From: gaojeng@durras.anu.edu.au (J. Gao)
Newsgroups: aus.culture.china
Subject: China News Digest (Global), Thu, 11/12/1992
Date: 12 Nov 92 11:30:08 GMT
Organization: Australian National University
NNTP-Posting-Host: 150.203.22.8
Summary: CND
Keywords: CND

               * * *  C h i n a   N e w s   D i g e s t  * * *

                                (News Global)

                         Thursday, November 12, 1992


Table of Contents                                                 # of Lines
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1. News Brief (1 Item) .................................................. 11
2. China's Economy May Be Three Times Larger Than Official Estimates .... 65
3. Defying China, Hong Kong Legislators Back Political Reform ........... 24
4. Chinese Publishers Race to Cash in on Clinton ........................ 28
5. Chinese Citizens Keen to Snap up a Piece of America .................. 40
6. Market Reforms Give Shanghai a New Look .............................. 70
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1. News Brief (1 Item) .................................................. 11
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[DJ, 11/10/1992] BEIJING -- Unix System Laboratories Inc., an American
Telephone & Telegraph Co. (T) software company, said a consortium of six
companies from China and Dascom (Holdings) Ltd., a Hong Kong-based software
firm, have selected the Unix SVR4.2 operating system as the core technology
for establishing an "open Chinese operating system." In addition, Unix also
has formed a joint venture, Unix System Technology China, Ltd., created
under the sponsorship of China's Ministry of Machinery and Electronics
Industries, to provide customized Unix system development, training, and
support within China. Initially, the joint venture will concentrate on the
development of a localized version of Unix SVR4.2 for the Chinese
marketplace, and supplying SVR4.2 to the computer industry within China.
(Forwarded by: Liu Jian & Zhaohua)

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2. China's Economy May Be Three Times Larger Than Official Estimates .... 65
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Forwarded by: David Shu <MTE152S@vaxc.cc.monash.edu.au>
Source: Australian Financial Review, 11/9/1992
Written by: Michael Stutchbury

In 1979, Chinese officials pressured the World Band to concede that
published estimates of their economy's size were too high and ought to be
revised down.

The World Bank's then-current estimate of Chinese per capita Gross Domestic
Product -- US$410 -- put China above the cut-off income to qualify for its
most-subsidized lending to the world's poorest economies.

Since 1979, China's market liberalisation programme has seem national output
double. Reflecting the downward revision in 1979, however, the World Bank
puts China's 1990 per capita income at only $US370, placing China among the
world's 25 poorest economies.

But now, Guonan Ma and Professor Ross Garnaut of the Australian National 
University suggest that the World Bank were duped in 1979 and that China's 
economy may be two to three times larger than official estimates.

Rather than US$370, per capita Chinese income could be $US700-1,000, or 
more. Rather than a low-income country grouped with India and Haiti, this 
would make China a middle-income country approaching the per capita income of
Thailand. And it would make China the world's fourth largest economy, behind
Germany but ahead of Britain.

Guonan Ma and Garnaut point to many "straws in the wind" to support their
case.

*At 70 years, Chinese life expectancy at birth is far higher than usually
associated with other low-income countries, such as Pakistan and Ghana, whose
average life expectancy is 50-55 years. It is even higher than 60 years or so
for middle-income countries such as Egypt and Peru.

*According to trading partner numbers, Chinese figures appear to understate
its exports. Yet, on official figures, China exports about 15% of what it
produces, compared with 7% for the United States. Guonan Ma and Garnaut doubt
that China's export orientation is twice as large as for the US, again
suggesting that the Chinese GDP number is far too low.

*If Chinese production of basic commodities is valued at international prices
and divided by China's population, it soon adds up to more than official per
capita income.

China's per capita annual production of coal (one tonne) and grain (400Kg)
alone amounts to 40% of official per capita GDP. And this excludes China's
position as the world's largest cotton and textile producer and as a major
steel and oil producer -- let alone housing, transport and consumer
electronics.

*Penetration of consumer durables is higher than usual for countries with
China's reported per capita income. Watches, radios and sewing machines
are considered basic household goods in most parts of rural China.

*Chinese eating patterns are inconsistent with those of a low-income
developing economy.

Long-distance trade in high value food has developed within China. And per
capita consumption of food grain (such as wheat and rice) has fallen
slightly since peaking in the mid-1980s, while consumption of meat, eggs,
fish, liquor and milk has increased as income has risen.

Other East Asian economies (such as Taiwan, Singapore, Korea and Japan) went
through similar changes in food consumption in the early development
stages in the 1960s. But this occurs with per capita incomes many times
higher than reported today for China.

The comparison with Taiwan is particularly revealing, reflecting the origin
of the Taiwan-Chinese from the southern coast of the mainland.

When Guonan Ma and Garnaut plot Chinese and Taiwanese consumption of various
food items, they find a puzzling break. But, when they multiply official
Chinese income by three, the Chinese food consumption-income line merges
into Taiwan's.

