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CHINA E-LOBBY UPDATE: SEPTEMBER 17, 2003


Note: Due to the fact that yours truly is in the path of Hurricane Isabel, the next
Week�s Links could be delayed.

TOP STORY: FOUR SENATORS PROPOSE CONDITIONAL TARIFF ON PRC IMPORTS
27.5% TARIFF WOULD TAKE EFFECT IF RENMINBI ISN�T FLOATED; COMMERCE SECRETARY, CHAMBER OF COMMERCE RIP BROKEN TRADE PROMISES BY COMMUNISTS
Four members of the United States Senate � Democrats Charles Schumer (NY) and Dick Durbin (IL), and Republicans Jim Bunning (KY) and Lindsey Graham (SC) � have sponsored a bill to impose a 27.5% tariff on imports from the People�s Republic of China if it maintains its dollar peg on its currency, known as the renminbi or yuan (United Press International).

Communist China has pegged the renminbi at 12 cents, far less than its true value, for nearly a decade.  The devaluation by fiat has battered export industries in neighboring Asian democracies, and hurt some manufacturing here.  It has also enabled the Communists to dramatically increase their foreign currency reserves (see
9/3 Update).

Meanwhile, Secretary of Commerce Donald Evans ripped the PRC for �backsliding on promises to ease restrictions on foreign companies, dismantle old trade barriers and clamp down on software piracy� (
New York Times via International Herald Tribune). 

The U.S. Chamber of Commerce took its own shots at Communist China for not living up to trade agreements, including �failing to open its markets as it promised to win acceptance in the World Trade Organization in late 2001.�  That was the agreement that won the Communists Permanent Normal Trade Relations in 2000.

Evans had a nice quote: �American manufacturers can compete against any country's white collars and blue collars . . . but we will not submit to competing against another country's choke collars.�  However, the Administration is only willing to add on a few new bureaucratic offices, nothing like what Schumer, Graham, Durbin, and Bunning are willing to do.

Connecticut Senator Joseph Lieberman, who is running for the Democratic Presidential nomination, put forth a bill calling for �negotiation and appropriate action with respect to certain countries that engage in currency manipulation� (
Washington Times, last item).  What �negotiation and appropriate action� means is anyone�s guess (it sure isn�t a tariff).

NEWS ON COMMUNIST CHINA, EAST TURKESTAN, AND THE TERRORIST WAR
PRC GOES WITH RUSSIA, FRANCE, AND GERMANY AT UN, AGAIN
After publicly supporting the efforts of France, Germany, and Russia in the United Nations brouhaha over Ba�athist Iraq last spring (see 3/5 Update), Communist China is again siding with them in their efforts to amend an American request for a UN resolution to aid Iraq�s rebuilding.  Report: BBC

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

NORTH KOREA NEWS
COMMUNIST CHINA WANTS TAIWAN CONCESSIONS FOR NK TALKS
Meanwhile, the PRC would like everyone to think they deserve the lion�s share of the credit for the six-way talks on North Korea�s nuclear weapons last month.  They�re also looking for something in return: they want the U.S. to �play its part in putting a damper on the "creeping independence" of Taiwan President Chen Shui-bian� (Willy Wo-Lap Lam, CNN).

The Communists aren�t relying merely on the North Korea card to extract U.S. concessions on the island democracy.  They are also hoping for �China's seemingly unstoppable economic juggernaut to pull strings in Washington,� either directly or through �multinationals with huge exposure in China.�

COMMUNIST CHINA PUTS ARMY ON BORDER WITH NORTH KOREA
Communist China has put its military in control of the border with North Korea.  Speculation has it that this stems from North Korea�s intransigence on its nuclear weapons.  A more plausible explanation can be derived from the fact that the PRC forcibly sends back any North Korean refugee it finds.  Reports: BBC, Washington Post, World Net Daily, Newsmax

For more on Communist China�s Stalinist ally, sign up for Monday�s North Korea Report.

