I t has been 12 days since trawler captain Zhan Qixiong left home to fish on the East China
Sea, where generations of
Chinese fi shermen have made
a living. But Zhan would never
have expected the events of
last Tuesday — when he and
his boat were seized
in waters off China’s
Diaoyu Islands by
Japan’s coast guard
— that triggered the dramatic
changes in his life.
His 85-year-old grand-
mother — who was recovering
from an earlier fall — died last
Wednesday hours aft er hearing
of his arrest.
“She was fi ne when I called
her in the morning,” relative
Zheng Feng told China Daily.
“But she got a lot worse aft er
she heard the news.”
Zhan, 41, and 14 other
crew members of the Min-
jinyu 5179, were taken into
custody in the early hours last
Wednesday, sparking strong
protests by the Chinese gov-
ernment and campaigners
calling for their release.
SEE “ISLANDS” PAGE 6
CHINADAILY
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COVER
STORY
MONDAY,September 13, 2010
Nation
Schwab rules
out double dip
for economy
World Economic Forum founder
optimistic about China growth.
> PAGE 2
Nation
Straits deal
will boost
trade ties
Sweeping agreement targets
tariff s and commercial barriers.
> PAGE 3
OFFICIAL MEDIA
PARTNER
OF EXPO 2010
SHANGHAI
In this issue
NATION ................................................ 2-5
COVER STORY ....................................... 6
COMMENT ......................................... 8, 9
WORLD ............................................ 10-11
BUSINESS .......................... 13, 14, 16, 17
LIFE ....................................................... 21
SPORTS ............................................... 23
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国内统一编号:CN11-0091 国际标准编号:ISSN0253-9543 邮发代号:1-3
© 2010 China Daily All Rights Reserved Vol. 30 — No. 9475
EXCLUSIVE | ROBERT ZOELLICK
PROVIDED TO CHINA DAILY
Zhan Qixiong, captain of the seized Chinese fi shing trawler
Minjinyu 5179, was arrested by the Japan Coast Guard last
Wednesday and brought to Ishigaki to face prosecutors.
Japan ‘must make
wise resolution’
Arrest brings calamity to
trawler captain’s family
Domestic consumption
‘key to solve trade rows’
By BAO DAOZU
CHINA DAILY
BEIJING — The Japanese
ambassador was summoned
in the early hours of Sunday
by State Councilor Dai Bing-
guo who urged Tokyo to make
a “wise political resolution”
and release the detained Chi-
nese fi shermen and their boat
immediately.
Dai, the highest-ranking
Chinese official to protest so
far over the arrest of the boat’s
captain, the detention of the
crew and seizure of the vessel,
warned Japan against mis-
judgment, and “expressed the
Chinese government’s grave
concerns (over the incident)”,
according to a Foreign Minis-
try statement.
Japanese Ambassador
Uichiro Niwa said he would
report the Chinese position to
his government, according to
the statement.
In a sign of the growing ten-
sion between the two countries,
this was the fourth time Beijing
had summoned the Japanese
ambassador since the seizure of
the trawler by the Japan Coast
Guard in waters off China’s
Diaoyu Islands last Tuesday.
Japan’s Kyodo News Agency
called it an “unusual” and
“rare” move to exert pressure
on Tokyo.
Meanwhile, Japan on Sunday
morning towed the Chinese
fi shing boat — with members
of the Japan Coast Guard on
board and a Japanese vessel
closely following — to an area
near Ishigaki island in Oki-
nawa prefecture to reenact the
circumstances when the trawl-
er reportedly collided with two
Japanese patrol ships.
Foreign Ministry spokes-
woman Jiang Yu said on Sunday
that “China is fi rmly opposed to
any kind of investigation by the
Japanese side on the illegally
detained Chinese trawler”.
Jiang reiterated that such
behavior is “illegal, invalid and
futile” and stressed that the
“unconditional and immedi-
ate release of the detained
Chinese citizens was the only
way to settle the dispute”.
The dispute has escalated
since the Chinese trawler was
intercepted, followed by the
arrest of the Chinese captain
on suspicion, according to
the Japanese, of obstructing
offi cers on duty.
A Japanese court in Ishigaki
on Friday allowed prosecutors
to keep the captain in custody
until Sept 19 before decid-
ing whether to press charges
against him despite China’s
strong opposition.