The likelihood that the Chinese economy is two-to-three times larger than
suggested by official statistics has important implications for its future
pattern of growth - and for imports from trading partners such as Australia.

For instance, demand for "human" grains such wheat and rice is likely to
level off as more middle-income Chinese can afford a more varied and
expensive diet. But demand for "animal" grains such as corn, barley, sorghum
and soya bean could grow sharply: as the Chinese become richer, they will
eat more meat.

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3. Defying China, Hong Kong Legislators Back Political Reform ........... 24
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Forwarded by: Liu Jian
Source: AP-DJ, 11/6/92

HONG KONG -- In a blow to China's plans to scuttle political reforms in Hong
Kong, legislators voted late Wednesday to back Hong Kong Governor Chris
Patten's plans for increasing democracy in the territory in the run-up to
the Chinese takeover in 1997. 

Members of the Legislative Council voted 30-21 to offer "general support" to
Patten's sweeping constitutional reform package to increase voter
participation in the 1995 legislative elections. 

The victory for Patten comes after weeks of intense criticism of his reform
program by senior officials of the Chinese Communist Party. China fears a
democratizing Hong Kong because of the effect it might have on its own
people.

Legislators also rejected an amendment demanding a smooth transition to
Chinese rule and a post-1997 political structure satisfactory to both China
and Britain, concepts advocated by local allies of the Chinese Communist
regime. 

China says Patten's package violates previous Sino-British agreements and go
beyond the Basic Law and the spirit of the 1984 Joint Declaration under
which Hong Kong will be handed back to China. 

Chinese officials have warned that if Patten proceeds with his plans without
Beijing's approval, Beijing will replace the colony's existing government
despite promising Hong Kong "a high degree of autonomy" for at least 50
years after the takeover. 

The next showdown in the Legislative Council should come early next year,
when members vote on the specifics of Patten's package. 

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4. Chinese Publishers Race to Cash in on Clinton ........................ 28
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Forwarded by: Chongyu Hua <cyuhua@ncsa.uiuc.edu> & Wenfeng,
Source: UPI, 11/11/1992  
Written by: John Leicester

BEIJING -- Aware that President-elect Bill Clinton is largely unknown in
China, Chinese publishers are racing to cash in on Chinese curiosity about 
the future U.S. leader.

The Democratic candidate's Nov. 3 election victory was a windfall for 
Chinese publishers who have rushed to buy copyrights on Clinton biographies
and get their Chinese translations into bookstores.

"Time is money," said Shi Jiandi, editor of a Chinese version of "Bill 
Clinton: The Inside Story" by American author Robert E. Levin. "We must 
publish the book now," said Shi.

Arkansas Gov. Clinton was largely unknown in China until his victory over 
George Bush, a former U.S. envoy to Beijing and widely familiar to Chinese 
as an "old friend" of Beijing.

"All Chinese know who the newly elected president is, but don't know 
anything about Bill Clinton," said Shi. "I want every Chinese to know
Bill Clinton and how he was brought up."

The state-run Press and Publishing Administration Bureau bought the book
rights from Shaposky Publishing Inc. based in New York.

Shi said he aims to get the 307-page book on shelves early next month while 
Chinese interest in Clinton is high and ahead of a rival book, "The Life 
and Career of Bill Clinton, the Comeback Kid," translated from the English 
by the New China Press.

"Our book will be first," said Shi, who said he expected the first print 
of 10,000 copies to be a "best-seller."

Shi, however, could not say if Clinton, who warned of tougher U.S. policy 
against "tyrants from Baghdad to Beijing" during the presidential race, 
would get on with China's Communist leadership.

"I only know about the book," said Shi. "The politics is none of my 
business."

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5. Chinese Citizens Keen to Snap up a Piece of America .................. 40
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Forwarded by: Liu Jian
Source: JAPAN ECONOMIC NEWSWIRE, 11/11/1992

BEIJING -- Scores of Chinese citizens flocked to a luxury Beijing hotel
Wednesday, eager to snap up a unique opportunity to own a piece of America
and perhaps thereby obtain an elusive U.S. visa.

In a scheme called "Own A Piece of America," a U.S. real estate firm is
offering customers 50 square inches of land, 1 square inch (6.452 square
centimeters) in each of America's 50 states.

The scheme is the brainchild of American Acres Inc., which is offering more
than six million of the tiny parcels of land to global customers to
commemorate the 500th anniversary of the arrival in America by Christopher
Columbus.

China has been allocated 100,000 plots, with around 5,000 available to
Beijing residents, said a spokesman for the scheme's Beijing distributor,
Tianwaitian Industrial Development Corp.

At 3,600 Chinese yuan (650 dollars) a pop, the chance to own a tiny piece of
America is not cheap, but potential buyers say their motive has little to do
with Columbus and his epic voyage.

