opportunities of 1G and2G, will not let 3G development opportunityslip by. The 3G market in China is no lessthan USD 120 billion, according to the mostconservative estimate and the industriesassociated with telecom industry are likely

to top USD 1,207 billion. The 3G value chainalso extends to cover content providers,value-added integrators and serviceproviders.

Foreign companies have stepped uptheir 3G investment in China since thebeginning of June this year. US Qualcommannounced a USD 100 million investment inChinese companies that are engaged inCDMA technology development; LucentTechnologies also revealed that thecompany would add another USD 50 millionto reinforce its 3G R&D in China. Heads ofsuch multinational telecom giants asEricsson and Siemens visited China oneafter another. Cornwell, CEO of Global GSMAssociation came to Beijing, trying to makeWCDMA standards the best choice for thegovernment to issue 3G licenses. HewlettPackard, however, joined hands withUTStarcom to work on future-based 3Gsolutions.

Signs show that China is pushing its 3Gprogress in sure and steady strides.Overseas observers found that thegovernment started to support the effortsto work out China’s own 3G standards along time ago. China unveiled the allocationof 3G mobile phone frequencies last October,and people realized in amazement thatDatang Telecom’s TD-SCDMA standardsreceived more preferential arrangementsthan Europe’s W-CDMA standards.Insiders believe that China will probably bethe first country to adopt three 3Gstandards, namely W-CDMA, CDMA2000and TD-SCDMA. The market has beenmature for adopting the W-CDMAstandards, but the market for adopting TD-SCDMA is yet to be improved. But it is anagging problem for the policy decisionmakers whether to issue licenses separatelyor in a bundle and how to prevent TD-SCDMA standards from falling behind otherstandards.

Tianyang Technology CEO Zuo Hanbotold the TD-SCDMA International Summiton September 1 that the high-tech firmaffiliated with Datang Telecom plans torelease TD-SCDMA chips for mobilephones in April next year and producesample phones in June.

Source: China Economic InformationService (CEIS) 10/16/2003

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and commercial properties

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CHINAINSIGHT > PAGE 4 NOVEMBER 2003

CREDIT - YOUR MOST

IMPORTANT ASSETBy Gigi Yau, Mortgage Consultant

Many immigrants from Asiaor even Europe tend tounderestimate theimportance of obtaining,

increasing and preserving good credit.Many hardworking and accomplishedpeople I come across tell me that they havegood spending habits – in cash – and tendto spend within their means. I agree withspending within one’s means, but I wish Icould have met them before they apply fora mortgage. Some people considerthemselves trustworthy by avoiding beingin debt; while creditors look at one’s debtpayment history to determine their creditworthiness in the considerations of theirapproval of the borrower’s next loan.Practically, building a good credit history isworthwhile for people who choose to liveand stay in this country. For marriedcouples, be sure that each of the personsobtains credit. In other words, be sure thewoman has her own accounts and credithistory.

Credit is used heavily in the U.S., HongKong and many countries. In some Asianand European countries, obtaining credit isstill inconvenient and only applicable forlarger purchase. However, in the U.S., youwould find it practical and convenient touse credit. In the U.S., there are manymortgage programs with zero downpayments, or 3%, or 5% down paymentprograms; while in Hong Kong, 30% downpayment has been the norm or even theminimum in acquiring a property. Since theinitial investment in a home purchase couldbe small, the credit of the borrower, i.e. thelikelihood of the lender getting theirinvestment (i.e. the loan amount plusinterest) back – carries a more critical factorin the underwriting decision.

Credit is the measure of one’s ability topay their obligations. Lenders want to seestability – both on the job and homeaddress; and prompt payments of past debtand a low debt compared to one’s income.

Many lenders use what are commonlyreferred to as the six “C’s” of credit.

1) Character – Does this person appearto be trustworthy? This is a summaryof what was thought about you as aperson.2) Capacity – The ability to pay off thedebt, based upon earnings andoutstanding debt.3) Collateral – Is security required forthe loan? Is the security desirable tothe lender? Is the security adequate forthis loan size?4) Conditions – Are there economic orregulatory influences that would comeinto play?5) Credit – Your credit history.6) Capital – Your net-worth determinedby a financial statement.The credit represented by a three digit

score, ranging from 300 to 900, is calculated

through data including your paymentpromptness, credit limit, credit usage, andmajor derogatory events such asbankruptcy, foreclosure, collections, charge-offs etc. About 20% of consumers scorebelow 620; 20% score 620-690; 20% 690-745;20% 745-780 and the top 20% over 780. Onthe other statistics, 11% of consumers scoreover 800; 29% score 750-799; 20% score 700-749; 16% 650-699; 11% 600-649; 7% 550-599;5% 500-549; and the last 1% score below500. The significance in getting a goodcredit is that it affects your ability to obtaina loan, as well as whether you get a favorableinterest rate.

Your credit scores are calculated basedon the following types of information:

35% - Payment history30% - Amounts owed15% - Length of credit history10% - New credit10% - Types of credit in use

1) Payment history: Prompt paymentsconvince lenders that the borrower willlikely repay the loan. Over 30 days late isconsidered derogatory. Nowadays,consumers, on average, are paying their billson time. 85% of all consumers have neverpaid an account over 90 days past due. Lessthan 10% have ever had a loan or accountclosed by the lender due to default. A latepayment history may take up to 48 monthsto be removed. The more recent late affectsthe score more significantly.

2) Amount owed: Accounts withbalances over 30% of the limit will cause afew points deduction from the credit score.To protect your credit score, start usinganother credit card when one is close to30% of the credit limit. The typical consumerhas approved $12,190 credit limits on allcredit cards combined. About 48% of creditcard holders carry a balance of less than$1000. Except mortgages, 54% ofconsumers carry less than $5000 of debt;while nearly 30% carry more than $10,000 ofnon-mortgage debt. The amount owed aswell as the balances to limit ratio are bothfactors affecting your credit score. Forpeople who have a high balance on a studentloan, the credit score still reflects thefinancial stress.

3) Length of Credit history: A longgood history and recent good history bothhelp prove the borrower will pay back theloan. For some people who have a longhistory but have a recent lack of activitiesshould continue to use their credit cardsand pay promptly. For people who havetoo many cards and who want to close downa few accounts should consider closingdown newer cards, especially those withlower credit limits, so that their long historycards are still counted towards their creditscores. When you want to close down

credit cards, consider spreading out the timeto close a few accounts down and be sureto leave at least four accounts open.

4) New Credit: For some inquiries, suchas car loan, and mortgages, a few pointswould be deducted from the borrowers’credit scores. So, if you have to shop forthe best program, use a mortgage brokerwith access to a wide variety of programsfrom multiple lenders, instead of a specificfinancial institute such as the bank you havea checking account. The credit report is theone tool to help the new lender assess yourcredit worthiness even if you do not haveany business relationship with the lender.For someone who just started a new

mortgage, he/she will gain a few points inhis/her credit scores.

5) Type of credit in use: Today’sconsumer has an average of 11 creditaccounts and loans, which includerevolving accounts such as credit cards,store cards, and installment loans such asmortgage, car loans, student loans.Comparing consumer credits andmortgages, the mortgage is a more favorablecredit type because it has appreciablecollateral. If you have to choose betweenclosing consumer credit cards such as Visaand Master cards, and retail credit cards,keep the consumer cards.

Editor’s Note: This material is provided for informational purposes only andChina Insight assumes no responsibility for its accuracy and recommends consultingyour professional advisors before taking any action.

For a complimentary consultation, you may reach Gigi Yau at Dearey Mortgage at952-345-0977 or cell 612-978-0045 or [email protected]. Visitwww.deareymortgage.com.

FINANCE

Tax and Financial Serivces

Meg YoungTax Preparation

Accounting ServicesQuickBooks and Peachtree Set up

Business Consultation

Doyle & Associates

(952) 474-3567

1-800-735-0106

FAX (952) 474-65145100 Thimsen Avenue, Suite 140, Minnetonka, MN 55345

Concerned about your personal/business financial planning? Willyou be taking advantage of all of the recent tax law changes? Nowis the time to plan and organize so consult with your financial advi-sor or accountant. December 31, 2003 will be too late! We arescheduling a limited number of free consulting sessions to assistanyone that is interested in doing the proper advance planning tominimize their tax liabilities.

