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CHINA E-LOBBY UPDATE: NOVEMBER 17, 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.

The next Summer Olympics begin in Beijing at 8AM EST on August 8, 2008 (BBC).  Will the U.S. take part in a Communist Chinese version of the Munich Nazi propaganda event of 1936?  Sign the petition for an American boycott of the 2008 Beijing Olympic Games.

TOP STORY? 
WASHINGTON POST FINALLY NOTICES PRC-IRAN ALLIANCE
We must remember that the following is shocking news for those who do not read this newsletter with regularity: �A major new alliance is emerging between Iran and China that threatens to undermine U.S. ability to pressure Tehran on its nuclear program, support for extremist groups and refusal to back Arab-Israeli peace efforts� (Washington Post).

Those who do read this newsletter with regularity can point the newly initiated to the accumulated evidence of said alliance (
5/28/03, 7/9/03, 12/24/03, 6/16, and last Updates).
Check out the latest on the Communist China and the Terrorist War page.

NORTHERN KOREA NEWS
Sign up for Monday�s Northern Korea Report.
SCNK BLASTS U.S. AGAIN, SAYS SIX-WAY TALKS ARE OFF; BUT PRC SAYS THEY�RE ON
Communist China insisted that Stalinist-controlled northern Korea �is still committed to the six-party talks� (Voice of America via Epoch Times), citing Stalinist Vice Foreign Minister Kim Yong-il.  However, in what is becoming a pattern when SCNK officials visit the PRC (see 10/21 Update), Kim himself said nothing publicly.

There have been three rounds of six-party talks on the SCNK�s nuclear ambitions, which include the regime itself, the PRC, Japan, the U.S., Russia, and the Republic of Korea (�South� Korea).  The only tangible results of the talks have been substantial American concessions (see
6/30 Updates).

OTHER AMERICAN-RELATED NEWS
POWELL AND ARMITAGE RESIGN; RICE NOMINATED NEW SECRETARY OF STATE
Secretary of State Colin Powell and his deputy Richard Armitage have resigned (CNN). The departure was taken as good news, given Powell�s disturbing comments on Taiwan (China Support Network, 10/27 and 11/3 Updates).  However, his successor, outgoing national security advisor Condoleezza Rice, is not much better on the PRC (National Review Online).

Armitage is best known in this quarter for publicly announcing � in Beijing � that U.S. agreed with Communist China that the East Turkestan Islamic Movement was a terrorist organization.  It was later discovered that ETIM was defunct and had never actually been in East Turkestan (see 8/28/02 and 9/18/02 Updates).

THINK TANK PRAISES BUSH ADMINISTRATION COZINESS WITH COMMUNIST CHINA
A report from the Asia Foundation gave the Bush Administration ill-earned praise for �improving relations with China,� (Cybercast News).  In the report, the Foundation also opposed any �containment of China,� and called for �stabilizing the China-Taiwan situation,� without saying what, if anything, that meant.

ROK NATIONAL PLEADS GUILTY TO SELLING HELICOPTER ENGINES TO PRC
Kwonhwan Park, indicted this spring for selling Black Hawk helicopter engines to Communist China (see 5/12 Update) pleaded guilty last week.  Sentencing was set for January 28.  The plea was �part of an agreement with federal prosecutors� (Washington Times).

END OF TEXTILE QUOTAS HAS MANY INSIDE AND OUTSIDE U.S. WORRIED ABOUT PRC
The phase-out of a worldwide system of textile trade restrictions � still set for January 1 � has many �third world� countries increasingly nervous about their textile jobs �wiped out by looming competition from lower cost operations in China� (Washington Post via MSNBC).

As a result, these textile exporters are joining the chorus of America textile producers in calling for �the Bush administration (to) use its power under global trade rules to limit the growth of Chinese imports until 2008� (see also
8/5 Update).  Meanwhile, the Dominican Republic responded by wooing the PRC for investment (Washington Times, second item).