"I'm hoping that by purchasing this land, I can go to the U.S. Embassy here
and immediately receive a U.S. visa," said a middle-aged Chinese
representative of a foreign corporation, who asked not to be named. "I am
checking my American contacts to see whether ownership will entitle me to a
visa," he said.  "If not, I will not go through with the purchase." His
words were echoed by several interested buyers crammed into a room at
Beijing's Jinglun Hotel.

"Obtaining an American visa is almost impossible at present, so anything is
worth a shot," one young man said.

Contacted by telephone, a spokeswoman from the U.S. Embassy's Consular
Section said such a purchase would not help in a visa application.

"There is no link between owning a parcel of American land and obtaining a
visa stamp," she said.

Nevertheless, one distributing company official admitted the underlying
motive of many potential customers was visa-related.

"I don't deny that many people hope to obtain an American visa through the
purchase, but the scheme is not linked to visa applications," he said,
adding that status and commemorative value are the selling points his
company is keen to stress.

Buyers will receive various documents confirming the legality of their
purchase, he said, pointing to several impressive certificates hanging on
the hotel room wall.

It is unclear how much profit the U.S. and Chinese companies will make from
each sale.

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6. Market Reforms Give Shanghai a New Look .............................. 70
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Forwarded by: Wenfeng
Source; IPS, 11/11/1992

Known as the "Paris of the East" before the Communist took over in 1949,
Shanghai suffered decades of state neglect as the government in Beijing
punished it for a swinging past as a showcase of Western "decadence." 

But with China's recent move toward economic reforms, the coastal city of 13
million is getting a new lease in life. 

Shanghai's old city center on the west bank of Huang Po river -- where the
expatriate community used to frolic in imposing mansions and swanky shops
and night clubs -- is being refurbished to bring back at least some of its
former glamour. 

But the heart of Shanghai's rebirth lies across the river in Pudong, where
a major residential and industrial development project is rising from what
used to be partly swampland. 

Linking the past with the future is the Nanpu Bridge, which was inaugurated
just last year. These days, it is China's best-known bridge, its grey steel
cables and two white H-shaped towers earning the admiration of both the
locals and foreign visitors. 

For those involved in its design and construction, Nanpu represents an
astonishing example of technological transfer. China has built several cable
bridges before but as German bridge engineer Holger Svensson put it, Nanpu
was "by far the longest an big leap forward in terms of technology". 

By linking the city's overcrowded west bank with the fast- developing Pudong
New Area on the east bank, Nanpu is playing a significant role in China's
transition from a centrally-planned economy to a market-oriented model. 

Since 1990, Pudong has been a key area in which economic liberalization
measures are being implemented to attract foreign investment. 

But before Nanpu was built, inadequate transportation links was a major
hindrance in developing Pudong. Commuters could cross the river only by two
tunnels or by ferry. 

Commuter traffic between Shanghai's halves has intensified since. In January
this year, 12,000 vehicles used Nanpu daily. By June, that number had risen
to 17,000. 

To meet the surge, the Shanghai Transit Company now runs 54 buses to Pudong.
The buses handle some 70,000 people crossings daily, says Shanghai Transit
director Du Zhu Wei. 

Much of Pudong is still under construction, with huge open pits, bulldozers
and cranes amid the jumble of steel and bamboo. 

But the still-unfinished 198-sq mile industrial zone -- aimed at foreign
hi-tech manufacturers -- has would-be tenants lining up. Indeed, about 40
firms are already doing business in Pudong. 

As more companies settle in, commuter traffic is expected to increase some
more. For that, Shanghai officials are building another cable bridge, the
Yangpu, due to open by the end of 1993. 

The Chinese enlisted technical help from Japanese and U.S. consulting firms
in constructing Nanpu, but they are doing Yangpu mostly on their own. Local
officials hope the same successful transfer of technology will happen in
Pudong's industrial zone. 

Both bridges have been supported by the Manila-based Asian Development Bank
(ADB). The $238-million Nanpu project won a $70-million ADB loan. The bank
also helped mobilize $43 million in commercial co-financing for the bridge. 

ADB is expected to approve an $85-million loan for the $250-million Yangpu
and help secure $79 million in commercial co-financing. 

Families and businesses have had to be moved to make way for the roads
approaching the bridges. The Nanpu project involved moving some 4,200
households and 130 businesses. 

Yangpu meanwhile entails relocating 3,595 households and 87 businesses. The
costs of acquiring land, paying compensation and providing new housing for
Yangpu alone is estimated to reach $67 million. 

Surveys under both projects showed that over 95 percent of the people were
willing to relocate. For most, it has meant moving from small, old
dwellings without indoor toilets to modern flats with better facilities. 

Factory employee Zhou Ping and her family moved to a new apartment in
January. She says she doesn't miss their old apartment where they "had to
empty a pail every morning". But, she adds, some elderly folk "miss the
friends next door they used to sit and talk with". 

But if the bridges have separated old friends, they have brought younger
people together. 

A local daily recently reported more than 60 percent of Nanpu's visitors
are courting couples. They happily pay three yuan each just to catch a
breeze on stifling summer nights on the bridge, or watch the busy river
traffic beneath them. 

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