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CHINA E-LOBBY UPDATE: NOVEMBER 13, 2002

TOP STORY: JIANG LOOKING FOR AN EVEN STRONGER GRIP IN RESHUFFLE
LOOKING TO EXPAND POLITBURO STANDING COMMITTEE, ADD MORE ALLIES TO IT
Outgoing Communist Party chief and People�s Republic of China President Jiang Zemin is moving to place an even stronger grip on the Politburo Standing Committee, even after winning a majority of the PSC, as reported in the last update.  Jiang is now looking to expand the PSC from seven members to nine, and add two allies to the new posts � Ding Guan�gen and Li Changchun.

Ding, according to
Willy Wo-Lap Lam (CNN) 11/12/02, �was responsible for draconian policies that have restricted the freedom of expression -- and promoted Jiang's multifarious teachings and theories,� as head of the Communist propaganda unit.  Li is the party boss in Guangdong, home of the multi-billion dollar tax evasion scandal last year (see 1/3/01 update).

That Jiang is trying to build on his sweeping victory on the PSC �has met with fierce opposition from four incumbent PSC members,� including Hu Jintao � the fellow who is supposed to lead the PRC as the new party chief, but who �may be out-gunned at every turn by Jiang cronies in the new PSC.�

Jiang is even trying to get Zeng Qinghong, one of his four prot�g�s already slated for a PSC post, to become vice-chair of the Central Military Commission, the group that wields at least equal power to the PSC.  Jiang, who intends to stay on as CMC Chair for now, would thus be able to block Hu from acquiring what is arguably the post that is truly the most powerful in Communist China.

Meanwhile, the Communist Chinese military is set to win new power, and more military personnel on the Presidium and a stronger hand in the Politburo, in exchange for backing Jiang�s moves to dominate the reshuffle currently taking place.  In an earlier piece,
Lam (11/11/02) reported that the party would give the People�s Liberation Army more slots on the Central Committee and Presidium.

The military will also maintain two generals in the Politburo, which is a relative gain given the fact that the Politburo will be reduced in size.  As the other factions began to grumble out being left with the crumbs from Jiang�s table, he told them to �put party unity above the vested interests of their cliques�
(Lam 11/13/02)For more on the party Congress, see Other Mainland News.

NEWS ON COMMUNIST CHINA, EAST TURKESTAN, AND THE TERRORIST WAR
COMMUNIST CHINA JOINS 15-0 VOTE FOR UNITED NATIONS RESOLUTION ON IRAQ
As it became clear that France and Russia would come around to a UN resolution calling for Iraq comply with the slew of other resolutions dating back to 1991, the PRC joined in the 15-0 vote (Washington Times, Washington Post).  However, France insisted they succeeded in nixing an automatic trigger for military action, which likely had something to do with the unanimity (Cybercast News, New York Sun).

It should be noted that last February, PRC firm Huawei Technologies was caught building a fiber optic network to integrate Iraq�s air-defenses (see
2/21/01, 2/28/01, 3/7/01, 3/14/01, 3/21/01, and 9/18/02 updates).  Defense Secretary Donald Rumsfeld had said he didn�t know if the PRC is still there.

Check out these stories and more on the
Communist China and the Terrorist War page.

OTHER AMERICAN-RELATED NEWS
SEC EMPLOYEE SENT INFORMATION ON COMPUTER FIRMS TO COMMUNIST CHINA
The Securities and Exchange Commission is not normally the beat of Bill Gertz (Washington Times 11/11/02).  That changed Monday, courtesy of Mylene Chan, a computer analyst for the SEC who sent �sensitive information from more than 15 high-tech companies, including several involved in cutting-edge software development� to the PRC, in what the U.S. is considering an espionage operation.

The next day,
Gertz (11/12/02) reported that the U.S.-China Security Review Commission, a commission created by Congress to investigate PRC espionage, among other things, is looking to Chan�s activities.  The head of the SEC, Harvey Pitt, resigned last Tuesday.

GEPHARDT STEPS DOWN AS HOUSE MINORITY LEADER, PELOSI FAVORITE FOR POST
House Minority Leader Dick Gephardt announced he would not hold that post in the 108th Congress that begins in January.  Minority Whip Nancy Pelosi (California), Marcy Kaptur (Ohio), and Harold Ford (Tennessee) are running to replace him.  Reports: Fox News, Washington Post, Cybercast News, CNN

Most know Pelosi, the clear favorite, as a leading liberal, and she is both.  Less well known is the fact that she is also one of the most anti-Communist China Democrats in Washington.  She led the House Working Group on Communist China for many years, and was one of the leaders in the fight against Permanent Normal Trade Relations with the PRC in 2000.  Kaptur was also a leading opponent of PNTR.


HUMAN RIGHTS AND FREEDOMS NEWS
PROTESTORS ARRESTED OUTSIDE CONGRESS HALL
Communist police arrested at least half a dozen protestors for protesting outside the Communist Party Congress in Tiananmen Square as the congress began.  The BBC did not report what in particular the six demonstrators were protesting.

