Chinese Mandarin - Historical Course in Diplomacy

Historical Course in Diplomacy

     During the past 50 years, China's independent foreign policy runs
through all foreign affairs in different historical periods, and embodies
development and change in a series of key Sino-foreign relations.

     From entering an alliance with the former Soviet Union to rebuilding
the relationship.

     The People's Republic of China, born in the campaigns against
imperialism, feudalism and bureaucratic capitalism, suffered imperialist
hostility, blockade and armed threat at the very beginning. Only some
socialism countries headed by the former Soviet Union and some
neighboring countries supported China at first. Therefore, China entered
an alliance with the former Soviet Union, which had given great economic
and technological assistance to China's economic construction in the
1950s. But at the end of 1950s, contradictions and conflicts between the
two counties became increasingly intensified. In addition to disputes
concerning ideology, the main difference was on the great-power
chauvinism and hegemonism pursued by the Soviet Union. China refused its
demands that damaged China's sovereignty. In July 1960, the Soviet Union
decided to unilaterally tear up economic and technological cooperation
agreements between the two countries, withdraw Soviet experts out of
China. So, the alliance was broken. After 1965, in particular, the Soviet
Union employed more than one million soldiers along the Sino-Soviet and
Sino-Mongolian borders. The Chinese people rejected this great pressure
with dauntless spirit. The confrontation lasted for more than 20 years,
until early 1989, when leaders of the two countries met in Beijing and
normalized relations.

     After the disintegration of the Soviet Union, China and Russia
re-established a new kind of relationship on the basis of the Five
Principles of Peaceful Co-existence on historical experiences and
lessons. They don't ally or confront with each other, nor do they direct
against any third country. The new relations, developed into a strategic
partnership later, have been operating satisfactorily for years.

     In June 1950, the Korean War erupted, as north and south split. The
United States immediately declared it would assist the southern side with
arms. It also sent its Seventh Fleet to the Taiwan Straits, publicly
interfering in China's internal affairs. The Chinese government repeated
its strong protests against the aggressive act, but was ignored. In
September the same year, the war spread to China's border on the Yalu
River. In October, the Chinese government, at the requirement of the
North Korean government, sent Chinese People's Volunteers to resist US
aggression. In June 1951, the Chinese and Korean armies moved forward and
stabilized the battle line on the 38 degrees north latitude, which became
the demarcation line between North and South Korea. The move forced the
US to accept armistice talks. Through two years of war and negotiations,
the commander-in-chief of the US army was finally forced to sign on the
truce agreement. "I am the first commander-in-chief in American history
signing an armistice without winning the war," he acknowledged later.

     The United States adopted a hostile policy towards China for 22
years. In February 1972, former President Nixon visited China, beginning
the process of normalization of relations between the two countries. The
two countries formally established diplomatic relation in January 1979.
During the period, three joint communiques were signed. The United States
acknowledges that there is but one China, and the People's Republic of
China is the sole legal government of China, and Taiwan is part of China.
Meanwhile, the US made commitments to break off diplomatic relations with
Taiwan, withdraw its military personnel from there, and suspend the
Mutual Defense Treaty between the US and Taiwan.

     Geneva Conference resulting in peace in Indochina.

     In April 1954, initiated by the former Soviet Union, the Geneva
conference was held to discuss the issues of Korea and Indochina.
Participants included foreign ministers of China, the former Soviet
Union, the United States, Britain and France. The late Premier and
Foreign Minister Zhou Enlai went to the meeting as China's chief
representative. China, for the first time, took part in a key
international conference as one of the big nations to discuss major
issues. The Chinese delegation conducted active foreign diplomatic
activities and promoted the signing of the agreement that France would
withdraw its military personnel from the three countries of Indochina, so
as to restore peace in the region, and acknowledge the national rights of
Viet Nam, Laos and Cambodia. As a result, the colonial wars lasting for
many years waged by France were ended. According to world opinion,
suggestions put forward by Zhou Enlai were the most encouraging hope
during the conference lasting for seven weeks and a half.

     Afro-Asian conference and consolidation and cooperation with the
Third World countries.

     In April 1955, the Afro-Asian conference was held in Indonesia.
Representatives were heads of states or governments from 29 countries
which shared the same historical experiences. Major topics of the
conference were to safeguard world peace, strive for national
independence and develop national economy. The late Premier Zhou Enlai
led the Chinese delegation to participate in the meeting. Given the
situation that the imperialists attempted to disrupt the conference, and
the existing contradictions and differences between nations, Zhou Enlai
strikingly put forward the principle of "seeking common ground while
reserving differences". He appealed to the participants to put aside
their differences concerning ideology and social systems, and strengthen
cooperation in the common interests of opposing colonialism. These moves
helped the meeting acquire complete success. The joint communiqu� setting
forth Ten Principles passed by the meeting actually reflected and
extended the Five Principles of Peaceful Coexistence jointly initiated by
China, India and Myanmar. The meeting is an important milestone for
Afro-Asian countries' great union, their fighting for national
independence and safeguarding world peace.

