Publisher’s Pronouncements (Feb 2021)
January 30 2021
by Gregory J. Hugh, Publisher – CEO, China Insight, Inc.
Now that Joseph R. Biden has been inaugurated as the 46th president of the United States, the country needs to unite again after experiencing a tumultuous period under the previous administration leading to a tragic demonstration at the nation’s capital on Jan. 6.
Garden fundraising
30 January 2021
By William Zajicek, contributor.
The St. Paul-Changsha China Friendship Garden, located in Phalen Park, Saint Paul, is seeking additional funds ($160,000) to complete Phase I of the garden construction and begin Phase II.
CNY do’s and don’ts
30 January 2021
By Elaine Dunn, China Insight.
Feb. 12 will be start of the Year of the Ox, which, according to Chinese tradition, is a symbol for wealth. So … here are a few tips on how to ring the year in the Chinese way.
App deadline for CGM
30 January 2021
by Elaine Dunn, China Insight.
The Chinese American WWII Veterans Recognition Project enters its fifth year with great anticipation for the award ceremony of the Congressional Gold Medal to more than 3,000 veterans who have applied for, and confirmed for this honor.
local national speedskating champion
30 January 2021
by Elaine Dunn, China Insight.
Whether the 2022 Winter Olympics will take place as planned in Beijing or not (China Insight, January 2021) is anyone’s guess at this point, but to the many hopeful participants, their training and laser-sharp focus are on getting to one of the three medal-winning podiums in their event in whatever city it may take place.
CGM
January 3, 2021
By Greg Hugh.
It has been a long and uncertain journey, but Chinese American veterans who served their country in World War II were finally awarded the Congressional Gold Medal on Dec. 9, 2020.
Efforts to enact the Congressional Gold Medal Act for these Chinese American veterans first began in December 2016. An exploratory committee led by the Chinese American Citizens Alliance (CACA) set out to secure the support of members of Congress. The bill, first introduced to the Senate and the House of Representatives in May 2017, was ultimately passed on and signed by President Donald Trump Dec. 20, 2018.
NY Chinatown images
December 31, 2020
by China Insight.
While air travel is still risky health-wise and lockdowns are common, here is a chance for us to “travel” and see New York City’s Chinatown.
The Museum of Chinese in America (MOCA) and the Center for Jewish History (CJH) are co-hosting a new online exhibition, “An Unlikely Photojournalist: Emile Bocian in Chinatown,” at https://exhibits.cjh.org/bocian.
Beijing 2020 Olympics
December 31, 2020
by Elaine Dunn, China Insight.
The 2008 Summer Olympics in Beijing opened with great fanfare. It was China’s debut on the world stage, an opportunity to showcase its history, culture and its athletes to a global audience. Fast forward to the 2022 Winter Olympics. Once again, Beijing will be the venue. However, circumstances are quite different.
2021 Chinese Holidays
December 31, 2020
Compiled by China Insight.
China’s 2021 holiday schedule will, per tradition, include two week-long holidays: Chinese New Year, aka Spring Festival, which will take place Feb. 11-17; and the National Day Holiday, Oct. 1-7.
Society Fat Size
December 31, 2020
compiled by China Insight.
On Nov. 11, a netizen posted an image of an apparel size chart seen at a Taiwanese chain store in China, saying, “I was shocked when I saw this size chart at a RT-Mart today. Am I completely rotten?” That image and post went viral and it enraged the online community, causing the company’s China Division to issue a public apology the following day.
Garden202011
November 2020
by Bill Zajicek, president, Minnesota China Friendship Garden Society.

