Friday, November 13, 2009

Blair on China (Thomas P.M. Barnett) - China's New Cultural Revolution (Tony Blair)

Copy of blog post by Thomas P.M. Barnett Nov. 12, 2009:

Thomas P.M. Barnett
Blair on China
OP-ED: China's New Cultural Revolution, By TONY BLAIR, Wall Street Journal, October 9, 2009

A truly magnificent piece by Blair (or his writers) that provides a lot of nice perspective of the sort I favor:

My fave section:
Prior to 1949, China was a deeply riven and unequal society. There was a reason for the civil war and the multiple invasions of foreign powers. There was a reason for the upheaval of 1949. In the first 30 years came the completion of the revolution and the establishment of the People's Republic. But then came the Cultural Revolution.
It is difficult for us to grasp the pain of that period, when China closed down and engaged in a bizarre and cruel experiment that left scars, even to this day, on those who experienced it--including many in the present leadership. Talk to those who lived during that time, when reason was turned on its head, when survival depended on the whim of officialdom, and when all independent thought was snuffed out, and you will understand how momentous the change has been since then.

The opening up of China has its ups and downs. But over the past 25 years, the number of people below the World Bank poverty line has fallen by over 80%, GDP per head has more than doubled, and Chinese entrepreneurs are among the most innovative in the world.

China is now the world's largest market for automobile sales, but it is also investing heavily in green vehicles. It is the world's second largest market for wind turbines and the third largest in solar power. Over the next decade, it will almost double its energy output from renewable sources, its cities will change much of their lighting to LEDs, and it will aim to peak its emissions in 2030.

China's universities are forging partnerships with the best of their counterparts in the West. And China is turning out more science and engineering graduates than the whole of Europe put together.
Worth reading.

(Thanks: Michael S. Smith II)

Posted by Thomas P.M. Barnett on November 12, 2009
Click here to read Dr Barnett's bio.
- - -

Copy of op-ed from The Wall Street Journal
China's New Cultural Revolution
By TONY BLAIR
October 09, 2009, 4:22 A.M. ET
Yesterday, just a week after the 60th anniversary celebrations of the People's Republic, China kicked off its first World Media Summit. It shows how far China has come—and how far it has to go.

First, understand the problem. We all know China is a nation of 1.3 billion people, but that is just a statistic. Think of how we regard the United States—how different California is from Ohio, for example. Then quadruple it. Think of trying to meld China's 56 native ethnic groupings into one cohesive state. Think of the disaster, not just to the Chinese, but to ourselves, if it fractured.

Understand also how dramatic and daunting the challenge of China's development is. The U.S. has 4% of its population employed in agriculture. Almost 60% of Chinese make their livelihood farming, and more than 150 million live on $1 a day. They need to shift from farming to industry, and they need to do so desperately. The East Coast of China, especially around Beijing, Shanghai and Guangzhou, may look, in parts, like the First World. But rural China, inland and to the West, is in the beginning stages of development. It will have to change at a pace the world has never seen before.

China's New Cultural Revolution (Tony Blair)

Photo: Old and new. (Associated Press)

Are China's leaders concerned about ensuring that this happens with minimum chaos and maximum stability? Of course, and so they should be. Disorder is their enemy and ours.

Today, we analyze feverishly whether China will be able to help rebalance the world economy; whether it will play its full part in the Copenhagen negotiations on climate change; and what its position may be on Iran. Imagine we were analyzing the consequences of a threat to China's stability and cohesion. And then be glad we are not.

None of this means that we should stop posing tough questions to China's leaders. It simply means that we should appreciate how their country looks to them from the inside. We may criticize the speed of political reform, and raise concerns about human rights and the rule of law. But we should at least understand that their political and economic endeavor is unique in human history. Its magnitude is beyond the comprehension of most Western leaders, and its complexity should be recognized.

Prior to 1949, China was a deeply riven and unequal society. There was a reason for the civil war and the multiple invasions of foreign powers. There was a reason for the upheaval of 1949. In the first 30 years came the completion of the revolution and the establishment of the People's Republic. But then came the Cultural Revolution.

It is difficult for us to grasp the pain of that period, when China closed down and engaged in a bizarre and cruel experiment that left scars, even to this day, on those who experienced it—including many in the present leadership. Talk to those who lived during that time, when reason was turned on its head, when survival depended on the whim of officialdom, and when all independent thought was snuffed out, and you will understand how momentous the change has been since then.

The opening up of China has its ups and downs. But over the past 25 years, the number of people below the World Bank poverty line has fallen by over 80%, GDP per head has more than doubled, and Chinese entrepreneurs are among the most innovative in the world.

China is now the world's largest market for automobile sales, but it is also investing heavily in green vehicles. It is the world's second largest market for wind turbines and the third largest in solar power. Over the next decade, it will almost double its energy output from renewable sources, its cities will change much of their lighting to LEDs, and it will aim to peak its emissions in 2030.

China's universities are forging partnerships with the best of their counterparts in the West. And China is turning out more science and engineering graduates than the whole of Europe put together.

There is a new cadre of people coming to the fore within government. Conversations with Chinese leaders today—at the provincial, as well as the central government level—are a world away from the stilted, pro forma exchanges I remember on my first visit 20 years ago.

However, one of the most interesting aspects of modern China is how the narrative of China, its history and its future, is being reframed. Listen to people in China today—and not only in government—and you can see that even amid the celebrations of the 60 years of the People's Republic, China is rediscovering its history and reorienting its future as a result.

Naturally, the 60 years of the Republic and what it has done are extolled. But increasingly, there is an interest in and reverence for China's ancient civilization as well as its post-1949 transformation.

Confucius, the marvels of the Tang dynasty, calligraphy, the beauty of traditional Chinese painting and literature—all of this infuses the speeches, commentary and discourse of contemporary Chinese life. Chinese films, art, fashion and pop music are thriving. There is a new Cultural Revolution taking place in 21st century China, and it is a lot healthier than the old.

This provides those of us outside China with an opportunity. How China changes will impact profoundly how we change. Our obligation is to treat China as a partner as we determine together the way the world will work in the future. If we treat China as our equal, China can be our economic, political and cultural ally. That is an opportunity that is worth effort.

A few weeks ago, when I was in Guizhou province outside Guiyang city, standing in a small village to see a pilot project in solar lighting, I reflected on what I had seen. I had seen the city center, with its fashion shops like Christian Dior and its bustling nightlife, but also housing tenements urgently in need of renovation. I had witnessed a stunning music and dance show celebrating the region's indigenous heritage. I met the Muslim governor. And in the village, I saw newer homes, but also many that were as poor as some in Africa.

As I walked around, the local people at first hung back. But then as I reached out, they reached back. Within minutes, we were taking photos and speaking freely. OK, it wasn't like my old constituency in Sedgefield in the northeast of England. But it wasn't North Korea either. The relationship between government and governed in China is changing, and for the better.

So when we reflect on China's last 60 years, reflect by all means on how far they have to go. But spare a thought for how far they have come. And then figure out how we can help.

Mr. Blair was Prime Minister of Great Britain from 1997-2007.
Cross-posted to my blogs Sudan Watch and Blair Foundation Watch

Tuesday, November 10, 2009

Meme: Joe Trippi's Eleven-Eleven 1111Campaign - America's and Britain's Veterans have given so much. Now, you can give back.

Joe Trippi, one of America's greatest bloggers, has launched Eleven Eleven Campaign. The objective of the Eleven Eleven Campaign is simple: to get 11 million Americans to donate $11 to support America’s Veterans. Here is a copy of Joe's latest tweet on Twitter:
Tomorrow is Veterans Day, and now is our moment to encourage our friends, family members and colleagues to join us... http://bit.ly/9Iu9s
33 minutes ago from Facebook
1111Campaign
Eleven Eleven
Hey Joe! Britain's Veterans have given so much too!

Stand with 11 million Brits and Give £11 to Support Britain’s Vets!

Take Action Today
Click here to support Britain's Veterans
November 11, 2009

Britain's Veterans have given so much.  Now, you can give back.

G20 Fizzles as China-Africa Summit Leads to a $10B Loan

Quote of the Day
“The Chinese people cherish sincere friendship toward the African people, and China’s support to Africa’s development is concrete and real,” said Chinese Premier Wen. “We will help Africa build financing capabilities. We will provide $10-billion for Africa in concessional loans.”
Last year, China vaulted over the United States to become Africa’s largest trading partner, as two-way trade between the two parties totaled $107 billion. In fact, trade between the two regions has surged tenfold in the past eight years, to almost $107 billion in 2008.

China is the largest supplier of arms to Sudan, which received $7 billion of Chinese defense exports between 2003 and 2007, according to the U.S. Department of Defense.

China’s imports of African mineral resources and energy account for only 13% of the continent’s total exports and its investments in Africa’s oil and gas sector were only one-sixteenth of the total investments in the continent, Wen told reporters at the FOCAC.

Chinese investments in Africa were up 77% in the first three quarters of 2009.

Source: Monday Morning
G20 Fizzles as China-Africa Summit Leads to a $10 Billion Loan
Tuesday, November 10, 2009
By Jason Simpkins, Managing Editor
While U.S. and European officials this weekend squabbled over the specifics of an economic recovery plan, China took another step to ensure long-term economic growth by inking another multibillion-dollar deal with Africa.

Finance ministers from the Group of 20 (G20) met over the weekend to discuss the ongoing healing process taking place in the world’s financial system. Officials agreed that stimulus measures should remain in place, as the global economic recovery is still vulnerable. They also acknowledged that while the dollar is weakening, its downside risk is outweighed by the need to “continue to provide support for the economy until the recovery is assured.”

