VOL. XXVII No. 2 February 2015 Rs

Transcription

1 VOL. XXVII No. 2 February 2015 Rs Chinese Foreign Minister Wang Yi (R) met with his Indian counterpart Sushma Swaraj and held talks with her on bilateral ties in Beijing China on Feb. 1, 2015.

2 Chinese Foreign Minister Wang Yi (3rd R) held talks with his Indian counterpart Sushma Swaraj (3rd L) in Beijing, China on Feb. 1, Mr. Jiang Jianguo(R), Director of the Chinese State Council Information Office (SCIO) of China and Ms. Sushma Swaraj, Indian External Affairs Minister attended the launching ceremony of Visit India Year 2015 in Beijing on Feb. 2, Chinese Ambassador Mr. Le Yucheng met with Mr. Ajit Kumar Doval, National Security Adviser of India and Special Representative for China-India Border Talk in Chinese Embassy on Feb. 2, They exchanged views on common concerns. Mr. Le Yucheng, Chinese Ambassador to India met with Indian Minister of Defence Mr. Manohar Parrikar in New Delhi on Feb.3, 2015 and discussed with him on the development of military relations between China and India. Mr. Le Yucheng, Chinese Ambassador to India met with Mr. Siddaramaiah, Chief Minister of Karnataka in Bengaluru on Feb. 4, 2015 and exchanged views with him on China-India relations and local cooperations between the two countries. On Feb.15, 2015, a celebration followed by a reception was held in Chinese Embassy to celebrate the Chinese New Year Hundreds of overseas Chinese and Indian guests attended the event.

3 CONTENTS CHINA INDIA RELATIONS 1. Chinese President Eyes Continued Correct Direction for China-India Ties 4 2. Indian PM Expresses Wish for Stronger Economic, Trade Ties with China 5 3. Chinese Leaders Congratulate India on Republic Day 6 4 China, India Express Willingness to Deepen and Broaden Bilateral Cooperation 7 5. Chinese, Indian FMs Hold Talks 8 6. China India to Boost Tourism Cooperation 9 7. Joint Communique of Russian, Indian, Chinese Foreign Ministers' Meeting Media to Play More Positive Role in Boosting China-India Ties Impression with and Reflection on China-India Relations Ambassador Le Yucheng s Interview with Deccan Herald 23 EXTERNAL AFFAIRS 1. Xi Jinping Holds Talks with Argentine President China, France Pledge to Boost "Strategic" Cooperation Chinese Premier Li Keqiang's Address at World Economic Forum Annual Meeting 36 CHINESE ENTERPRISES IN INDIA 1. Sinopharm India 41. Sinosteel India 43 REVIVING THE SILK ROAD 1. China Sketches Out Priorities of "Belt and Road" Initiatives China Holds Maritime Silk Road Seminar China Kicks off Silk Road Tourism Year Chinese Dance Drama Promotes "Maritime Silk Road" at UN HQ Chronology of China's "Belt and Road" Initiatives 50 ECONOMIC AFFAIRS 1. Slowdown: A Blessing in Disguise? Get Smart: Chinese phone makers Double-Edged Sword 58 CULTURE & LIFE 1. The Vitality of a Traditional Art Traditional Opera Arts of Hunan Province 64. Swan Lake in Shandong 67 TIBET TODAY 1. Tibetan Buddhism College Celebrates Losar in Beijing The Life of Padma Chojor a Layman Chams Artist 70 FLIGHTS BETWEEN CHINA AND INDIA 74 BOOK REVIEW 76 CCTV NEWS YOUR LINK TO CHINA AND THE WORLD 77 CRI A BRIDGE OF FRIENDSHIP 78

4 4 China India Relations News From China February 2015 CHINA INDIA RELATIONS Chinese President Eyes Continued Correct Direction for China-India Ties Chinese President Xi Jinping (R) meets with Indian Foreign Minister Sushma Swaraj in Beijing capital of China Feb Xinhua Huang Jingwen) Beijing, Feb. 2 (Xinhua) Chinese President Xi Jinping on Monday called for a continued advancement of ties between China and India. Leaders of the two countries should maintain communication and exchanges and work together to ensure the correct direction for the development of the bilateral ties, Xi said as he met with India s External Affairs Minister Sushma Swaraj at the Great Hall of the People in Beijing. Xi attributed the stable development of the relationship mainly to the accumulating political trust and consensus on some major issues reached between the leaders of the two countries. Recalling his visit to India in September, Xi said his visit initiated a new phase of relationship and that the trend of friendly exchanges and cooperation between the two countries is very good. Xi asked Swaraj to convey his greetings to Indian President Pranab Mukherjee and Prime Minister Narendra Modi and said he welcome Prime Minister Modi to visit China at an early date. China and India should grasp the opportunity of the century to combine their development strategies, and push ahead with their strategic cooperation on railways and industrial parks to benefit the 2.5 billion people of the two countries as well as the global economic development, said the Chinese president. Xi said the two sides should patiently control

5 News From China February 2015 China India Relations 5 and manage disputes to prevent them from affecting the overall relationship. He called for sincerity and willingness to pursue a gradual and appropriate resolution of disputes. China stands ready to increase communication and coordination with India on global governance and other major international and regional issues to ensure the international order develops in a more fair and rational direction and to safeguard the interests of emerging markets and developing countries, Xi said. For her part, Swaraj conveyed the greetings of President Mukherjee and Prime Minister Modi to Xi, adding that Xi s visit last year elevated the India-China relationship to a new level. She said the consensus reached between the leaders were being implemented and India looks forward to more investment from China and more balanced trade between the two countries. The Indian side hopes for more dialogue on border issues, she added. Swaraj said Prime Minister Modi looked forward to visiting China and she believed this visit would bring important progress for the relationship. Indian PM Expresses Wish for Stronger Economic, Trade Ties with China Indian Prime Minister Narendra Modi (R) meets with Wang Jiarui, vice chairman of the National Committee of the Chinese People's Political Consultative Conference and head of the International Department of the Central Committee of the Communist Party of China, during their meeting in New Delhi, India, Feb. 13, 2015.(Xinhua/Zheng Huansong) New Delhi, Feb. 14 (Xinhua) Indian Prime Minister Narendra Modi on Friday expressed wish for stronger economic and trade ties between India and China. During a meeting here with Wang Jiarui, vice chairman of the National Committee of the Chinese People s Political Consultative Conference and head of the International Department of the CPC Central Committee, Modi said the visit by Chinese President Xi Jinping to

6 6 China India Relations News From China February 2015 Wang Jiarui(L), vice chairman of the National Committee of the Chinese People's Political Consultative Conference and head of the International Department of the Central Committee of the Communist Party of China, shakes hands with Indian Foreign Minister Sushma Swaraj during their meeting in New Delhi, India, Feb. 13, 2015.(Xinhua/Zheng Huansong) India last September was highly successful and that the friendship between the leaders of the two countries is a driving force behind bilateral cooperations. He said stronger cooperation in the fields of economy and trade is conducive for India and China to play a more important role in Asian and world affairs. Modi said the ruling Bharatiya Janata Party (BJP) of India is willing to carry out more exchanges with the Communist Party of China, especially in the fields of local governance, youth and women. Wang said the successful visit by President Xi to India last year has drawn a new blue print for China-India cooperation. The year 2015 marks the 65th anniversary of the establishment of diplomatic relations between China and India, and China is ready to build closer development partnership with India, to which the Communist Party of China is willing to make its contribution, he said. Chinese Leaders Congratulate India on Republic Day Beijing, Jan. 26 (Xinhua) Chinese leaders on Monday sent congratulatory messages to their Indian counterparts on the 66th Republic Day of the Southern Asian nation, pledging closer ties between the two neighbors. In his message to Indian President Pranab Mukherjee, Chinese President Xi Jinping said both China and India, as two ancient civilizations, are pursuing a great dream of national rejuvenation. China is delighted with India s achievements in its development, he added. Noting this year marks the 65th anniversary of the establishment of diplomatic relations between the two countries, Xi said China is willing to make concerted efforts with India to lift their strategic cooperative partnership oriented to

7 News From China February 2015 China India Relations 7 peace and prosperity to a higher level. In a message to Indian Prime Minister Narendra Modi, Chinese Premier Li Keqiang said that in recent years, China and India have kept a stronger momentum in joining hands for cooperation and seeking common development. China is ready to work with India to deepen their mutually beneficial cooperation in various fields and build a closer partnership of development, he said. China India Express Willingness to Deepen and Broaden Bilateral Cooperation Chinese State Councilor Yang Jiechi (L) meets with Indian National Security Advisor Ajit Kumar Doval on the sidelines of the 51st Munich Security Conference, in Munich Germany on Feb Xinhua Luo Huanhuan Munich, Feb. 7 (Xinhua) China and India are willing to deepen bilateral cooperation and collaborate in protecting common interests, said top officials from the two countries in Munich on Saturday. The positive interaction between China and India is increasing and their momentum of cooperation is improving, said Chinese State Councilor Yang Jiechi when meeting Indian National Security Advisor Ajit Kumar Doval on the sidelines of the ongoing 51th Munich Security Conference. Both sides should seize the opportunities, remove the disturbances, and strengthen the positive trend of China-India relations, Yang said. He added that China and India should increase high-level exchanges, improve political mutual trust and consolidate the foundation of bilateral relations. Cooperation, including those in culture, railway and industrial parks construction, should be broadened, Yang said. The official proposed to respect and look after each other s concerns, to push forward

8 8 China India Relations News From China February 2015 negotiations over boundaries, and to effectively maintain the peace and safety of border areas. Yang also said China and India should enhance cooperation in international affairs, promoting multipolarism and protecting common interests of developing countries. Doval, for his part, said the bilateral relations between India and China have improved since the new Indian government was formed. As the two fastest growing developing countries in the world and Asian fellows, India and China face a number of mutually beneficial cooperation opportunities. India is willing to enhance cooperation with China in various areas, to jointly boost economic sustainable growth, as well as to maintain peace and stability of the region, Doval said, adding that his country expected to intensify coordination with China and keep pushing forward the process of negotiations over boundaries. Chinese, Indian FMs Hold Talks Chinese Foreign Minister Wang Yi (R) meets with his Indian counterpart Sushma Swaraj in Beijing China Feb Xinhua Huang Jingwen Beijing, Feb. 1 (Xinhua) Chinese Foreign Minister Wang Yi and his Indian counterpart Sushma Swaraj held talks on bilateral ties in Beijing on Sunday. As two large developing countries, China and India pursue an independent foreign policy of peace, and both countries attach priority to developing relations with their neighbouring countries, Wang said, noting that China cherishes the strategic and cooperative partnership with India. Last September, Chinese President Xi Jinping visited India, and leaders of both countries set a goal for building closer China-India development partnership, Wang said. China is willing to make joint efforts with India to implement the consensus reached by the leaders of the two countries and to be good

9 News From China February 2015 China India Relations 9 neighbours and partners, Wang said, adding that two countries should be good friends who are working together to promote democratization of international relations and to safeguard the overall interests of developing countries. Wang made some suggestions on bilateral ties in He said China and India should continue to keep high-level visits and strategic communication and China welcomes Indian Prime Minister Narendra Modi to visit China this year. Wang said China and India should focus on promoting pragmatic cooperation in the fields of railway, industrial park, smart city, tourism, education, culture and new pilgrimage route. Wang said China is willing to make joint efforts with India to promote the process of negotiations over border issue so as to maintain peace in border area. Xi and Modi have met with each other three times since last year, Swaraj said, adding that it shows a high-level development of bilateral ties. She hopes that her current visit to China will show positive signals of India-China friendly and cooperative relationship. Swaraj is paying an official visit to China from Saturday to Tuesday as a guest of Wang Yi, and it is her first visit to China since taking office. As the second largest economy, China is the largest neighbouring country of India, Swaraj said, noting that India and China have broad common interests and both countries can benefit from each other s development. Swaraj said that India attaches great importance to bilateral ties and Modi is willing to pay a visit to China at an early date within this year. India would like to make joint efforts with China to strengthen understanding and mutual trust, properly handle the differences, advance comprehensive cooperation and sound coordination in international and regional affairs, Swaraj said. China India to Boost Tourism Cooperation Chinese Vice Premier Wang Yang (R front) and Indian External Affairs Minister Sushma Swaraj (L front) attend the launching ceremony of "Visit India Year 2015" in Beijing capital of China Feb Indian Prime Minister Narendra Modi also sent his greetings through a video message

10 10 China India Relations News From China February 2015 Beijing Feb. 2 (Xinhua) China and India, the world s two most populous countries, agreed to boost tourism cooperation to strengthen peopleto-people ties. We are confident that the number of China- India mutual visits will exceed 1 million in 2016, said Li Jinzao, head of China National Tourism Administration (NTA), at the launch ceremony for Visit India Year 2015 here on Monday. Indian citizens traveling to China hit 645,600 while 124,600 Chinese citizens chose India as the first stop of their overseas trips in the 11 months of Overseas trips by Chinese people surpassed 100 million last year. Compared with the total population of 2.5 billion of the two countries, 1 million is very small, Li said, stressing the space for cooperation on tourism is very huge. During Chinese President Xi Jinping s India tour in September, Xi and Indian Prime Minister Narendra Modi decided to launch Visit India Year in China in 2015 and Visit China Year in India in It is an important opportunity to boost tourism cooperation, Li Jinzao said. Attending the launch ceremony monday, Chinese Vice Premier Wang Yang called on the two sides to earnestly implement the consensus of the two leaders. Indian Prime Minister Narendra Modi sent a video message to the launch ceremony and Indian External Affairs Minister Sushma Swaraj attended the ceremony. According to tourism authorities, the two sides will work together to simplify visa procedures, increase direct flights and improve service levels. The two sides will also develop new travel packages and routes as well as strengthen communication and coordination to safeguard safety of tourists. Chinese monk Xuan Zang s visit to India in the seventh century is a legend loved by hundreds of millions of ordinary Chinese people, said Yu Ningning, President of China International Travel Service. She believed that the two countries will jointly write new friendship stories in the age of globalization. Joint Communique of Russian, Indian, Chinese Foreign Ministers' Meeting

11 News From China February 2015 China India Relations 11 Beijing, Feb. 2 (Xinhua) Russian, Indian and Chinese foreign ministers issued a joint communique Monday after wrapping up their 13th meeting in Beijing. The following is the full text of the document: Joint Communique of the 13th Meeting of the Foreign Ministers of the Russian Federation, the Republic of India and the People s Republic of China 1. The Foreign Ministers of the Russian Federation, the Republic of India and the People s Republic of China held their 13th Meeting in Beijing, China, on 2 February The Ministers agreed that Russia, India and China (RIC), as countries with important influence at international and regional levels and emerging market economies, need to further strengthen coordination on global issues and practical cooperation, in the spirit of openness, solidarity, mutual understanding and trust. They emphasized that cooperation between their countries is conducive to maintaining international and regional peace and stability and promoting global economic growth and prosperity. 3. The Ministers reviewed progress in their practical cooperation since the New Delhi meeting on 10 November They agreed that Russia, India and China should enhance their cooperation in think-tanks, business, agriculture, disaster mitigation and relief, medical services and public health. The Ministers explored potential for cooperation in oil and natural gas production and transportation, as well as in other fields of energy, high tech, environmental protection and connectivity. They agreed to promote parliamentary, media, cultural and youth exchanges including visits of young diplomats. They expressed satisfaction with the outcome of the 13th Trilateral Academic Conference held in Moscow in July 2014, and welcomed the 14th Trilateral Academic Conference to be held in China in May The Ministers noted the significant and rapid changes underway in the world and underlined that the international community should remain committed to democratization of international relations and multi-polarity. They stressed the importance of pursuing a new type of international relations featuring win-win cooperation. Russia, India and China are determined to build a more just, fair and stable international political and economic order in accordance with the purposes and principles of the UN Charter, the Five Principles of Peaceful Co- Existence and other basic norms of international law. The Ministers stressed the need to respect diversity of civilizations and the independent choice of development path and social system by the people of all countries, support peaceful settlement of disputes through political and diplomatic means. They expressed their support to the idea of adopting a UN General Assembly resolution on the inadmissibility of intervention and interference in the internal affairs of states. They opposed forced regime change in any country from the outside, or imposition of unilateral sanctions based on domestic laws. 5. The Ministers recognized that the year 2015 marks the 70th anniversary of the founding of the United Nations and the victory in the Second World War, and paid tribute to all those who fought against Fascism and for freedom. Russia, India and China affirmed the need to solemnly commemorate those historic moments of great significance in human history and their commitment to safeguarding a fair and equitable international order based on the purposes and principles of the UN Charter, preventing war and conflict and promoting the progress and development of mankind. The Ministers welcomed the inclusion of the item of Seventieth anniversary of the end of the Second World War in the agenda of the 69th session of the UN General Assembly, and supported the United Nations and member states to initiate and organize commemorative events. 6. The Ministers reiterated their strong commitment to the United Nations as a universal multilateral organization entrusted with the mandate of helping the world community maintain international peace and security, advance common development and promote and protect human rights. The United Nations enjoys universal membership and is at the very center of global governance and multilateralism. The

12 12 China India Relations News From China February 2015 Ministers recalled the 2005 World Summit Outcome Document. They reaffirmed the need for a comprehensive reform of the United Nations, including its Security Council, with a view to making it more representative and efficient, so that it could better respond to global challenges. Foreign Ministers of China and Russia reiterated the importance they attached to the status of India in international affairs and supported its aspiration to play a greater role in the United Nations. 7. The Ministers reiterated their commitment to strengthening coordination and cooperation in a joint effort to maintain lasting peace and stability in the Asia-Pacific region, welcomed the 4th Summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) and the Shanghai Declaration adopted at the Summit. The Ministers pledged to work together to seek common, comprehensive, cooperative and sustainable security. They called for the development of an open, inclusive, indivisible and t ra n s p a re n t s e c u r i t y a n d c o o p e ra t i o n architecture in the region on the basis of universally recognized principles of international law. In this regard, they welcomed the continued discussion on regional security architecture in the Asia-Pacific region under the framework of the East Asia Summit. 8. The Ministers further underlined the necessity to strengthen coordination and cooperation in various regional forums and organizations such as the ASEAN Regional Forum (ARF), ASEAN Defense Ministers Meeting Plus (ADMM-Plus), Asia-Europe Meeting (ASEM) and Asia Cooperation Dialogue (ACD), so as to contribute to maintaining regional peace and stability and to promote regional development and prosperity. In this connection, they agreed to establish a trilateral Russia-India-China consultation mechanism on Asia-Pacific affairs, with the first meeting to be held at an early date. 9. Russia, India and China attached special importance to their cooperation within the Shanghai Cooperation Organization (SCO), regarding it as one of the key instruments in promoting multilateral political, security, economic and humanitarian interaction in the region. China and India shared the plans of Russia s Chairmanship in the SCO in a n d w o u l d s u p p o r t a n d p a r t i c i p a t e comprehensively in preparing the SCO Summit Meeting in Ufa in July China and Russia welcomed India s application for full membership

13 News From China February 2015 China India Relations 13 of SCO and supported India to join the SCO after completing all necessary negotiations and legal processes. 10. The Ministers reiterated that terrorism in all its forms and manifestations committed by whomever, wherever, and for whatever purposes, is a threat to international peace and security, a grave violation of human rights and a crime against humanity. The Ministers affirmed the need for all countries to join efforts in combating terrorism under the auspices of the United Nations, in accordance with the UN Charter and principles and norms of international law and for the robust implementation of relevant UN Security Council resolutions and the Global Counter-Terrorism Strategy. They called for early conclusion of negotiations on the Comprehensive Convention on International Terrorism. The Ministers reiterated that there can be no ideological, religious, political, racial, ethnic, or any other justification for acts of terrorism. They underlined the need to bring to justice perpetrators, organizers, financiers and sponsors of terrorist acts. Highly alarmed by the new trends in international terrorist acts, the Ministers emphasized the need to step up information gathering and sharing, prevent the use of the I n t e r n e t a n d o t h e r i n f o r m a t i o n a n d communication technologies (ICTs) for the purposes of recruitment and incitement to commit terrorist acts, as well as for the financing, planning and preparation of their activities, block the channels of terrorist movement and financing of terrorism, and promote deradicalization, while respecting international law. 11. The Ministers were of the view that the international community should make joint efforts to counter the threat of the u s e o f i n f o r m a t i o n a n d communication technologies for military, political, criminal and terrorist purposes through international exchanges and cooperation on the basis of mutual respect, equality and mutual benefit, and build a peaceful, Russia, India and China are determined to build a more just, fair and stable international political and e c o n o m i c o r d e r i n accordance with the purposes and principles of the UN Charter, the Five Principles of Peaceful Co- Existence and other basic norms of international law. secure, open and cooperative information space. They underscored that sovereignty of a state over the Internet and state conduct of ICT-related activities should be respected. They expressed their support for formulation of universally recognized international rules of responsible state behavior in information space within the UN framework and advancement of the reform of the international Internet governance mechanism as enshrined in the Tunis Agenda. In this regard, the Ministers reaffirmed common views and approaches set forth in the 6th BRICS - Fortaleza Declaration (15 July 2014 ). 12. The Ministers noted that preventing arms race in outer space is in the interests of maintaining international peace and security and for the promotion and strengthening of international cooperation in the exploration and the use of outer space for peaceful purposes, highlighting the prevention of placement of weapons of any kind in outer space as one of its main elements. The Ministers also noted the importance of establishing and developing a more focused dialogue and closer cooperative relationship among representatives of Russia, India and China with a view to advance the work of the Scientific and Technical Subcommittee of the UN Committee on the Peaceful Use of Outer Space (COPUOS). 13. The Ministers supported the political transition in Afghanistan through the presidential elections and security transition from International Security Assistance Force (ISAF) to the Afghan National Security Forces (ANSF). The security transition should be accompanied by adequate measures for increasing the ANSF capacity so that the ANSF should be capable to provide security for all the country and population of Afghanistan. The Ministers affirmed their support for broad a n d i n c l u s i v e p e a c e a n d reconciliation in Afghanistan that is Afghan-led and Afghan-owned, as well as to help Afghanistan s integration into the region