     Following the conference, Zhou Enlai three times visited Afro-Asian
countries between the end of 1956 and the beginning of 1964, to spread
the seeds of friendship, consolidation and cooperation. The moves won
sympathy and support from Third World countries. As a result, many
foreign countries set up diplomatic relations with China one after
another, with the number reaching more than 50 at the end of the 1960s.
All of the countries were from Asia, Africa and Latin America, except for
France.

     On October 25, 1971, the 26th Session of the United Nations General
Assembly, with the mutual efforts of most Asian, African and Latin
American countries, broke through the obstruction of the United States
and passed the resolution on the resumption of all legitimate rights of
the People's Republic of China in the United Nations and the expulsion of
the Chiang Kai-shek regime's representatives from UN.

     It was the Third World countries that asked China to enter the UN,
said Mao Zedong after the event. At the end of 1978, a total of 110
countries had established diplomatic relations with China.

     Opening to the outside world and striving for a world peace
environment benefiting the modernization construction.

     Chinese leader Deng Xiaoping said repeatedly when China entered the
new period of reform and opening up that there had always been war crises
in the past. Since the Third Plenary Session of CPC 11th Central
Committee in 1978, things changed. Although the danger of war still
existed, the force to restrict war was a heartening development. It was
now possible to strive for a long-term peace, and to avert world war. He
also pointed out that China's foreign policy was targeted at striving for
world peace. Under this premise, the country would wholeheartedly conduct
modernization construction. In terms of foreign relations, the country
would further institute its opening up policy, and, on the basis of the
Five Principles of Peaceful Coexistence, set up and develop foreign
relations and economic and cultural relations with all countries.

     During the past two decades, China's foreign exchanges, under the
guidance of reform and opening up policy, extended to many fields of
economic and social lives in an unprecedented range and scope. In
international affairs, China does not conduct ideological arguments.
China respects political systems and development roads chosen by peoples
of other countries. Based on the Five Principles of Peaceful
Co-existence, China will establish and develop normal national relations
with all countries. The two decades saw the number of countries setting
up diplomatic relations with China rising from 110 to 163.

     Under the principles of equity and mutual benefit, taking advantage
of each other's strengths, friendly cooperation and common development,
foreign exchanges have developed from the political and legal sectors to
the fields of economy and trade, science and technology, culture,
education, public health, information spreading, tourism and environment.
Diplomatic activities expanded from governmental to parliamentarian,
non-governmental, military, human rights and political parties sphere,
forming a new pattern of diplomacy.

     Through these exchanges China absorbed all beneficial foreign
civilization achievements, promoted domestic socialist modernization
construction, played an active role in participating in international
affairs, scored contributions to promoting world peace and development,
and exhibited a big country image of being peaceful, friendly, stressing
principle and responsibility.

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Chinese language - Culture

Culture

    New China has witnessed in the past 50 years a tortuous development
of its literature and art. The first Congress of Literary and Art workers
held in 1949 set into motion what was known as "socialist art cause". In
1956, the Central Committee of the Chinese Communist Party put forward
the principle of "let one hundred flowers bloom and one hundred schools
of though contend", a policy that promoted the development of arts.
Things were in good shape up to 1966, when the "cultural revolution"
broke out, with the exception of the excessive Anti-Rightist Movement of
the late 1950's, which implicated a big number of writers and artists.
During the 10-year "cultural revolution", many excellent works were
labeled as "poisonous weeds", and writers and artists were persecuted,
leaving China's garden of literature and art barren.

     Since 1978, China has seen a revival of artistic creation. Great
progress has been made in the following areas:

     1. The country's art performance troupes have been revamped as part
of the effort to reshape China's cultural establishment.

     This effort has achieved major breakthroughs over the last 20 years
of reform and opening up. Since 1992, the Ministry of Culture, the
country's chief regulator of cultural affairs, has responded to the
Party's call to deepen structural reforms of cultural institutions by
focusing first on performance groups directly under the central
government. Measures taken include redefining the relationship between
the State and the troupes by introducing performance-related subsidies,
and redefining the relationship between the performance groups and
performers by linking employment with performance. Thanks to the
effective reforms, the number of performance groups directly under the
central government has been reduced from 13 to 10, but annual
performances by those troupes increased from nearly 400 of the pre-reform
period to 1,928 in 1997. Financially, these troupes put an end to
loss-making and posted a profit of 7.43 million yuan in 1997. This
experience served as a model to be applied nationwide for reforming art
troupes of various sizes.