Analysts say that the dollar’s decline will take a back seat to the economic recovery so long as it remains orderly.

“With that, the dollar is going to remain in a structural downturn,” Paul Mackel, senior currency strategist at HSBC Holdings PLC (NYSE ADR: HBC), told Reuters. “But it’s orderly, and that’s the key thing. The dollar’s going to remain a sell on rallies.”

The euro has risen more than 11% against the dollar this year, and yesterday (Monday) it again broke the psychologically important $1.50 level. Many investors have also sought the shelter of hard assets, with the price of gold breaching new record highs on a fairly routine basis over the past week. Gold gained as much as 1.3% on the Comex division of the New York Mercantile Exchange (NYMEX) yesterday, hitting another fresh record of $1,109.50 an ounce.

The International Monetary Fund (IMF) added to the dollar’s woes by saying in its note to the G20 that the U.S. currency was still “on the strong side” in terms of its trade-weighted basis.

But while international policymakers have agreed that stimulus should be employed until the global economy firms, they failed to reach a consensus on much else. Officials agreed the global economy needs more balance. For instance, the United States needs to reduce its trade deficit, while other countries – such as China and Germany – must become less dependent on exports. But a specific strategy aimed at solving the shortcomings that currently exist was lacking.

“The G20 meeting failed to deliver any real specifics as to how it intended to rebalance the global economy, suggesting the drift in the dollar is not likely to be addressed on a coordinated basis,” Daragh Maher, deputy head of global foreign exchange strategy at Calyon Credit Agricole, told The Associated Press.

G20 finance ministers also offered no details on how they plan to limit bonuses at financial firms, to what extent they will force banks to accumulate more cash reserves, and how they will finance a new climate change agreement ahead of a crucial meeting in Copenhagen next month.

“The meeting turned out to be a mostly irrelevant sideshow on the way to the Copenhagen talks,” Richard Dixon, a director of environmental group WWF Scotland, told Bloomberg News.

The United States and Britain, two historically close allies, even clashed over the application of a so-called Tobin tax. British Prime Minister Gordon Brown advocated the tax on financial transactions to support future bank rescues.

“It cannot be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us,” Prime Minister Brown said. There must be a better economic and social contract between financial institutions and the public based on trust and a just distribution of risks and rewards.”

France and Germany have advocated such a tax in the past, but U.S. Treasury Secretary Timothy F. Geithner opposed the idea.

“A day-by-day financial transaction tax is not something we’re prepared to support,” he told Sky News.

Analysts have pointed out that as the recovery gathers steam, the opportunity for real change fades.

“Each day the crisis recedes, the old battle-lines reemerge and it gets tougher to find common conclusions,” Tim Adams, a former U.S. Treasury official who is now managing director at The Lindsey Group, told Bloomberg.

China’s $10 Billion Loan Lands Under the Radar

While finance ministers and central bankers of the world’s 20 most developed nations conferred in Scotland, another, less publicized meeting – the fourth ministerial Forum on China-Africa Cooperation (FOCAC) – was taking place in Sharm el-Sheikh, Egypt.

There, Chinese Premier Wen Jiabao and Chinese President Hu Jintao unveiled eight measures on bilateral cooperation, as well as $10 billion of low-interest loans to African nations over three years.

“The Chinese people cherish sincere friendship toward the African people, and China’s support to Africa’s development is concrete and real,” said Premier Wen. “We will help Africa build financing capabilities. We will provide $10-billion for Africa in concessional loans.”

Indeed, China has found exceptional economic growth at a time when most of the Western world is struggling back from the brink. A continent rich in commodities, which have been skyrocketing in value, Africa is integral to China’s plans for sustained growth.

Chinese oil companies alone have announced plans to spend at least $16 billion to gain access to the continent’s energy assets.

For instance, it was revealed in September that China’s state-owned CNOOC Ltd. (NYSE ADR: CEO) is in talks with Nigeria to buy 6 billion barrels of oil – equivalent to one-sixth of the country’s total reserves.

Acquiring one out of every six barrels of Nigerian oil equivalent could cost between $30 billion and $50 billion. China has made huge investments in Africa in exchange for large supplies of iron ore, nickel, copper, cobalt, bauxite, silver and gold.

Last year, China vaulted over the United States to become Africa’s largest trading partner, as two-way trade between the two parties totaled $107 billion. In fact, trade between the two regions has surged tenfold in the past eight years, to almost $107 billion in 2008.

However, several Western authorities – some of which are concerned about the security of their own operations – have accused China of plundering the continent for its resources with little or no concern its citizens.

For instance, China’s friends in Africa include President Omar Bashir of Sudan – who is currently wanted by the International Criminal Court for war crimes – and Zimbabwe President Robert Mugabe – who has been accused of driving his country into economic ruin and starvation and is heavily sanctioned by the United States and European Union.

“The People’s Republic of China (PRC) aids and abets oppressive and destitute African dictatorships by legit imizing their misguided policies and praising their development models as suited to individual national conditions,” said a report from the Heritage Foundation. “Moreover, China rewards its African friends with diplomatic attention and financial and military assis tance, exacerbating existing forced dislocations of populations and abetting massive human rights abuses in troubled countries such as Sudan and Zimbabwe.”

China is the largest supplier of arms to Sudan, which received $7 billion of Chinese defense exports between 2003 and 2007, according to the U.S. Department of Defense.

Both Sudan’s al-Bashir and Zimbabwe’s Mugabe were present for Wen’s speech.

Still, the Chinese Premier was at a loss in understanding criticism from the West.

China’s imports of African mineral resources and energy account for only 13% of the continent’s total exports and its investments in Africa’s oil and gas sector were only one-sixteenth of the total investments in the continent, Wen told reporters at the FOCAC.

Chinese investments in Africa were up 77% in the first three quarters of 2009.

“So, why do some people only criticize China?” he asked.

News and Related Story Links:

More on this topic (What's this?)
Baltic Dry Index - Rising with China
Chinese returning to China
Read more on Investing in China, G-20 at Wikinvest
November 10th, 2009

Why Gold Will Surpass $2,500

Few investors realize that inflation is the least of the factors driving the bull market in gold. Other factors, like Venezuela's crackdown on gold exports, are likely to push prices higher. Find out how to play each of the "7 Key Drivers" in our Money Morning Publisher's Series report...Go here to get it for free.

TEXT: Press Conference by Chinese premier Wen Jiabao at the 4th FOCAC Ministerial Conference

Quote of the Day
"Many people are trying to offer prescriptions for Africa's development, such as the "Washington Consensus" or the "Beijing Model". Yet it seems to me that Africa's development should be based on its own conditions and should follow its own path, that is, the African Model. All countries have to learn from other countries' experience in development. At the same time, they have to follow a path suited to their own national conditions and based on the reality of their own countries. In the final analysis, the development of a country depends on the efforts of its own people. Any enterprise that wants to do business in Africa has to take account of local conditions." - Chinese premier Wen Jiabao, Nov. 09, 2009
Source: Ministry of Foreign Affairs, the People's Republic of China
Transcript of Press Conference by Premier Wen Jiabao At the Fourth FOCAC Ministerial Conference
November 09, 2009.  Copy in full:
Wen Jiabao: Friends from the press, good afternoon. Sharm El Sheikh is beautiful. The host told me that it would take at least seven days to fully enjoy the city. But I have only less than twenty-four hours. During my stay here I attended the opening ceremony of an important meeting, the Fourth FOCAC Ministerial Conference. I met with thirteen leaders from African countries. Now I have set aside some time to meet with the press and answer your questions.

I. Egyptian newspaper "Pyramids": You have announced at the opening ceremony of the Forum eight new measures for developing China-Africa cooperation. In 2006, Chinese President Hu Jintao announced at the FOCAC Beijing Summit eight measures to strengthen China-Africa practical cooperation. What are the differences and similarities between theses measures? What role will these measures play in promoting China-Africa relations?

My second question is: During your stay in Egypt, you met the Egyptian President and Prime Minister. You have also talked to the Egyptian people. What are the topics you discussed during these meetings? What is your impression of the Egyptian civilization?

Wen: During the FOCAC Beijing Summit in 2006, President Hu Jintao announced on behalf of the Chinese government eight measures to strengthen China-Africa practical cooperation and support the development of African countries. Reviewing the progress of the last three years, the eight measures have basically been implemented. The eight new measures that I announced this morning at the opening ceremony of the Fourth FOCAC Ministerial Conference are aimed at the same goal of improving the capacity of African countries for self-development. The new measures focus more on the improvement of people's well-being, health care, education and other social development programs, the construction of agricultural and basic infrastructures, and the protection of eco-environment. For instance, we have proposed to help African countries build 100 clean energy projects like solar power, biogas, and small hydro-power plants, provide RMB500 million yuan worth of medical equipment and malaria-fighting materials to thirty hospitals and thirty malaria prevention and control centers built by China, build fifty schools, and help Africa train more personnel.

I had an in depth exchange of views with Egyptian President Mubarak. We both agreed that following the establishment of strategic and cooperative relations between the two countries in 1999 and the formulation of the Implementation Outline for Deepening Strategic and Cooperative Relations Between China and Egypt in 2006, China-Egypt relations have entered a new stage of development. This is manifested in stronger political mutual trust, further growth of economic and trade cooperation, and more active exchanges in culture and education. Both Egypt and China are ancient civilizations. Egypt was the first African and Arab country to recognize New China. It was also the first to establish strategic cooperative relations with China. The consolidation and development of China-Egypt friendly and cooperative relations will not only benefit our two peoples, but also promote China's relationship with African and Arab countries.

