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Title: An introduction to China . . . 10 minutes and you know china

An introduction to China . . . 10 minutes and
you know china http//
Graphic and video http//
WSJ_ChinaInTransition_RightAboveVideo Decoder
how China chooses its leaders http//
BBC Chinas leaders what you need to know
http// BB
C role of party http//
Candidate for China's new premier finalized
Xinhua, March 14, 2013
Slide show to go along with articl e on consumers
Air Pollution in China Attribution Jianping Fan,
Guangzhou, China
17 JANUARY 2013 Smog in Beijing Patrick
Chappatte, The International Herald Tribune
14 NOVEMBER 2012 China, which way Attribution
Paresh Nath, The Khaleej Times, UAE
In pictures http//
comm party home of richest http//
(No Transcript)
The Princelings An important but informal
politically influential group in China are the
so-called princelings. This group consists of
relatives (most frequently, the sons and
daughters) of senior Chinese government officials
who use their family relationship to obtain
access to privilege, positions of power, and
wealthoften by circumventing the official
channels and procedures. For many people in
China, the princelings represent that type of
class privilege that the Cultural Revolution
was supposed to eradicate. Because their access
to power and privilege is seen not necessarily to
be based on merit, some view the princelings at
least as a minor source of corruption and at
worst as a serious threat to the Partys
legitimacy with the public. The princelings
have chosen different avenues to power in China.
Some have used their access to better education
and job opportunities to become important figures
within the Party or the government. Others chose
to focus their energies on obtaining economic
power by establishing private companies (often by
securing special loans from state-run banks) or
being appointed the leading officials of
important state-run enterprises
Although some of the princelings have used
their preferential access to power for social
causes, some have been accused of serious
corruption. Deng Pu-fang, son of Deng Xiao-ping
and himself a paraplegic,30 is widely known in
China as a leading advocate for the rights of the
handicapped. Hu Hai-fengson of President Hu
Jin-tao and party secretary for Tsinghua
Holdings, a multibillion dollar state-owned
conglomerate, was accused of bribery by the
Namibian government during the summer of
2009. See you tube on princilings and
-dare-my-dad-is-li-gang/ http//
11/01/31/world/asia/31china.html http//www.youtub My father is Li Gang
has become a bitter inside joke, a catchphrase
for shirking any responsibility washing the
dishes, being faithful to a girlfriend with
Update Generals BMW-Driving Son Gets a Year
The son of a Chinese army general well-known for
his singing will be detained for a year, state
media reported late Thursday, following an
alleged assault that renewed public criticism of
the children of the nations powerful elite. The
son of Li Shuangjiang, a 72-year-old senior
official in the Peoples Liberation Army known
for singing patriotic songs at public events,
will be detained by police in a correctional
facility for one year, according to the state-run
Xinhua news agency. Police said Gen. Lis
15-year-old son last week assaulted a Beijing
couple following a traffic dispute then warned
onlookers not to call the authorities, according
to state-run media.
Sovereignty, Authority, and Power
China is a _____Party-State
Apex Standing Committee p______/ National Party
Apex Standing Committee of National Peoples
p_______ hierarchies All govt exec. , leg and
adm. agencies are matched by a corresponding
party organ.
Parallel Hierarchies for each institution in the
government, a parallel one exists in the party
and military party members hold government
positions (eg Hu is Party Secretary, President
and head of Military)
Now Hu
Now Hu
Good youtube explanation http//
October 2007 Party delegates -- 2,200 in all --
attended the opening ceremony of the week-long
event, which is held once every five yearsso
which one is this?
October 15, 2007 Communist Party Congress Opens
in China
BEIJING, Oct. 15 Delivering the opening address
at the ruling Communist Partys 17th National
Congress today, President Hu Jintao promised to
address social fissures, a degraded environment
and rampant corruption during his second term as
Chinas top leader, but he all but ruled out more
than cosmetic political reform.   Mr. Hu spoke
extensively about his _______ view of
development, a set of lofty, vague principles
supporting h__________economic, social and
political development. The congress will enshrine
the phrase scientific view of development into
the partys constitution alongside the political
slogans of Mao, D________Xiaoping, and
J________Zemin, elevating Mr. Hu into the
pantheon of leaders as he begins the second and
final term as party general secretary, head of
state and military chief.
