WORLD: CLOSER CHINA-OCEANIA TIES P.18 | NATION: CAMPUS SOCCER PROGRESS P.

26

VOL.60 NO.14 APRIL 6, 2017 WWW.BJREVIEW.COM

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RMB6.00
USD1.70
AUD3.00
GBP1.20
CAD2.60
CHF2.60
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VOL.60 NO.14 APRIL 6, 2017 CONTENTS

EDITORS DESK BUSINESS

02 A Champion of Globalization

THIS WEEK
12 COVER STORY
34 Cooling Down the Fever
Escalated measures rein in
hot property
36 Market Watch
COVER STORY CULTURE
16 All Roads Lead to Asia
BFA conference highlights the regions 42 Bridging a Cultural Divide With
role in globalization Music
A traditional Chinese musical
instrument broadens its appeal
WORLD
22 A New Deal on the Cards? Taking the Economic Pulse FORUM
Joint efforts needed to advance
China-U.S. economic exchanges
Boao Forum for Asia promotes 46 Is It Feasible to Levy a Tax on
economic solutions Robots?
NATION
24 From Trash to Treasure NATION EXPATS EYE
Sorting rubbish helps improve the 48 Brought up in Beijing
environment P.26 | Campus Kickoff A Bangladeshi student enthuses
29 Voices and Visions over Chinese language
International forum highlights
New strategy grooms Chinas budding
womens health and happiness football talent
30 Sailing Into the Limelight
Spectacle shows off elite young
artistic talent CULTURE
P.40 | Health Across the Himalayas
Acupuncture provides a new growth point
in Sino-Indian relations

WORLD
Cover Design: Wang Yajuan
P.18 | Trade Transcends Sides
Economic ties underpin Chinas
2017 Beijing Review, all rights reserved.
relationship with Australia and NZ

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Beijing Review (ISSN 1000-9140) is published weekly for US$61.00 per year by Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080, Periodical Postage
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 EDITORS DESK
A News Weekly Magazine
Published Since 1958 A Champion of
Globalization
President: Li Yafang
Senior Executive Advisor: Wang Yanjuan
Associate Editors in Chief: Li Jianguo, Ding Zhitao
Assistant President: Li Zhenzhou

Executive Editor: Yan Wei

Assistant Executive Editors: Zan Jifang, Liu Yunyun, Yu Shujun Globalization and free trade dominated off capital, technological, industrial and peo-
Production Director: Yao Bin
Editorial Administrators: Zeng Wenhui, Shi Bosen, Hou Beibei discussions at the Boao Forum for Asia ple-to-people exchanges with the outside
Commentators: Zhang Zhiping, Lan Xinzhen (BFA) Annual Conference held in Boao, south world will determine the future of the world
Opinion/Culture Editor: Yan Wei
World Editor: Liu Yunyun
Chinas Hainan Province, from March 23 to economy.
Nation Editor: Zan Jifang 26. With the theme Globalization and Free The U.S., the UK, France and China are
Business Editor: Zhou Xiaoyan Trade: The Asian Perspectives, the event DOOEHQHFLDULHVRIJOREDOL]DWLRQ7KH86DQG
Editorial Consultants: Bryan Michael Galvan, Dominic James Madar,
Chris Surtees, Sudeshna Sarkar ended with a declaration on economic the UK were once the champions of the
Staff Reporters: Tang Yuankai, Wang Jun, Yin Pumin, Pan Xiaoqiao, globalization. LQLWLDWLYHZKHQWKH\UHDSHGEHQHWVIURPLW
Yuan Yuan, Wang Hairong, Yu Lintao, Bai Shi, Li Fangfang, Deng Yaqing, As anti-globalization sentiment is resur-
Ji Jing, Li Nan, Lu Yan However, a responsible government should
Visual Director: Pamela Tobey gent among some major economies, this act to solve the problems of globalization
Photo Editor: Wang Xiang years BFA conference highlighted the inter- when they occur.
Photographer: Wei Yao
Art: Li Shigong
national communitys attention, especially China will further its opening up and op-
Design Director: Wang Yajuan that of Asian countries, to the issue as well as pose protectionism in any form. It will solve
Chief Designer: Cui Xiaodong Chinas efforts to defend globalization.
Designer: Zhao Boyu economic and trade disputes with relevant
Proofreading: Ma Xin 6LQFHWKHJOREDOQDQFLDOFULVLVWKH countries through negotiation in order to
Distribution Director: Hu Keqiang
world economy has been plagued by slug- SURPRWHDEDODQFHGPXWXDOO\EHQHFLDODQG
Human Resources: Zhang Yajie gish growth. Populism has surfaced in major
forward-looking multilateral economic and
Marketing/PR Director: Pan Changqing economies such as the U.S., the UK and
Legal Counsel: Yue Cheng trade system.
France.
North America Bureau The nation is sharing development op-
Its wrong and futile, however, to
Deputy Chief: Ding Ying
simply attribute the current problems to portunities with countries involved in the
Tel/Fax: 1-201-792-0334
E-mail: dingying@bjreview.com globalization. Silk Road Economic Belt and 21st-Century
Africa Bureau The BFA declaration says, The root Maritime Silk Road Initiative. At present, over
Chief: Li Jianguo cause of these structural problems is not 100 countries have joined the initiative, and
Tel: 27-71-6132053 65 of them have signed memoranda of
E-mail: casa201208@hotmail.com economic globalization per se, but the failure
of the existing systems of global governance understanding on cooperation with China.
*HQHUDO(GLWRULDO2IFH
Tel: 86-10-68996252 to keep up with profound changes in the Beijing will host the Belt and Road Forum for
Fax: 86-10-68326628 world economic landscape. Thus, de-global- International Cooperation in May to demon-
English Edition strate Chinas commitment to globalization.
Tel: 86-10-68996250 ization measures are unlikely to solve the
Advertising Department problems, and could even create new chal- In the meantime, China is actively promoting
Tel: 86-10-68995807 lenges for global growth. It suggests that talks on regional trade arrangements includ-
E-mail: ad@bjreview.com.cn
Distribution Department the world must actively adapt to the force of ing the Regional Comprehensive Economic
Tel: 86-10-68310644 economic globalization and reform global Partnership and the Free Trade Area of the
E-mail: circulation@bjreview.com.cn
governance. Asia-Pacific in a bid to build a more open
Published every Thursday by Whether countries can accommodate and fair international trade and investment
BEIJING REVIEW, 24 Baiwanzhuang Lu,
Beijing 100037, China. the trend of globalization or would rather cut system. Q
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2 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com

 THIS WEEK

XINHUA

JOYOUS CELEBRATION
Children from the Zhuang ethnic group in Donglan County, Guangxi Zhuang Autonomous Region, and
their parents celebrate Sanyuesan Festival, which fell on March 30 this year.
Also known as the Zhuang Song Festival, it is the most important celebratory event for the ethnic group,
when they hold a variety of folk activities, including singing, on the third day of the third month in the
Chinese lunar calendar.
http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 3
THIS WEEK SOCIETY
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A Time for Remembrance
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Zero Hunger Plan
Chinas Ministry of Agriculture (MOA)
and the UN World Food Programme
(WFP) on March 28 jointly announced
the launch of a strategic plan to
address food security in China and
other developing countries.
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ing food security and improved
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Sustainable Development.
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hope to reduce stunting in Chinese
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other developing countries.
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4 BEIJING REVIEW APRIL 6, 2017
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making its experience in reducing
hunger an example for countries
seeking to replicate such success.
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and the EU.
Fewer Fees
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across the country.
The charges include service fees
for environmental monitoring and
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according to a notice released by
the Ministry of Finance and the
National Development and Reform
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duct businesses and access public
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and redundant procedures.
To simplify them and reduce
burdens on businesses and
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since been canceled or delegated to
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departments.
Easier Job Access
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students pursuing higher education
degrees in China.
According to a circular issued
by the Ministry of Human Resources
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postgraduate degree or higher from
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versities can be offered employment
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of Public Security.
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obtained permanent residence
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permanent residence enjoy the
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purchases and schooling.
Elderly Care Services
Chinese civil affairs authorities have
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policies.
Private senior care institutions
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there are challenges due to red tape
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continue to be eased for the private
http://www.bjreview.com

sector segment providing senior
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and subsidies.
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Investment in Science
The National Natural Science
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tution directly under the jurisdiction
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DKNNKQP universities in inland regions since
Funded programs included
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foundation also launched research
projects into areas including
cognitive robotics and piloted basic
science programs on craton damage
and the evolution of land.
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tion security.
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encourage scientists to continue to
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push boundaries in research and
development.
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http://www.bjreview.com
THIS WEEK
XINHUA
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Xinjiang Students
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for courses in inland schools and
universities this year.
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regional education department.
Flower Bower
Ethnic minority students have
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gifted students better education and QP/CTEJ1XGTEJGTT[VTGGUDNQUUQOGFCVVJGRCTM
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:KPLKCPIJCXGDGGPVCWIJVCVKPNCPF The languages are used in West RCVKPIEQWPVTKGU)WQ9GKCPQHEKCN
high schools so far. Most of these #UKC1EGCPKCVJG%CTKDDGCP#HTKEC KP$(57URWDNKEKV[FGRCTVOGPVUCKF
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after graduation. ENQUGTVKGUYKVJ%JKPCWPFGTVJG OQTGUVWFGPVUYKVJNCPIWCIGUMKNNU
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#HTKECPCPF1EGCPKCPVQDQQUVVCNGPV routes. VTKGUCNQPIVJG$GNVCPF4QCFTQWVG
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UEJQQNQHEKCNUCKFQP/CTEJ YJGTG/CQTKKUCPQHEKCNNCPIWCIG and plans to increase the number
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all countries that have diplomatic
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XINHUA
Sweet Competition
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competitors.
APRIL 6, 2017 BEIJING REVIEW 5
THIS WEEK ECONOMY
AIIBs New Members
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The approved applicants
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Asia Annual Conference in Hainan
Glass Manufacture Upgrading
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6 BEIJING REVIEW APRIL 6, 2017
Province that the participation of
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nance of shared bikes. The industry
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investment outside of Asia.
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has members from almost every
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applications being considered by
our board of governors later this
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Regulations
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has led bicycle associations in China
to produce a draft guideline to
regulate the industry.
Led by bicycle associations
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such as Mobike and ofo.
It comprises standards on the
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complaints recently.
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Shanghai Consumer Council.
Random parking and high
malfunction ratesthough often
caused by vandalsare at the top
of the list.
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companies hire one maintenance
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are on the streets of Chinese cities.
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members should be hired to support
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the industry.
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life of three years for all shared bikes
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hour hotline to handle customer
complaints.
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ion and is expected to take effect in
May.
Unicorns Boom
After 2014
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Ministry of Science and Technology.
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ministrys Torch High Technology
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private funding sources.
Chinas unicorns are spread over
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A report published by the
center earlier this year said half of
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city of Coventry.
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that the second vehicle to come
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pollution in urban areas.
The factory opening came
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http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 9

THIS WEEKPEOPLE & POINTS
HIV/AIDS ACTIVIST ATTENDS UN MEETING

Zhang YinjunZKRIRXQGHGDQRQSURWSURJUDPWRKHOS\RXQJSHRSOHDFURVV&KLQD
Curbing Financial
prevent the spread of HIV/AIDS, attended a two-week meeting of the UN Commission
on the Status of Women (CSW), which began on March 13, at the UN Headquarters in
Risks
New York City. China Financial
The CSW is the principal global intergovernmental body for the promotion of gen- Weekly
der equality and the empowerment of women.
Zhang quit her job at the Ministry of Health and set up the AIDS Prevention March 20
Education Project for Chinese Youth (APEPCY) in 2006. She and her team have carried Since the beginning of 2017, the
out their program by offering classes and lectures to promote sex Chinese Government has constantly re-
education in Chinese schools to prevent HIV/AIDS transmission iterated its commitment to preventing
among youths. DQGFRQWUROOLQJQDQFLDOULVNV
Since its establishment in 2006, APEPCY has set up more Various kinds of financial risks are
than 1,000 AIDS prevention centers in more than 20 provinces not isolated, but closely intertwined.
and cities to explore new ways to teach AIDS prevention and sex For instance, bond defaults and non-
education. More than 10 million students, teachers and parents performing loans both result from poor
KDYHGLUHFWO\EHQHWHGIURPWKLVZRUN performance of enterprises. Since the
latter half of 2016, bond defaults have
soared in China. The high leverage rates
and declining profits of some state-
owned enterprises have weakened their
of collecting evidence of violation. abilities to repay debts.
Creativity and IPR As a matter of fact, judicial authorities are
aware of the problem and have awarded huge
At the end of 2016, non-performing
loans at commercial banks amounted to
Protection compensations to victims in some cases in
recent years.
1.5123 trillion yuan ($219.7 billion), with
the non-performing loan ratio reaching
Nanfang Daily Increasing the cost of IPR violation can not 1.74 percent.
only serve to curb illegal activities, but also en-
March 23 able enterprises to realize the value of IPRs. As
The supply-side structural reform
with its focus on the five tasks of cutting
Many Chinese businesses complain that they a result, valuation of IPRs in the process of cor- overcapacity, destocking, deleveraging, re-
can hardly stand out in market competition porate investment and financing will also rise, ducing corporate costs and improving weak
through technological innovation owing to thereby stimulating enterprises motivation for linksrepresents an important measure
the prevalent violation of intellectual prop- innovation. to dissolve financial risks. Among the five
erty rights (IPRs). On the one hand, the light As China is undergoing economic restruc- tasks, deleveraging is the one most closely
punishment for IPR infringements has em- turing and transformation, its imperative to UHODWHGWRWKHQDQFLDOVHFWRU&KLQDoVRYHUDOO
boldened transgressors to take risks for the protect IPRs and create a sound environment leverage rate is not high, but the leverage of
purpose of gaining high returns; on the other for innovation in order to fully play the role of WKHQDWLRQoVQRQQDQFLDOHQWHUSULVHVLVWKH
hand, enterprises often fail to effectively knowledge, technology and information in worlds highest.
VDIHJXDUGWKHLU,35VRZLQJWRWKHGLIFXOWLHV boosting productivity.

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10 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com

 THIS WEEK
Is Traditional Culture Stil Relevant?
China Youth Daily
March 27
Traditional culture has been receiving an increasing amount of attention in recent years. However,
there are some who question whether traditional Chinese culture, formed several thousand years
ago, is outdated today. To answer such a question, one needs to make clear what culture is.
Culture consists of both tangible and intangible items. The former includes artifacts and tech-
niques, while the latter is made up of habits, rules and institutions as well as ancient wisdom such as
thoughts and ethos.
Artifacts and techniques, no matter whether they are traditional or modern or Eastern or
Western, are destined to become outdated. However, intangible culture may not necessarily go out
of fashion.
For instance, IBM personal computers were popular worldwide during the 1990s, but they are
obsolete today. Nevertheless, IBM still exists. Some day in the future, the company may disappear,
EXWWKHLGHRORJ\EHKLQGFRPSXWHUWHFKQRORJ\ZLOOFRQWLQXHWRLQXHQFHKXPDQVRFLHW\
Another example is an ancient cooking vessel, the bronze Ding which dates back to the Shang
Dynasty (1600-1046 B.C.). These vessels are out of use now because other pots are more conve-
nient to use. However, the dining habits and rituals associated with the object have evolved to this
day, and the wisdom related to national governance and handling interpersonal relations inscribed
on such historical artifacts is still relevant today.