II. Business Daily, South Africa: Due to the international financial crisis, G8 members and other developed countries are slowing down their delivery of fiscal and financial assistance to developing countries as they had committed. Countries in Africa have also suffered adverse impacts from the financial crisis. Will China take measures to help African countries cope with the financial crisis?

Another question, we are lagging behind schedule in implementing the Millennium Development Goals (MDGs). Do you still see any possibility for the international community to meet the MDGs on schedule through cooperation?

Wen: The current international financial crisis is unprecedented in the course of last one hundred years. It has not only exerted serious impact on developed countries, but also brought grave consequences to developing countries, particularly the least developed ones. Due to the international financial crisis, some banks are downsizing their loans for African countries. However, China has promised that it will not cut its assistance or decrease its credit and loan support to African countries and other developing countries. I announced at the opening ceremony of the Fourth FOCAC Ministerial Conference the plan to give US$10 billion preferential loans to support African countries.

In the global financial crisis, what people tend to easily ignore is the implementation of the Millennium Development Goals. On many occasions including the UN meetings last year and this year's World Economic Forum in Davos, I appealed to the international community to place importance on the implementation of the MDGs and the support and assistance to developing countries, the least developed ones in particular. It seems to me this issue remains serious. Here I would like to once again appeal to the international community to work hard with firm determination and effective measures to reach the MDGs while tackling the global financial crisis.

III. Macao Asia Satellite TV:  You have visited the training center of Huawei and the factory of the Brilliance Auto. At the opening ceremony of today's conference, when you announced eight new measures to strengthen China-Africa cooperation in the coming three years, you mentioned the development of new energy resources and projects for environmental protection and energy conservation. In fact, there have been quite a few Chinese enterprises specialized in this field. Do you believe we will see more success stories like that of the Brilliance Auto in Africa?

Wen:  Many people are trying to offer prescriptions for Africa's development, such as the "Washington Consensus" or the "Beijing Model". Yet it seems to me that Africa's development should be based on its own conditions and should follow its own path, that is, the African Model. All countries have to learn from other countries' experience in development. At the same time, they have to follow a path suited to their own national conditions and based on the reality of their own countries. In the final analysis, the development of a country depends on the efforts of its own people. Any enterprise that wants to do business in Africa has to take account of local conditions.
IV. Reuters:  Some people said that China is only interested in the natural resources of Africa, that China has exploited the African people while plundering Africa's natural resources. How do you respond to such criticism?

Second question, you once mentioned that you were concerned about the security of China's investment in the United States. Now more than seven months later, is your concern growing or abating?

Wen:   There has long been the argument that China is plundering Africa's resources and pursuing the so-called "neo-colonialism".   This is not worth refuting. Any one who is familiar with history would know that the friendly relations and cooperation between China and Africa did not start just yesterday but as early as half a century ago. In those years, we helped Africa build the Tanzara railway and sent to Africa large numbers of medical teams. But we did not take away a single drop of oil or a single ton of mineral ores from Africa. Objectively, what changes has China brought to Africa through its assistance measures? Since 2006, thanks to the implementation of the eight measures, more African products have entered the Chinese market and the annual trade volume between China and Africa has surged from more than US$50 billion to more than US$ 100 billion. Under the impact of the international financial crisis, the whole world has experienced investment downturn. However, in the first three quarters of 2009, China's investment in Africa increased by 77%. China has helped Africa build many schools, hospitals, and malaria prevention and treatment centers, which benefited more than 100 million African people. In fact, China's assistance to Africa has never had any political strings attached. We believe the destiny of a country is in the hands of its people.

In terms of energy, I want to tell this journalist, China is not the largest importer of Africa's oil. Our import takes up only 13% of Africa's oil export. China's investment in Africa's oil and natural gas accounts for less than 1/16 of the global investment in this field. CNPC is China's largest petroleum company. But its annual turnover is less than 1/3 of ExxonMobile. Why should China be singled out for criticism? Is this an African view point or rather a Western viewpoint? A line from a Chinese poem is sufficient to respond to this question: "A time-honored friendship is like the gold. After repeated smelting, it keeps its true color".

For your second question, I did say at the World Economic Forum in Davos this year that we were concerned about China's foreign exchange assets in the United States, because it is China's money. Our principle for the foreign exchange reserve is to ensure its security, liquidity and good value. Now the US economy is showing signs of recovery and we have seen positive changes. We hope that the United States, as the largest economy and the major reserve currency issuing country, will fulfill its responsibilities with concrete measures. Most importantly, it should keep its deficit within a proper scale and ensure the basic stability of its exchange rate. This will facilitate stability and recovery of the world economy.

V. Al Jazeera:   China often claims itself a reliable friend of Africa, but Western countries are accusing China of practicing neo-colonialism aimed at African oil and market on the ground that China is trying to expand its influence by getting actively involved in African affairs. We have also found that China's investment in and imports from Africa concentrate on oil and raw materials, but China exports manufactured goods to Africa. What's your comment on these criticisms? When will this cooperation model between China and Africa be changed? When will China invest in Africa's industrial sector, new technology and new industrial sectors instead of concentrating on infrastructure and agriculture?

My second question is: African countries support China in the international arena without any reservation, abide by the one China policy and do not develop official relations with Taiwan. Yet we find that China would sometimes decline to give full support to Africa. One example is when the UN Security Council resolution on the Sudan was put to vote in 2005, when China did not veto it. Consequently, the International Criminal Court was able to prosecute the Sudanese President Bashir.

Wen:  I have already answered your first question, but I want to add a few words. We hold the view that support between China and Africa is mutual. At the time when Africa struggled for independence, China supported it and the independent African countries also supported China in restoring its lawful seat in the United Nations. That's why we often say it is our African brothers and sisters who carried China into the United Nations. In other words, we feel indebted to the African people. I often say that one should always remember with gratitude the help one receives from others, while one should forget the help one renders to others. Our assistance to and cooperation with Africa is selfless and has no political strings attached. This is clear for all to see. Over the years, in our cooperation with and assistance to Africa, we have laid emphasis on infrastructure development and closer cooperation in agriculture, education, health and social programs, as these are what the African people need. I may give you an example. We have built a total of about 3,300 kilometers of roads and 2,200 kilometers of railways and we are now helping Africa build communications networks. We have sent a large number of medical teams to Africa. They have helped treat African patients and some of them have lost their lives and been laid to rest on this ancient continent. The ultimate goal of our assistance to and cooperation with Africa is to strengthen the self-development capacity of African countries. That is why we have placed priority on the development and utilization of mineral resources and the raw material processing industry, areas in which Africa enjoys comparative advantage. Among the projects that are being carried out to implement the eight measures we pledged to take in 2006, over 1,600 projects are related to the processing industry, including the joint copper mine development project in Zambia which have created many jobs for the local people. If you visit the training centers of the Huawei Technologies Company in Egypt, Nigeria and South Africa, you will find that they employ many African people who not only are highly skilled but also speak Chinese. In our assistance to and cooperation with Africa, we will continue to improve policy measures, with greater emphasis on training, capacity building and corporate social responsibility.

The blame you laid on China over the issue of the Sudan is unfounded. Besides, I wish to emphasize that China's position on the UN Security Council reform is consistent and clear-cut. The Security Council should increase the say and representation of developing countries, particularly African countries. We have done a lot to achieve this goal.

VI. The October Magazine of Egypt:  Firstly, what are the specific figures of China's assistance and loans to Africa? Secondly, some people say that the current problem the Sudan faces arises from the China-US rivalry for the spheres of inference in that country. What is your response to such claim?

Wen:  China's assistance to and cooperation with Africa have always been transparent and open. China's assistance to Africa reached 76 billion yuan by September 2009 and its total sum of loans 46 billion yuan by 2008.

Africa was colonized for 600 years. China shares similar experience with Africa as it was subjected to colonization after 1840. China has a population of 1.3 billion. Although the size of China's economy ranks in the forefront of the world, the development is very much unbalanced, with a big gap between the rural and urban areas and between different regions. Many people in China are still living in poverty. I wish to tell this lady that we are too busy with our own affairs to interfere in others' internal affairs. What's more, we have no intention at all to do so.

Speaking of the issue of the Sudan and Darfur, we, indeed, did several things there. First, we tried to facilitate the reconciliation between the North and the South of the Sudan. Second, China was the first non-African country to send peacekeeping troops to Darfur. Besides, China has provided selfless assistance to help the people in Darfur living in poverty. On these issues, we do not pursue any selfish interest, nor will we compete with any other country.

VII. Cameroon Daily:  Mr. Premier, a meeting of the Economic and Monetary Community of Central Africa will be held in Gabon soon to discuss the issue of global climate change. The African Union has asked the European Union to provide some financial assistance to help Africa address the challenges of climate change, for instance, to set up a fund for that purpose. Can China also provide us with some money? How will China help Africa better cope with climate change?

Wen: I have noted that the Economic and Monetary Community of Central Africa will hold a meeting on climate change. This will be an important meeting of African countries before the Copenhagen Conference. At this morning's opening ceremony, President Jean Ping of the African Union Commission introduced Africa's position on climate change on behalf of the African Union. He stated that the Copenhagen Conference should uphold the principles defined by the UN Framework Convention on Climate Change, its Kyoto Protocol and the Bali Road Map and follow the principle of "common but differentiated responsibilities". China and Africa all belong to the developing world. Industrialization in its real sense has been going on in China for only a few decades. We are all victims of climate change. The Chinese side fully supports the legitimate demands presented by African countries on behalf of the under-developed countries. Developed countries should provide technical and financial assistance to developing countries to uplift their technological level and enhance their ability to adapt to climate change. We stand ready to make joint efforts with the rest of the world to strive for good outcomes of the Copenhagen Conference.

