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Politics

Chinese President Hu Jintao is visiting Japan for a diplomatic summit on Sino-Japanese relations.  Some are optimistic that Hu and Japanese Prime Minister Yasuo Fukuda can settle claims on undersea gas resources in the East China Sea by summer. The two leaders will also engage in some literal ping-pong diplomacy.

It’s still unclear what is causing the high number of hand, foot, and mouth disease cases in Anhui province. Almost 16,000 cases have been reported, including 28 fatalities likely linked to a coupling with the virus EV71. Government officials say that the high fatalities are not evidence of a new strain.  Infections in Singapore and Vietnam are also much higher than normal this year. The Chinese government plans to step up public hygiene efforts to combat the spread of infectious disease this summer.

The Chinese State Food and Drug Administration, charged with investigating the contamination of the blood-thinner Heparin, has accused U.S. drug company Baxter of being unhelpful in the investigation. It also maintains that the link between the drug and the deaths in the United States has not yet been proven since other countries using similar substances reported no such fatal allergic reactions.

China acknowledged that changes in visa restrictions are taking place ahead of this summer’s Olympic Games. However, the Foreign Ministry insists that the changes are “according to the practice of the past Olympics and usual international practice.” Fewer (if any) multiple entry visas will be issued and some travelers may need letters of invitation, and proof of hotel accommodations and return air tickets. Previously, the ministry had denied that any changes were planned.

Concerned about overspending on student subsidies, the Chinese government is limiting the growth of doctoral programs to less than two percent annually in favor of professional degree training programs. China is the world’s leader in turning out phD's with an estimated 60,000 in 2007, yet over half of graduating candidates end up in government rather than academia.

Economy

The Hong Kong stock market is looking abroad for investment growth and hoping to attract sovereign wealth funds. Government intervention in the Shanghai market is hurting its international reputation.

Forget poverty assistance programs, relocation is the best way to help drought-stricken farmers in Ningxia Hui Autonomous Region in northwestern China, said a local official. Around 206,000 people will be relocated over the next five years to irrigated and suburban areas along the Yellow River that can better support them at a cost of $406 million.   

China’s household spending power will surpass that of Britain’s by 2017, putting it third in the world behind the U.S. and Japan according to a forecast released by Barclay’s and the Economist Intelligence Unit today. Full report (PDF).

Taiwan

Three Taiwanese government officials have resigned as investigators searched their homes and offices for clues in the case of the missing $30 million in “diplomatic aid” to Papau New Guinea. There is a middleman on the run according to the International Herald Tribune.  

Analysis

The American Institute in Taiwan held a video conference panel discussion on Tuesday about the U.S.-Taiwan relationship in light of coming political changes in both countries. Speakers included Robert G. Sutter of Georgetown University, Alan D. Romberg of the Stimson Center, and Bonnie Glaser of CSIS. The Taipei Times reports on the event saying that experts don’t expect big changes.

Jamil Anderlini of the Financial Times looks at the latest incarnation of China’s fenqing, or hyper-nationalistic “angry youth.”

Adidas CEO Herbert Hainer sits down with Der Spiegel to talk about the role of his company’s gear in the torch relay saying, “I don’t have a guilty conscience,” and stressing the company’s commitment to sports, not politics. (Hat tip: The American's Duncan Currie.)  

This week's China moment

It took forty workers 48 hours to complete the world's largest Chinese flag. The flag is roughly 200 x 300 feet (88.88 meters- note the lucky eights). The banner was so big, it needed a last-minute switch to a larger-class airplane as it left Beijing. It will follow the torch relay around the country and go on display in Beijing a day before the Olympic Games. (Hat tip: Passport reader Andrew Schorr)

Politics

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The Olympic torch relay has returned to China, passing through Hong Kong today. Three Danish pro-Tibet activists were denied entry to Hong Kong ahead of the events. Earlier, protests during the Seoul leg of the relay turned violent, and South Korea plans to deport the Chinese demonstrators involved.

China announced its willingness Friday to talk with the Dalai Lama but condemned him on Monday for manipulating foreign opinion. 

In the first round of sentencing from the Lhasa riots, a Chinese court found 30 people guilty of crimes including arson to disrupting public services.