     Art education and culture-related science and technology have also
undergone readjustments, and pilot programs have been undertaken in
promoting rural cultural reforms and reorganizing popular cultural
institutions.

    2. Artistic creation has flourished.

     To promote art development, the government has since 1987 held five
Chinese art festivals featuring time-honored stage performances. These
festivals have been hugely successful thanks to the participation of
professional artists and the public at large. In 1991 the Ministry of
Culture launched the Wenhua Award -- the highest award for professional
artists given by the government. Recipients of that award include Grandpa
Shangang, Remote Town, Barren land and The Geologist.

     In stage productions, the government protects and supports classical
art such as orchestral music, opera and music plays, and traditional
Chinese arts such as Peking Opera. The most popular shows include the New
Year's Peking Opera Night and the Chinese New Year Party organized by the
Ministry of Culture. In 1997 alone, 417,000 shows were staged attracting
a audience of 464 million.

    3. A cultural market is fast emerging.

     The reform program has given rise to a booming cultural market. That
market encompasses performances, books, newspapers and magazines, fine
arts, films, audio and video products, entertainment, historical relics,
Sino-foreign cultural exchanges and art training. Meanwhile, problems
have arisen along with the booming market. In 1993, a national working
conference was held on regulating the burgeoning cultural market. At that
meeting, the principle of "attaching equal importance to cultural
prosperity and market regulation" was set forth. A series of related
policies and regulations have been formulated and promulgated since. The
promulgation of the Regulations on Commercial Performance Administration
in 1997, in particular, represented a major milestone in cultural market
legislation. Over the past years, a planned and step-by-step effort to
tackle problems in the cultural market has been made and the result has
been good. The macro-control measures taken to regulate the performance
market, in particular, have created a positive market environment for the
growth of traditional Chinese arts and classical Western arts. The
rearrangement of the audio and video market has resulted in an obvious
increase in the market share of authentic products. Since January 1997, a
program-supply system has been introduced to ensure that video projection
rooms all over the country play only authentic films, thereby ensuring
the healthy development of the market.

     Statistics show that by 1997 there were 257,378 business entities
nationwide affiliated with cultural institutions, employing 1,160,385.
That market represents not only a place for entertainment but also a
source of employment and tax revenue. The cultural industry, as part of
the service industry, is playing an increasingly important role.

    4. Impressive progress has been made in the development of ethnic
minority cultures.

     To support the cultural development of ethnic minorities, the
Ministry of Culture has mapped out a series of preferential policies for
building cultural facilities in minority-inhabited areas, training ethnic
artists, conducting cultural exchanges with foreign countries, and
preserving cultural relics. With the assistance of the government, all
the ethnic groups in China have formed their own art troupes. By 1997
those troupes numbered 526, including 59 singing and dancing troupes. In
addition, there were 596 libraries, 658 cultural centers and 134 museums.
The Ministry of Culture allocates more than 10 million yuan to
minority-inhabited areas for building cultural facilities. To encourage
artistic excellence, the government set up a Peacock Prize for ethnic
artists, so far 166 have won the prize.

     Also, 24 institutions of higher learning and secondary schools
nationwide are designated to train minority artists. To support the
cultural development of Tibet, for example, the Ministry of Culture
mobilized 14 provinces and municipalities to aid Tibet's cultural
development. The first 15 projects alone involved nearly 50 billion yuan
of aid.

    5. Art education has been strengthened.

     Currently, the country now has 30 institutions of higher learning
devoted to art education, with a combined enrollment of 6,673 students
and a staff of 21,284. In addition, 137 secondary schools employ 13,959
staff members with an enrollment of 68,594. These schools have produced
such great Chinese artists as singers Guan Mucun and Dong Wenhua, as well
as comedians Shi Fukuan and Jiang Kun.

    6. The cultural infrastructure has been consolidated.

     The reform and opening up program has given rise to the emergence of
a host of hallmark cultural facilities in various localities. These
include the National Library of China (the largest in Asia; dedicated in
October 1987); the museums of Shaanxi, Shanghai, Henan and Tibet; the
libraries of Shanghai, Jiangxi, Fujian and Inner Mongolia; the Changan
Grand Theater of Beijing and Tianhe Book Trading Center of Guangzhou. In
1997 alone, 1,043 cultural infrastructure projects were under
construction, involving a construction area of 4.5 million square meters.
By the end of that year, 361 projects had been completed, with a
construction area of 934,000 square meters and a total investment of 2.84
billion yuan. The Ministry of Culture alone undertook more than 30
projects, most involving over 10 million yuan each. Eight projects
involved more than 100 million yuan each. The construction of a National
Opera House is under way, and a number of provinces and cities have built
their own opera houses and concert halls.