Inside the hall, last-minute preparations for the
congress included pouring tea for the officials
The former Chinese Communist Party Chairman Hua
Guofeng, top left, slept during the lengthy
The N _________ C consists of about 3,000
delegates. Delegates are elected for _____-year
terms via a multi-tiered representative electoral
system. Delegates are elected by the provincial
Peoples 's assemblies, who in turn are elected by
lower level assemblies, and so on through a
series of tiers to the local people's assemblies
which are directly elected by the electorate.
For these 8 parties see http//
In contrast with the NPC which has become more
assertive since the 1990s, the NPC has shown no
signs of becoming a deliberative assembly with
independent power
Levels of Government SupRAnational?
The World Trade Organization (WTO) is an
international body whose purpose is to promote
_____ trade by persuading countries to abolish
import t_________ and other barriers. As such, it
has become closely associated with
globalisation. The WTO is the only international
agency overseeing the rules of international
trade. It polices free trade agreements, settles
trade disputes between governments and organises
trade negotiations. WTO decisions are absolute
and every member must abide by its rulings. So,
when the US and the European Union are in dispute
over bananas or beef, it is the WTO which acts as
judge and jury. WTO members are empowered by the
organisation to enforce its decisions by imposing
trade sanctions against countries that have
breached the rules. Membership of the WTO now
stands at 149 countries. China formally joined
the body in December 2001 after a 15-year battle.
Russia wants admission, but must first convince
the EU and US that it has reformed business
practices. (noteprovisional permission to get in
has been granted)  news flash Russia is
in   http//
18 October 2012 Last updated at 2200 ET China
tariffs on US steel WTO rejects Beijing's appeal
The World Trade Organisation (WTO) has upheld its
decision that China's tariffs on imports of
certain US steel products were illegal
Beijing had imposed duties on a particular kind
of US steel, alleging that its makers were being
given subsidies by the US government. The WTO
ruled against the tariffs in June, a decision it
upheld saying that China had failed to prove its
charges. The case is the latest in a series of
trade conflicts between the countries. "Today we
are again plainly stating that we will continue
to take every step necessary to ensure that China
plays by the rules and does not unfairly restrict
exports of US products," US trade representative
Ron Kirk said. 'Beating China' Disagreements
between China and the US have been growing in
recent times and the two have sparred over issues
ranging from China's currency policies to
allegations of state subsidies given to Chinese
firms. The US has upped its ante against Beijing
recently, not least because of the upcoming
presidential elections.The impact of China's
growing economic might on the US economy, and how
the US should respond to it, has become a key
issue in the elections.
W.T.O. Rules Against Chinas Limits on
Imports Pirated DVDs, sold openly at a market in
northeast China, cost less than 1, which is
steep competition for legitimate discs.
August 13, 2009
W.T.O. Rules Against Chinas Limits on Imports
HONG KONG The World Trade Organization gave the
United States a victory on Wednesday in its trade
battle with China, ruling that Beijing had
violated international rules by limiting imports
of books, songs and movies. The W.T.O. panel
decision in Geneva buttresses growing complaints
from the United States and Europe that China is
becoming increasingly nationalistic in its trade
policies. It also offers some hope that China
will remove its restrictions on media and reduce
rampant piracy of intellectual property, though
the country can appeal.
Levels of Government from the Economist
Decentralisation of power is substantial BUT .
. . .
Given China's geographical sizethe People's
Republic of China is almost as big as the USand
the extent of some of its provinces, local
authorities have historically enjoyed a high
degree of devolved power. Sometimes this has led
to chaos, notably during the Cultural Revolution
that took place during the 1960s and 1970s.
However, more often experiments at the local
level have been able to function as pilot
projects agricultural schemes in Sichuan, for
example, paved the way for the national reform
programme of the early 1980s. Since then, the
devolution of control has continued. Regional
governments have become major stakeholders in
many local enterprises (TVEs) and have sought to
maximize employment, output and revenue-raising
opportunities in areas under their jurisdiction,
sometimes acting counter to central government
policy. Some observers argue that devolution is
irreversible and that the government will
eventually be reorganised along federal lines.
