| 2003 APEC Themes:
Security & Economic Development Regardless of Differences
The theme and sub-themes for the 2003 APEC year have been released
by the host economy, the Kingdom of Thailand. The central theme
of the 2003 APEC year is: "A World of Differences: Partnership
for the Future" The incoming Executive Director of the APEC
Secretariat for the 2003 APEC year, Ambassador Piamsak Milintachinda,
said the 2003 theme is most suitable for the current regional economic
climate. "Many of the challenges confronting the APEC region
today do not respect borders or cultural differences. "To meet
the challenges of economic instability, corporate governance and
terrorism, we must build on our strengths to work together. "The
terrorists behind acts in Russia, the Philippines and Indonesia
did not discriminate between cultures and community identities.
We must work together in pursuit of APEC¡¯s twin goals of enhancing
security against terrorist threats while continuing to promote trade
growth and economic development within the APEC region. "Working
in partnership we can also reduce the cost of doing business across
borders and expand the benefits of new technologies and skills to
all members of APEC. "By drawing strength from our differences
and working in partnership we can set common standards and regulations
that all economies will observe and respect. Building greater uniformity
of standards and regulations makes it easier for small and medium
sized business to trade across borders and ultimately creates jobs.
"Regardless of their level of economic development, resources
and financial strength, all APEC economies must forge a sense of
strong partnership to foster regional economic growth." Ambassador
Piamsak said the main theme of the 2003 year is supported by a series
of sub-themes that will assist APEC Working Groups and Forums to
better articulate their goals for the year. These themes are listed
on the attached fact sheet.
From http://www.apecsec.org.sg/ 12/13/2002
Asia Hopes for a More
Peaceful 2003
SYDNEY, Australia -- Tight security and pleas for peace after a
tumultuous 12 months have marked the welcoming of the New Year across
the Asia Pacific region. The changeover was relatively trouble free,
although a deadly grenade attack in the Philippines and anti-U.S.
protests in Seoul, South Korea marred the celebrations. Six people
were killed instantly when someone hurled a grenade into a fireworks
stand in the city of Tacurong in Sultan Kudarat province Tuesday
evening, Philippine police said. Thirty-two people were wounded
in the attack, Philippine police spokesman Franco Lustino said.
No one has taken responsibility for the attack but police blame
the Moro Islamic Liberation Front. In downtown Seoul, at least 20,000
South Koreans gathered in a candlelight demonstration to protest
the deaths of two teenage girls killed when they were hit by a U.S.
military jeep. The protesters set off fireworks, some chanting,
"Punish the murderous American soldiers!" Adding to the
sentiment, South Korean president-elect, Roh Moo-hyun, in a New
Year's message, warned against "blindly following U.S. policy,"
on North Korea. Roh criticized a possible U.S. plan to use economic
sanctions to force North Korea to abandon nuclear weapons development,
asserting his country's role in resolving the looming nuclear crisis
on the Korean Peninsula. In Sydney, Australia, the word "Peace"
blazed over the harbor at the climax of a 15-minute display watched
by hundreds of thousands of people. Police closed downtown Sydney
to traffic in a massive security clampdown rivaled only by the city's
2000 Olympics. "After ... all this talk about terrorism it
is so good that Australians overcame adversity," Sydney Lord
Mayor Frank Sartor said after the fireworks, The Associated Press
reported. "We went on and celebrated and had a great, great
party." In New Zealand's largest city Auckland, fireworks erupted
from the 330 meter (1,076 foot) Sky Tower on the stroke of midnight
while crowds cheered on the streets below. Skydivers made for an
impressive sight in Kuala Lumpur, Malaysia, jumping from the world's
highest buildings, the Petronas Towers, to mark the beginning of
2003. Pacific Rim nations have been on heightened alert since October
12, when bombs tore through two nightclubs on the Indonesian island
of Bali, killing 192. The victims were mostly Western vacationers,
including 88 Australians. The blasts are blamed on Jemaah Islamiyah,
a group linked to Osama bin Laden's al Qaeda terrorist network.
More than 200,000 security personnel were on duty across the world's
most populous Islamic nation. In the capital, Jakarta, bomb squad
officers and armed officers were watching over revelers. Thousands
of Balinese and a sprinkling of foreign tourists danced and sang
along Kuta Beach to ring in the New Year, trying to erase the memory
of the bomb attacks. There were also prayers and calls for peace.
"In the days that come, we will be full of hope. I ask all
Indonesians to live in peace and security," President Megawati
Sukarnoputri told the crowd on Kuta Beach, struggling to be heard
above the trumpets and whistles. Security in the mostly Muslim Pakistan
was stepped up for New Year's Eve with a ban on Karachi hotel parties
as thousands of young people gathered on beaches on the Arabian
Sea. In Japan, millions of Japanese thronged to shrines and temples.
There had been no specific warnings of terrorist activity, Toshinobu
Hiroki, spokesman for Japan's National Police Agency, said. And
in India, violence in the disputed territory of Kashmir continued
unabated. A gunfight between India's army and suspected militants
Tuesday left at least six people dead, including a local woman in
the Poonch sector of Jammu, police said. The battle started in the
morning and continued into the afternoon. Three militants, an army
captain, and a soldier were killed, in addition to the local woman,
according to local police. Three other civilians in the town of
Morah Kalali were critically injured.
From http://asia.cnn.com/ 01/01/2003
Asian Allies Take N. Korea
Concerns to U.S.
The two Asia allies would be vulnerable to North Korean missiles
and are seeking a diplomatic solution before Pyongyang adds to the
two atom bombs it is believed to possess. As the talks wound through
a long day at the State Department, President George W. Bush again
said the United States had no intention of attacking North Korea.
He also predicted a peaceful resolution. Bush said, "We expect
North Korea to adhere to its obligations" and permit weapons
inspections. In an exchange with reporters at the White House, Bush
said that could open the way to a resumption of dialogue with North
Korea. At the start of two days of talks, the administration declined
to publicly evaluate a South Korean proposal to exchange U.S. guarantees
of North Korea's security for a renewed freeze on the nuclear weapons
program. State Department spokesman Richard Boucher said, "We
will be listening carefully." White House press secretary Ari
Fleischer said, "We view this as an issue that we need to work
together on, and work shoulder to shoulder on." The Bush administration
is determined to forge a united front against North Korea, and plans
to send Undersecretary of State John Bolton to China in late January
to try to enlist Chinese support for a pressure campaign.