FIGHTER JET DESIGNER AWARDED IN PAKISTAN

One way to reduce the corporate lever-
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to improve enterprises ability to withstand
risks. Debt-to-equity swaps are another mea-
sure to deleverage.
Massive stimulus measures are not advis-
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reforms are more important and should be
carried through.
Yang Wei, Deputy Director of the Science and Technology Department of the Aviation
Industry Corp. of China (AVIC) and chief designer of the FC-1 Fierce Dragon, or JF-
17 Thunder, was granted the Star of Excellence medal, the third highest honor and
civilian award in Pakistan, by Pakistani President Mamnoon Hussain in Islamabad on
March 23.
Yang, 54, has received the honor for his contribution to
modernizing Pakistans national defense.
In January 2001, Yang was appointed chief designer of the JF-
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AVIC said in April 2015 that 50 such jets had been commis-
sioned to Pakistan and another 50 would be delivered to the
country in three years.

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http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 11

COVER STORY

TAKING THE
ECONOMIC
PULSE
Collective wisdom on how to meet challenges and
seize chances at the Boao forum By Li Nan

O
n March 24, Yang Kai, Chairman of China
Huishan Dairy Holdings, a company that
covers the entire dairy value chain from
plantation to dairy farming and manufactur-
ing and is based in northeast Chinas Liaoning
Province, issued an announcement.
p,QOLJKWRIWKHVLJQLFDQWGHFUHDVHLQWKH
share price of China Huishan Dairy Holdings
in the morning, the company requested the
Stock Exchange of Hong Kong to halt trad-
ing in its shares with effect from 1:00 p.m.
today, it said. The company will issue an
announcement as soon as practicable after
it has completed its inquiries.
The significant decrease refers to a
plunge of more than 90 percent in the com-
panys stock price, which saw Huishan Dairys
market value diminish by nearly $4 billion.
The share price plummeted from 2.81 Hong
Kong dollars ($0.36) to 0.25 Hong Kong dol-
nesses is too high and needs deleveraging.
On the same day that Huishan struggled
with its loss, the 2017 annual conference
of the Boao Forum for Asia (BFA) in south
Chinas Hainan Province was holding a ses-
sion on deleveraging.
The theme of this years conference,
held from March 23 to 26, was Globalization
and Free Trade: The Asian Perspectives. The
aim was to promote economic exchange, co-
ordination and cooperation within Asia and
between Asia and other parts of the world.
Over 1,800 economists, entrepreneurs and
government officials shared their views on
major economic issues.
This years conference highlighted the
challenges in Chinas supply-side structural
reform and the opportunities brought by the
Silk Road Economic Belt and 21st-Century
Maritime Silk Road (Belt and Road Initiative).
XINHUA

lars ($0.032), the sharpest drop in the history

of Hong Kongs stock market. It was also
the second time that the company had sus-
pended trading in three months.
The debacle, triggered by Huishans
hefty amount of debt, left the Chinese pub-
lic buzzing. The companys latest financial
report shows its overall debt amounted to
21.1 billion yuan ($3.06 billion) by the end of
September 2016, accounting for 62 percent
of its total assets.
Huishan Dairys high asset-to-debt ratio
Curing pain points
The supply-side structural reforminitiated
in late 2015 to cut excess capacity, destock,
deleverage, lower corporate costs and improve
weak economic linkswas one of buzzwords
at this years BFA conference.
Although Chinas overall debt volume is
not high, there are problems in its structure,
Li Yang, President of National Institution for
Finance and Development, said, adding that
debt in enterprises, especially state-owned
According to data from the Ministry of
Finance, SOEs total debt climbed to 89.56
trillion yuan ($13 trillion) at the end of
February, up 11.6 percent year on year. This
means debt takes up 65.88 percent of SOEs
total assets.
Debt in the resource and raw material
sectors is worrying, said Zhu Min, a Chinese
is not unique in China. Many analysts believe HQWHUSULVHV62(VLVDVRXUFHRIFRQLFWLQ economist and former Deputy Managing
that the overall debt ratio for Chinese busi- the countrys debt structure. Director of the International Monetary Fund,
12 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com
 Vice Premier Zhang Gaoli (center) meets with members of the BFA Board of Directors during the 2017 BFA Annual Conference in Boao, Hainan Province, on March 24
adding that overcapacity in these sectors
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We have to make proactive policies to ad-
dress the structural debt problem in China,
Zhu said.
Zhu suggested that the market play a more
decisive role in weeding out underperforming
enterprises. Also, the structure in sectors with
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central bank should keep a close eye on the
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Lowering corporate costs and solving fi-
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facing supply-side structural reform. There has
been a public outcry over the perceived tax
burden since Cao Dewang, President of Chinas
auto-glass titan Fuyao Group, said last year that
Chinas manufacturing industry is overtaxed
and costs too much. Although opinions on the
tax system remain divided, its a fact that over-
loaded non-tax charges have made corporate
costs shoot up.
The government is trying to abolish hun-
dreds of administrative fees and put in place
tax reduction policies to bolster small and
medium-sized enterprises (SMEs).
According to the government work re-
port released in March, the trial replacement
of business tax with value-added tax slashed
businesses tax burden for 2016 by over 570
billion yuan ($82.71 billion). Enterprises so-
V
V
cial security contributions were lowered and
APRIL 6, 2017 BEIJING REVIEW 13
the price of electricity was cut. DQGEORFNFKDLQWHFKQRORJ\WRGHVLJQQDQ-
0RUHRYHUQDQFLDOWHFKQRORJ\)LQ7HFK
is being used to lower corporate operating
costs and bolster SMEs. According to Chen
Shengqiang, CEO of JD Finance, the FinTech
arm of e-commerce giant JD.com, FinTech
means using big data, artificial intelligence
Boao Forum for Asia Declaration
On Economic Globalization
March 24, 2017
FLDOSURGXFWVIRUQDQFLDOLQVWLWXWLRQV
JD Finance has provided over 100,000
SMEs with loans accumulatively reaching
250 billion yuan ($36.4 billion), Chen said at a
session of this years BFA conference.
According to Chen, Baitiao.jd.com, JDs
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WKDWXQGHUPLQHWKLVEDODQFH Representatives share their views on
the Belt and Road Initiative at the 2017
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DQGLQIRUPDWLRQKDYHKHOSHGWRQDUURZWKHGHYHORSPHQWJDSEHWZHHQ1RUWKDQG
6RXWKDQGEHWZHHQULFKDQGSRRUJRYHUQPHQWVVKRXOGH[SORUHGLYHUVHIRUPVRIFURVV
variables to calculate the credit ratings of
more than 200 million people. It makes
automated loans without any human review,
saving human resources, Chen said.
The new technologies also provide viable
commercial models for inclusive finance.
In the past, many underdeveloped regions
GLGQRWKDYHDFFHVVWRQDQFLDOVHUYLFHVp,Q
the era of mobile Internet, we can solve this
problem by using digital technologies and
achieve the goal of inclusive development,
Li Dongrong, President of the National
Internet Finance Association of China, said.
ERUGHUSXEOLFSULYDWHSDUWQHUVKLSV333WRDFWLYHO\SURPRWHWHFKQRORJLFDOLQQRYDWLRQ
DQGIDFLOLWDWHFURVVERUGHUPRYHPHQWRINQRZOHGJHDQGLQIRUPDWLRQWRWKHEHQHWRI
SHRSOHRIDOOVRFLDOVWUDWDLQDOOFRXQWULHVDQGUHJLRQV
7RHQVXUHEDODQFHLQHFRQRPLFJOREDOL]DWLRQLQWHUQDWLRQDORUJDQL]DWLRQVDQG
PXOWLODWHUDOPHFKDQLVPVVXFKDVWKH*DQG$3(&QDWLRQDOJRYHUQPHQWVDVZHOODV
WKHSULYDWHVHFWRUVKRXOGVXSSRUWDQGKHOSEXLOGDQRSHQPHFKDQLVPIRUPXOWLODWHUDO
FRRSHUDWLRQDQGMRLQWO\SURPRWHLQIUDVWUXFWXUHLQVWLWXWLRQDODQGSHRSOHWRSHRSOH
FRQQHFWLYLW\
%)$DQG%)$PHPEHUVVWDQGUHDG\WRVWUHQJWKHQFRPPXQLFDWLRQFRRUGLQDWLRQDQGFRRSHUDWLRQLQ
WKHDIRUHPHQWLRQHGDUHDVDQGSOD\WKHLUXQLTXHUROHVWREULQJDERXWJUHDWHURSHQQHVVLQFOXVLYHQHVV
PXWXDOEHQHWDQGEDODQFHLQHFRQRPLFJOREDOL]DWLRQ
Chen said 16 percent of JD Finances
loans went to rural areas, providing 42,000
LPSRYHULVKHGSHRSOHQDQFLDOVHUYLFHV
Gregory D. Gibb, Co-chairman and CEO
of Shanghai Lujiazui International Financial
Asset Exchange, said FinTech will solve two
major problems in Chinas real economy.
First, the difficulty private, small and
micro enterprises face when looking for
financing. The financing demand of SMEs
and individuals currently accounts for 10- 15
percent of the total demand but in three to
6RXUFHwww.boaoforum.org; designed by Pamela Tobey YH\HDUVWKLVZLOOLQFUHDVHWRSHUFHQW
14 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com
 Initiative and by taking advantage of the Belt

COURTESY OF THE BFA

in countries along the Belt and Road routes
took up 13.3 percent of the total ODI in the
UVWWZRPRQWKVRIWKH\HDUFRPSDUHGZLWK
8.5 percent in 2016.
Chinese private businesses are bound
WREHQHWIURPV\VWHPDWLFDOO\H[SORULQJWKH
vast market created by the Belt and Road
and Road countries comparative advantage
in technology and scale, economist Zhu
Yunlai said. Q
Copyedited by Sudeshna Sarkar
Comments to linan@bjreview.com

Keynote Speech Highlights

VGHYHORSPHQWFDQQRWEHDFKLHYHGZLWKRXWWKHZRUOGDQGWKHSURVSHULW\RIWKHZRUOGZRXOG
Second, personal investment risks are
expected to be lowered. Big data computing
and personal investment strategies will be-
come a core part of the market. FinTech can
solve the problem of excessive concentra-
tion of individual investment and promote its
GLYHUVLFDWLRQ
Solution for globalization
Experts at the BFA forum see the Belt and Road
Initiative not only as a Chinese solution to coun-
ter anti-globalization, but also as a opportunity
for China to transfer its excess capacity.
The Belt and Road Initiative is a Chinese
proposal on pushing forward globalization.
The initiative seeks to build a community
with shared future through consultation, co-
construction and sharing, BFA Secretary
General Zhou Wenzhong said.
The Belt and Road Initiative presents a
opportunity for Chinas private enterprises
to invest in overseas markets, said Bo
Lianming, President of TCL, a leading home
appliance producer.
In 2016, the value of contracts that China
signed with 61 countries and regions along
the Belt and Road routes reached $126.03
billion, up 36 percent year on year and mak-
ing up 51.6 percent of the value of Chinas
newly signed overseas projects, according
to data from the Ministry of Commerce. In
the first two months of 2017, Chinas non-
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SecondZHVKRXOGYLJRURXVO\SURPRWHLQQRYDWLRQGULYHQGHYHORSPHQW
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ThirdZHVKRXOGOHDGWKHZD\WRZDUGRSHQGHYHORSPHQW:HVKRXOGDGYRFDWH
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SURPRWHVKDUHGEHQHWVDQGLQWHJUDWHGLQWHUHVWVLQEXLOGLQJYDOXHFKDLQV
DQGPDUNHWV:HVKRXOGUHHQHUJL]HWUDGHDQGLQYHVWPHQWDVWKHHQJLQHV
RIJURZWKUPO\XSKROGWKHPXOWLODWHUDOIUHHWUDGHUHJLPHUHSUHVHQWHGE\
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UHIRUPRIWKHJOREDOHFRQRPLFJRYHUQDQFHV\VWHPWRSURYLGHVWURQJ
JXDUDQWHHVIRUJOREDOJURZWK
financial outbound direct investment (ODI) 6RXUFHwww.boaoforum.org; designed by Pamela Tobey

http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 15

COVER STORY

ALL ROADS LEAD TO ASIA

7KH%RDR)RUXPIRU$VLD%)$$QQXDO&RQIHUHQFHZDVFRQYHQHG
LQ%RDRVRXWK&KLQDV+DLQDQ3URYLQFHIURP0DUFKWRDWWUDFWLQJ
PXFKJOREDODWWHQWLRQZLWK$VLDQFRXQWULHVULVLQJFRQWULEXWLRQVWRJOREDO
JURZWK,QDQLQWHUYLHZZLWKBoao ReviewWKHIRUXPVRIILFLDOSXEOLFDWLRQ
Zhou Wenzhong6HFUHWDU\*HQHUDORIWKH%)$H[SODLQHGWKHWKHPHRI
WKLV\HDUVFRQIHUHQFHWKHUROHWKDW$VLDQFRXQWULHV&KLQDLQ
SDUWLFXODUZLOOSOD\LQSURPRWLQJJOREDOL]DWLRQDQGWKHFKDOOHQJHV
WKH\OOIDFH7KHIROORZLQJLVDQHGLWHGH[FHUSWRIWKHLQWHUYLHZ
Boao Review: This years BFA conference that benefit from it less than others. There how Asia will advance reforms and what is
was held under unique circumstances. is also opposition from non-economic advo- the future orientation of Asias development.
Last year the United Kingdom decided to cates, such as environmental protection and
leave the European Union and the United labor standards. Chinese President Xi Jinping elaborated
States elected a new president who Generally speaking, globalization has on Chinas position on globalization and
advocates anti-globalization and protec- made tremendous contributions to global world economic development at the 2017
tionism. What message does this years economic development and the improve- annual meeting of the World Economic
conference convey? ment of human well-being. It has helped Forum held in Davos, Switzerland, in
Zhou Wenzhong: The theme of this years many people in developing countries shake January. Some Western media think
conference is Globalization and Free Trade: off poverty and has created progress in there might be Chinese-led globaliza-
The Asian Perspectives. Centering on this the fields of education, healthcare, social tion in the future. Do you agree? Is your
theme, sessions of this years annual confer- security and more. Developed economies confidence in globalization related to
ence are on four major topics: globalization, EHQHWPRUHIURPJOREDOL]DWLRQDVLWRIIHUV your bullishness on Chinas economic
growth, reform and the new economy. A them a vast global market. In addition, how growth and its contributions to the world
total of 44 sessions were held, and more else could developed economies enjoy low economy?
inclusive globalization was the emphasis of inflation rates without an abundance of af- Opinions are widely divided in the interna-
this years meeting. fordable products from emerging markets tional communitys assessment of Chinas
The Silk Road Economic Belt and 21st- such as China and Mexico? We shouldnt role in the global economy, politics and the
Century Maritime Silk Road Initiative (Belt burn all our bridges to avoid dealing with the process of global integration. Some of them
and Road Initiative) was also prominent in drawbacks of global integration. are accurate, but some misunderstand or
discussions. State leaders and senior gov- portray the country in a one-sided manner.
ernment officials from countries along the As Chinas economy grows, the country will
What can be done to counter the tide of
Belt and Road held dialogues on the issue. GHQLWHO\SOD\DPRUHLPSRUWDQWUROHLQWKH
anti-globalization?
These talks also included Chinese ministers world economy and trade as well as global-
Despite being under fire, we should double
and entrepreneurs and their counterparts ization. As Ive mentioned before, the world
from countries along the Belt and Road. How our efforts and reach for new opportunities. economy needs a new source of vigor and
to stimulate growth was also a topic that Asia has the potential to play a leading role in growth, and global economic and financial
governments and business leaders from all global economic and financial governance. governance also needs to be revamped.
countries were concerned about. Moreover, Asia is still a global economic pow- Developing countries must participate
erhouse. Against the backdrop of profound in this process. As the worlds largest and
You said although globalization has some changes to the global economy, both the fastest-growing emerging economy, China
inadequacies, it will never be resisted or internal and external environments for Asia should play a significant role in this opera-
reversed by any force. Why are you so and emerging economies have changed sig- tion. Despite a sluggish world economy, the
FRQGHQWRIWKDWDVVXPSWLRQ" QLFDQWO\DQGWKHLUGHYHORSPHQWYLVLRQVDQG G20 Summit in Hangzhou was the most eye-
Globalization keeps expanding as an objec- models are facing challenges. catching economic event worldwide in 2016.
tive trend, rather than a subjective wish. According to a survey by the During the summit, as the host country,
Starting from trade, globalization grows rap- International Monetary Fund, Asias share in China drew attention to various economic
idly to investment and free flow of human the worlds GDP has surpassed 40 percent, issues such as the exchange rate. All the
resources. Opposition to internationalization and in the next four years it will contribute countries present at the summit agreed to
mainly comes from two types of countries: nearly two thirds of world economic growth. oppose competitive currency depreciation
those that lose out because of it and those The whole world is paying close attention to with the aim of stimulating exports. All these
16 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com
COURTESY OF THE BFA