There were two large volunteer projects at the garden this summer/fall. As a result, the rock garden was completely weeded and mulched; the donor stanchion received a new coat of paint, the Hmong Heritage Wall was painted, and as a gift from the Minnesota Peony Society, nine peonies were planted: three each of herbaceous “Krinkled White,” herbaceous “America Red” and tree peonies (Fuji-Zome-Goromo, Renkaku, Tai Hai)!!!
HKU
November 2020
By Elaine Dunn

The Hong Kong University (HKU) appointed two mainland Chinese scholars to its governing council, one of whom is alleged to have direct ties to the Chinese Communist Party (CCP).
Book Review 202011
November 2020
By China Insight

You may notice the more-than-usual number of books included this issue. With Christmas giving around the corner and the snowy winter approaching, China Insight thought these titles may provide gift ideas or just material for a “good read” in front of the fireplace.
Enjoy!
GoodJob_Deed
November 2020
[ST. PAUL]
– Minnesota Department of Employment and Economic Development (DEED) Commissioner Steve Grove announced the #GoodJobsNow campaign with Rick Trontvet from Marvin Windows in Warroad and Traci Tapani from Wyoming Machine in Stacy.
Covid
October 2020
Like other com- munities, our Chinese American commu- nity has been hit hard physically, mentally and economically.
Fall Colors
October 2020
In this year of coronavirus, we can find joy in the beauty of nature and celebrate festival traditions with tastes of mooncake on the trail.
Publisher Pronouncement
October 2020
With the 2020 U.S national election approximately a month away, will Asian American voters make a difference in the U.S. political fabric?
Republicans
October 2020
The resolution “calls on all public of- ficials to condemn and denounce anti-Asian sentiment, racism, discrimination, and re- ligious intolerance related to COVID-19”
Canton Fair
October 2020
The 10-day virtual 128th session will go online from Oct. 15-24.

New research report calls for a shift of China’s development and growth model

BEIJING February 27, 2012 - China should complete its transition to a market economy -- through enterprise, land, labor, and financial sector reforms -- strengthen its private sector, open its markets to greater competition and innovation, and ensure equality of opportunity to help achieve its goal of a new structure for economic growth.

These are some of the key findings of a joint research report by a team from the World Bank and the Development Research Center of China’s State Council, which lays out the case for a new development strategy for China to rebalance the role of government and market, private sector and society, to reach the goal of a high income country by 2030.

The report, “China 2030: Building a Modern, Harmonious, and Creative High-Income Society”, recommends steps to deal with the risks facing China over the next 20 years, including the risk of a hard landing in the short term, as well as challenges posed by an ageing and shrinking workforce, rising inequality, environmental stresses, and external imbalances.

“China’s leaders have recognized that the country’s growth model, which has been so successful for the past 30 years, will need to be changed to accommodate new challenges,” said World Bank Group President Robert B. Zoellick.

“The case for reform is compelling because China has now reached a turning point in its development path. Managing the transition from a middle income to a high-income country will prove challenging; add to this a global environment that will likely remain uncertain and volatile for the foreseeable future and the need for change assumes even greater importance.”

“China has an opportunity to avoid the middle-income trap, promote inclusive growth, without further intruding on the environment, and continue its progress towards becoming a responsible stakeholder in the international economy,” he said.

The report lays out six strategic directions for China’s future: completing the transition to a market economy; accelerating the pace of open innovation; going “green” to transform environmental stresses into green growth as a driver for development; expanding opportunities and services such as health, education and access to jobs for all people; modernizing and strengthening its domestic fiscal system; and seeking mutually beneficial relations with the world by connecting China’s structural reforms to the changing international economy.

“Central to the report’s findings is the need for China to modernize its domestic financial base and move to a public financial system-- at all levels of government -- that’s transparent and accountable, overseen by fewer but stronger institutions, to help fund a changing economic, environmental, and social agenda,” Zoellick said.

“The reform agenda, with a stronger and more flexible financial sector, the promotion of innovation, and green growth as drivers of development, can lead to opportunities for creating new jobs and additional productivity within China as well as new opportunities for foreign firms.”

There is growing recognition, supported by the findings of the research report, that China’s growth will decline gradually in the years leading to 2030 as China reaches the limits of growth brought about by current technologies in its current economic structure. The report advocates Chinese policymakers should shift from a focus entirely on the quantity of growth to include the quality of growth as well.