Page 5: CHINAINSIGHT · PDF file763-540-8290 Hopkins Hopkins Library, 22 11th Ave. N. 952-930-2740 Maple Grove ... Zhongxing Telecom Equipment and Huawei Technologies, with a report submitted

Call for ArticlesTired of misconceptions about China?

China Insight is a local newspaper fostering U.S.-China cultural and businessharmony.

We are interested in publishing articles that will engage an audience in America.Potential topics range from understanding daily life in China (or for Chinese in America)to discussion of business markets, including but not limited on:

� Local Chinese stores

� Coming Chinese movies

� Recommended books

� Recommended videos, movies

� Old Minnesota-China ties

� Recommended Chinese restaurants

� Information channels: satellite set-up, short-wave radio, Internet

� Chinese calligraphy

� Chinese painting

� Chinese musical instruments

� Historical - short articles about influential Chinese, e.g. Sun Yot-Sen

� Travelers' tales

� Chinese impressions of America

� Chinese plants, flowers

� Getting good Chinese-language software

� Cartoons

� Questions about China

� American businessmen in China

� Chinese immigrants who have succeeded in America

� Americans who are studying Chinese - why are you learning Chinese?

� Tea

THURSDAY, NOVEMBER 13

U.S. Foreign Policy Town Meeting withAmbassador Richard Boucher

Join MIC for a Town Meeting withAmbassador Richard Boucher, StateDepartment spokesman and assistantsecretary, Bureau of Public Affairs. TownMeetings are designed to increase publicunderstanding and engagement in thepolicy development process and provideopportunities to exchange views with asenior official of the Department of State.

Service to five Secretaries of State asspokesman or deputy spokesman hasprovided Ambassador Boucher withconsiderable experience and a uniquevantage point from which to speak totoday’s diplomatic challenges andopportunities.

In addition, Ambassador Boucher hasheld a variety of diplomatic posts in HongKong, Cyprus, Taiwan, China andWashington, D.C. He is a senior ForeignService Officer with the rank of CareerMinister. Ambassador Boucher studied atTufts University and at George WashingtonUniversity.

Whether your knowledge of worldaffairs is considerable or less so, weencourage you to attend this TownMeeting to hear an assessment of thechallenges the people of United States andthe world face today and beyond.

Program cosponsored by The AmericanForeign Service Association of the UpperMidwest (AFSA), and the St. Paul-Minneapolis Committee of ForeignRelations

Who: Ambassador Richard A. Boucher, StateDepartment spokesman and assistantsecretary, Bureau of Public AffairsWhen: Thursday, November 13;Registration 8:30 - 10:00 a.m.; program 10:00a.m. - noonWhere: Fitzgerald Theater, 10 E. ExchangeStreet, St. PaulCost: Free but advanced registration isrequired. NO WALK-IN REGISTRATIONSThere will be general seating, so plan toarrive early for best selection of seats.

WEDNESDAY, NOVEMBER 19

Peril on the Peninsula: The Future ofKorea

MIC invites you to join speakers fromthe Korean Economic Institute, the KoreanEmbassy and the U.S. State Department onWednesday, November 19, for a programon the state of affairs on the Korean

peninsula and the impact on U.S. andregional foreign relations. North Korea’sdire economy combined with its nuclearambitions has strained relations with theUnited States and countries neighboring theKorean peninsula. The United States,China, Russia, Japan and the two Koreasmet in Beijing in August to defuse tensionsover the North’s suspected nuclearweapons program. The meeting yielded noclear outcome but a need for continueddialog.

How has U.S. foreign policy changed inlight of these developments? How will thesituation with North Korea affect U.S.relations with longtime ally South Korea?Will combined diplomatic efforts from Chinaand Russia create new opportunities forcloser political ties with the U.S.? What kindof foreign economic aid does North Koreaseek and what is feasible under thesecircumstances? Explore the political,economic and security complexities of theseissues with our panel of expertse.

About the speakers:Don Oberdorfer, Journalist-in-

Residence at Johns Hopkins SAISPrior to his work at Johns Hopkins, Mr.

Oberdorfer was the DiplomaticCorrespondent for The Washington Post

for 17 years. His book, The Two Koreas,was a best seller and he recently completedhis new book, Senator Mansfield: TheExtraordinary Life of a Great AmericanStatesman and Diplomat. He knows theNorth-South struggle on the Koreanpeninsula intimately, has traveledextensively and writes on the Koreas, China,Japan, Russia and Western Europe.

Korean Embassy and U.S. StateDepartment: Please note that theuncertainty of this developing situationaffects the ability of the Korean Embassyand the U.S. State Department to identifywhich representatives will be available forthe presentation. Details will be announcedon the MIC website as soon as they areavailable.

This program is cosponsored by theKorean Economic Institute in Washington,D.C.What: The Future of KoreaWhen: Wednesday, November 19;registration 11:30a.m.; lunch at noon;program 12:30 - 1:30p.m.Where: Radisson Plaza Hotel, 35 South 7thStreet, downtown MinneapolisCost: MIC members and students $25; Non-members $35. Limited program only seating$10 Walk-in registrations for lunch, pleaseadd $5. Advance registration is requested

Minnesota International Center711 E River RoadMinneapolis, MN 55455Ph: 612.625.4421Fax: 612.624.1984www.micglobe.org

CHINAINSIGHT > PAGE 5www.chinainsight.infoCommunity

MINNESOTA INTERNATIONAL CENTERDedicated to inspiring our community to understand global issues and cultures in an ever changing world

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The Independent Press Association

announces the fall 2003 application cycleof the George Washington WilliamsFellowship, created to encourage journalistsof color to pursue important social issuesin the public interest. The fellowship fundsstories written by journalists of color aboutissues such as the environment, global tradepolicy, healthcare, race and education.Fellows receive access to some researchsupport, consultants, advancedprofessional training and a large network ofjournalists working in the public interestsector. In addition, program staff worksclosely with fellows to publish their storiesin major publications.

Individuals may apply for financial andinstitutional support to write a single storyor they may seek an investigative or depthreporting fellowship of between three andtwelve months to research a specific socialissue. If accepted, the George WashingtonWilliams Fellowship will pay nationalcommercial rates for individual stories or$1500 per month plus expenses for depthreporting fellowships.

Any journalist of color with at least threeyears of solid professional reporting andwriting experience may apply for thefellowship. Individuals with backgroundsin investigative or enterprise reporting arepreferred. Previous reporting or other

CHINAINSIGHT > PAGE 6 NOVEMBER 2003

Saint Paul, MN - Seven years ago the

Asian American Renaissance and Councilon Asian Pacific Minnesotan organized thefirst Asian-American festival. The conceptof the event was to celebrate and recognizethe rich, vibrant Asian & Pacific Islander(API) communities rooted in Minnesota. TheFestival was also thought to be an idealmedium for the numerous API ethnic groupsto share their tradition, culture and historywith mainstream Minnesotans

The Festival has become an annualaffair, incorporating exhibitors; food andmerchant vendors; and lively performancesand entertainment. Community interest inthe Festival has increased each year, bothin the form of sponsors and participants.However, the inconsistency of event dates,venues, and coordination has kept theFestival from growing in size and stature -and from emerging as an institutionalizedannual community event.

This past summer saw a number ofchanges to the Asian American Festival. Achange in name to the Dragon Festival wasaccompanied by a new venue -Lake Phalen- and the introduction of Dragon Boat racing.The boat races were an exciting additionand attracted coverage from local media.The new name, event site, and activities,together with the extension of festivitiesfrom one day to two, proved attractive to

TOWN HALL MEETING DISCUSSES NEXT

PHASE IN PROCESSTO RE-INVENT THE

ANNUAL ASIANAMERICAN FESTIVAL

the community. An estimated 5,000 peopleattended the weekend affair - a record forthe Festival.