From http://asia.cnn.com/ 01/06/2003
Arms Agency Tells North
Korea to Comply or Face Council
VIENNA, Austria (AP) -- Opting for compromise but warning of confrontation,
the U.N. nuclear agency on Monday demanded that North Korea abandon
its atomic weapons program voluntarily or face escalated pressure
from the Security Council. The International Atomic Energy Agency's
35-nation board, which includes the United States, Russia and China,
agreed to censure the North for reactivating suspect nuclear programs
and eliminating agency controls meant to ensure that materials are
not being used to make atomic weapons. It stopped short of the next
step -- reporting North Korea in breach of its international nuclear
obligations to the Security Council, a move that could open the
way to sanctions on the renegade communist country. But the resolution
warned the North would be declared in ``further noncompliance''
of international obligations unless it lets the IAEA reimpose monitoring
of its nuclear activities. North Korea expelled the agency's inspectors
last week. Mohamed ElBaradei, the agency's director-general, told
reporters any declaration of ``further noncompliance means under
our statutes (automatically) reporting the matter to the Security
Council.'' Diplomats at the meeting, who spoke on condition of anonymity,
said the board decision was dictated in part by concern that an
escalation could force North Korea, which is suspected of possessing
nuclear weapons, over the brink. Although the IAEA warned beforehand
that it was taking a ``zero tolerance'' approach toward the crisis,
its resolution did not explicitly set a deadline for Pyongyang to
comply. But a senior U.S. diplomat said the urgency of the language
used in the document that the North had no more than a ``few weeks''
to comply. The resolution, using the acronym for the Democratic
People's Republic of Korea, used strong diplomatic language to make
that point. It ``deplores in the strongest terms the DPRK's unilateral
acts to remove and impede the functioning of containment and surveillance
equipment at its nuclear facilities.'' The North's decision to expel
the IAEA inspectors ``renders the agency unable to verify that there
has been no diversion of nuclear material,'' the resolution said.
It called for an immediate meeting between the North Korean leadership
and the agency. In Washington, the Bush administration reacted positively
to the resolution. ``The president views this as the appropriate
course of action,'' said Ari Fleischer, spokesman for U.S. President
George W. Bush. ``The nations involved in this decision today are
very broad. It takes a lot of work to get condemned by Iran and
Cuba and North Korea has done it.'' ElBaradei warned North Korea
to comply, saying the latest events ``further aggravate the situation.''
``North Korea has to come clean,'' ElBaradei said. ``There are two
options for North Korea: Comply with your international obligations
or continue defiance that will escalate into a crisis situation
and go to the Security Council.'' Monday's closed-door meeting came
amid new diplomatic efforts to ease the standoff. High-level delegations
from South Korea and Japan brought their concerns over North Korea's
nuclear program to the Bush administration on Monday in Washington
and were assured the United States would ``work shoulder to shoulder''
with them to ease the crisis. ``We view this as an issue that we
need to work together on, and work shoulder to shoulder on,'' Fleischer
said. The two Asian U.S. allies would be vulnerable to North Korean
missiles and are seeking a diplomatic solution before Pyongyang
adds to the two atom bombs it is believed to possess. South Korea
also pressed Russia -- one of North Korea's few allies -- to help
persuade the North to back down, and Moscow agreed to step up its
contacts with Pyongyang. Defense Minister Sergei Ivanov said Monday
that Russia wants stability on the Korean peninsula and called for
``quiet diplomacy'' to defuse tensions. North Korea, stung by an
energy crisis, insists it needs the power. The United States says
the 5-megawatt reactor in question would produce a mere trickle
of electricity and could be used to produce nuclear weapons. The
Vienna-based IAEA had maintained two inspectors in North Korea from
1992 until New Year's Eve, when they left after the North said they
were no longer welcome. Last week's expulsions came after the North
removed IAEA seals and surveillance cameras from its nuclear complex
at Yongbyon, north of Pyongyang, the capital. Although he denounced
North Korea for its ``nuclear brinkmanship,'' ElBaradei said the
country should be given one more chance to pull back. If North Korea
does step back from the brink, ``then all the doors will be open,''
including negotiations on security and meeting the impoverished
country's energy and food needs, ElBaradei said.
From http://www.nytimes.com/ 01/07/2003
Russia's Retreat from
Southeast Asia
Southeast Asia was a major battleground of the great powers throughout
the Cold War. And since the global war on terror began it again
has been the scene of major police operations and rising interest
by both China and the United States as both those governments jockey
to bring the area into a closer relationship with themselves, either
through trade pacts or through security agreements. However, nowhere
to be found in these maneuvers is Russia. Indeed, the decline in
Russian power and presence in Southeast Asia has continued under
Vladimir Putin without letup. Undoubtedly financial weakness underlies
much of the problem. Russia publicly abandoned its base at Cam Ranh
Bay even before its lease was up and even before September 11, 2001,
because Vietnam's price for retaining its lease was unaffordable.
Moreover, Russia no longer has important defense and security interests
in Southeast Asia so there is no compelling need to maintain the
base under conditions of financial weakness. Indeed, Russia, as
its leaders well know, can barely hold on in Northeast Asia, part
of its territory and thus the source of vital security interests.
In this light a base in Cam Ranh Bay becomes an unaffordable luxury.
But Russia's problems do not end here. Recently it was revealed
that Russia is cutting back on its participation in major oil projects
off Vietnam's shores and in its territorial waters (see Russia refines
Vietnam oil ventures, January 3). This clearly is an important sign
of the times regarding Russia's position in Asia generally and the
vagaries of its energy industry's place there. Energy is the most
important export that Russia has to offer. At the same time there
has been a lot of publicity and hype concerning major projects involving
Russian energy deposits in Northeast Asia. In one case, Sakhalin,
Russia has secured backing from Indian, US and Japanese firms, and
is talking of building a pipeline for the gas to China as well.
But most of the other major projects under consideration have yet
to be consummated contractually, let alone implemented as construction
projects. Therefore it is essential for Russia's future in Asia
that these projects move toward fulfillment. Accordingly, much of
Russia's policy toward Southeast Asia, to the extent that one could
discern it, involved an effort to elicit Southeast Asian participation
in major energy and infrastructural projects in both Russia and
in their own territory. The purposes of these projects, beyond the
obvious one of selling Southeast Asian regimes the energy they need
to meet rising demand, were to demonstrate Russia's reliability
as a partner, make money for investment back home in energy and
other industries, and ultimately to restore a significant Russian
economic and political position in Southeast Asia. However, just
as it can no longer sustain military power in this area, Russia
apparently cannot sustain or pay its share of these major projects.
