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Xinhua: China will issue “2007 US Human Rights Report”

The Press Office of China’s State Council will issue a "2007 US Human Rights Report" on March 13, according to Xinhua News Agency. The release of this report, its 9th year in a row, is a direct rebuttal to "Country Reports on Human Rights Practices" released by the U.S. State Department on March 11 which, according to Xinhua, slanders China’s human rights record with groundless accusations.

Source: Xinhua, March 12, 2008
http://news.xinhuanet.com/newscenter/2008-03/12/content_7771221.htm

Chinese Nationals Attending Paralympic Games Must Submit Personal Information

Chinese nationals attending the opening and closing ceremonies of the 2008 Beijing Paralympic Games must submit their photo IDs and other required personal information in order to qualify for tickets, according to an announcement made by the official Beijing Organizing Committee for the Olympic Games on March 7. The announcement stated that this procedure was put in place in order to boost security, eliminate ticket scalping, and protect the rights of legitimate ticket buyers. The announcement applies to Chinese nationals only and the required materials must be submitted in person with true and accurate information or the tickets will be revoked.

Source: Xinhua, March 7, 2008 h
http://news.xinhuanet.com/sports/2008-03/07/content_7739560.htm

Veteran Chinese Journalist Calls for Direct Elections and Freedom of Assembly

Radio Free Asia reports that Chinese veteran journalist, writer, and scholar Lin Changzhou published an open letter to top Chinese leaders through Radio Free Asia during the “Two Conferences (National People’s Congress and Political Consultative Conferences),” calling for direct elections and freedom of assembly, as well as pursuing a renaissance of national fundamental values. The 41-year-old Lin was the former deputy editor of the newspaper BEIJING DAILY MESSENGER.

Source: Radio Free Asia, March 10, 2008
http://www.rfa.org/mandarin/shenrubaodao/2008/03/10/ling/

China’s Mega Plane Project to Enter Working Phase

Xinhua reports that China’s mega plane project has finished its preparation and will soon enter its working phase. Zhang Qingwei, director of the Commission of Science, Technology, and Industry for National Defense, revealed the news to China News Agency on March 8, 2008. Zhang emphasized that there are two main principles in the administration of the project. First, is to combine military purpose with civilian usage and have a military perspective within the civilian designs. Second, is to replace traditional industry methods with information technology.

Source: Xinhua,March 10, 2008
http://news.xinhuanet.com/mil/2008-03/10/content_7754449.htm

Xinhua: Chinese Hacker Story by CNN a “Complete Fabrication”

Global Times, a subsidiary of People’s Daily, published an interview with Xiao Chen, a young Chinese internet hacker who was featured in CNN’s March 7 exclusive "China Hacker" story. "CNN’s story is completely fabricated", said Xiao Chen who also denied that his team had successfully attacked Pentagon’s website nor  that his website have received any funding from the Chinese authorities. The article criticized the US media’s fanfare of the so-called "China’s Internet Threat". It quoted a statement from the Minister of the Foreign Affairs that neither the Chinese government nor the military would hire civilian hackers to attack the government networks of other countries.

Source: Xinhua, March 10, 2008
http://news.xinhuanet.com/mil/2008-03/10/content_7754330.htm
Related CCN article: http://www.cnn.com/2008/TECH/03/07/china.hackers/index.html

Persecution of Falun Gong Escalating in the Run-Up to the Olympics

As the Olympics is approaching fast, there is no sign of improvement in the human rights in China other than continuous efforts by the Communist Party to cover-up the human rights violations.  In fact the Communist Party is escalating the suppression of the Chinese peoples’ speech, beliefs, even the most basic right to live, using the excuse of hosting the Olympics, particularly in the persecution of Falun Gong.  Recent cases of Falun Gong practitioners being arrested, detained, tortured, killed, or homes ransacked have been on the rise. The persecution has intensified.  The following contains translated excerpts from Falun Dafa website, Minghui.org.[1]

In 2005, Deputy Minister of Public Security Liu Jing received an order from the Communist Party to eliminate Falun Gong before the Olympics.  To implement the order Liu issued a mandate to the national police system. In March 2007, the former Minister of Public Security Zhou Yongkang issued another order, demanding a second round of severe persecution against Falun Gong. Soon after, massive arrests of Falun Gong practitioners took place in several regions. Practitioners were detained or sentenced to prison.  Some have gone missing while others have been tortured to death.  During the abductions and arrests, police clamored, “[There is an ] order from the above: kill a batch before the Olympics."

