Extracts. Sunday, December 17, 2000, updated at 11:41(GMT+8) Chinese Province to Close Polluting Enterprises East China's Anhui Province will, on January 1, close enterprises that fail to reach the national effluent standards during an upcoming provincial inspection of industrial enterprises. "Reaching the national effluent standard is the lifeline for enterprises," Vice Governor of Anhui Huang Yuezhong said. According to Huang, by the end of this November, the total amount of industrial pollutants in Anhui was the same as that of 1995, and 6,110 of the 6,275 industrial enterprises due to reach the effluent standard this year have so far achieved the goal. Huang also indicated that much remains to be done since there are still some enterprises lagging behind in curbing pollution. The inspection will be conducted on December 20-28. **** Sunday, December 17, 2000, updated at 10:39(GMT+8) Palestinian, Israeli Officials Meet on Reviving Peace Talks Senior Israeli and Palestinian officials met late Saturday as part of the underway contacts between the two sides to revive the Palestinian-Israeli talks, Israel radio reported. The meeting between Israeli Foreign Minister Shlomo Ben-Ami and caretaker Prime Minister Ehud Barak's senior advisor Gilad Sher on the one side, and chief Palestinian negotiator Saeb Erekat and chief of the Palestinian Preventive Security in Gaza Strip Col. Mohammad Dahlan on the other, was held at an undisclosed location in Israel. Ben-Ami met late Thursday night with Palestinian leader Yasser Arafat at the Erez checkpoint between Gaza and Israel and discussed ways of returning to the negotiating table. During their four-hour talks, Arafat hoped a final status agreement can be reached before U.S. President Bill Clinton leaves office in January next year. Also on Saturday, Erekat said that the Palestinian side wants to hold a summit with Israel and the United States to reach an accord on the final status of the Palestinian territories. Palestinian and Israeli officials have resumed contacts since last week which had stopped by the ongoing bloody clashes between Palestinian protesters and Israeli forces that broke out on September 28. **** Saturday, December 16, 2000, updated at 22:47(GMT+8) Government Solicits Public Opinion on Five-Year Plan The State Development Planning Commission (SDPC) Saturday, December 16, invited representatives from all walks of life across the country to voice their suggestions and advice on the drafting of the 2001-2005 Five-Year Plan. Participants include academicians, entrepreneurs, professors, servicemen, farmers, and officials at grassroots levels, representing more than 4,000 writers of suggestion letters, of whom the oldest is 86 and the youngest only 10. The discussions focused on the manufacturing sector, diversified ownership, marine development strategy, people's lives, agriculture and the rural economy, scientific and technological innovations, the strategy to develop western China, and herbal medicines. SDPC Minister Zeng Peiyan and other officials attended the meeting. "Public involvement and transparency in the process of codifying the Five-Year plan is not only conducive to scientific and democratic decision-making, but also to the implementation of the plan," Zeng said. In October, the SDPC launched a nationwide campaign to solicit public opinions on the five-year plan, which was echoed enthusiastically. A special group was set up to read the incoming letters. Some suggestions and advice of insight were relayed to the plan drafting panel for reference. The activity will continue through next spring when the National People's Congress convenes and examines the plan, Zeng said. **** World Needs 'Common Win' Economic Globalization The rapid development of the revolution of information technology has brought about a tremendous new leap of social productive forces, as well as an historic opportunity for re-depicting the global economy. In the 1990s, human beings have initiated a new industrial revolution characterized by the revolution of information technology and heralded the age for the accelerated development of economic globalization. There is so far not a universally acknowledged accurate concept about economic globalization. Generally speaking, it refers to the objective trend featuring the transnational flow and allocation of production factors emerged along with the development of social productive forces. The mature market economy needs constantly expanding domestic and international markets, this exactly constitutes an objective basis for the emergence of the phenomenon of economic globalization. Under the circumstance wherein the old international economic order dominated by developed Western countries has not been fundamentally changed, the direct cause of economic globalization, which has emerged against such a background, is the nature of unlimited added value and expansion of capital, therefore, it carries the nature of capitalism, however, economic globalization, characterized mainly by the market economy, is not tantamount to capitalism, because "the market economy is not tantamount to capitalism". Actively participating in the process of economic globalization is not equal to accepting "Westernization" and entering a "trap". Economic globalization does not mean the "victory of capitalism", but rather it implies the deepening of the interrelationship