Monday, February 28, 2011

In Huawei's Bid to Crack Market, U.S. Sees a Threat From China Inc.

By JOHN BUSSEY

HUAWEI
Sen. Jon Kyl and other U.S. lawmakers have likened Huawei to a dangerous arm of communist China intent on snatching U.S. secrets.
The Chinese opera starring Huawei Technologies Co. and Washington regulators hit another high note Friday when a spurned Huawei issued a public plea for understanding, fairness—and access to the rich U.S. telecom market.
There are two lessons to draw from all the yodeling:
  • First, this drama isn't just about the Chinese suitor Huawei. It's about China Inc. and cybersecurity in the U.S. Because of that, Huawei may not be getting into the U.S. market in a big way anytime soon.
  • And second, Huawei—one of the biggest suppliers of telecom equipment in the world—may be the least of America's problems when it comes to thwarting aspiring cyberspies.
Huawei's latest travails stem from a tiny deal the company struck in California.
It bought some patents and hired some employees from an outfit called 3Leaf Systems that did work in cloud computing.
The Pentagon demanded Huawei retroactively seek approval of the transaction from a secretive panel called CFIUS, which reviews foreign investment that might threaten national security.
Huawei cried foul and said the deal didn't merit review because it wasn't an outright acquisition.
Sens. Jim Webb and Jon Kyl and other U.S. lawmakers fired back, likening Huawei to a dangerous arm of communist China intent on snatching U.S. secrets.
This month, CFIUS essentially ordered Huawei to unwind the purchase.
As the dust settled, a Chinese government spokesman condemned the decision and, in an ironic footnote, grumbled that the U.S. should be "more transparent" in how it treats foreign investors.
Then on Friday, Huawei publicly challenged the U.S. to investigate the company and clear the air.
"Huawei is Huawei," says Bill Plummer, the company's spokesman.
"It's a multinational company. It isn't China. It shouldn't be held hostage to the tense relationship between the two governments."
Maybe so, but a range of intelligence agencies that sit on CFIUS, or the Committee on Foreign Investment in the U.S., appear to feel differently.
Huawei's plea "seems disingenuous," says an individual familiar with the government's thinking.
"Why come out with that offer publicly? We've been asking for transparency" from the company for years.
The problem is that Huawei lives in a certain context.
Its founder served in the People's Liberation Army.
The company has prospered greatly in its home market and has grown almost overnight into a global giant. And while Huawei insists it is entirely independent of the Chinese government, the company thrives in an authoritarian country where success on so large a scale is usually carefully observed, and carefully prescribed. There are few subjects of greater interest to Beijing than telecommunications and technology—and creating national champions in both.
Huawei to many people in Washington is a proxy for China, a kind of cyber Fu Manchu.
They think the company's equipment contains bugs that spy on American industrial secrets, shut down communications during a conflict, and make networks easier to hack.
CFIUS proceedings are secret, and a spokeswoman declined to comment on the Huawei case.
But actions speak loudly.
The committee, which includes the departments of Homeland Security and Defense, has blocked Huawei's access to the U.S. repeatedly, including Huawei's bid to buy electronics maker 3Com Corp. in 2008, its effort to upgrade Sprint Nextel Corp.'s network in 2010, and now the 3Leaf deal.
Noting the importance of context, a former intelligence official says: "You have senior officials in Washington going to work every week and their assistants telling them, 'Sir, the Chinese have hacked into your system and are reading your email again. We're trying to get them out. Don't use your computer.' China is contemptuous when we complain about this, and that probably deepens the reaction toward Huawei," he says.
Even Washington knows that at the end of the day Huawei is but a blip on a much larger radar screen of worry.
Virtually every technology company is plugged into a global supply chain and gets its products from multiple sources.
A given piece of consumer or industrial electronics can cross borders dozens of times as it is designed, coded and assembled before landing in the U.S.
The rogue might be anywhere: in China, or in the piece of equipment stamped INDIA that was preassembled in China.
"The cyber side is where the real national-security issues are growing exponentially, the vulnerabilities created by the global supply chain," says Nova Daly, a consultant with Wiley Rein in Washington who previously managed the CFIUS program at the Treasury Department.
"We need clear cyberpolicy from the administration and Congress."
That effort is under way, there are some early steps to better vet the source of key electronics distributed in the U.S.
Scrubbing software and hardware before it crosses the border is a tricky business.
Experts say it's almost impossible to find every bug.
So trusting the source of origin becomes all the more important.
And that's the hill Huawei must climb.

Libya highlights China’s lack of strategic reserves

By Javier Blas

Beyond the current price spike, Libya’s oil crisis will have far more long-term repercussions in China and India.
The supply disruption is a real wake up call for Beijing and New Delhi to speed up the construction of strategic reserves.
The result? Higher oil prices as both countries import extra oil for their reserves.
China is today the world’s second-largest oil importer, only behind the US.
India is the world’s fifth largest, ahead of countries such as South Korea, France and the UK.
But the pair lack a strategic petroleum reserve that can be tapped during a supply crisis similar in size and scope to the ones held by Western countries.
Neither China nor India have had experience dealing with a geopolitical supply disruption.
When the last major disruption occurred – in late 2002 and early 2003 during the oil strike in Venezuela – both were still relatively smaller importers.
Take China: oil imports as a share of the country’s total oil demand has grown to 54 per cent in 2010, up from 30 per cent in 2002, according to estimates by Deutsche Bank.
And China was a net oil exporter during the 1990-91 Gulf war following the invasion of Kuwait by Iraq.
India is even more exposed as the country imports nearly 80 per cent of its oil consumption.
Soozhana Choi, an oil analyst with Deutsche Bank in Singapore who has just published a report on the subject – “China’s SPR ambitions” – says that the recent events in the Middle East and north Africa “only serve to emphasise the importance of energy security and strategic oil reserves as a policy tool.”
The build-up of China and India’s strategic reserves is likely to add extra demand in the years to come as both countries fill up tanks and underground caverns with millions of barrels of crude oil.
Western countries’ stockpiling did the same in the late 1970s and early 1980s, contributing to push up consumption and prices.
The members of the International Energy Agency, the rich countries’ oil watchdog, hold the equivalent to 90 days of oil imports to cushion themselves against supply disruptions.
China’s strategic oil reserve plan calls for a depot of 500m barrels, enough for about 100 days of oil imports – although by the time the storage is finished in 2020 it will probably cover only 75-85 days of imports.
So far the country has filled a little more than 110m barrels a day under the first phase of the three of the country’s reserve.
Another 40m barrels could be added this year and in 2012 under the second phase.
The need for extra oil for the reserve could explain the strength of Chinese oil imports.
India is much behind.
The country is targeting a reserve of about 40m barrels – equal to little more than two weeks of imports – by the end of 2012.
So far, it has only filled depots holding 9.8m barrels of crude.
If India were to create a reserve similar in size as a share of oil imports to the one in China, the US, Japan or Europe, the country would need at least 200m-250m barrels of oil.
The high cost of the reserves is likely to slow down India’s plans, but I doubt it will affect China’s plans significantly.
As the events in the Middle East and north Africa highlight, the risk of a major supply oil disruption is there. As such, the oil market is likely to see more demand than expected over the next 10-15 years.

China's threat: India steps up defence spending

By Sanjeev Miglani
NEW DELHI, Feb 28 -- India increased annual defence spending by about 11.6 percent on Monday, aiming to overhaul the military to counter the rapidly growing capabilities of giant neighbour China.
The hefty increase suggests the government plans to move ahead with some of a slew of planned defence acquisitions, analysts said, including a $10.5 billion fighter jet contract, one of the world's largest on offer.
India, among a host of countries wary of China's economic and military heft, is also eyeing surveillance helicopters, transport aircraft and submarines to beef up defences in the air as well as in the Indian Ocean.
Finance Minister Pranab Mukherjee, presenting the 2011-2012 budget to parliament, set the military budget at just over 1.64 trillion rupees ($36.28 billion), up from last year's 1.47 trillion rupees.
Last year the increase was about 4 percent.
"China is the real long-term challenge on the strategic horizon and India's security planning is geared toward it," said retired brigadier Gurmeet Kanwal who heads the government-funded Centre for Land Warfare Studies.
China, which considers the U.S. military as its main rival, set its defence spending at $78 billion last year.
It is expected to announce a defence budget for 2011 later this week ahead of an annual session of parliament.
The core U.S. defense budget -- not including war funding -- was $530 billion in 2010.
More than 40 percent of the Indian defence budget for 2011 will be spent on capital expenditure, Mukherjee said, while the rest will go toward maintaining one of the world's largest standing armed forces.
"Needless to say, any further requirement for the country's defence would be met," he said seeking to assuage concerns that the rise in spending was short of the military's expectations.
Old rival and neighbour Pakistan, which like India, also has nuclear weapons, is also a factor in India's defence planning.