INTERNATIONAL NEWS
COMMUNIST CHINA CALLS SUBMARINE INCURSION INTO JAPANESE WATERS A �MISTAKE�
Communist China �regretted� (BBC) sending a submarine into Japanese waters last week.  The sub was spotted near Japan�s Senkaku island chain, which the PRC claims for itself (see 1/21, 3/24, 3/31, and 7/14 Updates).  Japanese officials say the Communists claim the sub sailed into Japanese territorial waters due to �technical problems� (Washington Post).

Prior to this acknowledgement, Japan�s Trade Minister guessed the sub was �linked to gas exploration by China� (VOA via
Epoch Times) in the disputed islands.  He further �added he believes that Chinese submarines have been moving in Japanese waters for some time.�

STUDY SAYS ONE-THIRD OF FOREIGN INVESTORS WILL SOUR ON COMMUNIST CHINA
A Booz Allen Hamilton study predicts �about one-third of foreign companies in China will withdraw because of unsatisfactory profits� (CNA via Epoch Times).  Currently, �nearly one-quarter of foreign companies invested in China can barely break even or are losing money.�

HU JINTAO VISITS LATIN AMERICA TO BUILD NEW ALLIANCES

PRC President Hu Jintao is in South America in preparation for the Asia-Pacific Economic Cooperation in Chile next week.  Hu is also building ties with a number of Latin American nations both to advance its larger anti-U.S. policies and �as part of its ongoing tussle with rival Taiwan for diplomatic recognition and economic ties� (
Cybercast News).

Hu visited Brazil first, cementing a growing bond with Brazilian President Luiz Inacio Lula da Silva, who happily obliged by granting the PRC the plum label of �market economy status� (
BBC 11/12).  In Argentina, stock prices soared before Hu even landed in anticipation of PRC deals (Washington Times) worth nearly $20 billion (BBC 11/17).

INDIA BANS MADE-IN-PRC GLOBES THAT SHOW KASHMIR AS INDEPENDENT
Globes �manufactured by four firms in China and Hong Kong� (BBC) listed Kashmir, an Indian province claimed by Pakistan and home to legions of anti-India terrorists linked to al Qaeda, as an independent country.  In response, a court in India, which lost 40,000 square miles to the PRC in a 1962 border war, banned the globes.

AUSTRALIAN MEDIA MOGUL THROWS MONEY INTO COMMUNIST CASINO ON MACAU
Kerry Packer is �sinking $163m� into �a casino joint venture� (BBC) in Macau.  Packer will be a minority partner in a casino controlled by Hong Kong tycoon Stanley Ho.

NEWS ON THE FALUN GONG WAR
CADRE ON THE LAMB IN ZAMBIA; JIANG ZEMIN SUED IN CANADA
Falun Gong practitioners in Zambia sued Gansu Province Party Secretary Su Rong for his role in the Communist crackdown against the spiritual movement.  Zambia also ordered Su to remain in country �appear before the High Court of Zambia� (Epoch Times 11/14), an unprecedented step for which the small African nation deserves high praise.

However, in a response typical of how the PRC views e rule of law, Su refused to appear in court, and is now �a fugitive of the justice system.�  Zambia has issued a police warrant for the cadre�s arrest.  Meanwhile, practitioners in Canada filed suit against former Central Military Commission Chairman � and crackdown author � Jiang Zemin (
Epoch Times 11/17).

HUMAN RIGHTS AND FREEDOMS NEWS
SICHUAN PROTESTS ENDS WITH COMMUNIST POLICE SHOOTING
The farmers and others protesting a mass forced relocation in Hanyuan County, Sichuan Province (see last Update), were met with a hail of bullets from Communist police.  An activist in communication with the farmers during the shooting told the Epoch Times that the police killed seventeen protestors and wounded at least forty others.

Luo Gan, head of security for the People�s Republic of China, flew in himself to supervise the crackdown.  Luo, a prot�g� of Tiananmen Square butcher Li Peng, may have been driven to follow in Li�s bloody footsteps by the recent reports tallying the number of protests in Communist China at more than three million (see
11/20/02 and last Updates).