14 14 China India Relations News From China February 2015 through its expanded trade and transport networks and regional connectivity. The Ministers stressed that it is important for the international community to remain engaged in Afghanistan and fulfill its long-term commitments on civilian and security assistance. They supported the core coordinating role of the United Nations in promoting peace and stability in Afghanistan. The Ministers highly valued the positive results of the Fourth Ministerial Meeting of the Istanbul Process in Beijing, which contributed to strengthen regional cooperation and facilitate peace, rehabilitation and economic reconstruction in Afghanistan. Russia, India and C h i n a s t r e s s e d t h e i r c o m m i t m e n t t o implementing the Beijing Declaration for security and prosperity in Afghanistan and the region. 14. The Ministers affirmed their support for efforts to seek a comprehensive and long-term solution to the Iranian nuclear issue through political and d i p l o m a t i c m e a n s. T h e y welcomed the extension of negotiations between P5+1 and Iran, and hoped that the two sides intensify diplomatic efforts with a view to reaching a comprehensive agreement at an early date. The Ministers encouraged Iran and the IAEA to enhance cooperation to resolve all the outstanding issues. The Ministers stressed that once the IAEA confirms the exclusively peaceful nature of Iran s nuclear programme by means of applying stringent monitoring and resolving all past and present issues of concern, Iran will fully enjoy all the rights to peaceful uses of nuclear energy, including uranium enrichment under strict IAEA safeguards and consistent with its international obligations. 15. The Ministers discussed the developments of the Israel-Palestine conflict. They stressed that its further deterioration may have a negative impact on the prospects of both the Peace Process and Middle East affairs on the whole. They urged Israel and Palestine to exercise restraint and take effective measures to avoid further escalation of tensions. The Ministers supported the resolution Russia, India and China s t r e s s e d t h e i r c o m m i t m e n t t o i m p l e m e n t i n g t h e Beijing Declaration for security and prosperity in Afghanistan and the region. of the Israel-Palestine conflict based on the relevant United Nations resolutions, the principle of land for peace, the Arab Peace Initiative, with the purpose of establishing a sovereign, independent, viable and united State of Palestine, with East Jerusalem as its capital, living within secure and recognized borders, side by side, at peace with Israel. They appealed to the international community, particularly the Middle East Quartet, to continue its efforts aimed at achieving this end. The Ministers supported the UN Security Council in playing its due role in solving the Israel-Palestine conflict. The Ministers urged international community to provide continued assistance and support for alleviation of humanitarian situation in Palestine. 16. The Ministers discussed the latest developments in Syria. They reiterated that there is no military solution to the Syrian crisis and urged all parties to abjure violence and resume peace negotiations based on Geneva Communique of June The Ministers called on the Syrian government and opposition factions to resume the Geneva process as soon as possible, stick to the approach of political settlement and draw on the useful experience of others to find a middle way that conforms to Syria s national conditions and accommodates the interests of all parties, and start the national reconciliation process at an early date. The Ministers supported the mediation efforts by the UN Secretary-General and his special envoy to secure incremental freeze zones and to allow humanitarian aid to civilians. They highly valued the efforts by Russia to convene the first meeting of inter-syrian consultations between representatives of the Syrian Government and opposition groups in January The Ministers welcomed the important achievements made in the elimination of Syria s chemical weapons, and complimented the Organizations for the Prohibition of Chemical Weapons (OPCW) in its efforts towards elimination and destruction of chemical weapons in Syria. They expressed

15 News From China February 2015 China India Relations 15 support for the efforts of the Syrian Government to combat terrorism. They called on all parties in Syria to implement relevant resolutions of the UN Security Council, and fully cooperate with the United Nations and relevant international organizations in their humanitarian efforts. They called on the international community to abide by the guiding principles of the United Nations on humanitarian assistance. 17. The Ministers expressed deep concern over the ongoing turmoil in Iraq and its spillover effects, and emphasized their respect for the independence, sovereignty and territorial integrity of Iraq, and their support for the efforts of the Iraqi government to uphold domestic stability and combat terrorism. They hoped that all parties in Iraq enhance unity and reconciliation so as to swiftly restore national stability and social order. The Ministers urged all parties concerned to refrain from interference, which could further aggravate the situation. They called on all parties to support the Iraqi government and people in their efforts to build a stable, inclusive and united Iraq taking into account the interests of all segments of the Iraqi society. The Ministers urged the international community to provide continued assistance and humanitarian support for Iraqi refugees and internally displaced people. 18. The Ministers expressed deep concern about the current crisis in Ukraine, and called on all parties in the inter-ukraine conflict to exercise restraint and fully implement the Minsk Protocol, engage in comprehensive dialogue and pursue a peaceful resolution of the crisis through political negotiations. The Ministers stressed that an independent, objective, fair and transparent international investigation should be carried out for the crash of Malaysia Airlines Flight MH17, and parties concerned should engage in cooperation within the framework of Resolution 2166 of the UN Security Council. 19. The Ministers expressed their support for improved global economic governance to ensure sound and stable growth of the world economy. They called for immediate reform of the international financial system to increase the voice and representation of emerging markets and developing countries, with a focus on the implementation of the 2010 IMF Quota and Governance Reform by the end of this year. They stressed the need for international financial institutions to provide more resources to promote development. The Ministers reiterated their commitments to enhancing cooperation within the framework of G20, and called on all G20 members to strengthen macroeconomic policy coordination, reject protectionism as well as all forms of unilateral measures of economic pressure taken without relevant decisions of the UN Security Council, safeguard the multilateral trading system centered around the WTO, build an open world economy, and play an important role in global economic governance. Russia and India welcome and support the efforts of China to host the 2016 G20 Summit. The Ministers reiterate their readiness to contribute to its successful results. 20. The Ministers reaffirmed commitment to the World Trade Organization (WTO) as the preeminent global forum for trade, including negotiating and implementing trade rules, settling trade disputes and supporting development through the integration of developing countries into the global trading system. In this regard, they reaffirmed commitment to the Doha Development Agenda as well as to the regular work of the WTO. The Ministers expressed their support for the forthcoming WTO 10th Ministerial Conference to be held in Nairobi, Kenya in December They underlined the importance of tangible progress at the Conference toward a successful conclusion of the WTO Doha Round. 21. The Ministers noted that the emerging market economies are a significant driving force for the world economic growth and have played an important role in promoting the world economic recovery. The Ministers fully recognized the significance of the UN Summit for the adoption of the Post-2015 Development Agenda to be held in September They called on the international community to accelerate their efforts towards attainment of the MDGs and formulate the Post Development Agenda under the principles of equity, democracy, transparency, member

16 16 China India Relations News From China February 2015 states driven and consensus. The Post-2015 Development Agenda, while focusing on poverty eradication and promotion of common development, should attach great importance to addressing the inequality and disparity between the North and the South and build a renewed global development partnership of win-win cooperation. The Ministers pledged to strengthen coordination and cooperation in the intergovernmental negotiating process. 22. The Ministers called on the international community to actively implement the follow-up process of the 2012 United Nations Conference on Sustainable Development in accordance with the principle of common but differentiated responsibilities. They welcomed the adoption by the UN General Assembly of the proposal of the O p e n Wo r k i n g G r o u p o n S u s t a i n a b l e Development Goals as the main basis for integrating the SDGs into the Post-2015 Development Agenda. They held the view that in promoting sustainable development, the international community should fully respect the national conditions and development paths of different countries, and focus on helping developing countries solve the problems of financing, technology and capacity building and achieve common development. 23. The Ministers reiterated the importance attached by the three countries to the issue of climate change, and expressed their readiness to work together to further strengthen international cooperation to address climate change and its adverse effect. The Ministers welcomed the adoption of the Lima Call for Climate Action by the 20th United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP20). They expressed confidence that the 21st session of UNFCCC to be held in 2015 will be able to adopt a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all parties, in accordance with the principles of equity, common but differentiated responsibilities and respective capabilities. 24. The Ministers noted that collectively BRICS economies have consolidated their position as the main engines for sustaining the pace of the international economy as it recovers from the recent economic and financial global crisis. Emerging market economies and developing countries continue to contribute significantly to global growth and will do so in the years to come. 25. The Ministers welcomed the successful conclusion of the 6th BRICS Summit, particularly the signing of the Agreement on the New Development Bank and the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement. They agreed to build a closer economic partnership in keeping with the BRICS spirit of openness, inclusiveness and mutually beneficial cooperation to facilitate the market i n t e r - l i n k a g e s, f i n a n c i a l i n t e g r a t i o n, infrastructure connectivity as well as people-topeople contacts, cultural and educational exchanges among BRICS countries. The Ministers welcomed the decision taken by the Fortaleza Summit on opening negotiations on the Draft Strategy of Multilateral Economic Cooperation and Framework of BRICS Closer Economic Partnership. China and India expressed their full support to Russia for a successful 7th summit of the BRICS leaders in July The Ministers highly valued the fruitful achievements of the 22nd APEC Economic Leaders Meeting, including launching the process of Free Trade Area of the Asia-Pacific (FTAAP), promoting innovative development, economic reform and growth and enhancing connectivity of the Asia-Pacific. They commended China s efforts in making the conference a full success and deemed that the Meeting is of great significance in achieving long-term development and common p ro s p e r i t y o f t h e A s i a - Pa c i f i c re g i o n. Acknowledging India s important role in driving global economic growth, and supporting the openness of APEC, China and Russia would welcome India s participation in APEC. 27. The Ministers stressed the importance of regional connectivities, which will inject strong impetus in enhancing political mutual trust, economic cooperation, and promoting cultural

17 News From China February 2015 China India Relations 17 and people-to-people exchanges. In this context, they discussed initiatives, including China s initiatives of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. They welcomed synergy of various initiatives to improve regional connectivity in Asia. They emphasized the necessity to explore all connectivity options for greater economic integration of the common region and stressed that the three countries will closely coordinate and work together to ensure that various initiatives bear fruit and benefit all countries and people in the region. 28. The Ministers expressed their deep concern over the spread of the Ebola virus in some African countries and the damage it caused to the health and safety of the local people. They decided to continue to work hand in hand in helping the African countries curb and prevent the spread of the Ebola. They supported the leading and coordinating role of the United Nations and the World Health Organization in combating the disease. The M i n i s t e r s c a l l e d o n t h e i n t e r n a t i o n a l community, with a long-term prospective to help African countries strengthen their public health system and capacity building. 29. The Foreign Minister of the Russian Federation and the External Affairs Minister of the Republic of India extended their warm appreciation and sincere gratitude to the Foreign Minister of the People s Republic of China for hosting and making excellent arrangements for the meeting in Beijing. 30. The Ministers decided to hold the next trilateral meeting in Russia in the second half of Media to Play More Positive Role in Boosting China-India Ties Mr. Jiang Jianguo, Director of the State Council Information Office (SCIO) of China addresses the opening ceremony of the nd China India Media Forum

18 18 China India Relations News From China February 2015 Beijing, Feb.1 (Xinhua) Chinese and Indian media should expand new channels of communication and collaboration to encourage trust and reduce suspicions, a Chinese official said at the 2nd China-India Media Forum held in Beijing on Sunday. Jiang Jianguo, director of the State Council Information Office (SCIO) of China, said at the opening ceremony of the forum that Indian and Chinese media organizations should increase the exchanges of journalists, articles, and story ideas as well as carrying out more joint interview and opening more youth exchange programs for media talents. Media organizations of the two countries should not simply appeal to nationalist sentiment or hype those eye-catching negative topics. Jiang said. Instead, they should keep in mind the mainstream direction of China-India ties, which is characterized by friendly cooperation, accurate and objective reporting while reducing misunderstandings and suspicions. China-India relations have seen overall development in recent years. In addition to growing economic ties in collaboration of railway projects and industrial parks, considerable progress was also made in establishing and expanding defence contacts and exchanges, including across the border, said Sushma Swaraj, Indian External Affairs Minister, during her speech at the opening ceremony of forum. Swaraj said she expect to strengthen peopleto-people contacts, including contacts between scholars and journalists of the two countries, as a result of the increasingly closer link between India and China. This year marks the Visit India Year in China while the year of 2016 will be the Visit China Year in India. More tourists from the two countries are expected to visit each other. This is the most appropriate opportunity to boost our ties, Swaraj said. She also proposed a six-point ABCDEF template to build bilateral relationship and realize Ms. Sushma Swaraj, Indian External Affairs Minister, makes a speech at the opening ceremony of the 2nd China-India Media Forum.

19 News From China February 2015 China India Relations 19 the dream of an Asian Century, namely A- Action-oriented approach, B-Broad-base bilateral engagement, C-Convergence on common regional and global interests, D-Develop new areas of cooperation, E-Expand strategic communication, and F-Fulfill common aspiration to usher Asian Century. The forum, jointly hosted by the SCIO of China and the Ministry of External Affairs (MEA) of India, attracted more than 120 participants, including delegates from some 40 leading Chinese and Indian media organizations as well as scholars and government officials from both countries. Delegates discussed the role media plays in promoting bilateral strategic partnership, boosting economic cooperation, as well as the potential of cooperation in new media. They agreed that media in the two countries bears social and historical responsibilities. Thus, instead of hyping border conflicts and zero-sum game between two emerging economies, news organizations in the two countries should enhance direct communication and mutual understanding so as to promote win-win cooperation. As a platform to encourage face-to-face dialogue between media organizations of the two countries and build understanding of each others societies, the first forum was held in New Delhi, India, in September Impression with and Reflection on China-India Relations Chinese Ambassador to India Mr Le Yucheng s Speech in Jawaharlal Nehru University 05/02/2015

20 20 China India Relations News From China February 2015 Respectable Mr. Sopori, Vice Chancellor of Jawaharlal Nehru University, Ladies, Gentlemen and Friends! Namaste! I am very delighted to meet with you at renowned Jawaharlal Nehru University. I have been in India for more than 4 months. It is not a long time, but I had extensive contacts with friends from all walks of life in India. Besides Delhi, I visited Ahmedabad in Gujarat, Mumbai in Maharashtra and Jaipur in Rajasthan. By watching Indian TV and reading Indian newspaper everyday, I have integrated myself into Indian life and begin to enjoy it. During this period, many vivid and touching stories inspire me to think about India and China-India relations, which I would like to share with you on this occasion. 1. I am a very lucky ambassador. Just one week after assuming my new post in India, I had the privilege of welcoming President Xi Jinping to pay state visit to India last September. It has been 8 years since President of China visited India last time. President Xi was also the first Head of State of a major country whom the new Government of India received at that time. This visit put new impetus into the all-round cooperation between China and India, and pushed the China-India Strategic and Cooperative Partnership to a new height. As a member of the delegation, I participated in all engagements of the visit and witnessed the close interaction between the two leaders, which deeply impressed me. The chemistry was apparent as Prime Minister Modi in a rare gesture welcomed President Xi at Gujarat, his home state. In Gujarat, the two leaders wore Indian traditional Khadi jackets, visited Sabarmati Ashram, strolled along the Riverfront Park, swung on the typical Gujarati Jhoola, enjoyed the folk performances and shared birthday cake in an amicable atmosphere. One of many impressive moments was vividly captured by local and world media when President Xi tried his hands on a legendry Charkha with Prime Minister Modi by his side at Sabarmati Ashram. It has become the symbol of their mutual bonding, and the resolve that the two neighbors will pick up the threads of our ties, and join hands in weaving them into a beautiful picture of shared dream of friendship and development. President Xi Jinping and Madam Peng Liyuan met and mingled with the people of India. Upon their arrival in Gujarat, hundreds of thousands of local residents lined the streets where the motorcade passed. Their warm smiles, applauses and greetings deeply touched President Xi, every member of the Chinese delegation and 1.3 billion Chinese people. During her visit to the Tagore International School, Madam Peng sang Chinese song together with the local students. One of the boys who were kissed by Madam Peng on the cheek became well-known and received numerous interviews after that. This visit opened a new chapter of the China- India relations, sent to the world a positive signal that China and India, two major neighboring countries, would be sincere to and trust in each other and join hands in cooperation. I am lucky to experience and witness this historical event. I am fully confident about the future of our bilateral relations. Currently, relevant authorities of our two countries are proactively implementing the outcomes of this visit. The year of 2015 marks the 65th Anniversary of establishment of the China- India diplomatic relations. It is also the Visit India Year in China. Prime Minister Modi will pay an official visit to China this year. This visit will be a significant event and will inject new vigor to the development of China-India relations. 2. The friendship between China and India is not only reflected by the close interaction between our leaders and at the official level, but also flourishes in people-to-people exchanges. Let me share with you a story of blood transmission between Chinese people and Indian people reported by Chinese newspapers and websites. At the end of last year, a little girl in Zhejiang Province in eastern China needed blood transmission. More than 100 Indian merchants there volunteered to donate blood for her. And in 2013, more than 80 Chinese people in Zhejiang Province were actively involved in a voluntary blood donation campaign initiated by the local Chinese authority to save an Indian patient in emergency care. This kind of reciprocal sacrifice among the common folks of our two countries serves as the best example of

21 News From China February 2015 China India Relations 21 friendship between China and India. From a historical perspective, China and India are two major neighbors with the longest mutual contact and deepest mutual influence. The story of Xuan Zang, an eminent Chinese buddhist monk who came to India to learn Buddhist scriptures in the 7th century is a legendary name in China and India. Based on his epic adventures, a classic literature entitled Journey to the West is well-read in China. Another well-known and muchrespected name in China is Doctor Kotnis, a doctor of the five-member Indian Medical Mission to China. He sacrificed his life by supporting the Chinese people in the War of Resistance against Japan. To enhance the traditional friendship between our two peoples, President Xi announced during his visit that China would open a new route for the Yatra through Nathu La Pass. Elaborate preparations have been undertaken by the relevant authorities of China. The two sides have reached preliminary consensus that the new route will be opened this summer. In a few months, the Indian pilgrimage will be blessed with more convenient transportation to Mount Kailash and Manasarovar. This is another great deed to facilitate the friendly exchanges between our two peoples. The current number of visitors between China and India is only 800,000, a very small number compared with our combined population of 2.5 billion. Huge potential remains to be tapped. Visitors between China and other foreign countries of much less population than India have already reached one million and even ten million. I have visited a lot of places of interest in many countries. All of them are full of Chinese tourists. A lot of countries are working hard to attract Chinese tourists by providing Chinese-language tour guides, setting up Mandarin marks and accepting Chinese yuan at their shops. Last November, President Obama announced to provide multiple-entry visa with maximum validity of 10 years for Chinese tourists and businessmen during his visit to China. Chinese tourists were more and more welcomed by other countries. Yet when I visited Mumbai and Aurangabad days ago, I felt regretted to have seen only a few Chinese tourists there. This year is the Visit India Year in China and next year will be Visit Chinese Year in India. We are facing unprecedented opportunities in the bilateral tourism cooperation. I hope and believe that with joint efforts by the two sides, the number of visitors between our two countries will remarkably grow. 3. Talking about the China-India cooperation, I would like to share the story of Jack Ma with you. Mr. Ma is the main founder of Alibaba, newly-listed at the New York Stock Exchange. During his visit to India last year, he mentioned in an interview that A l i b a b a h a s h a d b u s i n e s s - to-business relationship with Indian vendors for 15 years. 400,000 Chinese customers are buying tea and spices from India through Alibaba and around 1.3 million Indian vendors are doing business via Alibaba platforms. This story reflects that the companies of our two countries have a solid business foundation and the development of Chinese companies also provides the opportunity for the Indian businessmen. Huawei, a Chinese telecom company, is a living example of Chinese investment to India. Huawei, one of Global 500 companies with business covering more than 170 countries, has already created more than 5,000 jobs in India at present. Its R&D Center with plus posts will operate next month in Bangalore. The story of Huawei tells us that Chinese c o m p a n i e s b ro u ght g re a t v i t a l i t y a n d opportunities to Indian economy and China-India economic and commercial cooperation has great potential. In 2014, China-India bilateral trade registered another breakthrough of US$ 70 billion with growth of Chinese investment to India. President Xi announced during his visit to India that the Chinese side would endeavor to realize an investment of US$20 billion in India in the next 5 years in various industrial and infrastructure development projects. China now is building two industrial parks in Gujarat and Maharashtra, including a US$1.8 billion investment plan to power equipments. It is progressing smoothly regarding railway cooperation between our two countries in increasing speed on the existing railway lines,