Beijing Seized with Terror as Olympics Approaches

Sources from Mainland China indicate that, as the 2008 Olympics approaches, Beijing has been seized with terror.  Police are searching people’s bags at Tiananmen Square, main traffic intersections, and vehicles that exit the highway going towards Beijing. Those who enter Beijing by train must now show their ID paperwork, along with their tickets. This practice is usually used one or two weeks before the Communist Party Congress, but this time it has begun a full eight months before the Olympics would start. On January 24, 2008, police in Chaoyang, Chongwen, and Shunyi Districts barged into Falun Gong practitioners’ homes or workplaces to ransack and perform illegal arrests. On January 25, 2008, police were all over Beijing stopping vehicles and checking passenger IDs. Sources say that the funding for persecuting Falun Gong has also increased.

Falun Dafa website Minghui.org reports that several dozen Falun Gong practitioners in Beijing were arrested in December 2007, followed by more arrests in January 2008. Over twenty were detained on January 23-25, 2008, including some practitioners’ family members and colleagues.  Some insiders indicated that some practitioners’ friends have also been taken away.  The actual number of those detained appears to far exceed what is reported here.

Inside sources said that the detained Falun Gong practitioners were brutally beaten without normal processing or questioning.  Many were arrested without pretext, at home or at their workplaces, and then sentenced to eight months or more of forced labor, which will end when the Olympics is over. The forced labor camps in Beijing are full, so camp administrators are transferring practitioners out of town.  This is the so-called preemptive “Hard Strike” launched by the Party in the run-up of the Olympics.
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Peaceful on the Surface Yet Persecution Intensifies

In 2007, seven Falun Gong practitioners died in Daqing City as a result of the persecution. They include Mr. Zhang Hongquan, Mr. Zhou Shuhai, Ms. Jiang Pai, Ms. Liu Sheng, Ms. Ma Bing, Ms. Zhang Baoying, and Mr. Ni Wenkui.  In 2007, several dozen abductions occurred targeting Falun Gong practitioners and their families. For instance, on the morning of April 25, 2007, police from the Dong’an District arrested practitioner Ms. Lu Guilan and her son Yan Jiaohui who is not a practitioner.

Masanjia Forced Labor Camp is notorious for locking female Falun Gong practitioners in male cells. On February 21, 2008, Director Wang had many "dead person’s beds"[2] shipped to Masanjia, ordering prisoners to torture those Falun Gong practitioners who were holding hunger strikes. According to eyewitnesses, four practitioners, Mr. Chen Kaiqu, Mr. Liu Qing, Mr. Gao Yuling, and Mr. Han Ximin were beaten to the point of becoming deformed. Mr. Zheng Haitao and Ms. Chen Yan were tied to the dead person’s beds, their four limbs pulled apart, with a horse’s bit inserted into their mouths so that they could not talk. Brutal force-feeding torture was then carried out on these practitioners.

Severe Torture and Death Cases on the Rise

Information from Falun Dafa website Minghui.org shows that the Chinese Communist Party has engaged in renewed campaign in the name of the Olympics to further persecute Falun Gong.  Falun Gong practitioners who have been arrested at their workplaces or homes have gone missing, and arresting officers are refusing to tell their families the whereabouts of the arrested practitioners, are not allowing visits, or have denied the fact that they arrested these practitioners. Eyewitnesses in Xinjin County, Sichuan Province, and Rong County in Guangxi Zhuan Autonomous Region revealed that the police put masks on the practitioners’ heads when they arrested them. In 2007, the number of confirmed deaths reached one hundred twenty three practitioners. In January 2008, there were another eight confirmed deaths.

Endnotes:
[1] Minghui.org, February 27, 2007
http://minghui.ca/mh/articles/2008/2/27/173204p.html
[2] Dead person’s bed – the victim is tied to the four corners of a cold metal bed frame and not allowed to get up to eat, drink, or use the bathroom. The torture typically lasts from several hours to over ten days.

China’s Strategies on Financial Market for Petroleum

China’s two-pronged strategy for meeting its giant oil-consumption needs involves seeking oil-producing countries as long-term strategic partners while simultaneously attempting to play an important role in the global oil market.  China recognizes that the international economy is greatly impacted by the US dollar being the only currency for oil price quotes. This has been observed especially in light of the way in which the US dollar has been gradually devalued during the sub-prime mortgage crisis. The oil price hike has brought tremendous pressure on China to appreciate its currency, the RMB.  As a result, China is currently striving to establish a forward market for crude oil so as to secure domestic resource supplies even while counteracting the expansion of US influence into Asia, thus bringing the country to play a larger role in the world oil market. The following translation is of an article on Xinhua News, February 24, 2008, entitled “Some Thoughts on China’s Strategic Financial Planning with Regard to the Petroleum Market.” [1]

Oil prices twice exceeded $100 per barrel within the last week. In addition to the supply and demand for petroleum and international political factors, the devaluation of the US dollar and fund speculation certainly have played a crucial role in the rise of the price of oil. The oil market is becoming an increasingly important aspect in finance. As a giant consumer of oil, China must fully exploit financial strategies to counter the fluctuation of oil prices as an important aspect of its strategic planning for energy and resources.

