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Here's a lesson in cultural diplomacy.

Zheng Jie, a native of earthquake-ravaged Sichuan province in China, is the first Chinese tennis player to make a Grand Slam semifinal, and the most successful wild card competitor in Wimbledon's history. She's a towering figure in Chinese sports, and yet Western broadcasters can't even say her name properly. In fact, sometimes, they are inadvertently calling her a prostitute or a chicken.

I've been squirming on my couch for a few days listening to ESPN and NBC butcher the 24-year-old's name every 10 minutes. I don't expect your average American to get it right off the bat, but 2008 is the year of the Beijing Olympics, and the networks need to be on their game when it comes to China. Some Wimbledon commentators claim they've been to Beijing to prepare for the games. Yet even the Wimbledon court announcer said her name properly while the commentators -- who clearly need to attend remedial Chinese name pronunciation school -- stammered.

It would take an hour at most to grasp the pronunciation system, and then we could avoid reducing a language with thousands of years of history and more than a billion speakers to a bunch of garbled, quasi-French "j" sounds. Her name isn't Je je or Jeng jee. It's Jung ji-eh (with a hard "j" like "jump"). Jee or "ji" can mean "chicken," "prostitute," or even, ironically, "difficult to pronounce."

Zheng lost to Serena Williams today, meaning that the Williams sisters will go at it on Saturday in the final and I'll be spared -- for the time being -- hearing her name butchered. The Chinese star plans to donate much of her Wimbledon prize money to victims of the Sichuan earthquake, as she did with her French Open third-round proceeds. According to the Boston Herald, the rest of the money will go toward the Chinese Tennis Association.

Earthquake 

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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.

Earthquake

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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?"

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It seems that Americans are finally getting the message: Driving's a financial drag. For the first time in six years, U.S. consumers said they would drive less this past Memorial Day weekend. The U.S. Department of Transportation also reported that March showed the steepest decrease in driving since 1942, when the government first started keeping tabs.

Angry voices are even rising in Europe, where consumers have long paid relatively high prices to fill their tanks.

British truck drivers blocked a highway today and are marching to Downing Street to demand a $1.85 discount on diesel that has now hit $9.00 per gallon. The truckers complain that the higher the gas prices, the greater the government's profits off the taxes. (U.S. consumers pay a flat 18.4 cent federal tax per gallon, but Britain adds about 50 pence onto each liter plus a 17.5 percent VAT on top of the total cost.)

In France, fishing boats blocked ports last week to prevent oil shipments to refineries. French President Nicolas Sarkozy is proposing a tax cut on fuel, though he says the measure should be EU-wide.

All this talk of fuel tax completely misses the point -- only an increase in supply will make a difference in the long run. Brazil has the right idea, announcing it will invest $5 billion in deep water fields, ships, and rigs. That's the kind of government intervention that matters.

Wednesday, May 21, 2008	Thursday, May 22, 2008

The Xinhua news agency Web site is back to normal after a subtle change you may have missed if you don't check it every day. The shift comes on the heels of China's official three day mourning period to remember the victims of last week's earthquake. In the real world, karaoke bars were closed, HBO service was suspended, and newspapers used black ink on their front pages.

Online entertainment and gaming sites were also shut down, web advertisements were taken off news sites, and black and white lettering and logos signaled a time of remembrance. Media outlets were reportedly told to give priority to stories about national mourning.

AFP/AFP/Getty Images

Earthquake

Last Monday's Sichuan earthquake was the worst natural disaster in China in 30 years. An estimated 5 million people were left homeless from the quake and today marked the end of an official three day mourning period for those lost, now numbering above 40,000. Though reports are still coming in of some rescues, the end of the mourning period marks a shift of national priorities away from the rescue effort.

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 Shanghai newspaper editor said it’s still too early.

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 Chengdu appear to be fine, though two are still missing and some are still acting nervous. Eight pandas will make a trip to Beijing later this week to go on display at the Olympics.

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 China, the leading rural lender, expects an increase in $850 million of bad loans, and PetroChina, China’s largest oil company in terms of assets, placed damages at $255 million. The government has ordered price freezes in the disaster zone, but inflationary pressure is being felt in surrounding provinces.