22 22 China India Relations News From China February 2015 h e a v y - h a u l t r a n s p o r t a t i o n t r a i n i n g, redevelopment of existing railway stations and establishment of a railway university in India. The first batch of the high-level Indian officials has been to China to receive training in heavy haul. China and India will consider jointly building a high-speed railway from Delhi to Chennai in the future and the feasibility study has been initiated. When finished, it will be the second longest highspeed railway after the Beijing-Guangzhou highspeed railway. By then, the travel time from Delhi to Chennai will be cut from 28 hours to 7-8 hours. It means that passengers will be able to have breakfast in Delhi and drink high tea in Chennai on the same afternoon. The new initiatives of the Government of India such as Make in India, Digital India and Smart City have inspired great enthusiasm of Chinese companies to invest in India. With more and more Chinese companies visiting India to make market research, the Chinese embassy has received lots of consulting phone calls from Chinese companies every day. We hope the companies of our two countries could seize the opportunities and promote economic and commercial cooperation to a new level. 4. Recently, I have noticed that there were some comments on One Belt and One Road when reading Indian newspapers. I would like to take some time to brief on it. One Belt and One Road was initiated by President Xi during his visit to Kazakhstan in September and to Indonesia in October At that time, I was Ambassador of China to Kazakhstan and witnessed that moment. The strategic concept of One Belt and One Road aims to provide wings for the soaring of Asia and to provide an open and inclusive platform for the development and cooperation of countries along the belt and the road. It aims to connect the Asia- Pacific economic circle and European economic circle through policy coordination, road connection, unimpeded trade, monetary circulation and mutual understanding between peoples, to realize mutually beneficial win-win cooperation and create benefits for peoples along the belt and the road. In this sense, the One Belt and One Road is a magnificent project which contributes to contemporary times and brings benefits for future centuries. This strategic concept has been well acclaimed and warmly welcomed by the international community and currently has comes to a stage for pragmatic cooperation with positive response and participation of more than 50 countries along the belt and the road. In order to provide financial support for the One Belt and One Road strategy, China has taken the initiative in establishing the Asian Infrastructure Investment Bank (AIIB) and announced to contribute US$40 billion to set up a Silk Road Fund. As an important country along the belt and the road, India is an important member of AIIB and New Development Bank of BRICS countries. We believe that the One Belt and One Road will definitely create more opportunities for India s development. The BCIM Economic Corridor is an important part of the One Belt and One Road. We welcome India to actively participate in building this Economic Corridor and promote the One Belt and One Road cooperation, which will benefit our two peoples and the region at large. 5. In the past four month, I had a strong feeling that the vigor of India s economy and social development are being reactivated in an all-round manner since Prime Minister Modi introduced the new policy. What I see now, is a blooming, young and vigorous country. A few days ago, my colleagues in the Embassy told me that they were very surprised to find the efficiency of the Delhi Municipal Department has drastically improved. Usually, it took half month or even one month to obtain an approval to install a new LNG pipeline in our Embassy. Now it takes only 3 days! And some friends in the Ministry of External Affairs and Ministry of Commerce and Industry told me now they have to punch in before work and often work overtime. Even in New Year s Day there was no break. Work is hard, but they are more confident and energetic. They are supporters and fans of Prime Minister Modi, and they are greatly influenced and encouraged by Modi s style and speed. During my visit to Maharashtra days ago, Chief Minister Fadnavis told me that Maharashtra is

23 News From China February 2015 China India Relations 23 making efforts to create a more pro-business environment for foreign companies by providing them with optional-menu and single-window services to cut administrative clearance from 2-3 years to 2-3 months. Meanwhile, I also find that the Swachh Bharat Abhiyan has made obvious difference in India. To be frank, some places in India did impress Chinese people with dirtiness, mess and disorder in the past. However, today s India is quite different. Now I see the streets in Delhi are much cleaner than before, and the cartoon ads of Swachh Bharat are posted in almost every corner of Delhi. I took many pictures in Mumbai and uploaded them onto Weibo, the Chinese Twitter. My friends are all amazed at the new change in India. Recently, I have read a Chinese-versioned biography about Prime Minister Modi, which tells a legendary story about how a tea-seller became a Prime Minister. I can t help admiring his outstanding talent and far-sightedness after reading it. I believe that, under the leadership of Prime Minister Modi, India will achieve new greater progress and realize the dream of national rejuvenation. 6. I learn that some Indian friends are concerned about the 7.4% growth of China s GDP in And there are different views on China s economic prospects. I think the overall situation of Chinese economy is stable and improved. After 30 years of rapid development, China s economy has been ranked second in the world, it is unrealistic to maintain double-digit growth. From high-speed growth to medium high-speed growth, the Chinese economy has come to a stage of New Normal. China s development must transfer from a low level to a high level. To this end, now China is transforming the economic development mode, adjusting the economic structure and promoting industrial restructuring and upgrading. China s reform and development will provide more opportunities for the cooperation between China and India. Just as President Xi and Prime Minister Modi said, China and India are two bodies with one spirit and When China and India speak with one voice, the whole world will notice, we would like to join hands with India and work together. I believe, once the Chinese Dream and the Indian Dream are connected and integrated with each other, it will generate great positive energy. China and India will lead the economic growth in the region and achieve common development and prosperity in Asia and realize the Asian Century together. Dhanyavad! Ambassador Le Yucheng's Interview with Deccan Herald Chinese Ambassador to India Mr. Le Yucheng visited the headquarter of Indian English Newspaper Deccan Herald on February 4, The Newspaper published the interview to the Ambassador the second day. The full text is as follows: How do you view President Xi Jinping s visit to India last year and its significance in taking the China-India Relations to new heights? Chinese President Xi Jinping paid a state visit to India last September. This was the second state visit by a Chinese President to India in the span of eight years. President Xi was also the first head of state of a major country to visit India after the formation of a new government. President Xi not only took out time from his extremely busy schedule to visit India but also stayed there for three days; this clearly shows that China attaches immense importance to its relations with India. The leaders of our two countries reached consensus on building China-India closer partnership for development, charted out a blueprint for development of our bilateral relations in the next five-ten years and opened up a new chapter for our relationship. During his first stop at Ahmedabad, Gujarat, President Xi tried his

24 24 China India Relations News From China February 2015 hands on a legendry Charkha, enjoyed a swing in a traditional Gujarati jhoola and celebrated Prime Minister Narendra Modi s birthday. The two leaders established a personal friendship through close interactions. The scene of thousands of people lining the streets of Ahmedabad to welcome President Xi gave me a long lasting impression and is still vivid in my mind. Having had the rare privilege of being appointed the Chinese Ambassador to India on the eve of President Xi s visit, I have witnessed a rapid growth in China-India relations since the visit. Nearly every sphere, including official contacts, local exchanges and civil interactions, is showing an upward trend. I receive various Chinese delegations visiting India almost every day. They not only visit the capital New Delhi, but also travel to Mumbai, Kolkata, Jaipur and other places. One can say that, President Xi s visit to India has ushered the bilateral relations in a boom era and took it to an important historical stage. The year 2015 marks the 65th anniversary of the establishment of diplomatic relations between China and India. Right now the two sides are stepping up efforts to implement the outcomes of President Xi s visit while preparing for a new round of high-level visits. We are working hard to expand our bilateral pragmatic cooperation in order to inject new vitality into the development of our bilateral relations. Amity between people holds the key to the sound relations between countries. This year is being observed as the Visit India Year in China. Sushma Swaraj, Indian External Affairs Minister has visited China and launched the Visit India Year. The Indian government will organize a series of tourism promotion activities in China to expand personnel exchanges between our two countries. China is ready to cooperate with India to promote greater development of the China-India relations in order to take them to an even higher level. I look forward to the prospects of the China- India relations with expectation and confidence. How do you view External Affairs Minister Sushma Swaraj s recent visit and proposed forthcoming visit of Prime Minister Narendra

25 News From China February 2015 China India Relations 25 Modi to China? Just a couple of days ago, Sushma Swaraj, External Affairs Minister of India, paid an official visit to China. This visit was her first visit to China since assuming the office last year, to which both sides attached great importance. During the visit, Chinese Foreign Minister Wang Yi have had an in-depth exchange of views with her on topics such as bilateral high-level visits, pragmatic cooperation, cultural exchanges and issues of common interests and both sides reached a lot of consensuses. It is particularly worth mentioning that both sides have agreed upon a package plan about the Yatra to the Tibet Autonomous Region of China through Nathula Pass. We hope that this summer the first group of Indian pilgrimages will go through the new route to Kailash Manasarovar. Indian Prime Minister Narendra Modi s visit to China this year is of great importance in our bilateral relations. The two sides are now in preparation for this visit. We hope the success of this visit will bring China-India Relations to a new level. Could you please give us an update on the progress in implementation of the MoUs and agreements inked by India (even higher level. and China during President Xi Jinping s visit in September, p a r t i c u l a r ly o n C h i n e s e investment of US $ 20 billion in India over five years and setting up Chinese industrial parks in Gujarat and Maharashtra? It is one of our major tasks to realize the 20 billion USD investments over the next five years in India which were announced during Chinese President Xi Jinping s visit to India last September. In order to reach this figure China needs to invest 4 billion USD annually on average. It is not a hard task for China when seen in the light that China s annual overseas investment is above 100 billion US dollars. As we know, during President Xi s visit to India, China and India signed 12 agreements on trade and economic cooperation, covering fields like industrial parks, C h i n a i s r e a d y t o cooperate with India to p r o m o t e g r e a t e r development of the China-India relations in order to take them to an railway, credit and leasing, with cumulative amount of investment and financing of 13 billion US dollars. Meanwhile, Chinese companies like Huawei, Alibaba, Xiaomi are increasing their investments in India. I remember what Prime Minister Modi told investors: There is no red tape but only red carpet in India. Chinese entrepreneurs see huge opportunity in India and are scrambling to walk on India s red carpet. Indian entrepreneurs are also optimistic about Chinese market. An Indian friend from West Bengal told me that it equally takes 2 hours by flight from Kolkata to reach Kunming in China and Delhi. It is very convenient for scores of Indian companies to do business with their Chinese counterparts. I am full of confidence for the future economic and trade cooperation between China and India. I came to know that Indian Media and Indian people are keen to know the setting up of the two Chinese industrial parks. Here I would like to give a brief introduction. During President Xi s visit to India last September, China Beiqi Foton Motor Corporation Limited and the Maharashtra Industrial Development Corporation signed an MoU on supporting the setting up of Chinese i n d u s t r i a l p a rk i n P u n e, Maharashtra. The total investment will be 5 billion US dollars in three phases by It is estimated to create one lakh jobs and an annual output of 20 billion US dollars. As of now, China has laid out 100 million US dollars initial investment and 20% of the land acquisition program has been completed. Similarly, China Development Bank signed an MoU with the Industrial Extension Bureau of Gujarat to set up a Chinese industrial park in Vadodara, Gujarat focusing on manufacturing electrical equipment. The total investment will reach 1.8 billion US dollars by It will directly create 10,000 jobs and 40,000 jobs indirectly, with an annual output value of 5.2 billion US dollars. China has already (

26 26 China India Relations News From China February 2015 made an initial investment of 150 million US dollars and 28% of the land acquisition plan has been finished. The first phase of a transformer plant has also been put into operation. We hope that on the Indian side, respective state governments will provide as much support as possible for the development and construction of the two industrial parks by offering preferential policies and creating infrastructure facilities in a timely manner. Could you please share with us the present scenario of China s economic engagement in Bengaluru and rest of Karnataka and South India? How is China planning to augment investment and economic engagement with southern States of India? What more do you expect from the State Government to facilitate Chinese investment in Karnataka? China s economic cooperation with south India is mainly taking place in Maharashtra, Karnataka and Tamil Nadu. Some representative projects such as the Chinese Industrial Park in Pune which I previously mentioned, Huawei s new R&D center in Bengaluru and construction and equipment supply of the thermal power plants in Tamil Nadu amount to billions of dollars in investment. In addition, Chinese railway companies are keen to participate in the metro rail construction projects in Bengaluru, Chennai, Hyderabad and other major cities in south India. The Chinese companies are choosing these south Indian states as investment destinations d u e to t h e i r c o m p re h e n s ive b u s i n e s s environment, which include the initiative of local government to attract foreign investment, the transparency and efficiency of administrative examination and approval, the convenience of land and taxation policies, the quality of supporting infrastructure and the development level of downstream and upstream industries. Not long ago, I read a news report that Bengaluru received US$ 2.6 billion in venture capital in 2014 and came in fifth in a list of cities globally. This attests to the growing attention being bestowed on Bengaluru by the global investors. It is worth mentioning that Chengdu of Sichuan Province, China and Bengaluru established sister city relationship in 2013, thus adding a new impetus to the local investment between the two countries. As far as I know, the world famous Indian multinational IT consulting and System Integration services company Wipro, which is headquartered in Bengaluru, has established its Strategic R&D Center in Chengdu with a focused research on mobile phone operating system. Meanwhile, Huawei, a Chinese high-tech company has just established its biggest R&D center overseas in Bengaluru. The two companies are leaders in their respective fields. They have also worked closely. Most of Huawei s Android mobile phone operating systems are developed by Wipro in Chengdu, while Huawei mobile phones will be designed and developed at Huawei s Bengaluru R&D centre. My visit to Bengaluru to attend the inauguration ceremony of Huawei s R&D center also bears witness to this model of the China-India investment cooperation. We encourage Chinese enterprises to carry out a wide range of economic cooperation with Karnataka and the rest of India. We also look forward to the local governments for providing as much support as possible to the Chinese enterprises on policy and information fronts, such as the introduction about the upcoming tenders related to infrastructure and investment projects, and appointment of a special official for the Chinese enterprises to coordinate on a series of problems like land acquisition, tax and labor encountered during the course of investment. How do China and Chinese companies view Prime Minister Modi s Make in India campaign? Is it likely to intensify competition between India and China? Or, can China contribute to this Make-in-India campaign? China and Chinese companies are glad to see the Make in India campaign launched by Indian Prime Minister, and believe that it is an effective strategy to ensure rapid recovery of Indian economy. When I met with Amitabh Kant, Secretary, Department of Industrial Policy & Promotion and in-charge of this campaign, I told him that the Chinese government will guide and encourage the

27 News From China February 2015 China India Relations 27 Chinese enterprises to actively participate in the development of India s manufacturing and infrastructure sectors. China started the policy of reform and opening up in 1980s and following the rapid development of its manufacturing industry has become the world s factory. Objectively speaking, China and India are at different stages of development in the manufacturing sector. China s economic development has entered a new normal state, mainly marked by mid-tohigh-speed growth instead of high-speed growth in the past. China s current goal is to focus on improving the quality and efficiency of the economic development, keep the economic operation within a reasonable area, and put the transformation of the economic development model and adjustment of the economic structure in a more important position. Thus, in the coming period, Made in China and Make in India will not form fierce competition in the international market. On the contrary, we believe that the Make in India campaign will bring opportunities for expanding economic and trade cooperation between China and India. China has capital, technology, equipment and sophisticated manufacturing management experience. We hope to make full use of the Make in India campaign to expand the Chinese investment in India. On the other hand, only with the development of India s manufacturing industry and the growth of Chinese investment in India can we fundamentally bring down the trade deficit and balance the bilateral trade. How do you view Prime Minister Modi s endeavours for economic reforms and his efforts to make the government s policy friendly to investors? What more do you think Indian G o v e r n m e n t c a n d o t o encourage Chinese companies to invest in India? In the last four months, I have witnessed various steps taken by the Indian government under the leadership of Prime C h i n a a n d C h i n e s e companies are glad to see the Make in India campaign launched by Indian Prime Minister, and believe that it is an effective strategy to ensure rapid r e c o v e r y o f I n d i a n economy. Minister Modi towards good governance, reform and development. I can myself experience the rapid changes which are happening. I have just been to the financial center of India Mumbai, now I have come to the Silicon Valley of India Bengaluru, both are so full of vigor and vitality nowadays that the new look of India s development and reform is already visible. China sees India as one of the most important neighboring partners, and attaches great importance to bilateral cooperation. China and India are two largest developing countries and emerging markets in the world, with a huge population of over 2.5 billion. Both countries are going through the crucial stage of national revival and facing the arduous task of ensuring overall development. However, the potential for bilateral cooperation has not been properly explored and our bilateral trade and investment volumes are not commensurate with the sizes of our respective economies. Both China and India need to join hands and work together to realize the untapped potential to bring tangible benefits to the people of our two countries. Chinese companies are actively going global. They are the main force to unleash the potential in China-India cooperation. I came to know that they are looking forward to changes of India s investment environment in three major aspects. First is the visa problem. As of now, most of the Chinese businessmen coming to India can only get single entry visas with the duration of 90 days. The conditions for issuing work visa to skilled workers are also very strict. These not only bring inconvenience but also stall the expansion of Chinese enterprises investment in India. We really hope that in the light of the favorable visa policies adopted by some of the other countries towards the Chinese enterprises, the Indian government can also relax its visa restrictions. Second is the security review. Chinese companies are willing to join the construction of large-scale infrastructure projects in India. We

28 28 China India Relations News From China February 2015 do have considerable advantages in the spheres of capital, technology, cost and construction experience, which are in line with the actual demand of India. But we often end up hitting the wall of security review. I wish the Indian government provides equal opportunities to the Chinese companies to participate in a fair competition with the win-win spirit of mutual benefit. Third is the improvement of the business environment, which include providing favorable policies towards foreign investment, improving the transparency and efficiency of the administrative examination and approval, expanding the scope of the policy of one-stop approval, simplifying and improving the policies of land acquisition, labor and tax, and improving infrastructure support such as water, electricity and waste disposal. How can India and China boost people-top e o p l e t i e s b e t we e n t h e t wo g re a t civilizations? China and India are two ancient civilizations with more than 2000 years of friendly exchanges. The story of Xuan Zang ( ), an eminent Chinese monk who came to India in search of Buddhist scriptures and stayed in India for 14 years during the Tang Dynasty ( ) is a household name in China and India. Last year was the Year of China-India Friendly Exchanges. The two countries held a series of colorful activities which impressed the two peoples deeply. This year is the Visit India Year in China. I believe the number of tourists between two countries will rise further. I have just been to Aurangabad and visited Ajanta and Ellora Caves. A viewer is invariably overwhelmed by the beauty of these centuries old ancient treasures. India also has Buddhist shrines like Bodhgaya. Incredible India is very attractive for Chinese tourists. In order to expand our people-to-people contacts, the two governments will launch The China-India Cultural Exchanges Plan this year. Firstly, the two countries will expand artistic exchange. We will celebrate the 2015 Happy Chinese New Year by inviting well-known Guangzhou Acrobatic Troupe to perform in New Delhi and Gujarat. China will also participate in the Bharat Rang Mahotsav in Delhi and the Indian Arts Festival in Bengaluru. Secondly, both sides are going to strengthen youth exchanges. The number of annual youth visits will be expanded from 100 to 200 in the following five years. Thirdly, China and India will increase cooperation in the fields of film and television. We will hold film festivals in each other s country. Last year, China participated, as the Special Guest Country, in the International Film Festival of India, Goa. We will invite India as the guest country to participate in China s film festival this year. Co-production of films by the two sides is also in the pipeline. I am a big fan of Bollywood movies. From Caravan to Three Idiots, I am strongly touched by the charm of Indian movies. Finally, China and India will promote academic, publishing and educational exchanges. We will speed up the project on mutual translation of the classical and contemporary literary works. China will be the Guest of Honour Country at the New Delhi World Book Fair There are 22 Chinese teachers teaching mandarin, calligraphy and dance in primary and secondary schools all over India. And we are ready to send more. I was once invited by my counterpart Ashok Kantha, Indian Ambassador to China, to an Indian Culture Festival in China. The Indian dance performances by a group of Chinese teenagers are so wonderful that I initially mistook them as Indians. Yoga is also very popular in China. I wish to see further deepening of the cultural exchanges between our two countries, so that there will also be more and more Indian youth demonstrating their skills in Chinese Kongfu and calligraphy. President Xi and Prime Minister Modi agreed to rebalance bilateral trade. Could you please share with us the measures taken so far to address the issue of trade imbalance? China s Central Economic Work Conference last year clearly pointed out that China is pursuing a rough balance of international payments by promoting the balance between domestic demand and external demand, between import and export and between foreign investment in China and