In response, China
announced on Friday that it
would postpone talks sched-
uled earlier with Japan on the
East China Sea issue. Th e talks,
scheduled for mid-September,
would have been the second
governmental meeting over
territorial disputes in that
area.
“Japan will reap as it has
sown, if it continues to act
recklessly,” Jiang said on Friday,
without further elaboration.
An official in the Japanese
prime minister’s offi ce said it
was “regrettable that a post-
ponement (of the talks) was
announced unilaterally,” the
Kyodo News Agency reported.
And the Japanese government
SEE “JAPAN” PAGE 2
By DING QINGFEN
CHINA DAILY
XINGYI, Guizhou — Eco-
nomic “rebalancing”, shift ing
from export-driven growth to
one led by domestic consump-
tion, off ers one of the best ways
for China to ease trade friction
with the US, the World Bank
president told China Daily on
Sunday.
Regarding possible trade
disputes between China and
the US, World Bank President
Robert Zoellick urged both
sides to tread carefully because
protectionist measures were
“quite dangerous”.
US Treasury Secretary Tim-
othy Geithner is due to face a
US Congressional hearing this
week on possible steps that
could be taken against China
over its exchange rate policy.
House of Representatives
Ways and Means Committee
Chairman Sander Levin said
“the large and persistent US
trade imbalance with China
is a major contributor to global
imbalances, costing the US
jobs and economic growth”.
A number of US lawmakers
in both the House and Senate
are pushing for legislation that
would allow the Commerce
Department to impose duties
on Chinese goods to offset
what they consider as China’s
currency “undervaluation”.
Th e important thing for both
China and the US is to “keep
the market open, not to close
it”, Zoellick said.
He predicted that the US
economy will register “slow
growth” and be troubled by
“relatively high unemploy-
ment rates”. Yet it faced no risk
of “double-dip recession” this
year, he said. But slow growth
will “add to sensitivities” in
Sino-US trade and China
should resort to economic
rebalance to reduce friction.
“Rebalancing can be signifi -
cant in dealing with trade and
other anxieties globally. That
means China could shift from
its heavy reliance on export
growth to greater domestic
consumption,” he said. But he
admitted “it’s not easy”.
China posted a third straight
trade surplus of more than $20
billion in August, according to
statistics released last Friday by
the General Administration of
Customs. Th is sparked specu-
lation that the US would be
pressing China to increase the
value of its currency.
Declining to comment on
moves by the US, Zoellick
nonetheless said “it’s important
to see the currency issue in the
context of many other issues,
including domestic consump-
tion and the internationaliza-
tion of the renminbi”.
“It is also important to let
this (rebalancing) become a
point of strong vision that will
lead to action that helps the
global economy get out of the
fi nancial crisis.”
According to the National
Bureau of Statistics, China’s
industrial output in August
surged 13.9 percent from
a year earlier, higher than
previously estimated. Many
economists said the latest
figure sent a signal that the
Chinese economy is gaining
momentum despite eff orts to
curb the real estate bubble.
Zoellick praised China
for the “stabilizing factor” of
its stimulus program and its
impressive growth during the
SEE “LOANS” PAGE 2
Inside
Constructive role with China,
page 9
Stern warning for Tokyo against
misjudgment over Diaoyu Islands
WU ZHIYI /CHINA DAILY
World Bank President Robert Zoellick attends a welcome ceremony at Xianahui village in southwestern Guizhou province on
Sunday. The ethnic Bouyei village has benefi ted from a program fi nanced by World Bank loans to preserve its unique culture.
Friends of detained fi shermen wait anxiously for news.
Wei Tian reports from Jinjiang in Fujian.
Nation
Governor
eyes Expo in
Silicon Valley
Schwarzenegger wants to learn
from Shanghai experience.
