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CHINA E-LOBBY UPDATE: JUNE 2, 2004


Dragon in the Dark: How and Why Communist China Helps Our Enemies in the War on Terror is now available: here, at Amazon, or call 1-888-280-7715.

TOP STORY: JIANG ZEMIN�S POWER PLAY SPILLS OVER INTO ROC, HK POLICIES

PRC HARD LINE ON TAIWAN, HONG KONG PART OF JIANG�S MOVE AGAINST HU JINTAO
PRC PREPARING FOR WAR WITH U.S. OVER TAIWAN, THANKS TO AMERICAN CASH

Recent tough talk � and military planning to back it up � on Taiwan and Hong Kong (see
5/19 and last Updates) are coming from the same source: Central Military Commission Chairman Jiang Zemin.  Jiang is authoring the tough line �as a weapon in the power struggle� (Washington Post via The Age, Australian) with Communist Party boss Hu Jintao.

While Hu, who is also President of the People�s Republic, also backs a hard line, his penchant for soothing words to coat the pill of repression has been stymied by Jiang, who is �using to his advantage the challenges posed by Taiwan and Hong Kong� in order to justify remaining at the head of the CMC, rather than yield to Hu.

The news on Jiang�s power play comes on the heels of a Department of Defense report (cited by
CNN) noting that Communist China has a �determined focus on preparing for conflict in the Taiwan Strait � to include accelerated deployments of short-range ballistic missiles opposite Taiwan.�  The PRC already has 500 missiles pointed at Taiwan.

Moreover, Communist China is also �preparing to begin war games in the sensitive Taiwan Strait� (
BBC), just 150 miles for Taiwanese territory.  Communist China called the upcoming exercises �for the sake of national defence (UK sp).�  An unnamed intelligence official noted they were �also intended to send a political message� (Bill Gertz, Washington Times).

The Pentagon noted Communist Chinese advances in certain military areas, such as unmanned planes, and a growing confidence from the PRC that it is �operating from an increasingly competitive position relative to other established world powers, including the United States,� due to an economy that can fund �military modernization.�

Where did this economic improvement originate?  The answer is �substantial revenue generated by trade with the United States,� i.e. the $124 billion U.S. trade deficit with Communist China, the largest bilateral trade imbalance on Earth (see
2/18 Update).  The Communists, of course, blasted the Pentagon report as �Cold War thinking.�

OTHER REPUBLIC OF CHINA (TAIWAN) NEWS
BUSH REPEATS SUPPORT FOR �ONE CHINA� AMID PRC ANGER OVER LU STOPOVER
During a phone call from PRC President Hu Jintao expressing his anger over the U.S. allowing Taiwanese Vice President Annette Lu to stop in Las Vegas on her way to Latin America, President Bush �reaffirmed his commitment to the �one-China� policy� (Voice of America via
Epoch Times, HK).

�One China� is the fallacy that claims Communist China has sovereignty over Taiwan, where the Communists have never set foot.  As for Lu, she �plans to visit San Francisco for several days on her return journey to Taiwan� and �was scheduled to meet with members of the U.S. Congress while on American soil.�

COMMUNISTS REELING OVER CHEN�S RE-ELECTION

Communist China considers the re-election of Taiwanese President Chen Shui-bian as �a disaster� (United Press International via
Washington Times).  In response, the Communists are hoping that the U.S. will keep Chen �in check.�  This is how the International Institute for Strategic Studies sees the situation, although they would say what �in check� means.

TAIWAN INVITES MAINLAND OFFICIAL

In yet another bid to extend the olive branch, Taiwan �invited China's cross-strait affairs official, Wang Daohan, to visit the island� (
Washington Times).  The Communists still have yet to respond to the invitation.

U.S. SUPPORTS OBSERVER STATUS AT OAS FOR TAIWAN; PRC ALREADY HAS IT

Just after the Organization of American States (OAS) invited Communist China to be an observer, the U.S. publicly supported Taiwan�s application for observer status.  Taiwan�s fate will be decided at the next OAS meeting.  Report:
Washington Times

MAINLAND SPOUSES PROTEST ENTRY RULES

A group of mainland spouses of Taiwanese marched in protest against security regulations that they claim �discriminate against them� (UPI via
Washington Times).  The new rules require each spouse to submit to a security clearance to obtain an identification card.

