This Week in China
This Week in China
Top Story
Beijing's opening ceremonies lifted off without a hitch Friday, bringing awe to spectators in China and around the world -- or so it seemed. The squeaky-clean ceremonies, however, were too good to be true in some respects, as reports emerged of lip-syncing and computer-generated fake fireworks.
Violence, too, interrupted the first few days of competition. Attacks continued in the western region of Xinjiang, while a Chinese man attacked an American couple with a knife at a popular tourist destination on Saturday, killing the man and wounding his wife before killing himself. The couple was related to an American Olympic volleyball coach.
More Olympics
China’s strategy for focusing on events that award more medals appears to paying off. As of 3:30 pm Wednesday afternoon, China led the gold medal count with 17, while the United States had the most medals overall at 29. Check out Google's nifty map for updates.
Seats at the Olympics are surprisingly empty.
Less surprisingly, so are the "protest pens."
A British journalist was detained Wednesday, covering a protest led by eight U.S. pro-Tibet activists.
The first U.S. president to attend an Olympics on foreign soil, President Bush used his presidential-record fourth visit to prod China on religious freedom, inaugurate a new U.S. embassy in Beijing, and cheer on America's athletes.
Politics
Religous leaders describe a government crackdown. One religious dissident, detained on his way to visit a service with President Bush, has escaped, however.
The Dalai Lama is in France, but will not meet with French President Nicolas Sarkozy.
Economy
Thanks to a rapidly weakening U.S. economy, China is set to become the world's largest manufacturer, four years earlier than predicted.
China's trade surplus grew in July to $25.3 billion, its highest level in eight months and a 4 percent increase from July 2007.
Wholesale prices, however, rose even more, up 10 percent from July 2007.
Overall, inflation is down and growth is "set to stabilize."
Environment
Is China's Olympic cleanup actually bad for global warming?
Taiwan
Taiwan plans to seek "participation," but not a "return" or membership, in the United Nations this fall.
Taiwan's coast guard is holding a former Chinese soldier who swam eight hours across the Taiwan Strait to defect.
This Week in China
Top Story
With just over a week left to go before the Olympics, strong wind and rain have helped improve air quality in Beijing. But the Chinese government isn't taking any chances, eyeing "emergency measures" that still may not be enough to clear the skies. On the ground, officials are hiding buildings and areas considered to be Olympic eyesores behind newly erected walls.
Despite increased security measures, violence broke out among some 50,000 people waiting in line when the final batch of Olympic tickets went on sale Friday. Olympic organizers apologized for a scuffle between police and reporters in Hong Kong.
For more on China's run-up to the Olympics, check out FP's photo essay and list of five ways the Beijing Olympics will be the "biggest, baddest ever."
More Olympics
China's anti-doping officials are planning the toughest drug-testing program in Olympic history.
What's more, a new sex determination lab will test female Olympians suspected to be males.
U.S. Sen. Sam Brownback suspects the Chinese government is planning to spy on hotel guests during the games.
Politics
Authorities detained a teacher who had posted images of schools that collapsed in the Sichuan earthquake on the Internet.
Vice President Xi Jinping expressed concern over the ICC's case against Sudanese president Hassan al-Bashir, as Sudan's finance minister visited Beijing Tuesday.
The Dalai Lama met with John McCain in Colorado Friday. China's Foreign Ministry was not pleased.
Economy
An unlikely alliance between China and India helped spur this week's breakdown in the Doha trade talks.
An anticipated coal shortage may spark an electricity crisis.
China is spending an estimated $40 billion on fuel subsidies this year, while also accounting for 40 percent of the world's recent increase in demand for oil.
With 253 million users, China is now the world's biggest Internet market.
Hong Kong and the mainland agreed to further enhance economic ties. Hong Kong Disneyland is expected to benefit.
China moment
Aerobic pole dancing is a hit in fitness clubs.
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This Week in China
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Bombs exploded in two public buses Monday in the southwestern city of Kunming, killing at least two passingers and injuring 14. Officials refuted reports that bizarre text messages had preceded the bombings, and said Tuesday that no evidence had been found linking the bombings to the Beijing Olympics.
On Wednesday, officals tripled the reward for information related to the bombings to 300,000 yuan (around $43,500). Meanwhile, the city of Beijing said it would step up bus-security measures, and Shanghai, which is hosting Olympic soccer matches, announced it will install security cameras on 1,600 buses.