The general meeting of the BFA Annual Conference 2017 in Boao, south Chinas Hainan Province, on March 25

are part of Chinas contributions to global
economic recovery and a new round of glo-
balization.
U.S. President Donald Trump signed an
executive order on January 23 to offi-
cially withdraw the U.S. from the Trans-
Asia are still undergoing industrialization,
which requires capital, equipment and man-
agement experience. China, Japan, South
Korea and Singapore are good at providing
those things. Moreover, various Asian coun-
tries complement each other in terms of
their infrastructure construction capabilities,
Whats your view on the future of Sino-U.S.
relations?
Focusing on Asia is a key task in the work of
the BFA, and we are always following Asias
stability and development. Problems left over
by the Cold War still exist in Asia. China and
the U.S. had reached a consensus on build-
3DFLF3DUWQHUVKLS733WUDGHGHDO+RZ
will this affect global economic integra-
tion and the Asia-Pacific economy? Is
this a new opportunity for the Regional
Comprehensive Economic Partnership
(RCEP)?
We are watching the TPPs development, but
regardless of whether it can be implement-
ed, it is merely part of the free trade map in
WKH$VLD3DFLFUHJLRQ,WLVLPSRVVLEOHIRUWKH
733WRFRYHUWKHYDVW3DFLFUHJLRQ
Asias economy is full of complexity and
diversity. This is both a challenge for Asian
economic integration and an opportunity
for economic cooperation. Collaborating for
PXWXDOEHQHWLVWKHRQO\ZD\WKDW$VLDFDQ
PRYHIRUZDUGWRDYRLGGLIFXOWLHVDPLGVOXJ
gish global economic recovery.
Some countries in the Middle East,
Central and South Asia as well as Southeast
http://www.bjreview.com
so there is a great deal they can achieve in
infrastructure improvement and connectivity
if they work together. Cooperation in pro-
duction capacity, technology and equipment
will help exporting nations make better use
of their high-quality production capacity and
boost industrialization in importing nations.
There are now bilateral and multilateral
free trade agreements in various forms and
at different levels. We hold an open attitude
toward this, and hope to see positive interac-
tions amongst these agreements. All these
free trade agreements should serve to boost
JOREDOWUDGHDQGEULQJPRUHEHQHWVWRSHR
ple. Sessions of this years BFA conference
covered topics such as Asian regional co-
operation, Doha round of global trade talks,
reorganizing the global value chain and how
to advance the China-initiated Free Trade
$UHDRIWKH$VLD3DFLF
ing a new type of major country relationship,
so I hope the Trump administration can
continue this consensus which is based on
mutual respect, cooperation, non-confronta-
WLRQDQGQRQFRQLFW
Asia needs China and the U.S. to
strengthen cooperation for mutual benefit.
Lots of problems would emerge in Asia if
the two were unable to cooperate with each
other. We hope the United States can come
WRWHUPVZLWKWKHIDFWWKDW&KLQDoVLQXHQFH
is expanding as it grows. The two countries
should work together to boost joint develop-
ment and bring common benefits to Asian
countries. Q
Copyedited by Bryan Michael Galvan
Comments to zhouxiaoyan@bjreview.com
APRIL 6, 2017 BEIJING REVIEW 17
WORLD

Trade Transcends Sides

China continues to promote free trade with Australia and New Zealand By Yu Lintao

B
esides their geographic proximity and

XINHUA
status as developed Western nations,
the Oceanian states of Australia and
New Zealand are largely synchronized in
their stance over relations with their Asian
neighborChina. This is attributable in
some respects to the similar economic and
social structures of the two countries, as
well as their shared history as former British
colonies. Both Australia and New Zealand are
sparsely populated, export-oriented econo-
mies with rich natural resources, hi-tech
industries, and well-developed agriculture
and animal husbandry. China, in the mean-
time, is the largest trading partner of both
nations.
At the end of March, Canberra and
Wellington, respectively, hosted Chinese
Premier Li Keqiang. These visits are impor-
WDQWQRWPHUHO\EHFDXVHWKH\ZHUHWKHUVW
of their kind in 11 years, but also because
they took place at a time when the United
States is appearing to pursue a policy of iso-
ODWLRQLVPVLQFH'RQDOG7UXPSWRRNRIFH
Trump has advocated an America First
approach, stating his intention to renegotiate
the North American Free Trade Agreement
with Mexico and Canada, while the 12-year-
old U.S.-Australia free trade deal could also
be reviewed. Immediately after taking power
in January, the new U.S. president pulled his
FRXQWU\RXWRIWKH7UDQV3DFLF3DUWQHUVKLS
(TPP)the largest proposed free trade deal
in historyeffectively killing the accord in its
current form. Trumps moves have worried
U.S. traditional allies, most of which are long-
WLPHEHQHFLDULHVRIOLEHUDOWUDGH
At the same time, China has signaled its
willingness to play a bigger role in promoting
global free trade. When addressing the annu-
al meeting of the World Economic Forum in
Switzerland this January, Chinese President Xi

Chinese Premier Li Keqiang attends

a welcome ceremony hosted by
Australian Prime Minister Malcolm
Turnbull in Canberra on March 23

18 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com


Chinese Premier Li Keqiang (back left) and his New Zealand counterpart Bill English witness the signing of a cooperation agreement on the Belt and Road Initiative
in Wellington, New Zealand, on March 27
Jinping delivered a robust defense of global-
L]DWLRQDQGXQGHUOLQHG&KLQDoVUPVWDQFHRQ
promoting trade and investment liberaliza-
tion. Australia might expect China to assume
such a role. After the U.S. pulled out of the
TPP, it was reported that Australia floated
the possibility of inviting China to join the
initiative, despite some suggestions that the
TPP was initially promoted by Washington to
FRXQWHU&KLQDoVJURZLQJHFRQRPLFLQXHQFH
LQWKH$VLD3DFLFUHJLRQ
China is offering clear alternatives in the
wake of the stalling free trade mechanisms
and the emergence of protectionism. When
PHHWLQJ$XVWUDOLDQRIFLDOVLQ&DQEHUUDWKH
&KLQHVHSUHPLHUDOVRUHLWHUDWHG&KLQDoVUP
support of free trade, stating, We believe
that to resolve trade imbalance we need to
http://www.bjreview.com
continue to expand trade. That is the solu-
tion. We cannot close our doors. Turnbull
echoed Li, saying that protectionism is not a
ladder to get out of the low-growth trap, but
a shovel to dig it deeper.
Pushing free trade forward
During Chinas Two Sessions, which were
held in early March reviewing government
work and pointing out future tasks, The
Australian Financial Review published an
article, Why Chinas Work Report Is More
Important Than Australias Federal Budget,
indicating that Chinas economic stability
matters a lot to Australians wallets. Despite
China being far away from Australia and New
Zealand, their economic ties are remarkably
close. This builds a robust foundation for the
WORLD
XINHUA
continuous growth of China-Australia and
China-New Zealand relations.
China and Australia are highly comple-
mentary in their economies. About 70
percent of Australias agricultural products,
80 percent of its resources and approximate-
ly 20 percent of its manufactured goods are
for export. China, a recognized big market,
overtook Japan to become Australias larg-
est trading partner in 2007 and has been
the Oceanian nations largest export desti-
nation for eight years in a row. As China is
pursuing a transition to a consumption- and
service-led economy, while Australia boasts
fine agricultural products and rich natural
resources, areas such as services, agriculture
and infrastructure construction have turned
into new growth points of cooperation be-
V
V
tween the two countries in recent years.
APRIL 6, 2017 BEIJING REVIEW 19
WORLD
Chinese Premier Li Keqiang and his New Zealand counterpart Bill English visit a Chinese-owned research and development center in Auckland, New Zealand, on March 28
Services have witnessed the greatest change
in two-way trade, rising 20 percent in the
VFDO\HDU
Benefiting from the comprehensive
implementation of the China-Australia Free
Trade Agreement (FTA) signed at the end of
2015, bilateral trade has exceeded $105 bil-
lion, while bilateral investment reached $100
billion last year. Australias exports of milk
powder, red wine and dietary supplements
to China have witnessed more than 50 per-
cent year-on-year growth, becoming one of
the most sought-after overseas products for
Chinese consumers.
During Lis visit, heads of the two govern-
ments witnessed the signing of agreements
that will expand their free trade pact and
the two countries pledged to work harder
to usher in a new era of FTA-driven boom.
As part of the outcome of Premier Lis visit,
20 BEIJING REVIEW APRIL 6, 2017
cooperation in energy, resources, infrastruc-
ture, agriculture, animal husbandry, and
scientific and technological innovation will
be expanded. China also agreed to expand
its market for Australian beef exporters.
Turnbull remarked that the result of China
and Australias outward-looking cooperation
on trade has been 30 years of rising living
standards.
In a similar way, New Zealand also ben-
efits from developing sound relations with
China and is a pioneer in China-West coop-
eration: It was among the first countries to
acknowledge Chinas full market economy
status; to reach a bilateral FTA; and to join
the Asian Infrastructure Investment Bank
(AIIB). With the bilateral FTA taking effect in
2008, China has leaped from New Zealands
sixth largest trading partner to the largest
one in 2014. At present, China is also the
XINHUA
countrys largest export destination and im-
port source, while bilateral trade exceeded
$14 billion last year. Now, the two countries
are working toward the goal of topping $21
billion in 2020, set by leaders of both sides.
Premier Lis latest visit to Wellington wit-
nessed the signing of a series of documents
in economy and trade, culture, science and
technology, education, customs services and
tourism. China also agreed to a deal on frozen
New Zealand meat to be exported to China un-
der a six-month trial. According to New Zealand
Trade Minister Todd McClay, the agreement has
the potential to be worth hundreds of millions
of dollars to farmers, exporters and the wider
New Zealand economy.
The two countries have agreed to start
talks on upgrading their FTA in late April. The
negotiations will touch on investment, ser-
vice trade, quarantine of animals and plants,
http://www.bjreview.com
 WORLD
economy and technology, e-commerce,
and policy coordination. New Zealand Prime China and Australia, New Zealand in 2016
Minister Bill English remarked during Lis visit
that the China-New Zealand FTA has been a Total trade volume Chinese tourists = 10,000
huge success, resulting in trade between the
countries tripling, while an upgrade to the $105 bln Australia 1.2 mln
agreement would expand trade further.
Along with ever expanding economic ties,
China-New Zealand people-to-people exchange Australias
has also grown. China has been New Zealands WUDGHVXUSOXV
largest source of international students for $12 New Zealand 400,000
$50 bln bln
more than a decade, with 60,000 Chinese stu-
dents studying in various educational institutes Australia New Zealand
last year. Three Confucius Institutes and 30 Chinese students
Confucius classrooms have been established in Chinese direct investment Australia 150,000
New Zealand under the cooperation of the two in Australia
countries. Additionally, more than 300 primary
and middle schools in the country offer Chinese $3.7 bln 8S56%IURP New Zealand
courses, with more than 40,000 primary and 60,000
middle school students learning Chinese. Chinas dairy products
Accumulated bilateral
New opportunities investment with New Zealand
One third
Among the cooperation deals signed be- MILK MILK MILK come from
tween China and New Zealand during Lis $8 bln
New Zealand
visit, one of the most prominent is the
agreement on the Belt and Road Initiative. It
LVWKHUVWRILWVNLQGVLJQHGEHWZHHQ&KLQD
and a Western country. The initiative, which
comprises the Silk Road Economic Belt and
the 21st-Century Maritime Silk Road, was put
forward by President Xi in 2013. It involves a
vast series of investment programs and in-
frastructure projects, stretching from Central
Asia to Europe, and across South East Asia,
South Asia, and Africa, to facilitate intercon-
nectivity and promote trade and investment.
New Zealand can be seen as a natural ex-
tension of the Maritime Silk Road.
For New Zealand, participation in the
China-proposed initiative offers, on the one
hand, the opportunity of trade facilitation
brought about by better regional connectiv-
ity; and on the other hand, the initiative also
provides huge opportunities for exploring
third-party markets. Prime Minister English
told reporters that New Zealand supports
Chinas Belt and Road global infrastructure
investment plan because of the business
opportunities for his own country. Paul
Goldsmith, New Zealands regulatory re-
form and innovation minister, will attend
the Belt and Road Forum for International
Cooperation in Beijing in May.
Australian officials and pundits also
showed interest in this Chinese development
initiative, and especially in the potential for
alignment with Australias vision for devel-
oping northern Australia over the next 20
years. The region accounts for 40 percent
of Australias landmass but is sparsely popu-
lated. In interviews with Chinese media, Jan
Adams, Australian Ambassador to China, has
said that the Belt and Road Initiative and the
http://www.bjreview.com
Compiled by Beijing Review; designed by Pamela Tobey
northern Australia development plan are
highly complementary on a strategic level,
and that the two sides have achieved con-
sensus on aligning the two strategies.
Australian Trade Minister Steve Ciobo
said recently that Australian businesses
have a keen interest in, and want to be part
of, the Belt and Road Initiative. Ciobo told
media during Lis visit that Australian com-
panies would be well positioned to take part.
Obviously Australia has a high degree of
expertise both in relation to execution but
DOVRQDQFLQJRILQIUDVWUXFWXUHqKHVDLGp6R
there certainly will be scope for Australian
businesses in the future to be involved in the
Belt and Road Initiative projects.
No need to take sides
Compared with the recent vibrancy of in-
teraction with China, the relations of the
two Oceanian countries with the Trump ad-
ministration seem a little chilly. After taking
power, Trump has reversed many policies of
the Obama administration, some of which
concern its Oceanian allies. His announce-
ment to withdraw from TPP has deeply
discouraged and disappointed Canberra and
Wellington.
Another issue is the Australian-U.S.
refugee deal brokered by the Obama ad-
ministration, which involved the resettling of
refugees on Manus Island and Nauru. It was
reported that Trump told Turnbull that the
resettlement agreement was the worst deal

ever when the Australian leader attempted
to secure confirmation that the United
States would follow through with its promise.
The U.S. Government eventually confirmed
that it would receive 1,250 refugees but
would apply extreme vetting to those seek-
ing asylum.
Trump even terminated the call in which
they discussed these issues after a mere
25-minute conversation, despite the call be-
ing scheduled for an hour. Thereafter, some
media comments claimed that Canberra
may turn toward Beijing and away from
Washington. However, such an assertion
seems a little far-fetched. As a country with a
proven track record of consistency, Australia
is unlikely to reorient its diplomacy due to
the recent change in the White House. A
stable Australia-U.S. security alliance has long
been a national consensus of the nation.
China recognizes Australias security con-
cerns and the importance of this alliance for
Australia, thus, it has no intention of driving
a wedge between Australia and the United
States.
In the meantime, Australias develop-
ment of an amicable relationship with China
is based on its own strategic interests.
In future years, it is foreseeable that
there will be stable advancements in rela-
tions between China and Australia as well as
1HZ=HDODQGEDVHGRQPXWXDOEHQHWVQ
Copyedited by Dominic James Madar
Comments to yulintao@bjreview.com
APRIL 6, 2017 BEIJING REVIEW 21
WORLD

A New Deal on the Cards?