Even with this year’s successful DragonFestival, the 2003 committee determined atmeetings held in July and August that theDragon Festival still needed significantstructural overhaul. Discussions in yearspast have centered on creating a sustainedentity that is community driven andorganized. In light of the current budgetcrisis facing community organizations, thequestion was raised: How can this beaccomplished?

l.The 2004 interim festival committeerevealed a preliminary plan at a recent TownHall Meeting identifying fresh and excitingways for non-profit organizations,community leaders, Asian and non-Asianbusinesses, corporations and variousinstitutions to participate. Different waysfor the festival to raise money for importantissues that affect the community will alsobe revealed.

2.The committee believes its proposedre-organization will ensure the continuedsurvival of this celebration of Asian &Pacific Islander Minnesotans, as well asrevitalize the event with an infusion of newideas, new leaders, new volunteers and newplanning committee members. For moreinformation please email Evelyn Lee [email protected].

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The Independent Press Association isa nonprofit, national magazine tradeassociation representing more than 400independent and public interestperiodicals. In addition to the G.W. WilliamsFellowship, the IPA offers a variety ofservices to its members. These include arevolving loan fund, a paper-buyingcooperative, on-line publishing advice,newsstand distribution services andpublishing conferences.

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CHINAINSIGHT > PAGE 7www.chinainsight.infoCommunity

When: November 7th, Midnight at theRiverview TheaterNovember 15th, 11a.m. at the Oak StreetCinemaHong Kong, 2001, 102 min., 35mmDirectors: Johnnie To and Wai Ka FaiCast: Andy Lau, Takashi Sorimachi, SimonYam, Kelly Lin, Cherrie YingIn Cantonese, Japanese and English withEnglish subtitles.

For years, O (Takashi Sorimachi) residesin an isolated world of killing and loneliness.A disciplined perfectionist, he knows anycontact with the outside world willjeopardize his life.

O’s life begins to change as his feelingsfor his housekeeper intensify. Chin, hiredto clean his apartment, has never met hermysterious employer. Tok (Andy Lau), aflamboyant newcomer, fancies the thrill ofkilling and is driven to become the No. 1

On November 13, 2003, a seminar will

be presented that brings together U.S. andChinese experts for a dialogue on currenttrends and issues for U.S. businesses inChina.

Whether you are exporting, importing,or just have an interest in business withChina, you will find the information at thisseminar invaluable. Determine your Chinareadiness, sharpen your strategies, andlearn from experts from China and the U.S.

Speakers scheduled include: Mr. KentKedl, director of Global BusinessDevelopment for Inscape Publishing, and

CHINA BUSINESS COLLOQUIUM

A China Seminar for U.S. Businesses

killer. The only challenge standing in hisway is O. Tok thus forces O out ofseclusion by approaching his secret crush.Before Chin knows it, she has become a partof their dangerous world.

International Police agent Lee (SimonYam) has been investigating O for years. Itis Lee who unveils the devastating past ofthe sharpshooters, who disappearedmysteriously after losing the gold medal.Just when Lee’s close to cracking the case,O vanishes altogether with Chin after aviolent shootout. Lee has a hard time lettinggo of the case. He knows Tok wants tochallenge O into a duel. So who’s thewinner? Who’s the No. 1 killer? What Leeneeds now, is someone to finish the storyfor him.

China business expert and consultant. Mr.Wang Guangfa, CEO and chairman, BeijingFazheng Group. Dr. Hong Yang, director,University of Minnesota China Center. Ms.Joan Brzesinski, assistant director, ChinaCenter.

Lurie Besikof Lapidus and Company,LLP and the University of Minnesota ChinaCenter cosponsor this seminar. The seminarwill be held on Nov. 13, 2003 from 8 a.m. to1:30 p.m. (lunch is included). Cost: $85 perperson and $65 each additional member fromthe same firm. Space is limited. Forquestions, please call the China Center at612-624-1002.

Asian Media AccessPresents

Cinema With PassionFulltime Killer

(Twin Cities premiere)

Killer continues on page 8

Walker Art Center, Northrop Dance Season present

CLOUD GATEDANCE THEATRE

of Taiwan

Sat., Nov. 15 — 8 pmNorthrop Auditorium

$39, $36, $31, $27 612-624-2345 www.northrop.umn.edu

“A masterpiece ofform and feeling”

—Chicago Sun-Times

Taiwan’s national treasure

performs Cursive, inspired by

Chinese calligraphy. With

rich shades of energy like ink

flowing onto rice paper, Lin

Hwai-Min's latest production

features stunning digital

animation and riveting music

by contemporary composer

Qu Xiao-song.

On Tuesday, Oct. 28, 2003 a group ofAsian Americans met with Mayor Rybakto discuss the Duy Ngo case and issued thefollowing statement to Mayor Rybak re-garding possible police misconduct. If youhave any comments you wish to make onthis matter, you should address them di-rectly to the Mayor's office at Minneapo-lis City Hall, 350 S. 5th Street, Minneapolis,MN 55487.

While the mayor’s office has taken stepsto open up dialogue with its diverse com-munities, there is one department within thecity, which has a long way to go to gain thetrust of minority communities, the policedepartment.

It has come to our attention that one ofour community members has suffered a hor-rific experience with the Minneapolis policedepartment. Officer Duy Ngo has been ex-emplary to the community and a model toour youth. His life seemed to embody theAmerican ideal. His career dream was to sup-port and serve our country, our state andour city through a career as a National Guardmilitary reservist and as a select member ofthe elite police Gang Strike Force.

He was serving in this capacity when onFeb. 25, 2003 he was injured in the line ofduty. He was first shot by a suspected drugdealer while he was sitting in an unmarkedcar on stakeout. Then after calling for helpand describing his situation to the dis-patcher as being an “officer shot”, he wasagain fired upon multiple times with an un-authorized submachine gun by a fellow Mplspolice officer who had responded to his callfor backup. This inappropriate use of deadlyforce occurred despite the fact that the of-fending officer was familiar with officer Ngohaving been one of his trainers. This oc-curred despite the fact that officer Ngo wasunarmed, already wounded, on his handsand knees on the ground, wearing a officialpolice department tactical squad rain jacketwhich said “Police” on the front and back,wearing his badge and was under a lightwhich illuminated him and the street.

Officer Ngo was shot 7 times with en-trance and exit wounds adding up to 2 in hisleft leg, 1 in his right leg, 5 in his groin and 4in his left arm. It was only his flak jacket that

prevented his death. And after all this oc-curred, there was an unaccountable lengthydelay in calling for an ambulance to aid him.

But what has been even more discon-certing is what has transpired since theshooting and the police department’s re-sponse to his shooting. The police deptacted in ways to discredit officer Ngo’s repu-tation and integrity by immediately issuingstatements to the press to discredit officerNgo, suggesting that he may have shot him-self to avoid military duty or that he wasacting in violation of police rules and policyas a rogue cop. They acted in a way as toput officer Ngo and his family’s safety injeopardy by releasing his identity, photo-graph and home address to the press, know-ing that his anonymity was critical for hissafety and ability to work undercover, re-leasing this information to the public whilethere is still a shooting suspect at large hecould potentially identify. He has beentreated as a pariah. There was an AA com-munity recognition event for him in June,which was attended by the St. Paul mayor,and police from the St. Paul gang strike forcebut no one from Minneapolis came.

The police chief and union president(who normally should be dealing only withthings like wages and benefits and not evencommenting) immediately sided public allywith and defended the white officer, whileofficer Ngo has been investigated as if hewere somehow the perpetrator.

The Asian American community doesnot understand why an officer shot in theline of duty was not recognized by his owndepartment for his sacrifice. Why has thepolice department conducted its own inves-tigation in to its own possible wrong doingrather than have an unbiased independentparty consult this. Why is the police forceonly 1% Asian American in a city where 8-9% of the population is.

There is a terrible message our commu-nity is receiving here about double standardsof justice and the impression that there arepowerful inside networks which have theability to manipulate the truth. It is hard forus to understand why this is happening thisway. It is hard not to draw a conclusion thatinstitutional racism here may be the reality.

Meeting with MinneapolisMayor Rybak

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CHINAINSIGHT > PAGE 8 NOVEMBER 2003

Screened at the following Film Festivals:Toronto, Berlin, South by Southwest andSan Francisco.

Contact Jackson Forderer with anyquestions you may have about this film and/or the Cinema With Passion film series.