Olympics
Western TV networks are pushing back agianst constraints on Olympic coverage.
Hotels in Beijing are slashing prices as the anticipated tourist onslaught fails to materialize.
Some U.S. Olympians may wear masks in Beijing to protect their lungs from pollution, much to the chagrin of their hosts.
The opening ceremonies will employ "green fireworks" designed to limit pollution.
Guess who's not invited?
Politics
Officials will allow approved protests in designated city parks during the Olympics; the crackdown on Internet dissent, however, continues. Entertainers deemed a threat to China's sovereignty are no longer welcome, either.
China and Russia ended a decades-long border dispute.
Although 86 percent of Chinese are happy with their country's overall direction, more than a third see Japan and the United States as enemies.
A Tibetan living in Beijing is suing the Chinese government after being denied a passport for three years.
Economy
One new report says China's economy has averted the threat of overheating, while another argues the government needs to temper "hot money" inflows to stave off inflation and stabilize markets.
U.S. companies are keeping a wary eye on a new Chinese antitrust law.
Other News
A coal mine flooded in southern China, trapping 36 miners and killing at least seven.
China has more smokers than the United States has people. Unsurprisingly, China's anti-smoking campaign is not having the desired effect.
This Week in China
Top Story
Over the weekend, U.S. President George W. Bush resisted calls to boycott next month's opening ceremonies in Beijing, saying that to do so "would be an affront to the Chinese people." Bush reaffirmed his positions on human rights and religous freedom in China, but said he did not want to endanger his ability to "speak frankly" with Chinese leaders.
In a reversal, French President Nicolas Sarkozy's office announced Wednesday he would in fact attend the opening ceremonies. Chinese officals responded by warning Sarkozy against meeting with the Dalai Lama in France next month.
Economy
A new report by Carnegie Senior Associate Albert Keidel finds that the Chinese economy will surpass that of the United States by 2035 and be twice its size by midcentury.
China and Russia are leading the opposition by five developing countries to the emissions targets endorsed earlier this week by the G-8. Still, the 15 "major economies" committed to long-range emissions cuts in principle.
China signed an agreement with the government of Niger to help improve power supplies to the African country, which has recently hosted Chinese companies exploring for uranium and oil.
China is keeping pace with the United States in trade with Africa. (More on China in Africa here.)
Indian silk producers are the latest to feel the fallout from May's earthquake in Sichuan.
For the first time since 1999, new Chinese banknotes will not feature the image of Mao.
Olympics
Hundreds of factories in Tangshan and Tianjin will shut down soon in an effort to improve air quality during the games.
Banned by Mao in the 60s, America's national pastime isn't quite catching on in China, despite the help of some former-MLB talent.
The China Christian Council will pass out tens of thousands of free Bibles during the Olympics.
Politics
China's Foreign Ministry announced that, after a nine-month delay, formal negotiations with North Korea on its nuclear weapons program will resume Thursday.
Health
A new study finds that 25 percent of Chinese adults are considered overweight or obese.
The BBC discovered that Beijing is still failing to meet air quality standards set by the World Health Program, despite promises to do so by next month's Olympics.
China Moment
Chinese officals are cracking down on skimpy outfits in discos, karaoke bars, and other entertainment venues. The rules, which say workers should dress "tastefully," come part of an effort to crack down on prostitution and drugs.
This Week in China
Top Story
U.S. Secretary of State Condoleezza Rice met with Chinese President Hu Jintao and Premier Wen Jiabao (he's the guy on the right) in Beijing over the weekend, discussing human rights issues including Internet freedoms and the political crisis in Zimbabwe. Chinese officials were predicitably cool on imposing sanctions on Zimbabwe, favoring instead negotiations between President Robert Mugabe and the opposition.
Meanwhile, talks continued in Tokyo on Wednesday between Chinese officals and envoys of the Dalai Lama. The Tibetan spiritual leader expressed hope for progess, but the Communist party chief in Tibet again blamed the Dalai Lama and his supporters for the deadly rioting there in March. A commentator in Xinhua expressed the contention (hope?) that the West would lose interest in the Dalai Lama after the Olympics.
Olympics
Traditional Chinese medicines may contain banned substances, a potential source of trouble for China's Olympic athletes.