VIII. China Radio International: You have had an intense and highly efficient visit to Egypt. You said that this trip was aimed at promoting dialogue among civilizations and developing friendship and cooperation. Now that you are about to conclude your trip, how do you feel about this visit and do you think you have achieved your goals?

Wen:  I want to draw your attention to views of many African leaders, including the remarks by 17 African leaders this morning. You should also listen to what the African people say. I have read a book titled Dead Aid written by an African woman writer. The author talks about her personal experiences and draws the conclusion that China's assistance to Africa is sincere, credible, practical and efficient and is welcomed by the African people. We in China have a saying that goes, "As distance tests a horse's strength, time reveals a person's heart." I am confident that time will prove that friendship and cooperation between the Chinese and African people have a bright future.

I am scheduled to meet with six African leaders now and leave Egypt for Beijing at 10 p.m.. I am sorry I do not have time for more questions. Thank you! I wish you all the best!

Sunday, November 08, 2009

China to give Africa $10 billion in loans: Wen

(AFP) – 08 Nov 2009
China to give Africa $10 billion in loans: Wen
SHARM EL-SHEIKH, Egypt — Chinese Prime Minister Wen Jiabao pledged to give African countries 10 billion dollars in concessional loans as a two-day Forum on China-Africa Cooperation opened in Egypt on Sunday.

"We will help Africa build up its financing capabilities... we will provide 10 billion US dollars for Africa in concessional loans," Wen told the forum in the Red Sea resort of Sharm el-Sheikh.

His pledge was included among measures he said would be taken over the next three years, including cancelling debts of African countries to increase his country's role in the continent.

The Asian giant pledged five billion dollars in assistance over three years at the last Forum on China-Africa Cooperation summit, held in Beijing in 2006, and has signed agreements to relieve or cancel the debt of 31 African nations.

It will also provide a one-billion-dollar loan for "for small- and medium-sized businesses," Wen said.

"China is ready to deepen practical cooperation in Africa," he said, adding that Beijing was prepared to take on a role in "the settlement of issues of peace and security."

China will also remove tariffs on 95 percent of products "from the least-developed African states that have diplomatic relations with China," he said.

Wen added that China would set up environmental programmes in the continent, including 100 clean energy projects, and increase cultural exchanges and medical assistance.

Chinese firms have been pouring investments into oil and other raw materials in Africa to fuel the Asian country's booming economy.

Over the past five years, Chinese direct investment in Africa has soared, from 491 million dollars in 2003 to 7.8 billion dollars in 2008, according to official Chinese figures.

Total trade between China and Africa surpassed 100 billion dollars in 2008 -- a tenfold increase in eight years.

Booming trade ties have been accompanied by China also building schools, hospitals and clinics to fight malaria and offering scholarships for Africans to study in China.

But Beijing's growing economic role in the poverty-ridden continent has also been met with some scepticism and criticism.

China has been accused of throwing a lifeline to pariah regimes accused of human rights violations, such as the government of Sudan's President Omar al-Beshir, who is wanted for war crimes by the International Criminal Court.

Beshir, who is at the summit, thanked China in a speech for its diplomatic role in Sudan, where a six-year conflict in the country's western Darfur region has killed 300,000 people, according to the United Nations.

"We express our deep appreciation for China's efforts in backing the comprehensive peace agreement (between south and north) in Sudan and its peace efforts in Darfur," he said.

"We thank China particularly for backing efforts by our countries to achieve peace and stability in Africa's zones of conflict," Beshir added.

On March 4 the International Criminal Court issued a warrant for Beshir, accusing him of crimes against humanity and war crimes in Darfur.

Chinese officials say they follow a policy of non-interference in the domestic affairs of African countries, and deny that Chinese investments and loans come with strings attached.

"Africa is fully capable of solving its own problems, in an African way," Wen said in his speech.

"China has never attached any political strings... to assistance to Africa," he said, adding that trade is based on "win-win programmes... and transparency."

Some observers have criticised China for relying on its own expertise and labour in Africa, rather than training Africans.

Wen said China intended to improve scientific and technological cooperation with African states and give technical training to African students.

China to give Africa $10 billion in loans: Wen

(AFP) – 08 Nov 2009
China to give Africa $10 billion in loans: Wen
SHARM EL-SHEIKH, Egypt — Chinese Prime Minister Wen Jiabao pledged to give African countries 10 billion dollars in concessional loans as a two-day Forum on China-Africa Cooperation opened in Egypt on Sunday.

"We will help Africa build up its financing capabilities... we will provide 10 billion US dollars for Africa in concessional loans," Wen told the forum in the Red Sea resort of Sharm el-Sheikh.

His pledge was included among measures he said would be taken over the next three years, including cancelling debts of African countries to increase his country's role in the continent.

The Asian giant pledged five billion dollars in assistance over three years at the last Forum on China-Africa Cooperation summit, held in Beijing in 2006, and has signed agreements to relieve or cancel the debt of 31 African nations.

It will also provide a one-billion-dollar loan for "for small- and medium-sized businesses," Wen said.

"China is ready to deepen practical cooperation in Africa," he said, adding that Beijing was prepared to take on a role in "the settlement of issues of peace and security."

China will also remove tariffs on 95 percent of products "from the least-developed African states that have diplomatic relations with China," he said.

Wen added that China would set up environmental programmes in the continent, including 100 clean energy projects, and increase cultural exchanges and medical assistance.

Chinese firms have been pouring investments into oil and other raw materials in Africa to fuel the Asian country's booming economy.

Over the past five years, Chinese direct investment in Africa has soared, from 491 million dollars in 2003 to 7.8 billion dollars in 2008, according to official Chinese figures.

Total trade between China and Africa surpassed 100 billion dollars in 2008 -- a tenfold increase in eight years.

Booming trade ties have been accompanied by China also building schools, hospitals and clinics to fight malaria and offering scholarships for Africans to study in China.

But Beijing's growing economic role in the poverty-ridden continent has also been met with some scepticism and criticism.

China has been accused of throwing a lifeline to pariah regimes accused of human rights violations, such as the government of Sudan's President Omar al-Beshir, who is wanted for war crimes by the International Criminal Court.

Beshir, who is at the summit, thanked China in a speech for its diplomatic role in Sudan, where a six-year conflict in the country's western Darfur region has killed 300,000 people, according to the United Nations.

"We express our deep appreciation for China's efforts in backing the comprehensive peace agreement (between south and north) in Sudan and its peace efforts in Darfur," he said.

"We thank China particularly for backing efforts by our countries to achieve peace and stability in Africa's zones of conflict," Beshir added.

On March 4 the International Criminal Court issued a warrant for Beshir, accusing him of crimes against humanity and war crimes in Darfur.

Chinese officials say they follow a policy of non-interference in the domestic affairs of African countries, and deny that Chinese investments and loans come with strings attached.

"Africa is fully capable of solving its own problems, in an African way," Wen said in his speech.

"China has never attached any political strings... to assistance to Africa," he said, adding that trade is based on "win-win programmes... and transparency."

Some observers have criticised China for relying on its own expertise and labour in Africa, rather than training Africans.

Wen said China intended to improve scientific and technological cooperation with African states and give technical training to African students.

Friday, November 06, 2009

FOCA: China, Africa hold summit to reinforce bilateral trade

Chinese Premier Wen Jiabao can expect a warm welcome from Egypt’s President Hosni Mubarak and finance and foreign ministers from 50 countries when the Forum on China-Africa Cooperation (FOCA) starts in the Egyptian resort of Sharm El-Sheikh on Sunday.

Ever-eager for raw materials and markets to sell its products, China has said the new meeting will lay down a “road map” to further boost cooperation between 2010 and 2012.

Direct Chinese investment in Africa leapt from $491 million in 2003 to $7.8 billion in 2008. Trade between the two has increased tenfold since the start of the decade.

Last year, China-Africa trade reached $106.8 billion - a rise of 45 percent in one year and on a par with with the United States, which estimated its two-way trade with sub-Saharan Africa at $104 billion for 2008.

Chinese imports from Africa last year were worth $56 billion, dominated by oil ($39 billion) and raw materials.

Its $56 billion of exports in 2008 consisted mainly of machinery, electrical goods, cars, motorbikes and bicycles.

FOCAC is held every three years and this will be the fourth since it started in 2000.

Source: AFP report via Saudi GazetteFriday 06 November 2009. Copy:
China, Africa hold summit to reinforce bilateral trade
CAIRO - Leaders from China and Africa start a three day summit on Sunday that will again throw the spotlight on Beijing’s strategic sweep for energy, minerals and political influence in the continent.

China has over the past decade paid for dams, power stations, football stadiums across Africa and scooped up copper, oil and other fuel for its breakneck economic expansion from Algeria to Zimbabwe.

It has invested billions of dollars while raising eyebrows in the United States and its allies by pursuing the hunt for oil and other resources in Sudan, Somalia and other nations that the West has shunned.

Many African leaders praise China however for not preaching about rights and corruption. So despite neo-colonialist qualms, Chinese Premier Wen Jiabao can expect a warm welcome from Egypt’s President Hosni Mubarak and finance and foreign ministers from 50 countries when the Forum on China-Africa Cooperation starts in the Egyptian resort of Sharm El-Sheikh on Sunday.

FOCAC is held every three years and this will be the fourth since it started in 2000.

Ever-eager for raw materials and markets to sell its products, China has said the new meeting will lay down a “road map” to further boost cooperation between 2010 and 2012.