DEALS
Indian officials expect to conclude negotiations to buy 126 combat aircraft by the end of the current fiscal year, the country's largest-ever defence order.
Saab's JAS-39 Gripen is competing with Boeing's F/A-18 Super Hornet, Dassault's Rafale, Lockheed's F-16 and Russia's MiG-35 to win the fighter contract which Indian officials said can eventually go up to 200 aircraft.
Kanwal said the defence allocation was enough to proceed with the fighter aircraft deal, although it may not leave much room for other arms imports.
"In the first year there is a signing amount you have to pay which shouldn't be a problem," he said.
India, which traditionally has had an edge over China in terms of combat air superiority with more modern planes, has in recent years seen the gap closing as Beijing modernised its air force.
China's plans for a stealth aircraft, designed to rival the U.S. F-22, have in particular unnerved Indian security planners prompting a race to overhaul the air force with its Soviet-era planes.
India, which long focused its military planning on Pakistan, is also scrambling to modernise its navy to counter China's influence in the Indian Ocean through its "string of pearls strategy" of developing a network of friendly ports from Gwadar in Pakistan to Hambantota in southern Sri Lanka.
Another military expert said given the scale of the challenge facing India, the increase in defence expenditure was modest.
"It's not a dramatic increase if you take inflation into account. Military inflation will be even higher," said Ajai Sahni, director of the New Delhi-based Institute for Conflict Management.
"It doesn't really demonstrate a will to completely overhaul the armed forces to meet the challenges." ($1=45.2 rupees)

U.S. ambassador to China decries violence against media

BEIJING, Feb 28 (Reuters) -- The U.S. ambassador to China, who is considering a run for the White House, on Monday condemned the harassment and beating of some foreign reporters who went to cover a planned protest gathering against the government.
It is the third time in as many weeks that ambassador Jon Huntsman has set himself publicly against the ruling Chinese Communist Party's efforts to stamp out dissent.
Lines of police checked passers-by and warned away foreign photo journalists in downtown Beijing and Shanghai on Sunday after a U.S.-based Chinese website spread calls for Chinese people to emulate the "Jasmine Revolution" sweeping the Middle East and assemble in support of democratic change.
Before the designated protest time, Chinese police warned foreign journalists to stay away, and many Chinese dissidents and rights activists have been detained or put under informal house arrest, apparently out of official jitters about the protest call.
An American news videographer was kicked and beaten repeatedly in the face with brooms and taken into police custody, witnesses said.
Other reporters were detained by police and some were roughed up, including one from Taiwan whose hand was injured, they said.
Ambassador Huntsman, a former Republican governor of Utah who will soon leave his job in Beijing, said he had met with several of the reporters who had been detained or otherwise harassed.
"This type of harassment and intimidation is unacceptable and deeply disturbing. I am disappointed that the Chinese public security authorities could not protect the safety and property of foreign journalists doing their jobs," Huntsman said in a statement.
"I call on the Chinese Government to hold the perpetrators accountable for harassing and assaulting innocent individuals and ask that they respect the rights of foreign journalists to report in China."
Huntsman has sparred with China over rights in the past few weeks, including standing outside a Chinese court to criticise it for rejecting the appeal of an American jailed on industrial spying charges.
The European Union also said it was concerned by the harassment of reporters.
"We urge the Chinese authorities to respect the rights of foreign journalists to report freely in China... and also to ensure their physical safety," its diplomatic mission to Beijing said in a separate statement.
"We call on the relevant authorities to clarify the legal basis for the physical obstruction and detention of foreign journalists on Sunday."
Foreign journalists are occasionally harassed or detained in China when covering sensitive stories, though mostly outside of the main cities.

Sunday, February 27, 2011

China's jasmine revolution: police line streets of Beijing

Major show of force from Chinese authorities following anonymous call for peaceful protests
By Tania Branigan
Policemen, Shanghai
Policemen advise a group of people gathererd in a Shanghai street to move on.
Police in Beijing and other cities mounted a major show of force following an anonymous call for protests inspired by the Middle East uprisings.
A US journalist was punched and kicked in the face and more than a dozen other journalists manhandled, detained or delayed as they covered the events which revealed official anxiety over similar protests against authoritarian rule in China.
Few expected Chinese citizens to answer the "jasmine revolution" appeal, which urged them to express their desire for reform by "strolling" past a McDonald's on Wangfujing shopping street and spots in 22 other mainland cities.
In addition to the heavy police presence, street cleaning vehicles and men with brooms swept back and forth along the designated streets in Beijing and Shanghai, preventing pedestrians from slowing down.
A construction site appeared on Wangfujing earlier this week, blocking off a stretch outside the hamburger bar.
Associated Press reported that Shanghai police used whistles to disperse a crowd of around 200, although it was unclear if the people were anything more than onlookers.
It said officers detained at least four Chinese citizens in the city and two others in Beijing.
It was not clear, however, if those detained had tried to protest.
In a statement, the Foreign Correspondent's Club of China said it was "appalled by the attack on one of our members by men who appeared to be plain clothes security officers in Beijing.
This video journalist was trying to do his job when he was set upon and repeatedly punched and kicked in the face by officers as part of a general crackdown in Wangfujing following calls on the internet for a protest in this area.
"More than a dozen other journalists who went to this part of Beijing to report had problems, including being manhandled, pushed, detained and delayed by uniformed police and others," it said.
A handful of people sought to protest last Sunday following a similar message on the overseas Boxun site.
But no one knows who was behind the message – they may well be abroad – and many thought it a joke.
"The idea that a Jasmine revolution could happen in China is extremely preposterous and unrealistic," said Zhao Qizheng, a former head of the government's information office, according to Hong Kong's Beijing-friendly Wen Wei Po newspaper.
Most observers – including those highly critical of the Chinese government – agree.
Although China downgraded its 2011 growth forecast on Sunday – from 8% to 7% – the country continues to enjoy a remarkable economic rise that began 30 years ago and has lifted hundreds of millions out of poverty.
In a rare webchat, the Chinese premier Wen Jiabao, who is seen as the government's sympathetic face for ordinary citizens, also stressed that controlling inflation was a priority.
"Rapid price rises have affected the public and even social stability," he said.
Analysts agree that China is unlikely to face an uprising similar to the ones in the Middle East and North Africa.
"They [the Chinese government] are delivering economic growth. Egypt did not have a leadership succession system; China does at a certain level. The army is not independent; it is under the party's lead. China does not have al-Jazeera [television]. It's hard to see what the commonalities are," said Nicholas Bequelin, Asia researcher for Human Rights Watch.
Yet recent days have seen possibly the harshest crackdown on dissidents and activists in years, said the Chinese Human Rights Defenders network (CHRD).
More than 100 people have been summoned or questioned and at least five detained on state security charges that can carry decade-long prison sentences.
They include the high-profile blogger Ran Yunfei, from Sichuan, who friends say is held on the unusually tough charge of subverting state power.
"We arrest hundreds, even thousands, of people a day. How can we remember each one's name? What's certain is that if someone is arrested, he or she must have broken the law and needs to be punished accordingly," said a provincial police spokesman.
"It's pretty rare for criminal detention to be the final step. Usually it will lead to formal arrest and once you have that, especially in state security cases, it is almost a guarantee there will be a conviction," said Joshua Rosenzweig of the Dui Hua foundation.
Authorities are particularly anxious because China's annual political meetings begin in Beijing on Thursday.
The vast majority of people in China will never have seen the protest appeal thanks to one of the most extensive and sophisticated censorship systems in the world.
Internet censors have tagged "Wangfujing", "jasmine" and even, at one point, "today" as sensitive words.
Well-known Beijing blogger "Tiger Temple" said such controls have ensured that underlying political awareness does not compare to that in Egypt before the revolution.
"Chinese citizens do not even know what a citizen is – they know only that they are like lambs, the Chinese leaders are their parents, that they have enough to eat, to drink; why they should be against [the government]?" he said.
Others point out that the bloody crackdown that followed the pro-reform protests in Tiananmen Square in 1989 sent a chilling message on the danger of confronting the Chinese Communist party.
"The fear factor has worked for 20 years," said Wu'er Kaixi, a student leader now living in exile.
That movement taught the party to eradicate any challenge before it can take root.
It has also systematically studied the collapse of the Soviet Union and the colour revolutions, such as those in Ukraine and Georgia.
While political demonstrations are rare in China, protests about specific grievances are growing in the country, with more than 90,000 incidents each year.
Anger about corruption, land grabs, police brutality and other abuses has broken out in violent "revenge attacks" by disgruntled individuals and even mass riots.
Wang Songlian of the CHRD network pointed out that the party fears rival organisations more than discontent.
"It has been very skilful in preventing any national linkages between groups," she said.
Some campaigners think the clampdown may not reflect nervousness over this particular call, but a broader push against newly assertive activists by an increasingly powerful and well-funded security apparatus.