Local officials are stepping up efforts to combat an algae bloom that may impede Olympic competition, including sailing.
Some 33,000 people are mobilizing to combat a plague of locusts in Inner Mongolia, hoping to avert a disastrous migration to Beijing next month.
Politics
Could the city of Shenzen, site of China's first forays into capitalism, be a testing ground for democracy? Not quite, but The Washington Post reports that plans being drafted by local authorities there could provide the blueprint for future political liberalization.
A group of human rights lawyers were detained and placed under house arrest on Sunday to prevent them from meeting two U.S. congressmen in Beijing. The congressmen responded Tuesday by calling for President Bush to skip the Olympics. China's foreign ministry accused the two of "arrogance."
Tens of thousands marched peacefully for democracy in Hong Kong Tuesday, the 11th anniversary of the handover back to China.
Environment and Economy
A new report says that Beijing is not conserving enough water on the eve of the Olympics, exacerbating a crisis.
Chinese and Indian startups in the wind power industry may face an uphill battle, battling a steep learning curve, high stakes, and already established European competition.
Earthquake
China's earthquake response may have revealed some flaws in its military capability.
On Monday, officials unveiled a plan to finance earthquake reconstruction.
Security forces are cracking down on parents of earthquake victims, who are demanding an investigation into why so many schools collapsed in the May disaster.
Taiwan
As direct weekend flights between Taiwan and the mainland are set to start this week, Taiwan is lifting some restrictions on Chinese currency exchange.
Three defectors from mainland China are on a hunger strike demanding Taiwanese resident status.
This Week in China
Top Story

Is the world's most dynamic economy headed for the rocks? Chinese stocks have taken a pounding over the last six days on speculation that the central bank will raise interest rates to quell worsening inflation. But it gets worse, Newsweek reports.
Earthquake
China has declared a "decisive victory" over the "quake lake" in Sichuan province, and evacuees have begun returning.
The government is planning a massive reconstruction of the earthquake zone.
Some are asking if the quake could usher in social and political change.
Politics
The Dalai Lama has begun a five-day visit to Australia, but he won't be meeting PM Kevin Rudd.
Treasury Secretary Hank Paulson laid out his views of U.S.-China relations in a preview of next week's "strategic economic dialogue" meeting. Some quality analysis here from the New York Times.
China denied hacking the laptop of U.S. Commerce Secretary Carlos Gutierrez when he visited Beijing in December. Influential U.S. Congressman Frank Wolf also says his office has been hacked.
Time asks if Beijing is taking a harder line on Tibet.
Economy and Business
Chinese exports rose 28 percent in May, compared with the previous year.
Beijing is planning to boost its nuclear-power capacity to 60 gigawatts or more by 2020.
Hong Kong slaughtered its chickens after a bird flu scare.
China is using up its natural resources at twice the rate of replacement, according to a new report by WWF China.
Taiwan
Taiwan and China are resuming formal talks after 10 years, with a focus on travel and trade.
China Moment
More than 4,000 babies have been named "Olympic Games" in the past 15 years.
This Week in China
Earthquake

Tangjiashan Lake, created by the May 12 earthquake, is dangerously close to spilling over as 250,000 people have been evacuated downstream and 1.3 million remain at risk. An engineering base of operations next to the dam houses personnel racing to avert a catastrophic failure (video).
Police surrounded a protest against school-construction quality on Tuesday and dragged away parents and journalists.
Politics
The Beijing Olympic Organizing Committee posted rules for foreigners during their visits to the games (translated). Big no-nos include trafficking of state secrets, sleeping in public, displaying insulting slogans or banners at events, carrying guns, or burning the Chinese flag. (original Chinese)
Starting tomorrow, tourists will be able to see the eight giant pandas at the Beijing Zoo recently flown in from Chengdu. Meanwhile, China and Taiwan may enter emergency talks on their panda deal as political deadlock has the island’s promised pair approaching an age above which they'll be able to successfully adapt to a new environment.
Economy
The earthquake should have a minimal effect on the economy as only 1 percent of the population was affected and the area was mostly farmland. The quake did damage hydro plants, however, so power supplies may be tight this summer.
Fuel shortages are growing but raising China's artificially low prices could worsen inflation.