Direct Chinese investment in Africa leapt from $491 million in 2003 to $7.8 billion in 2008. Trade between the two has increased tenfold since the start of the decade.

Last year, China-Africa trade reached $106.8 billion - a rise of 45 percent in one year and on a par with with the United States, which estimated its two-way trade with sub-Saharan Africa at $104 billion for 2008.

Chinese imports from Africa last year were worth $56 billion, dominated by oil ($39 billion) and raw materials.

Its $56 billion of exports in 2008 consisted mainly of machinery, electrical goods, cars, motorbikes and bicycles.

Some in the West have accuse China of worsening repression and human rights abuses in Africa by supporting countries such as Sudan and Zimbabwe.

US intelligence director Dennis Blair told a Congress committee in March that US agencies are keeping close tabs on China’s expanding influence in Africa, especially in oil-producing countries like Nigeria.
Cross-posted to:
Congo Watch
Egypt Watch
Ethiopia Watch
Kenya Watch
Niger Watch
Sudan Watch
Uganda Watch
Africa Oil Watch

AGI: Tony Blair Africa Governance Initiative

AGI:  Tony Blair Africa Governance Initiative

From The Office of Tony Blair
November 05, 2009
Tony Blair Africa Governance Initiative to create development through good governance becomes charity
The Tony Blair Africa Governance Initiative has become a registered UK charity after creating a unique 'hands-on' approach to development and poverty eradication over the past eighteen months.

The Charity Commission approved the application from this relatively new organisation, which is underpinned by the belief that good governance and sustainable development are key to poverty eradication in the long term.

Tony Blair, founder of the Africa Governance Initiative (AGI), said:

"I'm extremely proud of our excellent project teams who are working in partnership with the governments of Rwanda and Sierra Leone to reduce poverty and develop new opportunities for growth.

"It is a privilege to work with leaders as talented and as committed to their people as President Koroma and President Kagame who represent a new generation of leaders in Africa with a commitment to building a new future for their people.

"The developed world needs to keep up its commitment to Africa expressed at the 2005 G8 Summit in Gleneagles. But lasting change in Africa will only come in the end from African solutions. By building the capacity to create sustainable long-term development through good governance and providing high level advice, we have already started to help deliver that change.

"And it won't stop here. Whilst developing our work in Sierra Leone and Rwanda, we want to launch new projects with other countries, sharing our knowledge, experience and expertise. We want more countries to develop sustainably, paving the way to a prosperous future.

"This work has reinforced my optimism about Africa's future, as well as my conviction that governance and growth are the key ingredients to effectively reduce poverty across the continent."

Commenting on Tony Blair and the work of the Africa Governance Initiative, Ernest Koroma, President of Sierra Leone, said:

"Mr. Blair has demonstrated an enduring commitment to Sierra Leone and its people. The work comes at a critical stage in Sierra Leone's development. I believe together we have an opportunity to ensure that Sierra Leone puts in place the policies, people and institutions to achieve real and lasting change."

Commenting on the work of AGI, President Paul Kagame of Rwanda said:

"What I would like people to know is that the type of partnership we have with Tony Blair is totally different from the type of consultancy people are used to. We work in very strong partnerships whereby not only gaps are filled where they exist, but there's also the notion of transfer of skills, mentoring, actually doing things that are measurable such that over a period of time, we will be able to know what kind of impact was made."
Cross-posted to:
Congo Watch
Egypt Watch
Ethiopia Watch
Kenya Watch
Niger Watch
Sudan Watch
Uganda Watch
Africa Oil Watch

Saturday, July 18, 2009

Arctic fox cubs debut in NE China

Arctic fox cubs debut in NE China

A pair of one-month-old arctic foxes, known as Alopex Lagopus in Latin, make their debut to meet visitors at the Harbin Polarland, in Harbin, northeast China's Heilongjiang Province, July 16, 2009. A female arctic fox imported from Finland gave birth to this pair of arctic foxes after 53-days gestation. (Xinhua Photo)

one-month-old arctic foxes

A zoo worker shows a pair of one-month-old arctic foxes, known as Alopex Lagopus in Latin, in their debut to meet visitors at the Harbin Polarland in Harbin, northeast China's Heilongjiang Province, July 16, 2009. A female arctic fox imported from Finland gave birth to this pair of arctic foxes after 53-days gestation. (Xinhua Photo)

Monday, July 06, 2009

Muslim Uigurs have run riot and killed up to 140 Han Chinese

From today's Channel 4 News (UK) Snowmail by Krishnan - excerpt:
CHINA CRISIS

The other big international story today is in China, where it is claimed Muslim Uigurs have run riot and killed up to 140 Han Chinese (what you or I would consider ordinary Chinese).

There is claim and counter-claim over how this violence erupted and over who provoked whom. We don’t even know if the figure of 140 is true. But Lindsey Hilsum is on the case.
Read Lindsey Hilsum’s blog: http://bit.ly/IQdCK

Saturday, June 27, 2009

Google access in China temporarily disrupted - outage follows criticism by Chinese watchdog

Google China

From Bureau News - Breaking News 24/7, Thursday, 25 June 2009:
Google to take serious action after being banned in China for providing pornographic links
BEIJING — Internet users in China were unable to access search giant Google Inc.’s main Web site or its Chinese service, and the company said Thursday it was investigating. The outage came after the China Internet Illegal Information Reporting Center last week accused Google of providing links to vulgar and obscene sites. Google, based in Mountainview, California, said it would do more to stop users in China from accessing pornography.

The outage began late Wednesday and affected Google’s main site, its Gmail.com e-mail service and its China-based site, Google.cn. On Thursday, all three were accessible from a computer in Beijing, but users in two other cities said they could not open Google’s main site or Gmail.

“We are investigating the matter and hope the service will be restored soon,” Google spokesman John Pinette in Hong Kong told The Associated Press.

The Chinese agency that oversees the Internet, the Ministry of Industry and Information Technology, did not immediately respond to requests for comment.

China has the world’s largest population of Internet users at more than 298 million. The communist government has the world’s most extensive Web monitoring and filtering system, and it regularly blocks access to foreign Web sites.

While the government claims the main targets are pornography, online gambling, and other sites deemed harmful to society, critics say that often acts as cover for detecting and blocking sensitive political content.

Authorities launched a crackdown this year that led to the closing of more than 1,900 porn-related Web sites.

Google has struggled to expand in China, where it says it has about 30 percent of the search market. The company launched Google.cn with a Chinese partner after seeing its market share erode as government filters slowed access to its U.S. service.
I have just checked the visitor stats for one of my blogs, Sudan Watch and can see there have been no visitors from China which is quite unusual. I'll keep an eye on the stats today to see if this blog post attracts a visitor from China. Usually they are quite on the ball.

Sunday, October 05, 2008

Transcript of interview with Chinese Premier Wen Jiabao September 23, 2008

China's prime minister Wen Jiabao speaks out in his first interview with a Western publication in years.

Wen in New York: 'China's democracy will continue to grow'
‘We Should Join Hands’
Fareed Zakaria
NEWSWEEK
From the magazine issue dated Oct 6, 2008

In New York last week for the opening of the United Nations General Assembly, Chinese Prime Minister Wen Jiabao gave a rare exclusive interview to NEWSWEEK's Fareed Zakaria. Wen, 66, is known for his openness and economic mastery, and has presided over some of the fastest growth in China's history. He began the conversation by pledging to "tell the truth" and invited Zakaria to interrupt him, since Wen "prefers dialogue to long-winded speeches." The two covered topics ranging from Tibet and Tiananmen Square to Darfur and human rights, from political philosophy to the U.S. elections, from the current financial crisis to the future of Chinese democracy. Excerpts:

ZAKARIA: What do you think of the financial crisis affecting the United States?

WEN: We should join hands and meet the crisis together. If the financial and economic system[s] in the United States go wrong, then the impact will be felt not only in this country, but also in China, in Asia and the world at large.

Regarding your own economy, many people now say there will be a significant slowdown. Do you think that will happen? And if it does, what do you think will be the consequences?

China's economy has been growing at an annual average rate of 9.6 percent for 30 years running. This is a miracle. And between 2003 and 2007, China enjoyed double-digit growth—yet the consumer price index grew less than 2 percent a year.

China has been proactive in adopting regulatory measures. Our previous concerns were to prevent a fast-growing economy from overheating and to prevent soaring prices from becoming inflation.

But things have changed very fast [because of] the subprime crisis in the United States and the serious turbulence that followed. We have seen a decline in external demand, and China's domestic demand cannot be significantly increased in a short period of time. [So] we do risk a slowdown. We must re-adjust macroeconomic policy.

Do you think you can continue to grow if the United States goes into a major recession?

Given the statistics for the first eight months of this year, we have managed to do that. [But] a U.S. recession would certainly have an impact on China's economy. Ten years ago, China–U.S. trade stood at only $102.6 billion. Today the figure has soared to $302 billion—a 1.5-fold increase. A shrinking of U.S. demand would certainly have an impact on China's exports. And U.S. finance is closely connected with Chinese finance. If anything goes wrong in the U.S. financial sector, we would be anxious about the security of Chinese capital.

China is the largest holder of U.S. Treasury bills - by some accounts, they're worth almost $1 trillion. Can you reassure [Americans] that China would never use this status as a weapon in some way?

We believe that the U.S. real economy is still solidly based, particularly the high-tech and basic industries. Something has gone wrong in the virtual economy, but if this problem is properly addressed, it is still possible to stabilize the economy. The Chinese government hopes to see sustained development in the United States, as that will benefit China. Of course, we are concerned about the safety and security of Chinese money here. But we believe that the United States is a credible country. And particularly at such difficult times, China has reached out to the United States. And actually we believe such a helping hand will help stabilize the entire global economy and finance and prevent major chaos from occurring ... I believe now that cooperation is everything.