29 News From China February 2015 China India Relations 29 Chinese investment overseas. The Chinese side always prefers trade to be balanced, not imbalanced. China takes the Indian concern of trade imbalance very seriously. Although the main reason of our trade imbalance is the difference of industrial structures between our two countries, we are willing to provide opportunities to increase India s exports to China. Since 2008, the Ministry of Commerce of China has sent 6 trade promotion delegations to boost import from India. At the 6th Trade Promotion Matching Session during President Xi s visit to India, entrepreneurs of the two countries signed Indian products procurement contracts of 780 million US dollars. We are also preparing to send more procurement missions to India and expand import from India this year. Besides, China warmly welcomes Indian companies to expand trade with China through various effective trading platforms, such as China- South Asia Expo and China Import and Export Fair (Canton Fair). In order to increase the popularity of the Indian products, China also welcomes various Indian chambers of commerce to hold product promotion events in China. Solving the problem of trade imbalance requires joint efforts from both sides. On the other hand, we also need to recognize the upward trend of overall China-India trade. The bilateral trade volume has increased by 320 times in the last 10 years. China hopes that India would ease restrictions on exporting its competitive products such as iron ore to China, reduce tariffs and encourage Indian companies to export more agriculture products. I believe that with the development of the Indian manufacturing industry and the improvement in international competitiveness of its products, India s trade deficit with China will decline. How does China view new Indian Government s Act East policy, as well as its renewed focus on engagements in its neighbourhood and, at the same time, New Delhi s unenthusiastic response to President Xi s call for building a 21st Century Maritime Silk Road and cautious approach to the proposed BCIM economic corridor? China and India are each other s important neighbours, two major developing countries and new emerging markets, and two mainstays in the process of world multi-polarization. Both the countries are undergoing the great historical process of national rejuvenation. The harmonious coexistence, peaceful development and cooperative win-win of the Chinese dragon and the Indian elephant will not only deliver benefits to the 2.5 billion people of the two countries, but also bring prosperity to the developing countries, and will have far-reaching influence over the region and beyond. In this sense, China s 21st Century Maritime Silk Road initiative and India s Act East policy can be linked up together so as to contribute more to the peace and prosperity of Asia and the world. Bangladesh-China-India-Myanmar (BCIM) Economic Corridor is an important part of the 21st Century Maritime Silk Road initiative. It provides a significant platform for the economic development and cooperation to the countries of the region and also serves the development of the Indian economy. Currently, the BCIM Economic Corridor is progressing well, the third working group meeting will be held in India this year. China is willing to work together with all parties, including India, to jointly promote the construction of BCIM Economic Corridor, regional integration and economic development. Has there been any progress in discussion on the boundary issue after President Xi s visit to India? When can we expect the Special Representatives to hold the next round of talks on boundary issue? Can any progress be expected towards demarcating the Line of Actual Control to avert untoward incidents, when New Delhi and Beijing continue to discuss the boundary issue? The boundary issue is a historical burden left by the western colonists. Through years of efforts, China and India have signed the political parameters and guiding principles for the settlement of the boundary issue.

30 30 China India Relations News From China February 2015 Now, the two sides are working on the basic framework of its solution through friendly consultations. Both sides are keeping close contact for the preparation of next round of talks between the Special Representatives of China and India on the Boundary Question. China is ready to work with the Indian side to seek a fair, reasonable and mutually acceptable solution on the basis of the Five Principles of Peaceful Co-existence and from the political perspective of the overall bilateral relationship. Pending the final settlement, the two sides should jointly safeguard peace and tranquility in border areas and prevent the boundary issue from holding up the overall development of bilateral relations. In recent years, the two sides have properly handled the boundary issues through friendly consultations. In this process we have accumulated rich experiences and reached multiple consensuses on how to maintain peace and stability in this area. The two sides signed an agreement on border defense cooperation, set up regular meeting mechanism between the two army headquarters, adjacent military commands and border troops, built additional border meeting points, e s t a b l i s h e d a h o t l i n e b e t we e n a r my headquarters, made telecommunications available between front-line border troops etc. A code of conduct for border control is being discussed by the two sides right now. I would like to point out that the connotation of our bilateral relationship is not merely the boundary issue but far beyond it. As long as both sides continue to draw wisdom from the two ancient civilizations, keep sufficient foresight, courage and tolerance, and expand positive aspects of bilateral mutually-beneficial cooperation, China and India will be definitely able to find a way to resolve our differences, and continually push forward the development of our bilateral relations. How does Beijing view the renewed efforts by Prime Minister Narendra Modi s Government to build civilian and defence infrastructure close to the Line of Actual Control between India and China, including in Arunachal Pradesh? Japan has of late offered India support to development projects in North-East and New Delhi seems to have accepted the offer. How does China view this? The China-India boundary has never been demarcated and there exists immense dispute in the eastern section of the China-India border. It is a well known fact as well as a basic consensus between the two sides. Both sides have always agreed that the boundary issue should not affect the development of bilateral relations. We are currently trying to find a fair, reasonable and mutually acceptable solution through negotiations. Pending the final settlement of the boundary question, we hope that the Indian side will refrain from taking actions in disputed areas that may complicate the question. China firmly opposes any unilateral move to change the status quo in the disputed region, and also opposes the intervention of a third party because this would complicate the dispute. China is willing to make joint efforts with India to take forward the process of dispute resolution and control the dispute, to effectively maintain peace and stability in the boundary areas, and to create favorable conditions for a final settlement of the boundary issue and development of China-Indian relations. You have already been in India for more than 4 months. How is the experience of working with the Indian government and people? I feel greatly honored to witness President Xi Jinping s historic visit to India at the very beginning of my tenure. Participation in the important milestone events in the development of China-India relations gave me a feeling of immense proud. Just after I assumed my post, I paid a visit to President Pranab Mukherjee and Prime Minister Modi. In the following four months, I met with External Affairs Minister Sushma Swaraj and more than a dozen ministers and high level officials at the Ministry of Defence, Ministry of Finance,

31 News From China February 2015 External Affairs 31 Ministry of Commerce and Industry, Ministry of Railways, Ministry of Human Resources Development and other government institutions. I also visited Gujarat, Rajasthan and Maharashtra to interact and communicate with Indian friends from all walks of life. I received warm hospitality of my India friends wherever I visited, and deeply felt their heartfelt friendship for China and the Chinese people. I m deeply encouraged and full of confidence on the future development of the China-India relations. China and India are two large developing and neighboring countries. Both take development as their biggest strategic goal and have broad prospects for bilateral cooperation. I am confident that if we could further connect our development strategies and respective advantages, the impact would be far-reaching. We would able to lead regional growth and promote development and prosperity in Asia. As Chinese Ambassador to India, I feel a heavy responsibility, because there is still a lot of work to be done for achieving this great goal. In order to promote the China-India relations, I am willing to work together with my Indian friends from all walks of life, and will do my best to take the bilateral cooperation to a new level. EXTERNAL AFFAIRS Xi Jinping Holds Talks with Argentine President Chinese President Xi Jinping (R) shakes hands with Argentine President Cristina Fernandez de Kirchner during their talks in Beijing capital of China Feb Xinhua Pang Xinglei)

32 32 External Affairs News From China February 2015 On February 4, 2015, President Xi Jinping held talks with President Cristina Fernandez de Kirchner of Argentina at the Great Hall of the People. Xi Jinping pointed out that I paid a successful state visit to Argentina last July, during which we together announced the establishment of China- Argentina comprehensive strategic partnership and reached important consensus on enhancing bilateral mutually beneficial and friendly cooperation in all fields. With the joint efforts of both sides, our consensus is becoming a reality. The new results of bilateral mutually beneficial and friendly cooperation have brought strong impetus to the development of bilateral relations. I am more confident in the prospect of China- Argentina relations. Xi Jinping stressed that both as important emerging markets, China and Argentina should strengthen exchanges and cooperation, share development opportunities and jointly cope with challenges. The two countries should intensify allround exchanges, give full play to the planning and coordinating role of bilateral intergovernmental standing committee, and well implement the joint action plan between the two governments; deepen practical cooperation, make the best of mechanisms such as the strategic dialogue on economic cooperation and coordination, and push for the sustained, stable and in-depth development of bilateral mutually beneficial cooperation; well construct existing key projects such as railways and hydropower stations, and actively carry out cooperation in such areas as infrastructure construction, agriculture, energy, mineral and equipment manufacturing, with nuclear power as the key in the next stage; boost exchanges in custom and quality control, promote bilateral trade for healthy and stable growth, continue enhancing financial cooperation, and well implement the agreement on local currency exchange. China welcomes Argentine enterprises to actively explore the Chinese market, and will support Chinese enterprises to invest and develop business in Argentina as always. China will strengthen coordination with Argentina in international organizations and multilateral mechanisms such as the UN, the International Monetary Fund (IMF), the G20, and the G77 plus China. Cristina Fernandez de Kirchner expressed that China has become a vital driving force for world economy. Argentina pays high attention to deepening the comprehensive strategic partnership with China, and hopes bilateral cooperation yield more fruitful results. Argentina is now advancing energy diversification, and the Nestor Kirchner Hydropower Station and the Jorge Saipan Nick Hydropower Station being constructed by both countries are Argentina s most important hydropower stations in history. Argentina hopes to carry out nuclear power cooperation with China thus to use China s nuclear technology. Bilateral currency exchange mechanism is very important to Argentina, and Argentina hopes to increase the exchange quota and make RMB the major currency in trade settlement between the two countries. Argentina welcomes China s auto and telecommunication enterprises to establish factories in the country and is willing to see more Chinese products in the Argentine market, and welcomes Chinese enterprises to exploit mineral resources including potassium and lithium in Argentina and also hopes China import more quality beef, fruits, vegetables and other products from the country. Argentina and China have always offered mutual support on issues regarding each other s major concerns. Argentina stands ready to boost cooperation with China in such international organizations as the UN and the World Trade Organization. Xi Jinping noted that to strengthen cooperation between China and Latin America will enrich the connotation of South-South cooperation and exert a positive international influence. China appreciates Argentina s support for China-Latin America overall cooperation, and will work with the Latin American side including Argentina to advance China-Latin America comprehensive cooperative partnership and better benefit both peoples by taking the first ministerial meeting of the Forum between China and the Community of Latin American and Caribbean States (CELAC) as a new starting point.

33 News From China February 2015 External Affairs 33 Cristina Fernandez de Kirchner agreed to Xi Jinping s viewpoints on China-Latin America relations, and expressed that Argentina will continuously contribute to Latin America-China cooperation. Following the talks, the two heads of state together signed and issued the Joint Statement on Enhancing the Comprehensive Strategic Partnership Between the People s Republic of China and the Argentine Republic. They also witnessed the signing of the cooperative documents covering politics, economy, trade, finance, nuclear power, culture, health care, judicature, aviation, telecommunication, tourism and other areas. The two heads of state together met the press. Xi Jinping pointed out that President Cristina Fernandez de Kirchner and I had an in-depth and fruitful talk just now, reaching multiple important consensus. This year marks the beginning of the China-Argentina comprehensive strategic partnership, and I believe that under the joint efforts of both sides, bilateral relations will certainly ride the tide and move forward constantly. Cristina Fernandez de Kirchner said that the establishment of Argentina-China comprehensive strategic partnership signifies the qualitative upgrading of bilateral relations. The signing of a series of cooperative documents between both sides today represents new outcome in bilateral cooperation, which will push Argentina s economic and social development, enhance its international competitiveness and further deepen bilateral comprehensive cooperation. Prior to the talks, Xi Jinping held a welcome ceremony for Cristina Fernandez de Kirchner at the North Hall of the Great Hall of the People. Vice Chairwoman of the Standing Committee of China s National People s Congress Yan Junqi, State Councilor Yang Jiechi, Vice Chairman of the National Committee of the Chinese People s Political Consultative Conference Zhang Qingli and others were present. Chinese Premier Li Keqiang (4th R) meets with Argentine President Cristina Fernandez de Kirchner (4th L) at the Great Hall of the People in Beijing capital of China Feb 5, Xinhua Pang Xinglei

34 34 External Affairs News From China February 2015 China France Pledge to Boost "Strategic" Cooperation Chinese President Xi Jinping (R) meets with French Prime Minister Manuel Valls in Beijing capital of China Jan Xinhua Yao Dawei Beijing, Jan. 30 (Xinhua) Chinese President Xi Jinping met with French Prime Minister Manuel Valls in Beijing on Friday and they pledged to boost the strategic cooperation between the two countries. Hailing the increasingly strategic significance of the China-France relationship, Xi said the two sides should make joint efforts to further advance bilateral ties in a stable way with more political wisdom and willingness. The two sides should always respect each other s core interests and major concerns and firmly maintain the direction of the bilateral relationship, Xi said, calling for strategic thinking to deepen practical cooperation on nuclear energy, aviation, finance and sustainable development, and an open mind to establish a closer community of interests between the two countries. The two sides should make use of their Highlevel Mechanism for Dialogue on People-to-People Exchanges, especially to increase exchanges between the youth of the two countries, said the president. On international affairs, Xi said China will support France s efforts to host the United Nations climate change conference in France late this year and that the two countries should join hands to safeguard the outcomes of World War II as well as the post-war peace order, and to establish a newtype of international relationship featuring winwin cooperation in the world. With this year marking the 40th anniversary of diplomatic relations between China and Europe, Xi said China and Europe face great opportunities to develop their bilateral

35 News From China February 2015 External Affairs 35 relationship. Xi hopes France will continue to play a positive role in negotiations on investment deals, the feasibility study on free trade and an agreement to facilitate people-to-people visits between China and Europe. During their meeting at the Great Hall of the People, Valls said the French side attaches great importance to ties with China and both sides are willing to boost their strategic cooperation in various fields. France hopes to cooperate with China on aviation, nuclear electricity, automobile, finance and other sectors, improve market entry and investment protection, and re-balance two-way trade through development, said the prime minister, also welcoming investors, students and tourists from China. France will also discuss international cooperation with China outside of their home countries, Valls said. The French prime minister said he looks forward to cooperation with China to address climate change and make the Paris climate change meeting a success. Valls said France looks forward to closer cooperation with China to fight terrorism. H e s a i d t h e w o r l d s h o u l d h o l d commemorations to celebrate the 70th anniversary of the end of WWII this year to reaffirm their commitment to world peace and security. France will also make continued efforts to develop the China-Europe relationship, said the visiting prime minister. China, France vow to cement friendship as anniversary celebrations conclude Beijing, Jan. 30 (Xinhua) Chinese Premier Li Keqiang and his French counterpart Manuel Valls agreed to cement friendship and cooperation as year-long activities marking the 50th anniversary Chinese Premier Li Keqiang (R) holds talks with French Prime Minister Manuel Valls at the Great Hall of the People in Beijing capital of China Jan 29, Xinhua Yao Dawei

36 36 External Affairs News From China February 2015 of China-France diplomatic ties concluded in Beijing. The two leaders visited an exhibition of famous French sculptor Auguste Rodin in downtown Beijing to mark the end of the celebrations. Addressing the occasion, Li said the forging of diplomatic ties in 1964 had unveiled a new chapter for relations between the two great nations. Hailing the progress of bilateral ties over the years, he said both countries had remarkable cooperation in politics, economy, culture and global affairs in the past year. We have held over 800 activities to celebrate the 50th anniversary of ties, which have enhanced mutual understanding and friendship between the two peoples and helped to consolidate a social foundation for ties, Li said. Under the new circumstances, China is ready to handle relations with France from a strategic and long-term perspective, respect each other and treat one another as equals, and cement winwin cooperation, strategic trust and cultural exchanges, said the Chinese premier. He called on both sides to cement friendship and make new contributions to maintaining international and regional peace, and boosting development of humankind. Applauding the smooth development of ties and vigorous cultural exchanges, Valls said those celebration activities reflected the profound friendship between the two people. He expressed confidence for the future growth of France-China ties, adding there is huge potential for bilateral cooperation. A total of 139 original works of Rodin are on display at the National Museum of China from last November to March 22 of 2015, including sculptures The Thinker, The Age of Bronze, Monument of Balzac and The Gates of Hell. Valls is visiting China from Jan. 29 to 31. This is his first China visit since taking office in March Chinese Premier Li Keqiang's Address at World Economic Forum Annual Meeting Chinese Premier Li Keqiang delivers a keynote speech at the World Economic Forum (WEF) annual meeting in Davos Switzerland on Jan 21, Xinhua Liu Weibing

37 News From China February 2015 External Affairs 37 DAVOS, Switzerland, Jan. 22 (Xinhua) Visiting Chinese Premier Li Keqiang delivered a special address at the World Economic Forum annual meeting here Wednesday. The following is the full text of Li s address: Uphold Peace and Stability, Advance Structural Reform and Generate New Momentum for Development Special Address by H.E. Li Keqiang Premier of the State Council of the People s Republic of China At the World Economic Forum Annual Meeting 2015 Davos, 21 January 2015 Professor Klaus Schwab, President Simonetta Sommaruga, Distinguished Guests, Ladies and Gentlemen, Dear Friends, It gives me great pleasure to come to Davos again after five years to attend the World Economic Forum Annual Meeting Davos is a town of peace and serenity, yet the world outside is not tranquil. We need to work together to shape the world in a new global context. I was told that Davos used to be a resort for recuperation from lung diseases, and the later discovery of Penicillin changed that. Now it is a place for people to gather and pool their wisdom for brain-storm. Personally, I find this more than relevant, because our world also needs new forms of Penicillin to tackle new challenges that have emerged. Admittedly, the world today is by no means trouble-free. Regional hotspots, local conflicts and terrorist attacks continue to flare up, posing immediate threats to humanity. Global economic recovery lacks speed and momentum. Major economies are performing unevenly. Commodity prices are going through frequent fluctuations. And signs of deflation have made the situation even worse. In fact, many people are quite pessimistic about the future of the world. They believe that the guarantee of peace is weak, and the prospect of development is elusive. A philosopher once observed that we cannot solve problems by using the same kind of thinking we used when we created them. Indeed, old problems can no longer be solved by clinging to the outdated mindset of confrontation, hatred and isolation. Dialogue, consultation and cooperation must be explored to find solutions to new problems. It is important that we draw lessons from history, and pool our collective wisdom to maximize the convergence of interests among countries. Fortunately, in time of hardship and trial, mankind have always been able to find the courage to get out of the predicament and move ahead through change and innovation. In a world facing complex international situation, we should all work together to uphold peace and stability. This year marks the 70th anniversary of the victory of the world s anti- Fascist war. To uphold peace and stability serves the interests of all people in the world. The world order established after World War II as well as generally recognized norms governing international relations must be maintained, not overturned. Otherwise, prosperity and development could be jeopardized. The Cold War and zero-sum mentalities must be abandoned. The winner takes all approach will not work. Regional hotspots and geopolitical conflicts must be resolved peacefully through political means. Terrorism, in all its manifestations, must be opposed. China remains committed to peaceful development and regional stability. And China has no intention to compete with other countries for supremacy. Peace in the world must be cherished the same as we cherish our eyes, so that the achievements and benefits of civilization, including reason and justice, will prevail. In a world of diverse civilizations, we should all seek to live in harmony. Cultural diversity, like biodiversity, is a most precious treasure endowed to us on this planet. And human society is like a garden where all human civilizations blossom. Different cultures and religions need to respect and live in harmony with each other. While maintaining the natural close ties among those with whom we see eye to eye, we also need to respect those with whom we disagree. Like the vast ocean admitting all rivers that run into it, members of the international community need to work together to expand common ground while accepting differences, and seek win-win progress