The manager of China's $200 billion sovereign wealth fund tried to quell the West's fears about politically motivated acquisitions, saying, "Our government has never been transparent for 5,000 years… Now we are told we need to be transparent and we are trying."
China is opening a pilot coal-to-liquid plant in Inner Mongolia that will turn coal into oil. If it takes off, Inner Mongolia will try and convert half of its coal output to liquid fuel by 2010.
In a possible sign of improved pharmaceutical-industry scrutiny, the government responded swiftly to the deaths of six hospital patients from possibly contaminated immunoglobulin in a Jiangxi province hospital by ordering all drugs from the same batch impounded for testing.
Taiwan
A group of representatives from over 30 Chinese travel companies will visit Taiwan later this month in preparation for opening up the Taiwan-mainland tourism market. The first group of tourists on weekend charter flights are slated to arrive July 4.
Upon returning from the mainland, KMT Chairman Wu Poh-hsiung told Taiwan's President Ma Ying-jeou that China was unlikely to fire any missiles at Taiwan, but Ma's defense minister remains wary.
Faced with an organ shortfall, Taipei is offering free memorial services and public citations of praise to city residents who donate their heart, liver, kidney, and pancreas and may extend the measure to include skin, bones, and corneas.
Analysis
Reuters columnist Wei Gu, in "China's fuel subsidy costs the world," argues that China's fuel prices, about 61 percent of those in the United States, need to get in touch with reality.
In "The Family Way," Josh Kurlantzick calls for a phasing out of the one-child policy.
This Week in China
Earthquake

An estimated 7,000 schoolrooms were destroyed in the Sichuan quake, prompting many Chinese to ask why other surrounding buildings are still standing. During construction of one devastated school, for instance, sand was allegedly substituted for concrete. Parents remain outraged, in some cases bringing local party bosses to their knees, begging for forgiveness. Reconstruction of the "tofu schools" and other earthquake retrofits and repairs could cost China $60 billion.
A 5.4 magnitude aftershock on Tuesday toppled 420,000 houses and injured 63 people in Qingchuan county in Sichuan province.
Police and soldiers rushed to control a "quake lake" created by the landslides. Authorities fear the lake that could burst and wreak havoc on populated areas downstream. So far, 160,000 people have been evacuated downriver and that number could rise to one million.
Xixi, the giant panda, escaped into the wild after the quake but has been recovered by staff at the Wolong research center. A second panda is still missing.
Politics
British PM Gordon Brown met with the Dalai Lama Friday, drawing "strong dissatisfaction and resolute opposition" from Beijing. The spiritual leader also expressed interest in attending the Olympics, which China brushed aside.
China will complete construction of its new Washington embassy, designed by renowned architect I.M. Pei's firm, in August. The 250,000 square-foot compound will be the largest embassy in the U.S. capital. The U.S. is also building a new 600,000 square-foot embassy in Beijing.
Economy
Shares of China Netcom and China Unicom soared Friday following the announcement of a merger between the two to compete with China Mobile. Analysts expect the introduction of 3G technology will bring big money into China's telecom sector.
A new law that takes effect Sunday will ban the production of ultra-thin plastic bags and forbid retailers from distributing bags for anything other than fresh produce and food.
Taiwan
KMT Chairman Wu Poh-hsiung arrived in mainland China Monday for a six day visit that will focus on expanding charter flights and tourism with Taiwan. Today, he held a live-televised meeting with President Hu Jintao. Wu incensed members of Taiwan's DPP opposition party when he referred to President Ma Ying-jeou as "Mr. Ma" without regard to his title as leader of a sovereign country.
There was a rush for the pumps and plenty of frustration (video) as Taiwan's government announced a price hike in gas and diesel would take effect five days ahead of schedule.
Analysis
AEI's Claude Barfield argues in "Taiwan's Time" for the New York Sun that it's time for the U.S. to enter a free trade agreement with Taiwan now that Ma and the KMT have come to power.
Edward Chen's piece for the Taipei Times, "Ma's peace talk just the beginning" examines Ma's inaugural speech and the future of U.S.-Taiwan relations.
Stephen Glain's article, "The Modern Silk Road," in Newsweek highlights the growing economic clout of Asia and the Middle East and draws a parallel to the old trade route.
China Moment
China Daily put up a reminder today to support the country with"patriotic cultural T-shirts," saying, "So why not show off your muscles and your love towards China this summer with a T-shirt?"