A deadly virus, EV71, has broken out in Anhui province with over 900 cases and the deaths of 20 children. The outbreak began in March but wasn't reported until this past Sunday.

French supermarket chain Carrefour, in a bid to bolster its patriotic image, clad employees in new uniforms with the Chinese flag including hats bearing the Olympic rings and "Beijing 2008." The Beijing Organizing Committee for the Olympic Games promptly deemed the hats a copyright infringement.

A Chinese student threw a water bottle at a Tibetan monk during a lecture at the University of Southern California. Several other American universities have seen clashes between pro-Tibet and pro-China students.

A Guangzhou newspaper has uncovered a disturbing child-labor ring in Guangdong province. More than 100 children were rescued after reportedly being sold or kidnapped into labor and forced to work up to 300 hours per month.

Economy

China and India will likely sustain Asia through a global economic slowdown, according to Standard & Poor's.

U.S. regulators are questioning China's ability to control its products after at least 81 U.S. patients died from contaminated doses of heparin, a blood thinner. The contaminant was traced back to a Chinese supplier of an ingredient that gets processed into the final product by Baxter, a multinational company. The FDA suspects the act may have been intentional.

Officials were sacked and excessive speeding blamed for the worst train accident in a decade. The accident, which took place in Shandong province, killed 70 and left hundreds injured.

China may become a corn importer as government incentives are not pulling farmers away from other crops such as soybeans, green beans and red beans.  The reason? High fertilizer costs.

Taiwan

Chinese President Hu Jintao and Taiwan's KMT leader Lien Chan met in Beijing Tuesday, though the contents of the meeting were not disclosed. Their fourth since 2005, the meeting has added significance now that Taiwan's President-elect Ma Ying-jeou will be taking office on May 20.

Analysis

William F. Schultz, former head of Amnesty International USA, argues that pressuring Beijing over the Olympics will take more finesse than human rights groups are currently employing.

British politician Charles Tannock asks why the West embraces Kosovo and Tibet but is ignoring Taiwan in its struggle for nationhood in a piece for the Taipei Times.

A New York Times editorial looks at the contaminated Heparin case and asserts that U.S. companies need to ensure the safety of their products.

China's energy outlook for the summer may be grim as demand outstrips supply causing more brownouts, according to Emma Graham-Harrison of Reuters. The energy shortfall will also produce an increase in oil demand, she predicts.

This week's China moment

A vice-mayor of Tianjin ordered the removal of a 2 million yuan ($286,000) sculpture at a new airport terminal days before its official opening because he didn't like the color. Gag orders were issued to the media but went unheeded as CCTV gave the story "unusually frank coverage," according to Reuters.

ADEK BERRY/AFP/Getty Images

Politics

Next stop for the Olympic torch? Canberra, Australia. Protests are already underway as two people were arrested for trying to unfurl a banner on the Sydney Harbour bridge. People also beamed a laser message on the bridge saying "Don't Torch Tibet." Needless to say, security will be high for the relay leg tomorrow.

French supermarket chain Carrefour's chairman Jose Luis Duran told Xinhua his company would support the Olympics and that protesters have ulterior motives. He also denied supporting the Dalai Lama. The Chinese government praised the chain the same day as the interview.

The Tibet crackdown is still having some aftershocks, as a prominent Tibetan broadcaster/performer was detained.

The Financial Times is launching a Chinese-language publication ahead of the Olympic Games geared at China's growing stock of professionals. Playboy is also expected to be granted circulation for a month "to meet the demand of overseas visitors during the Olympics," according to Reuters.

Economy

China will continue rice exports, which may help alleviate the global food crisis. China produces almost a third of the world's rice.

In China's continued economic efforts in Africa, China Railway Group will embark on a $2.9 billion joint venture with Sinohydro Corp in a copper and cobalt mine in the Democratic Republic of Congo. The deal, which is awaiting the DRC government's approval, includes a provision to limit Chinese workers to 20 percent of the total in an effort to curb local resentment.

Nationalistic fervor is hitting the racks as new T-shirts come out with slogans like "Go China!" and "Tibet WAS, IS, and ALWAYS will be a party of China!" Chinese officials say Olympic ticket sales have not been affected by the torch relay protests.