38 38 External Affairs News From China February 2015 through inclusive cooperation and mutual learning. In a world facing volatile economic situation, we should all work to promote opening-up and innovation. What has happened since the outbreak of the international financial crisis seven years ago proves that to work in unity is the surest way for countries to get over the difficulties. We are all interdependent in this world. While we each have the right to adopt economic policies in line with national conditions, we need to strengthen macro-policy coordination to expand the convergence of interests and achieve common development. An European proverb says, when the wind of change blows, some build walls, while others build windmills. We need to act along the trend of our time, firmly a dva n c e f re e t ra d e, re s o l u t e ly re j e c t protectionism, and actively expand regional economic cooperation. We need to build global value chains, and seize the opportunity of a new technological revolution. While the international community agree on the importance of macropolicies to the economy, they also recognize the urgency to go ahead with structural reform. Structural reform must be carried through no matter how difficult it is, as it is an effective way to foster conditions conducive to global innovation and bring about new momentum for global development. Ladies and Gentlemen, I know you are all interested in the outlook of the Chinese economy. Some of you may even worry about the possible potential impact of China s economic slowdown and transition. To ease your concerns, let me spend more time today on what is really happening in China. The Chinese economy has entered a state of new normal. The gear of growth is shifting from high speed to medium-to-high speed, and development needs to move from low-to-medium level to medium-to-high level. This has made it all the more necessary for us to press ahead with structural reform. It must be noted that the moderation of growth speed in China reflects both profound adjustments in the world economy as well as the law of economics. The Chinese economy is now the second largest in the world. With a larger base figure, a growth even at 7 percent will produce an annual increase of more than 800 billion US dollars at current price, larger than a 10 percent growth five years ago. With the economy performing within the reasonable range and the speed of growth no longer taken as the sole yardstick, the strained supply-demand relationship will be eased, the pressure on resources and the environment will be lowered, and more time and energy will be devoted to push forward structural reform. That means, the economy will enter a more advanced stage of development, with more sophisticated division of labor and a more optimized structure. If I could compare the Chinese economy to a running train. What I want you to know is that this train will not lose speed or momentum. It will only be powered by stronger dynamo and run with greater steadiness, bringing along new opportunities and new momentum of growth. In 2014, we followed exactly the aforementioned approach. In the face of downward pressure, we did not resort to strong stimulus; instead, we vigorously pursued reforms, and the government in fact led these reforms by streamlining administration and delegating power. This has motivated both the market and the business sector. GDP grew by 7.4 percent for the whole year, the best among major economies in the world. Over 13 million new jobs were created in cities, with both registered and surveyed unemployment rates lower than the previous year. That is, we achieved growth in employment despite the economic slowdown. CPI was kept at 2 percent, lower than the target set at the beginning of the year. These outcomes prove that the host of macro-regulation measures China adopted have been right and effective. More importantly, new progress has been made in advancing structural reform. Needless to say, the Chinese economy will continue to face substantial downward pressure in What shall we choose to do under such circumstances? Shall we go for even higher growth for the short term, or for medium-to-high growth and a higher quality of development over the long run? The answer is definitely the latter. We will

39 News From China February 2015 External Affairs 39 maintain our strategic focus and continue to pursue a proactive fiscal policy and a prudent monetary policy. We will avoid adopting indiscriminate policies. Instead, we will put more emphasis on anticipatory adjustment and finetuning, do an even better job with targeted macroregulation to keep the economy operating within the reasonable range, and raise the quality and performance of the economy. We are taking effective measures to fend off debt, financial and other potential risks. China s high savings rate, which now stands at 50 percent, generates sufficient funds for sustaining economic growth. Besides, China s local debt, over 70 percent of which was incurred for infrastructure development, is backed by assets. And reform of the financial system is making progress. What I want to emphasize is that regional or systemic financial crisis will not happen in China, and the Chinese economy will not head for a hard landing. It must be pointed out that China is still a developing country and still has a long way to go before achieving modernization. While peace is the basic condition for China s development, reform and opening-up along with our people s desire for a happy life constitute the strongest impetus propelling development. The space of development in China s rural and urban areas and various regions is enormous, and the country s domestic demand will simply generate great potential of growth. Development at medium-tohigh speed for another ten to twenty years will bring even bigger changes to China and create more development opportunities for the world. For the Chinese economy to withstand downward pressure, and to maintain medium-tohigh speed of growth and achieve medium-tohigh level of development, we need to say no to traditional mindset. We must encourage innovative institutions, and press ahead with structural reform. We need to adopt more innovative macro-regulation policies and develop a more vigorous micro economy. We need to promote more balanced development of industries, between rural and urban areas and among regions. We need to ensure relatively high employment rate, especially sufficient employment for the young people. And we need to optimize income distribution and raise the people s welfare. All this certainly calls for tremendous efforts. Yet we will stay undaunted in the face of difficulties. We will unswervingly press ahead with reform and restructuring to ensure that our economy maintains medium-to-high speed of growth and achieves medium-to-high level of development. To ensure long-term and steady growth of the Chinese economy, we need to comprehensively deepen reforms. We need to properly use both the hand of the government and the hand of the market, and rely on both the traditional and new engines of growth. We will let the market play a decisive role in resource allocation to foster a new engine of growth. At the same time, we will give better scope to the role of the government to transform and upgrade the traditional engine of growth. To foster a new engine of growth, we will encourage mass entrepreneurship and innovation. China has 1.3 billion people, a 900- million workforce, and over 70 million enterprises and self-employed businesses. Our people are hard-working and talented. If we could activate every cell in society, the economy of China as a whole will brim with more vigor and gather s t r o n g e r p o w e r f o r g r o w t h. M a s s entrepreneurship and innovation, in our eyes, is a gold mine that provides constant source of creativity and wealth. Speaking of this, I think of China s rural reform conducted more than 30 years ago. The reform brought farmers initiatives into full play and allowed them to decide for themselves matters related to rural production and management. Consequently, the problem of hunger that previously haunted China was solved in just a couple of years. In short, a structural innovation that unleashed the creativity of the people changed the lot of hundreds of millions in China. I also think of a small village I visited two months ago in eastern China. In the village were some 700 households and over 2,800 registered online stores. Each day, more than 30 million items of various sorts were sold to different parts of the world. The story of the village speaks vividly of the

40 40 External Affairs News From China February 2015 hard-working Chinese people actively engaged in entrepreneurship. Going forward, China needs new sources of dynamism to carry development forward. Dynamism comes from diversity, which sparks w isdom a n d fosters innova t ion. Mass entrepreneurship and innovation serves to unleash people s ingenuity and power. It will result in greater demand and residents consumption, greater social wealth, and greater welfare for the people. More importantly, it will bring opportunity for many and give people the stage to reach life s full potential. It will also bring about greater social mobility, equity and justice. Excessive regulation discourages innovation, and healthy competition is the way to prosperity. We will deepen reform of the administrative system. This means we will continue to abolish or delegate to lower-level governments items previously subject to State Council review and approval. We will comprehensively sort out items requiring non-governmental review and approval, and put in place a negative-list approach for market access. This will incentivize market players, and help reduce the possibility of rentseeking and corruption. We will protect intellectual property rights in accordance with the law, and do our best to foster an environment that encourages entrepreneurship and tolerates failure. Moreover, we will give protection to all sorts of legal property rights. To transform the traditional engine of growth, we will focus on increasing the supply of public goods and services. China has made remarkable economic achievements, but inadequate supply of public goods and services remains a weak link in development. China s capital stock on public infrastructure, in per capita terms, is only 38 percent that of Western Europe and 23 percent that of North America. The development of its service sector is 10 percentage points lower than other developing countries at similar development stages. And its rate of urbanization is more than 20 percentage points lower than developed countries. This means a massive space for increasing public goods and services. To deliver such public goods and services to improve people s lives is the government s responsibility. They are also important ways to boost domestic demand. This year, we have identified some key areas for investment, including building railways in central and western provinces, constructing water conservancy projects, rebuilding rundown urban areas and old houses in cities and villages, and preventing and controlling pollutions. The government will increase investment in these areas, and it will not act alone. Efforts will be made to break monopoly and reform the investment and financing systems to encourage the participation of private and foreign capitals. The model of public-private partnership (PPP), Sino-foreign cooperatives and government purchase of services will be adopted to better leverage various investment sources. I have an example here to cite. A few years ago, the plan was made to build a sewage treatment plant in a province in western China, and a total of 335 million RMB yuan was needed. The project later attracted investment from a German water company, with the German side controlling 70 percent of the total shares. Moving forward, we will deepen fiscal and taxation reform, reduce the tax and fees charged to businesses, particularly those in the service sector, and take new steps to support SMEs. We will deepen reform of the financial system, continue to promote liberalization of interest and exchange rates, and accelerate the development of small- and medium-sized financial institutions, private banks in particular, with a view to developing a multi-tiered capital market. We will speed up reform of the pricing system, substantially reduce the types and items for which the government sets the prices, and liberate price regulation to the maximum extent possible. More emphasis will be given to the government s role in creating a favorable soft environment. That means better market regulation, a world-class business environment established on market principles and the rule of law. In this way, we will be able to provide efficient and quality public services to all market players. Ladies and Gentlemen, China s reform and development will bring more business opportunities to the world. We will provide easier market access for inbound foreign

41 News From China February 2015 Chinese Enterprises in India 41 investment, and explore the possibility of management based on a pre-establishment national treatment and negative-list approach. Chinese and foreign companies will be treated as equals. We will further open the financial, education, cultural, medical care, pension and other service sectors in an orderly way, and bring the experience of the China (Shanghai) Pilot Free Trade Zone to other parts of China. Our aim is to help investors from across countries find rich mines and reap steady returns from their investment. What is more, China will explore new approaches to investment cooperation with other countries. China s high-speed railway, nuclear power, aviation, telecommunications and other sophisticated manufacturing capacities are gradually being introduced to other countries. They could meet market demand of the recipient country, and stand the test of competition on the international market. Their export will also help open up third-country markets, as many of such products are made by joint ventures between China and a foreign country. China has put forward the initiatives to build the Silk Road Economic Belt and the 21st Century Maritime Silk Road. China hopes to work with other countries to advance these initiatives and ensure that they are brought forward in ways that meet the actual needs of countries concerned. Davos of Switzerland is a world-famous ski resort. As we understand, to be a good skier, one needs to do three things: go at the right speed, keep balance and be courageous. I believe this also holds true for the Chinese economy. What is important now for China is to adapt to the new normal. China will maintain medium-to-high speed of growth, keep a proper balance between steady growth and structural adjustment, and push forward reform with great courage and determination. China will stay firm in its commitment to reform and opening-up. It will focus on structural reform, encourage mass entrepreneurship and innovation, increase supply of public goods and services, and use the twin engines to ensure that the economy maintains medium-to-high speed of growth and achieves medium-to-high level of development. As long as we succeed in doing so, the Chinese economy will successfully overcome the middle-income trap and move ahead along the path of sustainable and sound development. This will in turn bring greater opportunities to the world economy. In closing, I would like to call upon the international community to forge ahead and work in unison to uphold peace and stability, embrace harmonious coexistence, and boost the impetus for openness and innovation. By doing so, I am confident we will be able to overcome whatever difficulty or obstacle that stand in our way, and bring about a better future for the world that we all call home. Thank you very much. CHINESE ENTERPRISES IN INDIA Sinopharm India The healthcare is an important sector related to national economy and people s lives. It has a strong livelihood, public welfare and externalities impact. Cooperation in the field of healthcare between China and India is not only an important sector of bilateral trade and economic complementarity and strategic reciprocity, but also an important medium of promoting friendship between two nations. As the largest healthcare industry group in China and the only Chinese healthcare company in Global F o r t u n e 5 0 0, C h i n a N a t i o n a l Pharmaceutical Group Corporation

42 42 Chinese Enterprises in India News From China February 2015 (Sinopharm Group) has an entire medical industry chain format c o v e r s t h e p h a r m a c e u t i c a l distribution, pharmaceutical production, chain pharmacies, biological products, hospital design, professional exhibition, hospital management, international trade and marketing business etc. China S i n o p h a r m I n t e r n a t i o n a l C o r p o r a t i o n ( S i n o p h a r m International) Sinopharm Group International business sector, m a i n l y f o c u s o n b u i l d i n g international business integration platforms and domestic health industry platform. The former business scope includes import and export trade of big health products, i n t e r n a t i o n a l m a r k e t i n g o f biological products, international marketing of medical devices etc. The latter includes the chain medical center, hospital management group, Sinopharm online shop E- commerce etc. Sinopharm International has a long history of cooperation and business development in India. According to statistics, in 2013, imports volume from India is about 151 million dollars; exports volume is about 43 million US dollars; import and Sinopharm India Opening Ceremony Sinopharm International Headquarter export volume is about 194 million US dollars; From January to July in 2014, imports volume from India is about 83 million US dollars; exports volume is about 32 million US dollars; import and export volume is about 115 million dollars.imported products are mainly cotton, plant extracts, edible oil;exports to India mainly APIs and intermediate products, biological products and medical devices. Which, the noteworthy is biological products business. Sinopharm International started JE project cooperation with Indian Ministry of Health since 2006, cumulatively shipped more than 170 million copies of the Japanese Encephabtis Vaccine, such that about 100 million children are protected. In , S i n o p h a r m International also got a 2-year contract for the supply of JE va c c i n e t o M i n i s t r y o f Health.In addition, IVIG, HBIG, Varicella, Human Tetanus Immuno-globulinarein the replacement regis-tration process again.

43 News From China February 2015 Chinese Enterprises in India 43 In case to expand the cooperation in the field of bilateral health care, and to provide better localized health services to the people of India. Sinopharm International invested to establish Sinopharm I n d i a P v t. L t d. (Sinopharm India) in New Delhi at the end of 2012.Sinopharm India P v t. L t d. i s t h e procurement center, registration center, Vaccine Storage and injection s a l e s c e n t e r, a n d medical information exchange and industrial cooperation center of Sinopharm Group in India. It is committed to provide comprehensive package of services for Chinese manufacturers of pharmaceutical products. The main business includes three sections, marketing of biological products, marketing of APIs and intermediates, marketing of medical devices. The Minister of Health Chen Zhu cut the opening ribbon at January of annual business scale is about 2 million US dollars; Up to October of 2014, the business scale is 3.88 million dollars. Same as BRICS Countries, China and India will continuously enhance the cooperation in the field of healthcare. This healthcare cooperation between Dragon and Elephant is not only conducive to meet the healthcare needs of approximately 40% of the world s population, will also tremendously contribute to the development of mankind healthcare industry. Adhering to the corporate credo of Caring for life, attending to health, Sinopharm India is going to play a unique and critical role as a bridge. Sinosteel India Sinosteel India Pvt. Ltd. (abbreviated as Sinosteel India) with its Head Office at Nehru Place, New Delhi, is a fully owned subsidiary of Sinosteel Corporation, being important part working under the guidance of global integrated operation strategy of Sinosteel Corporation. Sinosteel India operates with various departments of Resource (iron, chrome, manganese, coke and coal), Project & Equipments Adminis-tration, Finance, Public Relation and Investments and working together to promote the Sinosteel brand. Since its establishment in 2005, Sinosteel India has been engaged in developing and purchasing high quality mineral resources (such as iron ore, chrome ore, manganese ore, nickel ore, met coke etc.) for Chinese steel manufacturers; and in undertaking projects for Indian steel mills, providing, comprehensive and auxiliary service, importing complete equipments, steel products and coke. Exerting a full play of the advantage in global integrated operation of Sinosteel group, Sinosteel India strives to take usage of the abundant resources and development potentiality of India and its neighboring countries, to provide all-

44 44 Chinese Enterprises in India News From China February 2015 around and satisfactory s e r v i c e i n I n d i a a n d n e i g h b o r i n g m a r ke t s. Moreover, with a high view of our corporate social responsibility, we commit ourselves to local environm e n t p r o t e c t i o n a n d community development. While developing India Market, Sinosteel India also dedicates to fulfillment of social responsibility and continuously promotes the sustainable development of economy, environment and Staff of Sinosteel India society, Sinosteel India is endeavoring to become an enterprise which is trustworthy, resources and energy saving, environmental friendly and people-orientated. Development will create a better future, and the responsibility will make a cohesive strength. Sinosteel India is hoping to enhance and expand exchanges and cooperation with friends of the field at home and abroad. We will fulfill our responsibilities and adhere to mutual development. With united, cooperation, development, win-win as goal, Sinosteel India warmly welcomes old and new friends to contact for business cooperation. The disability artist performance in Delhi sponsored by Sinosteel India

45 News From China February 2015 Reviving the Silk Road 45 REVIVING THE SILK ROAD China Sketches Out Priorities of Belt and Road" Initiatives Chinese Vice Premier Zhang Gaoli (C rear) presides over a meeting focused on the "Belt and Road" initiatives, or the building of the Silk Road Economic Belt and the 21st Century Maritime Silk Road in Beijing capital of China Feb 1, Xinhua Huang Jingwen Beijing, Feb. 1 (Xinhua) Chinese leaders sketched out priorities for the Belt and Road initiatives on Sunday, highlighting transport infrastructure building, investment and trade facilitation, financial cooperation and cultural exchange. The initiatives are major policy decisions made by the Party and the State Council, which will be of great significance to further opening up to the outside world and promoting regional and world peace, said Vice Premier Zhang Gaoli at a conference focused on implementing the initiatives. The Silk Road Economic Belt is slated to be established along the ancient Silk Road trade route, which stretches northwest from China s coastal area through Central Asia, the Middle East and on to Europe, while the 21st Century Maritime Silk Road will run through the country s south to Southeast Asia. China will join hands with countries along the Belt and Road to build a community of common interests, common responsibilities and a shared future, featuring political mutual trust, economic integration and cultural inclusiveness, Zhang said at the conference attended by other senior leaders. Under the initiatives, more highways, railways

46 46 Reviving the Silk Road News From China February 2015 and air routes will be built and Chinese regions will further integrate resources, policies and markets to connect with the outside world. The initiatives were put forward by Chinese President Xi Jinping during his overseas visits in Speaking at the conference, Zhang called for using major economic and trade industrial parks as platforms to build several international economic cooperation corridors, and rely on key port cities to jointly build secure and efficient transport corridors. Another priority of the initiatives is to facilitate the interconnection of infrastructure along the Belt and Road. The vice premier also stressed the importance of facilitating investment and trade, creating a favorable business environment and making more efforts to build cooperation parks along the routes. Financial cooperation should be expanded and accelerated to provide better financing support for the construction of the Belt and the Road, said the vice premier. People-to-people exchanges should also be enhanced along the routes, and the spirit of friendly cooperation, which can be dated back to the ancient Silk Road, should be promoted, Zhang said. Zhang also highlighted the importance of environment protection and social responsibility in building the Belt and Road. Countries along the routes should increase communication and consultations and give full play to multilateral, bilateral, regional and subregional cooperation mechanisms and platforms to seek common development and prosperity, Zhang said. China Holds Maritime Silk Road Seminar Liu Qibao a member of the Political Bureau of the Communist Party of China CPC Central Committee and the Secretariat of the CPC Central Committee who is also head of the CPC Central Committee s Publicity Department delivers a keynote speech at the international seminar on the 21st Century Maritime Silk Road held in Quanzhou, southeast China's Fujian Province, Feb. 12, (Xinhua/Jiang Kehong)

47 News From China February 2015 Reviving the Silk Road 47 Quanzhou, Fujian, Feb. 11 (Xinhua) A twoday international seminar on beefing up maritime trade infrastructure in Asia opened Wednesday in east China s Quanzhou City. Over 280 academics and experts from 30 countries have been invited to discuss proposals to build a 21st Century Maritime Silk Road. The event is themed collectively building the 21st Century Maritime Silk Road and creating a community of common destiny. It will involve three round table meetings covering the topics of the values and significance of the 21st Century Maritime Silk Road initiative, working together for common development and prosperity and seizing fresh development opportunities and tapping new cooperation prospects. Jiang Jianguo, director of China s State Council Information Office, said in his welcoming address that the Silk Road Economic Belt and the 21st Century Maritime Silk Road have become hot topics for the media and think tanks, reflecting the attraction of the initiatives to countries along the route. You Quan, secretary of the Fujian Provincial Committee of the Communist Party of China, said Fujian has always been a pioneer of reform and opening-up and a close trading partner of countries in Southeast Asia. As the core area in constructing the modern maritime Silk Road, Fujian stands ready to increase maritime connectivity, promote multiple trades and transactions, advance maritime cooperation and make contributions to the Road, You said in a keynote speech. Being a means of disseminating information and a messenger of cultural exchange, the media plays an irreplaceable role in promoting mutual understanding and friendship among countries, said Cai Mingzhao, president of the Xinhua News Agency. Cai said Xinhua will increase its coverage of the Silk Road initiative, and provide tailored news products on the subject. Wang Weiguang, president of the Chinese Academy of Social Sciences, said the seminar is conducive to boosting political trust, deepening economic cooperation and promoting cultural as well as people-to-people exchanges among countries along the route. In 2013, Chinese President Xi Jinping proposed a modernization of the ancient Silk Road trading network to benefit the Asia region. The seminar is hosted by the State Council Information Office and coorganized by the Xinhua News Agency, the Chinese A c a d e m y o f S o c i a l S c i e n c e s, t h e C h i n a International Publishing Group and the Fujian Provincial Academy of Social Sciences. The summit forum of the international seminar on the 21st Century Maritime Silk Road is held in Quanzhou, southeast China's Fujian Province, Feb. 12, (Xinhua/Wei Peiquan) The Belt and Road Initiative Brings New Opportunities B e i j i n g, J a n. 2 8 (Xinhua) As China strives to achieve more regional cooperation, its

