INTERNATIONAL EXPERIENCE

TOCHINA AND SOUTH KOREA

Pre-Trip Reports

February 16-28, 2008

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TABLE OF CONTENTS

Agriculture in China ……………………..………………………………………………. page 1Tim Bartram “Chinese Agriculture Overview” …………………………………………page 2Edmond Bonjour “The Buzz in China” ………………………………………………… page 4Lee Ann Bowman “The Rapid Growth and Sustainability of the Chinese Dairy Industry”………… page 7Brent Conrady “China’s Crops”………………………………………………………. page 9Wendell Custer “Overview of Beef Cattle Breeds in China” ………………………….page 12Keeff Felty “The Progression of Agriculture in China” ……………………………….page 14Brian Jervis “Horticulture in China”…………………………………………………. page 16Joey Meibergen “Grain Production in China” …………………………………………page 18Kevin Propps “Land Ownership and Agricultural Lending in China” ……………….. page 25

China and South Korea Government …………………………………………………. page 27Thad Doye “The Government of South Korea” ……………………………………. page 28Doug Ritter “The Government of the People’s Republic of China” ……………….. page 31Curtis Vap “The Constitution of the People’s Republic of China”…………………... page 34

China and South Korea Culture of the People ………………………………………. page 37Julie Fitzgerald “Chinese and Korean Cultures: A Comparison” ……………………. page 38Summer Kemp “China’s One Child Policy and United States Adoption Rates” ……. page 40Kevin Long “China Freedom of Religion: Fact or Fiction” …………………………. page 43Cody White “China/Korea Culture of the People” …………………………………… page 45

China’s Health and Education Issues …………………………………………….…... page 48Rob Bauter “Education in China” ……………………………………………………. page 49Bill Farris “Traditional Chinese Medicine” ………………………………………….. page 52Jean Williams “Currents Status of Healthcare and Education in China” ……………. page 54

China and South Korea Economics ………………………………………………….. page 57Galynn Beer “The Economics of China” ……………………………………………. page 58JD Elwood “China’s Agricultural Economy and Rural Policy” …………………….. page 61Hope Pjesky “The United States –Korea Free Trade Agreement” ………………….. page 65

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Agriculture in China

Submissions by:

Tim Bartram,Edmond Bonjour,Lee Ann Bowman,

Brent Conrady,Wendell Custer,

Keeff Felty,Brian Jervis,

Joey Meibergen,and Kevin Propps

Chinese Agriculture an OverviewTim Bartram

For my report I interviewed Dr Hailin Zhang. Dr Zhang is Santelmann/Warth Distinguished Professor Nutrient Management Extension Specialist and Soil, Water and Forage Analytical Laboratory Director in the Plant and Soil Science department at OSU. He is a native of China and has a brother who is a farmer in China. Dr. Zhang is from Nanjing (known as Nanking to most Americans) just east of Shanghai on the Yangtze River. This is where his brother still farms.

China has only 7% of the world’s arable land but produces 20% of the world’s staple foods. However the top soil is very deep, Up to hundreds of feet deep in some areas. They use every inch of suitable land for intensive cultivation. In the more mountainous areas terraces are used to farm the side of the mountains. Irrigation has increased from 20 million hectares in 1952 to greater than 51 million hectares in 1997. I saw pictures of rice growing paddies with soybeans growing on the side of the dikes. Dr. Zhang said this is not unusual. In the warmer south farmers produce as many as three crops in one year growing two crops of rice and one crop of winter wheat. Technology and mechanization is being used even thought the size of the farms is very small. His brother has 1/3 of an acre which is divided into three different fields. Through intensive management the yields are very high. There are beginning to be issues with the over use of fertilizer. Dr. Zhang is working with scientists and extension personnel in China to implement soil testing. There is an extension service in China but it isn’t as effective as what we have in the United States. Most Chinese Farmers learn about new practice from the input providers. However there are many good agricultural universities in China. We will visit one in Xian. Dr. Zhang listed the introduction of Short Stemmed Rice in the 1960 followed by Hybrid Rice in the 1970 as important milestone in Chinese agriculture. Their wheat breeding programs are very advanced. Genetic Modified crops are being used in China. He was not sure if there is research being done on GMO Wheat. The official position on GMO’s is neutral in China.

The land use system in China is different than what I expected. From 1950 to 1978 the collective system like what was used in the Soviet Union was used in China. In 1978 it was switched to the Household Contract Responsibility System. In this system parcels of land are assigned to individuals. While still owned by the state, the individual has the right to make his own decisions about what to do about the land. He can decide what crops to plan or what livestock to raise. His brother raises rabbits. However from some sources on the internet there is some issues being raised about the need for a new land revolution in China. Urban sprawl is becoming a big problem. Farmers are using the internet to complain about this issue. And recently have had meetings to promote private ownership of agricultural lands. These meetings have been broken up by the police and the leaders arrested. The leaders were not held long. The hope of the leaders is that these meeting will lead to reform. Similar actions led to the reforms made in 1978. (Washington Post Jan 14.2008) The Communist Party is facing a decision about how they are going to keep people fed without slowing down economic growth through building new industries. Last year the Party enacted legislation to protect the farmers and provide for compensation if their land is taken for development. However, this has not been enforced at the local level. The Communist Party has launched a campaign educate farmer on their land rights and to encourage them to use the legal system to protect those rights. (AP Beijing 1-15-2008). The land use system and the introduction of technology and mechanization have led to a surplus of labor in rural areas. Because of this rural industries have grown dramatically. There are over 30 million industries in rural areas. While food production has rise dramatically as well the increase in industry

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has provided the bigger impact on rural economies. He should me some pictures of how the housing in rural areas has changed. It went from very poor housing to very nice.