OTHER MAINLAND NEWS
COMMUNIST PARTY CONGRESS OPENS WITH JIANG ADDRESS
Meanwhile, Jiang, soon to leave his posts of President of the People�s Republic of China and General Secretary of the Chinese Communist Party, gave a supposedly valedictory speech to open the Communist Congress on Friday.  In his speech, Jiang flatly rejected democratic reform for the Chinese people (BBC 11/8/02-1), and also refused to rule out the use of force against Taiwan (CNN 11/8/02-1).

While Jiang offered talks with the ROC, he insisted on the �one China� principle, based on the fanciful Communist notion that they are the rightful rulers of Taiwan despite having never set foot there.  Taiwan rejected the condition (
CNN 11/8/02-2, Cybercast News).  Jiang also gave a �work report� (BBC 11/8/02-2), in which he had high praise for �private� business (BBC 11/8/02-3).  Also reporting: Washington Post

CORRUPTION AND UNEMPLOYMENT ON THE MINDS OF THE COMMUNISTS
Taking a cue from Jiang himself, (CNN 11/8/02), the Communists hyped corruption and unemployment as the �major impediments both to China's future economic development and the party's continued hold on power� (CNN 11/12/02).  Of course, the continuing battle against corruption suffered a major hit when the cadres decided that the graft-busting post in the party should go to Li Peng�s prot�g� (see last update).

PRIVATE PROPERTY PROTECTION LIKELY TO STAY OUT OF PRC CHARTER
While the Communist Party is using the Congress to say it PRC will be �leveling the playing field� (Washington Post) between �private� and PRC-run firms, protecting private property will not be part of the deal.  According to Willy Wo-Lap Lam (CNN), �a constitutional revision to safeguard the inviolability of private property� will probably stay out of the PRC charter.

J-10 FIGHTER TO BE REVEALED AT UPCOMING AIR SHOW
Communist China �is expected to unveil its long-anticipated fourth-generation combat jet this week during the Zhuhai air show� (Newsmax.com).  The J-10 is an advance fighter jet largely derived �from the now defunct U.S.-Israeli Lavi project,� with a little help from F-16s the U.S. sold to Pakistan.

COMMUNIST CHINA INSISTS ECONOMY IS ROARING AND WILL CONTINUE TO DO SO
Communist Chinese economic planners said the PRC economy will continue to grow at roughly 8% this year, according to CNN.  Of course, outside analysis has shown that the Communist economic numbers are already over 1 percentage point off (see 10/30/02 update), so whether or not the PRC is even growing at 8% now remains an open question at best.

PRC TAKEOVER OF BRILLIANCE CHINA IMMINENT
Brilliance China, the �private� firm whose founder, Yang Rong, is now in the U.S. fighting corruption charges from Liaoning province (see 10/2/02 and 10/23/02 updates), had its shares suspended from trading on Monday pending �information which could affect the share price� (BBC).  Most believe the �information� is the state takeover of the firm � which Yang insists is the real motive behind the charges.

CHINA TELECOM BEGINS STOCK SALE � AT 19 CENTS A SHARE
After being forced to pull its first attempt to sell stock due to pathetic demand (see last update), the Communist-run China Telecom put 10% of itself on the auction block, at the price of 19 cents a share, �the bottom of the predicted range� (BBC).  The first, which will remain under Communist ownership, is expected to raise about $1.4 billion from the sale, less than half the original expectation of $3.6 billion.

REPUBLIC OF CHINA (TAIWAN) NEWS
TSMC SALES UP SHARPLY, RECOVERY MAY BE ON THE WAY
Taiwan Semiconductor Manufacturing Company�s sales were up 46% in October.  Whether or not it was �a seasonal peak� or a sign of recovery in the ROC high-tech industry remains to be seen.  Report: BBC

HONG KONG NEWS
HONG KONG�S ECONOMIC FREEDOM, LIKE ITS POLITICAL FREEDOM, SLIPPING
The Heritage Foundation noted the links between the Communists� end runs around Hong Kong�s guarantees of civil liberties and autonomy and the damage to the city�s reputation as the preeminent place to do business.  While Heritage lists HK as the freest economy in the world, the think tank said it would not last long if the Communists continued their creeping suffocation of liberties.  Report: Cybercast News

Heritage President Ed Fuelner specifically cited the �anti-subversion� law, which includes as a crime the Communist catchall: �leaking state secrets� (see
10/30/02 update).  Fuelner said HK�s economic freedom would be imperiled if �the legislation negatively affected the free flow of economic information.�

TIBET NEWS
COMMUNISTS SAY ARRESTED PANCHEN LAMA HAS �VERY HAPPY LIFE�
The head of Communist China�s Tibetan �parliament� said that the Panchen Lama � chosen by the Dalai Lama and then placed under house arrest by the PRC � is �living a very happy life� (CNN), but wouldn�t say where the youngest political prisoner in the world is.  He also ripped the Dalai Lama�s anointment of the boy � now thirteen and not seen since he was six � as �arbitrary� (BBC).

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