Economic cooperation between China and the U.S. is of paramount importance
By Rick Dunham
solutions, using words almost identical to
President Xi Jinpings comments during a
The author is co-director 2014 meeting with then President Barack
of Tsinghua Universitys Obama.
Global Business Despite Trumps campaign rhetoric,
Journalism Program Chinese officials publicly say they expect
no change in the direction of the two sides
economic relationship under a Trump presi-
dency. Both he and I believe that we need
to China have increased six-fold since China
joined the World Trade Organization in 2001,
and Chinese exports to the U.S. have increased
five-fold. American brands such as Starbucks,
McDonalds, KFC and Walmart are ubiquitous in
China. While Chinese foreign direct investment
(FDI) in the U.S. has increased more than 13-fold
since 2005, and covers a wide range of sectors
including energy, food and agriculture, and

A
s a candidate for president of the United
States, Donald Trumps criticism of China
was frequent and often incendiary. The
then real estate mogul and reality television host
accused the worlds second-largest economy
of cheating American businesses and raping
the U.S. economy with unfair trade practices
and currency manipulationcharges dis-
PLVVHGDVIDOVHE\&KLQHVHRIFLDOV8QGHWHUUHG
Trump threatened to slap a 45 percent retalia-
tory tariff on Chinese goods entering the U.S.
But Trumps actions as president
thus farreflect a different approach, and
provide evidence that the economic ties
between the worlds two largest economies
may be more enduring than the
spicy campaign rhetoric. On a
to make joint efforts to advance China-U.S.
cooperation and we believe that we can
make sure the relationship will move ahead
in a constructive fashion in the new era,
President Xi said after meeting with Tillerson
in Beijing on March 19.
spending for government operations, from its
Trade matters
(FRQRPLFVWDWLVWLFVUHHFWWKHIUXLWVRIELODWHUDO
engagement. Two-way trade between the na-
tions has grown from $7.7 billion in 1985 to
about $600 billion. The United States is Chinas
leading export market, and China is the third
largest destination for U.S. goods, after neigh-
bors Canada and Mexico. American exports
commercial real estate. This FDI has created
more than 90,000 American jobs, according to
a 2016 report by the National Committee on
U.S.-China Relations and the Rhodium Group.
And China has helped the U.S. fund its deficit
social safety net to military spending, by holding
more than $1 trillion in U.S. Treasury debt as of
December 2016.
For both nations, the economic stakes
of conflict are high, and the rewards of co-
operation are palpable. In the China-U.S.
economic and trade relationship, coopera-
WLRQEULQJVDERXWEHQHWVDQGFRQIURQWDWLRQ
brings about damage, Sun Jiwen, a spokes-

XINHUA
two-day visit to Beijing in mid-
March, U.S. Secretary of State
Rex Tillerson echoed his Chinese
hosts calls for bilateral economic
progress. At a joint press con-
ference with Chinese Foreign
Minister Wang Yi on March 18,
Tillerson, the former chief execu-
tive officer of the multinational
energy giant ExxonMobil, called
for a result-orientated relation-
ship with China. The U.S.-China
economic engagement of the
past two decades, Tillerson said
has been a very positive relation-
ship built on non-confrontation,
no conflict, mutual respect, and
always searching for win-win

Chinese railcar manufacturer

CRRC Sifang America breaks
ground in Chicago on March 17
for a $100-million plant that
will build cars for the citys
transit authority

22 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com

 WORLD
man for Chinas Ministry of Commerce, said
at a press briefing in January. After a meet- %HQHWVRI%LODWHUDO(QJDJHPHQW
ing between Tillerson and Chinese State
Councilor Yang Jiechi on March 18, acting U.S.
State Department spokesman Mark Toner
7ZRZD\WUDGH American exports to China have
looked at the bright side, saying the two men between China increased VL[IROG since 2001.
discussed the importance of improving and and the U.S. 2001
PDLQWDLQLQJDPXWXDOO\EHQHFLDOHFRQRPLF
relationship between the two largest econo-
mies in the world. 
While the public tone of the diplomats $600 bln
remained positive, both nations would like to
see certain economic complaints addressed.
Americas $347 billion trade deficit with Chinese exports to the U.S. have
&KLQDKDVSURPSWHGWRS86RIFLDOVWRVHHN increased YHIROG since 2001.
greater market access and lower tariffs on a
wide range of American goods and services. 2001
$7.7
Trump promised last year to cut a better
deal with China that helps American busi- bln
nesses and workers compete. 
China, meanwhile, has suggested that  
the U.S. has begun a pivot to Asia policy
GHVLJQHGWRFRQWDLQ&KLQDoVHFRQRPLFLQX Foreign direct investment of China
ence. Chinese officials complained about
U.S. resistance to allied nations joining into the U.S. has created more than
China in launching the Asian Infrastructure 90,000 American jobs. =10,000 jobs
Investment Bank. China says the U.S. has
unfairly limited Chinese investment in the
U.S. on the grounds of national security,
and has blocked the export of some hi-tech
products from the U.S. and EU to China on
the grounds that these technological deals
could be used for military and intelligence
purposes.
The two sides believe there is room for
progress on bilateral investment treaty nego-
tiations, macroeconomic policy coordination
and intellectual property talks. Beijing would
also like to continue cooperation with the
U.S. on global climate change action, despite
the fact that on March 28 Trump signed an
executive order rescinding Obama-era rules
which sought to tackle climate change.
Uncertainties remain
China and the U.S. face global economic uncer-
tainties as well. Trump has promised America
First policies and has spurned negotiations for
trade pacts with both Asian and European allies.
President Xi, in a speech in Davos, Switzerland,
said China is committed to championing inter-
national trade, but sputtering growth in Europe
and economic stagnation among East Asian
neighbors have reduced the potential for ex-
pansion through international commerce.
Amid these uncertainties, Premier Li
Keqiang said on March 15 that China does
not desire heightened economic tensions
with Washington. We do not want to see
any trade war breaking out between the two
countries. That would not make our trade
fairer, Li said at his annual news conference.
Our hope on the Chinese side is that no
http://www.bjreview.com
6RXUFHVRhodium Group, U.S. Census Bureau; designed by Pamela Tobey
matter what bumps this relationship hits, we
hope it will continue to move forward in a
positive direction.
But the direction of the bilateral relation-
ship may be up to Trump, a mercurial boss
with a habit of making public policy through
140 character bursts on Twitter. While
Tillerson was trying to hold sensitive meet-
ings in East Asia over nuclear weapons on
the Korean Peninsula, Trump complicated
matters with a provocative post on social
media. North Korea is behaving very badly.
They have been playing the United States
for years. China has done little to help! he
tweeted. A number of Congressmen sug-
gested secondary sanctions on Chinese
banks and other businesses that had deals
with Pyongyang.
It wasnt the first time Trump compli-
cated his chief diplomats outreach efforts.
On February 23, Tillerson was dispatched
to Mexico as part of a high-level delegation
assigned to smooth over strained relations
with a historical U.S. ally after Trump took
steps to begin construction of what he called
a Great, Great Wall along the border be-
tween the two nations to keep out rapists
and other bad hombres. Tillerson sought to
reassure wary Mexicans that the U.S. did not

harbor any animus, but back in Washington,
Trump was less diplomatic, telling reporters,
Were going to have a good relationship
with Mexico. And if we dont, we dont.
Some in China remain wary that
Tillersons diplomatic outreach could be
rendered ineffective by impulsive, aggressive
presidential talk or action. After all, Trump
broke from decades of American policy by
taking a telephone call from a top Taiwan
RIFLDO)ROORZLQJDQRXWFU\IURP%HLMLQJKH
FRQUPHGLQDWHOHSKRQHFRQYHUVDWLRQZLWK
the Chinese president that he would honor
the one-China policy that has been in place
since the 1970s. The two leaders are ex-
pected to get to know one another in person
in the coming months after their meeting
at the American presidents palatial Florida
resort in early April.
Orville H. Schell III, Director of the Center
on U.S.-China Relations at the Asia Society in
New York, told The Guardian that it (Xi and
Trumps meeting) actually has the potential
to be quite a game-changing moment. Q
Copyedited by Dominic James Madar
Comments to liuyunyun@bjreview.com
APRIL 6, 2017 BEIJING REVIEW 23
NATION

From Trash to Treasure

By putting out garbage separately, residents help to save the environment
By Wang Hairong

W
hen Beijing resident Huang Mei
leaves home for work in the morn-
ing, she usually carries two bags of
trash in hand. One contains kitchen waste
and the other miscellaneous items such as
paper, plastics and cans. Behind her apart-
ment building stand three garbage bins in
green, blue and grey meant respectively for
recyclables, kitchen waste and other gar-
bage. She puts the trash bags into the bins
accordingly.
Huang is a staunch supporter of garbage
FODVVLFDWLRQ7KHFRPPXQLW\VKHUHVLGHVLQ
Shangdi Dongli of Haidian District, is a gar-
EDJHFODVVLFDWLRQSLORW7KHSURMHFWVWDUWHG
in October 2013. A bulletin board near the
communitys property management office
informs residents how to classify garbage.
Kitchen waste collected from the com-
munity is shipped to an organic resource
regeneration center to be made into fertil-
izer, recyclables are taken to a sorting center,
DQGRWKHUWUDVKJRHVWRDODQGOODFFRUGLQJ
to the communitys property management
RIFH
Different types of waste are shipped
out by different parties. In the community
where Huang lives, kitchen and other waste
are transported by the Beijing Environment
and Sanitation Center, and recyclable waste
by the Beijing Haidian Material Recycling
Company.
From time to time, scavengers wander
into the neighborhood, peeking into the
garbage bins, especially the one labeled re-
cyclable, to collect items that can be sold,
such as empty mineral water bottles and
cardboard.
Cleaners hired by the communitys
SURSHUW\PDQDJHPHQWRIFHDOVRSDWUROWKH
neighborhood, picking up recyclables, usu-
ally items too big to go into the bins, mostly
discarded furniture, styrofoam boxes and
the like. These items are collected, piled and
shipped out once their volume reaches a
truck load.
Garbage classification has been on in
Beijing for 16 years. By the end of 2015, it
had been introduced in 3,759 communities,
nearly 80 percent of the total in Beijing, ac-
cording to the Beijing Municipal Commission
of City Management (BMCCM).
The hidden crisis
In 2010, a young photographer named Wang
Jiuliang pedaled a bicycle around Beijing
and filmed about 500 landfills on the citys
periphery. The documentary he produced,
Beijing Besieged by Waste, exposed the grim
waste disaster lurking beneath the citys
gleaming surface, drawing attention to the
practice, back then, of leaving large amounts
of solid waste simply piled up or burying
them underground.
Chinese cities are producing an alarm-
ing amount of waste. The Ministry of
Environmental Protection released a report
on urban solid waste in November 2016,
which revealed that 246 medium and large
cities had produced 185.64 million tons of
household garbage in 2015. Beijing topped
the list with 7.903 million tons, averaging
21,652 tons per dayor around 1 kg per
resident per day.
Comprehensively improving the urban
and rural environment and implementing
the garbage classification system is a task
listed in this years government work report,
delivered by Premier Li Keqiang at the annu-
al session of the National Peoples Congress
(NPC) in March.
Hope comes from a study by a re-
search team led by Professor Song Guojun
of Renmin University of China which was
released on March 22. It says proper waste
classification can lower the social cost of
household garbage management by 64 per-
cent.
The study estimated the social cost of
waste incineration and found it is not lower
WKDQWKDWRIODQGOOV%XUQLQJWRQRIKRXVH
hold garbage in Beijing costs society 1,089
yuan ($158.2).
In recent years, Beijing has taken various
measures to promote garbage reduction,
reuse and recycling. This year, through waste
reduction and recycling, 57 percent of do-
mestic waste in the capital can be turned
into resources, BMCCM Director Sun Xinjun
said at a conference on city management on
February 16.
By 2020, the percentage will be in-
creased to around 60 percent, according to
the BMCCMs plan during the 13th Five-Year
Plan (2016-20) period. By then, 35 percent
of all household solid waste will be recycled
and reused, and more than 99.8 percent will
undergo harmless treatment.
The plan also indicates that in the next
four years, Beijings daily domestic garbage
treatment capacity will exceed 30,000 tons.
It includes daily incineration capacity (24,250
tons) and biochemical treatment capacity
(6,350 tons).
Slow progress
p*DUEDJHFODVVLFDWLRQLVDQLPSRUWDQWPHDVXUH
to promote Chinese civilization, but many peo-
ple have not recognized its importance, Chang
Jiwen, an NPC deputy and Deputy Director
of the Research Institute of Resources and
Environment Policies under the Development
Research Center of the State Council, told the
press at the annual NPC session in March.
In China, high-value recyclables, such as
electronics, are usually sold by households or
scavengers to recycling centers. What remains
WREHFODVVLHGDUHORZYDOXHUHF\FODEOHVNLWFK
en waste and other waste.
It is especially important to separate kitchen
waste, which can be turned into fertilizer, as this
remarkably reduces the amount of waste going
WRODQGOOVDQGLQFLQHUDWRUV
Friends of Nature, a Beijing-based en-
vironmental NGO, estimates that kitchen
waste accounts for around 60-70 percent of
the weight of all trash of an average Chinese
household.
Sun illustrated the importance of separat-
ing kitchen waste, or wet waste, from dry waste
with an example. He said that if used paper is
tainted by leftovers, it can only be burnt rather
than recycled; combustion of wet paper is dif-
FXOWVRFRDOKDVWREHXVHGHPLWWLQJVXOGHV
and chlorides, the main components of smog.
Currently, in communities piloting gar-
EDJHFODVVLFDWLRQWKHNLWFKHQJDUEDJHWKDWLV
shipped out makes up little more than 5 per-
cent of total kitchen garbage. This suggests that
most kitchen waste is still mixed up with other
waste.
Friends of Nature has done site studies
on pilot communities in the past years, which