> PAGE 4
PAGE 2 |
nation
24 / 32
24 / 32
26 / 32
26 / 32
24 / 33
26 / 33
25 / 33
24 / 32
24 / 31
26 / 30
25 / 33
24 / 32
23 / 31
26 / 35
26 / 35
23 / 27
23 / 26
25 / 30
27 / 32
26 / 32
26 / 32
24 / 32
24 / 32
24 / 27
24 / 28
25 / 31
26 / 33
11 / 29
8 / 20
20 / 29
21 / 29
MONDAY
TUESDAY
20 / 32
19 / 29
10 / 19
7 / 21
TRAVELER’S FORECAST
Chengdu
Urumqi
Beijing
Xining
New
Delhi
Kathmandu
Thimphu
Yangon
Singapore
Jakarta
Kuala Lumpur
Bangkok
Vientiane
Ulaanbaatar
Shanghai
Bandar Seri
Begawan
Macao
Hong
Kong
Guangzhou
Manila
Hanoi
Taipei
Seoul
Pyongyang
Tokyo
Lhasa
CHINA
AMERICAS
SEPT 13-14MON - TUE
LOW/HIGH TEMPERATURES, IN DEGREES CELSIUS,
AND EXPECTED CONDITIONS
C Cloudy
D Drizzle
Du Dust
F Fog
O Overcast
R Rain
Sh Shower
S Sunny
Sn Snow
St Storm
T Thunderstorms
weather
ASIA-PACIFIC-MIDDLE EAST
EUROPE
BuenosAires 12 / 16 C 10 / 15 O
Chicago 14 / 20 S 11 / 19 S
Caracas 26 / 33 T 26 / 33 T
Houston 24 / 34 Sh 23 / 33 C
Las Vegas 22 / 30 S 23 / 32 S
Los Angeles 15 / 21 C 15 / 21 S
Mexico City 13 / 25 T 12 / 24 T
New York 18 / 25 Sh 18 / 26 C
Ottawa 10 / 20 Sh 9 / 18 Sh
Rio De Janeiro 20 / 28 C 20 / 29 S
San Francisco 13 / 22 C 13 / 23 C
Sao Paulo 16 / 30 S 15 / 29 S
Vancouver 12 / 18 Sh 14 / 20 C
Washington 17 / 28 Sh 17 / 29 S
Athens 19 / 28 O 19 / 30 C
Berlin 12 / 19 C 10 / 17 O
Brussels 10 / 19 C 9 / 17 C
Geneva 8 / 19 Sh 6 / 17 C
Istanbul 18 / 24 Sh 17 / 25 C
London 13 / 20 C 15 / 22 O
Madrid 14 / 33 S 15 / 33 S
Moscow 10 / 22 C 11 / 23 C
Paris 10 / 21 C 9 / 20 C
Rome 17 / 30 C 16 / 27 C
Vienna 14 / 23 O 12 / 21 O
CHINA
AFRICA
20 / 27
20 / 28
Cairo 24 / 33 C 22 / 31 S
CapeTown 11 / 23 C 12 / 22 S
Johannesburg 11 / 28 S 11 / 29 S
Lagos 23 / 30 T 23 / 29 C
Nairobi 11 / 27 C 12 / 26 C
Abu Dhabi 23 / 42 D 23 / 42 R
Bangkok 26 / 33 T 25 / 33 C
Colombo 25 / 30 T 26 / 31 T
Dubai 30 / 44 C 30 / 43 S
Hanoi 26 / 32 T 25 / 29 R
Islamabad 20 / 33 Sh 20 / 34 C
Jakarta 24 / 32 Sh 24 / 32 C
Karachi 27 / 32 C 27 / 32 C
Kuala Lumpur 24 / 33 T 24 / 33 T
Manila 26 / 32 T 26 / 32 T
Mumbai 25 / 31 T 25 / 31 C
New Delhi 26 / 30 Sh 25 / 33 O
Pyongyang 18 / 28 C 19 / 29 C
Riyadh 26 / 42 S 27 / 42 S
Seoul 20 / 27 C 20 / 28 C
Singapore 26 / 32 T 26 / 32 C
Sydney 5 / 19 Sh 6 / 17 Sh
Teheran 19 / 30 C 20 / 32 C
Tokyo 24 / 32 O 23 / 31 C
Wellington 10 / 14 Sh 11 / 15 O
Yangon 24 / 32 T 24 / 31 T
Beijing 20 / 32 S 19 / 29 S
Changchun 16 / 28 S 17 / 29 S
Changsha 22 / 29 D 23 / 31 D
Chongqing 23 / 32 C 24 / 33 C
Dalian 20 / 27 S 20 / 26 S
Fuzhou 26 / 35 S 27 / 35 C
Guangzhou 25 / 31 Sh 26 / 33 C
Guilin 25 / 32 Sh 25 / 33 Sh
Guiyang 18 / 23 Sh 18 / 25 Sh
Haikou 23 / 32 T 24 / 33 C
Hangzhou 24 / 29 Sh 24 / 29 Sh
Harbin 15 / 30 S 16 / 31 S
Hefei 22 / 28 T 22 / 27 T
Hohhot 14 / 28 S 15 / 28 C
Hongkong 25 / 30 Sh 27 / 32 Sh
Jinan 20 / 31 S 20 / 30 S
Kunming 16 / 24 Sh 16 / 22 Sh
Lanzhou 16 / 30 S 16 / 27 S
Lhasa 10 / 22 C 12 / 23 O
Lijiang 14 / 20 R 14 / 22 Sh
Macao 24 / 30 Sh 26 / 31 C
Nanchang 24 / 30 Sh 24 / 30 Sh
Nanjing 22 / 29 C 23 / 28 Sh
Nanning 25 / 31 R 24 / 32 Sh
