Wen's vision for China's bright future

From the war on corruption, military spending, global warming to how to further promote socialist democracy, Premier Wen Jiabao paved the way forward for China on Friday.[full text of Wen Jiabao's government work report]

Using part of his nearly two-hour interaction with the press after the end of the annual legislative meeting, the premier had his frank position on the surge in corruption cases in China, blaming the over-concentration of power without effective and proper restraints.

Premier Wen Jiabao gestures during a news conference after the National People's Congress closed its annual session, at the Great Hall of the People in Beijing, March 16, 2007. [Xinhua]

"To address the problem, we must first and foremost focus our efforts in the institutions and systems," Wen said.

The war on corruption will be unrelenting: "No matter in what areas the corruption cases are taking place, who are involved and how high-ranking they are," he said.

He said people were encouraged to "oversee and criticize the government" in building a socialist democracy.

In particular, matters that need the administrative examination and approval must be reduced in number, and they must be done in an "open, just and transparent" manner, he said.

Moving forward, China will focus on political system reform aimed at developing democracy, in addition to advancing economic reform.

"It is particularly important that we need to make justice the most important value of the socialist system," he said.

Wen said the government will strive to give everyone equal opportunity to education, particularly to improve the living standards for economically disadvantaged groups.

"If we improve the living conditions of those in difficulty, we improve the well-being of the whole society," he said

The premier reassured that the country was advancing along a peaceful development path, with a responsible attitude to the world.

"We are most sincere in our commitment to peaceful development," he said when asked to comment on Chinese scientists' recent anti-satellite test.

The test did not target or pose a threat to any other country and has not breached international treaties, he said.

"China always advocates the peaceful utilization of outer space, and opposes an arms race in outer space," he said.

The nation knows fully well the tremendous sufferings of being enslaved and subject to foreign aggression, the premier said.

"We have a defense policy that is defensive in nature. The limited arm forces that China has are completely for safeguarding the country's security, independence and sovereignty. On this matter, we are completely transparent."

Regarding international environmental obligations, the premier said China is in favor of the Kyoto Protocol. And although as a developing country China had no obligatory target to meet the protocol, nonetheless formulated a response plan based on international treaties concerning greenhouse gas emissions.

China raises interest rates to slow inflation

The People's Bank of China, the central bank, raised key interest rates by 0.27% from Sunday, March 18, the third time in 11 months in a bid to curb inflation and asset bubbles in the world's fastest-growing major economy.

Item	Before adjustment (%)	After adjustment (%)
Termed savings
3 months	1.80	1.98
6 month	2.25	2.43
One year	2.52	2.79
Two years	3.06	3.33
Three years	3.69	3.96
Five years	4.14	4.41
Lendings
6 months	5.58	5.67
One year	6.12	6.39
1-3 years	6.30	6.57
3-5 years	6.48	6.75
Over 5 years	6.84	7.11

The one-year benchmark lending rate will be raised to 6.39 percent from 6.12 percent, and the one-year deposit rate will be increased to 2.79 percent from 2.52 percent, according to a Xinhua report.

Central bank Governor Zhou Xiaochuan is concerned that cash from a record trade surplus is stoking excess investment, raising the risk of accelerating inflation and boom-and-bust cycles in asset prices. Zhou has resisted calls from Europe and the US to let the yuan strengthen at a faster pace, making China's exports more expensive.

"The data released in the past week suggests that the economy is not actually slowing and that the government is becoming quite concerned that the economy is disproportionally driven by investment and production," Glenn Maguire, chief Asia economist at Societe Generale SA in Hong Kong, said.

"The central bank will probably raise interest rates again two more times this year," Maguire said.

Fixed-asset investment in urban areas climbed 23.4 percent in the first two months, down from 24.5 percent for all of 2006. China still must act to slow investment, Ma Kai, head of the National Development and Reform Commission, the country's top planning body, said last week.

Trade Surplus

China's economy, the world's fourth largest, expanded at the fastest pace in 11 years in 2006.

The central bank raised interest rates in April and August and last month ordered banks to set aside more money as reserves for the fifth time in eight months to rein in the money supply.

The trade surplus surged nine-fold in February from a year earlier to $23.76 billion, the second highest on record. Money supply grew 17.8 percent, the most in six months. Inflation accelerated to 2.7 percent from 2.2 percent in January.

Record overseas sales pump cash into China's financial system, raising the risk of property and stock bubbles. The trade surplus in 2006 was $177.5 billion. Chinese stocks have touched record highs this year and also had the steepest decline in a decade.