China Takes Heavy Hand to Light Protests

By JEREMY PAGE in Beijing and JAMES T. AREDDY in Shanghai
0227cjasmine01
Police on the lookout for protesters arresting a man in downtown Shanghai Sunday
0227cjasmine02
And two more go down in Shanghai.
China deployed a SWAT team, attack dogs and scores of plainclothes security agents in central Beijing after anonymous online activists called for people to start a "Jasmine Revolution" for the second Sunday in a row, this time by "strolling" past designated sites in the capital and several other cities.
It was hard to tell how many people responded, as most of the sites chosen are usually crowded on a Sunday, but witnesses said there were more people than normal at the site in Shanghai, and the huge security operation in Beijing disrupted normal shopping and attracted many curious bystanders.
China has mobilized its vast state-security machine in the past few weeks to prevent the kind of unrest racking the Middle East and North Africa.
Among other measures, it has detained or confined to their homes dozens of political activists and tightened Internet controls, especially on Twitter-like microblogging sites.
But while the heavy-handed response has succeeded in stifling protest, it illustrates how concerned China's leaders are about the potential for social unrest, at the same time drawing domestic and international attention to the extent of the Internet and social controls those leaders rely on to remain in power.
In another indication of concern, Wen Jiabao, China's premier, pledged in an online chat with Internet users to focus more on improving the quality of life and on government accountability.
He also lowered the official economic-growth target to 7% for the next five years, from 7.5% for the past five—a signal that the government wants to focus more on the quality of economic growth than on sheer speed.
The online protest appeals have been appearing on a U.S.-based Chinese-language website called boxun.com and circulating mainly on Twitter—two sites blocked in China—meaning the appeals have mostly been visible only to wealthier urbanites with virtual private networks or proxies technology to evade Internet censors.
Police easily quashed last Sunday's call for protests at designated sites in 13 cities, including a McDonald's outlet in the popular Wangfujing shopping street in downtown Beijing.
For this past Sunday, the online activists urged people to protest silently by simply "taking a stroll" at many of the same sites.
In Beijing, hundreds of security officers—including uniformed police, burly plainclothes agents with earpieces, public-security "volunteers" in red armbands, and at least one SWAT team armed with automatic rifles and body armor—were deployed to Wangfujing.
They initially allowed people to move fairly freely, while checking identification papers, but later cleared out most people and blocked off a 200-meter section of the street as two street-cleaning machines swept up and down spraying water to either side.
Security officers also detained several foreign journalists, including Stephen Engle, a reporter for Bloomberg Television.
The Wall Street Journal saw Mr. Engle being grabbed by several security officers, pushed to the ground, dragged along by his leg, punched in the head and beaten with a broom handle by a man dressed as street sweeper.
A spokesperson for Bloomberg couldn't be reached for comment.
The Foreign Correspondents' Club of China said in a statement it was "appalled by the attack on one of our members by men who appeared to be plainclothes security officers in Beijing."
It called on the Chinese government to ensure the physical safety of all reporters and their staff while carrying out assignments in China.
Crowds of curious Chinese onlookers gathered as the street was blocked off and uniformed paramilitary police marched down either side.
But while several Chinese people were seen having altercations with the police, there were no signs of actual protests.
Similarly in Shanghai, while more people than usual crowded around the designated site—the Peace Cinema, an IMAX theater along a major shopping street—there were no signs of protest.
Some watched the scene from inside a Starbucks outlet next door and others snapped photos as they walked to the nearby malls.
Police tried to disperse the thick crowds by incessantly blowing their whistles and shoving some people. Others were firmly escorted along the sidewalk.
The spray of water from two street-cleaning vehicles kept people moving.
News photographers said they saw at least four people detained.

The great firewall of China

By Saibal Dasgupta

BEIJING -- The Chinese authorities have been worrying about the type of protests that overthrew the autocratic regimes in Tunisia and Egypt since 1999, when they began to encourage the home-grown QQ instant messaging service.
In the Arab world, the spontaneous outbursts of anger by people against the oppressive regimes that have ruled over them for decades were partly inspired or at least helped by Facebook and other social media.
The Communists have always been nervous about the power of social media.
The world in turn has focused a lot of its energies on criticising the Chinese authorities for banning Facebook, Twitter and YouTube.
US President Barack Obama was part of that chorus and Secretary of State Hillary Clinton recently said her government would do what it can to fight censorship of the internet by repressive regimes.
What is less understood is that the authorities in China are also worried about the local home-grown clones of the western social networking sites.
The authorities banned three Twitter clones — Fanfou, Jiwai, and Digu — after the July 2009 uprising in Urumqi, the capital of the troubled western province of Xingjian bordering Pakistan.
Fanfou had over a million subscribers when the authorities put a lid on it because of suspicions that rebels were using the Twitter clone to spread their message.
The other challenge before the government is that even the cheapest mobile phone sold in China comes with an inbuilt camera, and the software to upload those pictures on to a wide range of internet fora.
Two Twitter clones, the microblogging sites Weibo and Taotao, have become so popular that even lifting the ban on the original might do little to dent their popularity.
The clones are closely scrutinized by the government, but information still slips through the fingers of China's internet police force and into the country's universities and colleges.
It is also common practice for young people here to translate articles written about China by foreign journalists, and then circulate the translations via mass email and blogs.
The Chinese government's move this week to pull out photos of the US ambassador to China, Jon Huntsman, from Weibo and other Chinese sites is testimony to the fact that even closely watched sites can turn into the vehicles that spread the stories the authorities do not want heard.
The photos and video in question showed Huntsman, who is resigning his post this year amid speculation that he might run for US President in 2012, at an anti-government protest in Beijing.
The US embassy has since clarified that Huntsman's appearance at the protest rally was coincidental, not a sign that the US was tacitly supporting China's "Jasmine revolution".
The irony is that the Chinese authorities not only created the Great Firewall of China, the computer network that allows them to filter information on the Net, but also encouraged internet innovation and the growth of home-grown social media to fill the space left by the banning of Twitter and Facebook.
The vital question now is whether this internet innovation will grow quickly enough to breach the Great Firewall itself, and end up posing a challenge to the authorities?
The first attempts at sparking off a Jasmine revolution in China have been dealt with.
But the internet is still being used to spread the word: that Egypt-style protest gatherings are the only route to democracy, and justice.
What remains to be seen is whether the people of China will take that message from the safety of their internet chat rooms and out on to the streets.

Saturday, February 26, 2011

China's disabled exploited as slaves

In an economy where manual labor is in demand, ruthless recruiters often prey on the mentally disabled. One man, held at a brick kiln, is one of countless slaves who endured torture and deplorable living conditions.
By Barbara Demick

Mao Xiulian shows the sores on the legs of her son Liu Xiaoping, 30, who was burned with hot bricks while made to work as a slave at a brick factory. 