We discussed crops grown in the country. The two major rivers in the country divide the growing regions somewhat. From Beijing south to the Yangtze River is the Winter Wheat belt. From Beijing north is Spring wheat country with a climate similar to Minnesota or the Dakota’s. However to the Northwest of Beijing there is a lot of corn and milo raised. The soil is very similar to the “I States” In the past most of the corn and milo was used for human consumption. However, it is now used for animal feed. Many of the rich in China made their money feeding livestock. CAFO’s are an issue for pollution. The primary livestock feed are swine, Poultry, and dairies. This and the economic growth have had a big impact on the diet of the Chinese. Dr. Zhang remembers when the majority of Chinese had meat once a week. Now many eat meat every day. He said that the change is not all positive. More people are overweight and there has been an increase in heart problems in China.

Xian has a climate similar to the High Plains regions of the Oklahoma and Texas Panhandles or Eastern Colorado and Western Kansas. Winter Wheat is grown in this drier climate. Also the University which will visit in the Xian area has a forestry department.

From the Yangtze River south is where more of the rice is grown. Shanghai is at the mouth of the Yangtze.

From China.org

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The “Buzz” in ChinaEdmond Bonjour

Have you ever been walking outside and suddenly hear a buzzing around your head that made you panic? Bees are seemingly small and insignificant creatures that can startle people and cause people anxiety.

However, pollinators such as bees are very critical when it comes to agriculture. It is estimated that over 75% of the crops in the world and over 80% of all flowering plants depend on pollinators, especially bees. On a global basis, the annual contribution of pollinators to agricultural crops is estimated at $54 billion (Kenmore and Krell 1998). Pollination enables plant reproduction and food production for humans and animals, which includes fruits and seeds, as well as improved seed and fruit quality and quantity.

In the Himalayan region of Asia, agriculture is the livelihood of over 80% of the rural population with more than 90% of the farmers in the hill and mountain areas being marginal or small land-holding families that cultivate less than one hectare of land (Partap 1999). To gain some economic advantage, the focus of agriculture is shifting from traditional cereal crops to more diversified high-value cash crops such as apples, almonds, pears, peaches, plums, and cherries, and off-season vegetables, both for local and export markets. Cash crops have increased in the Chinese Himalayas with annual production of apples at 208,220 tonnes (1 tonne = 2204.6 pounds), citrus at 800 tonnes, other fruits at 354,200 tonnes, vegetable crops at 26,300 tonnes, oilseed crops at 1,756,300 tonnes, and other crops such as ginger, pulses, tea, cotton, potato, tomato, etc. at 16,688,200 tonnes annually (Partap 2003). However, many cash crops are self-sterile and require insects for cross-pollination to produce fruit and seeds.

The change from subsistence to cash-crop farming poses new challenges for maintaining productivity. There are indicators that the overall productivity of many mountain crops in the Himalayan region is declining. This reduction is occurring even though there are extensive efforts by extension personnel to support improvements in management practices. Several studies have revealed that pollination plays an important role in mountain crop productivity (Partap and Partap, 2000, 2002).

There has been a world-wide decline in populations of pollinators in recent years. As a result of the economic and population growth and development in China, insect diversity in this country is now faced with habitat degradation, species extinction, and a decline in natural enemies of harmful pests. These problems result from the expansion of agriculture, urbanization, industrialization, pollution, mining, tourism, introduced species, hunting, and the illegal trade in endangered species (You et al. 2005). Other factors may include climate changes, a higher number of monoculture crops in agriculture, and an increase in the use of pesticides and fertilizers. Additionally, the recent phenomenon known as colony collapse disorder of honeybees in the United States has caused a major concern for beehive managers world-wide. The decline in pollinator populations and diversity is a serious threat to agricultural production and has resulted in decreased production. This loss of production has created the need for managed pollination in order to maintain crop yields.

In the Maoxian County in the Hengduan Mountains of Sichuan Province, South China, apple cultivation began in 1935 with large-scale cultivation beginning in the 1980s. There are 2,830 hectares of apples that produce approximately 30,000 tonnes of apples worth $33.9 million US every year (Partap and Partap 2000). Hand pollination of these apples is utilized

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even though beekeeping is popular in the area. Why is hand pollinating utilized? The average farm in this area is very small, about 0.2 hectares. Farmers have only planted the most desired varieties which are not self-pollinating and have planted very few trees as a pollen source because they are less important commercially. With so few trees producing pollen, honeybees can not obtain enough pollen to pollinate the more valuable trees. The farmers want the highest yield possible and believe that only pollination by hand can guarantee that each flower is properly pollinated, especially since there are so few pollinizing trees. Also, it is possible to pollinate by hand even in low temperature and in bad weather conditions when bees and other insects do not fly.