This Week in China

Earthquake
Last Monday's Sichuan earthquake was the worst natural disaster in
Rescue stories include one of western tourists being evacuated from a panda research center by heroic staff, and another of a Chinese couple trapped in rubble for 28 hours who were forced to take turns breathing, saying "It was more terrifying than facing the god of death."
Politics
The state is re-tightening the reins on the media after relatively open reporting on the disaster. As for criticism of officials and building practices, a
Private charity is on the rise in China to help the quake victims: “The public outpouring is so overwhelming that analysts are debating whether it will create political aftershocks and place pressure on China's authoritarian state to allow more space for civil society,” the International Herald Tribune reports.
Growing lore about Chinese Prime Minister Wen Jiabao's softspot for the common people includes an incident where he allegedly slammed the phone down on a general after commanding him to do whatever it takes to save quake victims. Technically he doesn't even command the military which is taken as evidence of a passion that is stirring more than a few to call him "Grandpa Wen."
In an "unprecedented step," U.S. aid to China included the first-ever disclosure of satellite imagery to China by the National Geospatial Intelligence Agency. The imagery of Chinese infrastructure will allow China to better assess the state of its reservoirs, roads, and bridges. Japan also released satellite imagery (translated) that shows the dramatic devastation from the quake.
Ma Ying-jeou took power as Taiwan's president on Tuesday, saying Taiwan and China "can use this rare historical opportunity. Let's open a new page of peace and prosperity." As a first step, China has invited Ma's KMT party chairman Wu Poh-hsiung for a six day visit to the mainland starting on Monday during which he will meet with Chinese President Hu Jintao.
The pandas from Wolong and
Economy
Chinese government agencies have been asked to cut spending by 5% this year to create a $10 billion earthquake reconstruction fund. Ways to cut back include a freeze on approval of new government buildings, strict control of new car purchases on the part of officials, and less spending on dinners, according to Prime Minister Wen.
Total losses from the earthquake to Chinese companies are estimated at $9.5 billion, about $4.3 billion of which is state-owned. The Agricultural Bank of
Quake reconstruction could lead to a shift toward investment and away from consumption. Analysts see some parallels in
Analysis
NPR looks more at the “unprecedented” free media reporting environment in
The Carnegie Endowment’s
Daniel Bell, a teacher of political theory at
This Week in China

Earthquake
The Chinese government has launched an immense rescue effort to help victims of the 7.9 magnitude earthquake that hit
Politics
Saturday was Chinese President Hu Jintao’s last day on a visit to
Three Chinese construction workers abducted in
The Australian Olympic Committee said Saturday its athletes can say whatever they want in interviews and on blogs during the Beijing Olympic Games. Olympic rules prohibit demonstrations on the part of athletes, but the AOC interprets freedom of speech as separate from this statute.
China will "guarantee as much as possible" that internet sites will not be blocked during this summer's Olympics, but access to some sites will still be prohibited according to Technology Minister Wan Gang. Wireless internet will be widely available to facilitate timely reporting by journalists. As for knock-off Olympic goods, China says while it's making a great effort to curb copyright infringement, it can't guarantee that no pirated paraphernalia will be sold.
John Kamm of the Duihua Foundation which advocates for Chinese political prisoners, has requested
Economy
Wan Feng, president of China Life Insurance, said the earthquake will be "a huge test for the whole Chinese insurance industry." Life insurance claims in the wake of the earthquake will outstrip those from the snowstorm this past winter, but the brunt of claims will still be for property damage.
Apple’s iPhone is coming to
Lou Jiwei, the head of China's $200 billion sovereign wealth fund, China Investment Corp, said, "The current international market turbulence has produced unprecedented investment opportunities." CIC has allotted $90 billion to overseas investment, but pledges not to cause further economic destabilization by exploiting the current financial turmoil.
Taiwan
Four Taiwanese facilities are competing to receive the set of pandas offered by China. The acceptance of the pandas, which were offered in 2005, was guaranteed by the election of pro-mainland engagement candidate Ma Ying-jeou. Some facilities have already spent millions getting ready for the cuddly pair, both of which weathered the earthquake just fine.
Analysis
In today’s Seven Questions, Art Lerner-Lam of the Earth Institute at Columbia University talks about natural disasters and commends China’s preparedness and response, stressing that local terrain is providing logistical challenges to rescue operations.