and interdependence of the whole world. Economic globalization involves both gains and losses and implies the coexistence of opportunities and challenges. Generally speaking, it brings both gains and losses, with gains outdoing losses, to the overwhelming majority of countries in the world. The benefits gained by developed nations are much greater than those of the developing countries, the least developed countries have not as yet gained any benefit from economic globalization, the developing countries should pursue the good and avoid the harm, seize the opportunity to promote development. Economic globalization has become an irreversible objective trend and an unavoidable reality. Nowadays, no country isolated from the outside world can get development. Humanity needs to transcend the restraint imposed by different regions, cultures and concepts of value and allow the market, not ideology, to guide the development of the world economy and trade. To extricate themselves from poverty and accelerate economic development, the developing countries need to actively participate in the process of economic globalization, and pursue benefits and avoid detriments. Otherwise, they would face the danger of "marginalization". Overall, economic globalization has provided developing countries with unprecedented development opportunities and brought conditions and chances for them to attract foreign capital and learn from advanced technology and management expertise; brought to them favorable external environment and conditions to make investment abroad; it has boosted the development of economic and technological development zones, bonded areas and free trade zones; promoted the readjustment and optimization of the industrial structure and the upgrading of the product mix; spurred the growth of developing countries' transnational corporations and the enhancement of their international competitiveness; and it has given an impetus to the development of developing countries' foreign trade. In other words, if the countries can firmly grasp the opportunity for the revolution of information technology, it would be possible for them to combine industrialization and informationization and bring about an historic leap in social productive forces and social progress. However, economic globalization has also exerted negative impact and influence on the developing countries. It has aggravated the imbalance of the world economic development, thus widening the gap of wealth between the developed and developing countries, and intensified the polarization between the rich and the poor within a developed or a developing country. According to statistics from the United Nations, there were 36 least developed countries 10 years ago, the figure rose to 42 five years ago and to 48 at present. Viewed from this angle, the process of economic globalization actually is a process of the continual concentration of wealth. In this process, world development has become increasingly unbalanced; the per-capita GNP gap between the developed nations and developing countries has expanded from 43-fold in 1983 to over 60-fold at present; The developed countries, whose population accounts for only one-sixth of the world total, monopolize nearly 80 percent of global income. The information technological gap between the developed and the developing countries, i.e., the "digital gulf", cannot but has aroused great attention. It is thus clear that the gain and loss occurred to the developing countries and the developed nations in the process of economic globalization have become an inequality of serious imbalance. On the one hand, economic globalization has made developed nations become increasingly wealthy; on the other hand, it has caused the least developed countries to face the danger of "marginalization", poor people there find it harder to eke out a living. In the past decade, the proportion of the come of the world's impoverished people to the global total has dropped from the original 2.3 percent to 1.4 percent. Economic globalization has increased pressure and impact on the national industries of developing countries. For historical reasons, the developing countries' economic structure is fragile, their capital is scarce, technology backward and market growth immature. They are vulnerable to impact in the process of being merged into economic globalization, so they not only need private investment and technological aid from the developed nations, but all the more need the assistance of official capital. In fact, the developed nations' official capital flowing into developing countries in the past 10 years has notably decreased. Many developed countries have failed to earnestly undertake their responsibilities, falling far short of fulfilling the internationally acknowledged target for aiding the developing countries. The World Bank report "1999 Global Development Fund" shows that the amount of developed nations' official capital flowing into developing countries has fallen from approximately US$60 billion in 1990 to less than US$45 billion at present. Financial globalization under the condition of economic globalization has, without doubt, accelerated the flow of international capital, it, however, has also increased the financial risk of the developing countries. Under the circumstance wherein the financial system is not perfect and financial control