The report makes the case for the government to redefine its role -- to focus more on systems, rules and laws -- to boost efficient production, promote competition, and reduce risks. It recommends redefining the roles of state-owned enterprises and breaking up monopolies in certain industries, diversifying ownership, lowering entry barriers to private firms, and easing access to finance for small and medium enterprises.

Reforms should include commercializing the banking system, gradually removing interest rate controls, deepening the capital market and further developing independent and strong regulatory bodies to support the eventual integration of China’s financial sector within the global financial system. Financial reforms in the next two decades should be decisive, comprehensive and well coordinated, following a properly sequenced roadmap. A priority is to liberalize interest rates according to market principles.

On land reform, priority should be accorded to protect farmers’ rights over agricultural land, expanding land registration and rental rights. To assist with labor reforms, changes in the residency permit system – the hukou – are a priority. While progress on hukou reforms will depend on fiscal reforms that balance revenue raising and spending authorities across different levels of government, it should begin and be completed by 2030.

To accelerate the pace of innovation, the report advocates greater efforts to build countrywide research networks, steps to improve the quality of tertiary education and links with global networks, supported by a stronger rule of law and intellectual property rights enforcement. It says such an open innovation system would be a prerequisite to benefit fully from global innovation links.

For China to advance the “going green” development agenda, it will need to look at long term market incentives to encourage enterprises and households to go green. This should include more public investments, and the better design and enforcement of regulations to complement market incentives, such as taxes, fees, tradable permits and quotas, and eco-labeling. China can establish itself as a global green technology leader by implementing stringent and effective policies to reduce greenhouse gas emissions. Stringent emissions reduction policies, such as carbon trading or carbon taxes, could spur innovation in green technologies.

To reverse rising inequality, the report says China will need to focus on a social protection system appropriate for China in 2030, with a special emphasis on the poor. It lays out the case for “flexicurity”. This can include reforms in pension and unemployment systems so workers have reasonable support in their old age or when jobless. This can ensure comprehensive coverage of pension insurance, especially for rural people and migrant workers in cities. The report also warns that extending the current level of urban services and social protection to rural residents and migrants -- well over half the population -- will pose a significant fiscal burden and should be implemented prudently.

To fund China’s priorities in the decades ahead, and to deal with external shocks, the report calls for further fiscal system reforms. These should include improving the efficiency of raising revenue and changing fiscal relations between different levels of government as well as strengthening the efficiency of public spending. There is untapped potential for revenues through higher taxes on energy consumption, taking dividends from state-owned enterprises, and levying taxes on personal incomes, motor vehicles, and property.

The report proposes a sequencing of reforms, as well as quick wins and actions to address short term risks. Support for reforms will be stronger if the plans are based on full participation throughout all levels of society. The biggest risk is that vested interests will try to thwart reforms.

As a key stakeholder on the global economy, China can consider how its structural reforms relate to rebalancing changes globally. China should support free trade and back a multilateral agreement on investment. China’s long-term interests lie in global free trade and a stable and efficient international financial and monetary system, relying on multilateral frameworks to help shape the global governance agenda.

China’s growing weight in world trade, the size of its economy and its role as the world’s largest creditor will make the internationalization of China’s renminbi inevitable. Acceptance of the RMB as a major global reserve currency will depend on the pace and success of financial sector reforms and opening of its external capital accounts.

For the full report and more information, visit: www.worldbank.org/china

Terms Of Use

Terms of Use All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without prior written permission of the publisher. For permission requests, contact the publisher, Terms of Use All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without prior written permission of the publisher. For permission requests, contact [email protected] with subject line “Permission request.”

About

CHINAINSIGHT (CI) is published monthly ((except July/August and November/December are combined) by China Insight, Inc., an independent, privately owned company started in 2001 and headquartered in the Twin Cities area of Minnesota.

CHINAINSIGHT is the only English-language American newspaper to focus exclusively on connections between the United States and the People’s Republic of China (PRC).

Our goal is to develop a mutual understanding of each other’s cultures and business environments and to foster U.S.-China cultural and business harmony.