Jackson FordererMovie Exhibition Coordinator

Killer continues on page 7

Community

Regarded as a national treasure

in its homeland, Cloud Gate Dance Theatreof Taiwan has become something of aphenomenon with American audiences aswell, “brilliantly fusing dance techniquesand theatrical concepts from the East andthe West,” The New York Times has said.

First performing in the Twin Cities in1998 with the visually stunning Songs ofthe Wanderers that rained sheets of goldenrice, Cloud Gate returns with Cursive, co-presented by Walker Art Center andNorthrop Dance Season at 8 p.m., Saturday,November 15 in Northrop Auditorium. Thisnewest creation by Cloud Gate’s visionarychoreographer Lin Hwai-Min is inspired byChinese calligraphy, its black-clad dancerson the stage’s white marley moving withrich shades of energy like ink flowing ontorice paper. The 70-minute performance isstaged with large projections of calligraphyand music by renowned Chinesecontemporary composer Qu Xiao-song.

This 19-member company derives itsname from the oldest known dance in China,“Cloud Gate” having been a ritual dancethat originated some 5,000 years ago. Thetroupe’s founder and artistic director LinHwai-min established the Cloud Gatecompany in 1973 after studying Chineseopera movement in his native Taiwan,modern dance in New York, and classicalcourt dance in Japan and Korea. He wasnamed “Choreographer of the 20thCentury” by Dance Europe magazine.

Cloud Gate’s repertoire is grounded inAsian myths, folklore, and aesthetics, givingthese age-old beliefs and stories acontemporary and universal perspective.The dancers are trained in Tai Chi,meditation, Chinese Opera movement,modern dance, and ballet.

Cursive grows out of a Lin’s longtimeexploration of traditional Chinese bodydisciplines. After studying masterpieces ofChinese calligraphy, he concluded thatdespite differences in styles, all brushstrokes shared a focused energy with whichthe calligraphers “danced” while writing.Interested in pursuing the possibilities of

Tai Chi and martial arts, Lin asked CloudGate dancers to improvise by facingenlarged images of calligraphy. Theyabsorbed the energy, or Chi, of the writerand imitated the linear “route” of the ink.Thus Cursive was born, full of lyrical flowsand strong punctuations — subtle, slowmotions and martial arts-like attacksexploding powerfully.

Lin, who holds a Masters in Fine Artsdegree from the Writers Workshop at theUniversity of Iowa, has said that it took him20 years to figure out how to do this piece.“I had to get it right because calligraphy isat the core of the Chinese culturalaesthetic,” he told Hedy Weiss of theChicago Sun Times. Likening calligraphyto an abstract painting, Lin remarked, “Itseems to be so free, but each characterconveys a great deal of meaning. It alsoreveals the personal _expression of thewriter.”

Upon seeing the production, Weisslauded it “a masterpiece of form andfeeling.” She added, “Cloud Gate dancerspossess a control and articulation on theverge of superhuman. These are performerswho can make stillness every bit as eloquentas animation.”

Tickets for Cursive are $39, $36, $31, $27with discounts available — call 612-624-2345 or online at www.northrop.umn.edu

PERFORMANCE

PREVIEW:

A member of Cloud Gate Dance Theatreof Taiwan provides insights about Cursiveand answers audience questions in a freeforum at 7:15 p.m. in 308 Northrop beforethe evening’s program. Seating is limited.

This event is made possible in part witha grant from the Minnesota State Arts Boardthrough an appropriation by the MinnesotaState Legislature and a grant from theNational Endowment for the Arts.

The Walker Art Center’s Performing ArtsProgram is generously supported by fundsfrom the Doris Duke Charitable Foundationthrough the Doris Duke Fund for Jazz andDance and the Doris Duke Performing ArtsEndowment Fund.

CLOUD GATE DANCE THEATRE OF TAIWAN STAGES“CURSIVE” AT NORTHROP AUDITORIUM

NOVEMBER 15

[email protected]: (612) 376-7715Fax: (612) 659-7172Asian Media Access730 Hennepin Ave., Suite M7Minneapolis, MN 55403Celebrating 10 Years of Connecting the

Disconnected

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China Insight is pleased to

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The Directory has been edited 100%by CCPIT and contains a list of itsmembers that are interested in

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Also included is a listing of industrial classifications and codes aspublished by the Statistic Bureau of China, foreign tradeorganizations and information web sites within China.

Now you can obtain this valuable resource directory that is usuallyavailable only to foreign trade offices of countries throughout theworld. Act now and you can receive the Directory of China’s ForeignTrade for $100.00 (U.S.) delivered to your address in the U.S..There are no additional charges.

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SPECIAL OFFER

By Jennifer Nordin, China InsightStaff Writer

On Thursday, October 16, China made

history by becoming the third nation toachieve manned space flight after the formerSoviet Union and the United States.Astronaut, (taikonaut in Chinese) Lt. Col.Yang Liwei, 38-year-old fighter pilot turnedastronaut, ascended into the sky in thespaceship Shenzhou 5 from a launch site inthe Gobi Desert at 9:00 a.m. local time onOctober 15. After more than 21 hours and14 orbits around the earth, Yang landed

safely in Inner Mongolia at around 6:23 a.m.local time. He commented, “The spaceshipoperated well. I feel very good, and I amproud of my motherland.”

This successful space flight is the latestaccomplishment in the history of China’sspace program begun in 1955 as a rocketry

CHINAINSIGHT > PAGE 9www.chinainsight.info TECHNOLOGY

CHINA SENDS MAN INTO SPACE:

ONLY THIRD NATION TO DO SO

CHINA SPACE continues on page 11

program by Tsien Hsue-sen a Chinese-born,American-trained rocketry expert who co-founded NASA’s Jet Propulsion Laboratory.It was not until 1992 that China launched a

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CHINAINSIGHT > PAGE 10 NOVEMBER 2003PEOPLE

adame Chiang Kai-shek,who became one of theworld's most famouswomen as she helped her

husband fight the Japaneseduring World War II and later the ChineseCommunists,has died inNew York. Shewas 105.Though bornin the East,M a d a m eChiang wast h o r o u g h l yWestern inthought andphi losophy.Brought up ina Methodistfamily, shestudied inAmerica fromthe age of 10 to19 and graduated with honors fromWellesley College in Massachusetts in 1917."The only thing Oriental about me is myface," she once said.

Madame Chiang, also known as SoongMei-ling, had lived in semi-seclusion afterPresident Chiang Kai-shek's death in 1975,spending much of the time in her Manhat-tan apartment. Her last visit to Taiwan wasin 1995.

She caught a cold Wednesday and de-veloped minor symptoms of pneumonia "be-

fore going very peacefully" at home Thurs-day night, said Chiang Fang Chih-yi, widowof Chiang Kai-shek's grandson ChiangHsiao-yung.

Madame Chiang and her husband wereonce major political forces in the Nationalistgovernment that ruled China before losing acivil war to the Communists in 1949 and re-treating to Taiwan. But the Chiangs' influ-ence faded fast as Taiwan shed itsauthoritarian past and evolved into a de-mocracy during the past two decades.

Her supporters said she was a powerfulforce for international friendship, under-standing and good. But her detractors calledher an arrogant dragon lady and propagan-dist for her husband's corrupt, incompetentgovernment.

Her family's background could serve asa brief history of modern China as seenthrough revolution, efforts to unify andmodernize and the split between the Com-munist People's Republic of China and theNationalists' Republic of China.

Her father, Charles Soong, was educatedas a Christian missionary at Vanderbilt Uni-versity in Tennessee. Mei-Ling was theyoungest of his three daughters -- knownfor their beauty and their marriages to someof the most influential men of pre-World War

II China.Ai -Ling ,

the eldest,m a r r i e dChina's fi-nance ministerH.H. Kung.Ching-Lingmarried Dr.Sun Yat-sen,leader of theN a t i o n a l i s trevolution thato v e r t h r e wChina's lastemperor in1911 and aclose associ-

ate of her father.Mei-Ling's wedding completed the pic-

ture and inspired a famous saying about theSoong sisters, "One loved money, one lovedpower and one loved China."

M

Madame Chiang Kai-shek

The one who loved power was MadameChiang.