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Learn Chinese online -

Developing Sino-US economic and trade relations serves the fundamental
interests of both peoples. Following the establishment of diplo"imatic
relations between the People's Republic of China and the United States,
bilateral economic and trade ties have grown fast, featuring complement
and mutual benefit. Occasionally, however, frictions and differences took
place. At present, the issue of bilateral trade balance -- much too
stressed and even exaggerated by the United States -- has hindered the
healthy development of economic and trade relations between the two
countries. It has also caused concerns among relevant countries and
regions. In our bid to develop Sino-US relations and promote bilateral
trade, we think it necessary to make clear the position and viewpoints of
the Chinese Government on the issue.

I.Soaring Trade Between China
and the United States

In January 1979, the People's Republic of China and the United States
established formal diplomatic relations. Six months later, the
governments of the two countries signed the ``Agreement on Trade
Relations Between the People's Republic of China and the United States of
America'' granting each other the most-favoured-nation trading status.
Since then, Sino-US trade and economic relations entered a period of fast
growth. According to Chinese statistics, Sino-US trade volume was 2.45
billion US dollars in 1979 but rocketed to 42.84 billion US dollars in
1996, with an accumulative volume of 260.6 billion US dollars over the
past 18 years. The United States became China's third largest trade
partner in 1979, and rose to the second place in 1996. According to US
statistics, bilateral trade was 2.37 billion US dollars in 1979 and
topped 63.5 billion US dollars in 1996, totalling 376 billion US dollars
in the past 18 years. Among trade partners of the United States, China
ranked the 24th in 1980 and claimed the fifth place in 1995. Despite
statistical discrepancies, trade figures of the two sides both suggested
an average annual bilateral trade growth rate of more than 18% over the
last 18 years. This has been the mainstream in the development of Sino-US
economic and trade relations.

Chinese statistics indicate that, in 1996, US products accounted for
11.6% of China's total imports, while US statistics show 5.42% of its
imports last year came from China. The United States is one of the
fastest growing markets for Chinese exports while China is also one of
the fastest growing markets for US exports. Both countries' statistics
suggest that between 1990 and 1996, US exports to China grew by more than
16% a year on average, far exceeding the overall US export growth in the
period. China is one of its trade partners with which the United States
scored the highest export growth. This is mainly attributable to the
marked differences in the two countries' resources, economic structures,
industrial setup and consumption levels, and to the fact that their
economies can be complementary to each other. China is a developing
country with low labour costs, but suffers from capital constraint and
relatively under-developed scientific and technological development. The
United States is a developed country with abundant capital and highly
advanced technologies, but suffers from high labour costs. China mainly
sells to the United States labour-intensive products such as textiles,
garments, shoes, toys, electric home appliances and luggage. The United
States mainly sells to China capital- and technology-intensive products
such as aircraft, power generation equipment, machinery, electronics,
telecommunications equipment and chemical machinery, as well as
agricultural products including grain and cotton. So complementary and
mutually beneficial is the structure of their exchanges of goods that it
has greatly pushed the development of bilateral trade.

The sustained growth of Sino-US trade has played an active part in the
economic development and creation of jobs in the two countries. For the
United States, its direct exports to China alone have created 300,000
jobs while bilateral trade development has created at least 1 million
jobs for the US industry and service sectors, and such a trend is marked
by a continuous growth from year to year. China's relatively low labour
costs have cut the prices of daily necessities such as shoes, garments
and toys on the US market, and have helped easing inflation in the United
States, bringing practical benefits to US consumers. A 1994 World Bank
report noted that US consumers would have had to spend an extra 14
billion US dollars per year if the United States had had to import
similar products from other countries instead of China. For China,
millions of workers are involved in the processing and assembling
business for exports to the United States. This has promoted the economic
development of China's coastal areas. China's imports of some relatively
advanced technological products from the United States also help its
modernization.

Sino-US trade is marked by two characteristics: the bulk of the trade is
conducted through entrepot trade and processing trade. Both China's
exports to the United States and US exports to China are largely
conducted through a third partner, mainly the Hong Kong region, while an
overwhelming majority of China's exports to the United States are
processed products -- finished goods made of imported raw materials,
auxiliary parts or primarily-processed items. The domination of entrepot
and processing trade has promoted the fast growth of Sino-US trade
volume, but, at the same time, resulted in a relatively large deviation
between the statistics and reality of trade figures of the two countries.

Apart from trade exchanges, US investment in China has also witnessed
extensive development. By the end of 1996, 22,240 projects with US
investment had been launched in China with a committed investment volume
of 35.17 billion US dollars. Paid-up investment in those projects
totalled 14.29 billion US dollars. Excluding the regions of Hong Kong and
Taiwan, the United States is the second largest investor in China, next
only to Japan. In the mean time, US service exports to China also have
recorded fast development.

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