He Zhimin, 63, hold a photo of his mentally disabled son, who he has been searching for the past several months. In his searches, He found Liu Xiaoping.
At 30, Liu Xiaoping is more boy than man, with soft doe eyes that affix visitors with the unabashed stare of the very young and glisten with reluctant tears when his bandages are changed.
It takes effort not to show the pain of the wounds that read up and down his body as a testament to the 10 months he was held captive at brick factories in the Chinese countryside.
His hands are as red as freshly boiled lobster from handling hot bricks from a kiln without proper protective gloves.
On the backs of his legs, third-degree burns trace the rectangular shape of bricks, a factory foreman's punishment for not working fast enough.
Around his wrists, ligature marks tell of the chains used to keep him from running away at night.
Liu was found wandering in the small town of Gaoling, north of Xi'an, on Dec. 22, 10 months after his family reported him missing.
He was wearing the same clothing as when he'd disappeared in February, but the trousers were glued to the festering wounds on his legs and the gangrene of his frostbitten feet stank through the gaping holes in his shoes.
Despite his injuries and an intellectual impairment, he was able to tell how he'd been tricked by a woman who bought him a bowl of soup and promised him the equivalent of $10 per day, good wages for manual work in rural China.
Instead, he became a slave.
"They took advantage of my brother because he has a mental disability," said his 26-year-old brother, Liu Xiaowei.
"They forced him to work, beat him, tortured him, and then when he was too weak to take it anymore, they threw him out on the street."
In an adrenaline-paced economy with a chronic shortage of manual laborers, ruthless recruiters often prey on China's mentally disabled.
The worst offenders work with the brick kilns that are feeding a seemingly insatiable appetite for the new apartment complexes and malls cropping up around the countryside.
"The brick factories can never get as many workers as they need. The work is heavy and a lot of people don't want to do it," said Ren Haibin, the former manager of one of several brick factories where Liu said he had worked.
"Possibly the mentally disabled can be intimidated and forced to work... They are timid and easier to manage."
In the Beijing offices of Enable Disability Studies Institute, a nongovernmental organization, director Zhang Wei reels off a list of more than a dozen cases over the last decade in which people were enslaved in appalling conditions, each more nightmarish than the last.
Young women have been sold by psychiatric hospitals as sexual partners and wives; mentally disabled young men have been imprisoned as forced laborers in coal mines and brick factories.
In 2008, a brick factory owner beat a young man to death for an escape attempt.
In December, Chinese authorities rescued 11 workers who had been sold by a supposed charitable organization for the disabled to a brick factory more than 1,000 miles away.
Reports on conditions in the factory said the workers hadn't been allowed to bathe in more than a year and were fed the same food as the boss' dog.
"Every year there are cases like this," Zhang said.
"The worst are when they are violating the rights of the disabled in the name of charity."
Police often won't exert much effort when a mentally disabled person disappears, he said, and even if they're rescued, their testimony is not taken seriously because of their impairment.
"This is not like when a child goes missing. Police will just assume they've run away," Zhang said.
Some families, he says, won't even bother to report.
"They might feel that they've been relieved of the burden."
That was not the case with Liu Xiaoping.
He comes from a loving family who occupy the ground floor of a shabby apartment in southern Xian, where his father sells remedies to people too poor to afford a doctor.
Since Liu escaped from the brick factory, he has shuttled between home and the hospital, while his family tries to raise money for skin grafts.
Liu doesn't speak much.
When he does, the words come slowly but clearly, as though they've required some concentration.
He left school in the third grade, when it became clear that he'd never be able to read or write beyond an elementary level.
But he was strong and healthy.
Neighbors would always call on him to help harvest wheat and potatoes and he would hang out at the market looking for odd jobs unloading trucks or carrying parcels.
"He wanted to stand on his own feet," said younger brother Xiaowei.
"He was kindhearted and thinks that everybody else is too."
On Feb. 28, 2010, the night of the Lantern Festival that ends the lunar New Year holiday, he and his family were visiting relatives in Shanyang, a town south of Xi'an.
That night, Liu failed to come home, something that had never happened before.
His family reported him missing the next day and printed posters that they distributed around the neighborhood.
Little did they know that he had been transported almost 100 miles away to Gaoling, a rural county where there are dozens of brick factories tucked deep in the countryside.
They might never have found him if not for another family who'd also lost a son to the brick factories.
***
He Wen went missing June 2.
The 35-year-old had been psychologically troubled since his late teens, when he'd suffered a breakdown after failing an exam.
He was unable to hold a regular job but could unload trucks and was proud that he'd managed to buy his own television set.
The afternoon he disappeared, a nephew overheard him taking a telephone call from a woman who'd offered him a job that would provide more than $10 a day, meals and a free pack of cigarettes.
He rode away on a bicycle.
His father, He Zhimin, is a 62-year-old farmer with unruly whiskers and hands that tremble as he fingers photographs of his missing son.
"I was suspicious as soon as I heard about this supposed job offer. I started asking around and people told me stories about the brick factories," He said.
He went to the local police, but they told him to file the report in nearby Gaoling.
The police there sent him back.
"They kept kicking me from one place to another," he said.
So he launched his own investigation.
Every afternoon, he'd go out in a three-wheel motorized cart, handing out fliers and business cards with images of his son's square-jawed face.
Somebody printed out a map from Google and he marked the locations of all the brick factories he heard about: 58 in Gaoling alone.
Four workers at one factory said He Wen had worked there earlier in the summer and they gave his father directions to other factories nearby.
An elderly woman had seen the younger He walking toward downtown Gaoling.
Construction workers erecting an apartment complex thought he might have worked there.
"People kept saying they'd seen my son, but by the time I'd get there, he'd have disappeared."
In December, somebody telephoned to say a homeless man who looked like his son was sleeping on the street in Gaoling.
He rushed over.
He could see that the unshaven, dirt-encrusted man looked like his son: the same height, close in age. But he was not.
Disappointed, he returned home. His wife was furious.
"How could you leave that boy out on the street in winter? Maybe it was our son, after all. Even if he's not, he's somebody's son," she badgered her husband.
After a sleepless night, he drove back to Gaoling.
The homeless man was still out in the street, but he was too delirious to give his name.
He tried to take him to the police and to a hospital, but nobody wanted to take him in.
Finally, he called a journalist, who matched the young man's description to that of another young man reported missing.
He was Liu Xiaoping.
***
As Liu recovered in the burn unit, his brother coaxed the story out of him.
Liu told of the beatings and burnings, of the food so meager than he lost 20 pounds, of being chained at night and guarded by vicious dogs, about being shuttled among three brick factories.
He identified a photograph of He Zhimin's missing son as one of 11 disabled workers imprisoned with him. He also picked out from police photographs the woman who tricked him and a man known as Lao Fang, a nickname meaning "Old Fang," the foreman who beat him and the other workers.
He described in detail the location of the three brick factories where he'd worked, one of them where the workers had recognized the photo of He Zhimin's son.
That factory lies at the end of a straight dirt road through fallow corn fields 10 miles from Gaoling.
There are a few houses out front, and in back a partially underground room lined with chambers containing brick ovens. Although it was closed for the winter, the manager, Wang Youqiang, was on duty.
"Look around if you like. There's no evidence against me. It's all just rumor," he told a visitor.
Wang acknowledged that it's hard to find workers — "Business is great. We sold 27 million bricks last year and would have sold 30 million, if we had the labor" — but denied using the disabled.
"If you say otherwise, show me the proof."
But Ren Haibin, who was manager until June, when he says he retired because of ill health, confirmed most of what Liu Xiaoping claimed.
He said the factory contracted with a man named Fang who would supply and supervise mentally disabled workers.
Fang's mistress recruited them with the promise of $10 a day in wages.
In fact, the going rate for healthy workers was about $14 a day, whereas the factory paid Fang $4.50 per day for each mentally disabled worker, of which $1.50 was spent on food.
The rest went to Fang.
"They made promises they didn't keep," Ren said.
"The money went into Fang's pocket. The workers never saw it."
Ren said he never saw Fang beating a worker, but added: "He was not a kind person... Maybe if they didn't work up to a certain level, there would be no food."
Fang could not be reached for comment. Telephone numbers he had used were disconnected.
In the two months since Liu was found wandering, local authorities have visited many brick factories in the area, requesting lists of workers' names and where they've come from.
But no one has been arrested and Liu's family has yet to receive compensation for his medical bills.
"I thought this should be so simple, an open-and-shut case, but it has proved so complicated," said his brother Liu Xiaowei.
"I'm very disappointed that our society hasn't done more to protect people like my brother."
He Zhimin, meanwhile, is no closer to finding his son.
He fears that whoever is holding him may have spirited him far away to avoid detection.
It's not an unreasonable fear; when the disabled workers were rescued in December in Xinjiang, one was found to have been transported 2,000 miles across China.
He Zhimin continues to go out every afternoon, driving through the countryside near the brick factories, thrusting fliers into the hands of passersby.
By now, most people recognize him, so they simply shake their heads: No, they haven't seen his son.

Tough times in China for big-box retailers

Home Depot, Best Buy alter strategy in fast-growing consumer market

Security guard personnel stand guard as many people line up outside one of the Shanghai outlets Best Buy closed earlier this week to complain or seek help with customer service on Friday in Shanghai, China.
By ELAINE KURTENBACH
SHANGHAI — Home Depot is no longer open for home improvements in Beijing.
Best Buy Inc. decided its brand name electronics stores were not best for China.
This may well be the world's biggest and fastest growing consumer market, but foreign retailers are finding China is no easy sell as tough competition and a boom in online shopping prompt some big names to pack up or drastically alter their market strategy.
Minneapolis-based Best Buy opened its flagship store and other outlets in Shanghai just a few years ago, to great fanfare.
This week it closed all nine of its brand name stores in China, stunning employees and customers: On Friday, hundreds of people were lined up outside the city's biggest store to seek help with returns and other customer services.
Best Buy says it plans to increase the number of its Five Star outlets — acquired through the company's purchase of provincial retailer Jiangsu Five Star Appliance Co. in 2006 — to about 210 by early 2012.
It also is studying more profitable options for its Best Buy-branded outlets and plans to reopen two of them.
"We at Best Buy will not withdraw from the Chinese market. We will try to find new ways to develop," said a notice posted outside its flagship store in Shanghai's busy downtown Xujiahui shopping district.
Despite its expanded Five Star presence, shuttering the big blue outlets in some of Shanghai's choicest locations signals the company misjudged the local market, analysts say.
"My sense is that their first error was to use a model similar to the one they use in the U.S.," said Torsten Stocker, vice president of the consultancy Monitor Group.
"Maybe their people were good at doing what Best Buy does back in America but not at operating a retailer in China."
Last month, Home Depot closed its last store in Beijing, one of several outlets shut down since 2009.
The world's biggest home improvement retailer has retained outlets in some key provincial cities, where costs are presumably lower and competition perhaps less intense.
Meanwhile, regulators recently ordered up to 500,000 yuan ($75,900) in fines for hypermarket retailers Carrefour and Wal-Mart for over charging on items ranging from underwear to dumpling flour — a sore point when authorities are jittery over inflation.
Shanghai newspaper reports also criticized Carrefour, a French chain, of not paying its employees fair wages.
Some foreign retailers are thriving in China.
KFC and Pizza Hut owner Yum Brands Inc. saw its annual operating profit surge 26 percent last year, pushing toward the $1 billion mark, thanks to the voracious Chinese appetite for western fast foods.
The Shanghai outlets of foreign fashion retailers like H&M and Zara are often packed.
As Best Buy stages its strategic retreat from China's richest city, Apple Inc. reportedly plans a yet bigger shop right on Shanghai's famous Nanjing Rd. to help accommodate weekend crowds jammed into two recently opened spacious stores.
With incomes of many workers rising by more than 10 percent a year, China's growing affluence makes it a market few companies can afford to ignore.
But hitting the right notes with Chinese consumers is crucial, and not always easy, analysts say.
Chinese customers balked at paying a premium for Best Buy's offer of a pleasant store experience and helpful service, including its Geek Squad computer troubleshooters, said Liu Hongjiao, a senior consultant with Analysys International Solution in Beijing.
While its competitors like Suning Appliance and its archrival Gome Electrical Appliances Holdings have suppliers that take payments after their products are sold, in Shanghai Best Buy had no such advantage.
Add to that costs for labor and for retail space and the overhead was just not competitive, Liu said.
"Foreign companies are sometimes bolder than local ones, but the local companies know more about the local customers. They are better at controlling costs and keeping prices low," said Ding Wenjin, an analyst with Dongguan Securities in the southern city of Dongguan.
"Especially in these days of serious inflation, people are more sensitive about prices," Ding said.
In China, Best Buy has also been bested by local competitors in online sales in a market where, increasingly, purchases are done with the click of mouse.
From towels and T-shirts to microwaves and cell phones — Chinese go online to comparison shop and then wait for their purchases to be sent, cash-on-delivery, straight to their homes or offices.
Online retail sales doubled in China last year from 2009, to 513.1 billion yuan ($77.7 billion), according to figures from the China E-commerce Research Center.
Of course, in a shopping-obsessed city like Shanghai, there is still plenty of retailing to be done: companies like Apple and Zara, which manufacture their own products, draw customers with their unique products, analysts say.
"Their market positioning is high, because their products are different from local brands," said Ding. "However, if you want to buy something like a Nokia cell phone, that's different. It will be the same whether it's from Best Buy, Suning or online," he said.