48 48 Reviving the Silk Road News From China February 2015 Belt and Road initiative will not only drive domestic development but will also influence its foreign policy. The Silk Road Economic Belt is slated to be established along the ancient Silk Road trade route which stretched northwest from China s coastal area through Central Asia, the Middle East and on to Europe while the maritime Silk Road will run through the country s southern part to Southeast Asia. Under the initiative, more highways, railways and air routes will be established, and Chinese regions will further integrate resources, policies and markets to connect with the outside world. The Silk Road Economic Belt and the 21st Century Maritime Silk Road were put forward by Chinese President Xi Jinping during his overseas visits in In November, Xi announced that China will push forward with the initiative and strengthen cooperation with those countries involved. When visiting Mongolia in August, he said that China invited its neighbors to get on board and ride China s development. As China promotes the Belt and Road initiative abroad, it is also driving change back home. In an economic work conference held in December 2014, it was listed as one of the priority tasks for And in recent days, the initiative has been lauded by people s congress sessions across the country. A total of 20 provincial regions have made their development blueprints based on the belt and road initiative. Observers believe that the initiative can further integrate China, allowing more parts of the country to enjoy the benefits of its opening-up policy. But the significance of the Belt and Road initiative lies in its potential to integrate domestic and regional development, bringing a more pragmatic approach to China s foreign policy. Along the belt and road are many developing countries, with a combined population of 4.4 billion and an annual economic output of 2.2 trillion U.S. dollars. China has strengthened cooperation with neighboring countries in the fields of energy, transportation and trade. China s import of products and services improves the economy its neighbors and bolsters its own sluggish economy. The initiative will become a major part of its foreign policies, resulting in a more favorable and mutual-beneficial regional environment. China Kicks off Silk Road Tourism Year Xi an, Jan. 8 (Xinhua) China on Thursday kicked off the Silk Road tourism year in Xi an, capital of northwest China s Shaanxi Province, to attract more visitors on the ancient Silk Road which linked China with central Asian nations. Every year China National Tourism Administration (CNTA) sets a theme for tourism promotion. Inspired by the Silk Road, China will promote western provinces for their rich culture and tourist appeal. The Silk Road tourism year will facilitate regional cooperation, deepen mutual understanding and establish mutually beneficiary ties for all related nations, said Du Jiang, deputy director of the CNTA. Shaanxi Province is investing more in tourism and cementing its position as the starting point of the Silk Road, said Bai Aying, deputy governor of Shaanxi Province. The new Silk Roads, both land and sea, involves 65 countries. Future co-operation will aim to open more direct flights, and ease custom procedures to eliminate barriers to travel. Chinese president Xi Jinping has proposed the Belt and Road initiatives to revive the ancient Silk Road and promote shared prosperity. The

49 News From China February 2015 Reviving the Silk Road 49 initiative prioritizes infrastructure and connectivity-an opportunity that tourism operators won t miss. The terminal of Silk Road is in Rome and Prague is only two hour flight away from Rome. We ll promote honeymoons and hot spring tours this year. We ll have promotion packages, working with big travel agencies in China, said Hu Lina, marketing director of Czech Tourism Beijing Office. Silk Road Tourism will be intensively promoted in the next three years, giving travelers more options to their itinerary. (also source from: CNTV.cn) Chinese Dance Drama Promotes "Maritime Silk Road at UN HQ United Nations, Feb. 4 (Xinhua) I thought the story was very powerful. It was about family, love, adventure, friendship, and inheritance, Maria Kucinski said after watching a traditional Chinese dance drama Dream of the Maritime Silk Road. Admitting that she has never learnt anything before about Maritime Silk Road a sea route of the economic and cultural exchanges between ancient China and the rest of the world, Kucinski told Xinhua that she can get the concept and images of interactions in trade and culture in that period after enjoying the drama performed at UN headquarters on Wednesday night. There is a marketplace where everybody came...where they are able to purchase silk, tea, porcelain... Kucinski recalled a specific scene showing the hustle and bustle of the trade and commerce 800 years ago. The dance drama, through distinctively Chinese classical dance, tells a story of a commercial fleet in China s Quanzhou port, Fujian Province: The captain of the fleet was invited by a Persian prince to together develop a new sailing route. During the voyage, the fleet was struck by a storm and the captain sacrificed his life to save the Persian prince. That s really wonderfully portrayed, said Alice Chen, a Chinese American who works in the UN. I think it s really great that the UN was able to showcase all the culture, all the celebrations and all the great values that Chinese people have.

50 50 Reviving the Silk Road News From China February 2015 You see the Chinese really look out for other cultures, she added. The performance is put on by the Permanent Mission of China to the UN on the o c c a s i o n o f C h i n a s presidency of the Security Council for February. UN Secretary-General Ban Kimoon also joined the crowds to watch the show. Addressing the event, Liu Jieyi, China s permanent representative to the UN said today s world calls for a new t y p e o f i n t e r n a t i o n a l relations centering on winwin cooperation. Road China is working with numerous countries to build a Silk Road Economic Belt and a 21st Century Maritime Silk Road, Liu mentioned, saying that the initiative is making good headway and will bring new vigor and vitality to the development and prosperity of the countries concerned and the world at large. The Silk Road Economic Belt is to be established along the ancient Silk Road trade route, stretching northwest from China s coastal Artists perform during a Chinese Dance Drama entitled The Dream of the Maritime Silk at the United Nations headquarters in New York on Feb 4, 2015 Xinhua Niu Xiaolei area through Central Asia, the Middle East and on to Europe, while the 21st Century Maritime Silk Road will run through the country s south to Southeast Asia. Echoing with the concepts of the initiative, the show is expected to act as a symbol of cultural exchanges, Xie Nan, executive director of the drama told Xinhua, adding that he hopes it can help to deliver China s friendliness and passion to the whole world on the UN s platform. Chronology of China s Belt and Road Initiatives Beijing, Feb. 5 (Xinhua) -- China prioritized tasks for the future of the "Belt and Road" initiatives during the Conference to Promote the Construction of the Belt and Road on Feb. 1. The list of planned actions includes consultations with countries involved, construction of international economic cooperation corridors and ports, as well as infrastructure projects. The Silk Road Economic Belt is to be established along the ancient Silk Road trade route, stretching northwest from China's coastal area through Central Asia, the Middle East and on to Europe, while the 21st Century Maritime Silk Road will run through the country's south to Southeast Asia. The following are the major events in the development of China's "Belt and Road" initiatives so far. September The "Silk Road Economic Belt" concept was initiated by Chinese President Xi Jinping during his visit to Kazakhstan. In a speech delivered at Nazarbayev University, Xi suggested that China and Central Asia join hands

51 News From China February 2015 Reviving the Silk Road 51 to build a Silk Road Economic Belt to boost cooperation. It was the first time Chinese leadership mentioned the strategic vision. Oct. 3, President Xi Jinping proposed to build a more closely-knit China-ASEAN community following a common destiny and provided guidance for constructing a 21st Century Maritime Silk Road to promote maritime cooperation. In his speech at the Indonesian parliament, Xi also proposed to establish the Asian Infrastructure Investment Bank (AIIB) to finance infrastructure construction and promote regional interconnectivity and economic integration. November The Third Plenary Session of the 18th Central Committee of the Communist Party of China (CPC), a milestone along China's reform path, called for accelerating the interconnection of infrastructure among neighboring countries, and facilitating the construction of the Silk Road Economic Belt and 21st Century Maritime Silk Road. December President Xi Jinping urged strategic planning of the "Belt and Road" initiatives to promote the interconnection of infrastructure and build a community of common interests at the annual Central Economic Work Conference. February President Xi Jinping and his Russian counterpart, Vladimir Putin, reached a consensus about the construction of the "Belt and Road", as well as its connection with Russia's Euro-Asia Railways. March Premier Li Keqiang highlighted acceleration in building the "Belt and Road" in the government work report. The report also promoted balanced development of the Bangladesh-China-India-Myanmar Economic Corridor and the China-Pakistan Economic Corridor. May The first phase of a logistics terminal jointly built by China and Kazakhstan went into operation in the port of Lianyungang in east China's Jiangsu Province. The terminal, with a total investment of 606 million yuan (98 million U.S. dollars), is seen as a platform for goods from central Asian countries to go overseas and a boost to the construction of the Silk Road Economic Belt. October Twenty-one Asian countries willing to join the Asian Infrastructure Investment Bank (AIIB) as founding members signed the Memorandum of Understanding on Establishing AIIB. As agreed, Beijing will be the host city for AIIB's headquarters. The 21 countries are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam. It is expected that AIIB will be formally established by the end of November President Xi Jinping announced China will accelerate the construction of the "Belt and Road" and strengthen cooperation with the countries involved. When presiding over the eighth meeting of the Central Leading Group on Financial and Economic Affairs, Xi announced that China will contribute 40 billion U.S. dollars to set up the Silk Road Fund. During the Beijing APEC meetings, Xi announced that the fund will be used to provide investment and financing support to carry out infrastructure, resources, industrial cooperation, financial cooperation and other projects related to connectivity for countries along the "Belt and Road". December The Central Economic Work Conference sketched out priorities for the coming year, which include the implementation of "Belt and Road" initiatives. Earlier in the month, Thailand approved a draft memorandum of understanding between Thailand and China on railway cooperation. January The number of AIIB founding members, many of whom are important countries along the Silk Road routes, rose to 26, after New Zealand, Maldives, Saudi Arabia and Tajikistan officially joined. Feb. 1, A conference focused on the "Belt and Road" initiatives was held in which Chinese leaders sketched out priorities for the initiatives, highlighting transport infrastructure building, investment and trade facilitation, financial cooperation and cultural exchanges.

52 52 Economic Affairs News From China February 2015 ECONOMIC AFFAIRS Slowdown: A Blessing in Disguise? by Deng Yaqing China s economy grew at a rate of 7.4 percent in 2014 amidst its painstaking efforts to carry out structural reform, cut outdated production capacity and promote innovation. China has surmounted tremendous pressures and challenges to realize the goal of maintaining its growth rate around the 7.5-percent target, said Ma Jiantang, Commissioner of the National Bureau of Statistics (NBS), noting that such a growth rate is quite hard-won against the nation s massive economic aggregate 63.6 trillion yuan ($10.4 trillion). Although the economy has shifted into low gear compared with the double-digit growth of previous years, Chinese people have benefited from the low price level and efficient job creation, said Ma. According to statistics from the NBS and the Ministry of Human Resources and Social Security, China s consumer price index (CPI) rose 2 percent in 2014, and a total of million urban jobs were created, far exceeding the target of 10 million. The economic environment will remain complicated in Externally, some developed economies are experiencing a recovery. Domestically, uncertainties and contradictions are interwoven, said Ma. However, there are still many favorable conditions for China to maintain medium-to-high growth in I n d u s t r i a l i z a t i o n, i n f o r m a t i z a t i o n, urbanization and agricultural modernization have laid a solid foundation for the steady growth A worker prints the back of a chair with a 3D printer in Anji, east China s Zhejiang Province on January 15 XU YU of China s economy in As millions of people surge into urban areas, the efficiency of resource allocation will improve, hopefully creating greater market demand, said Ma. Opening up and reform will continue to stimulate inexhaustible entrepreneurial enthusiasm, which is the main engine of stable growth. Reducing government intervention and relaxing market access will mobilize the 900 million labor and scientific and technical personnel to innovate and start businesses, said Ma. Enhanced Quality Despite a slowdown in growth speed, a focus has been laid on elevating the quality and efficiency of economic growth. Annual labor productivity reached 72,313 yuan ($11,647) per capita, up 7 percent from the previous year. Energy consumption per unit of GDP was reduced by 4.8 percent, according to Ma. As economic structural reform advances, and

53 News From China February 2015 Economic Affairs 53 growth model and resources allocation continuously improve, the slowdown seems inevitable, said Yu Yongding, an expert with the Chinese Academy of Social Sciences. Yu offered an example. More than 20 percent of China s total steel production capacity is laid idle, and in Hebei Province alone, there are more than 300 steel mills. Shutting down these factories would lead to GDP growth decline, but it doesn t mean green GDP would drop. Yu s point of view echoes that of Liu Kegu, former Deputy Governor of China Development Bank, who believes GDP growth at around 7 percent is what it originally ought to be, because China used to excessively fix its eyes on growth speed rather than quality and people s livelihood. Part of the investment in jacking up GDP growth should have g one towa rd eliminating environmental pollution, improving people s living standards, securing employment, or promoting health care and education, said Liu. China s economic growth has gradually broken its excessive dependence on real estate investment, said Qu Hongbin, chief economist of HSBC in the Greater China region. The construction area of newly built homes dropped 10.7 percent in 2014 and land purchases made by real estate developers fell by 14 percent from the previous year, according to statistics from the NBS. Improved Structure T h e e x p a n d i n g proportion of the service industry indicates that the service industry is r e p l a c i n g t h e manufacturing industry to become the main e n g i n e o f C h i n a s economy, said Ma. The added-value of the service industry a c c o u n t e d f o r percent of the total GDP in 2014, up 1.3 percentage points and 5.6 percentage points higher than the manufacturing industry; the added-value of the service industry grew 8.1 percent, faster than the p e rc e n t g rowth re g i s tere d by t h e manufacturing industry and the 4.1-percent growth registered by the primary industry, according to statistics from the NBS. Qu stated that since the service industry best creates jobs, such an adjustment in industrial structure will stabilize employment and facilitate ongoing economic reforms. While traditional industries, heavy chemical and bulk raw materials industries struggled with endless difficulties in 2014, emerging industries like mobile Internet gained momentum, implying that China s economy is aggressively edging up along the value chain, said Ma. The service industry as well as Internetrelated emerging industries and hi-tech industries are growing, while high energyconsuming industries are also growing just at a slower pace, said Ma. According to statistics from the NBS, the hitech manufacturing industry expanded 12.3 percent in 2014, 4 percentage points faster than the growth of value-added output of industrial enterprises; meanwhile, the equipment manufacturing industry grew 10.5 percent, 2.2 percentage points faster than the growth of value- An urban resident in Lhasa capital of southwest China s Tibet Autonomous Region cleans her home fitted with heating applications on January 9 (LIU KUN)

54 54 Economic Affairs News From China February 2015 added output of industrial enterprises. In addition, online retail sales increased by 49.7 percent, and the volume of express delivery increased by a whopping 51.9 percent. While the development of hi-tech industries outpaced that of traditional industries, exports of hi-tech products such as high-speed rails also shot up last year, said Li Kang, chief economist of Xiangcai Securities Co. Ltd. In sustaining the structural adjustment, Ma argued that enterprises need to constantly improve their product structure and renovate their technologies, the market should be further freed up to play a decisive role in allocating resources and the government should resort to structural and industrial policies as well as macro-control policies. The inexhaustible impetus of stable growth consists in entrepreneurial innovation, said Ma. Roadblocks Ahead China s GDP hit $10.4 trillion in 2014, almost twice that of Japan, making it the second country with GDP surpassing $10 trillion. Despite that, the per-capita GDP was roughly $7,400, ranking around 80th among all the countries on the globe, said Lin Caiyi, chief economist of Guotai Jun an Securities Co. Ltd. China is still a middle-income country and has to overcome the so-called middle-income trap an economic development situation wherein a country that attains a certain income gets stuck at that level. As such, it should stimulate market vigor through innovation, transformation and opening up to the outside world, said Lin. Zhang Qizuo, Deputy Secretary General of Globalization Cooperation Forum, held that the economy cannot sustain over-investment in manufacturing, real estate and infrastructure construction, which would only aggravate overcapacity, housing bubbles, local government debt and financial risks. Due to the adjustment of the real estate market and the reduction of overcapacity in the manufacturing industry in recent years, the growth of fixed assets investment has been slowing down. Last year, it only registered 15.1 percent. Since investment in the manufacturing industry accounted for over 30 percent of the total, eliminating overcapacity and curbing overlapping investment will inevitably result in lower growth of fixed assets investment, said Ma, who admitted that China s economy faces great downward pressures in 2014 and When adjusting economic structure and dealing with excess production capacity, traditional manufacturing enterprises are more likely to suffer capital chain ruptures, which will activate default risks and generate bad loans, said Lin. Generally speaking, when economic growth slows down, the leverage ratio will ascend. Surging leverage ratio reflects enterprises dwindling capacity to pay off debts, said Yu. As an important economic parameter, China s CPI grew a mere 2 percent in By the end of last December, the producer price index (PPI) had seen negative growth for 34 consecutive months, according to statistics from the NBS. Lian Ping, chief economist of the Bank of Communications, noted that the consecutive negative PPI growth has constrained the expansion of the manufacturing industry and undermined the development of the macroeconomy. The decline of CPI and PPI mirrors weak domestic demand, and the risk of deflation will stretch the endurance of China s economy, said Qu. Since the second half of 2014, the prices of international bulk commodities like crude oil have plunged, which will further increase the possibility of deflation, said Qu. Macroeconomic Indicators in Consumer price index (CPI), the main gauge of inflation, rose 2 percent. - Producer price index (PPI), which measures inflation at the wholesale level, contracted 2.2 percent. - Foreign trade increased 3.4 percent to $4.3 trillion. Exports increased 6.1 percent to $2.34 trillion, while imports increased 0.4 percent to $1.96 trillion. - Inward foreign direct investment (FDI) on the Chinese mainland stood at $ billion, up 1.7 percent.