A similar situation occurs in the pear-growing area in the Sichuan Province. Pears are one of the four most important fruits produced in Hanyuan County and pear yield accounts for over 70% of the total fruit yield of the county (Ya et al. 2002). Pear cultivation occurs on 13,330 hectares and 100% of the pears are pollinated by hand.

Pollinating flowers by hand is very common and provides employment and income-generating opportunities for many people during the flowering season. However, this practice is very expensive and time-consuming, and a highly unsustainable option for crop pollination because of increasing scarcity of labor. Approximately 20-25 people are needed to pollinate apples in one orchard in one day which costs a farmer about $70 US (Partap and Partap 2000). On the other hand, only two honeybee colonies are needed to pollinate an orchard which would cost the farmer $14 US, being five times cheaper than the current practice. However, regional beekeepers do not want to rent out their hives, even during the flowering season, because of the risks associated with the excessive use of insecticides. Farmers spray 10-15 times each season and these pesticides kill many bees and other natural insect pollinators, in addition to killing the target pests (Partap and Partap 2000).

In the past, bees in China were mainly kept for honey production. Utilizing bees to pollinate crops is a relatively new concept. The first colonies of honeybees rented for apple pollination occurred in 1996 (Partap 2003). Most research and extension systems in China still emphasize honey production and not the value of using bees for pollination of crops. Promoting the value of honeybees as reliable pollinators of agricultural crops will require special efforts by educational institutions. Many farmers are not aware of the value of honeybees in cash crop production and need to be trained about the pollination behavior of honeybees and how to utilize them effectively.

There is also a need for more honeybee colonies based on the number of hectares of cash crops. Both the native honeybee Apis cerana and the imported European honeybee Apis mellifera are effective pollinators that can be reared in hives but they have different niches. The imported bee performs better when daytime temperatures are relatively high and temperature fluctuations are low, whereas the native bee is cold resistant and can perform well when daytime temperatures are relatively low, on cloudy days, and at higher altitudes with marked temperature fluctuations. In mountainous regions, A. cerana is a more effective pollinator of vegetable and fruit crops during spring and early winter than A. mellifera. If beekeepers introduce imported bees in mountain areas for summer honey production, these bees replace the hardier native species and the overall pollination of early crops is affected.

Other bees native to China can also be utilized for pollination. Releases of two native species along the coast in Shandong Province demonstrated that apple pollination was enhanced resulting in increased fruit diameter, increased number of seeds per fruit, and decreased percentage of asymmetrical fruit (Wei et al. 2002). Both species were better pollinators than A. mellifera in this study and one species was more effective than hand pollination.

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Whether native or imported bees are utilized for pollination of important cash crops in China, it is imperative that the judicious use of pesticides is followed to preserve bee populations. Carefully selecting less toxic pesticides and spraying when plants are not flowering would decrease the killing of bee pollinators. An integrated pest management program – the coordinated use of pest and environmental information along with available pest control methods, including cultural, biological, genetic, and chemical methods, to prevent unacceptable levels of pest damage using the most economical means, and with the least possible hazard to people, property, and the environment – must be utilized.

Bees are an important factor in successful agricultural production. Further education and training of farmers will hopefully allow bees and other pollinators to be effectively utilized for economic benefit to the mountainous regions of China. We must do all we can to conserve our biodiversity and listen for the “buzz” in our world.

References Cited

Kenmore, P. and R. Krell. 1998. Global perspectives on pollination in agriculture and agroecosystem management. International Workshop on the Conservation and Sustainable Use of Pollinators in Agriculture, with Emphasis on Bees. October 7-9, 1998, Sao Paulo, Brazil.

Partap, U. 1999. Sustainable land management in marginal mountain areas of the Himalayan region. Mountain Research and Development 19:251-260.

Partap, U. 2003. Biodiversity and the ecosystem approach in agriculture, forestry, and fisheries. Case Study No. 10. Cash crop farming in the Himalayas: the importance of pollinator management and managed pollination. Proceedings of the Satellite Event on the Occasion of the Ninth Regular Session of the Commission on Genetic Resources for Food and Agriculture – Rome 12-13 October 2002.

Partap, U. and T. Partap. 2000. Pollination of apples in China. Beekeeping and Development 54: 6-7.

Partap, U. and T. Partap. 2002. Warning signals from apple valleys of the HKH region: productivity concerns and pollination problems. Kathmandu: International Centre for Integrated Mountain Development, pp. 106.

Wei, S., W. Ren, M.J. Smirle, and X HuanLi. 2002. Release of Osmia excavata and Osmia jacoti (Hymenoptera: Megachilidae) for apple pollination. Canadian Entomologist 134: 369-380.

Ya, T., S. Jia-sui, and C. Keming. 2002. Hand pollination of pears and its implications for biodiversity conservation and environmental protection – a case study from Hanyuan County, Sichuan Province, China. www.fao.org/ag/AGP/AGPS/C-CAB/Castudies/pdf/6-005.pdf

You, M., D. Xu, H. Cai, and L. Vasseur. 2005. Practical importance for conservation of insect diversity in China. Biodiversity and Conservation 14: 723-737.