capability is not strong, if the developing countries blindly open their domestic financial market, the negative influence of financial globalization will stand out. The best illustration of this is the eruption of the Asian financial crisis in 1997. The negative influences brought about by the tide of economic globalization obviously is not the development target of humanity. The developed nations should bear certain responsibility for the emergence of these consequences. In the world economic arena, the fact that the developed nations are both the participants in the play and the makers of regulations on the play determines that in the solutions of many international trade problems and the formulation of trade regulations, the voice of the poor developing countries is weak. The 2000 UN Report on Human Development points out that the global economic decision was made in the world where economic strengths are extremely unequal. These words have brought out the "true meaning" with one remark. In the process of economic globalization, the few rich developed nations and the poor and backward developing countries are far apart in strength, but they are confronted with the same competitive rules, this has undoubtedly landed the developing countries in an unequal and passive position at the very beginning of participating in this process. There is no need for reticence that in the process of economic globalization, the developing countries have contacted the world's advanced technologies and management methods, but this is obtained at the high price of their cheap labor and natural resources. Three years ago, the total annual wages of 22,000 Asian workers were not as much as the advertising fee for a noted public figure paid by the Nike Company of the United States. This situation has not as yet seen much improvement. At present, if this unfair and irrational old international order is not broken, the developed nations will continue to hold sway of the process of economic globalization, the developing countries will continue to act a supporting role. The developed nations and the developing countries are living under the same blue sky, when one develops, one should also allow others to develop as well, so that every one can become the beneficiaries of economic globalization. The minority rich countries should not build up their affluence on the poverty of the majority poor countries. Otherwise, there will not be a world of peace, stability and prosperity to speak of. The accelerated development of economic globalization indicates that mankind has entered a new era with peace and development as the main theme. But this development should not be gained at the expense of the developing countries' economic security and economic sovereignty, nor should it entail the consequence of creating more poverty and aggravating polarization featuring a widening gap between the rich and the poor. Just as President Jiang Zemin has pointed out: We need an economic globalization of "common win" for various countries around the world; need an economic globalization featuring the equality among various countries of the world; and an economic globalization allowing the coexistence of all countries in the world. Only when a fair and reasonable international new economic order is established through the concerted effort of human beings, can they jointly triumph over the challenges emerged in the process of development and can they enjoy a brighter future. **** China Capable of Developing Cars Independently First All China-designed Car Born ---------------------------------------------------------------------------- Amid the soul-stirring National Anthem of China, a new brand "Zhonghua" (China) car rolled off the production line from the Shenyang Gold-Cup Auto-Making Company in northeast China's Liaoning Province Saturday, December 16. It is the first car that China possesses full intellectual property rights, declared by Hong Xing, vice president of the Shanghai-based Brilliance China Automotive Holding Ltd., the holding company of the Gold-Cup. The body, the engine and other key parts of the new sedan, which reaches the same technical standards of those models in the European market, such as Toyota Cammy or Volkswagon Passat B5, were all developed by China to greet the competition emerging from its expected entry into the World Trade Organization. "Mastering full intellectual property rights, China may decide by itself on car designing and the future development strategy of the domestic automobile industry in tone with the market demand," said Hong Xing. Some 13 car plants under control of eight largest car groups in China now are either funded by foreign automobile giants or operating under the production licenses of foreign car styles, according to Yang Rong, chairman of the Brilliance Group. Most of their car productions followed the design of foreign cars of 1980s, Yang said, and China could hardly make change on the key technical indicators as the intellectual property rights belong to the foreign side. There is no doubt that foreign investment and technologies have helped to promote China's auto industry. However, not possessing the intellectual property rights more or less confined the development of China's national industry, according to Chinese experts. To own a house and a car is the object pursued by many Chinese people in recent