As a result it does not look like an attractive investment partner
for major energy projects and cannot push for them because it cannot
afford them in any case. While its other major export, weapons,
is sometimes attractive to Southeast Asian states, they do not compete
well with Western, especially US, systems (see Russia shoots to
rule Asian skies, July 20, 2002). And once India begins to produce
indigenously made Russian weapons, as is envisaged under recent
Indo-Russian agreements, and starts selling them to Southeast Asia,
those weapons will compete with Russia's and probably drive them
out of the market (see India, Russia: Friends in arms, April 13,
2002). As China too is increasingly competing for the Southeast
Asian arms market now dominated by Western firms, there does not
appear to be too much space for a major upsurge of interest in Russian
weapons that could allow Russia to regain a place in the regional
defense agenda due to real power rather than courtesy. Russia's
continuing failure to secure reliable footholds in critical areas
of Southeast Asia's interests bespeaks not just its ongoing failure
to formulate and implement a viable strategy and policy for this
area of the world. It also showcases the larger dangers of Russia's
economic-strategic marginalization in East Asia more generally.
Putin and other elites have frequently pointed out the danger of
losing de jure or de facto control of the Russian Far East and the
danger of falling too far behind in major economic competition for
influence and access there. They also have repeatedly warned that
the area is increasingly one of major security challenges and risks
to Russia. Therefore the continuing retreat of Russian power from
Southeast Asia is part of the larger process of marginalization
that these officials have warned against and a telling sign of the
ongoing failure of the Russian state to fulfill its policy responsibilities
and devise effective policies for Asia. Not surprisingly, since
nature abhors a vacuum, other major powers have begun to fill the
place vacated by Russia. The United States has substantially stepped
up security cooperation with Southeast Asian states against the
threat of indigenous Muslim terrorism and is clearly eyeing Cam
Ranh Bay as a port of call if not a permanent lodgment. Washington
has also begun security cooperation with India in the Indian Ocean.
This cooperation is also part of India's grand design or Look East
policy to augment its influence in Southeast Asia and curtail what
it perceives to be potential Chinese threats there. Both China and
Japan have signed major trade arrangements with Southeast Asia in
order to create free-trade agreements and they are furiously competing
with each other for preeminence in the regional economy. China has
also signed a major agreement with the Association of Southeast
Asian Nations (ASEAN) that in essence secured its position and claims
regarding the potentially rich and strategic Spratly Islands (see
The Spratlys pact: Beijing's olive branch, November 6, 2002). This
agreement virtually ensures that there will be no major controversy
over the islands for the foreseeable future, an outcome that basically
confirms China's previous land grabs there. All these moves testify
to the fact that Southeast Asia's potential importance as a strategic
area is again on the rise and that it will become the object of
sustained major power rivalry, though not necessarily of externally
supported or inspired violence. Russia, for the foreseeable future,
will have little or no role here and will be in essence a spectator
to those trends. It may be invited to participate in the annual
ASEAN Regional Forum out of courtesy, but unless it institutes major
changes in its politics and economics that presence will be one
of courtesy, not one due to its large regional presence. But this
spectator status threatens to become the situation in Northeast
Asia as well for Russia unless the requisite changes are made. Therefore
the recent announcements of reduced Russian presence in and around
Vietnam's energy programs as well as its withdrawal from Cam Ranh
Bay are events that have more than a regional significance. While
on the one hand they are merely the latest chapter in the epochal
retreat of Russian power from Asia, on the other hand there are
no signs that this retreat is over or of what it really portends.
(by Stephen Blank)
From http://www.atimes.com/ 01/21/2003
Anti-Terror Taskforce Agreed
for SE Asia
JAKARTA, Indonesia (CNN) -- Police forces across Southeast Asia
are to set up special anti-terrorist taskforces as part of intensified
regional efforts to combat terrorism and apprehend terrorist suspects.
The announcement, by Indonesian police chief General Da'i Bachtiar,
came at the end of a three-day workshop on terrorism in Jakarta,
sponsored by the Association of Southeast Asian Nations (ASEAN).
The plan was originally put forward by Indonesia, and comes in the
wake of last year's bombings on the Indonesian island of Bali. The
attacks killed at least 192 people, most of them young Australian
tourists, and brought Indonesia's lucrative tourism industry to
a standstill. The blast has been linked to Jemaah Islamiyah (JI),
a regional militant group linked to al Qaeda whose membership spreads
throughout Malaysia, Indonesia and Singapore and across Southeast
Asia. JI is regarded as the biggest terrorist threat by regional
governments. "Each Asean member country will have an anti-terrorist
taskforce," Bachtiar told reporters Wednesday. "In the
event of a terrorist attack, the affected country can request assistance
from other Asean countries," he said. Such assistance could
be in the form of, but not limited to, pursuing and apprehending
suspects, questioning witnesses, searching and obtaining evidence,
as well as evacuating and treating of victims. The taskforce will
be linked by liaison officers who will work together in developing
threat and risk assessment, planning responses, as allocating resources
and assistance, Bachtiar said. The taskforce is expected to be fully
operational by July. Indonesia has also proposed criminalizing acts
of terrorism and to make them extraditable offenses -- a plan that
is expected to feature high on the agenda of an Asean meeting on
trans-national crime in Hanoi in June. Several of those suspected
of plotting and carrying out the Bali attacks were Malaysian and
Singaporean nationals, investigators say. Legal complications have
prevented them from being extradited to Indonesia. However, Indonesian
authorities have been given access to interrogate the suspects in
their respective countries. To date, 30 people, including several
suspected key players in the Bali attack have been arrested.
From http://asia.cnn.com/ 01/22/2003
TOP¡ü
|
| CHINA:
New Insurance Rules Implemented from 2003
A new law on insurance and new rules on vehicle insurance took effect
the first day of 2003. With the new law, which will benefit insurance
companies, enhance regulation of insurance agencies and increase
the reputation of the insurance industry, property insurance companies
can sell accidental insurance policies. This is expected to enhance
competition in the short-term life insurance market. Some companies
said they will be actively involved in this field, with products
such as accidental aviation insurance policy. All insurance companies
will have more rights in drawing up insurance rates and can develop
distinctive products. Reinsurance will be greatly affected according
to the new law. The set reinsurance rate will be decreased five
percent year on year from the current 20 percent. Insurance for
vehicles is now market-oriented. The new regulation allows companies
to formulate rates according to risks of vehicles and drivers' safety
records. China also plans to reform accidental aviation insurance
products at the beginning of 2003. All the policies will be sold
by computer and customers can ask for refunds or change according
to flights.