Carnegie Endowment’s
In The New Republic, Carnegie's Joshua Kurlantzick criticizes the Bush administration's China policy for its failure to stand up for human rights and looks ahead to the next administration.
This Week in China

Politics
Chinese President Hu Jintao is visiting
It’s still unclear what is causing the high number of hand, foot, and mouth disease cases in Anhui province. Almost 16,000 cases have been reported, including 28 fatalities likely linked to a coupling with the virus EV71. Government officials say that the high fatalities are not evidence of a new strain. Infections in
The Chinese State Food and Drug Administration, charged with investigating the contamination of the blood-thinner Heparin, has accused
Concerned about overspending on student subsidies, the Chinese government is limiting the growth of doctoral programs to less than two percent annually in favor of professional degree training programs.
Economy
The Hong Kong stock market is looking abroad for investment growth and hoping to attract sovereign wealth funds.
Forget poverty assistance programs, relocation is the best way to help drought-stricken farmers in Ningxia Hui Autonomous Region in northwestern
China’s household spending power will surpass that of Britain’s by 2017, putting it third in the world behind the U.S. and Japan according to a forecast released by Barclay’s and the Economist Intelligence Unit today. Full report (PDF).
Taiwan
Three Taiwanese government officials have resigned as investigators searched their homes and offices for clues in the case of the missing $30 million in “diplomatic aid” to Papau New
Analysis
The American Institute in
Jamil Anderlini of the Financial Times looks at the latest incarnation of
Adidas CEO Herbert Hainer sits down with Der Spiegel to talk about the role of his company’s gear in the torch relay saying, “I don’t have a guilty conscience,” and stressing the company’s commitment to sports, not politics. (Hat tip: The American's Duncan Currie.)
This week's China moment
It took forty workers 48 hours to complete the world's largest Chinese flag. The flag is roughly 200 x 300 feet (88.88 meters- note the lucky eights). The banner was so big, it needed a last-minute switch to a larger-class airplane as it left Beijing. It will follow the torch relay around the country and go on display in Beijing a day before the Olympic Games. (Hat tip: Passport reader Andrew Schorr)
This Week in China
Politics

The Olympic torch relay has returned to China, passing through Hong Kong today. Three Danish pro-Tibet activists were denied entry to Hong Kong ahead of the events. Earlier, protests during the Seoul leg of the relay turned violent, and South Korea plans to deport the Chinese demonstrators involved.
China announced its willingness Friday to talk with the Dalai Lama but condemned him on Monday for manipulating foreign opinion.
In the first round of sentencing from the Lhasa riots, a Chinese court found 30 people guilty of crimes including arson to disrupting public services.
A deadly virus, EV71, has broken out in Anhui province with over 900 cases and the deaths of 20 children. The outbreak began in March but wasn't reported until this past Sunday.
French supermarket chain Carrefour, in a bid to bolster its patriotic image, clad employees in new uniforms with the Chinese flag including hats bearing the Olympic rings and "Beijing 2008." The Beijing Organizing Committee for the Olympic Games promptly deemed the hats a copyright infringement.
A Chinese student threw a water bottle at a Tibetan monk during a lecture at the University of Southern California. Several other American universities have seen clashes between pro-Tibet and pro-China students.
A Guangzhou newspaper has uncovered a disturbing child-labor ring in Guangdong province. More than 100 children were rescued after reportedly being sold or kidnapped into labor and forced to work up to 300 hours per month.
Economy
China and India will likely sustain Asia through a global economic slowdown, according to Standard & Poor's.
U.S. regulators are questioning China's ability to control its products after at least 81 U.S. patients died from contaminated doses of heparin, a blood thinner. The contaminant was traced back to a Chinese supplier of an ingredient that gets processed into the final product by Baxter, a multinational company. The FDA suspects the act may have been intentional.
Officials were sacked and excessive speeding blamed for the worst train accident in a decade. The accident, which took place in
China may become a corn importer as government incentives are not pulling farmers away from other crops such as soybeans, green beans and red beans. The reason? High fertilizer costs.
Taiwan
Chinese President Hu Jintao and Taiwan's KMT leader Lien Chan met in Beijing Tuesday, though the contents of the meeting were not disclosed. Their fourth since 2005, the meeting has added significance now that Taiwan's President-elect Ma Ying-jeou will be taking office on May 20.