WITH JIANG ZEMIN OUT OF THE WAY, HU-CONTROLLED REGIME CRACKS DOWN
Several websites that were outlets for those dissatisfied with Communist China (see 7/21 and 8/5 Updates) have been shut down in the aftermath of Jiang Zemin�s resignation as Central Military Commission Chair and PRC President Hu Jintao�s consolidation of power.  Report: Asia Times via Epoch Times

Several magazines in Guangdong province have also borne the brunt of Hu�s crackdown (Epoch Times).  Hu is merely the latest in a slew of Communist leaders who have used a temporary loosening of restrictions to knock out rivals within the party, then crushing those who raised their voices.  Deng Xiaoping and Mo Zedong used similar bait-and-switch tactics.

COP IN HEBEI SENT TO PRISON FOR TORTURING SUSPECTS
A Communist court actually sentenced a policeman to prison for 30 months for �torturing suspects in order to extort confessions� (Central News Agency, Taiwan, via Epoch Times).  Before anyone gets too optimistic, it should be noted that the only reason the PRC focused on the case was the embarrassment of having suspects released for �insufficient evidence.�

PRC CITIZENS RUSH TO GET BOOK ON �ANTI-RIGHTIST CAMPAIGN� BEFORE IT�S BANNED
Denizens of the Communist capital �are rushing to bookstores to get their hands on Inside Secrets � the Altercations in 1957, an account of the Communist Central Party�s Anti-rightist campaign of 1957� (Epoch Times).  The city dwellers expect the Communists will soon ban the book for its �unflattering account of the 1957 Anti-rightist campaign�.

TOLL WORKERS BEAT ANGRY DRIVER
A woman who complained of being overcharged at a toll �was beaten up by (toll) staff� (BBC).  Locals rushed to the women�s defense � and burned the toll booth.  The Communists sent in the police to crush the �riot.�

CORRUPTION NEWS
FUJIAN CADRE WHO RAILED AGAINST CORRUPTION NOW UNDER HOUSE ARREST
Huang Jingao, a cadre in Fujian Province �who briefly rose to fame in China by denouncing official corruption� (Washington Post, see also 8/18 Update) has now been �relieved of his duties and placed under a form of house arrest while authorities investigate his conduct.�  As part of the investigation, one witness �was urged to accuse Huang of accepting bribes.�

DO AS I SAY, NOT AS I DO: COMMUNISTS PUSHING �HONESTY� IN UNVERSITIES
Communist China �launched a program in October called �Building Integrity Begins With Me� in response to a lack of integrity and honesty common among Chinese university students� (CNA via Epoch Times).  The PRC doesn�t appear to think leading by example would help.

OTHER MAINLAND NEWS
OFFICIALS IN BEIJING AND SHANGHAI GET POOR MARKS
An overwhelming majority of residents of Communist China�s capital told an online poll run by the local cadres that �state employees� service manners are poor� (Epoch Times).  Nearly three-quarters of the respondents called the bureaucrats� performance subpar.  Shanghai�s bureaucracy scored little better � and that came for fellow cadres (CNA via Epoch Times).

REAL ESTATE BUBBLE DRIVING MANY INTO DEBT IN PRC
The skyrocketing price of real estate in Communist China has �more than doubled the household debt in China�s big cities� (Epoch Times).  In Beijing, households� debt stands at �an unprecedented 122 percent of their disposable income.�  Given the likelihood that the real estate bubble could soon pop (see last Update), the situation could get very ugly.

ENERGY SHORTAGES LIKELY MEAN COLD WINTER IN COMMUNIST CHINA
The PRC is admitting that its energy shortage (see 12/10/03, 12/17/03, 3/31, 6/10, 6/16, 7/21, 8/5, 8/25, and 9/22 Updates) �could make for a long cold winter for tens of millions of people in the developed east� (VOA via Epoch Times).  Beijing itself �only has about half the coal supplies it needs to meet local heating demands.�

DID PRC DEFENSE MINISTER HELP EASE OUT JIANG ZEMIN?
The Epoch Times reports that former Central Military Commission Chairman Jiang Zemin was pushed into resigning by Communist Defense Minister Cao Gangchuan, currently CMC Vice Chair and member of the Politburo.  Cao is �backed by President Hu Jiantao,� another sign that Hu�s consolidation of power is largely complete.