Although China claims "great progress" on intellectual property enforcement, the EU announced it will ask China to step up efforts ahead of the Olympics. According to the OECD, the global fake goods market is around $200 billion a year or 2 percent of the world's trade, with much of it originating in China.

Taiwan

President-elect Ma Ying-jeou wants to implement tax incentives to lure investment to Taiwan, especially in technology. He also plans to make it a priority to remove the 40 percent cap on mainland investment designed to make Taiwanese multinationals more competitive (though HSBC analysts predict the move won't help since production prices in China are soaring). Also, Chinese banks and insurance firms will be allowed to set up offices in Taiwan as soon as late May.

Taiwan is investing almost $1 billion in infrastructure to prepare for the influx of mainland tourists that Ma's reforms are expected to bring. According to Reuters, 50 million mainland Chinese have expressed interest in visiting the island.

The U.S. is requesting $170 million for a new American Institute in Taiwan compound (the unofficial embassy) that may include a Marine barracks.

Analysis

In a piece for the Financial Times, Coca-cola Chief Executive Neville Isdell talks about the company's role in politics relating to Darfur and the Olympics.

U.S. policy in the Pacific is weakening, according to Michael Auslin of the American Enterprise Institute. And Philip Levy has a new working paper that discusses the potential for democracy in China in the wake of changes in the economy, technology, and the rule of law.

For more on the controversy surrounding China's presence in Africa, check out Serge Michel's "When China Met Africa" in the new issue of FP (subscribers only).

Politics

NG HAN GUAN/AFP/Getty Images

Chinese President Hu Jintao publicly commented on events in Tibet for the first time Saturday, citing the unity of the nation as the issue at heart between Beijing and the "Dalai clique." Meanwhile, the Dalai Lama's aids have engaged in some talks with Beijing.

The European Commission doesn't support Olympic boycotts, but has "legitimate worries" about human rights in China ahead of Europe sending its largest trade delegation ever to Beijing.

The Chinese government has ordered a halt to construction projects and even outdoor spray-painting in the weeks leading up to the Olympics in order to improve the Beijing air. Smoking will still be permitted in bars and restaurants, however, due to pressure from businesses over potential revenue losses.

A historic 20-minute encounter between the Chinese President Hu Jintao and Taiwan's Vice President-elect Frank Siew Saturday has Beijing "thinking deeply" about improving cross-strait relations and agreeing to direct flights and increased tourism between the mainland and the island. A Taipei Times editorial downplays the meeting.

The Olympic torch relay continues to be a security concern as the Pakistan leg today was confined to a heavily guarded stadium with an invitation-only audience. India gears up for its segment today in New Delhi and has shortened the run from 6 to roughly 2 miles. The main spectators? The 15,000 policemen guarding the route. Some in the Australian-Chinese community have vowed to protect their portion of the run next week in Canberra by forming a "people's army" against pro-Tibet "scum."

Chinese netizens have started their own anti-CNN Web site. The site came under attack from hackers (translated) last week, and CNN Jack Cafferty dumped more fuel on the fire by calling the Chinese government a bunch of "goons" and "thugs." China is demanding an apology. Ironically, CNN ran an editorial the same day urging people not to demonize China ahead of the Olympics.

Economy

China's State Administration of Foreign Exchange fund bought an almost 1 percent stake in British Petroleum. Britain's Finance Minister Alistair Darling  welcomes Chinese investment.

The New York Stock Exchange may be the first foreign stock allowed to list on a Chinese market. Caijing magazine cites an anonymous official as saying NYSE is attractive for its "market value, performance, and compliance."

A series of lawsuits have placed mostly symbolic blame on Chinese companies for forgery. Gucci won a suit against Yaohan and Senda for trademark infringement over merchandise bearing the "GG" logo. Senda paid $26,000 USD in damages. Last week, Italian confectioner Ferrero also won a suit against Chinese firm Montresor for selling a copycat product and received about $79,000 USD in damages.

China Power Development International Ltd. plans to double power generation capacity by 2010. By the end of this year, it projects generation capacity of 10,000 MW or roughly five Hoover Dams.