Growth in urban fixed-assed investment declined to 24.5 percent for all of 2006 from 31.3 percent for the first six months. Still, the slowing of loans and spending is "not stable," Ma cautioned in January.

China's economy expanded 10.7 percent last year. Gross domestic product increased 10.4 percent in the fourth quarter, slower than the previous three months and down from the second quarter's decade high of 11.5 percent.

Besides monetary policy, China uses administrative measures to rein in investment. Developers face tighter land-appreciation taxes this year and minimum prices for property to be used for industrial developments. Environmental controls will curb spending on factories, according to the central bank.

Spring makeup, natural color

Gentle and warm breeze awakes everything in spring. The grass is green, flowers are blooming, spring is a fresh and colorful season. Aside of those, another wonderful thing of spring is new makeup from cosmetic companies. In the flourishing season, check out new products to renew your makeup with those spring colors, pink, peach, violet... You'll be excited about the season.

Eye shadows

This spring's makeup features on eyes. Many cosmetic brands promote lovely shadows, from peach to violet, blue to soft green.

Pink

Use light or shimmer color as the base before putting pink. With pink and peach shades, you can go from day to evening looking chic.

Violet

Violet looks matured and charming. It's perfect for all ages and most skin tones..

Pearl gray

The neutral color keeps you looking fresh.

Recommended products

1) M.A.C. Small Eye Shadow

Price: RMB 140
location1: F1, Zhongyou Department Store, No. 176, Xidanbei Dajie, Xicheng District.
Tel: 010-66025380
Location 2: F1, Pacific Department, Store No. 932, Hengshan Road, Shanghai
Tel: 021-64079420

2) Dior 1 Couleur- Powder Mono Eyeshadow

Price: RMB 210
Location1: Beijing Shuangan Dept Store, No. 38, Bei San Huan Xi Road
Tel: 010-62150510
Location2: Shanghai Hongqiao Friendship Dept. Store, No. 6, Zunyi S. Rd., Shanghai
Tel: 021- 62757402

3) Shu uemura Pressed Eye Shadow

Price: RMB 180
Location 1: Pakson, 101, Fuxingmen Street, Beijing
Tel: 010-66039186
Location 2:Pacific Xuhui, 932, Hengshan Rd, Shanghai
Tel: 021-64479006

4) Guerlain : Ombre Eclat 4 Shades

Price: RMB 510
Location 1: SOGO 8 Xuanwumen Wai Street, Xuanwu District, Beijing
Tel: 010-63105302
Location 2: Pacific ZhanQian 218 Tianmu W. Rd., Shanghai
Tel: 021-64078888

5) Bobbi Brown Shimmer Wash Eye Shadow (Lilac)

Price: RMB 200
Location 1: F1,Pakson, 101, Fuxingmen Street, Beijing
Tel: 010-66010316
Location 2: ISETAN, No.1038, Nanjingxilu, Shanghai
021-62184597

Eye liners

Spring is fresh and fancy. Eye makeup in this season emphasizes on the natural and fresh colors. Black is no longer the best choices. Try some bold colors.

Violet purple: This year's stylish color, makes you elegant.

Olive Green: Compared with black, it is much more easily And perfect for everyone.

Blue Horizon: The fresh color is good for your holiday by the sea.

Pearl White: It matches most eye shadows.

Shimmering Eyeliners

Shimmering makeups will be popular this year. Its luminous effect enhance charms of your eyes.

Recommended products

1) MAC Liquid Eyeliner
Price: RMB190

location1: F1, Zhongyou Department Store, No. 176, Xidanbei Dajie, Xicheng District.
Tel: 010-66025380
Location 2: F1, Pacific Department, Store No. 932, Hengshan Road, Shanghai
Tel: 021-64079420

2) Ipsa OPTIMUM BALANCE EYE FRAME PENCIL LINER

Price: RMB 220
Location 1: SOGO 8 Xuanwumen Wai Street, Xuanwu District, Beijing
Tel: 010-66026089
Location 2: Pacific Department Store, No. 932, Hengshan Road, Shanghai
Tel: 021-64477363

Blushers

Pink dose not only confine to the eye makeup. This spring, pink blushers are in vogue, with which, you can change your image freely, sweet princess or sexy lady? It's up to you.

Tips

If you have fair skin, don't hesitate, pick a pink blusher. If you don't have, avoid using light pink, such as soft peach.