SHANGHAI BANS SOME COUNTERFEIT LABELS
Shanghai �banned the sales of 40 bogus products at the request of 10 international name brands� (Epoch Times).  It is one of the few and far between steps taken by local cadres against counterfeiting (see 10/21 Update).

OTHER REPUBLIC OF CHINA (TAIWAN) NEWS
COMMUNIST CHINA TESTING AWACS FOR DEPLOYMENT AGAINST TAIWAN
Communist China �has developed its own radar surveillance aircraft and is test-flying the first models for early deployment in the Taiwan Strait� (Washington Post).  The aircraft, known in the U.S. as AWACS, includes a home-grown air radar system � four years after Israel cancelled a sale of its radar to the PRC under U.S. pressure (see 7/12/00 Update).

VANUATU STICKS WITH TAIWAN, BUT HOPES COMMUNIST CHINA DOESN�T LEAVE
The cabinet of Vanuatu � yes, the same one hosting Survivor these days � fell in line behind Prime Minister Serge Vohor�s decision to establish diplomatic relations with Taiwan.  However, the Vohor government publicly expressed hope Communist China would maintain ties with Vanuatu.  Report: China Post, Taiwan

The PRC, as a matter of policy, cuts off ties with any nation that recognizes Taiwan.  In fact, when the Pacific archipelago of Kiribati chose to establish diplomatic relations with Taiwan, the Communists broke off ties and dismantled a space relay station there.  Many believed the station was also used for espionage (see
11/19/03, 12/3/03, and 2/11 Updates).

COMMUNIST CHINA UPSET AT TAIWAN�S ATTEMPT TO RE-ENTER UNITED NATIONS
Communist China �as usual, has quickly and loudly objected� (Epoch Times) to Taiwan�s latest effort to win admission into the United Nations.  The island democracy has tried for a dozen years to be admitted to the UN, with Communist China leading the charge against them every time.  PRC mouthpiece Li Weiyi called Taiwan �unfit to join the United Nations.�

DID COMMUNIST CHINA TARGET CHEN SHUI-BIAN�S PLANE?  ROC MILITARY SAYS NO
The ROC military �denied a newspaper report Thursday that Mainland Chinese jet fighters locked their radar on a plane carrying President Chen Shui-bian during a flight over the Taiwan Strait in late September�  (CNA via Epoch Times).  A Taiwanese military spokesman called the report �not factual.�

CHEN OFFERS TO CUT TROOPS, FORSWEAR WEAPONS OF MASS DESTRUCTION
President Chen Shui-bian �said Taiwan would commit to not developing nuclear, biological or chemical arms, and asked mainland China to commit to not developing or using such weapons� (United Press International via Washington Times).  Chen also pledged to reduce the size of Taiwan�s military by 100,000.  Also reporting: Newsmax

Hong Kong was unusually quiet this week.

TIBET NEWS
�MASSIVE RESERVES� OF OIL AND NATURAL GAS FOUND IN QINGTANG BASIN
Communist China has found �1,189 gas-bearing pockets� (CNA via Epoch Times) in Tibet�s Qingtang Basin.  The Communists � who have occupied Tibet since 1950 � also �confirmed  . . . massive reserves of oil.�  The Basin �will likely become the new base for China�s oil and gas industry.�  The occupied Tibetans can expect more severe repression and �Sinicization.�

IS CLIMATE CHANGE MELTING TIBETAN PEAKS?
Communist Chinese scientists are claiming �that global warming is melting frozen soil on plateaus in Tibet� (CNA  via Epoch Times).  The frozen area is now one-eighth smaller than it was in 1975.

The PRC is the second largest emitter of �greenhouse gases,� and is expected to become the largest in less than twenty years.  However, the much-touted Kyoto global warming agreement exempts Communist China from any restrictions on greenhouse gas emissions.


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