THE VELVET CRACKDOWN: HONG KONG NEWS
ALLAN LEE SAYS HE WAS PUSHED TO QUITE RADIO SHOW BY THREATS
Allan Lee, a former talk radio host, told a Hong Kong legislative committee that he quite his radio show after his family was threatened by an unnamed cadre.  The exact words the cadre used sound like they came straight out of a gangster movie: �your wife is very nice and your daughter is very pretty� (
BBC).  Also reporting: VOA via Epoch Times

Lee, who also quit his post in the PRC Parliament (see
5/19 Update), said the Communists �were more nervous than ever before about the results of this year's election,� during which half of the Legislative Council�s 60 seats are up for grabs � the rest are appointed by a PRC-picked panel.  With a pro-democracy sweep, the PRC could lose control of the LegCo.

COMMUNIST RESPONSE: WHO, US?

Meanwhile, PRC-appointed Chief Executive Tung Chee-hwa �said Friday Chinese authorities denied involvement in recent incidents of political intimidation of the media� (UPI via
Washington Times).  The police professed to be �very concerned about the talk show cases.� 

PROTESTORS MARCH TO REMEMEBER JUNE 4, 1989

Thousands of Hong Kong residents took to the streets to demand �an inquiry into the suppression of the 1989 protests� (
BBC) i.e., the Tiananmen Square massacre.  Several marchers �also carried signs demanding universal suffrage,� in reference to what this quarter calls the Velvet Crackdown.

TIBET NEWS
DALAI LAMA IN UK, MEETS PRINCE CHARLES
The Dalai Lama began a one-week visit to the UK last Thursday.  During his trip, he met with Britain�s Foreign Minister and with Prince Charles.  The latter is a longtime supporter of Tibet�s spiritual leader.  Reports:
CNN, BBC

NEWS ON COMMUNIST CHINA, EAST TURKESTAN, AND THE TERRORIST WAR

Check out the Communist China and the Terrorist War page.
COMMUNIST CHINA WANTS CHANGES TO IRAQ RESOLUTION IN UN
Communist China presented an alternative to the U.S.-Britain joint resolution in the Security Council on Iraq.  The PRC version would �would give the interim government that takes over on June 30 greater authority� (MSNBC) than the U.S.-UK version.  France, Russia, and Germany all backed the Communist version. 

Communist China not only opposed the military action in Iraq (as did France, Russia, and Germany), but also helped integrated Saddam Hussein�s missile defense, sold him missile components, and tried to sell him missile-launching patrol boats (see
2/21/01, 2/28/01, 3/7/01, 3/14/01, 3/21/01, 12/18/02, 2/5/03, 3/19/03, 4/9/03, and 12/17/03 Updates).

ONLINE VIDEO GAME THAT CALLS EAST TURKESTAN INDEPENDENT IS BANNED IN PRC
Hearts of Iron, a Swedish game, is now banned in Communist China for content that �could threaten national unity� (BBC).  The game in question �portrayed Manchuria, Tibet and Xinjiang as independent nations� (note: this quarter was unable to ascertain what name for East Turkestan the game used).

NORTH KOREA NEWS
Sign up for the North Korea Report to get the next edition on Monday.
FIVE REFUGEES IN GERMAN EMBASSY COMPOUND
Five refugees from North Korea entered Germany�s embassy in Beijing to escape life as nonpersons trying to avoid being sent back by the PRC.  Communist China sends back any refugee it finds to its Stalinist ally.  As such, many have used democratic nations� embassies to escape, usually to South Korea.  Report: BBC

URI PARTY MEMBERS PREFER COMMUNIST CHINA TO U.S.
In a survey on South Korean President Roh Moo-hyun�s Uri Party, �63 percent of its members consider China to be South Korea's most important trading and diplomatic partner, compared with 26 percent favoring the United States� (Washington Times, second item)  Whether this drives or is driven by Uri�s dovishness on the North was not discussed.