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The Rapid Growth and Sustainability of the Chinese Dairy Industry

Lee Ann Bowman

The people of China are discovering dairy. In 1998, the Chinese government started encouraging all school children to drink one glass of milk a day. The country’s recent economic development is driving up consumption of all dairy products, especially in the urban areas. Dairy farming and dairy processing are two of the fastest growing agriculture industries in China. Consumption levels have steadily increased to 21 kilograms per capita, an annual average increase of 14% from just a decade ago. However, China’s dairy consumption is still only one fifth of the international average.

With all of the industry’s growth over the past 20 years, the Chinese are still struggling to keep up with demand. “China’s dairy industry is in transition from traditional to modern technology and techniques,” said Liu Chengguo, secretary of the China Dairy Association. For many years, China’s dairy industry has been a dual-purpose animal, used for meat and a milk supplement for mainly children.

Today, the most common Chinese dairy breed is the Chinese Black and White, a cross breed between a Holstein and a Yellow Cow. The average milk production per Chinese cow is 2000 kg per 305 day-lactation (4,400 pounds). However, Chinese dairy farmers are beginning to realize the value sound genetics have to their herds. Importing cattle, along with embryos and semen are on the rise. Holsteins are the most common dairy breed imported into China, mainly from the United States and New Zealand.

Most Chinese dairy farms are very different than farms in the Untied States. The average farm is less than one acre, and has no more than 4 cows. Traditionally, poor farm management and animal husbandry has kept productivity low on many small farms. Many industry experts call some of China’s dairy farm condition woeful and primitive. Nutrition is very poor; cows are mainly fed straps from the household. Housing for the cows is also less than perfect; cows are often chained posts with little shelter.

However, the rapid growth of the industry has the potential to change many of the current conditions of dairy farms around China. Over the past 20 years, New Hope Dairy Group is helping to provide some of this change. As one of China’s largest privately owned agriculture industries, they are striving not only to bring technology to the dairy industry, but the pork and poultry industries as well.New Hope Dairy Group operates three different sources for raw milk collection. They own large farms with over 1,000 milk cows, they organize collection stations where over 5,000 small farmers bring minimally refrigerated raw milk, and finally they are encouraging farmers to move toward a collective farm.

Many different investors own the collective farms, and technology is a priority of the farm. Cows are milked by machines and pipelines, rather than by hand. For stall ownership farmers pay the investor RMB 1,200 per stall. The farmer still assumes all control of his cows, while continuing to live at home and only travels to the dairy facility when need. Forge to feed his cows is still collected from his farm, however the living conditions for the cattle is much more humane than the small farm. A committee of village members and a village director manages the farm, while individual records are kept. The farmer is paid on

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his cows’ production, and is paid 10 cents more for his milk from a collective farm, unlike many small farmers who are forced to accept the lower prices offered by the closest processing plant. Living conditions for dairy cows, through collective dairy farming are much more humane than smaller.

The Chinese government has encouraged farmers by enhancing productivity and milk quality; they will generate a better income and way of life. The government has estimated farmer incomes to have increased from $300 a year a decade ago to almost $2,000 a year today. However, just like dairy farming in the US, some Chinese dairy farmers still struggle with fluctuating markets and high input costs. In September 2007, subsidies for raw milk production were offered to farmers by testing for high quality bloodline in heifers. Larger operations were also offered subsidies to improve water, electricity, waster treatment, disease control and facilities. Forecasts for 2008 have dairy production still growing, but at a much slower rate.

A single milk cow can cost a farmer several years worth of regular income, only to have cow prices drop to less than half of what they were a year ago. The government and many dairy manufacturers have offered low-interest loans for farmers to increase their herds, but the fluctuating milk price and increasing feed costs have made dairy farming difficult to sustain. Low profits and high beef prices have encouraged some farmers have to slaughter their dairy animals for meat, despite the rapid increasing demand for milk.

A healthy dairy industry in China is good for not only the Chinese, but American dairy farmers as well. The US is currently China’s 3rd largest supplier of non-fat dry milk, and 2nd in whey imports. However, in 2008 the French with less strict standards and smaller price margins will challenge whey imports to China from the US.

Given all the struggles, rises, and falls of the dairy industry, the Chinese are not giving up. The demand for quality dairy products is alive and well. Chinese government officials believe in the positive impacts dairy has on not only the economics of the country, but the health benefits for Chinese people as well.

References

Barboza, David. “The Wisconsin of China: Got Milk, but Hold the Cheese” The New York Times (April 8, 2003)

Westman, William. “Peoples Republic of China, Dairy and Products Annual Report 2007”. Global Agriculture Information Network, USDA Foreign Agricultural Service CH7080 (October 12, 2007)

Barrett, Rick. “Dairy Industry in China is Transforming”RedOrbit News (October 6, 2006)

Wood, Laura. “The Chinese Dairy Market And It’s Growth Potential”M2 Communications (May 31, 2007)

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China’s CropsBrent Conrady

In the mid-1980s China's farmers annually planted crops on about 145 million hectares of land. Eighty percent of the land was sown with grain, 5 percent with oilseed crops, 5 percent with fruits, 3 percent with vegetables, 2 percent with fiber crops, and 0.5 percent with sugar crops and tobacco. Other crops made up the remaining 4 percent. In the 1960s and 1970s, when policies emphasized grain output, the area sown with grain exceeded 85 percent. After the reforms were launched in the early 1980s, the area sown with grain fell below 80 percent and the area sown with other crops expanded correspondingly.