24 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com


5HVLGHQWVLQWKH0HL\XDQDSDUWPHQWFRPSOH[LQ+HIHL$QKXL3URYLQFHXVHVPDUWJDUEDJHFODVVLFDWLRQHTXLSPHQWLQ)HEUXDU\
showed low resident participation in garbage
classification. Classification was mostly car-
ried out by community-designated garbage
FODVVLFDWLRQLQVWUXFWRUVq
Some residents said they did not have
any incentive to sort out garbage after see-
ing the garbage in different bins was mixed
together during removal. On the other hand,
those shipping waste argue that because not
many residents classify waste correctly, they
have to mix the waste and re-sort it.
New measures
At the Beijing city management conference,
Sun said from this year, the emphasis will
be on separating wet and dry garbage. As
domestic waste continues to grow, the main
landfills in Beijing are overloaded, he said.
Efforts must be stepped up to classify and
reduce garbage; otherwise, the city will be
besieged by waste again, he warned.
Sun cited data from BMCCM showing
http://www.bjreview.com
that in 2016, the average amount of garbage
disposed of daily in Beijing increased by 20
percent compared with two years previously.
He also said that some communities in
Beijing have been separating kitchen gar-
bage from other waste.
Kitchen waste has been collected
separately in Suzhouqiaoxi Community in
Haidian since early 2014, a staff member
of the community office, who declined to
be named, told Beijing Review. In the com-
munity, households are issued cards, and
residents who dump kitchen waste in a des-
ignated spot according to instruction earn
bonus points. The accumulated points can
be redeemed for money at the end of every
quarter. Li Chunyan, Director of the com-
munity management office, said this helps
residents to develop a good habit in sorting
out kitchen waste.
In addition to encouraging residents to sort
out garbage, Beihang Community in Haidian
NATION
XINHUA
uses automatic garbage sorting equipment to
classify garbage.
The streamline can automatically clas-
sify garbage. It works very well, Liu Tonghua,
Director of the community management of-
FHWROGBeijing Review.
He said that the sorting machine, de-
veloped by a hi-tech industry in Beijing, can
open garbage bags and separate kitchen
waste from other waste according to the
shape and density of the waste.
The recyclable waste is sold to a recycling
center, dehydrated kitchen waste goes to an
organic resource regeneration center to be
turned into fertilizer, and other waste is trans-
ported to landfills. Through classification and
recycling, a significant amount of the waste
produced by the community can be reduced. Q
Copyedited by Sudeshna Sarkar
Comments to wanghairong@bjreview.com
APRIL 6, 2017 BEIJING REVIEW 25
NATION
Campus Kickoff
New action plan hunts for talent in classrooms to get national soccer on
the ball By Yin Pumin & Wu Manman
W
hen Zhu Hui sat down to watch the
match between China and Iran on
the night of March 28, there was little
optimism about the chances of the Chinese na-
tional team. They had lost almost all their group
matches, and only a surprise victory over South
Korea a week earlier had kept their hopes alive
of surviving the qualifying rounds to reach the
2018 FIFA World Cup.
Chinas fledgling revival under Marcello
Lippi will be tested by the strong Iranian team
in the World Cup qualifying match on March
28, the headlines screamed, and the fears were
proved to be well-founded when Iran won 1-0.
But Zhu, a professional football coach,
QGVDVLOYHUOLQLQJLQWKHGHIHDWp,DPDFWXDOO\
satisfied, said the 35-year-old, who coaches
at Lehuo, a private football club in Beijing. We
did lose the match, but I could see the morale
of the team, and the players technique has im-
proved greatly. The China Football Association
(CFA) has made great efforts, starting with invit-
ing Lippi to coach the national team. Developing
A soccer coach from Italy trains students at a primary school in Changxing County, Zhejiang Province, in March
26 BEIJING REVIEW APRIL 6, 2017
football takes a long time. We must be patient.
In the past, the mens national team quali-
fied for the World Cup as early as 2002, but
since then, there has been little progress.
The failure is prompting the football
authorities to look for different measures. In
2016, Lippi, who coached the Italian team to
victory in the 2006 World Cup and was named
one of the best 50 coaches by Time, was ap-
pointed to guide the Chinese team.
Now the focus is on grooming talent in
campuses, starting from primary schools.
In January, the CFA released a strategy, the
165 Action Plan, to promote youth football
Under the plan, youth training institutions will
be developed as well as a home-and-away foot-
ball league and a training platform for young
footballers in foreign countries.
As part of the plan, a Legend Guidance
Group has been formed. It consists of domestic
soccer veterans, ranging from former profes-
sional players and coaches to referees and
RWKHURIFLDOV7KHLUWDVNLVWRPHQWRUFDPSXV
XINHUA
soccer teams.
In March, the Ministry of Education (MOE)
and the CFA launched a new national super
league comprising campus soccer teams,
teams from professional football schools and
sports schools, professional clubs and local
sports bureaus. There are three categories of
players: under-14s, U-15s and U-16s. The tour-
naments will continue till September as part
of the national plan to discover young talent
and develop China into a major football-playing
country.
This is in line with the governments reso-
lution to cultivate young soccer players at the
community level, said Tang Feng, Director of
CFAs Department of Youth Soccer. The super
league system, he added, will link campus
soccer with the football training system for
youngsters and create a smooth transfer of
young football talent onto professional pitches.
Chen Baosheng, Minister of Education, said
the super league will be an important platform
linking campus soccer with the youth training
system. It will be an important opportunity for
young players to become professional soccer
athletes, he said.
Catch em young
In April 2016, CFA unveiled a plan for soccer
development, with an emphasis on schools.
The goal is to get 50 million children and adults
playing soccer regularly by 2020, have a top-
notch national team by 2030, and make China
a global soccer power by 2050.
This February, MOE said the government
would help 20,000 primary and middle schools
strengthen their soccer education by the end of
the year. Another 30,000 will be added by 2025.
Besides, pilot projects in developing campus
soccer will be launched in around 30 districts or
counties by this year.
Wang Dengfeng, CFA Vice President, ex-
plained the plan: On average, each school can
train 1,000 young players. With 50,000 soccer
schools, we can have 50 million young soccer
players in the future. This is a solid way to select
soccer talent for our future reserves.
Zhu Huis football club Lehuo, founded in
2009, takes in children as young as 3 years old.
The upper age limit is 13. Zhu attributes the low
http://www.bjreview.com
 NATION

XINHUA
growth of football in China to the lack of proper
football education for teenagers. We provide
football education for teenagers and encour-
age them to play football so that their level can
be improved, he said. The new league match
SODQZLOOKDYHDJDPHFKDQJLQJLQXHQFHq
Haidian District, where Lehuo is located, has
been selected to be an experimental zone for
youth soccer as some of the nations top uni-
versities are located here, like Peking University
and Tsinghua University. There are some top
middle schools as well, such as the High School
affiliated to Renmin University of China, and
Beijing 101 Middle School.
According to the National Youth Campus
Soccer Working Group, a governmental body
managing campus soccer, in 2016, there
were over 13,300 schools with soccer class-
es. Besides, 69 counties were piloting soccer
programs.
However, despite the programs, the de-
velopment of campus soccer faces several
obstacles. A lack of professional coaches is a
major barrier.
In 2014, a national training plan was drafted
to train soccer coaches for soccer schools.
Physical education teachers, soccer coaches,
referees and management personnel received
the training in 2015. Within the year, 6,000 soc-
cer coaches were sent to local schools.
However, though 2016 saw 16,000 per-
sonnel trained, including campus coaches
and referees, and another 115 foreign soccer
coaches hired by schools, personnel scarcity still
remains a major obstacle.
Deng Shijun, a soccer coach in Wuhan, cen-
tral Chinas Hubei Province, told Beijing Review
the scarcity was causing slow growth and
low performance of community-level young
players.
One important reason is shortage of
funds, Deng said, calling the current annual
56-million-yuan ($8.12 million) funding support 7KH&KLQHVHVRFFHUWHDPGHIHDWVWKH6RXWK.RUHDQVLGHLQD:RUOG&XSTXDOLHURQ0DUFK
LQVXIFLHQWDQGOHDGLQJWRORZVDODULHVIRUVFKRRO in Changsha, Hunan Province
coaches. Many coaches and other personnel
QDOO\FKRVHWROHDYHq'HQJVDLG
The remaining six days are packed with However, he sees the importance of
studies and non-football extracurricular activi- football in peoples daily life: Though most
Degree vs training ties. In the morning he goes to school and after people do not make football their profession,
Due to the scarcity of professional teachers and school, there are piano lessons, extra coaching it is important not only to stay healthy but for
coaches in schools, young players looking to for English and science, taekwondo, swimming teamwork and developing strength to accept
further develop their game have to join profes- and more. All of this costs money. Bringing up a challenges.
sional clubs. Though these clubs can provide child is an expensive proposition as parents say Runxuans mother Liu Yunyun, on the other
professional coaches and training, they rarely WKHFRPSHWLWLRQLVHUFHDQGFKLOGUHQKDYHWR hand, has distinct misgivings about a football
offer quality education. Consequently, many DWWDLQH[WUDTXDOLFDWLRQVWRGRZHOOLQWKHLUFD career. I have the impression that football is a
students choose to quit soccer for mainstream UHHU$QGPRVWSDUHQWVLQVLVWRQHGXFDWLRQUVW violent game, she said. There are often physi-
education. Would Wans parents like him to be a profes- cal confrontations. I dont want my son to break
Wan Runxuan is a 6-year-old who scored sional football player? His father Wan Di, a fund his bones.
the winning goal for his team at a match last manager, says if he proves to be talented in CFAs Wang said the authorities have no-
month. His Sundays are dedicated to football football, they are open to the idea but it doesnt ticed the dilemma and are designing policies to
where he receives training from his club for two mean his son can drop out of school. To be a integrate professional soccer training with edu-
hours and plays matches, if there are any. His top football player or basketball player or for any cation. The ultimate goal for the development
parents pay 400-500 yuan ($58-72) a month other sophisticated sports, you need also to be of campus soccer is to combine soccer talent
for his club membership.
V
V

very smart and well educated, Wan Di said. with academic success, he added.
http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 27
NATION
Making changes

XINHUA
The campus soccer program was started af-
ter Beijing hosted the 2008 Olympic Games.
However, it made little progress and in 2015, the
Central Government unveiled the Overall Plan
of Chinese Soccer Reform and Development,
making MOE responsible for campus soccer.
MOE set up a National Youth Campus Soccer
Working Group and campus soccer grew.
In two years, a four-tier campus soccer
competition system has been established in pri-
mary, secondary and high schools and colleges.
Last year, 952 matches were held for the high
school and college leagues. More than 7,500
high school and college students participated.
Another important step to develop national
soccer is the directive to give opportunities to
young Chinese players and limit the number of
foreign players, who are being hired and paid
astronomical salaries by domestic clubs.
The CFA has laid down that super league
clubs must have at least one Chinese player
under 23 playing in a match during the new
competition season. Also, a team can have
three foreign players at most. Before, the num-
ber was four. Q

Copyedited by Sudeshna Sarkar

Comments to yinpumin@bjreview.com
Chinese young soccer players receive training in Spain in 2014

28 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com

 NATION

Voices and Visions

+HU9LOODJH,QWHUQDWLRQDO)RUXPLVDQDQQXDOSURJUDPIRFXVLQJRQZRPHQVSK\VLFDO
DQGPHQWDOKHDOWKDQGKDSSLQHVV7KHHGLWLRQRUJDQL]HGLQ%HLMLQJE\WKH6XQ
Media Group and Her Village Academy, saw economists, a Nobel laureate, writers and
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Meng Xiaosi, Former Vice President, who are divorced, the more kids they have, the higher salary or better options cant buy
unhappier they are. [good] staff. People need a sense of identity
The All-China We focused on full-time housewives. They and accomplishment.
Womens Federation are the least happy of our researched groups. The leader should create a company cul-
has been promoting ([FHSWIRUSDUHQWKRRGWKH\DUHXQVDWLVHGZLWK ture that respects workers spirit. To do work
small loans exclu- their relationship with their husband and their worth doing could be more important than
sively for women, personal freedom. Therefore, we can say that payment.
especially those in ru- independence and freedom contribute more
ral areas, since 2009, to their happiness. We should give more care to Hao Jingfang, Science
aiming to increase full-time housewives. Fiction Writer:
womens social and Creation is a process of
family status. By Mark Gibbs, expression. Many people
September 2016, 15 President, SAP dont think they are
million women had Greater China: creative mainly because
EHQHWHGIURPWKLV Change is happen- they dont treat their
ing not fast enough. true feelings with hon-
Yang Lan, In the Fortune 500 esty. They care about
Founder, Sun companies, only 4 other peoples thoughts
percent of CEOs are and ignore their own feelings. We need to
Of the small and women. Women in learn how to express ourselves, for example,
micro company IT are 25 percent of by painting, writing, talking or shooting a
founders in Chinas the workforce. By 2020, half of the workforce movie. Let your thoughts come out in the
Internet industry, 55 will be millennials, and 25 percent will be over form of real work.
percent are women. 55. Companies will need to consider how to bal-
In the United States, ance that age difference within the workplace. Yu Dan, Professor,
the number is 41 The biggest thing that makes me think and Beijing Normal
percent. Only 10 makes me scared is that I have a 7-year-old University:
percent of Chinese daughter. And Im trying to think what the world Some of my women
women entrepreneurs can access venture capi- will be like by the time she enters the workforce. friends who are 40-50
tal, and in the States, its less than 5 percent. Will it be a more equal and inclusive society? have told me they are
Some say women are not good at rational Will she have an equal chance, like all her male going back to universi-
thinking. They are more emotional. They prob- VFKRROIULHQGV",VKHUHGXFDWLRQVXIFLHQW"6R ty. Some said they were
ably have advantages in culture, art, education [there are] many things for us to think about. going to spend a whole
and medical services but not in [science]. Its year receiving training,
wrong. Given equal opportunities, women can Zhang Chaoyang, some said they were try-
perform as well as men. Chairman and CEO, ing to learn something professional. They are
Sohu.com: either senior managers in corporations or
Zhang Xichao, Innovation for a com- retirees whose kids have got married. Their
Professor, School of pany is to generate reasons are almost the same: They wish to
Psychology, Beijing new products, new get old elegantly.
Normal University: technologies and new One of them told me she didnt want to
My team released a business models which turn into a granny talking her childrens and
report on Chinese can make the company grandchildrens ears off. Thats why she went
womens mental successful and change to study art at the age of 50. Q
health and happiness peoples lifestyle. But whats the essence of in-
at the forum. novation for the company? Its not the business
Women in mar- model, but the innovation of organization.
riage who have kids How to make a strong team? Select the Copyedited by Sudeshna Sarkar
Comments to lifangfang@bjreview.com
are happier than those who dont. For women right talent and give enough incentives. A

http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 29

NATION

Sailing
Into the
Limelight
W
ith art classes being an important component of education
in China, students are encouraged to develop their artistic
talent. Through the Golden Sail organization, primary and
middle school students in Beijing can enroll in music and dance
classes. The organization has nearly 10,000 students and teach 10
different subjects. Not all artistic troupes can call themselves Golden
Sail, only those that meet the criteria set by the Beijing Municipal
Commission of Education.
The Golden Sail dance troupe of the Zhongguancun No.2
Primary School in Beijing presented an impressive performance in
March to celebrate the 10th anniversary of the troupe. About 350
students and staff took part to present a spectacle applauded by
the spellbound audience.
(Photos by Wei Yao)