Quake reconstruction could lead to a shift toward investment and away from consumption. Analysts see some parallels in China’s ambitious plans to rebuild and the Kobe earthquake in Japan which likely contributed to a reversal in the structural decline of investment in the 1990s.

Analysis

NPR looks more at the “unprecedented” free media reporting environment in China surrounding the earthquake coverage including the increased professionalism of journalists.

The Carnegie Endowment’s China program director, Douglas H. Paal, talks to BBC about the political implications of the earthquake. On the tension between addressing public outcry and avoiding political fallout, Paal says “finding a balance point is going to be a very tough challenge for [the Chinese leadership] on such a highly emotional issue.”

Daniel Bell, a teacher of political theory at Tsinghua University, describes his experiences in the classroom after the earthquake in an op-ed for the New York Times.

What are the world's disaster hotspots? Arthur Lerner-Lam, who we spoke with in last week's Seven Questions about global disasters, set out with a team from Columbia University and the World Bank to answer this in "Natural Disaster Hotspots: A Global Risk Analysis." They divided the world up into sub-national swathes of land and analyzed population and disaster data going back about thirty years for six disaster types: drought, flooding, cyclones, earthquakes, volcanoes, and landslides. For reasons of data accuracy and availability, the results are relative rather than absolute likelihoods that disasters will occur in various corners of the globe.

The study focuses on more significantly populated areas amounting to about half of the world's land area. It approaches loss as potential damage to that which is "valuable but vulnerable includ[ing] people, infrastructure, and environmentally important land uses." And what's more, based on data from a Brussels-based research center, the study hints that disaster frequency is increasing.

The following map shows mortality risk by disaster type. This isn't a comprehensive summary but rather a summary of the top at-risk areas. Those purple blips in central China sure have a lot more meaning in the aftermath of recent events.

www.ldeo.columbia.edu

This second map shows risk in terms of total economic loss based on disaster type.

www.ldeo.columbia.edu

And finally, the third map normalizes potential economic loss based on country GDP. Notice the migration of the top at-risk areas away from the more developed regions.

www.ldeo.columbia.edu

Rumors are flying in China about why officials couldn't predict the quake when apparent natural signs were there. Technically, seismologists the world over say they can't accurately predict location and timing of earthquakes, but some in China see it differently.

Eyewitnesses say they observed changes in water levels in the days leading up to the quake, and abnormal animal behavior just prior. Media reports ten days ahead of the quake suggest "several thousand cubic meters of water disappeared within an hour in Hubei [350 miles east of the epicenter], but the [seismological] bureau there dismissed it." Quake mispredictions aren't without precedent; in the 1970s in Tangshan, the seismologists dispatched to check out reports of mysteriously falling well water levels were killed by the very quake they wrote off, according to the AP.

A few days prior to this week's Sichuan quake, a torrent of toads overran Mianzhu city where thousands of people were later killed in the severe tremors. The local forestry bureau did a TV interview before the disaster claiming it was normal breeding behavior which has people particularly angry after the fact. (Video above.) In Wuhan, 600 miles from the epicenter, a newspaper reported zebras banging their heads against the door, elephants swinging their tusks wildly, and peacocks screeching just before the quake hit. The idea that animals can sense certain things before humans is not new, though it relies primarily on observational evidence. It was studied some in the 1970s by the U.S. Geological Survey to no avail. Similar reports of strange animal behavior preceded the 2004 tsunami.

Some articles are now talking about the mandate of heaven, on which Chinese imperial dynasties traditionally drew their legitimacy. Natural disasters or mass disorder typically signaled the eclipse of that dynasty's mandate and the time for a new one to step in. Obviously the modern age is a different story, but it's been a rough year for China. As Wang Yiyan, Chinese studies professor at University of Sydney puts it, "The government knows many Chinese will see the quake as a sign that things are out of balance."

PIERRE VERDY/AFP/Getty Images

The Bush administration is currently debating a plan to sell 66 advanced F-16 jets to Taiwan. The F-16 sale was a recurring theme in a panel discussion Monday at the Carnegie Endowment on cross-straits relations featuring Bonnie Glaser of CSIS, Michael Swaine of Carnegie, and Douglas H. Paal, Carnegie's new China program director.