OTHER AMERICAN-RELATED NEWS
Sign the petition for an American boycott of the 2008 Beijing Olympic Games.
COMMUNIST CHINA GETTING NEW MILITARY JETS FROM RUSSIA
Russia, Communist China�s largest arms supplier, is ready to deliver its favorite customer �24 advanced Sukhoi Su-30MK2 Flanker fighters� (Newsmax).  The planes will be �naval versions of the Sukhoi Su-30MKK fighter,� and reportedly �can beat the U.S. top jet fighters including the F-15 Eagle.�

PRC TO ENTER NUCLEAR SUPPLIERS GROUP
Communist China was admitted into the Nuclear Suppliers Group (NSG) last week.  This means �Beijing supposedly can be trusted with a bigger role in global nuclear trade� (Washington Times).  Sure it can (see 12/18/02, 12/26/02, and 6/11/03 Updates).

WILL BRITAIN BUCK US, TRY TO LIFT COMMUNIST CHINESE ARMS BAN?
According to the Times of London (cited by the Cybercast News), the UK is considering defying the U.S. and joining France�s efforts to lift the European Union arms ban on the PRC (see 11/12/03, 12/10/03, 1/28, 2/4, 3/17, 3/24, and 3/31 Updates).  If true, the only nations that would be blocking the arms flow would be Sweden and the Netherlands.

Meanwhile, the European Parliament � the only piece of the EU elected by the people �voted 373-32 for a resolution charging that China continues to violate human rights, and urging the EU not to lift the embargo.�


ARE COMMUNIST CHINESE CARS ON THE WAY?
David Shelburg, a would-be car dealer in Arizona, is looking to sell Communist Chinese cars in the U.S.  His PRC �partners� are accused of stealing car design plans from other automakers (Detroit News).  One can understand why they would find Shelburg so likeable: Shelburg�s history is so bad he�s banned from selling cars in Texas. 

U.S. FIRM TO BUY 18% OF COMMUNIST BANK
Shenzhen Development Bank �has agreed to sell an 18% stake to US private equity firm Newbridge Capital� (BBC).  The firm will be the largest shareholder in the bank (the PRC ownership is split among several agencies, all of whom will make a pretty penny).

COMMUNIST CHINA OKS BRITNEY SPEARS CONCERT, BUT NOT COSTUMES
Communist China has decided to let Britney Spears hold five concerts in Shanghai and Beijing, but �Culture officials have asked the Chinese organizers (UK sp) of the concerts to guarantee Spears does not show �too much� skin� (BBC).

NEWS FROM THE FALUN GONG WAR
HUNDREDS MARCH IN SUPPORT OF LAWSUIT AGAINST JIANG
A hearing on the Falun Gong lawsuit against Central Military Commission Chairman Jiang Zemin for authoring the crackdown against the spiritual movement was conducted in the Seventh Circuit U.S. Court of Appeals in Chicago.  The Department of Justice, sadly, came down on Jiang�s side.  Report: Epoch Times-1

Across the street, three thousand people marched in support of the lawsuit, including Gang Chen, a practitioner who suffered horrific torture while in a Communist labor camp.  There was also a three-day �exhibition depicting the torture that practitioners of Falun Gong have been enduring in China� (
Epoch Times-2).

EHRLICH MEETS ANHUI CADRE SUED BY PRACTITIONERS
Anhui Communist boss Wang Taihua, just after being served with a lawsuit for participating in the crackdown against Falun Gong (see last Update), was feted by Maryland Governor Robert Ehrlich at �a signing ceremony commemorating the Sister State partnership between Maryland and Anhui� (Epoch Times).  The Sister State arrangement is over two decades old.