Negative Effects of the “Oil and Dollar” Duet

The US reached an agreement with OPEC in the 1970s; namely, the US dollar would be the only currency for oil price quotes. Since then, the petroleum market has been intimately tied to the fluctuation of the US dollar. Suffice it to say, with the ups and downs in the price of oil, the variety of incidents which suddenly emerged [recently] have merely been superficial triggers while it is the decisions made by the US Federal Reserve (the Fed) that are the “main switch” ultimately determining the direction of oil price.

Since the sub-prime mortgage crisis, the Fed lowered interest rates three times–on September 18, October 31 and December 11 of last year. As a result, international oil prices rose immediately each time.  On the same day that the interest rate was lowered, the forward price of light crude oil increased $0.94, $4.15 and $2.16, respectively, from the price quoted on the previous transaction day.  The first two rate cuts resulted in record high crude oil prices at $81.51 per barrel and $94.53 per barrel, respectively, on the same day that the rate cut was announced.

The devaluation of the US dollar keeps pushing up the price of oil. The exchange rate between US dollars and 14 other major currencies all dropped during the last year.  For example, the exchange rate with the Euro dropped by about 10.5%, and with the Japanese Yen it dropped by about 6%. Studies show that when the US dollar devalues by 1%, the prices for energy and crude materials rise on an equivalent scale.  Currently, if converted to Euros, oil priced at $100 is equivalent to last year’s price at $60.
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At the same time the depreciation of the US dollar has made oil and gold more attractive to speculators.  According to experts, speculation has resulted in at least a $25 increase in oil prices. The forward business of West Texas Intermediate (WTI) has increased 18% annually since the beginning of this century. The forward business was expected to have reached 1,300,000 transactions per day, amounting to 1.3 billion barrels per day, which is 15 times the daily consumption of the whole world. At the end of last year, hedge funds invested in the petroleum market had reached $200 billion, a 60% increase from the beginning of last year.

In the face of the US dollar’s devaluation and increasing oil prices the US only needs to increase its export capacity to counteract the negative effects on the US economy.  Other countries such as the European Union, Japan and the UK, are able to exchange their currencies with the US freely; they can easily handle the increased oil price by appreciation of their respective currency. However, as China’s currency cannot be traded with US dollars freely as of now, we have to endure the dual pressure from both the increase in oil cost and the appreciation of the Chinese RMB. As a giant consumer of oil, it is a hard reality for us to swallow.

Financial Strategies Need to Be Exploited to Counter Oil Price Fluctuations

The price quote for oil sold to Europe from the Middle East is currently tied to Brent Oil forward pricing; oil sold to the US is tied to WTI forward pricing and oil sold to Asia is priced with reference to Platt’s Oil Price Index. The Platt’s Oil Price Index is based on the evaluation of spot market trading status, which can be easily manipulated. According to statistics, light oil from Saudi Arabia sold to northeastern Asia is usually higher by $1 per barrel than the same oil sold to Europe, and higher by $3 per barrel than oil sold to the US. This single item costs us $0.5 billion to $1.5 billion in oil import expenditures every year. The core issue in strategic oil planning for a nation lies in whether or not the pricing of petroleum is reasonable and can be stabilized within a certain range. In order to change the aforementioned negative effects, China proposed the  first draft of the Energy Act at the end of 2007, stating that “the government will establish a mechanism for energy pricing with market regulation being the dominating force.”

Then, how do we arrive at a “market price” for oil imported to China? The answer is, establishing a rational financial strategy for petroleum and encouraging more enterprises to get into the international oil financial market, getting actively involved in an attempt to quote oil price in RMB and gradually establishing an oil business forward market, so as to counteract the inflated oil price. Among all these strategies, establishment of an oil forward market would be our final choice. In order to change the current status wherein the price we pay for oil is higher than what Europe and the US pay, we need to develop a crude oil forward market, so that we have the right to participate in price quoting for crude oil.

After the refined oil is priced on an open (freely-traded) domestic market, the refined oil forward market will also need to be established to set the oil price.  In addition, the huge petroleum reserve accumulated by the business transactions of the Petroleum Exchange will also serve to replenish the petroleum reserve in our country.
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Nonetheless, we will have to face a lot of issues during the establishment of a crude oil forward market. Japan, India and other Asian countries have expedited the formation of these forward markets, trying to be key members in the control of oil pricing in the Asia-Pacific region. Some European countries and the US also hurriedly expanded their force into Asia-Pacific, attempting to strangle the formation of an independent oil pricing control system within the Asia-Pacific region.  Inside China, many oil-related companies cannot participate in the import trade of crude oil, yet they are not motivated to join the establishment of the forward market. In addition, as to whether we should continue to quote prices in US dollars in order for us to have a certain degree of international influence or to quote prices in RMB for the sake of a long-term, stable development, we do not have a final answer yet.

