News & Reports 2011-05-07

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In This Edition
 
Analysts say security issue will top the agenda in the upcoming Sino-US Strategic and Economic Dialogue in Washington.
 
A senior Chinese official reiterates that China does not deliberately seek trade surplus with the United States.
 
Security is tight around the convention centre in Indonesia's capital Jakarta as ASEAN delegates gather for their annual meeting.
 
Farmers in South China face difficulties with their spring plowing and planting.
 
 
Hot Issue Reports
 
3rd China-US Strategic & Economic Dialogue to Focus Security Issue
China and the United States will launch the third Strategic and Economic Dialogue in Washington D.C. next week. Economic and security issues will be the two focuses in this year's dialogue. Analysts say compared with the previous sessions which mainly discuss economic issue, the security issue will be on this year's top agenda.
 
Wei Tong takes has more.
 
Kenneth Lieberthal, director of John Thornton China Center, Brookings Institute says security issue would become the key topic for the China-US strategic dialogue. The two countries will discuss the current international security situation and how to promote cooperation in the security sector.
 
"I do think there is a likely to be a larger role especially for the security side of the relationship. The US has, for two years now sought to increase the security dialogue and to integrate the military dialogue with the diplomatic and other dimensions of our relationship. And I think this strategic and economic dialogue for the first time will have substantial provision exactly for that."
 
Lieberthal has not denied the importance of the economic issue in the dialogue. He says some questions that remain controversial between the two economies will still be discussed as before.
 
The questions include China's market economy status, the restriction of US high-tech products' imports to China, the intellectual property rights disputes and so forth. Although the topics are the same as before, the aspects that are to be discussed are different.
 
"I think if you look at the substance you've seen some changes. My guess is that the currency issue will be less central and my guess is issues concern in Chinese investment in the United States will be more important than they were last year. The issue of indigenous innovation and state procurement in China came up last year but these were relatively new issues last year. I think they are now more mature issues since there have been a lot of discussion I think they may play more central role so I wouldn't regard this is a simply repeat of last year I think that would be wrong. "
 
Albert Keidel, a senior researcher from the Atlantic Council, hails the strategic and economic dialogue a good platform to beef up the mutual trust between China and the US.
 
"I think it does an enormous job in improving mutual trust because the principle to get to sit down each other and have hours and hours of talking in a frank way can promote mutual trust. So in the future, when they need to talk about an issue, they have the big reserve and similarities. It will have a very strong and positive effect on relevant issues."
 
Kenneth Lieberthal says unlike the strategic dialogues between the US and Japan and Australia, which only target diplomatic and security issues, the China-US dialogue is integrated with economic issues, which forms a unique dialogue.
 
For CRI, I am Wei Tong.
 
China Says It Is Not Deliberately Seeking a Trade Surplus with the U.S
China has reiterated that it is not deliberately seeking a trade surplus with the United States.
 
Chinese vice Finance Minister Zhu Guangyao made the remarks ahead of the annual Strategic and Economic Dialogue in Washington D.C.
 
"China's position is very clear that we are not deliberately pursuing a large trade surplus. The objective of deepening Chinese economic structural reform is to ensure the economy develops in a sustainable way."
 
A key cause of friction between Beijing and Washington is the U.S. trade deficit with China.
 
Some U.S. lawmakers believe that an undervalued yuan is a root cause of the trade imbalance, saying this gives Chinese companies an unfair price advantage in international trade.
 
But Zhu Guangyao said China and the United States have different views on yuan exchange rate reform, with the United States stressing appreciation of the currency.
 
"China's view remains that the goal of our reform is to reform the renmenbi exchange rate formation mechanism. But the U.S. side stresses more on the range of renminbi's appreciation. On this specific issue, I frankly acknowledge that China and the United States have different views. Therefore, we need to have discussion."
 
Zhu also made clear China had concerns of its own that would likely be aired in the discussions.
 
Turning the focus toward challenges faced by the United States, Zhu said China is paying high attention to the U.S. debt and fiscal deficit.
 