Many people see China as a superpower already, and they wonder: why is it not being more active in political resolution of issues such as Darfur or Iran?

I need to correct some elements of your question. China is not a superpower. Although China has a population of 1.3 billion and although in recent years it has registered fairly fast economic and social development, China still has … 800 million farmers in rural areas and we still have dozens of millions of people living in poverty. We need to make committed and very earnest efforts to address these problems. That's why we need to focus on our own development and on our efforts to improve people's lives.

But surely the Chinese government could pressure the Sudanese government or the Iranian government or the government in Burma to be less repressive. You have relations with all three of them.

That brings me to your second question. China is a justice-upholding country. We never trade our principles. Take the Darfur issue that you raised just now, for example. China has always advocated a dual-track approach: China was among the first countries sending peacekeepers to Darfur. China was also the first country that gave assistance to Sudan, and we also keep [up] our efforts to engage the leaders in Sudan to try to seek a peaceful solution.

Do you think it would be dangerous for the world if Iran got nuclear weapons? And what do you think the world should do to try to prevent it?

We are not supportive of a nuclear rise for Iran. We believe that Iran has the right to develop a utilization of nuclear energy in a peaceful way. But such efforts should be subject to the safeguards of the IAEA, and Iran should not develop nuclear weapons … We hope that we can use peaceful talks to achieve the purpose, rather than resort to the willful use of force, or the intimidation of force. It's like a relationship between two individuals. If one individual tries to corner the other, the effect will be counterproductive. Our purpose is to resolve the problem, not to escalate tensions.

I have a question for you: don't you think that the efforts made by China in resolving the Korean nuclear issue have actually helped that situation? I know it will take time to [achieve] a complete solution to the Korean nuclear issue. But the model we have adopted has proved to be right in this direction.

China's efforts have been appreciated in the United States and around the world. And it makes people wish that China would be active in other areas in the same way.

We have gained a lot of experience and learned lessons from the years of negotiations. The progress made also had a lot to do with the close cooperation among the six parties in the talks.

The Dalai Lama says now he would accept China's rule in Tibet. Why don't you negotiate directly with him and solve this issue once and for all?

The Dalai Lama is a religious leader and enjoys certain influence in the Tibetan region. He is not an ordinary religious figure. The so-called government in exile founded by the Dalai Lama practices theocratic rule. And the purpose of this so-called government in exile is to separate Tibet from China. All over the world, the Dalai Lama keeps preaching about autonomy for the greater Tibetan region. He wants to separate the so-called greater Tibetan region from the motherland. Many people in the United States have no idea how big this region is; it covers Tibet, Sichuan, Yunnan, Qinghai and Gansu: a quarter of China's territory.

For decades, our policy [has been that] as long as the Dalai Lama is willing to recognize that Tibet is an inalienable part of China's territory, and as long as the Dalai Lama gives up his separatist activities, we're willing to have contact and talks with him or his representatives. Now, sincerity holds the key to producing results out of the talks.

What action would you like to see from the Dalai Lama that would show sincerity?

His sincerity can be demonstrated in giving up separatist activities. … Of course, talks may continue, and in light of the progress in the talks, we may also consider raising the level of the talks.

Premier Wen, your country has grown, as you pointed out, 9.5 percent for 30 years - the fastest growth rate of any country in history. What is the key to your success? What is the model?

[The answer is] the reforms and opening-up policy we introduced in 1978. We emancipated productivity in China. We had one important thought: that socialism can practice market economy.

People think that's a contradiction. How do you make both work?

Give full play to the basic role of market forces in allocating resources under the macroeconomic guidance and regulation of the government. Ensure that both the visible hand and the invisible hand are given full play. If you are familiar with Adam Smith, you will know that there are two famous works of his. "The Wealth of Nations" deals with the invisible hand: market forces. The other book deals with social equity and justice. In the other book, he stressed the importance of the regulatory role of the government to distribute wealth among the people. If most of the wealth in a country is concentrated in the hands of the few, this country can hardly [have] harmony and stability.

Some Americans and Europeans, particularly human-rights observers, say that China has cracked down on human rights over the last few years. They say they had hoped that the Olympics would lead to an opening, but there has been more repression. How would you respond?

By hosting the Olympics, China has become more open. Anyone without biases will see that. Freedom of speech and of media coverage are guaranteed in China. The Chinese government attaches importance to, and protects, human rights. We have incorporated these into the Chinese Constitution, and we also implement [them] in earnest. We don't think that we are impeccable in terms of human rights—it is true that in some places and in some areas, we have problems. Nonetheless, we are continuing to make improvements.

When I go to China and I'm in a hotel and I type the words "Tiananmen Square" into my computer, I get a firewall, what some people call the Great Firewall of China. Can you be an advanced society if you don't have freedom of information?

China now has over 200 million Internet users and the freedom of the Internet in China is recognized by many, even in the West. To uphold state security, China, like many countries in the world, has also imposed some proper restrictions. On the Internet in China, you can have access to a lot of postings that are quite critical about the government. It is exactly through reading these critical opinions on the Internet that we try to locate problems and further improve our work. I don't think a system or a government should fear critical opinions or views.

What are your favorite sites?

I've browsed a lot of Web sites.

There is a photograph of you at Tiananmen Square in 1989. What lesson did you take from your experiences in dealing with that problem? Did you feel it was necessary to stop political reform? Do you think in 25 years there will be national elections in which there will be competition?

I believe that while moving ahead with economic reforms, we also need to advance political reforms, as our development is comprehensive in nature, our reform should also be comprehensive. I think the core of your question is about the development of democracy in China. When it comes to the development of democracy in China, we can talk about progress in three areas.

No. 1: we need to gradually improve the democratic election system so that state power will truly belong to the people and state power will be used to serve the people.

No. 2: we need to improve the legal system, run the country according to law, and [have] an independent and just judicial system.

No. 3: government should be subject to oversight by the people. That will [require] us to increase transparency in government affairs. It is also necessary for government to accept oversight by the news media and other parties.

We need to take into account China's national conditions and we need to introduce a system that suits China's special features and we need to introduce a gradual approach.

It's hard for me to predict what will happen in 25 years. This being said, I have this conviction: that China's democracy will continue to grow. In 20 to 30 years, Chinese society will be more democratic and fairer and the legal system will be improved. Socialism as we see it will further mature and improve.

People say you're studying the Japanese system because there's democracy, but only one party seems to win elections. Is that the model you see for China?

There are multiple forms of democracy in the world. What is important is whether it really represents the interests of the people. Socialism as I understand it is a system of democracy. And such a democracy first and foremost should serve to ensure the people's right to democratic elections, oversight and decision making. Such a democracy should also help people to develop themselves in an all-around way in an environment featuring freedom and equality. And such a democracy should be based on a full-fledged legal system.

You've said that you've read the works of Marcus Aurelius a hundred times. He is a famous Stoic philosopher. My reading of him says that one should not be involved in the self, and in any kind of pursuits that are self-interested, but should be more for the community as a whole. When I go to China these days, I am struck by how much individualism there is, how much consumerism there is. Are you trying to send a signal to the Chinese people to think less about themselves and more about the community?

It is true I read the meditations of Marcus Aurelius on many occasions, and I was very deeply impressed by the words that he wrote. I very much value morality and do believe that entrepreneurs, economists and statesmen alike should pay much more attention to morality and ethics. In my mind, the highest standard to measure ethics and morality is justice. When we think about the economy, we think more about companies, capital, markets, technology, and so on. We might forget about elements like conviction and morality. Only when we combine these two kinds of factors can we [have] a full picture of the DNA of the economy. It is true that in the course of China's economic development, some companies have pursued profits at the expense of morality. We will never allow such things to happen, because such an approach simply cannot be sustained. That's why we advocate corporate, occupational and social ethics.

Let me ask you a final question. You must have been watching the American election. What is your reaction to this strange race?

The presidential election of the United States should be decided by the American people. What I follow very closely is [what] the relationship between China and the United States [will be like] after the election. In recent years, there has been sound growth in China-U.S. relations. We hope that whoever is elected president, he will continue to grow the relationship with China. And China hopes to continue to improve its relationship with the United States no matter who takes office.

URL: http://www.newsweek.com/id/161410

Here below is a transcript of Fareed Zakaria's interview with Chinese Prime Minister Wen Jiabao.
-----

September 29, 2008 -- Updated 2220 GMT (0620 HKT)

Transcript of interview with Chinese Premier Wen Jiabao

Story Highlights
- Chinese Premier Wen Jiabao was interviewed by Fareed Zakaria last week
- Jiabao says China has achieved fast and steady economic growth
- He says U.S. financial difficulties impact China

Chinese Premier Wen Jiabao was interviewed by Fareed Zakaria on "Fareed Zakaria GPS" this weekend

Below is the complete transcript of Fareed Zakaria's interview with Chinese Premier Wen Jiabao. The interview was taped September 23, and portions were shown on "Fareed Zakaria GPS" on September 28.

Zakaria: We are now beginning the formal interview, just so everyone realizes.

Wen Jiabao: Before we begin, I would like to let you know that I will use the words from the bottom of my heart to answer your questions, which means that I will tell the truth to all your questions.

I always tell people that sometimes I may not tell what is on my mind, that as long as I speak out what is on my mind, the words are true.

I think you are now interviewing a statesman, and at the same time you are interviewing a statesman in his capacity as a common people.

I prefer dialogue to long-winded speeches, so you can always interrupt me and raise your questions. That would certainly make our dialogue more lively.