55 News From China February 2015 Economic Affairs 55 - Outward FDI from the Chinese mainland stood at $ billion, up 14.1 percent. - Value-added output of industrial enterprises above a designated size principal business revenue of more than 20 million yuan ($3.22 million) a year grew 8.3 percent. - Fixed assets investment totaled 50.2 trillion yuan ($8.09 trillion), up 15.1 percent with inflation deducted. - Retail sales totaled trillion yuan ($4.23 trillion), up 10.9 percent with inflation deducted. - Per-capita disposable income of urban residents stood at 28,844 yuan ($4,646), up 6.8 percent with inflation deducted. - Per-capita cash income of rural residents stood at 10,489 yuan ($1,689), up 9.2 percent with inflation deducted. - New yuan-denominated loans totaled 9.78 trillion yuan ($1.58 trillion), 890 billion yuan ($ billion) more than the amount in As of the end of 2014, M2, a broad measure of money supply that covers cash in circulation and all deposits, reached trillion yuan ($19.78 trillion), up 12.2 percent. (Sources: National Bureau of Statistics, Ministry of Commerce) Get Smart Chinese Phone Makers by Zhou Xiaoyan Han Yu, a 24-year-old postgraduate student in Beijing, is a rabid fan of Xiaomi Inc., a Beijingbased maker of smartphones, tablets and televisions. He, like hundreds of thousands of other Xiaomi worshipers, spends hours every day in testing the user interface of Xiaomi cell phone, finding bugs and offering advice to the company. He is in charge of several sections of Xiaomi s online forum, a platform for fans to interact with the homegrown smartphone vendor, and, every day, there are over 200,000 new posts from fans on the forum. Han said his life is Xiaomi-centered and he has since gotten to know many new friends through the Xiaomi forum. Xiaomi took my advice about creating a folder for private pictures in its latest update. This is an honor for me. I really enjoy the feeling of being part of it, Han said. Xiaomi, whose name translates into the grain millet, was founded in April 2010, in Zhongguancun, Beijing s technology hub dubbed China s Silicon Valley. The company is very appropriately named, because it has shown significant growth. Over the past several years, it has risen from an obscure Chinese handset maker to become one of the top smartphone vendors in t h e w o r l d s l a r g e s t h a n d s e t m a r k e t China with a highly organized fan base who love and idolize the company. Xiaomi is not the only Chinese smartphone maker that s growing exponentially both at home and overseas. Other local brands Lenovo, Huawei, Coolpad and Vivo are all also rising into leadership positions held by global leaders Samsung Electronics Co. and Apple Inc. The competitive edge of local brands lies in reasonable prices combined with high-performance hardware and highly customized software. This is very attractive to many Chinese consumers who try to strike a balance between the price and

56 56 Economic Affairs News From China February 2015 performance. According to a recent report from the China Academy of Telecommunication Research, domestic cell phone brands owned 78.3 percent of the market share in China in In sharp contrast to Chinese smartphone makers boom, the market share of Samsung is trailing off. Samsung accounted for 23.8 percent of the global market in the third quarter of 2014, decreasing from the 32.5 percent in the third quarter of 2013, according to the International Data Corp. In the Chinese market, Samsung s market share shrank to 14 percent in the third quarter of 2014 from the 21 percent in the third quarter of 2013, according to market research and advisory company Canalys. Prominence Xiaomi s rise has been pretty astounding. Just a few years after announcing their first smartphone model in August 2011, it became the third largest smartphone vendor in the world, according to International Data Corp., and the largest in China, according to Canalys. Xiaomi said it sold million mobile phones in 2014, up 227 percent. Sales revenue totaled 74.3 billion yuan ($12 billion) in 2014, up 135 percent from The company hopes to sell 100 million units of smartphones globally in At the end of last year, Xiaomi said it had raised $1.1 billion in a new round of funding, putting the company at a valuation of $45 billion, the highest among all unlisted tech firms. Despite its outstanding performance last year, Lei Jun, founder and CEO of Xiaomi Inc. said there is no time for complacence as competition in China s handset market is unbelievably brutal. Xiaomi is mired in heightened competition with domestic rivals Lenovo and Huawei. Xiaomi s cross-town rival Lenovo, the world s largest maker of personal computers, is focused on an expansion in smartphones amid a global decline in PC demand. After purchasing Motorola from Google in a $2.91-billion deal in October 2014, Lenovo claimed it has become the third largest smartphone vendor in the world and said the space between it and the top ranked smartphone makers is decreasing. Lenovo announced in January that it will bring Motorola phones back to China in the first quarter, reintroducing the brand to the world s largest market after an absence of more than two years. Motorola s brand is well liked and respected in many markets, especially being a U.S. brand with a long legacy in mobile said Jessica Kwee, a Singapore-based analyst with Canalys. It is something that Lenovo can leverage. Smartphone shipments of Huawei, a leading information and communications technology solutions provider headquartered in Shenzhen, south China s Guangdong Province, rose 40 percent to 75 million in Huawei s latest models Honor 6 and Honor 6 Plus have made a splash in China and the company said sales of its Honor Series, a flagship series that the company created to compete against Xiaomi, increased 30 times in Alan Chen, an analyst with TrendForce, a market intelligence provider, said in a research note that Huawei, Xiaomi and Lenovo will battle to

57 News From China February 2015 Economic Affairs 57 be the top Chinese smartphone vendor in How Lenovo s Motorola acquisition plays out and whether Xiaomi can replicate its home market success overseas will be key factors in determining who becomes the top Chinese brand in 2015, Chen said. Prospects Wang Yanhui, Secretary General of Mobile China Alliance, an industrial association in the country, said the victory of local brands has resulted from their thin profits. The decrease of Samsung s market share is because the manufacturing technology for smartphones has become standardized. After Chinese brands have acquired the know-how, they will definitely enjoy a sweeping victory in pricesensitive markets with their exceptional high cost-performance ratio. If Samsung doesn t lower its price, its market share will further decline, Wang said. Wang, however, said Chinese smartphone makers can hardly be expected to dominate the global arena. The dominance of Samsung is partly attributed to its strong supply chain, and the success of Apple is because of its IOS system. Although Chinese smartphone makers have made certain progress in core technologies, they still have a long way to go, Wang said. Their status as top smartphone vendors globally is backed by their enormous sales data in China. The global market share of Chinese smartphone makers combined is quite limited, Wang said. Huawei has developed its own patented chips, but its supply chain lags far behind that of Samsung s. The sales volume of Xiaomi is increasing rapidly, but its profit margin is very thin, much lower than Samsung. Wang said a lack of global sales network and patents will be major obstacles in the overseas forays of Chinese smartphone brands. For instance, when expanding overseas, Xiaomi started from price-sensitive emerging markets including India, Indonesia and Pakistan. But even so, the company was sued in December 2014 by Ericsson AB for patent infringement when it tried to expand in India, the world s second most populous country. The absence of high-end smartphone models is another reason why domestic makers can hardly be expected to compete with Samsung globally. Chinese smartphone makers are mainly focused on models priced at below 2,000 yuan ($322). It s hard to imagine that a smartphone maker will be a global success without high-end models, Wang said. If they want to surpass Samsung, they need to do three things first: set up a globalized sales network, solve the patent problem and focus on being the runner up to Samsung, Wang. To date, n o d o m e s t i c m a k e r h a s f u l f i l l e d t h e

58 58 Economic Affairs News From China February 2015 aforementioned. Li Yi, Secretary General of the China Mobile Internet Industrial Association, said the smartphone market as a whole will shrink in coming years. Desktops used to be popular, but they were replaced by laptops. Several years later, tablets replaced laptops. Now, the tablet market is dwindling. Once-popular consumer electronics products will always be replaced after three to five years, Li said. The smartphone will be no exception. In several years, wearable devices will replace smartphones, and the smartphone market as a whole will shrink, said Li. Realizing this, global heavyweights like Apple and Google are all transforming. Otherwise, they won t have any room for development in the future. Although domestic smartphone makers are prospering both at home and overseas, their primetime can only last for three to five years. As the technology further advances, smartphones may not exist in the future. Its functions will be integrated into a watch or a pair of glasses, Li said. Xiaomi Xiaomi Inc. was founded in April 2010 by Lei Jun and his friends in Beijing. On August 16, 2011, Xiaomi s first smartphone debuted. In 2014, Xiaomi sold million mobile phones in 2014, up 227 percent. It hopes to sell 100 million units of smartphones globally in Xiaomi s product portfolio has been expanded to cover smartphones, tablets and televisions. Due to Xiaomi s success, Lei was named China s Businessperson of the Year 2014" by Fortune China. Lenovo Founded in 1984 in Beijing, Lenovo Group Ltd. has become known to the world primarily as a leading PC maker. Lenovo bought IBM s PC unit in 2005 for $1.25 billion and has become the world s largest seller of PCs since the third quarter of 2013 by overtaking Hewlett-Packard (HP). In April 2010, Lenovo launched its first smartphone model. In the third quarter of 2014, Lenovo ranked No.4 in global smartphone shipment, accounting for 5.2 percent of the global market share. After it bought Motorola mobile handset business from Google for $2.91 billion in October 2014, Lenovo claimed it ranked No.3 in smartphone shipment volume globally. By using Motorola as a springboard to North American and Latin American markets, it plans to sell more than 100 million smartphones in Huawei Huawei Technologies Co. Ltd., founded in Shenzhen, south China s Guangdong Province in 1987, is a leading information and communications technology solutions provider. Its telecom network equipment, IT products and solutions, and smart devices are used in 170 countries and regions. Huawei took over Ericsson AB to become the largest telecom equipment manufacturer in the world in It has invested heavily in smartphones and accounted for 9 percent of China s smartphone market in the third quarter of Double-Edged Sword by Wang Jun Finally the European Central Bank (ECB) decided to follow the decision of Federal Reserve (Fed) to print money massively. It is uncertain whether the eurozone can brace powerful recovery, just as the United States did after quantitative easing (QE), but far away in China, the yuan has been affected. Mario Draghi, President of the ECB,

59 News From China February 2015 Economic Affairs 59 announced on January 22 that the ECB would launch an expanded asset purchase program. Under this program, t h e c o m b i n e d m o n t h l y purchases of public and private sector securities will amount to 60 billion euros ($68 billion). The program will most likely be in effect until the end of September 2016 and will in any case be conducted until the inflation rate is close to 2 percent over the medium term. This means that, altogether, there will be nearly 1 trillion euros ($1.13 trillion) in the market. The euro fell sharply after the ECB unveiled such a big QE program, falling to an 11-year low of $1.13 on January 22. Driven up by the eurozone s QE, the central parity rate of the yuan strengthened by 1,409 basis points to against the euro on January 23, the biggest daily rise since November 2011 and lower than 7 yuan for the first time in history, according to figures from the China Foreign Exchange Trading System. The launch of QE by the ECB, together with the U.S. normalizing its monetary policy, will lead to a stronger U.S. dollar, which may impose downward pressure on the exchange rate of the yuan against the U.S. dollar, said Pan Gongsheng, Vice Governor of the People s Bank of China (PBC), the country s central bank, at a press conference held by the State Council Information Office on January 23. Yuan Under Pressure According to a report by Minsheng Securities Co. Ltd., accelerated QE by central banks of Europe and Japan will further depress the exchange rates of the euro and Japanese yen; with strong economic recovery and weakened easing measure by the Fed, the U.S. dollar will become stronger. After the launch of QE by the ECB, the yuan s central parity rate weakened by 95 basis points to against the U.S. dollar on January 23, according to the China Foreign Exchange Trading System. The yuan s rate against the U.S. dollar continued to slump for a second trading day on January 26, hitting the lowest level since June The yuan faces depreciation pressure against the U.S. dollar, but with intervention from the PBC, the depreciation won t be too significant. Further, the yuan exchange rate against the U.S. dollar may have two-way fluctuations. In the meantime, since the yuan is unofficially pegged to the U.S. dollar, it will accelerate appreciation against other currencies. The European version of QE will bring more capital to China, while the expected rate hike in the United States may bring depreciation pressure to the yuan, said Deng Haiqing, chief analyst of CITIC Securities Co. Ltd., when interviewed by National Business Daily. Under various pressures, it is still uncertain if the yuan will appreciate or depreciate. According to Deng, the depreciation of the euro and the appreciation of the U.S. dollar will both affect yuan s exchange rate, and it is still uncertain the yuan will appreciate or depreciate. Since the PBC announced an interest rate cut on November 21, 2014, the yuan has depreciated rapidly. The PBC figures showed that in December 2014, the funds outstanding for foreign exchanges

60 60 Economic Affairs News From China February 2015 fell by billion yuan ($21 billion) from the previous month, the biggest monthly fall since December Deng said the sharp fall of funds outstanding for foreign exchanges may be due to the PBC s intervention to alleviate the yuan s depreciation pressure. Judging from this, the Chinese central bank is reluctant to see the depreciation of the yuan, he said, adding that the yuan s depreciation may impede the process of developing the Shanghai free trade zone and making the yuan an international currency. It is not logical that China tries to spur exports by depreciating its currency. A report on the Economic Information Daily said that the European QE could intensify the competitive depreciation of global currencies. The yuan will also face more depreciation pressure, but the depreciation won t be significant, and it may appreciate against other currencies. Lu Zhengwei, chief economist of Industrial Bank Co. Ltd., holds different views. According to him, the effective exchange rate of the yuan is not at an equilibrium level now, and it has long been overrated. This is also the basic reason why the Chinese economy has not been able to recover as quickly as expected. If the overrating can be modified through yuan s depreciation China will easily resume economic growth above 7.5 percent. Lu has a bold estimation that the yuan will depreciate as much as 5 percent this year. Impact on China Since the scale of this round of QE is much bigger than expected, the euro is likely to continue depreciating in the short term, strengthening the U.S. dollar. As the yuan is unofficially pegged to the U.S. dollar, appreciation of the U.S. dollar will also push up the yuan s exchange rate against other currencies, imposing pressure on China s exports. In the long term, however, economic recovery in the eurozone will increase China s exports. In 2014, the EU remained China s largest trading partner. Trade volume between China and the EU amounted to $615 billion in 2014, up 9.9 percent, a c c o r d i n g t o d a t a f r o m t h e G e n e r a l Administration of Customs. Among the total, China s exports to the EU totaled $371 billion and its imports from the EU totaled $244 billion, up 9.4 percent and 10.7 percent, respectively. The program will help boost the eurozone s economy, increase demand and potentially boost China s exports, because Europe is one of China s most important trading partners, Pan said at the conference. The European QE is likely to further boost investors confidence and devalue the euro. Devaluation of the euro and decline of oil prices will intensify the pressure of imported deflation in China. To address the possible risks of deflation and the pressure on economic growth, the PBC may further relax its monetary policy, predicted the Economic Information Daily report. It is expected that the Chinese Government will adopt relaxed or diversified monetary policy tools to ensure stable economic growth. Meanwhile, the eurozone s QE will further undermine the euro s position as the world s second largest reserve currency. On the other hand, thanks to the yuan s stable exchange rate, China s high growth speed and large economic scale, its currency is expected to be accepted by more international investors. The ECB s bond-buying plan will release a huge amount of liquidity, which will weaken the euro and force capitals to flow out and return to the United States. The large liquidity brought forth by the new round of QE in the eurozone will no doubt cause a spillover effect, and the strengthening of the U.S. dollar s exchange rate will drive capital back to the United States. All this will increase the uncertainty of the international capital flow, said Pan. The Economic Information Daily report said that China may also receive some of these capitals. When the yuan s use as a global currency increases, the euronzone s QE is likely to bring new opportunities for the internationalization of the yuan.

61 News From China February 2015 Culture & Life 61 CULTURE & LIFE The Vitality of a Traditional Art by Ding Ying It s on a Friday night. O v e r a u d i e n c e members casually sip tea w h i l e t a k i n g i n t h e performance of a comedic dialogue showcasing the t r a d i t i o n a l C h i n e s e linguistic art known as xiangsheng, or crosstalk. Li K u a n, a y e a r - o l d crosstalk performer, and his partner engage in snappy interactions with the audience while poking fun at one another. Li seizes everybody s attention when he starts to imitate the aria of a famous Peking Opera master. A ringtone blaring pop music suddenly interrupts proceedings. Unperturbed, Li Kuan ignores it and finishes his improvisation. See, although the music accompaniment was wrong, my rhythm was still quite accurate, right? He jokingly remarks to the audience. Li Kuan is representative of the new generation of crosstalk performers. In this generation, both performers and audiences have varying opinions on this performing art. But this is nothing new or especially alarming: The form has a long history of evolving with time. Performance Anxiety Li Kuan (left) and his partner perform in a Beijing theater. Crosstalk s history can be traced back to hundreds of years ago. It began as a folk art involving singing and talking that originated in north China. Initially, crosstalk was performed by a sole actor. By the early 1910s, it developed basic performance patterns. It can be staged as a singleperson monologue, a two-person dialogue or a multi-person performance. Compared to Western stand-up comedy, crosstalk requires a greater number of skills. Performance skills can be divided into four categories: talking, imitating, telling jokes and singing. This art form has attained popularity, particularly in north China, owing to its ability to elicit giggles from audiences even radio audiences instantly, and showcase the unique charms of the Chinese language. Crosstalk has gone through different periods of development, senior crosstalk performer Meng Fangui said to Beijing Review. He recalled that in the 1980s, crosstalk experienced a period of blossoming. Many crosstalk masters emerged and rose to prominence with their various popular works, said Meng. With the development o f T V p r o g r a m s s h o w c a s i n g v a r i e t y entertainment, crosstalk became a kind of entertainment mainly broadcast on TV instead of

62 62 Culture & Life News From China February 2015 being performed live as it had traditionally been. It was not until the 2000s that the form entered a new period of renaissance. Meng pointed out that TV is a double-edged sword for crosstalk. O n t h e o n e h a n d, T V h a s popularized this performing art, and opened it up to a whole new audience who is for various reasons unable to attend live shows, Meng said. On the other hand, the time constraints inherent in TV broadcasting negate the essence of a form that engages audiences in this manner, he added. Although this doesn t affect crosstalk s performance skills in an artistic sense, it destroys the completeness of a crosstalk piece, said Meng. Generally, a complete crosstalk piece should have an intricate structure comprising dozens of minutes of performance. Actors deliver the punch lines of their jokes in accordance with the audience s reactions and the dictates of comic timing. When a crosstalk piece is shortened into a segment of a TV program, it has to omit a lot of the content it should include, Meng explained. Besides, people have so many entertainment options now and their attention spans have shortened. In 2003, veteran crosstalk actor Li Jindou started an initiative entitled Getting Crosstalk Back Into Theaters, believing this represents the best way to revive crosstalk s fortunes as a performing art. Since then, watching crosstalk in small theaters has become somewhat a craze in Beijing. Every year, a national crosstalk contest is hosted by Beijing TV. Meng observes that younger generations have better educational backgrounds than his generation did. I believe they will have a bright future. The only thing I would plead of them is to stay away from bad influences such as vulgarity or drugs. Maybe the older generation will need to learn from them in the future. Crosstalk is an art that has continually evolved with each successive generation, he said. Senior crosstalk actor Meng Fangui (second right) instructs young performers backstage. The Next Generation For Li Kuan, crosstalk performance is in his blood, having been born into a family of performers in Beijing. I have been surrounded by crosstalk every day since I was born. My family, my relatives and my parents friends have all related to this art. I have mastered most of the necessary skills without special studies, he told Beijing Review. Li Kuan is the apprentice of Li Jindou, who has been a friend of the family since Li Kuan was a boy. The obligation to inherit and develop this linguistic art in his generation weighs heavily on Li Kuan s mind. Underlying its jokes, traditional crosstalk has a hidden set of rules guiding performances that on the face of it, seem to be random. A successful crosstalk must have a core around which actors adopt various kinds of skills, Li Kuan explained. But many of today s crosstalk pieces have a loose structure. They taste like fast food instead of a well-cooked dish. In June 2014, Li Kuan founded a crosstalk club named Kuanhe Teahouse. This club performs on average 15 times a month in four different small theaters in Beijing. The club has 50 regular performers, including five famous senior performers. But it can sometimes play host to 70 performers, because many crosstalk masters like Meng will give special performances at Li Kuan s

63 News From China February 2015 Culture & Life 63 invitation. We are trying to combine traditional performance skills and rules with modern content. In this way, this traditional art can develop into the new era, said Li Kuan. He said the club doesn t aim to make a profit but acts as a vehicle to draw audiences to enjoy the charm of traditional crosstalk. Ticket prices for his club s shows are highly affordable. There are two different ticket prices, 50 yuan ($7.5) or 100 yuan ($15), based on different seating zones, with drinks included. On occasion, the club even gives out free tickets to attract a greater audience. When the cost of renting theaters is subtracted, the club can pay only a very limited salary to its members. Our performers are all diehard fans of this traditional art. Some of them have other jobs, and they come to my club only for the valuable opportunity to perform in a theater and to attain experience, said Li Kuan. His own performing partner is the student of a well-known Peking Opera performer. Traditional crosstalk requires actors to be able to interact with the audience and nimbly adjust their performances through close coordination with their partners, which calls for ample experience of performing live, he said. Song Xiaofeng and Jiang Shaofeng are two young players in Li Kuan s club. They are the protégés of performers who themselves honed their craft under Li Jindou. Song was born in 1990 in north China s Hebei Province and Jiang was born 1987 in northeast China s Heilongjiang Province. In the beginning, both of them were merely avid fans of their masters. I was obsessed with my master s performances and The crosstalk performers of younger generation. asked him to teach me as his disciple. But my master required that I spend over a year in different theaters as a free audience member to train my sense of this art first. Then he believed I would be a qualified disciple and accepted me, recalled Jiang. By day, Jiang is a performer in a large-scale amusement park. He is still a trainee. Song has been performing in the club since it was founded. He also has a job at a wedding planning company. The club has provided precious opportunities for young performers like me. The guidance of those successful crosstalk masters, even on very simple issues, can be of lifelong benefit to us, Song said. To Song and Jiang, their daytime jobs are merely a w a y o f m e e t i n g t h e i r everyday needs so they can continue to pursue their true p a s s i o n o f p e r fo r m i n g crosstalk. Their most fervent desire now is to attain more income from performing crosstalk so that they may concentrate on refining their skills in a performing art with which they have fallen in love.