"Regarding the fiscal clean-up, we hope that the United States will be able to adopt effective measures based on President Obama's proposal."
 
The two-day dialogue will be co-chaired by U.S. Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton. China's delegation will be led by Vice Premier Wang Qishan and State Councilor Dai Bingguo.
 
US Considers Cutting Aid to Pakistan
The US Senate Foreign Relations Committee has held a hearing to reevaluate the US-Pakistani relations as some lawmakers have considered suspending the financial aid to Pakistan.
 
Lawmakers debated whether they should cut the aid they are expected to give Pakistan now that al Qaeda leader Osama bin Laden has been found and killed by US forces.
 
Senator Ben Cardin of Maryland.
 
"We have to be prepared to cut off aid or at least to suspend aid if in fact the conditionalities are not being met, and we have a responsibility to the tax payers of this country."
 
Pakistani policy expert Michael Krepon hints that Pakistan may not need US financing.
 
"This relationship won't be salvaged unless Pakistan gets its house in order and unless we are clearer amongst ourselves about what we can and can not expect from Pakistan. Pakistan is a weak country with strong powers to resist US pressures."
 
The US Congress approved $20 billion dollars over the past decade for Pakistan, making it one of the biggest US aid recipients, with about half to reimburse Pakistan for help in fighting extremists.
 
Security Tightens as ASEAN Ministers Gather in Jakarta
Security is tight around the convention centre in Indonesia's capital Jakarta as delegates from the Association of South East Asian Nations or ASEAN, gather for their annual meeting.
 
Cambodia-Thai relations is expected to be a hot topic at the two-day summit.
 
On the sidelines of the meeting, Indonesian Foreign Minister Marty Natalegawa met with his Cambodian counterpart Hor Namhong, discussing the security at the Thai-Cambodian border.
 
"On top of the ASEAN related subject matters, His Excellency was kind enough and I also took the initiative of sharing with him where we are in ASEAN chair's effort to facilitate the talks between Cambodia and Thailand on this border issues. Cambodia has formerly accepted the terms of reference of the Indonesian observer team. "
 
Fighting between Thailand and Cambodia appeared to have eased after 12 days of artillery and gunfire that has killed 18 people on both sides, but there was no let-up in the diplomatic battle ahead of the ASEAN summit.
 
Cambodian foreign minister Hor Namhong said they want to see Indonesian observers at the Thai-Cambodia border as soon as possible.
 
"We also exchange view on how to deploy the Indonesian observers as soon as possible at the border and I hope that after now what minister Marty and will meet with the Thailand foreign minister, there could be arranged the deployment as soon as possible of the Indonesian observers."
 
Indonesia is the 2011 chair for ASEAN, which consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
 
Drought Plagues Southern and Central China despite Arrival of Rainy Season
The onset of China's rainy season in June is expected to bring some relief to the drought-affected areas in the South. But for now, farmers there continue to face difficulties with their spring plowing and planting. Ordinary people are affected as well as drinking water is in limited supply. Our reporter He Fei has the details.
 
Continuous droughts have hit south and central China since the beginning of spring. In Hubei, Jiangxi and Anhui provinces, the amount of rain that has fallen has been far from adequate, making spring plowing and planting extremely difficult.
 
"The drought here is serious. People can't transplant rice because of the water shortage."
 
"It is time to plant lotus and wild rice shoots, but we can't do it now since there is little water."
 
In Jiangxi Province, the water levels of main rivers and lakes have hit their lowest point ever. Experts in central China's Hubei Province believe the drought there could reach the level of extreme weather.
 
Most lakes have been drying up, causing a blow to the local fishing industry. Water levels have dropped sharply along the middle and upper reaches of the Yangtze River, making safe and sound shipping difficult.
 
Xu Kang is from the Marine Department in Hukou County, Jiangxi Province.
 
"We set a maximum draft of 4.5 meters, and stop big boats from coming into the river and getting stuck."
 
To reduce the losses caused by the drought, some local governments have sent professional drought resistance teams to stricken areas.
 