The participants presented somewhat differing opinions on the diplomatically sensitive move. Swaine doesn't see a good time for U.S. approval of the sale in the near to medium term. Glaser, on the other hand, feels it will happen because postponing the sale until the next administration risks getting off on the wrong foot with China. She recommends the window after the Olympics but before Bush leaves office. Carnegie's Minxin Pei weighed in that if the sale goes forward, China would likely respond negatively to a request by Taiwan to withdraw some of the 1,000 balistic missiles aimed at it. But it's not as if jets and missiles are easily equated military capabilities in tit-for-tat negotiations, Glaser said.

Glaser also remarked how this underscores a differing approach to cross-straits negotiations where some, including the U.S., view defense aid to Taiwan as a necessary precursor to productive negotiations as it gives the island nation a more solid footing on which to withstand threats. Others, namely China, strongly respond to arms sales as obstacles to diplomacy which discourage cross-straits engagement.

The State Department wants to delay the F-16 issue until after the Olympics, but I agree that if the U.S. is going to do this, it would be much better to sweep it under the rug of the outgoing administration so the new administration can chalk it up to "change" or whatever they're into at that point.

MARK RALSTON/AFP/Getty Images

Earthquake

The Chinese government has launched an immense rescue effort to help victims of the 7.9 magnitude earthquake that hit Sichuan province on Monday.  The death toll has risen to near 15,000 with an estimated 26,000 still buried and an additional 14,000 missing. The tragedies unfolding have been met with condolences and offers of aid from countries around the world.

Politics

Saturday was Chinese President Hu Jintao’s last day on a visit to Japan, the first visit by a Chinese leader in a decade.  On Thursday, he remarked, “The revival of Asia cannot do without cooperation between China and Japan.” Before departing, he visited Buddhist temples and bowed before a statue of a Chinese Buddhist monk, reportedly to ease an image of hostility to religion on the part of the atheistic Chinese Communist Party.  He also managed to squeeze in some ping pong diplomacy.

Three Chinese construction workers abducted in Nigeria were released unharmed on Saturday.  The employees of China Civil Engineering Construction Corp appear to have been wrapped up in a plot on the part of local staff to demand higher wages and better working conditions though it is still under investigation.

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 Beijing release the remaining prisoners associated with the 1989 Tiananmen protests ahead of schedule coinciding with the Olympics as a goodwill gesture and a symbol of moving past the incident.

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 India, Australia, Singapore, and the Philippines later this year, but no comment so far on whether when it’s China and Japan’s turn.

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 Minxin Pei discusses the survival and evolution of the Chinese Communist Party and looks at how they plan to exercise control in an ever-changing world in an article for the American Interest.

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.

The full extent extent of the damage caused by the 7.8 magnitude earthquake that hit China's Sichuan Province on Monday afternoon is just starting to become clear. It is estimated that about 9,000 people were killed. The quake was felt in Beijing and Shanghai, and in places as far reaching as Taipei, Hanoi and Bangkok.

In order to reassure people and to squelch false rumors, the Chinese government is using SMS text messaging (translated) to mobile phones as well as internet postings to inform people that the areas where they live are not in the seismic zone. Over a million such messages were sent in nearby Guangxi Zhuang Autonomous Region and Guizhou Province.

The government plans to use text messaging not only for emergencies, but for various situations relating to the public interest. The plan is part of the government's new openness in information regulations which it says will promote "openness as principle, being closed off as the exception" in an effort to provide timely and accurate information to the public.

The hand of the government doesn't seem so far away when it's reaching you through a device clutched in yours.

Mario Tama/Getty Images

The U.S. needs the UN according to a new report by Alistair Millar and Eric Rosand, of the Center on Global Counterterrorism Cooperation titled, Building Global Alliances in the Fight Against Terrorism. Both authors spoke on Friday afternoon at the New America Foundation along with Steve Coll, author of Ghost Wars and The Bin Ladens. The speakers point out that if we can stress the common security interests of all nations, the UN will once again function as an effective international body. Fighting terrorism is one issue that requires nothing less than the whole world's attention, but it is also a divisive issue. The UN has so far failed to even agree on a definition of terrorism, though Eric Rosand had a good working one: "Politically motivated violence against civilians."