Analysis
William F. Schultz, former head of Amnesty International USA, argues that pressuring Beijing over the Olympics will take more finesse than human rights groups are currently employing.
British politician Charles Tannock asks why the West embraces Kosovo and Tibet but is ignoring Taiwan in its struggle for nationhood in a piece for the Taipei Times.
A New York Times editorial looks at the contaminated Heparin case and asserts that U.S. companies need to ensure the safety of their products.
China's energy outlook for the summer may be grim as demand outstrips supply causing more brownouts, according to Emma Graham-Harrison of Reuters. The energy shortfall will also produce an increase in oil demand, she predicts.
This week's China moment
A vice-mayor of Tianjin ordered the removal of a 2 million yuan ($286,000) sculpture at a new airport terminal days before its official opening because he didn't like the color. Gag orders were issued to the media but went unheeded as CCTV gave the story "unusually frank coverage," according to Reuters.
This Week in China

Politics
Next stop for the Olympic torch? Canberra, Australia. Protests are already underway as two people were arrested for trying to unfurl a banner on the Sydney Harbour bridge. People also beamed a laser message on the bridge saying "Don't Torch Tibet." Needless to say, security will be high for the relay leg tomorrow.
French supermarket chain Carrefour's chairman Jose Luis Duran told Xinhua his company would support the Olympics and that protesters have ulterior motives. He also denied supporting the Dalai Lama. The Chinese government praised the chain the same day as the interview.
The Tibet crackdown is still having some aftershocks, as a prominent Tibetan broadcaster/performer was detained.
The Financial Times is launching a Chinese-language publication ahead of the Olympic Games geared at China's growing stock of professionals. Playboy is also expected to be granted circulation for a month "to meet the demand of overseas visitors during the Olympics," according to Reuters.
Economy
In China's continued economic efforts in Africa, China Railway Group will embark on a $2.9 billion joint venture with Sinohydro Corp in a copper and cobalt mine in the Democratic Republic of Congo. The deal, which is awaiting the DRC government's approval, includes a provision to limit Chinese workers to 20 percent of the total in an effort to curb local resentment.
Nationalistic fervor is hitting the racks as new T-shirts come out with slogans like "Go China!" and "Tibet WAS, IS, and ALWAYS will be a party of China!" Chinese officials say Olympic ticket sales have not been affected by the torch relay protests.
Although China claims "great progress" on intellectual property enforcement, the EU announced it will ask China to step up efforts ahead of the Olympics. According to the OECD, the global fake goods market is around $200 billion a year or 2 percent of the world's trade, with much of it originating in China.
Taiwan
President-elect Ma Ying-jeou wants to implement tax incentives to lure investment to Taiwan, especially in technology. He also plans to make it a priority to remove the 40 percent cap on mainland investment designed to make Taiwanese multinationals more competitive (though HSBC analysts predict the move won't help since production prices in China are soaring). Also, Chinese banks and insurance firms will be allowed to set up offices in Taiwan as soon as late May.
The U.S. is requesting $170 million for a new American Institute in Taiwan compound (the unofficial embassy) that may include a Marine barracks.
Analysis
In a piece for the Financial Times, Coca-cola Chief Executive Neville Isdell talks about the company's role in politics relating to Darfur and the Olympics.
For more on the controversy surrounding China's presence in Africa, check out Serge Michel's "When China Met Africa" in the new issue of FP (subscribers only).
This Week in China
Politics

Chinese President Hu Jintao publicly commented on events in Tibet for the first time Saturday, citing the unity of the nation as the issue at heart between Beijing and the "Dalai clique." Meanwhile, the Dalai Lama's aids have engaged in some talks with Beijing.
The European Commission doesn't support Olympic boycotts, but has "legitimate worries" about human rights in
The Chinese government has ordered a halt to construction projects and even outdoor spray-painting in the weeks leading up to the Olympics in order to improve the Beijing air. Smoking will still be permitted in bars and restaurants, however, due to pressure from businesses over potential revenue losses.