From http://ce.cei.gov.cn/ 01/02/2003
New Regulation Issued
to Facilitate Enterprise Restructuring
China's Supreme People's Court (SPC) promulgated a new regulation
in Beijing on January 3, to correct and curb illegal activities
relating to enterprise restructuring and better protect creditors'
and employees' legitimate rights and interests. ???? According to
the regulation, effective Feb. 1 this year, civil parties involved
in disputes resulting from the restructuring of enterprises will
be able to file a civil suit in court. Such disputes may result
from the merger, sale or split-up of an enterprise, debt to equity
swaps, or the conversion of a state-owned enterprise into a corporation
or joint-stock company, the regulation says. With the deepening
of China's state-owned enterprise restructuring, new problems beyond
the scope of current laws and regulations are arising, SPC Vice-President
Li Guoguang said at a press conference this morning. Li said that
the new regulation, which covers all the problems that have emerged
thus far in China's enterprise restructuring, will guide the work
of Chinese courts in this regard and provide a strong legal guarantee
for the restructuring process. "This regulation will protect
the results of China's enterprise restructuring more effectively
and play a positive role in maintaining enterprise and social stability,"
he said. In addition, the protection of employees' interests is
one of the regulation's objectives, Li said. He asked China's courts
at various levels to pay special attention to the protection of
the legitimate rights and interests of employees in enterprises
to be restructured, adding that the courts should firmly stop any
illegal activities related to enterprise restructuring and tolerate
no actions detrimental to the interests of employees.
From http://ce.cei.gov.cn/ 01/03/2003
Hu Jintao Stresses Need
to Re-employ Laid-off Workers
Hu Jintao, general secretary of the Central Committee of the Communist
Party of China (CPC), Sunday stressed the need to further re-employment
projects for laid-off workers. Hu made the remark during his inspection
in the Inner Mongolia Autonomous Region. He said governments at
various levels must properly carry out the policies announced by
the central government to create a favorable environment for laid-off
workers and encourage them to develop their own career. The government
shall make more efforts to create jobs for laid-off workers based
on the concrete conditions of the local economy, he added. Administrations
are also required to provide essential training and social insurance
for laid-off workers, Hu said. Hu also noted that more efforts will
be directed to meet the needs of needy people and help them alleviate
poverty with their own efforts. He called on the less developed
areas in China to develop economy with their own characteristics,
which will not only make them flexible to the change of the market
but also well protect the environment. The central government and
more developed areas will further increase support for the less
developed areas in a bid to achieve a balanced regional economic
growth, Hu said.
From http://english.peopledaily.com.cn/ 01/06/2003
China to Speed Up Urbanization
The Chinese government is planning to speed up the urbanization
process in 2003 while considering an urban development model with
Chinese characteristics. Minister of Construction Wang Guangtao
told a national construction conference which ended on Tuesday that
China needed to effectively develop urbanization with Chinese characteristics
in order to resolve issues concerning agriculture, rural areas and
farmers. Urban construction had boomed in recent years, with large
cities matching those in developed countries, but living standards
in rural areas, especially in central and western areas, still lagged
far behind. Statistics show that the average net income of farmers
in 2002 was 2,470 yuan (298 US dollars), while the average disposable
income of urban residents exceeded 7,500 yuan (906 US dollars).
Wang said speeding up the urbanization process would boost urban
economies and produce more job opportunities for rural residents.
To this end, China must integrate urban development with new industries
to help readjust its economic structure and reduce the differences
between urban and rural areas, said the minister. In addition, all
cities must advance in harmony with their people, natural resources
and the environment. Besides infrastructure and environment construction,
all cities and towns in China must develop in a complementary way
for common prosperity. Wang said the urbanization in China would
increase the number of cities and urban populations, but also produce
vital changes in social and economic structures. China's urbanization
progressed rapidly in recent years, hitting 37.7 percent of the
population by the end of 2001, 7 percentage points over that of
1998. China has 662 cities and 20,358 towns, with an total urban
population of 481 million.
From http://english.peopledaily.com.cn/ 01/08/2003
Retired Aide to Mao Calls
for Progress to Democracy
BEIJING¡ª A former secretary to Mao has published a strikingly forthright
call for change in a Beijing magazine this month, the latest sign
of growing demands for open discussion of political reform. The
retired official, Li Rui, 85, warned in a speech published in the
magazine China Chronicle that the country must embrace democratic
politics and free speech to avoid stagnation and possible collapse.
"Only with democratization can there be modernization,"
he said. "This has been a global tide since the 20th century,
especially the Second World War, and those who join it will prosper
while those who resist will perish." Mr. Li, a Communist Party
member since 1937, is a longtime advocate of faster political liberalization.
He has been held at arm's length by party leaders, but his status
as a confidant of Mao and a pugnacious critic of conservatives inside
the party have given him a degree of protection from censorship,
and a large readership. China Chronicle is a popular history magazine
published by a cultural research institute run by retired officials,
and is widely read in the party. Mr. Li's call to action comes at
a sensitive time when many officials and academics here are waiting
to see if China's new leaders, installed at a party congress in
November, will consider relaxing one-party rule. Mr. Li made his
comments in a speech to a group of delegates at the congress. He
warned that China's stability could be imperiled by delaying political
change. In recent official announcements, Communist Party leaders
have said the party must strengthen internal debate and make selection
of officials more competitive. But they have not shown any signs
of contemplating wider changes. Mr. Li challenged them to lead the
way with major reforms starting at the top. He proposed formally
limiting the party's leaders to a maximum tenure of 10 years. He
also proposed wide-ranging measures to limit the party's powers,
begin introducing popular election of government officials and protect
freedom of speech and independent rule of law. (by Chris Buckley)
From http://www.nytimes.com/ 01/08/2003
China Drafts Venture
Capital Law
China is drafting a law that will let overseas venture capitalists
raise money locally, according to Bloomberg News. The bill, which
should pass this year, will allow overseas venture capital companies
to raise money from Chinese companies, trusts, insurers, pension
funds and the rich. China's National Social Security Fund has 100
billion yuan (US$12 billion), most of which must be invested in
treasury bonds and bank deposits.
From http://ce.cei.gov.cn/ 01/10/2003
WTO: Draft Law to Balance
Protection and Compliance
A senior trade official said pending amendments to the nation's
nine-year-old Foreign Trade Law will aim to create a balance between
better protection of domestic enterprise and compliance with World
Trade Organization (WTO) rules. The current Foreign Trade Law was
enacted in 1994, when the Uruguay round had not been completed.