Copyedited by Sudeshna Sarkar

Comments to weiyao@bjreview.com
A performance of a teacher and a student accompanied by the chamber orchestra of the school

The costumes and sets are of professional standard, enhancing the performance A magical underwater scene is presented

30 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com

 NATION

Excellent little dancers

Primary students delight with their ethnic Miao dance

http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 31

BUSINESS

Cooling Down the Fever

/RQJWHUPSROLFLHVVKRXOGEHLPSURYHGWRIDFLOLWDWHVRXQGDQGVWDEOHGHYHORSPHQW
of the property market By Deng Yaqing

M
eng Fang, a 32-year-old woman, has
been searching in vain to buy an apart-
ment in Beijing since early 2015. The
price of an apartment that I once planned to
buy at 4.5 million yuan ($653,000) in 2015 has
now soared to 9.3 million yuan ($1.34 million),
said Meng. She eventually gave up on buying it
because the owner refused to meet her.
This January, Meng decided to lower
her expectations, hoping to withdraw from
the fierce home purchasing battle before
the Lunar New Year holidays (January 27 to
February 2). The apartment she took a fancy
to was priced at 9.5 million yuan ($1.37 mil-
lion), with a tax of 600,000 yuan ($87,102),
and was located around the Fifth Ring Road
in north Beijing.
Just when the home owner and I were
about to sign the contract, he changed his mind
and declined to continue the transaction, said
Meng, who still lives in a small two-room apart-
ment. Meng said it is unlikely she will move into
a new home in the foreseeable future.
Skyrocketing housing prices in the city have
triggered tightening of home mortgage and
purchase rules by central and local authorities.
On March 17, the Peoples Bank of China,
markets, including Guangzhou, Shijiazhuang,
Zhengzhou, Chengdu and Fuzhou.
While the property market in first- and
major second-tier cities is overheated, some
third- and fourth-tier cities are mired in a
large amount of housing inventory.
At the China Development Forum
2017 held in Beijing from March 18 to
20, He Lifeng, Chairman of the National
Development and Reform Commission,
said that the government will apply differ-
ent measures to different cities according
to local conditions to help cut inventory and
regulate the housing market.
He made it clear that homes are a place
to live in and are not for speculation. Long-
term policies should be improved to facilitate
stable and sound development of the mar-
NHWDQGFRQWUROH[FHVVLYHRZRIFUHGLWIXQGV
to the market, he said.
Behind the binge buying
Compared to January, among the 70 large
and medium-sized cities, sale prices of newly
constructed commercial residential build-
ings declined in 12 cities, increased in 56 and
remained at the same level in two in February.
$PRQJWKHPSULFHVLQUVWWLHUFLWLHVLQFUHDVHG
by 0.1 percent month on month, while those
in second-tier and third-tier cities rose by 0.3
percent and 0.4 percent respectively, according
to statistics released by the National Bureau of
Statistics (NBS) on March 18.
Measures to restrict house purchasing
activities launched last September seem to
have yielded little result in terms of suppress-
ing the relentless rise of housing prices, and
some are warning of the dangers of mount-
ing speculation. Will the new strict housing
policy succeed in dampening consumers
enthusiasm?
Jia Kang, President of the China Academy
of New Supply-Side Economics, argued that
the housing price surge in China cannot be
considered a bubble. Jia added that people
dont have to worry about China experi-
encing the pain brought about by a burst
housing price bubble as Japan once did in
the 1990s.
At that time, Japans housing prices suf-

XINHUA
the central bank, announced that it is tighten-
ing the rules on home mortgages in Beijing and
escalating measures to rein in the overheated
real estate market in the city on March 24.
The minimum down payment ratio
required for those seeking to buy a second
home has now been raised to 60 percent
from 50 percent, and those who have no
home in Beijing but have a record of taking
out a housing mortgage are also treated as
second-home buyers. In the past, if buyers
whose mortgage had been paid off had ap-
plied for a new mortgage for a second home,
WKH\ZHUHUHJDUGHGDVUVWWLPHEX\HUV
Even couples who have allegedly divorced
in order to take advantage of reduced down
payments when buying a second house in
Beijing are now unable to do so. That is due to
a newly passed regulation restricting access
to the discount for people who have been di-
vorced for less than one year.
Following Beijing, more than 20 cit-
ies and counties have rolled out similar
tightened rules to cool their local property A person walks past a second-hand property agency in Shanghai on March 10

34 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com

 BUSINESS

XINHUA
fered from a wide collapse, behind which its
urbanization rate was 77 percent. In 2016,
Chinas urbanization rate was a mere 41
percent, according to the NBS, rising 1.3 per-
centage points from the previous year. Thats
to say, the country is 30 percentage points
away from reversing its growth impetus,
said Jia.
In the next few decades, roughly 400
million rural residents will move to and settle
down in urban areas, so people cant expect
housing prices in first-tier cities such as
Beijing, Shanghai and Shenzhen to decline in
the next 15 years, said Jia.
Li Xunlei, chief economist of Zhongtai
Securities, held that fluctuations in housing
SULFHVPDLQO\GHSHQGRQWKHRZRISRSXODWLRQ
and capital. For example, last year, the cities of
Hefei and Xiamen witnessed a rapid increase
LQSURSHUW\SULFHVZLWKWKHLUSRSXODWLRQLQRZ
UDQNLQJUVWDQGVHFRQGQDWLRQZLGH,QFRQWUDVW
the property market in Xian and Dalian was
sluggish because the population flow to the
two cities was in decline.
Beyond that, the prosperity of the hous-
ing market in big cities is propped up by the
gathering of capital, said Li.
Li predicted that Chinas housing market
will experience a comprehensive dip around
2020 because growth cannot be sustained
by capital and population flows for an ex-
tended period of time.
In the future, large quantities of people
will concentrate in four regionsthe
Yangtze River Delta, the Pearl River Delta, the
Beijing-Tianjin-Hebei area and cities such as
Wuhan and Changsha. Therefore, housing
prices in these places will be supported by a
huge source of incoming population, Li said.

/RQJWHUPPHFKDQLVPQHHGHG
If one analyzes the current round of restric-
tions on housing purchases, one will find that
UHDOHVWDWHUHJXODWLRQKDVVSUHDGIURPUVWWLHU
cities to second, third and fourth-tier cities,
said Zhang Hongwei, a research fellow with the
Tospur Real Estate Consulting Co. Ltd.
Zhang analyzed that the spillover ef-
fect of regulative measures in some first-
tier cities has caused property prices in their
neighboring regions to shoot up.
In some third and fourth-tier cities,
destocking the housing inventory is carried
out alongside regulation and price control
measures, said Zhang, noting that the
government is acting with caution in those
regions.
Currently, measures adopted by lo-
cal governments to suppress the housing
market typically take place after the event,
http://www.bjreview.com
A model of a residential housing project in Foshan, south Chinas Guangdong Province, on March 25
said Wang Liguo, a senior official with the
Department of Housing and Urban-Rural
Development of Anhui Province.
According to Jia, restrictions on pur-
chases, loans and prices are administrative
measures which can treat only the symp-
toms, not the disease. He suggested that
the government should propel fundamental
institutional improvement to establish a
proper long-term mechanism.
Jia said that the government should take
the lead in formulating an overall land devel-
opment plan, which can ensure a sustainable
land supply.
Such a plan should also make it possible
for low-income groups to be accommodated
in public rental apartments and publicly
owned houses. Furthermore, the scheme
should mobilize private funds through public-
private partnership projects to engage in the
construction of livable cities and communi-
ties, and push forward the establishment of
an improved real estate taxation system, Jia
suggested. Q
Copyedited by Bryan Michael Galvan
Comments to dengyaqing@bjreview.com
APRIL 6, 2017 BEIJING REVIEW 35
BUSINESS MARKET WATCH
OPINION
&HQWUDO62(V6XFFHVV'HSHQGVRQ$VVHW/LJKW6WUDWHJ\
O
n March 12, Xiao Yaqing, Chairman of
the State-owned Assets Supervision
and Administration Commission of the
State Council (SASAC), urged centrally adminis-
tered state-owned enterprises (SOEs) to strictly
control haphazard investment practices and
consider market rules when determining their
development strategies. Xiao said central SOEs
KDYHWRLQFUHDVHSURWVDQGLPSURYHSURWDELO
ity, otherwise fundamentally reducing their debt
levels and eliminating the associated risks will
be impossible.
In previous years, central SOEs reduced
their asset-liability ratios by expanding asset
scale and investment. Pressure brought by
the global economic downturn, however,
exposed problems that such expansion had
concealed, and the ratios soon started to rise
again.
As supervisory authorities have
strengthened their oversight in recent
years, expansion of investment and assets
by central SOEs has been slowed, and their
debt ratios have stopped growing. However,
the high debt ratios have yet to be reduced.
According to the SASAC, the average debt
ratio of the 102 central SOEs stands at 66.6
percent. Among them, 12 have debt ratios
of over 80 percent, and four have ratios sur-
passing 85 percent.
36 BEIJING REVIEW APRIL 6, 2017
A workshop of the state-owned Shaanxi Baomian Textile Group in Baoji, Shaanxi Province
Central SOEs accumulated their debts
while enjoying much lower financing costs
than other types of businesses, especially
small and medium-sized enterprises (SMEs).
,IFHQWUDO62(VoQDQFLQJFRVWVZHUHDVKLJK
as those of SMEs, their debt ratios would be
even higher.
How should central SOEs improve their
RSHUDWLRQDOHIFLHQF\SURWDELOLW\DQGPDU
ket competitiveness in order to continue to
play their role as a pillar of the national econ-
omy? Central SOEs must be encouraged to
adopt an asset-light strategy and to depend
less on asset scale expansion.
They should first curb blind expansion,
investment and decision making. In the
years before the global financial crisis, cen-
tral SOEs explosively expanded their business
scale. Many of their present asset bubbles
were caused and most of their debts were
contracted in that period. Many central
SOEs possess a lot of land which has little
or no investment. Large amounts of land
thus remain unused, and a lot of bank credit
lacks reliable sources of repayment. The
government should issue stronger measures
concerning the development of central SOEs
XINHUA
to curb their blindness in investment and
decision making.
It is also important to intensify the re-
form of central SOEs and transform them
into real market entities. The opening up of
markets should be facilitated and market
access thresholds lowered further, allowing
more non-state capital to enter monopoly
sectors in order to press central SOEs to
improve their technology, asset structure
and quality of growth. Core competitiveness
should be the most important criterion for
evaluating central SOEs.
In a modern market economy, real mar-
ket players will not excessively rely on asset
scale expansion, but focus on improving ef-
FLHQF\DQGSURWDELOLW\2QFHFHQWUDO62(V
become such market participants, reliant
upon market forces for survival and growth,
they will make more prudent decisions on
strategy and investment. Q
This is an edited excerpt of an article written by financial
commentator Tan Haojun and published in Securities
Times
Copyedited by Chris Surtees
Comments to zhouxiaoyan@bjreview.com
http://www.bjreview.com
 MARKET WATCH BUSINESS
NUMBERS
($1=6.9 yuan)

Industrial Enterprises Profit and Growth by Business Type

31.5% Jan-Feb 1.8%
<HDURQ\HDUSURWJURZWK 3URW (bln yuan) Growth (y.o.y.) <HDURQ\HDUQHWSURW
of Chinas major industrial 697.67 200% increase of Agricultural
HQWHUSULVHVLQWKHUVWWZR 700 200 Bank of China, one of
months of 2017 the countrys biggest
600 175 lenders, in 2016
State-owned and state
A holding enterprises
150
500 B Collectively owned
C Joint stock
125 Foreign-, Hong Kong-,
400 352.23 D Macao- and Taiwan-funded
1.4% 100 E Privately owned
223 million
Month-on-month decline 300
233.63 245.21 75
of Chinas commercial Net addition of 4G users
crude oil inventory at the 200 of the telecom service
50
33.6% 29.8% provider China Mobile
end of February
100 in 2016, bringing the
25 14.9%
9.6% companys total number
6.85
0 0 of 4G customers to 535
A B C D E A B C D E million

172.6 bln yuan Industrial Enterprises Profit by Sector

Jan-Feb 2017 (bln yuan)
Chinas investment in
transport infrastructure
SURMHFWVLQWKHUVWWZR
55.86
$17.6 billion
months of 2017 Chinas service trade
75.81 884.01
Mining Manufacturing Electricity, thermal, fuel gas and
GHFLWLQ)HEUXDU\GRZQ
water production and supply from $20.9 billion in
January
Profit Changes for Major Industrial Sectors
Jan-Feb (y.o.y.)
1.19 tln yuan 3HWUROHXPUHQLQJFRNLQJ
Chinese insurers and nuclear fuel processing 129.0%
premium income in the Nonferrous metal smelting
UVWWZRPRQWKVRI and processing
123.0% 1.009 tln yuan
a 31-percent growth Chemical raw material and Chinas personal income
product manufacturing 65.9%
compared with a year tax in 2016, up 17.1
Computers, telecom and
earlier other electronic equipment 20.5% percent from a year
earlier, with four
Automobile 19.2%
top-tier cities
Textile 4.6% Shanghai, Beijing,
Shenzhen and
Electronic machinery and
equipment manufacturing 0.9% Guangzhou
contributing about
-39.3% Electricity, heat production and supply
40 percent of the total
-75 50 -25 0 25 50 75 100 125
(Source: National Bureau of Statistics)