However, the central government is far from
powerless and can intervene to enforce compliance
with its main policies. The promotion prospects
of local officials depend on their ability to
meet targets based on the government's policy
guidelines. Moreover, the central authorities can
still exercise considerable influence through
their ability to appoint and remove leading local
officials, and provincial governors are
frequently reshuffled to prevent them from "going
Number of TVEs (millions)
Gross output of TVEs

Contribution of TVEs to rural income per capita
Sources China Statistical Yearbook, 1997, 1998.
The Yearbook of Chinese ________and Village
Enterprises, 1995, 1996 1997, 1998. China
Economic Yearbook, 1997, 1998.
Institutions the military
Thousands of soldiers and rows of tanks
commemorated 60 years of Communist Party rule
during National Day celebrations in Beijing.
Female officers and soldiers of the People's
Liberation Army marched during the military parade
Mao Political power grows out of the b
________ of a ______. Our party commands the gun
and the gun must never be allowed to command the
party.. Link b/w Military and politics
Officers and men swear allegiance to ______ and
state. PLA officers are also ____ members a
separate Party machine inside the military makes
sure rank and file stay in line with Party
thinking Gen Sec is _____________ in
Changing of the Guard Close Army Ties of Chinas
New Leader Could Test the U.S. March 8, 2013
In the last four months, China has forged an
aggressive, more nationalistic posture in Asia
that may set the tone for Mr. Xis expected
decade-long tenure, analysts and diplomats say,
pushing against American allies, particularly
Japan, for what China considers its territorial
imperatives. The son of a revolutionary
general, Mr. Xi, 59, boasts far closer ties to
Chinas fast-growing military than the departing
leader, Hu Jintao, had when he took office. As
Mr. Xi rose through the ranks of the Communist
Party, he made the most of parallel posts in the
Peoples Liberation Army, deeply familiarizing
himself with the inner workings of the armed
forces.    Even if Mr. Xi does not immediately
become head of the crucial Central Military
Commission as well as party leader, he will
almost certainly do so within two years, giving
him at least eight years as the direct overseer
of the military. This combination of political
power as head of the Communist Party and good
relations with a more robust military could make
Mr. Xi a formidable leader for Washington to
contend with, analysts and diplomats in China and
the United States say
Politics           Xi Jinping Elected Chinese
President, Military Chief
Politics           Xi Jinping Elected Chinese
President, Military Chief
Politics Xi Jinping Elected Chinese President,
Military Chief
BEIJING, March 14 2013 (RIA Novosti) - General
Secretary of the Central Committee of the
Communist Party of China Xi Jinping was elected
Chinese president Thursday morning at the session
of the 12th National People's Congress. Xi, who
replaced Hu Jintao in this post, was also elected
the chairman of the Central Military Commission
of China
China and Japan Could Asia really go to war over
these? The bickering over islands is a serious
threat to the regions peace and prosperity
The Economist September 2012
The anniversary party's overarching theme echoed
the words Mao spoke after forcing the
Nationalists to surrender Beijing in 1949. "Ours
will no longer be a nation subject to insult and
humiliation," Mao said. "We have stood up."
People's Liberation Army naval officers marched
past Tiananmen Square.
People's Liberation Army soldiers marched down
Changan Avenue prior to the military parade
China's leaders and spectators waited at
Tiananmen Gate before the start of the parade.
The gate, known as the Gate of Heavenly Peace, is
where Mao declared the Communist Party's victory
in 1949.
Market Reform in China Creating a Socialist
Market Economy
_______cat, White Cat, it doesnt matter what
color the cat is, as long as the Cat
to get rich is glorious \
"poverty is not Socialism"
Socialism with Chinese Characteristics"
ENGELS never flew on an aeroplane Stalin never
wore Dacron. Dengs words meant Maoist dogma
was out and pragmatism was in.