"The nation's foreign trade has seen great leaps forward in
the past nine years and the government's style of managing foreign
trade has changed,'' said Zhang Yuqing, director of the Department
of Treaty and Law of the Ministry of Foreign Trade and Economic
Co-operation, in an exclusive interview with China Daily. In the
post-WTO era, the functions of the government have shifted from
managing the specific operation issues of enterprise to ensuring
fair and ordered competition and taking measures to protect domestic
enterprise when they face discrimination or injury in foreign trade,
said Zhang. (Meng Yang) The new foreign trade law will fill the
gaps of the current provisions so that domestic enterprise find
it easier to protect their interests and rights, he said. For example,
the new legislation is expected to explain the implications of trade
promotion and specify how to implement the mechanism. It will clarify
what constitutes discrimination against Chinese exports and what
measures can be taken in cases of such discrimination. Current legislation
only provides some general principles of trade promotion. "Under
the new law, Chinese enterprise will be able to conduct investigations,
turn to arbitration and even resort to the WTO to solve any trade
barrier or discrimination which goes against WTO principles,'' he
said. Zhang said the new law would also help the nation's exports
and service trade sectors to open new overseas markets. The intellectual
property rights and some new mechanisms, such as tariff quotas and
State trade, should also be incorporated into the new law. Chinese
experts on foreign trade say the government should make full use
of WTO rules which reflect national interests, such as clauses on
general exception and security exception, to better protect domestic
enterprises, said a lecturer with the University of International
Business and Economics, who asked to remain anonymous. The draft
amendment is expected to be submitted to legislators this year after
gaining approval from the State Council, said Zhang. Under Legislative
Procedure Law, the State Council is eligible to submit draft legislation
to the top legislative body.
From http://www.chinadaily.com.cn/ 01/13/2003
China Blocks Internet
'Blog' Site
BEIJING, China (Reuters) -- China has blocked an Internet site
used by more than one million people worldwide to post on-line diaries,
known as blogs, users and its developer said on Wednesday. The U.S.-based
"blogspot" Web site, where people write about their daily
lives up to several times a day, has been inaccessible through Chinese
networks for a week, they said. "This is not due to a technical
problem," said Jason Shellen, business development director
at Silicon Valley-based Pyra Laboratories which runs the site blogspot.com.
He said users received no explanation, leaving the young Internet
startup's staff of six to field queries from frustrated "bloggers"
in China who could update but not read diverse musings ranging from
dating to pop music to teenage angst. About 50 million people in
China surf the Internet but the developer of "blogspot"
could not say how many of them place or read postings on the Web
site. Authorities openly control Internet and media content in China.
Internet police, who number nearly 40,000 in Beijing alone, block
several foreign news sites and often force Chinese Web pages to
delete content judged objectionable. An official at the Ministry
of Information Industry, the telecoms and Internet regulator, said
the block could be due to material deemed pornographic or detrimental
to government interests. "The Chinese government would never
tell Western sites what to post or what not to. They have freedom
of expression," he said. "So it will just take away access."
Ben Edelman, a fellow at the Berkman Center for Internet and Society
at Harvard Law School, said the Web police barred the site by blocking
its Internet-protocol address, analogous to cutting a phone line.
Now, some bloggers in China are using their tech-savvy to blast
the government. A 20-year-old college student in the southern city
of Hangzhou who calls herself "Leylop" on the Internet
said the block would only foment debate and show the Chinese government
in a bad light. "I was pissed off," she said in English.
"Blockage only causes more dissent. The bloggers who have something
to say won't be deterred by the blockage at all, we'll find other
ways." Pyra's Shellen said the start-up was starting to approach
Chinese officials to resolve the issue and might seek advice from
leading search engine Google, which suffered a similar block in
September. "We want to proceed with cool heads. We are not
so upset that we want to rattle any cages," he said. China
blocked access to Google, which has soared in popularity due to
its ability to run searches in Chinese, in a crackdown on Web content
ahead of a watershed leadership handover in November. The ban was
lifted about 10 days later after Google protested. In March 2002,
about 130 major Web portals, including Yahoo Inc, signed a self-censorship
pledge that drew fire from critics who said the sites were sacrificing
freedom of expression for the sake of business. Chinese portals
such as Sohu.com have devised a thorough list of terms -- including
President Jiang Zemin, the Falun Gong spiritual group and Tiananmen
Square protests ¨C which are automatically filtered from the site.
From http://asia.cnn.com/ 01/15/2003
China Issues Rules on
Foreign Debt Management
A new interim regulation will be effective March 1 for the management
of China's foreign debt.
Jointly issued by the State Development Planning Commission (SDPC),
the Ministry of Finance, and the State Administration of Foreign
Exchange, the document provides guidelines relating to the use,
repayment and supervision of foreign debt. It also provides definitions
and classifications. As a major form of foreign capital utilization,
foreign loans have played an active role in spurring the development
of China's economy. The security of foreign debt is crucial to the
sound functioning of the national economy and to the stability of
the financial system. An official with the SDPC said the regulation
will help to improve the relevant legal framework, standardize the
management of the country's foreign loans and reduce foreign debt-related
risks.
From http://ce.cei.gov.cn/ 01/15/2003
More Laws Supporting Agricultural
Development
China's top legislator Li Peng said Wednesday that China adopted
and amended 11 additional laws relating to agriculture and rural
areas, creating better conditions for the country to develop the
rural economy and protect farmers' legitimate interests in the past
five years. Li, chairman of the Standing Committee of the National
People's Congress, said that the additional laws have brought the
total number of laws on agriculture and rural areas to 19. These
laws have laid a solid foundation for the country to revitalize
agriculture and the rural economy through the rule of law, said
the chairman. He made the remarks during a panel discussion on two
amended laws, namely, the agricultural and grasslands law and the
newly-adopted law on rural land contracts. The amendments to the
agricultural law, which will take effect on March 1, 2003, incorporate
new regulations to accelerate the transfer of surplus rural labor,
ensure the safety of farm produce and advance agricultural science
and technological development. The grasslands law amendments tighten
supervision of tourism ventures in grassland areas and forbid the
use of strongly toxic pesticides in such locations. The top legislator
called on officials at all levels to improve their awareness of
the rule of law while dealing with issues concerning agriculture
and rural areas. He called on the entire Chinese community to pay
more attention to the country's agriculture and farmers and to increase
their support for agricultural development.