Zakaria: I look forward to the chance for this dialogue, and I begin by thanking you for giving us the opportunity and the honor. The first thing I have to ask you, I think is on many people's minds. What do you think of the current financial crisis affecting the United States, and does it make you think that the American model has many flaws in it that we are just recognizing now?

Wen Jiabao: I took office as the Chinese premier six years ago, and before then I was serving as the vice premier of the country. When I was the vice premier, I experienced another financial crisis but in Asia. And in wake of the Asian financial crisis, China adopted a proactive fiscal policy and decided not to devalue the RMB, the Chinese currency, but doing so we managed to overcome the difficulties. But now the problems in the United States started with the subprime crisis and later on, Fannie Mae and Freddie Mac were involved in the problems, and the Lehman Brothers was in trouble, Merrill Lynch was in trouble, the AIG was in trouble, and such large investment banking companies and insurance companies all encountered systematic problems.

And this has made me feel that this time the crisis that occurred in the United States may have an impact that will affect the whole world. Nonetheless, in face of such a crisis, we must also be aware that today's world is different from the world that people lived in back in the 1930s.

So this time we should join hands and meet the crisis together. If the financial and economic system in the United States go wrong, then the impact will be felt, not only in this country but also in China, in Asia and in the world at large.

I have noted a host of policies and measures adopted by the U.S. government to prevent an isolated crisis from becoming a systematic one, and I hope that measures and steps they have adopted will pay off. I also hope that these measures and steps will not only save some major U.S. financial companies but also help stabilize the U.S. economy and ensure that the U.S. economy will grow on a balanced course.

Zakaria: When you look at your own economy, as you know, there are many people who now say there will be a significant slowdown of the Chinese economy. There are people predicting that Chinese growth rates may slow to as much as 7 percent. Do you think that will happen? And if it does, I wonder, what do you think the consequences will be in China?

Wen Jiabao: Yes, indeed. China's economy has been growing at an annual average rate of 9.6 percent for 30 years running. This is a miracle.

Particularly between the year 2003 and 2007, China had enjoyed a double-digit growth for its economy, and at the same time the CPI grew in for less than 2 percent a year. It is fair to say that China has achieved a fairly fast and steady economic growth.

This time, China has been proactive in adopting regulatory measures. Our previous considerations were to prevent a fast-growing economy from becoming overheated and to prevent the faster soaring prices from becoming obvious inflation. But things have changed very fast, and I refer to the sub-prime crisis in the United States and the serious financial turbulences that follow the sub-prime crisis.

And as a result, we have seen a decline in external demand, and China's domestic demand can hardly be increased in a very significant manner in a short period of time. In this case, it is true that we do have this risk of a slowdown in the Chinese economy.

In this context, we must re-adjust the macroeconomic policy in China in order to adapt ourselves to external changes. What is most important is for us to strike a balance between economic growth, dampening the price rises and bringing inflation under control. And to strike a balance between job creation and dampening inflation and I know it's very, very difficult to strike a balance in all those areas.

We need to adopt a flexible and prudent macroeconomic policy to adapt to external changes in order to ensure very fast and steady economic growth and at the same time keeping inflation down.

Zakaria: Do you think you can continue to grow if the United States goes into a major recession?

Wen Jiabao: In the first half of this year, or given the statistics for the first eight months of this year, we can see that we have managed to do that.

A possible U.S. economic recession will certainly have an impact on the China economy. As we know that 10 years ago, the China-U.S. trade volume stood at only $102.6 billion U.S., while today the figures soar to $302 billion U.S., actually representing an increase of 1.5-fold. A shrinking of U.S. demand will certainly have an impact on China's export.

And the U.S. finance is closely connected with the Chinese finance. If anything goes wrong in the U.S. financial sector, we are anxious about the safety and security of Chinese capital.

That's why in the very beginning I have made it clear that the financial problems in this country not only concerns the interests of the United States but also that of China and the world at large.

Zakaria: There is another sense in which we are interdependent. China is the largest holder of U.S. Treasury bills. By some accounts, they're worth almost $1 trillion. It makes some Americans uneasy. Can you reassure them that China would never use this status as a weapon in some way?

Wen Jiabao: As I said, we believe that the U.S. real economy is still solidly based. Particularly the high-tech industries and the basic industries. Now, something has gone wrong in the virtual economy, but if this problem is properly addressed, then it is still possible to stabilize the economy in this country.

The Chinese government hopes very much that the U.S. side will be able to stabilize its economy and finance as quickly as possible, and we also hope to see sustained development in the United States as that will benefit China.

Of course, we are concerned about the safety and security of Chinese money here. But we believe that the United States is a credible country and particularly at such difficult times, China has reached out to the United States.

And actually we believe such a helping hand will help stabilize the entire global economy and finance and to prevent a major chaos from occurring in the global economic and financial system. I believe now cooperation is everything.

Zakaria: May I ask you about China's role in a broader sense? Many people see China as a superpower already, and they wonder: why is it not being more active in political resolution of issues such as the issue of Darfur or the issue of Iran and its nuclear ambitions?

There is a hope that China will play a role as a responsible stakeholder, to use Robert Zoellick's phrase when he was deputy secretary of state, and that China will be more active in managing the political problems in the world, and that so far it has not been active. How would you react to that?


Wen Jiabao: To answer this question, I need to correct some of the elements in your question first. China is NOT a superpower. Although China has a population of 1.3 billion and although in recent years China has registered fairly fast economic and social development since reform and opening up, China still has this problem of unbalanced development between different regions and between China's urban and rural areas. China remains a developing country.

We still have 800 million farmers in rural areas, and we still have dozens of million people living in poverty. As a matter of fact, over 60 million people in rural and urban areas in China still live on allowances for basic living costs in my country. And each year, we need to take care of about 23 million unemployed in urban areas and about 200 million farmers come and go to cities to find jobs in China. We need to make committed and very earnest efforts to address all these problems.

To address our own problems, we need to do a great deal. China is not a superpower. That's why we need to focus on our own development and on our efforts to improve people's lives.

Zakaria: But surely the Chinese government could pressure the Sudanese government or the Iranian government or the government in Burma to be less repressive. You have relations with all three of them.

Wen Jiabao: That brings me to your second question. Actually in the international community, China is a justice-upholding country. We never trade our principles.

Take the Darfur issue that you raised just now for example. China has always advocated that we need to adopt a dual-track approach to seek a solution to the Darfur issue. China was among the first countries sending peace-keepers to Darfur.

China was also the first country that gave assistance to Sudan and we also keep our efforts to engage the leaders in Sudan to try to seek a peaceful solution to the issue as quickly as possible.

Zakaria: Do you think it would be dangerous for the world if Iran got nuclear weapons? And what do you think the world should do to try to stop that possibility?

Wen Jiabao: We are not supportive of a nuclear rise to Iran. We believe that Iran has the right to develop a utilization of nuclear energy in a peaceful way. But such efforts should be subject to the safeguards of the [International Atomic Energy Agency], and Iran should not develop nuclear weapons. As far as the Iranian nuclear issue is concerned, China's stance is clear-cut.

We hope that through promoting the talks concerning this issue, that we will be able to encourage the Iranian authorities to give up any idea to develop nuclear weapons and accept IAEA safeguards.

Nonetheless, we hope that we can use peaceful talks to achieve the purpose, rather than resort to the willful use of force or the intimidation of force. It's like treating the relationship between two individuals. If one individual tries to corner the other, then the effect will be counterproductive. That will do nothing in helping resolve the problem. Our purpose is to resolve the problem, not to escalate tensions.

And I also have a question for you: Don't you think that the efforts made by China in resolving the Korean nuclear issue and position we have adopted in this regard have actually helped the situation on the Korean peninsula move for the better day by day? And, of course, I know that it still takes time to seek a thorough and complete solution to the Korean nuclear issue, and on that basis to help put in place the security and stability in Northeast Asia. But, what I'd like to stress is that the model that we have adopted, and the efforts we have made, prove to be right in this, in this direction.

Zakaria: Since you honored me by asking the question, I will say to you, premier, that China's efforts in North Korea have been appreciated in the United States and around the world. And of course it makes people wish that China would be active in other areas in just the same productive way that it was in North Korea because we see that it produces results.

Wen Jiabao: We have gained a lot of experience and learned lessons from years of negotiations concerning the six-party talks, and the progress made in the six-party talks also has a lot to do with the close cooperation among the six parties.

Zakaria: May I ask you about another set of possible talks? The Dalai Lama has said now it appears that he would accept China's rule in Tibet, he accepts the socialist system in Tibet, and what he asks for is cultural autonomy and a certain degree of political autonomy. The talks apparently are stuck at a lower level between the Tibetans and the Chinese government. Why don't you, given your power and your negotiating skills, take the issue yourself -- and you or President Hu Jintao would negotiate directly with the Dalai Lama and solve this issue once and for all for the benefit of the Chinese people, and of course the Tibetan people who are also in China?

Wen Jiabao: Our issue with the Dalai Lama is not an ethnic, religious or cultural issue in the ordinary sense. It's a major principled issue concerning safeguarding the country's unity or allowing efforts to separate a country. And we must adopt a two-pronged approach in viewing the Dalai Lama. On one hand, it is true that the Dalai is a religious leader, and he enjoys certain influence in the Tibetan region, and particularly in regions that the inhabitants believe in Buddhism. And, on the other hand, we must also be aware that he is not an ordinary religious figure. The so-called government in exile founded by the Dalai Lama practices a theocratic rule. And the purpose of this so-called government in exile is to separate Tibet from China.