Commentary

Brookings features an interview this week between Diane Rehm and a panel discussing the Olympics controversy. Brookings Senior Fellow Cheng Li says the Xinjiang Olympic terrorist plots are a real problem but are also inflected with government strategy to emphasize anti-terrorism. IOC member Dick Pound says an international torch relay is not a good idea. Whoops.

Kent Ewing with the Asia Times explains how Chinese nationalism is resisting a supposed onslaught of humiliation from the West, and the effect of the "wheelchair angel."

Matthew Forney of the International Herald Tribune talks about why the Chinese youth are so supportive of their government. George Vecsey weighs in on why we shouldn't boycott the Olympics, as all games have had their flaws. 

Justin Sullivan/Getty Images

Politics

The Olympic torch relay was disrupted by protests in London on Sunday and Paris on Tuesday. French officials were unhappy with the way the Chinese security detail handled the relay, and one athlete became upset when the torch was extinguished before he could hand it off: "Given what happened yesterday, the athletes are asking themselves one question: how will they be treated in Beijing?"

Protests are underway in San Francisco as the torch relay passes through today, and the local Chinese community is divided in political sentiment. Public security was bolstered as police officers' vacations were cancelled, and a high-profile Golden Gate Bridge protest Monday turned the structure into an independence banner. (Pictured above.)

Sentiment is turning sour in the United States as a Zogby poll yesterday revealed that 70 percent of American voters think it was wrong to choose China as this year's Olympic host (up from 39 percent last May). As far as boycotting the games, 31 percent of respondents were in favor. 

The presidential candidates are weighing in on China. Hillary Clinton has been particularly strident and called for President George W. Bush to skip the opening ceremonies. Bush still plans to attend, though he won't see German Chancellor Angela Merkel or British Prime Minister Gordon Brown there. (French President Nicolas Sarkozy is still on the fence).

Chinese Foreign Ministry Spokeswoman Jiang Yu described (video) the Dalai Lama as "the head representative of the serf system which integrates religion with politics in old Tibet...the darkest slavery system in human history."

The communist party leader in Tibet said that order has been restored following violent protests, but warned there could be more trouble when the torch relay passes through next month.

On Thursday, U.S. Secretary of State Condoleezza Rice criticized China for sentencing activist Hu Jia to three and a half years in prison for criticizing the government online.

Economy

Bank card sales rose 58 percent last year to $428 billion. With 1.5 billion bank cards in China at the end of 2007, China Banking Regulatory Commission Vice Chairman Guo Ligen warned that IT systems need to be updated to accommodate the heavy traffic.

Hong Kong budget airline Oasis went bankrupt amid a 73 percent rise in fuel costs last year. It was the fourth budget airline worldwide to halt operations in less than two weeks.  

Disney announced yesterday it will purchase Chinese gaming company Gamestar. It also plans to launch Disney-themed games in the highly successful Chinese online gaming industry with Shanda Interactive Entertainment. Intel also announced a $500 million investment fund geared toward Chinese technology start-ups.

A draft food safety law has been submitted for approval requiring products to have a bar code by the end of the year. The policy is aimed at improving food safety nationwide. Critics argue the measures don't cover raw materials and small companies.

China and New Zealand signed a free trade agreement Monday, the first such deal between China and a developed nation. Trade between the two nations is currently around $6.1 billion per year.

Taiwan

Vice president-elect Vincent Siew may meet with Chinese President Hu Jintao at this week's Boao Forum for Asian development. Critics worry Siew could fall into a "unification trap."

Foreign funds have invested $1.2 billion in Taiwan stocks this year (the highest of any Asian market) in anticipation of improved ties with China. But, early gains may not be as high as was hoped because of political tensions.

Analysis

Yale economics professor Zhiwu Chen argued that China should decrease its state holdings to combat wealth inequality in a lecture on Tuesday.

There are plentiful op-eds about China and the Olympics -- the New York Times says China should demonstrate its worthiness, Philip Bowring calls China an angry young bull, and Christopher Bowe argues that China is playing with fire: "The run of relatively protest-free games dates only from Seoul and Barcelona. If the IOC did not see that the 2001 decision to award the games to Beijing was likely to end that run, it was extraordinarily naive."