http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 37

CULTURE
Health Across
The Himalayas
Why Chinese acupuncture therapy is just what the
doctor ordered in India By Sudeshna Sarkar
I
t was the hand of destiny, says Raman Kapur,
a veteran acupuncturist in Indias capital
New Delhi, which pushed him to learn the
ancient healing art. As a young doctor who
was studying for his masters degree entrance
examination, Kapur was prodded by his sister
and brother-in-law, both doctors in Adelaide,
Australia, to do something new instead of
following the conventional path in modern
medicine.
Why dont you study acupuncture? they
DVNHGKLPp,WKDVFDXJKWRQOLNHDIRUHVWUHLQ
Australia.
Kapur had never heard of acupuncture
before. It was the early 1980s, when the mobile
phone had not yet been invented, and acu-
puncture was an unknown phenomenon in
India. Still, a long conversation with an Australian
doctor who had been doing acupuncture for
three years convinced him, and as luck would
have it, there was a six-month waiting period for
his exam results, which coincided perfectly with
the six-month acupuncture course offered by
Beijing University of Chinese Medicine. So he
headed for China to enroll for the course and
gain some new experience.
When he came back, excited with his new
skill, he found that on the basis of his exam
results, he had been directed to study derma-
tology, a subject he was not keen on. So the die
was cast, and he decided to become an acu-
puncturist instead.
How a buzz was created
I started from scratch, said the 60-year-old,
who today is president of the Indian Society of
Medical Acupuncturists. I had just two beds in
RQHURRPLQP\KRXVHDQGIRUWKHUVWWKUHH
months, there would be no more than one
patient a day. But I cured an asthmatic patient,
who spread the word, creating awareness about
40 BEIJING REVIEW APRIL 6, 2017
acupuncture, and then patients started coming
in by word of mouth.
Besides giving him a flourishing practice
with a patients list that includes the whos who
of Indiapresidents, ministers and gover-
norsacupuncture has played a special role in
his family life.
His wife, Sunita Kapur, who obtained her
degree in medicine from one of the most
prestigious medical colleges in India, had an
accident and broke her tailbone. The pain was
intense, the 53-year-old said. My orthopedic
friends could not treat me and gave me pain-
killing injections, prescribing bed rest for six
months. So my acupuncturist husband asked
me to undergo acupuncture. After he treated
me, I not only felt better, but after 10 days, I was
back to work in my hospital.
That, she said, developed her interest in
acupuncture, whereas earlier she had no faith
in it. I now believe that the system works, she
said. Her faith deepened after her elder son
contracted amblyopia, a sight disorder, which
left him blind in one eye.
It was like history repeating itself.
Ophthalmologists said it was incurable and the
boy would never regain vision in that eye. So
the Kapurs turned to acupuncture once again,
and their son, now 32, is fully cured.
So Sunita Kapur decided to start learning
acupuncture, and after initiation by her hus-
band, she went to Nanjing University of Chinese
Medicine for basic and then advanced courses
in acupuncture. Today, the couple run the
Kapur Acupuncture clinic, and over the past 15
years, they have taught acupuncture to almost
300 doctors. Sunita Kapurs specialty is treating
infertility with acupuncture, which she learned
in Texas.
Sixty to 70 percent of my patients come
with infertility problems, and I get very good
results with acupuncture, she said. So many
hormonal imbalances in the body can be treat-
ed with acupuncture. You can combine it with
Ayurvedic drugs.
Like traditional Chinese medicine (TCM),
Ayurveda is a traditional Indian holistic healing
system which uses curative herbs. Ironically,
TCM herbs are banned in India, since the Indian
Government wants to promote its indigenous
medicinal systems. Also, acupuncture can only
be practiced by doctors.
&RH[LVWLQJZLWK\RJD
The Kapurs belong to a band of allopathic
doctors-cum-acupuncturists who are lobbying
the provincial and central governments in India,
as well as the media, to change the rules and
allow extensive use of acupuncture to deliver
DIIRUGDEOHPHGLFDOVHUYLFHLQ,QGLDFUHDWHDRZ
of medical cooperation with China and foster
closer relations between the two neighbors.
Indian Prime Minister Narendra Modi went
to Kunming [in southwest Chinas Yunnan
Province] to open a yoga college, Raman
Kapur said, referring to the inauguration of the
China-India Yoga College on the campus of
Yunnan Minzu University in 2015, as one of two
dozen agreements reached between Chinese
Premier Li Keqiang and Modi. If the Chinese
can be open enough to have a yoga college in
Kunming, why should Mr. Modi not be keen to
open an acupuncture college in New Delhi? We
should call it acupuncture diplomacy. The two
countries can come closer through traditional
healing. That is my dream. That is what I am
pushing for.
Indian acupuncture associations are calling
for closer ties with China so that more experts
can come from China to teach more doctors in
India. We should also have more people learn-
ing acupuncture in India, Raman Kapur said.
Acupuncture is still done mostly in the private
sector, and we dont yet have a full four-year
acupuncture degree course in India. But we are
[lobbying] the government for [this], so that
we can have more acupuncture practitioners.
Then we can start doing more research work in
India.
Acupuncture attained another milestone in
recognition in India last month, when President
Pranab Mukherjee signed a bill that made acu-
puncture legal in Maharashtra, the Indian state
WKDWLVKRPHWR0XPEDL,QGLDoVQDQFLDOFDSLWDO
and the location of Bollywood.
The signing came after Maharashtras
Minister for Medical Education, Vinod Tawde,
presented the bill to the state legislative as-
sembly in 2015. Acupuncture has a 2,500-year
http://www.bjreview.com
 CULTURE

COURTESY DR. MRIGENDRANATH GANTAIT

history, Tawde told the assembly. There have
been instances where luminaries or senior lead-
ers benefited from the therapy, but it did not
have any recognition.
Acupuncture came to India in 1959 through
a historical link that goes back to World War II
and the team of Indian doctors who were sent
to China to provide humanitarian assistance
during the Japanese invasion. The Acupuncture
Association of India (AAI) was founded in 1977,
after which nearly two decades elapsed before
West Bengal in 1996 became the first state in
India to legalize the therapy.

Pioneering
acupuncture in India
Mrigendranath Gantait, President of AAI, is one
of the earliest acupuncturists in India, having
OHDUQHGWKHWKHUDS\IURPWKHUVW,QGLDQGRFWRU
to undergo training in China, Bejoy Kumar Basu.
Basu was part of the Indian Medical Mission
that served in China in 1938-43, during which
he saw acupuncture being practiced and its Mrigendranath Gantait, President of the Acupuncture Association of India, meets with Jing Ying, Associate
EHQHWV'UDZQE\WKHWKHUDS\KHUHWXUQHGLQ &RXQVHORURIWKH6KDQJKDL0XQLFLSDO)RUHLJQ$IIDLUV2IFHLQ6KDQJKDLRQ2FWREHU
1958 after the war had ended and the Peoples gan in 1971, continues four decades later even the peoples of India and China, Gantait said.
Republic of China had been founded, to learn it. after his retirement, as he now runs a private In 1973, another visit by Basu to China to learn
When Basu returned to India, his students practice and participates in acupuncture camps acupuncture anesthesia was the beginning of a
were the first to become aware of the pos- as a social service. thaw in the frozen India-China relationship after
sibilities of this little-known branch of healing. As a doctor of modern medicine, I realize WKHERUGHUFRQLFWEHWZHHQWKHWZRFRXQWULHV
Gantait, then a third-year medical student, was well how acupuncture therapy can become a in 1962. Some media called this visit acupunc-
one of them. boon to the medical care system, Gantait said. In ture diplomacy in comparison to the ping-pong
A senior student of our college was taking many ailments where modern medicine cannot diplomacy in Sino-U.S. friendship.
acupuncture treatment for bronchial asthma do much, acupuncture can give better benefits The therapy is not just about improving
from Dr. Basu, and we came to know about without producing adverse side effects. ties between governments, but creating amity
acupuncture therapy from him, Gantait remi- Activists say acupuncture has great scope in between the peoples of both countries. Once,
nisced. Seeing our interest, Dr. Basu began India. The cost of treatment is very low, so that a China meant nothing to Baneshwar Hazra, a
to teach us acupuncture therapy at his clinic vast number of people from low-income groups rickshaw puller in Kolkata, who earned a precari-
in Kolkata. This teaching was free, as Dr. Basu can get relief at an affordable cost. Acupuncture ous living by carrying passengers in a tricycle
wanted to spread acupuncture in our country. is effective and has no adverse side effects, which cab. Then the 38-year-old developed Buergers
Since there was no book on acupuncture are seen in allopathic drugs, Gantait said. disease, which blocked the blood vessels in his
in English at that time, Gantait remembers his Raman Kapur estimates that an acupunc- feet and caused gangrene. Doctors said the feet
teacher dictating from hand-written notes he had ture clinic costs less than 100,000 rupees ($1,412) would have to be amputated at the ankle.
jotted down while learning acupuncture in China in to set up, while an allopathic clinic requires It was like a death sentence to Hazra, since
1958-59. After the introduction, Basu took Gantait several million rupees to buy just one diagnostic it would also mean loss of his livelihood. As a
to China in 1978 to get a postgraduate certificate machine, such as a magnetic resonance imaging last-ditch measure, he visited Gantaits acupunc-
in acupuncture from Nanjing University. (MRI) scanner. In an acupuncture clinic, all you ture clinic, where, much to his amazement, he
Subsequently, Gantait helped set up the first was cured.
need are the needles, and they can be reused,
government acupuncture clinic in Kolkata, where Whenever any patient takes acupuncture
he explained. But in an allopathic clinic, the
he served as founder director from 1996 to treatment, he comes to know that the therapy
expensive MRI machine is something that just
2010. In this time, he also established acupunc- comes from China. Thus, patients benefiting by
provides evidence of disease; its not the therapy
ture clinics in all 18 state district hospitals and 10 acupuncture therapy form a mental attachment
itself. But acupuncture is therapy.
lower-level hospitals in West Bengal. In addition, with China, Gantait said. That reinforces friend-
he played a substantial role in persuading the ship between the peoples of India and China. Q
West Bengal Government to give legal recogni- Greeted at the grassroots
tion to acupuncture through the West Bengal Besides its curative effects, acupuncture can
Acupuncture System of Therapy Act in 1996. also build a bond between India and China. Copyedited by Chris Surtees
Comments to yanwei@bjreview.com
Gantaits tryst with acupuncture, which be- Acupuncture is a bridge of friendship between
http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 41
CULTURE
Bridging a Cultural
Divide With Music
A talented young musician breathes new life into
traditional Chinese music By Ding Ying
W
hen Ma Lin rushed out of the New York
subway for her interview appointment
with Beijing Review with a heavy back-
pack on a cold and windy afternoon in March,
she seemed more like an energetic college
student than an elegant musician.
One of Chinas top 10 young pipa (Chinese
lute) performers, this musician is pursuing her
second masters degree, in art and culture
management, at New Yorks Pratt Institute, a
renowned college especially for design and
fine arts established in 1887. Nine years ago,
VKHJRWKHUUVWPDVWHUoVGHJUHHIURP&KLQDoV
best music college, the Central Conservatory of
Music, in Beijing for her outstanding skills and
WKHRULHVRIPXVLF6KHLVDOVRWKHUVW&KLQHVH
pipa performer to hold a special Chinese folk
music concert at the UN Headquarters in New
York City.
Having performed in dozens of countries
during the past decade, Ma came to the conclu-
sion that its not enough to introduce Chinas
traditional folk music to other peoples of the
world in a musical way.
I hope more and more people in the world
can enjoy my music and also our traditional
folk music. I think it might be more effective
to do it through a standard business way, she
explained. New York City has not only the
worlds top-level musicians and artists, but also
the most successful commercial performance
management models. So, here I am.
A merger of styles
Several days ago, Ma performed a special con-
FHUWDWWKH&KLQD,QVWLWXWHWKHROGHVWQRQSURW
organization in the United States solely dedi-
cated to advancing a deeper understanding of
China, which was founded in 1926. Apart from
traditional Chinese folk music, she also chose
42 BEIJING REVIEW APRIL 6, 2017
to play several pieces from her 2016 albums in
strong Western styles.
This is a very fresh experience. I never
thought the pipa could be played that way. Its
surprisingly pleasant! Zeppa Chang, a young
Chinese student at New York University, told
Beijing Review.
In her album New Age (or Xinqinmantan
in Chinese), Ma demonstrated the pipas per-
fect expression as a musical instrument in two
Western-style pieces. In Dance Floor Banter,
a Viennese waltz, the pipa plays the part of a
shy lady who is invited to dance by a gentle-
man, played by the piano, telling a sweet and
interesting love story. In the other piece, The
Eight Drunken Immortals, the pipas powerful
expression together with the piano and the
FHOORFUHDWHVDVZRUGVPDQWKHPHGPDJQLFHQW
musical play effect.
This is an interesting collaboration between
a traditional Chinese folk musical instrument
and Western musical instruments, Ma said. She
explained that her professors and classmates at
Pratt can gain a better musical appreciation of
the pipa through these two pieces than through
other pieces of traditional Chinese style.
To most foreigners, it will be hard to un-
derstand the special cultural atmosphere of
our traditional folk music, which is based on our
thousands of years of civilization. Comparatively,
discovering the beauty of an exotic musical
instrument in a familiar way is easier, Ma said.
But it doesnt mean they cannot appreciate
our traditional folk music. A piece entitled The
Misty Rain of South China, representing Mas
outstanding skills in folk music, has earned over
6 million hits on websites at home and abroad.
Bathing in her gentle tremolo performance in
Stroll by the West Lake, people can almost feel
the breeze on a quiet spring night.
What an incredibly perfect synthesis of
harmony and relaxation, a U.S. member of the
audience said to Ma after her performance at
the China Institute. Im not talented in litera-
ture, but I like to express my feeling about such
beautiful things.
Ma Lins music is very creative and open-
minded. This is a successful venture combining
the pipa together with Western musical instru-
ments and Western musical styles, Yong Ho,
supervisor of Chinese language programs for
the UN, told Beijing Review. He also highly
praised Mas recent performance at the UN
Headquarters.
We started to cooperate with Ma Lin in
late 2016. She is widely accepted by both
Chinese audiences and others of different na-
tions. Audiences with Chinese backgrounds
can appreciate her outstanding musical skills.
Those who are not familiar with Chinese cul-
ture can enjoy the lovely music created by an
exotic musical instrument, he explained.
In May, Ma will release a new album that
is full of this new-style folk music combining
Chinese and Western musical instruments and
musical styles in New York City. Ma said she had
pleasant and successful cooperation in her last
album with young Chinese composers and mu-
sicians living in New York City, who are also her
partners in her new album. I hope New Yorkers
will like my music. They are the audience with
the pickiest ears in the world because they are
already spoiled with the best musicians in the
world, she said.
Commercial performances
To Ma, studying art and culture management
is also an important approach for realizing her
ideal of introducing Chinas folk music to the
world.
http://www.bjreview.com
 CULTURE