Grain is China's most important agricultural product. It is the source of most of the calories and protein in the average diet and accounts for a sizable proportion of the value of agricultural production. China's statisticians define grain to include wheat, rice, corn, sorghum, millet, potatoes (at one-fifth their fresh weight), soybeans, barley, oats, buckwheat, field peas, and beans. Grain output paralleled the increase in population from 1949 through 1975 but rose rapidly in the decade between 1975 and 1985.

In 1987 China was the world's largest producer of rice, and the crop made up a little less than half of the country's total grain output. In a given year total rice output came from four different crops. The early rice crop grows primarily in provinces along the Chang Jiang and in provinces in the south; it is planted in February to April and harvested in June and July and contributes about 34 percent to total rice output. Intermediate and single-crop late rice grows in the southwest and along the Chang Jiang; it is planted in March to June and harvested in October and November and also contributed about 34 percent to total rice output in the 1980s. Double-crop late rice, planted after the early crop is reaped, is harvested in October to November and adds about 25 percent to total rice production. Rice grown in the north is planted from April to June and harvested from September to October; it contributes about 7 percent to total production.

All rice cultivation is highly labor intensive. Rice is generally grown as a wetland crop in fields flooded to supply water during the growing season. Transplanting seedlings requires many hours of labor, as does harvesting. Mechanization of rice cultivation is only minimally advanced. Rice cultivation also demands more of other inputs, such as fertilizer, than most other crops.

Rice is highly prized by consumers as a food grain, especially in south China, and per capita consumption has risen through the years. Also, as incomes have risen, consumers have preferred to eat more rice and less potatoes, corn, sorghum, and millet. Large production increases in the early 1980s and poor local transportation systems combined to induce farmers to feed large quantities of lower quality rice to livestock.

In 1987 China ranked third in the world as a producer of wheat. Winter wheat, which in the same year accounted for about 88 percent of total national output, is grown primarily in the Chang Jiang Valley and on the North China Plain. The crop is sown each fall from September through November and is harvested in May and June the subsequent year. Spring wheat is planted each spring in the north and northeast and is harvested in late summer. Spring wheat contributes about 12 percent of total wheat output.

Wheat is the staple food grain in north China and is eaten in the form of steamed bread and noodles. Per capita consumption has risen, and the demand for wheat flour has increased as incomes have risen. Wheat has been by far the most important imported grain.

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Corn is grown in most parts of the country but is most common in areas that also produce wheat. Corn production has increased substantially over time and in some years has been second only to production of rice. Consumers have traditionally considered corn less desirable for human use than rice or wheat. Nevertheless, it frequently yields more per unit of land than other varieties of grain, making it useful for maintaining subsistence. As incomes rose in the early 1980s, consumer demand for corn as a food grain decreased, and increasing quantities of corn were allocated for animal feed.

Millet and sorghum are raised in the northern provinces, primarily in areas affected by drought. Millet is used primarily as a food grain. Sorghum is not a preferred food grain and in the 1980s was used for livestock feed and maotai, a potent alcoholic beverage.

Both Irish and sweet potatoes are grown in China. In the 1980s about 20 percent of output came from Irish potatoes grown mostly in the northern part of the country. The remaining 80 percent of output came primarily from sweet potatoes grown in central and south China (cassava output was also included in total potato production). Potatoes are generally considered to be a somewhat lower-quality food grain. Per capita consumption has declined through time. Potatoes are also used in the production of vodka and as a livestock feed.

Other grains, such as field peas, beans, and pulses, are grown throughout China. These grains are good sources of plant protein and add variety to the diet. Barley is a major grain produced in the lower Chang Jiang Basin. It is used for direct human consumption, livestock feed, and increasingly is in great demand as a feedstock to produce beer. Soybeans, a leguminous crop, are also included in China's grain statistics. The northeast has traditionally been the most important producing area, but substantial amounts of soybeans are also produced on the North China Plain. Production of soybeans declined after the Great Leap Forward, and output did not regain the 10-million-ton level of the late 1950s until 1985. Population growth has greatly outstripped soybean output, and per capita consumption has fallen. Soybeans are a useful source of protein and fat, an important consideration given the limited amount of meat available and the grain- and vegetable-based diet. Oilseed cakes, by-products of soybean oil extraction, are used as animal feed and fertilizer.

Cotton is China's most important fiber crop. The crop is grown on the North China Plain and in the middle and lower reaches of the Chang Jiang Valley. In the 1970s domestic output did not meet demand, and significant quantities of raw cotton were imported. Production expanded dramatically in the early 1980s to reach a record 6 million tons in 1984. Although production declined to 4.2 million tons in 1985, China was still by far the largest cotton producer in the world. In the 1980s raw cotton imports ceased, and China became a major exporter of cotton. Significant quantities of jute and hemp are also produced in China. Production of these crops expanded from 257,000 tons in 1955 to 3.4 million tons in 1985. Major producing provinces include Heilongjiang and Henan and also provinces along the Chang Jiang.