Wen Xuesong is from the Flood Control and Drought Relief Office in Ganzhou, Jiangxi Province.
 
"We need to assure water supply for people and livestock. If necessary, we can stop power generation in reservoirs."
Wang Shigong, Deputy Director of the College of Atmospheric Science at Lanzhou University, believes the drought in these areas will see some relief with the approach of the rainy season.
 
"Generally speaking, summer monsoons come in May, which brings the sea moisture to the inland areas. Even if the drought continues in May, it should be alleviated in June with the onset of the rainy season."
 
The State Flood Control and Drought Relief headquarters says about 500-thousand hectares of rice fields in the south were still short of sufficient amounts of water as of Wednesday. At the same time, drinking water supplies are limited for one million people and 400-thousand livestock.
 
For CRI, I'm He Fei.
 
Japan's Increasing Demand for Aquatic Products
Although concerns about the safety of Japanese aquatic products increases since sea water is polluted by the failed nuclear power plant, Japanese preference for aquatic products has never declined. Therefore, Japanese companies are importing more aquatic products from China.
 
Li Ningjing has the story.
 
The sea outside of Fukushima produces one third of Japan's annual aquatic output. But after the earthquake, everything changed: sea water is polluted by nuclear radiation, sea food processing factories are destroyed,.
 
Japan is the world's biggest aquatic products consuming country. Although there is a big concern about safety of local aquatic products, Japan's domestic demand hasn't declined, which leads to supply shortages.
 
How will Japanese companies fill the gap between supply and demand? Liu Yaobo, chairman of Yantai Da Chen Food Co., says,
 
"Because the sea water is polluted, they could catch few fish there, thus they must import more."
 
Before the earthquake, Japan imported thirty percent of its aquatic products from China. Now many Japanese companies asked their Chinese partners to advance the time of delivery. Workers in these factories work 12 hours a day, which still doesn't meet the demand.
 
Li Deshan is the general manager of Yantai Jia Hong Food Co. His company is busy processing aquatic products and exporting them to Japan. He says,
 
"Exports of my company increased 20 to 30% this month."
 
Due to the increasing demand, many Chinese factories are expanding their production scale. Liu Yaobo says his company plans to hire more people.
 
"We plan to hire 300 to 500 more people. Now I have 1500 workers in my factory."
 
It's nature for a factory to expand when demand increases. But some people recall the pickled vegetables shortages in Korea last September. Many Chinese factories stock-piled Chinese cabbages and planned to export them to Korea. But the pickled vegetable shortage was over only 2 months later. Imports of Korea declined sharply. Tons of cabbages stocked by Chinese factories ended up getting rotten in storehouses.
 
Will Chinese aquatic production companies face similar problems? Li Deshan's answer is No.
 
"If they want to restore aquatic production, they must have fish, as well as additives and workers. This is different from growing vegetables. For aquatic production, there must be a raw material procurement process. I believe the shortage will not end in the short term."
 
Instead of restoring their manufacturing ability, Japanese companies plan to transfer massive production to China. They have already been making on the spot investigations, and it's estimated that the production shift would happen in the second half of this year.
 
For CRI, I'm Li Ningjing.
 
Mother's Day- Stories of Mom in a Different Light
Many times during the year we might think of Dear Mom, but sometimes, it's only once a year that we remember to take the time to give thanks to the woman who gave us life.
 
May 8 is Mother's Day in many countries in the world and so we asked some women here in China to tell us some memorable stories about their mothers and moments which revealed them in a different light.
 
Andrea Hunt has more:
 
One of the most important and enduring relationships in a woman's life is that of mother and daughter. Although life with Mom isn't without its bumps or even roller coasters of emotions, it's an ever present relationship. And yet, from childhood to adulthood, often, the way women perceive or appreciate their mothers changes.
 
Maybe it's when mothers offer moral support when no one else will. Even adults sometimes wish they could have mom's care when they're sick. This was the case for Kathleen Wang from Hangzhou during a period of vulnerability in high school. Even with a full time job, her mother made painstaking efforts to be there when her daughter needed it.
 