COURTESY OF MA LIN
Currently, Chinas folk music is mainly
introduced to other countries and regions in
government-organized activities as part of
cultural exchange programs. We encountered
cultural clashes during our performances in oth-
er countries, Ma recalled. In China, if you sign a
contract to perform at a theater, all you need to
do is to perfect the performance. In some coun-
tries, you also have to pay for electricity and
lighting and sound equipment. Ma believes
her study at Pratt will enable her to master the
regulations and tricks of Western commercial
performances and help other Chinese musi-
cians stage concerts through commercial
channels, which will be a good supplementary
approach to the current government-backed
method.
According to Pratt, its art and cultural
management program can provide the stra-
tegic leadership skills to enable participants to
manage, market, innovate and run creative
enterprises, to examine trends and global chal-
lenges, to use technology to advance dialogue
and engagement, and to lead the development
of thriving cultures.
I love the pipa. I have spent decades on
perfecting my performance skills. Now I am
willing to try any endeavor to let more people
experience the special beauty of this musical
instrument, Ma said. They dont have to sit in
a music hall or a concert. I will be very glad to
know they have had a good time listening to
my music.
Ma started to practice the pipa when she Ma Lin with a pipa
was 3. Her parents, both engineers, believed
that practicing the complicated finger move- Quick Facts About thePipa (Chinese lute)
ments needed to play this musical instrument
could help brain development. I never went
The pipa is a traditional Chinese musical instrument belonging to the category of plucked in-
WRDPRYLHWKHDWHU]RRRUDQ\HOGWULSRXWVLGH
struments. The name pipa is made up of two Chinese syllables, pi () and pa (), which
school. There was always a hole in my winter
refer to the two major hand postures when the instrument is played: Pi is to strike the strings
sweater because I held a pipa in the same posi-
outward with the right hand, and pa is to pluck the strings inward toward the palm of the
tion for hours every day, she recalled. It was
hand.
hard for a child to maintain a daily life like this,
The pipa, also called the Chinese lute, is one of the most popular Chinese instruments and
but I wanted to be the best player. When she
has been played for almost 2,000 years in China. The instrument has a pear-shaped wooden
was around 10 years old, Ma won a folk music
ERG\ZLWKIRXURUYHVWULQJV7KHHDUOLHVWUHFRUGRIWKHpipa in Chinas history can be dated back
performance contest in Tianjin and decided to
to the Qin Dynasty (221206 B.C.).
choose music as her lifelong career.
The Tang Dynasty (618-907) was a very important period for the development of the pipa,
While studying and performing in New
which became extremely popular during this era and was a primary musical instrument in the
York City, Ma still performs in China and other
imperial orchestra. It was also during this period that the pipa was introduced to other Asian
countries. Maybe I will establish a studio of my
countries like Japan, Korea and Viet Nam. In the Tang Dynasty, the strings were played using a
own in the future as an attempt to manage
ODUJHSOHFWUXPZKLFKKDVQRZEHHQVXSHUVHGHGE\WKHQJHUQDLOVRIWKHULJKWKDQGDOWKRXJK
my performances in a commercial way and to
QJHUSOD\LQJWHFKQLTXHVH[LVWHGDVHDUO\DVWKH7DQJ'\QDVW\,WZDVQRWXQWLOWKH6RQJ'\QDVW\
teach children the pipa, she said. As long as it
WKDWWKHYHVWULQJHGpipa disappeared.
will help to introduce this musical instrument to
The pipa is renowned as the king of Chinas folk musical instruments due to its delicate
more people. Q
DQGSDVVLRQDWHH[SUHVVLRQRIPXVLF*HQHUDOO\VSHDNLQJDTXDOLHGpipa performer must master
(Reporting from New York City)
Copyedited by Chris Surtees
Comments to yanwei@bjreview.com
RYHUGLIIHUHQWNLQGVRIQJHULQJVNLOOV%DL-X\LDIDPRXV7DQJ'\QDVW\SRHWZURWH
a long poem about the pipa, describing the music thus: The bold strings rattled like splatters of
VXGGHQUDLQ7KHQHVWULQJVKXPPHGOLNHORYHUVoZKLVSHUV&KDWWHULQJDQGSDWWHULQJSDWWHULQJ
and chattering; As pearls, large and small, on a jade plate fall.

http://www.bjreview.com APRIL 6, 2017 BEIJING REVIEW 43

FORUM
Is It Feasible to
Levy a Tax on Robots?
A
re robots eating up human posts? The to robots, so that they can acquire new skills
answer seems to be yes in some and enter new industries.
manufacturing sectors, as robots have However, opponents argue that, as part
not only led to the disappearance of some of enterprises production inputs, robots
posts, but are also forcing lower wages on have already been taxed under the cur-
human laborers. In this situation, anti-artifi- rent taxation system. Since the Industrial
cial intelligence (AI) activists say people can Revolution, all kinds of machines have been
no longer turn a blind eye to the negative snatching jobs from human beings. If ro-
effects of automation. bots are to be taxed, does it mean that all
How can the challenges posed to hu- kinds of products and machines that help to
man employment by robots be countered? improve productivity will be taxed? This will
In a recent interview, Microsoft founder Bill undoubtedly hamper industrial innovation
Gates proposed to tax robots. He believes and creativity.
that as human laborers have to pay income
tax on their wages, robots that do the same
work should also be taxed similarly. These tax
No need for a robot tax
Liu Yuanju (The Beijing News): Human wis-
revenues could be used to finance training
dom is something that AI cant replace yet.
programs that help those who have lost jobs
Those who believe that robots can replace
human laborers are not familiar with the
SRVWVWKDWURERWVKDYHDOUHDG\OOHGLQ
'HDU5HDGHUV Lets take doctors for example. This is a
knowledge-intensive job with high demand
Forum is a for professional competence. A medical
column that diagnosis is actually a process of collecting
patients information and then making judg-
provides a space ments by scouring the existing knowledge
for varying base. Its said that the best method for learn-
ing how to diagnose and treat a patient is
perspectives on
to attach a rookie to an experienced doctor,
contemporary as the former can assist in searching for
Chinese society. relevant materials whenever necessary and
in this process improve his or her skills in pa-
We invite you to tient examinations.
submit personal AI-based diagnostic systems can
search for the largest amount of medical
viewpoints on past
documents and records as well as acquire
and current topics experience and new knowledge very quickly.
(in either English Therefore, diagnosing and treating patients
will probably be among the first technical
or Chinese). SRVWVWREHOOHGE\URERWGRFWRUV+RZHYHU
yanwei@bjreview.com the research and development of new medi-
cines, proposing hypotheses and so on, are
Please provide your name WKLQJVWKDW$,ZLOOQGGLIFXOWWRGR
and address along with With the expansion of the human lifes-
your comments pan, the demand for elderly care services is
RQWKHULVH%XWURERWVFDQDOVRQGLWKDUGWR
46 BEIJING REVIEW APRIL 6, 2017
assume nursing roles. As Bill Gates has said,
in areas of education and providing for the
aged, where human sympathy and caring are
required, there is still a shortage of laborers.
In the long run, when robot work-
ers replace human laborers in physically
demanding or highly dangerous jobs, the
latter will move to better posts. For example,
robots can replace people in some low-pay
manual work, enabling human laborers to do
more sophisticated jobs. In this sense, to tax
robots will delay the automation process in
such posts and thus hamper scientific and
technological progress. If you prevent robo-
laborers from replacing human beings in
WKHVHSRVWVLWDSSHDUVWKDW\RXDUHJKWLQJ
to protect their jobs, but actually its a waste
of the most valuable resource: humans.
Of course, the replacement will be a
time-consuming process with a variety of
challenges. As far as the whole society is
concerned, some people will be negatively
affected. Human society does not follow the
law of the jungle, which means some of the
wealth produced by robot workers will be
used to help those who are negatively af-
fected by automation.
However, it must be made clear that we
mean to safeguard human beings but by no
means intend to curb the development of AI
technologies. When businesses have made
profits through robots, there can be some-
WKLQJOLNHDWD[RQWKHSURWVEXWQRWDURERW
tax.
Li Xiaohua (Peoples Daily): The propos-
al of taxing robots intends to reach a balance
between the rising productivity boosted by
AI technologies and the well-being of human
beings, particularly less-educated laborers.
If the government gives priority to rising
productivity, it should not tax robots, but
instead should do more to support AI-related
innovation and utilization. If employment is
more valued, the pace of automation should
be slowed down by the means of taxation.
However, taxing robots is unlikely to
http://www.bjreview.com

prevail in an open global environment full
of competition. When the practice of levy-
ing taxes on intelligent machines curbs the
productivity of a countrys manufacturing, its
international competitiveness will be weak-
ened, which will in turn lead to shrinking
exports and the loss of jobs for workers.
$QHZURXQGRIVFLHQWLFDQGWHFKQRORJL
cal revolution is sweeping the whole world.
The core of the new economy, represented
by AI, is intelligent manufacturing. If the pace
of AI development is hurdled due to taxation
on robots, the losses will greatly outnumber
the gains.
Take China for example. Its manufactur-
ing sector is strained by rising labor costs and
its comparative advantage in this respect is
disappearing. AI technologies are crucial for
the upgrading and transformation of Chinas
manufacturing industry. In this sense, instead
of taxing robots, the government should
encourage new technologies with industrial
robots as a priority.
On the whole, whether it is machines or
AI technologies, theyve all helped to boost
productivity and create more wealth for hu-
man society.
The innovation of cutting-edge automa-
tion and AI technologies deserves greater
support. Meanwhile, in order to reach a
balance between robotic manufacturing
http://www.bjreview.com
LI SHIGONG
and human employment, the government
should also invest a portion of the wealth
created by new technologies in vocational
training for workers who have lost jobs due
to technological upgrading, so that they
too can reap the benefits of scientific and
technological advancement and economic
growth.
A reasonable option
Qiao Xinsheng (Shanghai Securities
News): Some Chinese experts argue that
taxing robots will hamper the progress of sci-
ence and technology. Robots are originally
and essentially tools, not laborers in the real
sense, and thus no taxes should be levied
on tools. Their arguments seem reasonable,
but there are essentially no differences be-
tween the work done by human workers and
robots. It seems that to tax robots is to tax
tools, but the fundamental issue is over the
function of taxation.
The development of AI technologies will
make it possible for robots to replace more
human workers. Since human workers need
to pay personal income tax, robots, who re-
place them, should also do so. When human
workers lose their jobs to robots, their social
security benefits will also suffer from the
loss. In this case, to tax robots and funnel the
collected money into human social security
FORUM
funds will help sustain the whole system.
Meanwhile, human laborers will also enjoy
the benefits of scientific and technological
progress when robots manage to cut the
working time for humans.
French economist Thomas Piketty points
out in his best-seller Capital in the Twenty-
First Century that the biggest plight facing
human beings since the Industrial Revolution
has been the rising tax burdens placed on
the shoulders of ordinary workers, compared
to declining burdens on the owners of capital
and the means of production. While ordinary
laborers are required to pay personal income
tax, those who possess capital are exempted
from this tax item and able to invest their
capital in robotic manufacturing systems
that may help them save value-added taxes.
This unfairness in the taxation system will re-
sult in a widening gap between the rich and
the poor.
Essentially, its not a tax on robots, but
on the owners of robots, which means using
the capital gains tax as a way to make social
wealth distribution fairer. Collecting capital
gains tax will gradually narrow the gap by re-
ducing tax burdens on ordinary workers and
increasing taxes on investors.
How to fairly distribute the tax burden
on ordinary laborers and capital owners is
a question that the Chinese Government
should also take into consideration. An
appropriate increase of ordinary laborers
welfare will help to raise their living standards
and remove anxieties.
Taxing robots will help to liberate la-
borers from heavy work, reduce their tax
burdens and social security pressure, and im-
prove their lives. More importantly, its a way
to change an irrational income distribution
model to make it more conducive to the re-
employment of workers displaced from jobs
that have been taken over by robots. Q
Copyedited by Dominic James Madar
APRIL 6, 2017 BEIJING REVIEW 47
EXPATS EYE
Brought up in Beijing
By Shayer Shabab Utsho

I
think I have the best of two worlds. I was

born in Bangladesh, and I grew up in China,
the land of Confucius and my second
home. The earliest and most prominent memo-
ries of my life are from China, and Chinese is a
language I have spoken since childhood.
When I was just over 2 years old, my parents
and I moved to Beijing. My father received an in-
vitation from China Radio International to work
as a language expert in their Bengali language
department. Bengali is the official language
of Bangladesh as well as one of the official
languages of India. It is spoken in South Asia as
well as wherever there is a Bengali community
worldwide.
My father told me that he always had a
dream of traveling to the land of the Great Wall
and understanding a nation enlightened with
Confucian philosophy and teachings. This lent
him the impetus to learn Chinese well enough
to be able to converse in the language in as
short a period as four months.
I, on the other hand, got my Chinese
language skills from my schools. My earliest
memories, some of the warmest teachers
Ive come across and my first friends were all
in Beijing. When I was 12, and we were about
to return to Bangladesh, I couldnt let go. I felt
destined to return to Beijing someday, and here
I am, nine years later, studying for a bachelors
degree in Beijing under a Chinese government
scholarship and reliving my childhood bit by bit.
This time, Ive found that China has changed
a lot. Over the course of 20 years, the develop-
ment has been mind-blowing. I personally have
witnessed some of these changes: the new in-
dustrial revolution, the complete digitalization of
life, the increase in security alongside freedom
DQGH[LELOLW\WKHJURZWKRIWKHHQWHUWDLQPHQW
industry, and especially, the advancement in
international communication. The people of
China have begun to include English in their
daily lives and have also made efforts to bring
non-Chinese into their spheres of language and
culture through different Chinese language
programs, TV shows, competitions and more.
While Ive been conversant in Chinese since
childhood, I hadnt looked too far into the lan-
guage until I participated in the Chinese Bridge
3URFLHQF\&RPSHWLWLRQLQZKLFKLQWHUQDWLRQDO
contestants compete in Chinese language pro-
FLHQF\WHVWV
I won the Best Performer Award in the
Chinese Bridge Proficiency Competition for
teens in 2012, as well as in the Chinese Bridge
2016 Chinese Proficiency Competition for
3UL]HZLQQHUVFHOHEUDWHDIWHUWKHFRQFOXVLRQRIWKH(LJKWK&KLQHVH%ULGJH3URFLHQF\&RPSHWLWLRQLQ.XQPLQJ
Yunnan Province, on October 31, 2015
Foreigners Across the Globe. Taking part in
these competitions kindled my interest in look-
ing deeper into Chinese culture, and I have
got to know more about Chinese teachings,
Confucianism and ancient Chinese culture.
Chinese history encompasses a vast realm
of various cultures, philosophy handed down
from generation to generation, and many liter-
ary practices. Studying all this further ignited my
interest in understanding Chinese people.
Irene Bloom, late U.S. scholar and sinologist,
explained the Confucian value system as like a
WULSRG2QHOHJRILWLVOLDOGHYRWLRQRUOLDOSLHW\
the second is humaneness; and the third, rituals
or ritual consciousness. Filial piety, respect for
ones parents, is considered the most funda-
mental of Confucian values, the root of all the
others.
Aside from hereditary teachings, Chinese
social values range all the way from doorstep
manners and family behavior to public interac-
WLRQVDQGRIFLDOPHHWLQJV7KHLUDUWFDSWXUHVDQ
amazingly vivid image of traditional families and
ethnic communities, which can be very insight-
ful when observed closely.
Personally, I am most intrigued by the tra-
ditional music. The traditional pentatonic music
captures the essence of natural beauty that
Chinese people treasure so much. My fellow
musicians and I have been influenced by this
RZZKLOHFRPSRVLQJRXURZQPXVLF7KH\DOVR
XINHUA
like using music with kungfu, tai chi and other
indigenous martial arts, as if charging a powerful
VWZLWKHPRWLRQV
The words they use to describe each de-
tail in literature, art, music and martial arts are
picturesque and self-explanatory, making one
understand what these things really are. This
is seen even more prominently in traditional
Chinese medicine (TCM), where words like qi,
yin yang and xue, which roughly translate
to energy, balance of negative and posi-
tive, and blood, present a revolutionary view
of human anatomy. TCM makes unthinkable
treatments possible, often in easier ways than
most medical systems used around the world,
and without side effects. These are some of
the most intriguing aspects that make so many
international enthusiasts choose China as the
place for their studies.
Remember the saying when life hands
you lemons, make lemonade? Extending
the connotation, I would like to say, when life
hands you an opportunity to study in China,
dont miss out on the language. Its insight-
ful, and its fun. Thats what I have learned in
my years in China. Q
The author is a Bangladeshi student studying
computer science and engineering in Beijing
Copyedited by Chris Surtees
Comments to yanwei@bjreview.com

48 BEIJING REVIEW APRIL 6, 2017 http://www.bjreview.com