Online call for protests in China prompts crackdown

Authorities have responded to the anonymous campaign calling for pro-democracy demonstrations across China with detention of human rights activists, greater Internet censorship and pressure on foreign journalists
By David Pierson

An anonymous online campaign calling for pro-democracy demonstrations across China on Sunday has been met with the detention of human rights activists, greater Internet censorship and even veiled pressure on foreign journalists.
The strict response by authorities comes after a U.S.-based Chinese-language website, Boxun.com, called for repeated attempts each Sunday to launch a "jasmine revolution" in about two dozen cities, including Beijing and Shanghai.
The first planned attempt, which was held last Sunday, brought out a swarm of police and foreign media in some of the designated sites but provided no evidence the country was on the cusp of a popular uprising.
Still, with regimes toppling in North Africa and the Middle East, authorities in China deemed the threat strong enough to have interrogated, arrested and detained at home dozens of people suspected of fomenting the anti-government movement.
Human rights groups based outside China said Friday that police had charged five activists this week with "subversion of state power" and "inciting subversion of state power," serious crimes that carry potentially decade-long prison sentences.
The five were Ran Yunfei, 46, a widely followed blogger and public intellectual; Ding Mao, 45, a student leader during the 1989 Tiananmen democracy protests who spent 10 years in jail; Hua Chunhui, 47, an insurance company manager who has advocated on civil society issues; Liang Haiyi, no age given, a woman accused of posting foreign links about the jasmine revolution on a popular Chinese instant-messaging service; and Chen Wei, 42, a leading human rights activist in central Sichaun province.
The arrests coincide with the disappearance this month of three human rights lawyers, Jiang Tianyong, Tang Jitian and Teng Biao.
"The numbers point to a bad situation that is only getting worse," Renee Xia, international director of Chinese Human Rights Defenders, an advocacy group, said in a written statement.
"In the matter of a few days, we have seen more cases of prominent lawyers subjected to prolonged disappearances, more criminal charges that may carry lengthy prison sentences for activists, more home raids, and a heavier reliance on extralegal measures."
Supporters of the jasmine revolution have been communicating on Twitter, a site only accessible in China with circumvention software since it was blocked by Web censors in 2009.
Many cautioned those who planned to attend demonstrations Sunday to be wary of police.
Authorities appear to have gone to extraordinary lengths to prevent a repeat of the Feb. 20 gathering outside a McDonalds in a busy Beijing shopping district.
Metal corrugated fencing was erected outside the restaurant midweek, blocking the protest site.
The same tactic was employed outside the home of Liu Xia, who is married to Nobel Peace Prize laureate Liu Xiaobo.
On Friday, several members of Beijing's foreign media corps were telephoned by police and told they needed to apply with neighborhood councils to receive permission to conduct interviews.
The same level of sensitivity is being levied on the Internet, where even the Beijing neighborhood in which the protest is supposed to take place -- Wangfujing -- is banned from being searched on China's most popular micro-blogging site, Sina Weibo.
That puts the popular tourist destination on a list of banned search terms that has expanded to include "Egypt," "jasmine" and American ambassador Jon Huntsman, who sparked a controversy by briefly being seen at last Sunday's gathering.
The social-networking site LinkedIn was also blocked by censors from late Thursday to Friday evening. It had reportedly carried messages about the protests.

Friday, February 25, 2011

Chinese Activists Press Calls for Protests

By IAN JOHNSON
BEIJING — Calls for China to emulate the “Jasmine Revolution” sweeping the Middle East and North Africa continue to reverberate in the country’s blogosphere, causing another popular social networking site to be blocked and ensnaring the American ambassador, Jon M. Huntsman Jr.
The calls for quiet protests began last weekend and elicited only a tiny response, with a few dozen demonstrators in front of a McDonald’s in central Beijing.
But this week, organizers — who seem to be based primarily overseas — have called for protests in 23 cities on Sunday, eliciting a relatively strong reaction from the Chinese government.
Dozens of activists have been arrested or placed under house arrest and censorship of the Internet has increased.
On Friday, the networking site LinkedIn was blocked after it had allegedly been used to spread calls for a Jasmine-style revolution.
Sites like Twitter and Facebook have long been blocked in China, but LinkedIn had survived because of its focus on job hunting and recruiting.
The events have also involved Mr. Huntsman, who was at the rally last Sunday.
The protest had been announced on Twitter, to which many foreigners and some Chinese can gain access through virtual private networks.
The American Embassy said Mr. Huntsman just happened to be passing by the McDonald’s.
A video that circulated widely on the Chinese Internet in China showed the former Republican governor of Utah wearing a black leather jacket with an American flag on his left shoulder.
China struck back late this week, blocking Mr. Huntsman’s name from one of the country’s most popular social networking sites, Sina.com’s Weibo.
Censors earlier had blocked searches for words like “Egypt,” “jasmine” and “jasmine revolution.”
Mr. Huntsman’s activities elicited angry responses from Chinese bloggers.
One, called Mu Chuan, said, “The American government is once again nakedly interfering in Chinese domestic politics. They want to breed chaos in China.”
Mr. Huntsman also recently stood outside a Beijing court to protest the rejection of an appeal by an American convicted of industrial espionage.
In addition, he posted a message on Weibo asking what users thought of a speech by Secretary of State Hillary Rodham Clinton on Internet freedom.
His messages were deleted by censors.
This week, a group backing him as a possible contender for the Republican presidential nomination in 2012 formed a fund-raising committee.
He has already resigned as ambassador, effective April 30.

Thursday, February 24, 2011

Words We Can Use, and Those We Can Not

By MURONG XUECUN
Murong Xuecun, the pen name of Hao Qun, 37, is one of China’s early Internet writers, best known for the novel ‘‘Leave Me Alone: A Novel of Chengdu.’’ Recently, a nonfiction work, ‘‘The Missing Ingredient,’’ about going underground to uncover a pyramid scheme, won him the 2010 People’s Literature Prize, but he was unexpectedly barred from making an acceptance speech. He delivered it instead on Tuesday before the Foreign Correspondents Club in Hong Kong:

If I am not mistaken, the People’s Literature magazine “special action award” was not bestowed for my literary achievement, but for my courage.
This is an unusual honor for me as a writer.
 It’s a bit like praising a football player for being a good street fighter.
I’m embarrassed because I am not a brave person.
Genuine bravery for a writer is not about jousting with a pyramid-scam gang.
It is about calmly speaking the truth when everyone else is silenced, when the truth cannot be expressed.
It is about speaking out with a different voice, risking the wrath of the state and offending everyone, for the sake of the truth, and the writer’s conscience.
Actually, I am a coward.
I say only what is safe to say, and I criticize only what is permissible to criticize.
I finished my latest book some time ago, and the most important reason for the delay in publication was that I came up against a rather peculiar editor.
Over the course of two months, he and I had some interesting verbal duels.
I smashed a cup on the floor, I spoke a few strong words to him.
I furiously punched the wall at home, but finally I capitulated.
This editor is a cautious person.
Whatever the circumstances, the first thing he thinks of is safety.
In his view, it would have been preferable not to publish my book at all; this would be the safest way.
Even if he was forced to publish it, he told me it was best to avoid talking about anything real, because anything real entails risk.
The moment I had opinions, I became a danger.
I disagreed with him, but I know he is not the only one to hold this view.
My new book tells the story of my time spent undercover inside an illegal pyramid-sales organization.
It included this phrase: “This group, mostly made up of people from Henan, was called the ‘Henan network.”’
To the editor, this harmless sentence aroused safety issues because the phrase “Henan people” carries an air of regional discrimination.
He suggested that we rework the phrase as: “They were all Henan peasants, and so this network was called the Henan network, and was made up of mostly Henan people.”
I asked him why.
He said that by changing “people” to “peasants,” more sophisticated Henan people would not feel slighted.
I tried to bargain with him: “In my original version there were two sentences, it would be too wordy if there were three. Why don’t we cut the first one?”
He thought about it for ages and then agreed, and so we arrived at the final version: “This group, called the ‘Henan network,’ was made up mostly of Henan people.”
In the end, all that changed was the word order.
As you may have guessed, this editor didn’t just cut a few words like “Henan people,” but also many sentences, paragraphs and even whole sections and chapters.
From my many years’ experience in writing and publishing, I could compile a Sensitive Words Glossary, in which you would certainly find the words “system,” “law,” “government,” as well as a large number of other nouns, several verbs, quite a few adjectives, and even a few special numbers.
The glossary would also include all names of religions, all names of important people, all countries, including of course China, and also the phrase “Chinese people.”
In many places in my new book, “Chinese people” was changed to “some people,” or even “a small number of people.”
If I critiqued some part of traditional Chinese culture, the editor would change it to “the bureaucratic culture of ancient China.”
If I brought up anything contemporary, he would ask me instead to refer to Zhu Yuanzhang, the founder of the Ming Dynasty, or Wu Zetian, a notorious Tang dynasty empress, or Europe of the Middle Ages.
Readers of my book may think I’m mad.
Obviously I’m writing about contemporary things so why am I repeatedly criticizing Empress Wu?
Well, the reader may be right: At this time, in this place, Chinese writing exhibits symptoms of a mental disorder.
I am not a Chinese writer so much as a person with a mental disorder.
Some people will say that one shouldn’t use the case of one particular editor to damn the system.
I agree, but still I want to ask: What makes a paranoid editor?
I confess that his fear infected me.
I would also ask what kind of system could make me, a law-abiding citizen, a writer, live in indescribable fear?
There are journalists here, and perhaps some others, who may report later that I have delivered an angry speech.
Well, I am not angry.
I believe I am not alone; this is the situation faced by all of China’s writers.
The fear I feel is not just the fear felt by one writer, but by all of our writers.
Unfortunately, I have dedicated great effort to the task of compiling this Sensitive Words Glossary, and I have mastered my filtering skills.
When I wrote my latest book, I knew which words had to be cut, and I accepted the cutting as if that was the way it should be.
In fact, I will often take it on myself to save time and cut a few words.
This is castrated writing.
I am a proactive eunuch, I castrate myself even before the surgeon raises his scalpel.
Our language has been cut into two parts: one safe, and the other risky.
Some words are revolutionary, and others are reactionary; some words we may use, and others belong to our enemies.
The most unfortunate thing is that despite my experience, I still don’t always know which words are legal and which illegal, and as a result I often unknowingly commit a “word crime.”
When I stand at a podium to receive a prize, I feel uncomfortable calling myself a writer — I am merely a word criminal.
Some people would say that this is just the way things are.
My feeling is that I am already close to suffocation.
I struggled to choose safe words in a linguistic minefield.
It seems that every single Chinese word looks suspicious.
I want to say that this not only harms my works, it also harms our language.
This is our great language, the language of the philosopher Zhuangzi and the poets Li Bai and Su Dongpo and the grand historian Sima Qian.
Maybe our grandchildren and the children of our grandchildren will rediscover many beautiful words and phrases that no longer exist.
But sadly, even now, we continue to arrogantly proclaim that our language is on the rise.
The only speakable truth is that we cannot speak the truth.
The only acceptable viewpoint is that we cannot express a viewpoint.
We cannot criticize the system, we cannot discuss current affairs, we cannot even mention distant Ethiopia. Sometimes I can’t help wondering: Is the Cultural Revolution really over?
I know these words are not appropriate for this time and place, as I accept an award.
They may be deemed naïve.
But at this time, in this place, I still adhere to a kind of naïve reasoning: when the air quality deteriorates, I feel we should do something; not simply shut our mouths and stop breathing.
Rather, we must act, to defend our language, to improve the environment.
Most of all, this is what a writer should do.
Only by saying this kind of thing do I deserve a prize for literature.
I hope that we can agree on a few things:
Literature is not at the service of the government; on the contrary, governments should do everything in their power to create a favorable climate for literature.
If we cannot get rid of censorship, then I hope we can be a little more relaxed about it; if we cannot be relaxed, at least let us be a little more intelligent.
If there really were a Sensitive Words Glossary, I hope that it could be published; in this way at least we could all save a lot of time, and reduce the possibility of unwittingly committing “word crimes.”
Writers shouldn’t be parrots, and they definitely should not be yapping house pets; they should have a clear mind and speak with an honest voice.
When they take up their pens, they are nobody’s slave, they have the right to pledge loyalty to no one; and to speak the truth and be true to their own consciences.
Finally, I want to say that I am not a class enemy, I am not a troublemaker, nor an overthrower of governments.
I am just a citizen who makes suggestions.
My words may be sharp, but please believe in my good intentions.
Like most people, I dream of living in a perfect world, but I am still willing to give my all for an imperfect world.