Qingdao 22 / 29 S 22 / 28 S
Sanya 25 / 31 R 25 / 32 Sh
MONDAY, SEPTEMBER 13, 2010
Shanghai 24 / 27 R 24 / 28 R
Shenyang 16 / 29 S 16 / 29 S
Shenzhen 25 / 32 Sh 26 / 32 C
Shijiazhuang 19 / 31 S 19 / 31 S
Suzhou 23 / 27 T 23 / 27 T
Taipei 26 / 35 Sh 26 / 35 Sh
Taiyuan 15 / 28 S 16 / 27 S
Tianjin 21 / 32 S 20 / 32 S
Urumqi 10 / 19 D 7 / 21 C
Wuhan 22 / 30 Sh 23 / 30 C
Xiamen 26 / 33 C 25 / 33 S
Xi’an 20 / 30 C 21 / 30 C
Xining 7 / 27 S 11 / 24 C
Yantai 20 / 28 C 19 / 27 C
Yinchuan 14 / 28 S 16 / 27 S
Zhengzhou 19 / 30 S 19 / 29 S
Zhuhai 24 / 31 Sh 25 / 32 C
briefl y
Source: National Bureau of Statistics ZHANG YE / CHINA DAILY
8.7%
CPI TREND SINCE JAN 2008
0
4
8
%
Jan
08
Jan
09
Jan
10
Aug
CPI growth
XINJIANG
Cold sweeps
into Northwest
A cold front sweeping
across Northwest China’s
Xinjiang Uygur autonomous
region on Sunday will bring
gusty winds and lower tem-
peratures across northern
China.
Over the coming three
days, temperatures will drop
8 to 12 degrees in northern
Xinjiang and in the western
parts of both Gansu province
and the Inner Mongolia
autonomous region, the
National Meteorological Cen-
ter forecast on Sunday.
Light to medium rain will
fall on northwestern Xinjiang
on Sunday and bring frost to
northern areas of Xinjiang
over the next two days, the
forecast said.
HENAN
Man stabs eight
on a train
A knife-wielding man
attacked eight people aboard
a train in Central China’s
Henan province on Sunday,
killing one and injuring seven
others before being captured.
Th e attack occurred at
12:20 am on train No K862
traveling from Lanzhou,
capital of Gansu province,
to Wuhan, capital of Hubei
province, according to
Henan’s Zhengzhou railway
bureau. Th e injured were
taken to three hospitals in
Henan’s Luoyang city, but
their injuries are not life-
threatening.
A preliminary investiga-
tion revealed the suspect has
psychological problems that
may have caused the tragedy,
police said. Police are inves-
tigating how the knife passed
through the security check at
the railway station.
TIBET
Repairs start
on monastery
China is spending 46 mil-
lion yuan ($6.8 million) on
the preservation of the Sera
Monastery in Lhasa, capital
of Southwest China’s Tibet
autonomous region.
Built in 1419 in northern
Lhasa, the monastery needs
repairs, said Losang Jigme,
Tibet’s top offi cial in charge of
religious aff airs.
Th e preservation work
will keep the monastery’s
original style, he said at a
ceremony marking the start
of the repairs on Saturday.
Th e project is expected to be
completed next year.
SHIJIAZHUANG
Six killed by
fi reworks
Six people were killed and
four wounded when fi re-
works exploded at a village
recycling station in North
China’s Hebei province on
Saturday, local authorities
said Sunday.
Th e accident occurred in
Qianying village of Dingzhou
city at 3:30 pm Saturday. A
preliminary investigation
showed the explosion was
caused by the illegal storage
of fi reworks at the station.
Local police said they will
continue to investigate the
accident.