In many places all over the world, the Dalai Lama keeps preaching about the idea of a so-called autonomy in the greater Tibetan region. And actually, the so-called autonomy that he pursues is actually to use religion to intervene in politics. They want to separate the so-called greater Tibetan region from the motherland. And many people in the United States have no idea how big is the so-called greater Tibetan region, the so-called greater Tibetan region, preached by the Dalai Lama, actually covers Tibet, Sichuan, Yunnan, Qinghai and Gansu -- altogether five provinces. And the area covered by the so-called greater Tibetan region accounts for a quarter of China's territory.

For decades, our policy towards the Dalai Lama remains unchanged: that is, as long as the Dalai Lama is willing to recognize that Tibet is an inalienable part of China's territory, and as long as the Dalai Lama gives up his separatist activities, we're willing to have contact and talks with him or his representatives.

Now, sincerity holds the key to producing result out of the talks. After the Tibet incident back in the 1950's, the highest leader of the central government, Mr. Deng Xiaoping, also met the representatives of the Dalai Lama.

So, I don't think there is this problem, as whether I can have contact with the Dalai Lama. The real key lies in the effectiveness of such contact and talks.

We hope that he can use real actions to show sincerity and break the deadlock.

Zakaria: What action would you like to see from the Dalai Lama that would show sincerity?

Wen Jiabao: Actually, I already made it clear that when we observe any individual, the Dalai Lama included, we should not only watch what, we should not only observe what he says, but also watch what he does.

His sincerity can be demonstrated in giving up separatist activities.

Zakaria: And then you might meet with him?

Wen Jiabao: By then, everything depends on the development of the situation. Of course, talks may continue, and in light of the progress in the talks, we may also consider raising the level of the talks.

Zakaria: Premier Wen, your country has grown, as you pointed out, 9½ percent for 30 years -- fastest growth rate of any country in history. If people come to you and say to you, "What is the Chinese model of succeeding as a developing country?" What would you say? What is the key to your success? What is the model?

Wen Jiabao: It's easy to answer this question, that you may think about this thing -- that about 30 years ago, why China was not able to grow as fast as it has in the following years. I think this is attributable to the reforms and opening up a policy we introduced in 1978. This holds the key to China's success. By introducing reform and opening up, we have greatly emancipated productivity in China.

We have one important thought: that socialism can also practice market economy.

Zakaria: People think that's a contradiction. You have the market economy, where the market allocates resources, and in socialism, it's all central planning. How do you make both work?

Wen Jiabao: The complete formulation of our economic policy is to give full play to the basic role of market forces in allocating resources under the macroeconomic guidance and regulation of the government.

We have one important piece of experience of the past 30 years: that is to ensure that both the visible hand and the invisible hand are given full play in regulating the market forces.

If you are familiar with the classical works of Adam Smith, you will know that there are two famous works of his. One is "The Wealth of Nations"; the other is the book on the morality and ethics. And, "The Wealth of Nations" deals more with the invisible hand that are the market forces. And the other book deals with social equity and justice. And in the other book he wrote, he stressed the importance of playing the regulatory role of the government to further distribute the wealth among the people.

If in a country, most of the wealth is concentrated in the hands of the few, then this country can hardly witness harmony and stability.

The same approach also applies to the current U.S. economy. To address the current economic and financial problems in this country, we need to apply not only the visible hand but also the invisible hand.

Zakaria: May I ask you -- some Americans and Europeans, particularly human rights observers, say that China has cracked down on human rights over the last few years, that they had been hoping that the Olympics would lead to an opening of China, but that it has, there has been more repression. How would you respond to that?

Wen Jiabao: By hosting the Olympic Games, China has actually become more open. Anyone without biases will see -- have seen that. In the freedom of speech and the freedom in news media coverage are guaranteed in China. The Chinese government attaches importance to, and protects, human rights. We have incorporated these lines into the Chinese constitution, and we also implement the stipulation in real earnest. I think for any government, what is most important, is to ensure that its people enjoy each and every right given to them by the constitution.

Including their right to survival, freedom and to pursue their happiness.

We don't think that we are impeccable in terms of human rights. It is true that in some places and in some areas, we do have problems of this kind or that kind. Nonetheless, we are continuing to make efforts to make improvements, and we want to further improve human rights in our country.

Zakaria: When I go to China and I'm in a hotel and I type in the words Tiananmen Square in my computer, I get a firewall, what some people call the Great Firewall of China. Can you be an advanced society if you don't have freedom of information to find out information on the Internet?

Wen Jiabao: China now has over 200 million Internet users, and the freedom of Internet in China is recognized by many, even from the west. Nonetheless, to uphold state security, China, like many countries in the world, has also imposed some proper restrictions. That is for the safety, that is for the overall safety of the country and for the freedom of the majority of the people.

I can also tell you on the Internet in China, you can have access to a lot of postings that are quite critical about the government.

It is exactly through reading these critical opinions on the Internet that we try to locate problems and further improve our work.

I don't think a system or a government should fear critical opinions or views. Only by heeding those critical views would it be possible for us to further improve our work and make further progress.

I frequently browse the Internet to learn about a situation.

Zakaria: What are your favorite sites?

Wen Jiabao: I've browsed a lot of Internet Web sites.

Zakaria: I will take advantage of your kindness and ask you a question that many people around the world wonder about. There is a very famous photograph of you at Tiananmen square in 1989. What lesson did you take from your experiences in dealing with that problem in 1989?

Wen Jiabao: I believe that while moving ahead with economic reforms, we also need to advance political reforms, as our development is comprehensive in nature, our reform should also be comprehensive.

I think the core of your question is about the development of democracy in China. I believe when it comes to the development of democracy in China, we talk about progress to be made in three areas:

No. 1: We need to gradually improve the democratic election system so that state power will truly belong to the people and state power will be used to serve the people

No. 2: We need to improve the legal system, run the country according to law, and establish the country under the rule of law and we need to view an independent and just judicial system.

No. 3: Government should be subject to oversight by the people and that will ask us, call on us to increase transparency in government affairs and particularly it is also necessary for government to accept oversight by the news media and other parties.

There is also another important aspect that when it comes to development of democracy in China, we need to take into account China's national conditions, and we need to introduce a system that suits China's special features, and we need to introduce a gradual approach.

Zakaria: People say you're studying the Japanese system because there's democracy but there's only one party that seems to win the elections. Is that the kind of model you see for China?

Wen Jiabao: I think there are multiple forms of democracy in the world. What is important is the substance of democracy.

Which means that at the end of the day, what is important about democracy is that whether such form of democracy can really represent the calling and interest of the people.

Socialism as I understand it is a system of democracy. Without democracy, there is no socialism.

And such a democracy first and foremost should serve to ensure people's right to democratic elections, oversight and decision making.

Such a democracy should also help people to fully develop themselves in an all-around way in an environment featuring freedom and equality.

And such a democracy should be based on a full-fledged legal system. Otherwise, there would be chaos. That's why we need to run the country according to law and ensure that everyone is equal under the law.

Zakaria: We've talked about elections many times. Do you think in 25 years there will be national elections in which there will be a competition, there will be perhaps two parties, that will be running for a position such as your own?

Wen Jiabao: It's hard for me to predict what will happen in 25 years time. This being said, I have this conviction -- that China's democracy will continue to grow. In 20 to 30 years time, the whole Chinese society will be more democratic and fairer, and the legal system in China will further be improved. The socialism as we see it will further mature and improve.

Zakaria: Let me ask you, premier, finally a couple of questions that are personal. You've said that you've read the works of Marcus Aurelius a hundred times. Marcus Aurelius is a famous stoic philosopher. My reading of him says that one should not be involved in the self, and in any kind of pursuits that are self-interested but should be more for the community as a whole. When I go to China these days, I am struck by how much individualism there is, how much consumerism there is. Are you trying to send a signal to the Chinese people to think less about themselves and more about the community?

Wen Jiabao: It is true I did read the meditations written by Marcus Aurelius Antonio on many occasions, and I was very deeply impressed by the words that he wrote in the book -- to be fact - where are those people that were great for a time? They are all gone, leaving only a story, or some even just half a story. So I draw the conclusion that only people are in the position to create history and write history.

I very much value morality, and I do believe that entrepreneurs, economists and statesmen alike should pay much more attention to morality and ethics.

In my mind, the highest standard to measure the ethics and morality is justice.

That's why in the morning when I answered the question, I said that I believe in the veins of the economist, we should see the blood of morality.

When we think about economy, we think more about the real elements concerning the company, the capital, the market, the technology, so on and so forth. And we might forget about the other sort of elements that work behind the scene, and these factors are also affected by the visible factors like conviction and morality. Only when we combine these two kinds of factors, can we put in place a full picture of the DNA of the economy.

It is true in the course of China's economic development, some companies have actually pursued their profits at the expense of morality and we will never allow such things to happen.

We will not allow economic growth at the expense of the loss of morality because such approach simply can not sustain.

That's why we advocate the corporate, occupational and social ethics.

Zakaria: Let me ask you a final question, your excellency. You must have been watching the American election. What is your reaction to the strange race and election that we are having in this country?

Wen Jiabao: The presidential election of the United States should be decided by the American people. But what I follow very closely is the relationship between China and the United States after the election. In recent years, there has been a sound growth momentum in the growth of China-U.S. relations. And we hope, and whoever is elected as the president and whoever is sworn in into the White House, no matter which party wins the election, that he or she and the parties will continue to grow the relationship with China. And China hopes to continue to improve and grow its relationship with the United States no matter who will take office and lead the new administration in this country.

Zakaria: On that happy note, I thank you, your excellency. I'm sure your people are worried we took a little extra time. And I thank you in advance for your kindness and your frankness.