She met her husband, a disciple of Sun,around 1920, and married him on Dec.1, 1927.She later converted him to Methodism, but

their marriage was often stormy, in part be-cause of Chiang's infidelities.

She was a working wife, taking on tasks

ranging from interpreter and social workerto the head of China's air force during WorldWar II.

Madame Chiang also was one of herhusband's most prominent lobbyists inWashington. The Generalissimo could notspeak English and disliked dealing with for-eigners, so his wife became his spokesman,creating an image of an attractive, young

couple trying to steer China out of war.In one of her most famous U.S. public

appearances, she addressed the U.S. Con-gress in 1943 in perfect English, her slenderfigure dressed in a stunning black traditionalChinese dress. She tried to convince theAmerican lawmakers that defeating Japanwas more important than stopping Germany,and that U.S. forces should concentrate moreon battling the Japanese in China.

After the Japanese defeat, she returnedto Washington in 1948 to ask for aid to fightthe Communists. But many lawmakers hadgiven up on the corrupt and repressive Na-tionalist government, which eventually lostthe war.

As the Generalissimo's health deterio-rated, control of the Nationalist governmenteventually passed in 1972 to one of his twosons by a previous marriage, Chiang Ching-kuo. Madame Chiang and her husband hadno children of their own, and she had longbeen on bad terms with Chiang Ching-kuo.

After her husband's death in 1975, Ma-dame Chiang moved to the United States.

When then-President Jimmy Carter an-nounced that the United States was break-ing off diplomatic relations with Taiwan andrecognizing the Communist People's Repub-lic of China in 1979, Madame Chiang re-

mained inseclusion anddid not com-ment.

The Na-t i o n a l i s t se v e n t u a l l ygave up thegoal of retak-ing the main-land, and theparty's ranksbegan to fillwith nativeTaiwanese asthe influenceof the main-landers whoretreated withChiang Kai-shek fadedaway.

In March 2000, the party lost its five-decade control of Taiwan's presidency tothe Democratic Progressive Party, oncebanned during the martial law era.

Madame Chiang endorsed Nationalistcandidate Lien Chan, but few voters paidserious attention to her and Lien was bat-tered at the polls -- an example of her fadinginfluence.

She is survived by the grandchildrenand great grandchildren of Chiang Ching-kuo. As this article was prepared, final fu-neral arrangements have not beenannounced but undoubtedly her family willbe faced with many of the same controver-sies in making arrangements as did MadameChiang experienced in her lifetime.

Source: This article was complied frommany news sources and publications.

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

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CHINAINSIGHT > PAGE 11www.chinainsight.info BUSINESS

United Airlines andAir China Agree onMarketing Alliance

Relationship toProvide Unrivaled

Access Between UnitedStates and China

BEIJING /PRNewswire/ -- UnitedAirlines and Air China an-nounced they have reached a

marketing alliance, including cooperation oncode share flights, frequent flyer programsand airport lounges, taking an important steptoward expanding their networks and betterserving the needs of customers.

The marketing alliance between Unitedand Air China will take effect on Oct. 31,when United's 14 weekly flights (dailyBeijing-Chicago and daily Shanghai-SanFrancisco service) connecting the U.S. withChina will carry United's and Air China'scodes. At the same time, Air China's 12weekly flights (four Beijing-Los Angeles,three Beijing-New York and five Beijing-SanFrancisco) will be operating under Air China'sand United's flight numbers. In total, the twocarriers will offer 26 nonstop code shareflights a week between China and the U.S.

"Our new marketing alliance with AirChina will provide our customers with moretravel options and benefits," said Glenn F.Tilton, Chairman, President and CEO, UnitedAirlines. "China's aviation market is grow-ing rapidly, and Air China's extensive net-work covers all major business and travelhubs in China. The new relationship withAir China will further expand United's world-wide network and access to China."

Air China President, Li Jiaxiang, added,"Air China aims to become one of the world'smajor airlines. To align with world-class air-lines such as United is a key component ofAir China's globalization strategy. The agree-ment with United Airlines is an importantmilestone for Air China."

Under the agreement with Air China,United will extend its service from Beijingand Shanghai to five other cities via code-share flights operated by Air China carryingUnited's codes. The five cities areGuangzhou, Shenyang, Xi'an, Fuzhou andShenzhen.

Air China will also extend its network byadding its flight numbers onto United'sflights from Chicago, San Francisco and LosAngeles to 14 other U.S. cities: Atlanta, Bos-ton, Dallas, Honolulu, Houston, Las Vegas,Miami, Minneapolis, New York, Philadelphia,Phoenix, Portland, Seattle and Washington

D.C.Members of United Airlines' Mileage Plus

frequent flyer program and Air China's Com-panion frequent flyer program will be able toearn qualifying frequent flyer miles/kilome-ters on both carriers' code-share flights andredeem awards on all United and Air Chinaflights.

About Air China

Air China is a subsidiary of China Na-tional Aviation Holding Company (CNCH)and was established on October 28, 2002,consolidating the original Air China, ChinaNational Aviation Company (CNAC), andChina Southwest Airlines. Air China com-pleted an internal restructuring plan on July28, 2003. Currently, Air China operates 395routes, including 73 international and 322domestic routes and offers 480 scheduledservices on a daily basis. It has branch of-fices in Chengdu, Hangzhou, Chongqing,Tianjin, and Inner Mongolia. It has a total of31 domestic offices and 46 overseas offices.Air China ranks first among the Chinese air-lines in terms of its total assets, fleet andextensive domestic and international net-works.

About United Airlines

United entered China's market in 1986and is one of the major U.S. carriers servingChina, with 21 weekly flights to Beijing andShanghai. In 2002, United's employees broke35 company records and achieved the bestoverall operational performance in thecompany's 77-year history. United Airlinesfinished 2002 ranked No. 1 in the industry indomestic on-time performance among majorairlines as published in the Department ofTransportation's Air Travel Consumer Re-port for 2002. United and United Expressoperate more than 3,300 flights a day on aroute network that spans the globe. Newsreleases and other information about Unitedcan be found at the company's web site atwww.united.com.

Source: United Airlines; Air China

program with the goal of manned spacemissions. After this monumental success,China’s next goals are performing dockingmaneuvers in space, developing a spacestation, putting a man on the moon beforethe Beijing Olympics in 2008 and aHubble-like orbiting telescope.

Obviously, the flight was a source ofgreat national pride to the Chinesepeople. It symbolized China’s positionas a technologically advanced nation. Itssuccess reflected well on China’s newpolitical leadership. Overall, internationalreaction to this manned flight has beenpositive, although some wariness hasbeen expressed.

Susan Shirk, a China specialist at theUniversity of California-San Diego, saidYang’s flight would allow China to feelgreater national pride without doing soat the expense of other countries. It’s afocus for a kind of positive nationalismsimilar to the Olympics, which cansubstitute for a more assertive, negativenationalism that involves blaming othersfor China’s own problems,” she says.

The mission, according to USAToday, also appears to indicate furtherprogress by Chinese President Hu Jintaoin cementing his authority at the expenseof his predecessor, Jiang Zemin. SinceHu took office in March, factions loyal tohim and Jiang have skirmished.

The success of this mission cappedan 11-year effort that has cost this still-poor nation an estimated $2 billionannually. The flight by Yang followedfour unmanned test flights of theShenzhou or “Divine Vessel” spacecraft.

Yoon Duk-min, a regional securityexpert at the Institute of Foreign Affairsand National Security in Seoul, SouthKorea, said “We should be proud of thefact that Asia’s space technology hascome this far.” He believes that China’saccomplishments could inspire dynamiccompetition in space research as well as“help elevate Asian technology by onesignificant notch.” The United States,Vietnam and other governmentscongratulated China on what NASAadministrators called “an importantachievement in the history of humanexploration.”

Manned space flight is a significantmark of China’s technological progress.It can also be perceived as a threat byother Asian nations if it were used formilitary purposes even though Chineseofficials insist that all forays into spacewill be peaceful. Both Japan and Indiaoffered congratulations to China on itsspace flight, but they remain cautious.Japanese military analyst Tetsuo Maedasaid that the launch will “hasten Japan’sballistic missile defense program.” UdayBhaskar, deputy director of the Instituteof Defense Studies and Analyses in NewDelhi, India said that “India should bemonitoring China’s capability.” “Indiaand China are natural competitors,” hestated. “The challenge is to keep ithealthy.”