AFP/Getty Images

Politics

U.S. Treasury Secretary Henry Paulson is in China this week to talk about energy and currency valuation, but he has also conveyed U.S. concern over China's treatment of protesters in Tibet. Today, he met with President Hu Jintao to discuss promoting economic ties.

U.S. House Speaker Nancy Pelosi has called for concrete action from Beijing over recent events in Tibet, raising the possibility of an Olympic opening ceremonies boycott. Such an act would "only invite humiliation," the Chinese Foreign Ministry has said.

An "uneasy calm" returned to some parts of China affected by recent protests, according to Reuters. But more protests took place Saturday in Lhasa, the Tibetan capital, overlapping a Chinese government-sponsored trip to Tibet for foreign diplomats. On Thursday, 30 monks burst into a briefing to denounce China during a press briefing for foreign journalists.

India's Foreign Minister, Pranab Mukherjee, has asked the Dalai Lama to refrain from "any action that can adversely affect relations between India and China."

Economy

British-based bank HSBC launched private banking services in China on Monday as deregulation and government approval have allowed the foreign lender access to Chinese customers in Beijing, Shanghai, and Guangzhou. The bank will target people with a net worth of $10 million and projects 16 million "high net-worth individuals" with a pool of $6.2 trillion in total assets in China by 2011.

Speculation persists about the launch of 3G cell phone technology in China -- possibly later this year, which would open up the mammoth mobile phone market to streaming web content. China's mobile-phone market could exceed 300 million units by 2011.

Air China is the world's only airline servicing Pyongyang. Flights commenced on Monday and will run three times per week. Previously, China Southern Airlines flew to the isolated North Korean capital, but halted service after the 2006 nuclear tests.

In a recall role reversal, China banned the sale of Italian mozzarella cheese Saturday due to potential contamination with "cancer-causing dioxins," Reuters reports.

Citigroup Global Research analysts Joe Lo and Patricia Pong forecast that Hong Kong could lose its "middleman" status if Taiwan and the mainland forge direct economic ties.

Analysis

The Carnegie Endowment's visiting fellow Joshua Kurlantzick talks about why recent events in Tibet should not come as such a surprise.

Carnegie's China expert Minxin Pei explains why Ma Ying-jeou's election in Taiwan is an opportunity for China to show goodwill toward the island.

Theresa Hitchens of the Center for Defense Information says the recent U.S. satellite shootdown will be interpreted as a "deliberate 'signal' to Beijing" in "Was the Satellite 'Shoot Down' Worth It?" (March/April 2008 Defense Monitor).

Lighter Fare

Xinhua suggests French President Nicolas Sarkozy get a scalp lift to make him appear taller than his new ex-model wife Carla Bruni. Evidently the surgery is all the rage for "soldiers, police officers, air hostesses, models, and firefighters."

Taiwan

SAM YEH/AFP/Getty Images

Taiwan held its presidential election Saturday, and the winner is... Ma Ying-jeou, who advocates closer economic ties to mainland China. In addition, the referenda on U.N. membership failed. Ma is already laying out his plans for change.

Frank Hsieh, Ma's defeated opponent, is stepping down as DPP party chair.

U.S. President George W. Bush sees a "fresh opportunity" in cross-strait relations, but President-elect Ma is not likely to get a White House visit. U.S. policies forbid Taiwan's diplomats from entering the White House or the State Department. Instead, they "meet senior U.S. administration officials in coffee shops and restaurants," the AP reports.

UBS analyst Ken Chen says decreased political risk and closer mainland ties mean that Taiwan will "outshine other markets" and bring in $50 billion in investment over the next few months.

Taipei Airlines Association is jumping at the opportunity to set up direct flights with the mainland. The proposed new flights could draw 3,000 mainlanders a day to Taiwan, Ma claims. The flights would also allow Taiwanese professionals easier access to mainland job opportunities and make it easier for the nearly half a million already living in Shanghai to visit home.