Architect _________Xiaoping
Time early 19______s
  • Characteristics
  • Perestroika without_________
  • "Crossing the river by groping for stones"
  • Strong state model continues in planning and

How Two Pillars
One Decentralize the economy by
(A) Shifting authority for decision making from
central bureaucrats to individual families (first
through the __________responsibility system), 
factory managers, local governments (T__ ___s)
and private entrepreneurs
(B) recognizing diverse forms of _________rights
  • in 2001 Jiang invited so-called "red _______s" -
    private entrepreneurs and high tech barons - to
    join the Party
  • March 2004, NPC changed constitution so that it
    says Citizens
  • Lawful p_________ _________is inviolable and
    that the state will protect private property and
    give compensation when it is confiscated
  • March 2007 a law was passed that for the first
    time enshrines private property rights

(C) Most prices set by s________ and d__________,
not administrative decree
(D)_________ of law So far, the main change is a
gradual regularization of commercial law
Note that this is limited Privatization diminish
(NOT eliminate) state owned factories
TWO Opening China to the outside world by . . .
  • Increasing trade with a focus on ex_______ lead
  • (B) encouraging foreign investment (e.g create
    Special ___________Zones (SEZs))

(No Transcript)
SEZ and One Country . . .. . _______ Systems
(No Transcript)
Jiang Zemins ________Represents
(1) the most advanced forces of production Read
allow entrepreneurs and professionals to become
Party members
(2) the most advanced forces of culture
(3) the fundamental interests of the broadest
number of people (including c___________s GULP!)
comm party home of richest http//
October, 2006 The annual meeting of the ruling
partys Central Committee formally adopted
President Hu Jintaos proposal to build a
harmonious socialist society, a move some
analysts said was one of most decisive shifts in
the partys thinking since Deng Xiaoping
accelerated the push for high growth rates in the
early 1990s. The leadership declared that a
range of social concerns, including the surging
wealth gap, corruption, pollution and access to
education and medical care, must be placed on a
par with economic growth in party theory and
government policy. . . . The catch phrase covers
a range of policies intended to restore a balance
between the countrys thriving market economy and
its neglected socialist ideology, primarily by
paying greater attention to peasants and migrant
workers who have benefited much less than the
white-collar elite in Chinas long economic boom.

Hus ______________s Society
RESULTS Well, uhh did you get this one yet?
Results Poverty rate overall has
But even as officials trot out a litany of
achievements they attribute to the countrys
_____________and opening policy200m fewer
citizens living in poverty, a 6 share of global
GDP compared with 1.8 in 1978, a nearly 70
increase in grain productionthe worlds
financial crisis weighs heavily on their minds,
and their leaders are struggling with unfinished
Results The Gap between the _______ and poor

A man begs in Shanghai as wealthier residents
pass by. Today, some experts say, success has
become a secular religion, reinforced by official
messages of opportunity
Living the good life in China Angelina Lei, 5,
begins training early. NYTimes
BBC . . .. a Chinese idiom which referred to
the now abolished system of guaranteed lifetime
employment. After the Communists came to power,
all workers and farmers were put under state
control. Their work units controlled every
aspect of daily life, including the allocation of
housing, food and clothing. They also decided who
could marry and when, and who was allowed to have
children. In return, work units would look after
their workers for life. But China's transition
from a centrally planned economy to a market
economy has smashed the old guarantees. Millions
of workers have been laid off as state-run firms
have been restructured or shut down. This has
sparked angry protests from their workers, who
complain they have been left without the welfare
Jobs for life are a thing of the past
Economist October 2007 Missing the barefoot
Results growing rural/_________ income gap and
r________ gap
Results . . They now have a ________ marketin a
communist country . . Huh? Whos next Laos??? ?
The challenges are closely intertwined. Like Mr.
Greenspan nearly a decade ago, Zhou Xiaochuan,
the current governor of the Peoples Bank of
China, faces the knotty question of what to do
about a speculative mania that has drawn millions
of people with limited investing experience into
betting their savings on the stock market. May 25
Results growth in ___________ products
A couple buying decorations in Beijing for the
Chinese New Year 2006. Economists say consumer
spending is becoming more important to growth
Tho lets not forget China has undergone
__________ reform, not ________ reform Why you
could say it has experienced p_______________ but
not g__________
Recession Elsewhere, but Its Booming in China
The exhibition floor of the Guangzhou
International Auto Show in China. After decades
of gorging on consumption, Americans are saving.