OTHER HUMAN RIGHTS AND FREEDOMS NEWS
COMMUNIST CHINA USING PRESSURE TO BLOCK NTDTV BROADCASTS INTO PRC
Communist China is pressuring satellite broadcasters to stop them from broadcasting new Tang Dynasty Television (NTDTV), a Chinese language network that broadcasts programs completely outside Communist control.  Reporters Without Borders detailed and slammed the PRC�s attempt to block NTDTV.  Report: Epoch Times

TIANANMEN PROTESTORS UNDER HOUSE ARREST
Communist police have placed survivors of the Tiananmen massacre under house arrest �to prevent them from publicly commemorating the 15th anniversary of the June 4 Tiananmen Square crackdown� (Muzi.com).  Also under watch is AIDS activist Hu Jia (see Epidemic News) and leading Tiananmen mother Ding Zilin (see 4/7 Update).

NEWSPAPER EDITORS FIRED AFTER CRITICIZING INSURANCE INDUSTRY
Last month, the China Insurance News published a piece from a reader challenging Communist China�s insurance firms to avoid �blindly expanding� (Central News Agency, Taiwan, via Epoch Times) and focus on �one's ability to pay back� debt.  Less than a month later the Communists fired the paper�s president, editor-in-chief and vice editor-in-chief.

CORRUPTION NEWS
ZHOU ZHENGYI SENTENCED TO THREE YEARS
Zhou Zhengyi, a corrupt �private� developer who colluded with cadres in Shanghai to evict homeowners and build on the land where their homes stood, received a three-year jail term for stock fraud.  The sentence is exactly the same length as that of Zhong Enchong, the lawyer who represented the evictees (see 6/4, 6/11, 6/18, and 10/29 Updates).

EPIDEMIC NEWS
COMMUNISTS ANNOUNCE CRACKDOWN ON BAD BLOOD CENTERS . . .
Over a decade after an unhygienic blood drive in infected over one million with AIDS � and that was in Henan province alone (see 9/4/02 and 9/25/02 Updates) � Communist China has finally �that it is cracking down on malpractice in blood collection centers� (VOA via Epoch Times).  Of course, there was no willingness to mention the regime�s past mistakes.

. . . BUT ACTIVISTS IN HENAN PROVINCE ARE KEPT AWAY FROM U.S. AMBASSADOR
AIDS activist Hu Jia is currently under house arrest in Beijing, unable to go to Henan to meet with U.S. Ambassador Clark Randt.  Villages in Henan are swarming with police �preventing outspoken villagers from leaving their homes� (BBC).  Hu ruefully noted that Randt �will get a very sanitized (UK sp) version� of the AIDS situation in Henan.

OTHER MAINLAND NEWS
COMMUNIST CHINA PUTS RESTRICTIONS ON INDUSTRIAL LOANS
Beijing announced �tighter scrutiny of bank lending� (BBC).  In particular, loans for �new industrial and commercial premises will be halted unless they have received government approval.�  The restrictions are designed to stop overinvestment in PRC-run industrial firms.

BUT LOCAL CADRES FUDGE DATA TO BEIJING TO KEEP LOANS FLOWING
However, Communist China�s attempt to slowdown loans to those sectors was already running into a typical obstacle before it began.  Corrupt local cadres are fudging the loan numbers.  The new trend in fuzzy math is to rename bank loans to industrial firms as �agricultural� loans, which are more popular with Beijing.  Report: Epoch Times

FOOD REGULATOR ADMITS HE�S WORRIED ABOUT GROCERY PACKAGES

The situation regarding lax cadre enforcement of food safety regulations (see
4/28, 5/5, 5/12, and last Updates) has become so bad that Zheng Xiaoyu �went on state television and said he himself worries about eating packaged food� (VOA via Epoch Times), and Zheng is the fellow in charge of food safety.

INTERNATIONAL NEWS
BRAZIL MAY EXPORT URANIUM TO COMMUNIST CHINA
Brazil has entered negotiations for �the sale of non-processed uranium to supply 11 new nuclear reactors in China� (Knight Ridder via The State).  The money from the sale �would be used to jumpstart the flagging nuclear program in Brazil.�   The news comes on the heels of a slew of agreements signed between Brazil and Communist China (see last Update).

EUROPEAN RETAILERS POUR MORE MONEY INTO COMMUNIST CHINA
German retailer Metro is planning to throw more money into the PRC to build more stores there.  Meanwhile, UK retailer Tesco �plans to open stores in China and across Asia� (BBC).

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