From http://ce.cei.gov.cn/ 01/16/2003
China to Step Up Enforcement
of Industrial Safety Law
China will step up enforcement of industrial safety law and increase
international cooperation to meet its 2003 goal of reducing the
number of major industrial accidents by 10% and reducing the number
of fatalities in the coal mining and transportation industries.
Wang Xianzheng, director of the State Administration of Work Safety
(SAWS), made the remarks Thursday at a national conference on production
safety. Wang said the SAWS plans to establish nearly 30 auxiliary
rules and regulations and eight departmental regulations relating
to the newly-enacted law on production safety at the earliest possible
date. It will also set up a system of national standards on workplace
safety, consisting of 38 regulations on blast safety and powder
and dust explosion prevention. Wang also stressed the importance
of law enforcement, adding that any breach of the law should be
reported immediately to the relevant administrative departments
or local governments. In the area of international exchange and
cooperation, Wang said China is keen to cooperate with the International
Labor Organization (ILO), the International Social Security Association,
the European Union and the Asian Development Bank in the field of
production safety. China intends to study the feasibility of becoming
a signatory to the ILO convention on occupational safety and health,
and plans to cooperate with the United States, Germany, Japan and
other nations in industrial safety training and management projects.
From http://ce.cei.gov.cn/ 01/17/2003
China's Securities Watchdog
Vows to Brace Market Regulations
China's securities regulator will "spare no efforts"
in continuing its reform campaign to embrace its "enormously
bright" capital markets future, a senior official told a global
corporate governance forum in Shanghai yesterday. "We are committed
to being a pro-active regulator in fostering corporate governance,
in enforcing our rules, in safeguarding the integrity of our markets,
and in championing the rights of our investors," said Laura
Cha, vice-chairman of China Securities Regulatory Commission (CSRC),
the market watchdog. Over the past several years, numerous measures
have been taken to improve the corporate governance standards of
listed companies, including independent directors, comprehensive
information disclosure requirement and joint inspection of all listed
companies by CSRC and the State Economic and Trade Commission. Legal
and accounting reform is under way, and includes strengthened enforcement
measures. "We have put in place a regulatory framework which
takes into consideration features and problems unique to our market
and our economy," Cha said. A great deal remains to be done,
however, as China's stock market is still stained by scandals and
irregularities. "Indeed, we would readily admit that ours is
an emerging market and that we have our share of the weaknesses
of an emerging market," Cha said. But she highlighted the fact
that given the relatively short history of the market and regulator,
China's capital market "has actually done remarkably well."
Cha pointed out that it is not enough to have a plethora of rules
and regulations. Consistent, fair and transparent enforcement also
counts. Improving the credibility and standard of intermediaries
and professionals, as well as investor education are of the utmost
importance to the capital market, she added.
From China Daily 01/22/2003
FM Spokeswoman on China's
Anti-Terrorism Stance
Appraising positively the United Nations Security Council Ministerial
Meeting on Counter-Terrorism that opened Monday in New York, Chinese
Foreign Ministry spokeswoman Zhang Qiyue Tuesday reiterated China's
stance on anti-terrorism. Zhang said the Chinese government held
that maintaining peace and security for humankind was the core of
anti-terrorism while universal development and common prosperity
was the basis. Closer communication and integration among societies
constituted the guarantee of anti-terrorism, to which stronger international
cooperation was the key factor, said Zhang, noting that Foreign
Minister Tang Jiaxuan's address to the meeting on Monday elucidated
the Chinese government's principled stance and positions. There
are still frequent terrorist attacks in the world despite marked
progress scored in the international anti-terror campaign after
the September 11 incident in 2001, Zhang noted. International anti-terror
cooperation was the common aspiration and urgent demand of the global
community and China would consistently support the United Nations
playing a leading role in fighting terror, she said. The foreign
ministers meeting at the UN Security Council was highly significant,
she added, as it not only reviewed the anti-terror campaign so far
but charted the direction guiding the future international cooperation.
Chinese Foreign Minister Tang Jiaxuan met with UN General Secretary
Kofi Annan during the meeting and they conferred on how to strengthen
the UN's role in anti-terror arenas and to resolve regional conflicts,
Zhang said. During the meeting, Tang also met with the US Secretary
of State Colin Powell, Russian Foreign Minister Igor Ivanov, German
Deputy Chancellor and Foreign Minister Joseph Fischer, and Pakistan
Foreign Minister Khurshid Mahmood Kasuri, said the spokes woman.
From http://www.china.org.cn/ 01/22/2003
Media Sector Opened Wider
Publication management rules will be adjusted to allow more foreign
and private capital into the book, newspaper and magazine distribution
market, an official from the State Press and Publication Administration
(SPPA) told China Daily Wednesday. The new rules will remove the
current restriction whereby only State-owned enterprises can enter
China's publications wholesale market, said Liu Bo, director of
the administration's distribution department. "Overseas capital
and privately owned businesses can both enter wholesale publications
distribution in the form of joint ventures,'' he said. But State
capital should hold a controlling stake in such joint ventures.
Liu said the rules are being revised in line with the promises China
made when joining the World Trade Organization (WTO) in December
2001. He said China will accept and handle applications from overseas
investors to invest in the book, newspaper and magazine distribution
sector once the rules go into effect. The regulations could be published
as early as the first quarter of this year. More than 60 overseas
companies have set up offices on the Chinese mainland with the intention
of investing in the publications distribution business. They are
likely to be the first to have their applications approved, according
to some industry insiders. But China will allow no overseas investment
in the editing sector, and a few of the 140 WTO members have pledged
only limited access to overseas investors in their respective editing
sectors, said Liu Bingjie, deputy director of the SPPA. In keeping
with its WTO commitments, China should open its entire book, newspaper
and magazine wholesale and retail sector to overseas investment
during its third year of WTO membership. It should also lift all
restrictions limiting the number of overseas- funded distribution
companies, geographical locations and share-holding rights. Deputy
Director Liu said the books, newspapers and magazines involved will
primarily be those published on the Chinese mainland. Last year,
China opened up the retail business in Beijing, Shanghai and Tianjin
municipalities, Guangzhou in South China's Guangdong Province, Dalian
in Northeast China's Liaoning Province, Qingdao in East China's
Shandong Province and the country's five special economic zones
-- Hainan, Shantou, Shenzhen, Xiamen and Zhuhai. This year, all
mainland provincial capitals, together with Chongqing Municipality
and Ningbo in East China's Zhejiang Province, will allow foreign
capital into their retail markets. Although State capital will no
longer be the sole player in the publications distribution market,
senior managers of State-owned distribution companies have expressed
confidence they can face the challenges. "Despite the protection
lost, the change in the distribution market will actually lift the
pressure put on us by readers, who are demanding more and more books,''
Ha Jiuru, president and general manager of the Shanghai Xinhua Distribution
Group, told China Daily. His group is one of the top distribution
groups in the country. He said competition for market share by non-State
capital should encourage existing players to develop into stronger
firms rather than going on the defensive. "We will not be limited
to wholesale and retail business. There is much more space in the
distribution business for State-owned groups to get established
and developed,'' he said. The Shanghai Xinhua Distribution Group
established a publication trade centre late last year. Ha said this
was an attempt to make a breakthrough in the traditional distribution
business. The centre is composed of a hall displaying new books,
an online display and trade platform and a large bookstore. Ha said
the centre lets buyers and sellers do both spot trading and forward
business, which is new in China's current distribution market.