And the Chinese, who economists thought were
addicted to saving, are spending more
Results F___________ D_____________ ___________
Figure 3. Inward FDI in China (US billion),
Results China is accepted into the__________
__________ ___________
Results Legitimacy issues so party tries . . .
One China Policy
Village elections
Harmonious Society
Results _______imbalance for US

(No Transcript)
China and U.S. Debt The largest portion of U.S.
debt, 68 cents for every dollar or about 10
trillion, is owned by individual investors,
corporations, state and local governments and,
yes, even foreign governments such as China that
hold Treasury bills, notes and bonds.
Foreign governments hold about 46 percent of all
U.S. debt held by the public, more than 4.5
trillion. The largest foreign holder of U.S. debt
is China, which owns more about 1.2 trillion in
bills, notes and bonds, according to the
Treasury. In total, China owns about 8 percent
of publicly held U.S. debt. Of all the holders of
U.S. debt China is the third-largest, behind only
the Social Security Trust Fund's holdings of
nearly 3 trillion and the Federal Reserve's
nearly 2 trillion holdings in Treasury
investments, purchased as part of its
quantitative easing program to boost the economy.
Chinas trade surpluses and extensive
intervention in currency markets have led it to
amass 2.27 trillion in reserves, mainly in
United States Treasuries, mortgage-backed
securities and other dollar-denominated
investments, helping to keep interest rates low
and finance Americans borrowing. Chinese
parsimony enabled American profligacy.
China overtakes US as world's biggest CO2 emitter
Cyclists pass a factory in Yutian in China's
north-west Hebei province. Photograph Peter
Parks/AFP, Tuesday 19 June 2007
An industrial park built in Wuhai, in Inner
Mongolia, along the Yellow River. In 1998, the
city had only 4 factories now there are more
than 400. But the rapid industrialization has
created a pollution nightmare for Wuhai, and with
more development planned for the area, the demand
for water is expected to skyrocket
Beijings Olympic Quest Turn Smoggy Sky Blue
Beijing residents in Tiananmen Square, used to
pea-soup smog, ignored a citywide stay-indoors
warning on Thursday.
BEIJING Every day, monitoring stations across
the city measure air pollution to determine if
the skies above this national capital can
officially be designated blue. It is not an act
of whimsy with Beijing preparing to play host to
the 2008 Olympic Games, the official Blue Sky
ratings are the citys own measuring stick for
how well it is cleaning up its polluted
air. Thursday did not bring good news. The gray,
acrid skies rated an eye-reddening 421 on a scale
of 500, with 500 being the worst. Friday rated
500. Both days far exceeded pollution levels
deemed safe by the World Health Organization. In
Beijing, officials warned residents to stay
indoors until Saturday, but residents here are
accustomed to breathing foul air. One man flew a
kite in Tiananmen Square.
As China Roars, Pollution Reaches Deadly Extremes
Chinas industrial growth depends on coal,
plentiful but polluting, from mines like this one
in Shenmu, Shaanxi Province, behind a village
Perpetual Haze During the three decades since
Deng set China on a course toward market-style
growth, rapid industrialization and urbanization
have lifted hundreds of millions of Chinese out
of poverty and made the country the worlds
largest producer of consumer goods. But there is
little question that growth came at the expense
of the countrys air, land and water, much of it
already degraded by decades of Stalinist economic
planning that emphasized the development of heavy
industries in urban areas. For air quality, a
major culprit is coal, on which China relies for
about two-thirds of its energy needs. It has
abundant supplies of coal and already burns more
of it than the United States, Europe and Japan
combined. But even many of its newest coal-fired
power plants and industrial furnaces operate
inefficiently and use pollution controls
considered inadequate in the West. Expanding car
ownership, heavy traffic and low-grade gasoline
have made autos the leading source of air
pollution in major Chinese cities. Only 1 percent
of Chinas urban population of 560 million now
breathes air considered safe by the European
Union, according to a World Bank study of Chinese
pollution published this year. One major
pollutant contributing to Chinas bad air is
particulate matter, which includes concentrations
of fine dust, soot and aerosol particles less
than 10 microns in diameter (known as PM 10).