Joseph Kahn, in his analysis in theNew York Times, viewed China’s effortsin space as “part of a broader push forinternational recognition” as well as an

CHINA SPACEfrom page 9

effort to catch up with the west by“retrac[ing] the steps that made theUnited States the world’s unmatchedsuperpower.”

While it is always wise to consider andbe aware of potential dangers to nationalsecurity, it is harmful to develop theawareness to the point of paranoia.China’s achievements in space should belauded by the international community. IfChina is indeed trying to “catch up to thewest” using the United States’ path as amodel, it needn’t be a threat. Russia andthe United States, former rivals, have cometogether to further space research. Theyshould welcome China into the elite groupof countries who have sent people tospace and work together.

And although taikonaut Yang Liweibecame an instant national hero in China,where is he? As of this writing, Yang hasnot appeared anywhere in public. Therehave not been any ticker-tape parades inBeijing or other appearances. Instead, his8-year old son has been the human faceof the media blitz. Yang Ningkang madehis debut on state television severalweeks ago when his father talked to himfrom orbit.

His absence may be an attempt by thegovernment to temper the individual sideof the achievement it has beenaggressively promoting. “It is normal thatYang Liwei has been regarded as a nationalhero and a good example for the young tolearn from” said Peng Zongchao, aprofessor of public policy at TsinghuaUniversity in Beijing.

Peng, however cautioned, “Thegovernment should make sure there aren’texcessive reports about one individual,because behind the success there was awhole project and system supporting themission.”

China’s space program employs tensof thousands of people, many of whomwork in secrecy and will not share in thelimelight.

Yang was one of three finalists for thespace flight. They were part of a 14-member astronaut corps picked fromamong 1,500 military pilots. He waspicked just hours before the flight. It wasalso reveled that Yang was promoted to afull colonel week’s prior to the flight butwas not informed so that if he wereselected, he would not be distracted.

Just as this article is being finalized, ithas been announced that China’s firstman in space will appear in public…noton the Chinese mainland but in HongKong.

Yang Liwei will spend four days inHong Kong starting Friday, Oct. 31, 2003,according to the territory leader TungChee-hwa. The appearance, the firstpublicly announced for Yang, seems asan attempt at boosting the former Britishcolony’s topic sense of Chinanationalism.

During his four-day visit, Yang’sShenzhou 5 space capsule and its landingparachute, his space suit and samples ofhis meals will be on display, Tung toldreporters in Hong Kong.

Following Yang’s flight, China said itwould launch another Shenzhou flightwithin two years and eventually plan toestablish a permanent manned spacedstation.

Stay tuned.

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CHINAINSIGHT > PAGE 12

HISTORIC CLASS TO RECEIVE

CHINA EXECUTIVE MBA

NOVEMBER 2003

By Greg Hugh, China Insight Staff Writer

It will be a very memorable and historicday in November 2003, when the firstgraduating class from the CarlsonSchool of Management’s ChinaExecutive MBA (CHEMBA) program

receives their EMBA degree. Establishedin 2001 with Lingnan (University) Collegeat Sun Yat-sen University in Guangzhou,China, the CHEMBA program was China’sfirst accredited EMBA program with aforeign university.

To appreciate the significance of thismilestone event, one needs to understandsome of the background that led to theimplementation of such a program.

According to MahmoodZaidi, professor and directorof International ProgramsDevelopment at the CarlsonSchool of Management andthe Academic Director ofCHEMBA, it took a period ofover two years to raise funds

and develop a consensus in both countriesthat this was a worthwhile program topursue. It was also important to the CarlsonSchool that like its other programs, it had tobe self-sustaining from the beginning andnot underwritten or subsidized with publicfunds.

With the help of Zaidi, the University ofMinnesota’s Carlson School ofManagement had already successfullyimplemented the first offshore MBA degreeprogram at the Warsaw School of Economicsin Poland. This expertise in transitioneconomies was attractive to Lingnan(University) College, L (U) C, the Chineseauthorities and businesses in China.Furthermore, China’s emerging market wasstrategically important to both Minnesotabusinesses and the Minnesota economy.

During the early stages of this process,the Carlson School and L (U) C had tocomplete a number of steps that wereoutlined in a Memorandum ofUnderstanding that both schools hadsigned. L (U) C and the Carlson School hadto get the joint venture approved by theEducation of Ministry of China as well asthe Degree Committee of the State Council.The Carlson School had to get the approvalof its own faculty and the Board of Regentsat the University of Minnesota and by theInternational Association of Management

Education-American Assembly of CollegiateSchools of Business.

In addition to securing and meeting thenecessary academic requirements,this program needed to gain the support ofbusinesses in both countries. L (U) C wasable to get the support of many Chinesebusinesses when it received the support ofits alumni group that was lead by Dr. JamesWu, Honorary Chairman, and L (U) C Boardof Trustees.

In the United States, business supportwas bestowed by the likes of 3M (U.S. andChina) & other Minnesota Corporations.

As for the compatibility of the twouniversities that have created this CHEMBAprogram, one only needs to look at theirrespective histories.

Founded in 1851, the University ofMinnesota is one of the mostcomprehensive universities in the UnitedStates and ranks among the top 3 publicresearch universities in the country. Formore than 80 years, the Carlson School hasbrought people and ideas together, fulfillingits mission of teaching, research, andoutreach. Today, this tradition is carriedforth by an international community ofstudents, faculty, and managementprofessionals who make up the CarlsonSchool’s professional learning community.

Sun Yat-sen University, located inGuangzhou, the capital city of GuangdongProvince, and adjacent to Hong Kong andMacau, was founded in 1924 by Dr. Sun Yat-sen. With a deep-rooted academic tradition,Sun Yat-sen University is regarded as themost comprehensive university in SouthernChina.

Lingnan (University) College was namedafter Lingnan University, which was set upin 1888 by Americans in Guangzhou as aprivate university and transferred to Chinesenationals in 1927. With a strong teachingstaff and graduates, by the 1930’s, LingnanUniversity had acquired considerable fameat home and abroad and establishedacademic links with famous universitiesworldwide. In 1952, as a result ofreorganization of the universities in China,Lingnan University’s departments wereincorporated into several other universitiesand Sun Yat-sen University.

Since it took the better part of almostthree years to get this program exactly

correct, the inauguration of CHEMBAProgram in China was not scheduled untilSeptember 2001. As fate would have it, TheAttack on America on September 11thoccurred and the program’s launch wasquestionable. After all the work it took toput this program together, it was decidedthat a delay would provide the terroriststhreat with an international victory so theinauguration of CHEMBA 2001 proceededas scheduled on Sept. 20, 2001 resulting ina class of 35 candidates. This 2001 classwas scheduled to complete all itsrequirements by May of 2003 but due to theunforeseen emergence of the SARS virus,the class could not complete itsInternational Residency component oftraveling to the United States until now. Itshould also be noted that the U.S. StateDepartment cooperated in a timely mannerby granting the necessary visas for theseCHEMBA candidates to enter the UnitedStates.

The first CHEMBA classwill be arriving in the UnitedStates on November first tocomplete the InternationalResidency portion of theirprogram. This portion of thecurriculum will consists ofclassroom lectures, visits toMinnesota businesses and anumber of social events. Thevisits to businesses will behosted by the Federal ReserveBank of Minneapolis, 3M,

EDUCATION

Carlson Companies, General Mills,Medtronic and H.B. Fuller—all of themhaving some business interests in China.These candidates will also get a taste of theU.S. social experience: a banquet at theMinneapolis Club and an evening at theMinnesota Orchestra, both events hostedby Eugene Sit, Chairman of SITInvestments, and a member of the CarlsonSchool’s International Programs AdvisoryCouncil. The formal graduation ceremonieswill be held on November 10th.

These CHEMBA I candidates all holdexecutive positions within some of theleading firms, both Chinese and foreignowned in a wide variety of industriesthroughout China. Such industries include:technology, finance, pharmaceutical, andtextile and government administration.