64 64 Culture & Life News From China February 2015 Traditional Opera Arts of Hunan Province by Ding Ying Central China s Hunan Province has a long history of outstanding opera culture. To d a y, H u n a n s o p e r a traditions have become part of its intangible cultural heritage, and local operas continue to develop and evolve. A Rich Repertoire There are 19 major kinds of local operas in Hunan. These operas not only reflect the wide variety of cultural traditions in the province, but also have connections to Buddhism, Taoism, Confucianism and local religions. Hunan s long-form operas, such as Hunan Opera, Hunan Kunqu Opera and Qiju Opera, have been influenced by many of China s other schools of opera. However, they have been restructured and Actresses of Hunan Kunqu Opera Two performers act in a scene from a traditional Hunan Opera play rebuilt based on local culture. Hunan Opera is popular in east Hunan and the neighboring Jiangxi and Guangdong provinces. It originated during the Ming Dynasty ( ). Originally, the plays would be love stories or based on morality tales. However, in the 1910s and during World War II, many new plays were c r e a t e d t o c a l l f o r democratic revolution and to rise up against Japanese a g g r e s s i o n. I n r e c e n t d e c a d e s, t h e l o c a l government has tried to revive this tradition by o r g a n i z i n g v e t e r a n performers in collecting and preserving the art form s traditional works. In May

65 News From China February 2015 Culture & Life , Hunan Opera was included in China s first b a t c h o f s t a t e - l e v e l i n t a n g i b l e c u l t u r a l heritage. Now Hunan Opera has around 700 fulllength plays, and a further 500 incomplete ones. Hunan Kunqu Opera is a particularly interesting branch of Kunqu Opera. After Kunqu Opera was brought to Hunan from the late 16th century to the e a r l y 1 7 t h c e n t u r y, performers in the province combined local culture and dialect to form a unique addition to Chinese opera. Qiju Opera is another form of opera that Hunan people are proud of. This art form, which originated in southwest Hunan s Qiyang, has a history 400 years longer than that of Peking Opera. Since its inception, Qiju Opera has spread to Guangxi Zhuang Autonomous region, Jiangxi Province, Fujian Province, Guizhou Province and even northwest China s Xinjiang Uygur Autonomous Region, and influenced local operas and plays in these areas. Huagu Opera is a short-form opera that originated in popular folk tunes in Hunan in the 18th century, though it gradually gained popularity in other provinces such as Hubei, Jiangxi, Anhui, Henan and Shaanxi. Zou Shiyi, a former researcher with the Hunan Institute of Art, suggested that farmers originally created the opera as a form of recreation for the working day. He explained that, Huagu Opera, whose name translates directly as flower drum opera, usually features flowers from different seasons, the farm work of these seasons, and tales based around common folk. Its lyrics are generally happy and humorous. The brisk dance moves of Huagu Opera Performers stage a Hunan Shadow Play show generally mimic actions which are part and parcel of rural life in Hunan, such as picking tea, pushing a hand mill and rowing boats. In addition to these better known schools of opera, there are many minor forms of opera and stage performances in Hunan like puppetry and shadow plays. Hunan Shadow Play was also honored in the first batch of China s state-level intangible cultural heritage back in Heritage Preservation Zou has been study-ing local opera for decades. According to his figures, there are only nine professional Qiju Opera troupes today, 30 percent the number in 1983, and only five of them are able to put on regular perform-ances. The staging of Huagu Opera performances has also waned, with only 11 active troupes left today. Smaller operas may not have a single professional troupe dedicated to them. Moreover, those troupes suffer from a lack of performers and lackluster audience turnouts. To Zou, there must be different protection measures for operas according to their current states. He suggested that the government should encourage the development of operas that have audiences but can t generate a profit. Zou also

66 66 Culture & Life News From China February 2015 stressed that operas that espouse traditional cultural values and are economically viable must give priority to training the next generation of performers. To him, creating new, modern plays instead of insisting on traditional versions is of paramount importance. It was suggested by him that taking influence from foreign operas and other Chinese operas would be helpful to Hunan s local operas. Zou is optimistic about local operas future. In his view, traditional operas do not lack an audience. Moreover, the government has paid more and more attention to traditional operas. It has set up intangible cultural heritage protection centers throughout Hunan, which has in turn helped provide capital and performers for traditional operas. Opera will neither wither, nor die, Zou said. To protect local operas, Hunan Province has also adopted many measures to create a good environment for their development, including s p o n s o r i n g r e g u l a r performances of local operas. For example, there is a project called public theater, which provides opportunities to nonprofessional performers and fans of different local operas to perform in p u b l i c. T h e H u n a n G o v e r n m e n t a l s o encourages traditional opera troupes to give touring performances in rural areas across the A scene of Hunan Huagu Opera province. Hunan s local operas have benefited from such policies. Hunan Opera, for instance, went through a hard time owing to an influx of modern culture a decade ago, according to Zhang Kelang, head of the Provincial Theater of Hunan Opera. Back then, it lacked both audiences and performers. Zhang s theater had only 37 performers. A full-size Hunan Opera play requires at least 100 participants. We couldn t give a complete performance of a traditional play at that time, Zhang recalled. Zhang said the theater h a s re c e ive d a h u g e a m o u n t o f f i n a n c i a l support in recent years, and it has invested 9 million yuan ($1.5 million) i n t o n e w p l a y s a n d r e p a i r i n g i t s infrastructure. The theater has also trained 37 young performers in the past 10 years. Now, they are the hope and the future of Hunan Opera, said Zhang.

67 News From China February 2015 Culture & Life 67 Swans Play in Yandunjiao Swan Lake after Snowfall in Shandong Swans play as snow falls in Yandunjiao Swan Lake after a snowfall in Rongcheng, east China's Shandong Province. The Swan Lake is a major part of the Rongcheng Nature Reserve for Whooper Swans and a nest for thousands of migratory swans from Siberia to spend winter Xinhua Fan Changguo

68 68 Tibet Today News From China February 2015 Tourists view swans in snow in Yandunjiao Swan Lake in Rongcheng, east China's Shandong Province. The Swan Lake is a major part of the Rongcheng Nature Reserve for Whooper Swans and a nest for thousands of migratory swans from Siberia to spend winter. (Xinhua/Fan Changguo) TIBET TODAY Tibetan Buddhism College Celebrates Losar in Beijing Beijing, Feb. 16 (China Tibet Online) Monks of the High-level Tibetan Buddhism College of China celebrated the forthcoming Tibetan New Year (Losar) of the Wooden Sheep, as well as the Chinese New Year in Beijing on Feb.15,2015. Over 100 students and staff of the High-level Tibetan Buddhism College of China participated in the activity, including the table tennis matches, basketball matches, tug-of-war competitions, dart games, ring throwing games, word puzzles and drum-beating with closed eyes. The results of a Tibetan calligraphy competition that was held earlier were also released, and eight calligraphy works were awarded prizes. It was the first time the college held a Tibetan calligraphy competition to celebrate the forthcoming Tibetan New Year. Monks who won the various games received vouchers to exchange for prizes such as backpacks, dictionaries, pillows and toiletries for daily use including towels, toothpaste, body wash or shampoo. The college provides free room and board for every monk; therefore they only need to buy some articles of daily use.

69 News From China February 2015 Tibet Today 69 W a n g C h a n g y u, executive vice president of the High-level Tibetan Buddhism College, wrote many scrolls of New Year greetings for the students and teachers of the college. The Tibetanstyled New Year scrolls are a necessity for Tibetan New Year, similar with the C h i n e s e N e w Ye a r, however the traditional T i b e t a n a u s p i c i o u s patterns printed on them make them different. It is customary for the students to celebrate the Chinese lunar New Year and the Tibetan New Year (Losar) each year, and this year the two were celebrated together in advance as the festivals will fall on the same day. As the monks come from different Tibetaninhabited areas in western China, it can be time consuming for them to travel back and forth between different monasteries in Tibet and Beijing. So they will not go back home for family reunions during Losar, instead they will, as usual The monks of the High-level Tibetan Buddhism College of China holding a tug-of-war game to celebrate the Tibetan New Year (Losar) of the Wooden Sheep and the Chinese New Year, which will fall on Feb.19, 2015 go back during the four-month vacation in summer. At present there are three Tibetan Buddhism classes in the College: one for the advanced Tho Ran Pa degree and two for the Nzhing Ram Ba intermediate degree. The monk students of the College come from each of the different sects of Tibetan Buddhism, and from Bonism, which is the original religion of Tibet. Playing a word puzzle game Having a basketball match

70 70 Tibet Today News From China February 2015 The Life of Padma Chojor, a Layman Chams Artist Text & Photo by Dralho Editor s note: In March 2013, A Comprehensive Survey of the Economic and Social Development of Early 21st Century Minority Areas in China started in Beijing as a special project of the National Social Sciences Fund as well as an important innovation program with the Chinese Academy of Social Sciences. The minority population exceeds 100 million in China, and the development of minority areas relates directly with the building of an allround better off society by 2020 in pursuit of the realization of the Chinese dream. This survey is planned to shed new light on the conditions of all aspects of social-economic development within these areas and to assist the central government in formulating their development plan. This big survey has over 20 subprojects, most of which are expected to be conducted in autonomous regions like Tibet along with some autonomous counties and ethnic townships. One subproject, a comprehensive survey of the economic and social development of Lhodra County in Tibet, was carried out by 11 scholars from the Institute of Ethnology and Anthropology at the Chinese Academy of Social Sciences, the Institute of Economics at the Chinese Academy of Social Sciences, the Tibet Academy of Social Sciences, Tibet University, the Party School of Tibet Autonomous Region, and Yunnan Minzu University. In July of 2014, they went to Lhodra County in Lhoka Prefecture to do fieldwork and learn the social-economic development of the county. They conducted a large number of home visits in the town of Lhakhang and the other townships of Ser, Penpa, and Drari and obtained large amounts of relevant data. Lhakhang is the oldest town in Lhodra County. It is named after Kongting Lhakhang, a shrine built during the reign of Songtsen Gampo to drive away evil spirits. The shrine has gone through many vicissitudes in its millennium of existence and still stands in the heart of the town today, undergoing a new round of renovation. Every day in midsummer, a continuous stream of believers from Qinghai and Sichuan drive a long way here to The river valley of Lhodra. worship. There are three neighborhood communities in the jurisdiction of Lhakhang: Lhakhang, Dulu,and Moinqai. The Lhakhang neighborhood community sits on the eastern mountain slope close to where Lhodra River and Penpa River meet. 776 people from 226 families live there. Humid and densely forested, it is rich in resources. Since ancient times, Lhakhang has been known for its high-quality timber and woodwares as well as for being a center of trade and commerce in southern Tibet. 72-year-old Padma Chojor is a local celebrity in the town of Lhakhang. He is a bearer of the national-level intangible cultural heritage known as Layman Chams. During my trip to research the small-scale local border trade with Bhutan, someone from the neighborhood community recommended that I go and talk to Padma Chojor, who went to Bhutan when he was young and knew the history of the border trade very well. On the afternoon of July 18, 2014,this reporter paid a visit to Padma Chojor to hear him recount

71 News From China February 2015 Tibet Today 71 his trips to Bhutan with his father several decades ago and also listen to him talk about his life today. My name is Padma Chojor. My family has been l i v i n g h e r e f o r m a n y generations. My wife, Sonam Lhadron, is 70. She was born here, but her family was not originally from here. Her p a r e n t s w e r e p o o r wanderers who were passing by and decided to stay. Lhakhang, which the locals still refer to as Drupa, is very close to Bhutan, only some 30 kilometers away. The two sides have different climates and different products. They have traded with each other since ancient times. The trade link was the Lhodra river valley, and the main trade season is fall and winter, when the water level is relatively low, making it easier to build temporary bridges across the river. The two sides would both build bridges over the rivers in their countries. It is said that 24wooden bridges were required if all the roads were to be linked, which would require some serious effort. The governor of Lhakhang was responsible for construction on our side, and he usually assigned the work to one village. The experienced bridge builders in the village would then start to work. When all the bridges were finished, they would chop down a big tree and drift it down the river. When people on the other side of the river saw the log, they would know the bridges were all ready, and trade could then begin. The bridges at that time were all rather low. Once spring came, the river would rise and crash the wooden bridges, rendering the valley impassable. New bridges would then have to be rebuilt the next fall. The members of my family were subjects of the Lhakhang Dzong and worked as corvée laborers for the government. I had four brothers and sisters. My family did own some land, but we were taxed so heavily that we did not have enough food, so we had to trade with the Bhutanese for necessary food supplies. When I was about 7 or 8, I The beautiful Lhakhang. went to Bhutan with my father. We were in a team of five, all of which were relatives. We walked along the river driving the loaded donkeys. There was no fixed trade spot in Bhutan. We just walked along the upper reaches of the Lhunzi Zongguri River looking for buyers with the highest bids. Bhutan then was not unlike here, with tiny villages of only several houses. The goods we carried were mostly pulu, hats, dried fish (made from fish caught in the Yamzhog Yumco by the people of Nanggarze, which could be used for medicinal purposes), and butter (the Buddhist Bhutanese do not slaughter livestock, only eating pork or lamb after the animals die of old age and almost free of fat, leading to the people not having enough fat in their diets), with us sometimes smuggling a little bit of salt. Tibetan salt for Bhutanese rice was a major item in bilateral trade then, but the Lhakhang Dzong had a monopoly on the trade, meaning non-government trade of salt and rice was banned. The goods we took back consisted of Bhutanese wooden bowls, wooden boxes, and dyer s madder (used by monks to dye their robes). Sometimes we also smuggled in some rice and corn, but this was punishable if discovered by authorities. On my first trip, we brought back 25 metric pounds of rice on the two donkeys we loaded with goods. Many Bhutanese came over to trade, too. In winters, more than 200 of them would come.

72 72 Tibet Today News From China February 2015 A view of Lhakhang Town. There was no trading market here, either. The Bhutanese all stayed in the villagers homes. There were several big traders with close links with the Bhutanese. The sister of the King of Bhutan was also in trade, and she had a partner on this side. Bhutanese merchants often traveled back and forth between Tibet and Bhutan during the trading season. The Khaju monastery located above our village was in trade, as well, and it was financially powerful. Its monks sometimes went to Assam in India to purchase goods such as silk, satin, and other fabrics. In the 1959 Tibetan rebellion, many people fled the country through here. Later, the military strengthened the border control, and there was a gradual drop in trading activity. Since the start of the Chinese economic reform, some Bhutanese started to come in the summer again, but in smaller groups than before. I heard that more of them went to the commodity fair near the Sakhar Guthok Monastery in Ser Township. In my younger days, I used to be a member of the local militia and a leader of the village branch of the Communist Youth League of China. Later, I worked for 15 years in a power station. During my tenure as a member of the local public security committee, I joined the Communist Party of China. My wife and I are both in our old age and have both retired. We have square meters of land, but we do not do farm work ourselves. Instead, we lease the land to others on a yearly rent of 500 kilograms of wheat, which is more than enough for us. For the two of us, our main job is to look after our own orchard, which is full of apples, peaches, and Sichuan peppers. We do not expect to make any extra profit. It is just something for us to do. To be able to see the fruit trees blossom and bear fruit is a wonderful experience. Subsidies granted for policy considerations from the state account for a big chunk of our income. My wife and I are both veteran CPC members and cadres (with Party standings of more than 30 years), so each of us has a monthly allowance of 300Yuan, adding up to 7,200 a year for the two of us. Those over the age of 60 receive a monthly pension of 55 Yuan, making 1,320 for us in a year. Border residents have a yearly allowance of 1,200, so we also are able to receive 2,400 for that. I was named a bearer of autonomous region-level intangible cultural heritage in 2011, receiving a yearly allowance of 5,000 Yuan. In 2013, I became a national-level

73 News From China February 2015 Tibet Today 73 bearer of intangible cultural heritage. Now I enjoy an allowance of nearly 10,000 for that. So, in total we have got, an income of almost 20,000 Yuan, which is enough for us to lead a comfortable life. I have five children, two boys and three girls. My elder son is an abbot of the Khaju Monastery; the younger one is a driver. My three daughters are all married now; their families are doing pretty well and do not need our help. My priority now is to teach some young men of the local Layman Chams and make sure the art form can be carried forward for future generations. Besides, the village committee and the village Party branch often come and seek our advice on village affairs. We just tell it like it is. That is what we can do for the village. In recent years, a working group has been staying in the village. They have started various construction projects here after consulting with us, while also promoting government policies. In the first year, they concentrated on developing courtyard economy projects. They secured a fund of 400,000 Yuan and used it to help villagers by encouraging them to raise cows, Tibetan chickens, and Tibetan pigs. In the second year, the focus was on building the rural roads. Since many orchards in the village were on the mountains, fruit could only be moved by yaks or people, and there was a big loss of fruit during transportation. Now that a good road is built, we can transport fruit on trucks Padma Chojor, Sonam Lhadron and the author. Padma Chojor and his wife Sonam Lhadron. and tractors. It s faster and more efficient. This year, their plan is to build sheds for livestock and dig irrigation canals for orchards. These projects are closely related to the villagers livelihood and are welcomed by us all. We hope policies like this can continue. Those who have been here all sing praise of L h a k h a n g s n a t u r a l beauty. They adore the green hills a nd t he flowers everywhere. We have been living here all our lives,so we have become kind of immune to its beauty. As the saying goes, the world is an unpredictable place; eve r y t h i n g c h a n g e s. Nevertheless, looking back at the changes in the past several decades, we have nothing to complain about. We are enjoying our lives now.

74 74 Flights Between China and India News From China February 2015 ROUTING FLIGHT NO. DEPARTURE TIME ARRIVAL TIME FLIGHT DATES (NOV2014-MAR2015) New Delhi-Guangzhou CZ :45 19:50 Daily Guangzhou - NewDelhi CZ3027 7:30 11:30 Daily New Delhi-Guangzhou CZ360 23:40 6:50+1 Daily Guangzhou - NewDelhi Cz359 18:50 22:30 Daily Schedule of China Southern Airlines Flights (Summer Season) ROUTING FLIGHT NO. DEPARTURE TIME ARRIVAL TIME FLIGHT DATES (NOV2014-MAR2015) New Delhi-Guangzhou CZ :50 19:30 Daily Guangzhou - NewDelhi CZ3027 7:30 11:50 Daily New Delhi-Guangzhou CZ360 23:10 6:50+1 Daily Guangzhou - NewDelhi Cz359 18:50 22:10 Daily China Eastern Time Table Delhi-Shanghai(Pudong) Flight Number Dep\ Arr Frequency Aircraft Remarks 1APR, OCT, 2015 MU Daily Airbus Shanghai(Pudong)-Delhi 31MAR, OCT, 2015 Flight Number MU563 Dep 2110 Arr Frequency Daily Aircraft Airbus Shanghai Pudong: Terminal-1 Kolkata-Kunming 1APR, OCT, 2015 Kunming-Kolkata Flight Number MU556 Flight Number Dep 0035 Dep Arr 0510 Arr Frequency Daily Frequency Aircraft Boeing 737 Aircraft Delhi IGI: Terminal-3 Kolkata NSCBI: Terminal-2 1APR, OCT, 2015 Mu Daily Boeing 737

75 News From China February 2015 Flights Between China and India 75 Address and Contact Numbers of Chinese Airlines

76 76 Book Review News From China December 2014 Dear Readers, BOOK REVIEW China is attracting growing attention worldwide. The world wants to know what changes are in progress in China, and what impact they will have on the rest of the world. To respond to rising international interest and to enhance the rest of the world s understanding of the Chinese government s philosophy and its domestic and foreign policies, the State Council Information Office, the Party Literature Research Office of the Communist Party of China CPC Central Committee and the China International Publishing Group have worked together to produce this book --- The Governance of China You can come to get the book for FREE or ask for a VPP service as you need. Please us first to reserve the book providing the serial No. Hope to hear from you in the coming future Your comments and suggestions on NFC are also greatly welcome Editor News From China newsfromchinadelhi@gmail.com Address: 50-D, Shantipath, Chanakyapuri, New Delhi Tel: FOREWORD Since the 18th National Congress of the Communist Party of China (CPC) held in November 2012, the new central leadership with Xi Jinping as general secretary has led the whole Party and the people of China in confronting the problems and challengers they face: to drive reform and opening up to a deeper level, to modernize the national governance system, and to marshal their enormous strength behind the Chinese Dream of the great rejuvenation of the Chinese nation. As general secretary of the CPC Central Committee and president of the People s Republic of China, Xi Jinping has delivered many speeches on a broad range of issues. He has offered his thoughts, views and judgments, and answered a series of important theoretical and practical questions about the Party and the country in these changing times. His speeches embody the philosophy of the new central leadership. The book is a compilation of Xi Jinping s major works from November 15,2012 to June 13,2014. It includes speeches, talks, interviews, instructions, and correspondence. The 79 pieces are arranged in 18 chapters, and notes are added to help readers understand China s social system, history and culture.

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80 Postal Regd. No. DL-SW-1/4034/15-17 R.N.I. No /88 February 2015 A snow scenery of northeast China's Jilin Province. Published, Printed and Edited by Mme. Xie Liyan on behalf of the Press Office of the Embassy of the People s Republic of China, 50-D, Shantipath, Chanakyapuri, New Delhi Tel: , Fax: Printed at A.K. Printers, S-217, Bank Street, Munirka, New Delhi , Ph: Chinese Embassy Website: Website of Foreign Ministry of China: newsfromchinadelhi@gmail.com webmaster@mfa.gov.cn PDF Version of this Issue is available at