China is an important producer of oilseeds, including peanuts, rapeseed, sesame seed, sunflower seed, and safflower seed. Oilseed output in 1955 was 4.8 million tons. Output, however, did not expand between 1955 and 1975, which meant per capita oilseed availability decreased substantially because of population growth. Production from 1975 to 1985 more than tripled, to 15.5 million tons, but China continues to have one of the world's lowest levels of per capita consumption of oilseeds.

Sugarcane accounted for about 83 percent of total output of sugar crops in 1985. Major producing provinces include Guangdong, Fujian, and Yunnan provinces and Guangxi-Zhuang Autonomous Region. Production has grown steadily through the years from about 8 million tons in 1955 to over 51 million tons in 1985.

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Sugar beet production accounted for the remaining 17 percent of total output in 1985. Major producing provinces and autonomous regions include Heilongjiang, Jilin, Nei Monggol, and Xinjiang. Sugar beet production rose from 1.6 million tons in 1955 to 8.9 million tons in 1985. Despite these impressive increases in output, per capita consumption was still very low, and large quantities were imported. China is the world's largest producer of leaf tobacco. Farmers produce many kinds of tobacco, but flue-cured varieties often make up more than 80 percent of total output. Major producing areas include Henan, Shandong, Sichuan, Guizhou, and Yunnan provinces. Tea and silk, produced mainly in the south, have traditionally been important commercial crops. The domestic market for these products has been substantial, and they continue to be important exports.

Given China's different agricultural climatic regions, many varieties of vegetables are grown. Farmers raise vegetables in private plots for their own consumption. Near towns and cities, farmers grow vegetables for sale to meet the demand of urban consumers. Vegetables are an important source of vitamins and minerals in the diet.

Temperate, subtropical, and tropical fruits are cultivated in China. Output expanded from 2.6 million tons in 1955 to more than 11 million tons in 1985. Reforms in the early 1980s encouraged farmers to plant orchards, and the output of apples, pears, bananas, and citrus fruit was expected to expand in the late 1980s.

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OVERVIEW OF BEEF CATTLE BREEDS IN CHINAWENDELL J. CUSTER

 Before one can look at beef breeds in a foreign country, it would be beneficial to talk about what constitute a breed. A simple and useful definition is as follows:Animals that, through selection and breeding, have come to resemble one another and pass those traits uniformly to their offspring. (1) However, this definition does not address certain questions such as, when does crossbreeding produce a composite breed? Perhaps a more in depth definition will explain why a true definition is hard to “nail down”:A breed is a group of domestic animals, termed such by common consent of the breeders, a term which arose among breeders of livestock, created one might say, for their own use, and no one is warranted in assigning to this word a scientific definition and in calling the breeders wrong when they deviate from the formulated definition. It is their word and the breeders common usage is what we must accept as the correct definition. (2) Now that we have established what a breed is we can give an overview of some of the main breeds of beef cattle in China.

China has three distinct grazing regions and different breeds adapt better to the various regions. The three main regions are: northern, central plains and southern.

Most beef cattle in China belong to one of the breeds commonly referred to as “yellow cattle”.All yellow cattle breeds exhibit body conformation traits typical of draught animals. Northern yellow cattle breeds tend to be of medium size and build; the central plains breeds are usually larger and heavier; and the southern breeds are typically small bodied and lighter. (3)

To date, 28 Chinese native cattle breeds and many local cattle populations have been divided into three groups: northern, central plains and southern as stated above. (4) The population structure of Chinese cattle breeds is complicated. The northern region cattle mainly originated from Bos taurus. In the central China cattle group the common viewpoint is that the cattle originated from a hybrid of Bos taurus and Bos indicus. Also the southern cattle breeds originated from Bos taurus and Bos indicus.

The distribution patterns of Bos tarurus and Bos indicus types in Chinese cattle are closely related to the breeds climate and geographical backgrounds. First cattle in the northern China which has a cold climate belong to the Bos taurus type. Secondly, the cattle i9n the central plains of China, which has a warm climate, belong to the mixture of Bos taurus and Bos indicus types. Cattle in southern China, whi9ch has a hot climate, belong to the Bos indicus type. (4)

The main five beef breeds in China cattle that are most used for beef production are: Qinchuan, Dulong, Luxi, Jimman and Yanbian.

The Qinchuan, Dulong and Yanbian breeds will be briefly dicussed:Yanbian- Yanbian yellow cattle, with a big body conformation, are produced on the Jilin Plain. Their appearance is similar to the central plains yellow cattle and farmers rear them for

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draught purposed. They are found mainly in the northern region and are a source for farm power for the rice producing areas. Mature cows have a wither height of 122cm and a body weight of 365kg.

Qinchuan- Qinchuan cattle are purplish red or red coat, yellowish pink eyes and muzzle, short full horns, a higher wider hump for bulls, a short, thick neck and well developed dewlap. They are used for draught and meat production. Mature cows have a wither height of 130cm and a body weight of 450kg. The meat production is good in the breed at moderate nutrient levels fed to 18 to 24 months of age. The dressing percentage is 58 to 61. This puts the breed on par with other meat breeds of the world and has a distinct marble texture that is well received by the consumer.