The Politics of Reincarnation

By Melinda Liu

It’s probably best not to even try making sense of Beijing’s pronouncements on the 14th Dalai Lama and other Tibetan spiritual leaders: you’ll only make your head hurt.
Last week the officially atheist Chinese government’s State Administration for Religious Affairs disclosed plans to enact a new law forbidding the 75-year-old Buddhist deity to be reborn anywhere but on Chinese-controlled soil, and giving final say to Chinese authorities when the time comes to identify his 15th incarnation.
That might seem to pose a dilemma, given the exiled leader’s earlier promise that he will never again be reincarnated in Tibet as long as his homeland remains under China’s heel.
Still, no one seems too concerned just now about the Dalai Lama’s next life.
Instead, attention has focused on an all-too-worldly fracas over the finances of the 25-year-old Tibetan-born holy man who seems most likely to assume leadership of the exile community after the current Dalai Lama’s death: the 17th Karmapa Lama.
It began in late January when a random police check found a car in northern India hauling roughly $200,000 in Indian currency.
Investigators followed the trail to the Karmapa’s monastery in the Indian town of Dharamsala, where they confiscated trunkloads of cash, reportedly amounting to $1.6 million, including more than $100,000 in Chinese currency—a discovery that immediately revived old suspicions in India’s intelligence community that the Karmapa is a Chinese spy.
Beijing didn’t help calm the situation when it quickly issued a denial that the Karmapa was any such thing.
Indian authorities have kept a close eye on the Karmapa ever since he fled Chinese-occupied Tibet in the winter of 1999–2000.
Born to a nomadic Tibetan family in 1985, Ogyen Trinley Dorje was identified at the age of 7 as the reincarnation of the 16th Karmapa and taken to a monastery to be raised under constant surveillance by Chinese security forces, forbidden to leave the country even briefly.
When his India-based religious tutor was barred from Tibet, the boy staged a harrowing escape via SUV, horseback, and helicopter, arriving in Dharamsala by taxi in early January 2000.
In the years since, the Karmapa has refrained from criticizing the Chinese government—in sharp contrast to the Dalai Lama’s blunt denunciations since his escape from occupied Tibet in 1959—and Beijing has never admitted that the Karmapa has left for good.
The Chinese say he’s merely on a quest to retrieve a black hat said to have magical powers and other artifacts currently housed at a monastery in the eastern Himalayan state of Sikkim.
The lack of recrimination has only heightened suspicions among some Indian intelligence operatives who still seem unable to accept that a mere 14-year-old could elude Chinese security forces and survive such a trek across snow-choked Himalayan passes.
“There are people in the shadows who are suspicious of China and deeply uncomfortable with the Tibetan exiles’ perceived long-term drift towards accommodation with Beijing,” says Robert Barnett, a Tibetologist at Columbia University.
The politics of reincarnation has always been a treacherous area in Tibet.
In past centuries, rival claimants were often in danger of assassination, and after the Dalai Lama gave his blessing to a Tibetan boy as the 11th Panchen Lama in 1995, the child disappeared and Chinese authorities installed another youngster in his place.
The man generally recognized as the 17th Karmapa himself has at least two rivals for the title, although his claim is supported by both the Dalai Lama and Beijing—and most ordinary Tibetans.
Still, to prevent possible unrest, Indian authorities have barred all claimants from the monastery where the black hat is kept.
Followers of the two rivals have clashed violently in the past.
As for the mysterious trunkfuls of cash, the Karmapa’s financial representatives stuck to their story that the money had all been donated by his devout followers—including many inside China.
And by last week Indian investigators at last conceded that they were telling the truth.
“I’ve seen Chinese society ladies swooning all over him,” says Jamyang Norbu, a U.S.-based author and blogger.
“This translates into big money.” (Any inclination to celebrate the Karmapa’s exoneration was dampened by news that the Dalai Lama’s 45-year-old nephew had been struck and killed by an SUV while engaged in a 300-mile “Free Tibet” hike in Florida.)
Nevertheless, the uproar was no more than a tame affair compared with what’s sure to ensue when the 14th Dalai Lama finally moves on.
He’s said he might come back as a woman, or he might not come back at all.
The one certainty is that he won’t go quietly.

Chinese oil interests attacked in Libya

By Leslie Hook in Beijing

CNPC, China’s largest oil producer, on Thursday said its facilities in Libya had been attacked, marking the first confirmation of violence against oil producers as unrest sweeps the country.
Major oil companies including Eni of Italy and Repsol of Spain have evacuated from Libya in recent days as violence escalated.
The shutdowns have caused Libya’s oil output to fall by half, sending oil prices higher amid global fears that unrest in the Middle East will lead to shortages.
News of the attack will heighten concerns among oil industry executives that the turmoil in Libya may lead to widespread sabotage of oil facilities and that it would take many months or even years to return the country to full production capacity even if a semblance of peace returns.
In a speech earlier this week, Seif al-Islam Gaddafi, the son of Colonel Muammer Gaddafi, warned that in the event of a civil war, Libya’s oil wealth would be “burned”.
In a terse announcement, CNPC said it was in the process of evacuating its 391 Chinese employees from the country and had already repatriated 24 of them.
Contacted by phone, CNPC confirmed the attack but did not provide details, saying that it was still waiting for the latest news out of Libya.
Meanwhile a report in the 21st Century Business Herald newspaper described an evening raid on facilities in Misurata, Libya’s third-largest city.
The “surprise raid” targeted the Great Wall Drill Engineering Company, a CNPC subsidiary, and caused “tens of millions” of renminbi in damage, according to the report.
Cars were stolen and employees’ personal belongings were looted, said the newspaper, citing an unnamed source.
Separately, foreign ministry spokesman Ma Zhaoxu acknowledged that some Chinese companies in Libya “had their local camp sites raided by gangsters, and some people got hurt.”
On Wednesday Misurata fell under the control of forces opposed to the Gaddafi regime but it is unclear who was responsible for the attack on the CNPC site.
China’s trade with Libya centres mainly on oil, but the $6.6bn in bilateral trade also includes companies in a wide range of other businesses, thanks in part to China never having imposed sanctions on the Gaddafi regime.
State media say more than 30,000 Chinese citizens were present in Libya at the time of the attack.
Many of them are thought to be construction workers involved in infrastructure projects.
One Chinese railway worker delivered a dramatic account of an attack on a company camp via microblog posts on Chinese website Sina.
Raiders set fire to equipment and cars and injured Chinese workers in an attack on Monday night, said the blogger known as “Happy Xufeng,” posting pictures of the inferno as well as desperate calls for help.
“We are in great danger,” he wrote on Monday night.
“Chinese companies in Libya are in a state of emergency, our projects are being raided and communications are down.”
By Wednesday the blogger, an employee of China Railway 11th Bureau, reported that he and his compatriots were being evacuated to safety.
The turmoil in the Middle East has posed a difficult set of questions for Beijing, testing its policy of diplomatic non-interference and challenging China’s interests in the resource-rich region.
China, the world’s second-largest oil consumer, typically imports about 150,000 barrels of crude a day from Libya, a small fraction of the country’s demand.
Oil experts in Beijing have said that unrest across the Middle East is likely to prompt Chinese authorities to accelerate oil purchases in an effort to fill reserves, a move that would put further pressure on global supplies of crude.
“Recent events made them very nervous and they believe the oil price may be on an upward trend, so better to buy sooner rather than later,” said K F Yan, director of IHS Cera in Bejing.
“With or without events in the Middle East, China needs to refill the tanks after depleting supplies at the end of 2010. These events will accelerate the rate of tank-filling in the first quarter.”
The Chinese government does not disclose information about how or when the tanks are to be filled.
CNPC, a state-owned company that did some of its earliest overseas projects in Africa, entered Libya in 2002.
The company has had a tortuous relationship with the Libyan government, which in 2009 rejected CNPC’s attempt to acquire Verenex, an oil and gas company with assets in Libya.