From http://www1.chinadaily.com.cn/ 01/23/2003
JAPAN: Okuda Offers Economic
Solution: Substantially Raise Sales Tax
Hiroshi Okuda, Chairman of the Japan Business Federation (Nippon
Keidanren), thinks he has a cure for the sick economy, but consumers
aren't likely to enjoy his bitter medicine. Okuda's remedy: Substantially
raise the consumption tax and use the revenues to sustain the social
security system. "One reason why Japan's economy has fallen
(for over a decade) is that we haven't built a (sustainable) social
security system (to cope with a rapidly aging society)," Okuda
said in a yearend interview with reporters. "A proper system
could erase public concerns over the future and consequently stimulate
consumer spending." Although Japan presently has over 3 million
people out of work, a labor shortage has been forecast. The National
Institute of Population and Social Security Research has estimated
that the nation's working population will decrease to 62.6 million
people in 2025 after hitting a peak of 68.7 million in 2005. The
dwindling number of workers will thus face the burden of mounting
social security spending on pensions and medical services for the
elderly. Raising the consumption tax will spread the burden across
a broader spectrum of the public, Okuda figured. Okuda, who is also
chairman of Toyota Motor Corp., did not specify how much the tax
should be hiked. But in a recently released grand vision of an ideal
socioeconomic system leading up to 2025, Nippon Keidanren proposed
hiking the tax by 1 percentage point every year beginning in fiscal
2004 until it reaches 16 percent in fiscal 2014. The proposal also
says that public spending on social welfare programs should be concurrently
reduced to establish a sustainable system. "If the consumption
tax is raised drastically at once, it could snuff out consumer spending,"
Okuda said. "So it should be raised gradually, and the rate
should vary depending on what is taxed." For instance, the
tax on daily necessities, including food and clothing, could remain
low, while luxury goods could be taxed higher, he said. Another
way to maintain social security and prevent a labor shortage would
be to accept more foreigners into the workforce, Okuda said. "We
will still face a labor shortage even if more female and elderly
Japanese join the workforce, so we would need to employ more foreigners,"
he said, noting that foreigners who can contribute to scientific
advancement should be encouraged to immigrate to Japan to stimulate
the nation's intellectual fields. Despite the oft-repeated forecasts
of a labor shortage, however, the nation currently has a glut of
workers. Corporations are accelerating restructuring efforts amid
the protracted economic slump, forcing an increasing number of people
out of jobs. The unemployment rate came to 5.3 percent in November,
with 3.38 million people left idle. Okuda said that in the short
term the government must spread a safety net to support unemployed
people and make more efforts to create jobs. To this end, he said
Nippon Keidanren will try to place more pressure on politicians.
This year, Nippon Keidanren will also craft corporate political
donation guidelines based on its assessment of each political party's
policies and their results, he said. One of Nippon Keidanren's predecessor
organizations, the Japan Federation of Economic Organizations (Keidanren),
exerted strong influence over politics, coordinating donations from
member firms and associations and channeling them mainly to the
ruling Liberal Democratic Party. However, Keidanren stopped the
practice in 1994 -- a year after the LDP left the government's helm
for the first time in 38 years. Observers say the business circle's
leverage over politicians has since weakened. Nippon Keidanren was
created last May by the merger of Keidanren and the Japan Federation
of Employers' Associations (Nikkeiren), a business lobby dealing
with labor-management issues. "We will not force our members
to make political donations (as Keidanren used to do)," Okuda
said. "But if we display a positive attitude (toward donations
by making the guidelines), it would encourage some companies (to
donate)." On economic prospects for 2003, Okuda predicted that
Japan can achieve 1 percent annual economic growth if international
events such as a U.S.-led war against Iraq or a major terrorist
incident do not take place. "I think (this year) will be uncertain,
as the economy is affected by international affairs," he speculated,
adding that at any rate, to boost the domestic economy, industries
must create new technologies and attractive products to stimulate
consumerism. The government is now stepping up efforts to counter
deflation and accelerate bad-loan disposals through a comprehensive
economic package, including the creation of an official industrial-revival
and -cooperation body. Okuda said Nippon Keidanren will work with
the government to resolve such problems by providing human resources
to the planned government entity, which will be established this
spring to purchase bad loans to problematic but viable companies.
He also pointed out that property and stock dealers should be given
tax incentives in order to boost the liquidity, and thus the price,
of assets. Okuda also said the public and private sectors should
work to create a single free-trade zone in Asia, creating a major
regional market that can match those of the United States and Europe.
"Japan would (in the process) be able to prosper together with
rapidly growing economies like China and Vietnam," he said.
"To become a leader in the region, (Japan) must also make its
society more trustworthy, and the private sector can contribute
by engaging in further dialogue in Asia.¡± (by Akemi Nakamura)
From http://www.japantimes.co.jp/ 01/01/2003
Koizumi Vows to Realize
Reforms in 2003
Prime Minister Junichiro Koizumi marked the New Year on Wednesday
pledging to put Japan's economy back on track by speeding up the
disposal of bad loans held by the nation's commercial banks. "I
have consistently followed a policy of structural reforms,"
Koizumi said in a New Year's statement. "This year, I will
try to recognize a reform track by accelerating the disposal of
bad loans, reviving industries and conquering deflation." "Japan
has a great deal of potential," Koizumi said. "Carrying
out reforms is exactly the way to realize Japan's potentialities."
"Harsh circumstances continue," he said. "But with
confidence and hope, I am resolved to exert all-out efforts to carry
out reforms." Koizumi also said Japan will deploy active diplomacy
to contribute to world peace and stability. On relations with North
Korea, Koizumi said, "Keeping the position of the abductees
and their families in mind, I will try to support and hunt for the
truth."