OTHER AMERICAN-RELATED NEWS
KELLY JOINS POWELL, CALLS U.S.-PRC RELATIONS �BEST IN YEARS�
Meanwhile, Assistant Secretary of State James Kelly echoed his boss, Colin Powell, and called the relationship between the U.S. and Communist China �the best it had been in years� (BBC).  Kelly did not some concerns over �some deterioration in China's commitment to human rights this year.�  For more on Powell�s comments, see last Update.

EP-3 COLLISION LED TO �LOSS . . . OF CLASSIFIED INFORMATION�
A recently declassified Pentagon report on the collision that led to the Hainan outrage (see 4/5/01 and 4/11/01 Updates) says the crash landing led to a �possible loss or compromise of classified information� (CNN) that had been on the EP-3 plane.  Also reporting: BBC

The report also squarely blamed the Communist pilot, who died after the crash, for the collision.  The Communists �detained� the crew of the EP-3 for over a week, and the intelligence find was so big that the U.S. contemplated �a bombing raid of the downed EP-3E to prevent the Chinese from learning its secrets� (
Bill Gertz, Washington Times).

HUMAN RIGHTS AND FREEDOMS NEWS
COMMUNISTS �BAN� TORTURE
Communist China has officially told police, �they can no longer torture prisoners for confessions, state media reported yesterday� (London Daily Telegraph).  How closely the law will be followed � several PRC laws vanish inside a courtroom � remains to be seen.

NEW BOOK ON CULTURAL REVOLUTION BANNED IN COMMUNIST CHINA
Photographer Li Zhensheng took a slew of pictures in Communist China during the bloody Cultural Revolution.  After years of hiding them, Li is finally publishing his pictures in a new book, a book that is, naturally, banned in the PRC.  Report: BBC

OTHER MAINLAND NEWS
RURAL CADRES TOLD TO LIGHTEN UP AS AVERAGE FARMER INCOME FALLS
The Communist leadership put the word out to rural cadres to use �a gentler approach towards disgruntled rural petitioners as riots and disorder increase in rural areas.�  This in part is due to the fact that the average income in the PRC�s rural interior has fallen � again � to less than one and a half dollars a month.  Report: Willy Wo-Lap Lam, CNN

COMMUNIST BANKING SYSTEM �INSOLVENT,� SAYS STANDARD & POORS
In its report on Communist China�s economic situation, Standard and Poors called the PRC banking system �insolvent� (BBC), citing a bad loan level of 45%.

MANNED SPACEFLIGHT ON TRACK FOR �NEXT THREE MONTHS�
Communist China told the rest of the world that its first manned spaceflight would occur �time within the next three months� (BBC).  Some are speculating that they could launch sooner.  The PRC is planning to put someone on the moon in 2010 (see 5/22/02 Update).  Also reporting: CNN

INTERNATIONAL NEWS
FORMULA ONE TO HOLD RACE IN COMMUNIST CHINA
The Formula One racing circuit will hold a race in Communist China on September 26 of next year.  Report: CNN

REPUBLIC OF CHINA (TAIWAN) NEWS
TAIWAN TAKES ITS CASE TO THE UNITED NATIONS AGAIN
The island democracy of Taiwan takes its case for representation in the United Nations to the General Assembly today.  The ROC is the only piece of real estate on the planet without UN representation, thanks to pressure from Communist China.  Report: Newsmax

Hong Kong was unusually quiet this week.

TIBET NEWS
DALAI LAMA MEETS PRESIDENT BUSH, FINDS �GENUINE SYMPATHY�
The Dalai Lama met President Bush last week, and said the President showed �genuine interest and genuine sympathy� (CNN) in his quest for Tibetan autonomy.  Tibet�s spiritual leader also addressed �a packed audience� (Washington Times) at the National Cathedral.

Contrary to Communist propaganda, Tibet�s spiritual leader has asked only for autonomy, not independence, for his homeland.  Also reporting:
BBC

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