China

Protests in Tibet are ongoing as an estimated 660 people are in custody over the violence. Details are thin as foreign reporters have difficulty getting into the region, save for 26 journalists on a state-sponsored access pass.

The United States is still pushing for dialogue between China and the Dalai Lama. Secretary of State Condoleezza Rice on Monday urged "a more sustainable policy for the Chinese government concerning Tibet." Chinese ex-official Bao Tong, ousted after the Tiananmen Square incident, also called for talks with the spiritual leader.

China is firing back at Western media coverage of Tibet. It goes without saying that censorship is widespread in China, and CNN and other news channels often go dark there when politically sensitive issues receive coverage.

The alleged perpetrators in a botched plane attack on March 7 from Xinjiang to Beijing hail from Pakistan and Central Asia and advocate independence for Xinjiang, China's predominantly Muslim western province. China Southern Airlines gave a cash reward to the crew that foiled the attack.

China will redouble efforts to preserve its cultural heritage in arts and architecture. About 100 forms of Chinese opera, for instance, have died out in the past 60 years.

Economy

By 2025, China will have 221 cities with over one million residents. A report by McKinsey Global Institute recommends the government build supercities to reduce strain on land, water, and energy resources while boosting productivity and efficiency.

A diesel shortage has hit China's east coast due to a harsh winter and increased demand as spring approaches.

China's sovereign wealth fund, China Investment Corp., and China Life Insurance Co. bought into Visa's IPO, the largest U.S. IPO in history with stakes of $100 million and $300 million respectively.

Analysis

The Carnegie Endowment's William Chandler argues for Sino-American emissions cooperation in Breaking the Suicide Pact: U.S.-China Cooperation on Climate Change.

Robert Kagan, also of the Carnegie Endowment, questions what a "responsible stakeholder" in the world order means for China in light of its autocratic behavior.

And finally, China will attempt to modify the weather during the Beijing Olympics to provide the best conditions possible for athletes. ABC reports that in 2010, if the experiments this summer are successful, China will create a government ministry devoted to weather modification and double its current efforts at taming Mother Nature.

Getty Images

Taiwan

Taiwan's presidential elections and national referendums will take place this Saturday, March 22. Voters will choose between between Kuomintang (KMT) candidate Ma Ying-jeou (right), who advocates closer trade and transport ties with China, and Democratic Progressive Party (DPP) candidate Frank Hsieh (left), who is more concerned with Taiwan's sovereignty.  Though no polls have been released after March 12 in accordance with the law, Ma leads by differing amounts, depending on whom you ask.

Eighty-five percent of adults in Taiwan say they support applying for U.N. membership. In tandem with the presidential contest, the government is holding a referendum on this question -- a move designed to bolster support for the incumbent party, the DPP.

If the KMT succeeds in taking the presidency, relations with China won't thaw any time soon, says Reuters. Wang Tai-li of Taiwan's National Chengchi University argues that both camps have moved towards the center, as Ma's recent criticism of Beijing indicates.

Ahead of the elections, the Far Eastern Economic Review makes its recent Taiwan coverage available for your reading pleasure.

China

In Lhasa, the capital of Tibet, demonstrations commemorating the 49th annniversary of the Tibetan uprising against Beijing turned violent after locals began attacking ethnic Han Chinese. Tibetan exiles and human-rights groups decried what they said was a brutal crackdown by the Chinese government, while Beijing blamed the violence on Tibetans. China says 16 people died in the clashes while Tibetan exile groups say the number is at least 80.

Premier Wen Jiabao told the Dalai Lama "the door is always open" for talks if he will renounce his Tibetan independance activities. The Chinese government kept up pressure on the spiritual leader, saying "ample facts" point to his involvement in the Lhasa violence.

Premier Wen Jiabao was re-elected to his position on Sunday by the "rubber stamp" National People's Congress. Up-and-comer Xi Jinping was elected vice president instead of being appointed to the military commission, a move that "would have cemented his role as heir apparent to President Hu Jintao," according to Reuters.

In response to U.S. criticism of its human-rights record, China released a report on the state of U.S. human rights.

Human Rights First, a U.S. advocacy group, alleges China is the sole supplier of small arms to Sudan in violation of U.N. resolutions, a charge Beijing denies.