Nervous China puts security apparatus into overdrive

By Geoff Dyer in Beijing

Sitting last week in his cramped Beijing flat just beyond the city’s fifth ring road, Teng Biao talked about a joke he used to share with Liu Xiaobo, the imprisoned activist who won last year’s Nobel Peace Prize.
Mr Liu would tease him about his ability to continue working as a human rights lawyer without being sent to jail.
“Doing this type of work, we can never be afraid of being jailed,” said Mr Teng.
“But if you are in prison, you cannot do things.”
The joke is not looking so funny now.
On Saturday, Mr Teng was called in to talk to the local police and as of Wednesday evening, he had still not reappeared, swallowed up somewhere in the city’s labyrinthine security bureaucracy.
The police came later to his flat and took the two laptops that he spent his days crouched in front of.
“Why don’t you come in for a cup of tea?” is the euphemism that often accompanies such a police summons. Some young wits have even invented a new character that combines the symbol for tea with the similar character for interrogation.
The normal routine is a few hours of questioning over, yes, some tea, followed by a rap on the knuckles.
Yet in the past few days, after an online call to bring a “Jasmine Revolution” from the Middle East to China began circulating, the system has gone into overdrive.
According to human rights groups, more than 100 activists have had their movements restricted since last Friday.
Among them, five lawyers, including Mr Teng, have been detained.
As it happened, no real protest met the first call for action on Sunday.
A large crowd assembled outside a McDonald’s in central Beijing, but most were passers-by who thought the foreign television cameras meant celebrity sightings.
There were no chants, no slogans, no banners.
Yet that has not stopped the security forces from launching a sweeping crackdown.
Watching the tragicomic ranting of Libya’s Muammer Gaddafi or the scenes from Cairo, the near-universal view among China-watchers is there is little chance of something similar in Beijing, if nothing else because of China’s far superior record for competence.
So why does the government look so nervous?
And why are lawyers bearing the brunt of the backlash?
One explanation is that beneath the surface of China’s non-stop economy, there is much more unrest than meets the eye.
There have certainly been some powerful warnings.
Yu Jianrong, an influential scholar at the Chinese Academy of Social Sciences, last year warned of an upsurge in “venting incidents”, unauthorised outbursts of public rage, often about land disputes.
Such perceptions have empowered the state security apparatus, which has seen large increases in budget and personnel.
In truth, this crackdown is only the latest in a series that stretches back to the March 2008 Tibet riots, taking in the Olympics, the 60th anniversary of Communist China in 2009 and last year’s Nobel Peace Prize. Beijing’s political activists have grown wearily used to the constant harassment.
Activist lawyers have been targeted precisely because they have started to channel some of these resentments.
Teng Biao described last week the gradual narrowing of space that he and his colleagues enjoy.
He used to help run the now-shut non-profit Open Constitution Initiative, an organisation that did work on forced abortions and illegal land seizures.
Last year, he founded a new group to campaign on death penalty cases, an area where the government has signalled it is keen to push reform.
But his wife watched at the weekend as police took away case files for this organisation too.
There is an ideological element too to the move against lawyers, a post-Lehmans drift away from western ideas of rule of law.
Legal experts say there is renewed support for civil cases to go to mediation, a process conducted by a Communist party official, rather than to court – party wisdom trumping the law.
Yet if Mr Yu’s research has helped raise anxieties, the official response has been the opposite of what he preaches.
The real risk for China was not unrest, but the “rigid stability” of an unbending political system, which was bottling up social tensions.

Wednesday, February 23, 2011

Calls for a ‘Jasmine Revolution’ in China Persist

By IAN JOHNSON
BEIJING — A small but stubborn protest movement is continuing calls for demonstrations despite a campaign of arrests and censorship that underscores China’s concern over unrest and revolts in authoritarian countries in the Middle East and North Africa.
According to the Hong Kong-based Information Center for Human Rights and Democracy, three people were detained for “inciting subversion of state power” after they reposted calls for protests last weekend.
The detentions could not be confirmed independently, but they follow roundups of scores of dissidents and rights lawyers.
Some well-known lawyers who handle sensitive cases were placed under house arrest and some beaten badly, according to human rights activists.
Activists, possibly from outside China, have called on citizens in China to express their displeasure at the country’s lack of reforms and officials’ corruption by silently meeting in front of department stores or other public areas for a “Jasmine Revolution,” a named borrowed from the Tunisian revolt that set off the Mideast unrest.
Organizers have now called for the protests to continue each Sunday, and gave a list of spots in a dozen major cities where people could “go for a stroll” this coming Sunday at 2 p.m.
Because the calls are made via Twitter and other services widely blocked in China, they circulate only to those who know how to bypass Internet censors.
But Chinese authorities have been responding with their customary zeal.
On Sunday, a protest in Beijing was overwhelmed by police officers.
And the word “jasmine” has been blocked on popular social networking sites and chat rooms.
The authorities might have a hard time eradicating the word completely.
Jasmine is also the name of a popular Chinese folk song.
It was supposedly the favorite of China’s previous leader, Jiang Zemin, who asked it to be played at the 1997 handover of the former British colony, Hong Kong, to China.
In addition, videos exist of China’s current leader, Hu Jintao singing the song while on a trip in Africa.
Some of these videos were posted on social networking sites, forcing censors to have to decide if they should take down videos of senior leaders that could be explained as an expression of patriotism.
“The real story is the indirect ways that Chinese citizens can use music and historical meaning to make this incredibly subversive statements, to take a most popular folk song and post it,” said Sharon Hom, executive director of New York-based Human Rights in China.
“The point is there is an information crack and it is growing.”

What could bring down China’s rulers?

By David Pilling

Sooner or later, all dynasties, even Chinese ones, come to an end.
The Qin dynasty, which marked the start of imperial China in 221BC, lasted but 15 years.
The Han, Tang, Song, Ming and Qing dynasties were far more enduring.
But even they came and went.
The same will happen to the latest dynastic incarnation – the People’s Republic of China, which has held for 62 years.
No one knows when, or how, the Communist party will lose power.
China’s burgeoning wealth and growing international clout contain little obvious portent of imminent crisis.
By the standards of its tumultuous and tragic history, China is having its best run in hundreds of years.
But the Communist party itself – forever jumping at shadows – remains ultra-vigilant to the slightest hint of opposition.
Its jitteriness was on full display this week in its heavy-handed crackdown on human rights lawyers and on last Saturday’s sub-Tahrir “Jasmine revolution”.
In a previous column, I argued that the events in Egypt – and now Libya – did not resonate much in China. That was partially borne out by the scant response to an online call for a protest in cities across China.
My colleague said the gathering outside a McDonald’s in Beijing – of all the places to start a Mickey Mouse revolution – was more like a meeting of the Foreign Correspondents’ Club, so heavily did journalists outnumber protesters.
But the state’s reaction – thuggish and out-of-proportion – makes me wonder.
If there is really no appetite for rebellion in China, what is there to be so afraid of?
More than 100 lawyers and activists have had their freedom curtailed, according to human rights groups. Jason Ng, a Beijing-based blogger, compared the authorities to “ants in a hot wok”.
He reported that Renren.com, a social networking site, designated the word “tomorrow” sensitive the day before the aborted “revolution”.
On the big day itself, “today” was treated as suspect.
Now the call has gone up for weekly protests.
What could go wrong for the Communist party?
Its legitimacy, at least in the past 30 years, stems almost entirely from its spectacular economic performance. That makes a faltering economy, and the social unrest that might follow, by far its biggest concern.
With 10 per cent growth, you would have thought it could relax.
But there are underlying concerns. One is inflation.
The consumer price index, which rose 4.9 per cent in January, has stayed stubbornly above its 4 per cent target.
Although the pace moderated last month, a persistent rise in food prices is a big concern in a country where food makes up 30 per cent of an average household’s spending.
The government has brought inflation under control before.
It is taking aggressive action again, raising interest rates three times since October.
But inflation could be stubborn.
Labour shortages, partly due to demographics, threaten accelerated wage rises.
The head of one company complained, with a touch of hyperbole, that “workers are God now”.
Another inflationary threat comes from ballooning money supply.
Despite recent efforts to rein in lending, M2, which includes money in circulation and bank deposits, has risen more than 50 per cent in two years.
Banks have been shovelling out credit, increasing off-balance sheet lending as a way around tighter controls. A slowing economy could expose non-performing loans.
Much credit is going to infrastructure.
The building binge has moved decisively inland.
Like dozens of other cities, Zhengzhou, capital of the poor inland province of Henan, is alive with cranes.
A recent elevator ride inside one of its sleekest towers revealed a near-total absence of occupants.
On most floors, the elevator shaft was blocked with wooden boards.
A high-speed rail link has opened between Zhengzhou and Xi’an, in Shaanxi province, cutting the six-hour journey to two.
But the sleek train ejects its passengers 18km outside Xi’an itself.
The assumption is that Xi’an will spread out towards the station.
If it does, China’s planners will be hailed as geniuses.
But if growth slows, such Pharaonic projects might look a tad ambitious.
The dismissal of the railways minister on suspicion of “severe disciplinary violations” does not look good.
The Communist party is hypersensitive to the problems that could arise if credit-fuelled growth stalled.
The so-called “Wen Jiabao put” – the assumption that the government will ensure high growth until the political transition in 2012 – is likely to hold.
Growth at 10 per cent covers numerous sins.
But even at this pace, it cannot hide the concomitant social ills: land confiscations that are vital to state finances, corruption and a yawning wealth gap.
One woman in Chongqing complained that the ideal of taxation – “kill the rich, nurture the poor” – had been abandoned by a state that was spoiling its wealthy progeny.
An academic said: “I believe more and more people realise this economic success cannot be sustained.”
If that is true – even with the economy growing at full pelt – imagine what might happen in a slowdown