Dulong- Dulong cattle are found in the northwest of Yunnan Province. They feed on bamboo, reed           weeds, etc. and graze on the mountains all year round. Dulong have a larger body size than the local yellow cattle, with the male weighing from 400-600kg and the females 350-450kg. They have a black or brown hair coat, white feet and short horns stretching laterally. They are a very rough breed and are used mainly for draught. (1)

Through cross-breeding programs with imported breeding stock, China ahs developed several new strains of cattle, including four breeds now officially recognized as “improved” breeds. These include three dual-purpose breeds: Shanke, Xinjiang Brown and Caoyuan Red. The Shanke breed was developed from crossing native yellow cattle with Simmentals in Inner Mongolia. The Xinjiang Brown breed was crossed with Brown Swiss and bred in Northern Xinjiang Province. The Caoyuan Red was bred in Inner Mongolia using the western breed Jilin. (3)

The most popular foreign breeds imported for cross breeding have been Simmental, Shorthorn, Hereford, Limousin and Charolais. Overall, the most popular exotic breed is Simmental, considered a dual-purpose cattle breed in China where it is appreciated for its ability to perform under poorer quality feeding conditions. Why is it important to learn something about the different breeds and regions of beef cattle in China? One possible reason is that since the 1980’s reforms the middle class of the Chinese population has grown and they have disposable income to purchase more beef protein for their diets.Beef consumption in 2008 in China will move in the same direction as cattle slaughter and beef production, because 99% of China’s total beef is consumed domestically. China’s 2008 beef production is forecast to grow to 8.1 MMT from 7.9 MMT in 2007. Beef is not traditionally China’s largest source of protein. Accounting for only 10% of China’s total meat production, the share of production has increased only two percent over the last decade.

The above would suggest a growing market that could develop into a growing market for United States genetics. This being another reason to take an over view of the domestic breeds and how they could be improved with better genetics to meet the growing domestic demand.

SOURCES (1)     Oklahoma State University- Animal Science Web Site- Breeds of       Livestock.(2)     “The Genetics of Populations”’ – Jay L. Lush(3)     Kansas- Asia Community Connection – Web Site(4)     Origin and Phylogeographical structure of Chinese Cattle

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C.Z. Lei, H. Chen, H.C. Zhang, X. Cai, R.Y. Liu, L.Y. Luo, C.F. Wang, W. Zhang,Q.L. Ge, R.F. Zhang, X.Y. Lan and W. B.Sun(5)     Cattle Network- Connecting The beef Industry Worldwide- Web            Site                                                 

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The Progression of Agriculture in ChinaKeeff Felty

China is one of the world’s most ancient civilizations with a recorded history of almost four thousand years. Throughout this vast expanse of time China has undergone many dramatic changes and made numerous contributions to our modern times. Agriculture is one area in particular where China has provided the beginning foundations for the development of current practices in place throughout the world.

Between five to six thousand years ago people in the Yellow River valley had started farming and raising livestock. This is the beginning of the earliest economic activity in the world. From these beginnings came other developments that contributed to the advancement of agriculture and the Chinese society. A few of these developments include: how to smelt bronze, the techniques of pottery making and silk production. The Warring States Period from (475-221 B.C.) saw the construction of the Dujiang Dam. This dam was a major achievement in the conservation of water and made possible a controlled and dependable form of irrigation for the increase of crop production as well as supplying drinking water for both human and livestock consumption. Another added benefit was erosion control and land preservation. Many of the accomplishments of ancient China can be attributed to its strong agricultural base and continued development of crop and livestock production techniques.

The agriculture in modern day China is greatly influenced by the political process. In the late 1940’s china’s agriculture was considered weak and fragile. To correct this condition the Chinese government starting in 1950 implemented land reforms in the rural areas of China. These reforms consisted of giving peasant farmers land of their own in order to promote increased production. During the first five years of the program (1953-1957) agricultural gross output increased an average of 4.5 percent per year. Following this successful period China practiced a centralized people’s commune system (1958-1978). During this time agriculture and production suffered due to inefficiency and a lack of motivation among the rural communities to be productive. Agricultural production was reduced by fifty percent compared to the previous period of 1953-1957. Starting in 1978 China changed from the commune system to what is called the contract responsibility system. This system links a farmer’s compensation to his production. This system was further refined in 1985 by implementing a purchase contract between the farmers and the state instead of the state run monopoly. Under this system the farmer now contracts with the town or village to produce a certain amount of a crop for a set price and after this obligation is met the farmer is allowed to produce and sell anything else on the open market. The contract responsibility system has moved the rural agricultural sector in China to all time record highs in production of agricultural products; and has lead to the growth and development of other related business like: trucking and technical agricultural services. Due to the success of the contract responsibility system China has been able to solve the problem of food shortages in the peasant communities. A problem that had existed for hundreds of years. The table below shows the increased production of the major agricultural products.