Presently with the financial system in the process of globalization and the international currency system constantly changing and adjusting itself, some oil supplying countries have started to request that buyers close transactions with currencies other than the US dollar. We have started to see the emergence of “oil price in the Euro” and “oil price in Japanese Yen.”  The oil pricing system and currencies used in oil transactions are becoming more diversified. Many oil-supplying countries are willing to accept RMB in trade for oil.  In the face of an oil price increase pressuring China to appreciate the value of our RMB, it is a good choice to gradually attempt to quote oil prices in RMB.

China’s investment fund has not yet made its way into the international oil market. A few giant oil companies, after government ratification, will be able to enter the outside forward market to secure the long-term price of oil; however, because doing so will get too much international attention and because there is a lack of a related mechanism inside China, we will be placed in a very passive position.  In addition, China does not yet have a hedge fund. So, speculation funds cannot enter into an international petroleum forward market for the time being. These are undoubtedly negative factors for China’s economy. With the development of a domestic forward market, the growth of investment funds, and the opening up of financial business, we should soon move investment funds into the international petroleum market, so as to make a profit from the big fluctuations in the price of oil.

Endnotes:
[1] Xinhua, February 24, 2008
http://news.xinhuanet.com/newscenter/2008-02/24/content_7660540.htm

The Olympics and Politics

First of all, “do not politicize the Olympics” itself is not a tenable statement. There are many requirements for a nation to be able to apply to host the Olympics; from its social condition to its economic situation, from its degree of globalization to its government’s management ability, all of these are subjects that cannot be resolved simply with sports. When China won the right to host the Olympics, the entire nation rejoiced and all agreed that it represented “the rise of the Chinese people.” Can sports, as a single field, cover the meaning behind it all? Because of its history and traditions, being able to host the Olympics has become an honor for the chosen nation. Otherwise there would not be so many nations fighting for it every four years. But how can an honor to a nation be represented just by sports? Back in the days when the U.S.S.R invaded Afghanistan, many western countries refused to attend the Olympics. At that time, the government of China did not step out to uphold “justice” and call for “do not politicize the Olympics.” Why then, when it comes to itself, is it using a different standard?

Secondly, in the several years since China won the right to host the Olympics, the Olympics has become one of the Chinese regime’s most important tasks. It has used the whole nation’s strength to ensure that the Olympics will be carried out successfully. Is sports the only motivation behind all of these actions? China has spent so much. Was all it was aiming for to make China’s track, swimming, and so on, to rank high in the world? In order to ensure the Olympics to be hosted without anything going wrong, the government of China made a black list that forbids 43 types of people from watching this sports gathering; so who is the one politicizing the Olympics? The government of China arranged that the presidents from North Korea and South Korea would sit together in the audience, and also asked the South Korean team to take the train from Soul to Pyongyang, and then take the same train to Beijing with North Korea’s team; who is the one politicizing the Olympics? When all layers of governments in China were required to put “making sure the Olympics goes smoothly” as their main task, is it really that China has made sports the highest objective of its regime? If not, who is the one politicizing the Olympics?

Of course hosting the Olympics is an honor for China. But it is exactly because it is an honor to the Chinese people that, as patriotic Chinese people, we hope that what China shows to the world is a civilized, democratic, thriving, and free nation, not a government that supports genocidal massacres internationally, and then domestically arrests its own people who have different political views. If these were our wills, even if we “politicize” the Olympics, how can we be wrong? Isn’t it true that a nation with improved human rights conditions will be more applauded and supported by the world? The government of China is thinking of every possible way to use the Olympics to make political profits for its reign, and is using the Olympics’ politicizing factors to the maximum degree, while continually saying to others to stop “politicizing the Olympics.” This is not only an action of “allowing officials to set fire but not common people to use lights;” it also exposes the Chinese Communist regime’s duplicity and hypocritical nature.

Endnotes:
[1] Wang Dan was born on Feb 26, 1969 in Beijing. His ancestors were from Heyi, Shandong Province. He was one of the main student leaders at the Tiananmen Square Protests in 1989. Before this democracy movement led by students, he had organized activities to commemorate Hu Yaobang, wrote articles to support democratic groups, and so on. The government of China has arrested him many times.
[2] Radio Free Asia, February 20, 2008
http://www.rfa.org/mandarin/pinglun/2008/02/20/wang_dan/