CHEMBA II class is scheduled to do itsInternational Residency at the CarlsonSchool in May 2004. The CHEMBA III classwas inaugurated by Dean Larry Benvenistein Guangzhou in September 2003.

On November 3, 2003, the China Centerof the University of Minnesota will host areception and dinner for this first CHEMBAclass. Although the public is invited to thisreception and dinner at the Carlson School’s

EDUCATION continues on page 13

Below:Opening Ceremony of CHEMBA III

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CHINAINSIGHT > PAGE 13www.chinainsight.info

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heavily in things and not enough in people?Does its edifice complex threaten its futureprosperity? Will it yield an ever-wider gapbetween haves and have-nots, asks TheAsian Wall Street Journal.

James Heckman, a Nobel Prize-winningeconomist from the University of Chicago,thinks so. A couple of years ago, he touredChinese factories on the way to a conferenceon capital markets in Chongqing. “They buyfancy equipment, and they can’t run it,” hesays. “There are a lot of skilled Chinese,but there are even more machines that needskilled workers.” With those factories freshin his mind, he talked at the conference notabout financial markets, but about China’smyopic policies toward what economistscall “human capital.” China spends less oneducation than other developing countries,according to United Nations tallies. In 1998-99, the latest data available, China spent asum equal to 2.2% of its gross domesticproduct on education and roughly 15 timesthat amount on physical capital. Turkeyspent 2.9% on education, India 3.2%, Russia

3.5% and the Philippines 4.2%. (The U.S.spent 5%.)

There are signs that may be changing.College enrollment is swelling, The officialPeople’s Daily says 2.5 million will graduatefrom college next year, up from 1.2 million in2001. There is a glut of recent college gradsin the big cities who can’t find jobs there.But children of migrants from thecountryside to big cities aren’t welcome inlocal public schools. Available datasuggests paltry public spending onelementary and secondary schooling inChina’s poorer western provinces.

This could be a colossal mistake. For allthe dazzling technology of the 20th century,the secret of American prosperity was ineducation—from the transformation ofAmerican high schools to serve all comersto the US government-financed march ofreturning World War II soldiers to college.China’s recent economic success isimpressive. But it can last only if it shiftsresources away from public works projectsand skyscrapers toward its schools,Heckman cautions. “Human beings are asimportant, if not more important, thanphysical capital in creating wealth andgenerating a successful economy,” he says.

China’s Future

Rests in

Schools

C

EDUCATION

Source: World Bank Press Review

hina isn’t a rich country yet. Itseems to think that the best wayto become a rich country is to buildthings. But is China investing too

EDUCATION from page 12

private dining room in the basement level,deadline for making reservations wasOctober 24, 2003, which occurred before wewent to press so if you are interested inattending, you would need to call the ChinaCenter at 612-624-1002 to check on

availability. The reception will begin at 5p.m.with dinner to follow. The highlight of theevening will be a keynote presentation byMr. Andy Wong, vice president and generalmanager, Optical Systems Division of the3M Company.

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CHINAINSIGHT > PAGE 14 NOVEMBER 2003EDUCATION

The China

CalendarA FREE E-MAIL UPDATE

SERVICE

China Insight offers a freeservice for our readers:ChinaCalendar e-mail updates.

It is sent out approximatelybiweekly and augments ChinaInsight’s monthly print calendar byproviding more detail and up-to-theminute news on local events.

Whether you have business orcultural interests in China,ChinaCalendar keeps you apprisedof the latest local events. Sign uponline at www.chinainsight.info byclicking on the ChinaCalendar link.

At the same time, organizationsmay now submit information on anyof their events directly via thewebsite. We intend to forward allsuch news to registered subscribersapprox. the 2nd and 4th Wednesdayof each month.

Thank you for your support.Our goal continues to be to provideyou with the most relevantinformation about U.S.-Chinacultural and business harmony andwe invite you to also contact us withany suggestions as to topics youwould like featured [email protected].

he Minnesota/ChinaTeacher Exchange is a littleknown facet of education inMinnesota. Little known thatis except to the students and

teachers all over the state who havebenefited from taking part in the program.What follows is an attempt to explain whatthe program is and to seek interestedindividuals who would like to participate inthe Exchange by teaching, volunteering orfinding out how we can benefit businesses.

For the past 17 years the educationalexperience for many Minnesota schoolchildren has been enriched by the presenceof teachers from the Peoples Republic ofChina. The China of Mao and the women ofWorld Cup Soccer. The Chinese teachershave been everywhere from Minnetonka(for 16 of the 17 years) to Mora and fromStillwater to Grand Rapids. At present thereis a healthy Chinese language program inMinnetonka schools that stems, in largepart, from the Chinese teachers’ presenceand influence.

That is only part of the story becausethe program has sent almost seventyMinnesota teachers to the Peoples Republicin good times and bad. They have taughtmainly in Zhejiang Province which is a largeand now wealthy, coastal province 120 milessouth and west of Shanghai. The Minnesotateachers have mostly taught in theHangzhou Foreign Language School (oneof the premiere middle/high schools inChina). The teachers have also made theirpresence felt in colleges and universities.Often the spouses of teachers also teach.Knowledge of Chinese is not necessary asmost of the students have excellent Englishlanguage skills.

Conceived in 1983 and launched in 1985the MN China Teacher Exchange beganearly in China’s opening to the West. Atthat time much of the ‘knowledge’Minnesota had of China was conditionedby the stereotypes of the Mao years: themasses dressed in drab, uniform, clothing,performing intense physical labor to create

massive public works projects. One of theeffects of the Exchange has been to dispelthose stereotypes by allowing Chinese andMinnesota teachers to live for an extendedperiod of time in each other’s country. (TheChinese come to Minnesota for a year andour teachers can go to China for either a 6month or 12 month stay.)

Access to ordinary Chinese life forthese Minnesota teachers is virtuallyunprecedented. Most foreigners aresequestered in purpose built housing andtheir contacts are circumscribed. TheHangzhou Foreign Language Schoolhouses Minnesota teachers in the sameblocks of flats as Chinese teachers. Theteachers are free to interact with theirEnglish speaking colleagues. (ManyChinese have been eager to interact withthe teachers in other venues just to be ableto practice English.) The Minnesotateachers also meet with students and theirfamilies. They travel all over China and theybring back to Minnesota a wealth ofknowledge that they then impart to theirstudents and to adults at presentations andmeetings.

The teachers from China have also hadexperiences that are out of the ordinary.They come to Minnesota and live for a fullyear with host families. The Chinese haveexperienced a way of life that was fardifferent from theirs. Recently, as their livesin China have changed they can see howthey are moving closer to the way people inMinnesota live. (Most Chinese aspire toown single family homes and cars but they

The Minnesota China Teacher Exchange:How to Experience A Positive Force for Change

are not there yet.) They teach in MinnesotaPublic Schools and meet colleagues,students, and others from all walks of life.They have traveled to most of the fiftystates with travel to Niagara Falls being acoveted experience.

The Hangzhou teachers through theiraffability and teaching capability haveshown that the Chinese are not a mass ofpeople but individuals who leave a largegap in our lives when they leave after a year.

The Minnesota/China TeacherExchange has continued because ofcooperation between Zhejiang Province andMinnesota. (The Hangzhou ForeignLanguage School and the provincialadministrators are all committed supportersof the program.) In Minnesota the StateDepartment of Education has functioned asa sponsor for the program and theMinnetonka School District and ECMECC(East Central Minnesota Educational CableCooperative, group of school districts thatcooperate for cable TV education) havebeen staunch supporters accepting ateacher from China each year.

The program has reached a watershed.Recently the small amount of fundingsupplied by the State Department ofEducation dried up. The organization isnow dependent on donations fromparticipating teachers. School districts areno longer able to let teachers go onsabbatical, or leave, as much as they oncedid. Nor can they support the teachers withsupplies or curriculum help. Most teachersgoing from Minnesota buy their ownairplane tickets and pay travel expenses justfor the pleasure of taking part in theprogram. (The Foreign Language Schoolpays them a stipend and supplies them withhousing and a bike…it takes a lot of moneyand time to learn to drive a car in China)

This brings me back to my openingparagraph. We are looking for people whowould like to teach in China. You do notneed a teaching degree. Experience inbusiness or education is fine. The ability tolive and work in a foreign culture is key butforeign experience is not a prerequisite(Although it is helpful. China is differentstill from the United States) All you need isan open mind and a desire to learn and teach.We can help you with curriculum and withan introduction to China. You don’t needto know Chinese; many Chinese speakEnglish and you can get along by learning

T

some of the language. If you are aUniversity teacher we can place you and ifyou are a teacher from elementary to highschool we welcome inquiries. We can placeyou as well.