(No Transcript)
Results McDonald's
A busy upscale shopping district in downtown
Shanghai. Notice the advertisements for
McDonald's, Coca Cola and Pizza Hut. These and
many other Western consumer goods and chain
restaurants have become pervasive in China's
larger cities
Protests in China . . . . See youtube videos
Massive Rural protests
10 April 2005 20,000 peasants drive off more
than 1,000 riot police in Huaxi, Zhejiang province
6 Nov 2004 Paramilitary troops put down an
uprising of 100,000 farmers in Sichuan province
11 June 2005 Six farmers die in a fight with
armed men in Shengyou, Hebei province
China's tough handling of recent protests by
villagers in Taishi, southern Guangdong province,
has thrown into fresh doubt its claims to be
introducing genuine democracy "from the bottom
up". BBC
Rural Protest
29 July 2005 Villagers in Taishi, Guangdong try
to oust mayor
14 Jan 2006 Police break up protest in Sanjiao,
Guangdong, over land grabs
6 Dec 2005 Police shoot dead protesters in
Dongzhou, Guangdong
China overtakes Japan as world's second-biggest
economy http//
21 14 Fev 2011 http//
How does China hold down the value of its yuan (
Buying Dollars to Keep the Dollar Price
High China has been interested in keeping the
Yuan (Chinese Currency) undervalued relative to
the US Dollar, and the easiest way (if you can
afford it) to keep the Dollar price high, and the
Yuan low is to buy dollars from the open
market. A country like China, which runs a huge
Trade Surplus can afford to buy dollars in the
open market to keep the demand for dollars high,
and push the dollar price upwards relative to the
Yuan. This keeps the Yuan undervalued.
Why Does China Wish to Undervalue the
Yuan? Chinas engine of growth is exports. The
lower the value of the Yuan, the better it is for
Chinas exporters. Basically, if 1 Dollar buys 7
Yuans, and a exporter sells a Chinese Shirt for
10 dollars he pockets 70 yuans. But if one
Dollar was worth only 5 Yuans, the exporter would
only be able to pocket 50 yuans.
One of these lists is titled Who might be Hurt
by a Yuan Appreciation Another is titled
Companies Which Would Benefit from a Yuan
Appreciation Which is which?
  • U.S. manufacturers of capital equipment, such as
    Caterpillar (CAT) and Deere (DE),.
  • Wholesale food exporters like Archer-Daniels-Midla
    nd Company (ADM), DANONE, and Chiquita Brands
    International (CQB),
  • Western commodity manufacturers, such as steel
    companies like Nucor (NUE), Arcelor Mittal (MT),
    and Wheeling-Pittsburgh (WPSC), who face less
    competition due to higher Chinese prices.
  • Chinese airlines, such as China Eastern Airlines
    (CEA) and China Southern Airlines Company (ZNH),
    who now pay less in Yuan for airplanes and
    aviation fuels.

Companies Which Would Benefit from a Yuan
  • Investors holding a lot of Treasury Bills or
    U.S.-dollar-denominated bonds.
  • Mortgage providers like Countrywide Financial
    (CFC), Wells Fargo (WFC), and Federal National
    Mortgage Association (FNM) would face higher
    rates, which would decrease their business volume
  • Mass-market retailers Wal-Mart Stores and Target
  • Electronics producers such as Dell (DELL),
    Hewlett-Packard (HPQ), Motorola (MOT) and Nokia
    (NOK) who built factories in China and employed
    Chinese workers to manufacture their products for
    the U.S. market.

Who might be Hurt by a Yuan Appreciation
(No Transcript)
(No Transcript)
FRQ Explain the two Pillars of Dengs Reform
and Opening Pillar ONE De_____ (explain what
you mean by that and give policy examples) Pillar
TWO Open to (explain what you mean by that and
give policy examples) Identify 3 Political, 3
Economic and 3 Social results of the market
reform Deng started http//