China blocking North Korea nuclear report


China is the North's closest ally and has sought to protect the Pyongyang regime
UNITED NATIONS (AFP) — China on Wednesday refused to let the UN Security Council publish a report on North Korea's nuclear sanctions busting, diplomats said.
The sanctions panel report calls for tougher implementation of sanctions against North Korea and outlines progress the isolated Stalinist state has made with its uranium enrichment, according to diplomats.
The report says the uranium enrichment is a new violation of UN sanctions imposed after North Korea said it staged nuclear bomb tests in 2006 and 2009.
The 15-nation Security Council on Wednesday discussed the North Korea nuclear case at a closed hearing but China again refused to allow the normal publication of such reports, diplomats said.
"Many council members are pushing for its publication on the grounds that it is important that all UN member states get access to the findings and recommendations to improve compliance," said one diplomat, speaking on condition of anonymity.
He said just one country was blocking publication and other diplomats confirmed that it was China blocking the release.
China is the North's closest ally and has sought to protect the Pyongyang regime on the international stage while seeking to restart six nation talks on the nuclear program.
Diplomats said that China's action was strange as a Chinese expert, Xue Xiaodong, has signed off on the report.
The report says North Korea has at least one secret nuclear military site, and that subterfuge work was probably started in the 1990s without raising suspicions, according to diplomats who have seen the document.
It is based on evidence from US scientist Siegfried Hecker, who was taken to a secret site by the North Korean authorities last November.
Hecker has told of seeing hundreds of centrifuges when he went to the Yongbyon nuclear complex.
The report quoted him as saying North Korea must have had foreign help to build the facility, one diplomat told AFP on condition of anonymity.
The United States and other Western nations among the Security Council's 15 members have called for tougher sanctions on Pyongyang.

Arab Revolts as Viewed From Beijing

By DIDI KIRSTEN TATLOW
BEIJING — The popular uprisings in the Arab world are shaking China.
Unable to dismiss events in Tunisia, Egypt, Bahrain and Libya as U.S. plots, or “color revolutions,” since they appear to work against U.S. interests in some marked ways, a deeply nervous Chinese Communist Party is closely studying causes and outcomes.
So are China’s democrats, who hope to bring change here, too.
What will eventually emerge from these contradictory interests is unclear.
Much depends on whether the revolts prompt party leaders to begin long-delayed political changes to stave off growing social disaffection, analysts say.
“What happened in Egypt raises so many issues for China’s leadership,” said one well-connected Chinese political analyst who insisted on anonymity, out of fear of challenging the government in the current atmosphere.
The party is asking, “How did they do it?” he said.
More broadly: “How should the government react? How do you respond to people’s grievances and how long can you ignore them, without facing a confrontation?”
Political change was part of the plan in 1978, when China began market-oriented economic changes.
But it went into deep freeze after the crushing of the 1989 Tiananmen Square democracy movement.
Surging economic growth since then has emboldened the ruling elite to argue that China does not need political change.
Many middle-class and wealthier Chinese, the beneficiaries of that economic growth, agree.
Yet China is a big country, and opinion diverges.
Even the government concedes that China shares many of Egypt’s problems, like rampant corruption, social injustice, a growing wealth gap and inflation.
Democracy advocates point to a large, well-financed internal security apparatus that behaves, in the words of Jerome Cohen, an U.S. expert on China’s legal system, “like storm troopers.”
Last weekend, the tension building in Beijing since Feb. 11, the day President Hosni Mubarak of Egypt was forced to step down, bubbled over among both government officials and democrats.
A sign came early Sunday, when the dozen police cars and trucks newly parked outside the Egyptian Embassy were upgraded to a large People’s Armed Police bus carrying about 30 helmeted riot police officers.
Black sedans parked at odd angles on the street disgorged men in black, almost certainly plainclothes security agents, who loitered.
“Nothing has happened, nothing at all,” a police officer said, shooing me down the road.
“We were ordered here by our superiors to guard the embassy.”
Against what?
He refused to answer.
Last week, an anonymous call to protest that same Sunday appeared on Boxun, a U.S.-based Web site of China news that is blocked in China.
People able to circumvent the Great Firewall with overseas-based Twitter spread the word of a “Jasmine Revolution” set for 13 cities across the nation.
At the appointed time, a couple hundred people assembled outside a McDonald’s in Beijing, though the police and spectators may have outnumbered protestors.
The scene repeated itself on a smaller scale in Shanghai, and barely — if at all — in other cities.
The government had struck the day before, rounding up scores of high-profile dissidents, human rights groups said.
Still, the gatherings Sunday marked the arrival of the wired revolution in China, 22 years after the failed Tiananmen Square uprising.
Like a coma patient waking and twitching his fingers, the event was small, but its significance large.
A call is now circulating online for weekly gatherings, same time, same place.
China’s rulers are caught between fear of a Soviet Union-style collapse if they begin political reform, and an Egypt-style overthrow if they do not, the political analyst said.
“Some say, if you don’t engage in political reform, there will be disaster ahead,” he said.
“Others say, if you do, there will be disaster ahead.”
The government has not responded to the Arab uprisings with a political reform program.
But an emergency meeting of the Communist Party leadership last Saturday — played up the next day on the front page of People’s Daily, the party’s mouthpiece — suggested it was badly spooked.
At the meeting, President Hu Jintao addressed central and provincial-level party leaders from across the nation.
All nine members of the ruling Politburo Standing Committee were present.
The aim, he said, without mentioning the uprisings, was “to correctly grasp the new changes and new characteristics of the domestic and international situation.”
The party must “improve people’s livelihoods” and “strengthen and blaze new trails in social management,” he said, repeatedly.
He mentioned “blatant social conflicts.”
The overall message: Continue creating wealth, but improve governance.
“This speech comes from commanding heights,” said Vice President Xi Jinping, the heir apparent who led the meeting, in case anyone missed the point.
Yuan and Hua, a middle-class couple, are typical of those the government must impress if it is to maintain power.
Their attitudes toward the state mix criticism with support, and they asked that their full names not be used, to protect their identities.
Recently returned from a holiday in Egypt, Hua joked that they chose Egypt for his first trip abroad “because it’s even older than China.”
Chinese are proud of their cultural longevity, and the fact that Egypt’s uprising happened in a culture even older than their own, and therefore presumably not politically naïve, means it is not easily dismissed here.
Egypt’s autocrats, like China’s, tried to argue that their citizens were culturally unsuited to democracy.
“All dictators say that,” Yuan said dismissively.
But in other, important, ways, the differences between the countries are clear.
The economy is one.
“Our tour guide said something I think is very true,” said Hua.
“He said, ‘We are still stuck in the 1980’s, while you have grown rich in the last 30 years.”’
There’s another difference.
“Egypt’s army didn’t shoot the people,” she said, using her fingers to mime protesters and soldiers maintaining their distance as they moved.
Then she crashed the fingers of one hand into the other.
“That is what our army did. That is how they are.”
Today, the People’s Armed Police, not the army, deals with domestic unrest.
Deployed to brutal effect in Tibet in 2008, and Xinjiang in 2009, no one knows how it might react to a major uprising in China’s heartland cities.
Few here want to test it.
Col. Muammar el-Qaddafi’s vow this week to crush the revolt in Libya like “the tanks came and crushed” the Tiananmen protests in 1989 is a horrific reminder of the stakes.
Many hope for change, while remaining skeptical the government can look beyond its own interests and grant it.
“A lot is up to the leaders,” said the analyst.
“It’s a huge test of their will, vision and courage, and even their patriotism. If you truly love China and think of the people, this is the time to look at what they really need and want.”