years. Statistics show that 4.2 percent of urban households in China have had their own cars, and it is estimated that individuals will buy over 600,000 cars by the end of the year. Eight top car manufacturers in China have reported a total output of 450,000 cars in the first nine months this year. The "Zhonghua" car will be available in the market in July next year, pricing at around 150,000 to 200,000 yuan (some US$20,000), and its annual output will reach 100,000. The Brilliance Group spent some US$500 million and over three years to develop the "Zhonghua" sedan, which is designed to meet the demand of medium and high-grade cars in the domestic market. The Brilliance Group will carry out experiments on the car in the next few months in freezing, muggy and desert regions to guarantee its functions. Compared with the century-long history of the world's automobile industry, China's auto-industry just debuted in the mid-1950s, when the first automobile plant was set up in Changchun city, northeast China's Jilin Province. The first domestic "Jiefang" (liberation) truck was produced in 1956, and nine years later, China brought out its first car of "Red Flag", whose engine, along with other key components, are made by foreign equipment and technologies. With efforts of generations of Chinese people, China now has full capacity to produce all types of auto vehicles, but the medium and high-grade cars market is still under the dominance of foreign investors. "We hope the birth of 'Zhonghua' may help China to develop its national car industry," said Hong, but "we will continue to follow the international trend and always learn from our adversaries to shorten the technological gap between China and the developed countries in the sector." **** WTO Chief Says Would Like to Oversee Round Launch World Trade Organization Director-General Mike Moore said on Friday in Geneva he would like to see a new global round of liberalization talks launched during his term in office, which ends in August 2002. But Moore told a year-end news conference he recognized that agreement on a round among the WTO's currently 140 members was still a long way off although many governments were showing "increasing flexibility" on the issue. "I'd like to do that (oversee the round launching)," declared the former New Zealand prime minister, who is serving a three-year term and will be succeeded by Thailand's Deputy Prime Minister Supachai Panitchpakdi. "I do believe we can do most for most people around the world inside a round....It would bring benefits to our member countries and to the global economy as a whole," he said. But all members of the WTO had "to see enough space and feel enough comfort" before they would be ready to sign up for a major negotiating effort that diplomats say could be expected to last at least three and probably more years. Developing countries, who blocked efforts at a WTO ministerial meeting in Seattle last December to agree on a launch early this year, are still bitter over failure of the richer powers to relax some accords reached in the last round. That effort, named after Uruguay which hosted the ministerial meeting of the old GATT trade body which launched it, lasted from 1986 to the end of 1993. Over the past year, poorer countries who are finding it impossible to implement some of the agreements reached then in many areas including agriculture, health rules, subsidies and rules of origin, have been negotiating to achieve some leeway. But a document summing up those talks issued on Friday left little doubt that scant movement had been shown by big powers like the United States and the European Union who want to stick to the original time-frames for implementation. India's ambassador Srinavasan Narayanan told the WTO's ruling General Council discussing the problem on Thursday that the year of discussions had achieved "even less than I had expected," diplomats present said. If no extension to the accords affecting emerging economies and the world's poorer states is agreed, they could eventually face challenge before the WTO's Dispute Settlement Body + and possible sanctions + for failing to observe trading rules. But Moore said on Friday the agreement to at least continue discussions on implementation next year marked "modest progress." "These are enormously difficult issues for all involved. It is very difficult for capitals to move," he declared. The WTO chief indicated he hoped that there could be a shift during 2001 to make possible agreement on a round at the WTO's next ministerial meeting, to be held before the end of the year. But ambassadors on Friday postponed to the New Year a decision on which of two likely candidate countries would host the gathering. The Gulf state of Qatar offered its capital Doha in Seattle, but recently Chile has shown interest. For the previous three ministerial, there was only one candidate for host. _______________________________________________________ KOMINFORM P.O. Box 66 00841 Helsinki - Finland +358-40-7177941, fax +358-9-7591081 e-mail [EMAIL PROTECTED] http://www.kominf.pp.fi _______________________________________________________ Kominform list for general information. Subscribe/unsubscribe messages to [EMAIL PROTECTED] Anti-Imperialism list for geopolitics. Subscribe/unsubscribe messages: [EMAIL PROTECTED] [EMAIL PROTECTED] _______________________________________________________