A historic 20-minute encounter between the Chinese President Hu Jintao and Taiwan's Vice President-elect Frank Siew Saturday has
The Olympic torch relay continues to be a security concern as the Pakistan leg today was confined to a heavily guarded stadium with an invitation-only audience. India gears up for its segment today in New Delhi and has shortened the run from 6 to roughly 2 miles. The main spectators? The 15,000 policemen guarding the route. Some in the Australian-Chinese community have vowed to protect their portion of the run next week in Canberra by forming a "people's army" against pro-Tibet "scum."
Chinese netizens have started their own anti-CNN Web site. The site came under attack from hackers (translated) last week, and CNN Jack Cafferty dumped more fuel on the fire by calling the Chinese government a bunch of "goons" and "thugs." China is demanding an apology. Ironically, CNN ran an editorial the same day urging people not to demonize
Economy
The New York Stock Exchange may be the first foreign stock allowed to list on a Chinese market. Caijing magazine cites an anonymous official as saying NYSE is attractive for its "market value, performance, and compliance."
A series of lawsuits have placed mostly symbolic blame on Chinese companies for forgery. Gucci won a suit against Yaohan and Senda for trademark infringement over merchandise bearing the "GG" logo. Senda paid $26,000 USD in damages. Last week, Italian confectioner Ferrero also won a suit against Chinese firm Montresor for selling a copycat product and received about $79,000 USD in damages.
China Power Development International Ltd. plans to double power generation capacity by 2010. By the end of this year, it projects generation capacity of 10,000 MW or roughly five Hoover Dams.
Commentary
Brookings features an interview this week between Diane Rehm and a panel discussing the Olympics controversy. Brookings Senior Fellow Cheng Li says the Xinjiang Olympic terrorist plots are a real problem but are also inflected with government strategy to emphasize anti-terrorism. IOC member Dick Pound says an international torch relay is not a good idea. Whoops.
Kent Ewing with the Asia Times explains how Chinese nationalism is resisting a supposed onslaught of humiliation from the West, and the effect of the "wheelchair angel."
Matthew Forney of the International Herald Tribune talks about why the Chinese youth are so supportive of their government. George Vecsey weighs in on why we shouldn't boycott the Olympics, as all games have had their flaws.
This Week in China

Politics
The Olympic torch relay was disrupted by protests in London on Sunday and Paris on Tuesday. French officials were unhappy with the way the Chinese security detail handled the relay, and one athlete became upset when the torch was extinguished before he could hand it off: "Given what happened yesterday, the athletes are asking themselves one question: how will they be treated in Beijing?"
Protests are underway in San Francisco as the torch relay passes through today, and the local Chinese community is divided in political sentiment. Public security was bolstered as police officers' vacations were cancelled, and a high-profile Golden Gate Bridge protest Monday turned the structure into an independence banner. (Pictured above.)
Sentiment is turning sour in the United States as a Zogby poll yesterday revealed that 70 percent of American voters think it was wrong to choose China as this year's Olympic host (up from 39 percent last May). As far as boycotting the games, 31 percent of respondents were in favor.
The presidential candidates are weighing in on China. Hillary Clinton has been particularly strident and called for President George W. Bush to skip the opening ceremonies. Bush still plans to attend, though he won't see German Chancellor Angela Merkel or British Prime Minister Gordon Brown there. (French President Nicolas Sarkozy is still on the fence).
Chinese Foreign Ministry Spokeswoman Jiang Yu described (video) the Dalai Lama as "the head representative of the serf system which integrates religion with politics in old Tibet...the darkest slavery system in human history."
The communist party leader in Tibet said that order has been restored following violent protests, but warned there could be more trouble when the torch relay passes through next month.
On Thursday, U.S. Secretary of State Condoleezza Rice criticized China for sentencing activist Hu Jia to three and a half years in prison for criticizing the government online.
Economy
Bank card sales rose 58 percent last year to $428 billion. With 1.5 billion bank cards in China at the end of 2007, China Banking Regulatory Commission Vice Chairman Guo Ligen warned that IT systems need to be updated to accommodate the heavy traffic.
Hong Kong budget airline Oasis went bankrupt amid a 73 percent rise in fuel costs last year. It was the fourth budget airline worldwide to halt operations in less than two weeks.
Disney announced yesterday it will purchase Chinese gaming company Gamestar. It also plans to launch Disney-themed games in the highly successful Chinese online gaming industry with Shanda Interactive Entertainment. Intel also announced a $500 million investment fund geared toward Chinese technology start-ups.