Economy

This "may be the most difficult year for [the] Chinese economy" according to Premier Wen Jiabao, referring to rising inflation and the turmoil in international markets.

Land prices are expected to fall in China this year as the government tightens lending controls.

Alibaba.com announced profits were up 340 percent in 2007. Yet, shares plunged 20 percent Tuesday, leading the Financial Times to suggest China's top e-commerce firm is "the canary that will die ahead of a worldwide recession."

Analysis

Cheng Li of Brookings provides a who's who of China's new economic leaders and the dynamics between them. 

The World Security Institute's winter issue of China Security (中国安全) provides in-depth analysis on the Taiwan issue with authors from various perspectives based in China, Taiwan, the United States, and Singapore.

Lighter Fare

Tibet's oldest person, Amai Cering, celebrated her 117th birthday.

China's Ministry of Public Security released statistics on names for newborns that reflect social trends. Popular examples were He Xie (harmony) after the government's social policy, Ao Yun (Olympics), She Bao (social security), and Min Zhu (democracy).

Guang Niu/Getty Images

There's a great Asian parable about a group of blind men who stumble upon an unknown creature. Not knowing what they have encountered, the men argue as each describes a tusk, a tail, a foot, or a trunk -- until they realize they are all touching different parts of an elephant. One could make an analogy to news reports about China today -- they're all trying to describe pieces of a larger picture. To some, China is the world's most dynamic market. To others, it is an emerging threat, a strategic competitor, a human-rights abuser, or all of the above. Whatever your view, there's no denying that China's rise is a huge story. Because there's so much to cover, each Wednesday, Passport will bring you a weekly wrap-up of the most important news from China, Taiwan, and the Hong Kong SAR.* Here's the first edition. Enjoy.

Politics

The National People's Congress convened in Beijing over the past week and announced new reforms officially intended to streamline the bureaucracy. A restructuring of the government will create five "super ministries" and an energy commission. Critics argue the reforms don't go far enough.

The U.S. State Department dropped China from its list of top 10 human rights offenders and added Syria, Sudan, and Uzbekistan. Still, the U.S. government is not happy with the state of China's human rights.

The one-child policy will remain in place for at least another decade.

Economy

China will establish its first jumbo aircraft company in Shanghai with the goal of eventually producing the larger aircraft and joining the ranks of the United States, Russia, France, Germany, Britain, and Spain.

Housing prices soared 11.3 percent in January, and the hottest housing market is Urumqi, Xinjiang (a predominantly Muslim province in the west), which saw a 25 percent increase in prices in January compared with last year.

The World Travel and Tourism Council predicts China will overtake Germany and Japan to become the world's number two travel and tourism economy. The United States occupies the top spot.

The consumer price index is up 8.7 percent from last year, the highest jump in 12 years. Prime Minister Wen Jiabao has named inflation and controlling economic growth China's "top fiscal priorities for 2008."

Security

A flight Friday from Xinjiang to Beijing made and emergency landing after two passengers reportedly tried to crash the plane. A Beijing Olympics terror plot was also uncoverend in Xinjiang. In light of the Australian hostages in Xian last week, a Foreign Ministry spokesman assured tourists the Beijing Olympics will be safe.

Taiwan

Presidential candidates Frank Hsieh and Ma Ying-jeou held their final debate on Sunday in preparation for the March 22 elections, which will also include a controversial national referendum on U.N. membership.

The New York Times sees a loss of momentum in Taiwan's independence movement and questions Taiwan President Chen Shui-bian's legacy.

Other stories

Chinese government announces university professors will be evaluated on performance, not seniority.

School children in Anhui province made (and fed) their moms dumplings to show their appreciation for all their mothers' hard work.

And finally, this week's China moment: A Xinyang official had a big night out at the karaoke bar and apparently drank himself to death. Afterwards, he was awarded a "level-three order of merit" from the local government for being an "outstanding communist." The city is in the midst of an anti-corruption campaign designed to cut down on officials' lunchtime drinking. It should be noted that this incident happened at night...

*Note: The name "This Week in China" stems from the fact that most of the content is mainland-related, but is not a political statement on the status of Taiwan.