"At school, they asked us to remain at the residence and not go outside to find something soft or some food I could eat. My mother, at that time, cooked the food with great care, soft, so I could eat it, nutritious and delicious. She brought me lunch and dinner every day for one month."
 
On the other hand, sometimes distance apart can benefit the mother-daughter relationship since together is more appreciated. For Sophie Lu from Nanning, this time brought feelings out into the open and she saw her mother in a new light.
 
"I remember that it was the first day until high school and I was twelve years old and I needed to leave my family and stay at a dormitory for the week. So, it was the first time to see my mother's tears, my mother's love was pressed into my heart from that moment."
 
Aside from maternal love, it can be also what a mother chooses to share with her daughter that makes her daughter view her differently. Like many daughters, Vicky Wang from Shaanxi Province also grew up thinking her mother knew everything and was stronger than anyone. However, seeing her mother's vulnerability made her see things differently from then on.
 
" I just thought my mother was someone who didn't care about her work because I thought she was just like a house wife. Her company had a very big meeting and some of them needed to give a speech in front of many people and my mother also needed to do that. And she got very nervous and her face turned red and it took her almost two months to overcome this fear. So, I think sometimes, the mother is just like a child. They also need to be cared for."
 
A mother-daughter relationship is complex and always evolving. Sometimes in times of vulnerability or need, we can finally get to know our mothers. This includes moments when we stop seeing them as the invincible maternal figure who has all the answers, but as the women or friends that they can be.
 
Canton Fair China - Annual Chinese Commodities Fair Closes with Trade Volume up
The 109th China Import and Export Fair of Canton Fair has closed in Guangzhou, capital city of south China's Guangdong Province, with a growth in trade volume.
 
Liu Jianjun, the fair's spokesman, said that in sharp contrast to sad predictions that the attendance might drop by 5 percent, a record-high presence of 2 million foreign traders was registered, with contracts worth around $36.9 billion U.S. dollars, up 5.8 percent year on year.
 
However, instability in the Middle East dragged down trade volume at the fair with the region by more than 11 percent in terms of volume.
 
The appreciation of China's currency was traders' greatest concern at the fair. Many traders said they are worried that the appreciation of yuan, along with surging labor pay and raw material costs might drive many Chinese manufacturers out of the trade.
 
Guo Guifeng, a businessman from Guangdong Province, is one of them.
 
"We are concerned about the fluctuation in exchange rate during the implementation of contracts, because the rate is unstable now. And short of labor also poses a big problem in recruitment of workers. Despite of much higher salaries, recruitment remains a headache for us. People have now switched from war on prices to competition on services."
 
To take the challenge from an uncertain market situation, many companies have adopted various tactics.
 
Zeng Weihe is a businessman from Ningxia Hui Autonomous Region.
 
"First, we've made adjustment to sales ratio of domestic and overseas markets. By raising the ratio of sales on domestic market, we could alleviate pressure caused by capital. Second, we've adopted financial means and focus on the exchanges rate of currency. Third, we'll make direct investments overseas."
 
According to the fair's organizers, emerging markets are the main contributors to the trade growth at this year's fair. Trade with Brazil, India, South Africa and Russia have all grown by more than 30 percent.
 
Newspaper Picks
 
Xinhua News: A Chinese child prodigy has recently stirred up praise as well as doubt and satire on the internet.
 
At the age of two, he demonstrated a strong interest in watching CCTV news; at seven, he adopted the habit of reading the People's Daily newspaper. Huang Yibo, now 13, has published more than 100 articles in newspapers and magazines.
 
Huang's popularity started with a picture he posted on his microblog last week. In the picture, he is shown reading some documents, posing like a professional politician and wearing an astonishing "five-bar" armband, which indicates he is the chief of Wuhan's "young pioneers".
 
Some netizens believe Huang's behavior and mentality are not natural for a boy of his age.
 
His father said they don't expect him to become a politician when he grows up and they taught him to read books and newspapers at a young age to broaden his horizons.