XINHUA
By XIN ZHIMING
CHINA DAILY
BEIJING — The world
economy has good chances of
avoiding a double dip recession
and the Chinese economy could
expand by about 10 percent this
year, said Klaus Schwab, found-
er and executive chairman of
the World Economic Forum.
“I’m not one of those who feel
the world will have a double dip,”
he said ahead of the Summer
Davos Forum meeting, which
opens on Monday in Tianjin
municipality. “I’m fairly opti-
mistic. I think we have learned
from the crisis.”
Also, yuan appreciation
would not help narrow the
trade deficit of China’s major
trading partners, such as the
United States, he told China
Daily on Friday.
While the developed econo-
mies remain weak, there is
hope for the emerging market
economies, he said. “Europe
and Japan certainly, with a
high level of debt, will have
quite a number of years of slow
growth. But I’m quite optimistic
for emerging countries, particu-
larly for China and India.”
With economists already
concerned
about a
widespread
weakening
of the global
economy,
the US could
be a detri-
ment to the
global effort
to revive the
economy, he
said.
The US
Federal
Reserve observed “widespread
signs” that economic growth
had eased in the six weeks to
the end of August, according to
its Beige Book report, suggest-
ing the recovery was faltering in
some parts of the country.
But the US is a very “entrepre-
neurial” economy, Schwab said.
“We can be fairly optimistic
that the US could come back
to close to 3-4 percent growth
in the near future. I think it’s a
resilient economy.”
China would be a major
engine driving the global
growth with an annual growth
rate of about 10 percent. “Chi-
na’s growth may decelerate to
a certain extent, maybe going
below 10 percent, 9.8 percent
or even 9.7 percent this year.”
But he said: “Going down
from 11 percent to 10 percent
is not a catastrophe,” he said.
“Th e economy is well managed
by the Chinese government and
we see that the latest indicators
show that exports picked up
again (in August).”
China’s trade surplus nar-
rowed to $20 billion in August,
compared with $28.7 billion,
thanks to expanding imports,
which amounted to $119.2 bil-
lion, up 35 percent year-on-year.
Its exports, however, continued
to grow by 34 percent, which
could provide the US congress
with ammunition to demand a
fast yuan appreciation.
Schwab said the US could
have miscalculated the effect
faster yuan appreciation would
have on trade, citing the 2005-
2008 period, during which the
yuan rose by about 21 percent
against the dollar but the
US trade deficit with China
increased.
“It’s a very complex issue…
Th e eff ect of yuan revaluation
on the US trade defi cit was not
recognizable,” he said.
Guo Jingwei contributed to this
story.
PHOTO BY SHENG LI / REUTERS
Customers shop for vegetables on Saturday at a supermarket in Shenyang, Liaoning province. China’s consumer price index (CPI)
rose 3.5 percent in August from a year earlier to a 22-month high.
By WANG XIAOTIAN
AND HU YUANYUAN
CHINA DAILY
BEIJING — Despite a recent
increases in the consumer price
index (CPI), China’s economy
maintained stable growth in
August while showing concert-
ed growth in industrial output,
investment and consumption,
analysts said.
CPI, the major gauge of infl a-
tion, rose by a 22-month high
of 3.5 percent in August year-
on-year, 0.2 percentage points
higher than the rate in July, said
the National Bureau of Statistics
(NBS) on Saturday.
It grew by 0.6 percent in
August on a month-on-month
basis, 0.2 percentage points
higher than July, said the
bureau.
Justin Yifu Lin, chief econo-
mist of the World Bank, said at a
forum in Beijing on Sunday that
the Chinese economy is moving
in the right direction.
He estimated China’s eco-
nomic growth could reach 9.5
percent this year, but it may
slow to 8 percent next year.
Sheng Laiyun, spokesman of
the NBS, said the CPI increase
was mainly attributable to a
surge in food prices, which
climbed 7.5 percent year-on-
year in August and which
account for about one-third of
the index’s weighting.
“Price increases of agricul-
tural products contributed 70
percent of the acceleration if
we rule out the infl uence of the
lower basis in 2009,” he said.
Sheng said factors leading
to the decrease of the CPI in
the coming months may still
overwhelm further increases,
because grain storage will be
abundant and the supply of
industrial products always
exceeds public demand. “If the
government can manage infl a-
tion expectations in a proper
manner, the formerly-set target
of maintaining infl ation below 3
percent through the whole year
is very likely achievable.”
Th e producer price index, a
major measure of inflation at
the wholesale level, rose by 4.3
percent in August from a year
earlier, declining from
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