Recommend products

1) Bobbi Brown Pot Rouge (Price: RMB250, contacts see above)

2) Shu uemura GLOW ON (Price: RMB200, contacts see above)

3) Lancome MAGIE BLUSH
Price: RMB 280
Location 1: F1, Parkson, No.101, Fuxingmennei Dajie, Xicheng District
Tel: 010-66058310
Location 2: SOGO, No. 1618, Nanjing western Road, Shanghai
Tel: 021-64153957

Palestinians OK key government post

GAZA CITY - Political rivals Hamas and Fatah reached a final agreement on forming a unity government Wednesday, wrapping up months of torturous coalition negotiations aimed at ending bloody internal fighting and lifting international sanctions against the Palestinians.

Prime Minister Ismail Haniyeh of Hamas said he would present the new government to parliament this weekend for final approval.

"Today is an occasion to celebrate. We have done everything," he said after a late-night meeting with President Mahmoud Abbas of Fatah.

Both sides hope the alliance will bring the Palestinians out of international isolation after a yearlong boycott of the Hamas-led government. Israel and Western countries have reacted coolly to the deal, but say they are waiting for final details before deciding whether to lift the embargo.

Haniyeh and Abbas agreed to the power-sharing deal last month in Saudi Arabia, but had spent the past few weeks ironing out the final details. One of the major obstacles was agreeing on a new interior minister, a sensitive post that oversees several powerful security forces.

The new interior minister will be Hani Kawasmi, according to Mustafa Barghouti, the incoming information minister. Kawasmi is currently a senior civil servant in the Interior Ministry who has good relations with both Hamas and Fatah, but does not belong to either party.

Barghouti said other key appointments included Salam Fayyad, an internationally respected economist, as finance minister; and Ziad Abu Amr, an independent lawmaker, as foreign minister.

Haniyeh will remain as prime minister, and Azzam al-Ahmed, head of Fatah's parliament bloc, will be deputy prime minister.

Haniyeh said he would formally announce the Cabinet on Thursday. In all, Hamas will get nine Cabinet posts and Fatah will get six.

Nabil Abu Rdeneh, a top aide to Abbas, urged the international community to give the government a chance, despite misgivings about Hamas. Israel, the U.S, and European Union consider the Islamic militant group, which has killed scored of Israelis in suicide bombings, a terrorist group.

"There will be a new Palestinian government and we call on all parties, including the Arabs, to work and live with this government, and to give it an opportunity," Rdeneh said.

Hamas trounced the more moderate Fatah in parliamentary elections last year, giving it control over most government functions. But the Hamas-led government was crippled by Western sanctions imposed over its refusal to recognize Israel's right to exist.

Abbas, who was elected separately in 2005, has been pushing Hamas since last fall to join Fatah in a more moderate coalition in hopes of lifting the Western boycott. The negotiations collapsed repeatedly, often sparking rounds of deadly factional fighting in Gaza.

As negotiations continued, there was an exchange of fire Wednesday between Hamas and Fatah forces in the northern Gaza Strip. Security officials said nine people, including five bystanders, were slightly wounded in the shootout. More than 130 people have died in the infighting since May.

Fears of further bloodshed led Abbas to agree to the power-sharing deal at talks in Saudi Arabia last month, even though the agreement falls short of the international demands for Hamas to renounce violence, recognize Israel and accept past peace agreements. Abbas has told Western powers that the deal ¡ª which includes a vague pledge to "respect" past agreements with Israel ¡ª is the best he could get from the militant group. The U.S., European Union and Israel have labeled Hamas, which has killed scores of Israelis in suicide attacks, a terrorist group.

The two sides had been eager to complete the coalition talks ahead of an Arab summit later this month in Saudi Arabia. Also, Secretary of State Condoleezza Rice is expected in the region at the end of next week as part of a push to restart peace efforts with Israel.

Israel has maintained its wait-and-see approach to the emerging Palestinian government. Prime Minister Ehud Olmert has warned he will not work with the government if Hamas does not soften its position toward Israel.

"We expect the new Palestinian government to accept all three of the international principles," Israeli government spokeswoman Miri Eisin said.

Israel also expects to see an Israeli soldier captured in June by Hamas-affiliated militants freed before the new government convenes, Eisin said. Egyptian mediators have been trying to negotiate a prisoner exchange.

Hamad said there are "concerted efforts" to win the soldier's release but said a deal wasn't imminent. "I don't think he'll be released before a government is formed, but we hope it will be resolved soon," he said.