If you own a business, or work in one,we would also like to hear from you. TheExchange has excellent contacts withChinese government entities and withChinese businesses through past andpresent Chinese participants in theExchange. We can help you to furtherbusiness in China. We would alsoappreciate your help in supplying fundingand other resources to keep the Exchangegoing. We are on our way to being a non-profit so donations can be tax deductible.

In sum the Exchange has been ofimmense value to both Minnesota andChina. (Minnesota’s third largest tradingpartner is China). The exchange has broughtknowledge, diminished stereotypes andchanged lives. We need your help to keep itgoing.

If you would like to participate call usfor more information on how to get involvedor if you just would like to meet individualswho are learned about China.

Douglas Palmer952-831-5006Dr. Dick Ott952-542-0609Michael Johnson 651-774-8033

By Dr. Dick Ott, Vice PresidentMinnesota China Teacher Exchange

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www.chinainsight.info CHINAINSIGHT > PAGE 15GOVERNMENT

CHINA’S CENTRAL PEOPLE’S GOVERNMENT:

THE STATE COUNCIL

I

By Lisong Liu, China Insight Staff Writer

Secretary General. Under the leadership ofthe Premier, the Auditor General directs theauditing body which independentlyexercises its power to supervise by auditingthe revenue and expenditure of alldepartments under the State Council and ofthe local governments at different levels.

The State Council is to carry out theprinciples and policies of the CommunistParty of China and the regulations and lawsadopted by the NPC, and to deal with suchaffairs as China’s internal politics, diplomacy,national defense, finance, economy, cultureand education. It exercises the powers ofadministrative legislation, administrativeleadership, submitting proposals, economicmanagement, diplomatic administration,social administration and other powersgranted by the NPC and its StandingCommittee.

2. Institutional Reforms

a. Reforms in historyThe institutional reform adopted by the

10th NPC is in fact the fifth large-scalegovernment restructuring since the 1980s.The first one took place in 1981 approvedby the 5th NPC, reduced the agencies of theState Council from 100 to 61, while the staffnumber in the State Council decreased from51,000 to 30,000. The second governmentrestructuring in 1988 and the third one in1993 further reduced the numbers ofagencies under the administration of theState Council. In the third restructuring theTaiwan Affairs Office and Information Officeof the State Council were added.

The fourth institutional reform in 1998was also a dramatic one. It cut the numberof State Council departments from 40 to 29,and staff numbers were cut in half, from32,000 to 16,700. Similar reforms also werecarried out in local government agencies.The key inherent theme of these reformswas to adapt the state planning apparatusto the needs of economic reform anddevelopment, to separate administrationfrom enterprise management and to improvegovernment management and its style ofworking.

b. The restructuring of the newgovernment in 2003

Adopted by the 10th NPC in March 2003,the restructuring of the new government thisyear reduced the number of ministerial-leveldepartments from 29 to 28. Though therestructuring seems to be mild in the sensethat it keeps the general governmentstructure unchanged, its main objectives areto clarify bureaucratic responsibilities,achieve streamlined decision-making andtake government further away frommicromanaging the economy.

CSASA. The Commission of the State-owned Assets Supervision andAdministration (CSASA) was created in the

n this issue we will talk about thecentral people’s government ofPRC: the State Council. It is thehighest executive body of the statepower and the highest organ of

state administration. We will first introducethe composition and functions of the StateCouncil, then pay more attention to the newgovernment’s institutional reform asadopted by the 10th National People’sCongress (NPC) this year.

1. Composition and functions

The State Council is composed of thePremier (Wen Jiabao as current Premier), theVice Premiers (currently 4 people), the StateCouncilors (currently 5 people), theMinisters of various Ministries andCommissions (currently 28 people), theAuditor General (1 person), and theSecretary General (1 person).

In addition, the current State Councilincludes the following: an ad hocorganization directly under the StateCouncil, which is newly set up, calledCommission of the State-owned AssetsSupervision and Administration; 18organizations under direct administration ofthe State Council, such as GeneralAdministration of Customs and StateIntellectual Property Office; 6 workingorgans directly under the State Council,such as Overseas Chinese Affairs Office andLegislative Affairs Office; 14 institutionsdirectly under the State Council, such asXinhua News Agency and ChineseAcademy of Sciences; and 12administrations and bureaus under theMinistries and Commissions of the StateCouncil, such as the State GrainAdministration and the State Post Bureau.

The term of the office of the StateCouncil is the same (five years) as that ofthe NPC. The Premier, Vice Premiers andState Councilors serve no more than twoconsecutive terms. Executive meetings ofthe State Council include the Premier, whopresides over the meetings, the VicePremiers, the State Councilors and the

reform. It is expected to bring the oversightof State assets under one body. There are195 large enterprises owned by the centralgovernment, plus their subsidiarycompanies, increasing the number of suchenterprises with State assets to 12,000.Previously, there were several departmentsinvolved with overseeing these State assets,which resulted in complicated cross-ownership of the assets. The newCommission is to work as an investor asstipulated in the company law and keep outof other affairs. A key concern in such arestructuring is how to divide the stateassets between the central government andlocal authorities, and how to organize thelocal State-asset management bodies.

SDRC. The State Development andReform Commission (SDRC) integrates thefunctions of the former State DevelopmentPlanning Commission, the Structural ReformOffice and the State Economic and TradeCommission. The new Commission is tostrength the government’s macroeconomiccontrol. It is responsible for thecomprehensive study and formulation ofpolicies on economic and socialdevelopment, and for guiding andadvancing economic system reform.

CBRC. The China Banking RegulatoryCommission (CBRC) takes over the

regulatory role from the People’s Bank ofChina. CBRC will exercise unifiedsupervision and control of banks, propertymanagement companies, trust andinvestment corporations as well as savingsdeposits financial institutions. The centralbank will be mainly responsible for drawingup and implementing monetary policies,while still supervising financial activitiessuch as cash flow and the entry and exit offoreign reserves.

Ministry of Commerce. Before theestablishment of the Ministry of Commerce,China divided domestic and foreign tradeas a copy of the former Soviet Union’ssystem. Such a separation was not in linewith the new role of China after her entry

into the WTO with the open market and theneed to absorb foreign investment. TheMinistry of Commerce thus integrates thefunctions of the former State Economic andTrade Commission and that of the formerMinistry of Foreign Trade and EconomicCo-operation. Lu Fuyuan, now 58 years old,is the first commerce minister.

SFDA and SAWS. The State Food andDrug Administration is to exercise thefunctions of the former State FoodAdministration, and to strengthen themanagement of the safety of food, healthproducts, cosmetics and medicine which aredirectly related to people’s life. Togetherwith the upgrading of the StateAdministration of Work Safety to aninstitution directly under the State Council,such institutional restructuring shows theneed and action for increasingconsciousness for people’s fundamentalinterests and public safety.

3. “Four phrases” of the newgovernment

The newly elected Premier Wen Jiabao,in a meeting with the press during the 10th

NPC, put the work of his new cabinet in anutshell of “four phrases”: “achieve onegoal,” “implement two key policies,” “solvethree major economic problems” and“promote reforms in four major aspects.”

The one goal is to maintain a sustainableand comparatively rapid development of thenational economy and improve people’sliving standards.

The two key policies are to realize thestrategic economic restructuring andcontinue to open up to the outside world.

The three major economic problemsinclude how to solve unemployment andsocial security system, how to increasefiscal revenue and cut public spending, andhow to correct and standardize theeconomic order.

The “reforms in four major aspects”include the reform of the rural economy, thereform of state-owned enterprises, thereform of financial system and the reform ofgovernmental agencies.

China’s Premier, Wen Jiabao.Source: People Daily

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