The main argument is that the United States is missing an opportunity to work with the United Nations in its global fight against terrorism. The speakers were careful to stress they are not suggesting the fight be handed over to the UN. Instead, the U.S. should use the platform as underlying support for its existing efforts while maintaining sovereignty over U.S. interests. They believe that many bi-lateral negotiations are perceived as American sledgehammering and may be better received through the lens of third party. Policy recommendations include the appointment of a counterterrorism czar in the White House (non-military in nature), and the formation of a global counterterrorism body.

While I agree that the U.S. cannot "go it alone" in the war on terror, the bottom line is that unilateralism is a direct result of international lack of will. The United States has gone it alone in part because of the inaction of the UN and its member states. Hezbollah is a prime example of this inaction. Under UN resolutions enacted in 2004 and 2006, Lebanese militias were to be disarmed. In April of this year, the security council adopted a presidential statement reiterating this. Instead, over the past few days Hezbollah has taken over half of Beirut.

While I like the idea of a future with international cooperation and committment to fighting terrorism, I think we need to first make sure the international community is interested in bearing the costs to achieve results. And state-sponsored terror is going to be a big obstacle in this process.

ANWAR AMRO/AFP/Getty Images

In the second day of an escalating standoff between the Lebanese government and Hezbollah, there are reports of at least one death and five injuries and the possibility of civil war seems less far-fetched.

The unrest first broke out after the government tried to cut into Hezbollah's operations by banning a Hezbollah-run telecommunications network in southern Lebanon. The network was likely Hezbollah's primary means of communication during its 2006 war with Israel. 

Then, reports that Hezbollah had installed cameras near the Beirut airport to monitor the movements of anti-Syria politicians -- possibly to assassinate them -- led the government to dismiss the airport's security chief. Hezbollah leader Hassan Nasrallah vowed to keep the employee in his post and to strike back at these affronts, irking Lebanon's top Sunni leader Sheikh Mohammed Rashid Qabbani:

We used to think that Hezbollah is concerned with fighting the Israeli occupation, and all of a sudden it is turning to be a militant force to occupy Beirut, and this is why we call upon the Arab and Islamic nations to help us and stop these harmful aggressions in Lebanon."

Meanwhile, Ya Libnan makes an interesting point that Nasrallah's campaign may achieve the very thing Israeli army Chief of Staff Lt. General Dan Halutz threatened at the start of the Israel-Hezbollah war in 2006: to send the country back twenty years. Hezbollah supporters' tent camps have paralyzed parts of downtown Beirut and now they are springing up along the road to the airport which will be a vital source of tourism revenue this summer. It's shaping up to be yet another example of Hezbollah's "resistance" hurting the very people it claims to fight for.

Shizuo Kambayashi/Pool/Getty Images

Politics

Chinese President Hu Jintao is visiting Japan for a diplomatic summit on Sino-Japanese relations.  Some are optimistic that Hu and Japanese Prime Minister Yasuo Fukuda can settle claims on undersea gas resources in the East China Sea by summer. The two leaders will also engage in some literal ping-pong diplomacy.

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 Singapore and Vietnam are also much higher than normal this year. The Chinese government plans to step up public hygiene efforts to combat the spread of infectious disease this summer.

The Chinese State Food and Drug Administration, charged with investigating the contamination of the blood-thinner Heparin, has accused U.S. drug company Baxter of being unhelpful in the investigation. It also maintains that the link between the drug and the deaths in the United States has not yet been proven since other countries using similar substances reported no such fatal allergic reactions.

China acknowledged that changes in visa restrictions are taking place ahead of this summer’s Olympic Games. However, the Foreign Ministry insists that the changes are “according to the practice of the past Olympics and usual international practice.” Fewer (if any) multiple entry visas will be issued and some travelers may need letters of invitation, and proof of hotel accommodations and return air tickets. Previously, the ministry had denied that any changes were planned.

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. China is the world’s leader in turning out phD's with an estimated 60,000 in 2007, yet over half of graduating candidates end up in government rather than academia.

Economy

The Hong Kong stock market is looking abroad for investment growth and hoping to attract sovereign wealth funds. Government intervention in the Shanghai market is hurting its international reputation.

Forget poverty assistance programs, relocation is the best way to help drought-stricken farmers in Ningxia Hui Autonomous Region in northwestern China, said a local official. Around 206,000 people will be relocated over the next five years to irrigated and suburban areas along the Yellow River that can better support them at a cost of $406 million.   

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 Guinea. There is a middleman on the run according to the International Herald Tribune.  