What's behind increase in the military budget

At the Fifth Session of the 10th National People's Congress, it was announced that the country's military budget for 2007 is 350.92 billion yuan, or roughly US$44.94 billion. This marks a 17.8 per cent increase over the previous year, or $6.8 billion.

The increase has drawn wide attention from the international community. Many express misgivings out of shear misunderstanding. But some look at the increase through stained lenses or stretch the matter to suit their own ends. Others try to use the growth in China's military spending to create a propaganda splash.

A famous Chinese saying goes: "Seeking truth after facts." There is a similar saying in the West: "Facts speak louder than words." These two sayings apply to evaluating China's military spending increase.

I would like to offer my point of view in the hope of clearing away misunderstanding.

First comes the question: Why the increase by the unprecedented wide margin of 17.8 percent?

The growth is primarily caused by the sharp increase in the wages, living expenses and pensions of 2.3 million People's Liberation Army officers, civilian personnel, soldiers and army retirees. The pay rise came in the latter half of 2006.

Large numbers of officers from battalion level down and non-commissioned officers received the sharpest pay rise 100 percent.

These people constitute the backbone of the military forces, directly involved in leading soldiers in military duties, training programs and logistical activities. On the personal side, they are the primary source of income for their families. Over a long period of time, their wages have remained very modest.

In view of all this, it is imperative to raise their pay by large margins.

The pay of the officers from the regimental level up, civilian personnel and army retirees has also been increased by 80 percent.

At the same time, all rank-and-file soldiers' living allowances and board expenses have also been increased.

The composition of the Chinese military expenditure is roughly the same as that of the United States. Wages, housing and services take up almost one-third of the total spending.

Take 2006. These categories of expenditure stood at $12 billion, within the total $38.1 billion. Of this $12 billion, $8 billion went to wages, living costs and pensions.

With the rise in these budget by an average of 60 percent in 2007, the total increase in these categories reaches $4.8 billion. This accounts for the lion's share in the growth of 2007's total military spending.

Of course, spending on hardware research and development and weapons procurement has also increased. And the money spent on training and exercises and on maintaining military activities has risen, too. But this kind of spending growth pales beside the increase in personnel expenditures.

It is unlikely that military personnel wages will go up by large margins every year. So, the possibility is extremely low that the country's military spending will increase dramatically in the coming years.

There is another question: Does China's military expenditure outstrip its actual needs now that the 2007 Chinese military budget has surpassed Japan's $42 billion and Germany's $37.5? It still trails Britain's $62.38 billion and France's US$50.78 billion. It is a fraction of the United States' $532.8 billion,

China's military spending falls far behind that of many other countries, whether in terms of actual amount, military personnel per capita expenditure, or the general population per capita military spending.

The country's military budget ranks fourth among the world countries and its GDP also stands fourth in the world. Coincidence? Maybe. I think the two No 4 positions are logically connected to each other.

China is a big country. The military is, therefore, obligated with overwhelmingly heavy tasks in defending the country. To compound this, the country is threatened by separatism, terrorism and hegemonism. In view of all this, China's sizable military spending is totally justified.

My latest research shows that a country would find it hard to achieve military modernization when military personnel per capita spending remains below $100,000.

The US military's per capita budget in 2007, for instance, is $383,000, the highest in the world. Next comes Britain ($324,000), followed by Japan ($175,000), Germany ($148,000) and France ($146,000).

In contrast, China's per capita spending on its soldiers is only US$19,540. The country has set a rather moderately paced timetable by today's international standards to modernize its military forces. Extending to 2050, it covers three stages: from 2006 to 2010, from 2010 to 2020, and from 2020 to 2050.

It is predicted that, during these three phases of military modernization, China's military budget will increase moderately each year to keep up with the country's economic development and its defense needs. This is aimed at closing the wide military strength gaps between the country and the world's military powers.

Does China's military expenditure outstrip its actual defense needs? Facts constitute the best gauge.

Western military analysts are very clear that Chinese fleets, air force, ground troops and strategic rocket forces are on a secondary tier with the world's leading military powers in terms of quality and quantity of its core battle equipment.

The basic facts and stark reality determine that it is impossible for China to enter an arms race with the world's military powers. Most important of all, China's State strategy and military strategy are geared to peaceful development and active defense.

The ultimate goal is to build a harmonious society inside the country and a world in harmony outside. So the country needs no military expansion or a strategy designed for military interference overseas. China has no military bases overseas and the country has never launched pre-emptive attacks against others.

By all measures, Chinese military expenditure is still very humble.

The author is a council member of China Arms Control and Disarmament Association