From http://www.japantoday.com/ 01/02/2003
Russia and Japan Sign
Accord to Seek End to Dispute over Islands
President Vladimir V. Putin of Russia and Prime Minister Junichiro
Koizumi of Japan signed an agreement today calling for an accelerated
effort to resolve the long-standing territorial dispute over the
Kurile Islands that has left Russia and Japan technically in a state
of war for six decades. In a meeting at the Kremlin that was overshadowed
by North Korea's decision to withdraw from the Nuclear Nonproliferation
Treaty, the leaders pledged to pursue deeper economic and political
ties even as they try to resolve a dispute that has bedeviled governments
of both countries since the Soviet Union seized the islands at the
end of World War II. Emphasizing their areas of agreement, Mr. Putin
and Mr. Koizumi went to great lengths to express support for each
other's economic and foreign policy goals. In the document they
signed, for example, Japan reiterated its support of Russia's efforts
to join the World Trade Organization, while Russia pledged to support
Japan's efforts to become a permanent member of the United Nations
Security Council. The two also joined in the chorus of world leaders
criticizing North Korea's announcement today and jointly reiterated
their calls on Iraq to comply with international inspections of
its weapons programs. Mr. Putin hailed today's agreement which was
described as an "action plan," not a formal treaty as
a historic document in Russian and Japanese relations. "We
have not had documents of this type with either Japan or any other
country," he said after their meeting, held in the Great Kremlin
Palace, adding that it would deepen relations on virtually every
level. For all the accord, however, the dispute over the Kuriles
four rugged islands northeast of the Japanese island of Hokkaido
remains a substantial obstacle to improved ties, one reinforced
by nationalistic sentiments in both countries. Even the name of
the islands the Southern Kuriles to the Russians and the Northern
Territories to the Japanese is so sensitive that neither was used
in today's agreement. Nor did the agreement specify how the two
countries would resolve the territorial dispute, which has prevented
the flourishing of diplomatic and economic relations. But enticed
by the prospect of expanded trade and development, including a pipeline
across Siberia to the Sea of Japan, they agreed to do so as quickly
as possible. "In spite of the fact that this issue is highly
complex, we will find a fair solution if we take the interests of
both countries into account," Mr. Putin said. On the eve of
his four-day visit to Russia, Mr. Koizumi said it was "highly
regrettable" that two members of the Group of Eight industrial
nations did not have a peace treaty or an agreed-upon border. Today
he called it "the sorest unresolved problem" between the
two countries. With the agreement today, they essentially agreed
to expand economic ties as negotiators separately wrangle over the
terms of a peace treaty. Before the meeting, Japanese officials
expressed hope that the two sides would announce an agreement in
which Japan would support construction of a $5 billion, 2,500-mile
pipeline between Angarsk, near Lake Baikal, to ports in the Far
East, opening a major outlet for Russian oil to Japan that could
reduce its dependency on oil from the Middle East. Russia, however,
is considering an alternative pipeline that would pass through China.
Today's document left that decision unresolved, while pledging generally
that Russia and Japan would cooperate in exploiting energy resources
and developing pipelines in Siberia and the Far East. (by Steven
Lee Myers)
From http://www.nytimes.com/ 01/11/2003
State Eyes Cutting Tax
Breaks for Richer Pensioners
The Finance Ministry might reduce tax breaks for pensioners in response
to public criticism that the upper-class elderly are unduly benefiting,
ministry sources said Sunday. The government's Tax Commission will
study the proposal in discussions slated to begin Friday. The Finance
Ministry is aiming to have the proposal reflected in the fiscal
2004 tax reform plan, the sources said. Under the current national
and corporate employee pension systems, recipients aged 65 or older
are eligible for a minimum deduction of 1.4 million yen from their
annual taxable income, regardless of their income levels. The tax
breaks have received criticism not only from younger generations
but from some older people who say uniform deductions are unfair
to low-income pensioners, the ministry said. The proposed reduction
of the breaks, introduced in 1988, will thus target pensioners in
high-income tax brackets or those with large assets, the sources
said. In addition to the pension tax breaks, seniors are currently
entitled to a deduction of 500,000 yen if their annual income is
10 million yen or less. They can deduct 480,000 yen if they are
dependents. The ministry will also review whether these breaks are
actually necessary while watching moves by the health ministry to
reform the pension system, the sources said. The Finance Ministry
will have to determine such issues as who should be eligible for
reduced tax breaks.
From http://www.japantimes.co.jp/ 01/13/2003
Carves Out New Military
Role
Speculation is rife about the direction of Japan's foreign policy,
given recent world developments, especially the US anti-terrorism
campaign. Seizing on the fear created by the September 11 terrorist
attacks in the United States, Japan is using its military to assume
a higher international profile. In his New Year's Day statement,
Japanese Prime Minister Junichiro Koizumi said Japan will engage
in active diplomacy by taking the "initiative" on the
basis of "international co-operation," along with "national
interest." It is not difficult to find a policy shift under
way when we examine a spate of recent developments in Japan's foreign
policy. Koizumi's remarks echoed a foreign policy proposal presented
by the Task Force on Foreign Relations for the Japanese Prime Minister
in November. The team was established in September 2001 with Special
Adviser to the Cabinet Secretariat Yukio Okamoto serving as chairman
with the objective of advising the prime minister on foreign relations.
The report, titled "Basic Strategies for Japan's Foreign Policy
in the 21st Century: New Era, New Vision, New Diplomacy," says
Japan should shift direction and set up its own "axis"
around which to form policy in the face of major changes worldwide.
Japan should be more assertive in protecting its national interests
and rely less on its traditional style of international diplomacy.
The report identifies globalization, developments in military affairs,
and China's economic growth as major challenges facing Japan. The
team recommends that existing policies regarding individual countries
and regions be reviewed. While acknowledging relations with the
United States continue to be paramount, particularly the bilateral
security alliance, Japan should not simply acquiesce to Washington,
but also be able to form its own stance and debate issues before
forming policy, the report says. China is quite high on Japan's
foreign policy agenda. The report describes the relationship between
the two countries as the one that interweaves "co-operation
and coexistence" with "competition and friction."
The report warns that China's rapid economic growth will have a
significant impact on Japan's diplomatic affairs. It also warns
of a "China threat" by finger-pointing at China's military
build-up. Japan has spent a total of 13.7 billion yen (US$116.4
million) on its missile defence project alone during the research
stage and has earmarked 1.9 billion yen (US$16.1 million) for the
project in fiscal year of 2003. And the shift in Japan's defensive
foreign policy goes beyond a |
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Year Holiday