Analysis

The American Institute in Taiwan held a video conference panel discussion on Tuesday about the U.S.-Taiwan relationship in light of coming political changes in both countries. Speakers included Robert G. Sutter of Georgetown University, Alan D. Romberg of the Stimson Center, and Bonnie Glaser of CSIS. The Taipei Times reports on the event saying that experts don’t expect big changes.

Jamil Anderlini of the Financial Times looks at the latest incarnation of China’s fenqing, or hyper-nationalistic “angry youth.”

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)

CIA Director Michael Hayden gave a smart talk earlier this week about where the world is headed and what role the United States will play in it (video). With the world population set to grow about 34 percent by mid-century, the agency will be especially attentive to demographic transitions in countries that can't sustain higher populations, he said. But Hayden also had a message for China:

China is a competitor—certainly in the economic realm, and, increasingly, on the geopolitical stage. But China is not an inevitable enemy. There are good policy choices available to both Washington and Beijing that can keep us on the largely peaceful, constructive path we've been on for almost 40 years now.

On a very hopeful note, Hayden also said Americans have to start putting themselves in others' shoes:

[A] greater number of actors will have influence on the world stage in this century. And that presents one overriding challenge to those of us responsible for our nation's security: We must do a better job of understanding cultures, histories, religions, and traditions that are not our own. We must broaden our understanding, and guard against viewing the world exclusively through an American prism. We must not rely exclusively on an American—or even more broadly, Western—lens in assessing foreign challenges and helping policymakers decide how to respond.

Politics

AFP/Getty Images

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 Shandong province, killed 70 and left hundreds injured.

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.

Kevin Frayer-Pool/Getty Images

Professor Bernard Sabella of Bethlehem University came to Georgetown Wednesday to speak about the decline of the Palestinian Christian population in the Holy Land. It's a group whose unique role as bridge-builders, particularly between the West and the Palestinian Muslims, is increasingly at risk.

Palestinian Christians number somewhere near 50,000, making up less than 2 percent of the population. In Jerusalem alone, the population has gone from 30,000 in 1945 to at most 8,000 today.

As a sociologist, Sabella conducts surveys to discover why Palestinian Christians are emigrating. His results suggest economic and political rather than religious reasons, though 8 percent of respondents say religious fanaticism could be a contributing factor to seeking a life elsewhere. Jews and Muslims are leaving for the same reasons.

Sabella, who has served in the Palestinian legislature, also weighed in on the political situation. The way he sees it, the peace process has reached a critical juncture. If it doesn't succeed by the end of the year, he expects escalating confrontation on Palestinian streets and the election of hardliner Benjamin Netanyahu as Israeli prime minister.

The implications of failure, he says, are serious:

If the political and economic situation doesn't improve, then we are going to lose our youngest and brightest brains."

MIKE CLARKE/AFP/Getty Images

Almost any American who has taken Chinese in the past decade should know the phrase "Meiguo ren hen xihuan da guansi" (Americans really like to sue people). It is usually presented as a point of difference between our two cultures, and McDonald's coffee inevitably comes up.

Well, the tables sure are turning. Reuters reports that a primary schoolteacher and a beautician have filed suit against CNN for the allegedly slanderous comments against the Chinese people made by Jack Cafferty. (The crotchety CNN anchor called Chinese products "junk" and the country's leaders "goons.")

The suit asks for $1.3 billion dollars -- $1 per person in China -- for "violat[ing]the dignity and reputation of the Chinese people." Chinese Foreign Ministry Spokeswoman Jiang Yu called the suit "spontaneous action" on the part of the Chinese people.

It certainly brings new meaning to the title of Cafferty's book, It's Getting Ugly Out There.

ADEK BERRY/AFP/Getty Images

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

China will continue rice exports, which may help alleviate the global food crisis. China produces almost a third of the world's rice.

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.

Taiwan is investing almost $1 billion in infrastructure to prepare for the influx of mainland tourists that Ma's reforms are expected to bring. According to Reuters, 50 million mainland Chinese have expressed interest in visiting the island.

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.

U.S. policy in the Pacific is weakening, according to Michael Auslin of the American Enterprise Institute. And Philip Levy has a new working paper that discusses the potential for democracy in China in the wake of changes in the economy, technology, and the rule of law.

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).