Variety 1949 1978 1999

Grain 11,318 30,477 50,839Cotton 44.4 216.7 383.1Oil-bearing crops 256.4 521.8 2,601.20

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Sugarcane 264.2 2,111.60 7,470Sugarbeet 19.1 270.2 864Flue-cured tobacco 4.3 105.2 218.5Tea 4.1 26.8 67.6Fruit 120 657 6237.6Meat 220 856.3 5,960.90Aquatic products 45 466 4,122

(10,000 tons)

Livestock production has also developed significantly in China since 1978. The production of milk, eggs, leather products and meat has more than doubled during this time and this has allowed China to export these products in relatively large quantities. China’s livestock industry has an abundant source of over 300 million ha of useable grassland in which to feed over 400 different types of domestic animals. These include: pigs, cattle, sheep, horses, donkeys, mules, camels, chickens, ducks, geese and rabbits.

China grows a large number of cultivated crops throughout the country. The main food crops are rice, wheat, corn, soybeans and sweet potatoes. The production of paddy rice is China’s largest grain crop which accounts for approximately forty percent of its total grain production. Corn is China’s second largest grain crop accounting for twenty-five percent of total grain production; followed closely by wheat which is at twenty percent. China has a large number of what are considered cash crops. These included: cotton, peanuts, rape, sesame, sugarcane, tea, tobacco, mulberry, fruit and beets.

Cotton is an important cash crop in China, which is evidenced in that China is the world’s largest producer of cotton. China has grown cotton for over two thousand years with little change in its production practices. Out of thirty-one provinces in mainland China twenty-four produce cotton with approximately three hundred million people actively involved in cotton production. As recent as the early 1990’s the average size cotton farm in China consisted of slightly over an acre of land for every three farm workers. These farms are operated very intensely by hand, and with the limited use of small tractors for tillage work. The crop is hand picked several times until there is no lint left on the plants. During a rainy harvest the entire plant is removed from the field to be harvested inside and then the stalks can also be used for fire wood. Cotton is a commodity that is still strictly controlled by the State.

China is an interesting country that has provided a great deal to the world of agricultural production. It is interesting to see and learn how agriculture evolved in a country with such a diverse and varied past. The future will certainly be interesting as China continues to develop and become a more modern type society.

Works sited:

China in Brief – China.org.cnCountrystudies.us/china/94.htm Source: U.S. Library of CongressChina – cotton production – U.S. Department of Agriculture, Economic Research Service report; World Cotton Situation, Oct, 1991

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Horticulture in ChinaBrian Jervis

All aspects of horticulture can be found in China: fruit growing, flower culture, vegetable production under glass and plastic greenhouse and in the open field. Major fruits produced in China include apples, citrus, pears, melon, grapes, bananas, pineapple, lychee, and longan. Major vegetables include Chinese and European cabbage, tomatoes, Chinese radishes, beans, capsicum, mushrooms, asparagus, potatoes, and onions. China also grows a number of unique flowers and plants for use as cut flowers, pot plants, and landscaping. Almost 18% of sown land in China is dedicated to horticulture. (House)

Fruit is grown up the hills and vegetable growing is practiced in all regions. Most stone fruits such as nectarines, peaches and plums that we grown in the United States are native to China. The apricot tree is a native fruit species in China and thus has a wide distribution and great diversity with the species. However it is only in the past two decades that commercial apricot production within China has increased significantly. The trend towards increased apricot production is continuing as growers move away from the more traditional crops of apples and citrus and diversify into apricot and other native Chinese crops. (Liu)

Many horticultural products such as fruits and export vegetables are high value and as a result, many Chinese farmers are diversifying from the production of traditional crops such as staple grains (e.g. rice, wheat and corn) to horticultural products.

Most farms in China are small and produce for domestic (Chinese) consumption. Horticulture products produced for consumption in China do not meet U.S. import requirements. (House)

Agriculture has always been emphasized because of the need to feed such a great population with such a small amount of space. Even though horticultural crops can also be regarded as food crops in many countries and circumstances, horticulture also provides different, interesting, and refreshing aspects in human life and environment. Growing horticultural crops should be distinguished from securing the food crops because many horticultural crops are being evaluated in terms of their quality rather than the quantity as in many major field crops. Janick (1994) describes, "Horticulture can be defined as the branch of agriculture concerned with intensively cultivated plants directly used by people for food, for medicinal purposes, or for esthetic gratification". It should be pointed out that the term 'horticulture' is being called as 'Gardening Art' (rather than cultivation of garden in Greek) here in the Orient or in East Asia from ancient times.

The overview of the climate is; in winter the prevailing north wind is from inland Asia and the south wind in summer is from the Pacific Ocean. The average temperature in winter is 10 °C and 22 °C in summer. The yearly average precipitation ranges from 20 to 6558 mm. The climate in China is diversified: tropical, subtropical and temperate. This is well suited to horticulture all the year round. China has a varied topography. The geographic distribution goes from high elevation in the western mountainous areas to the low elevation of the eastern coastal plain areas. The soil type is divided into red and yellow soil in the south, black soil in the northeast and desert in the west.

Horticulture Economy

China’s horticultural economy (vegetables; tea, coffee, and spices; fruit; tree nuts; melons; and flowers), is an economy in which China may have comparative advantages with its

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varied agro-climatic regions, its limited arable land, and its abundance of labor. China’s horticultural economy generated net exports of $2.7 billion in 1994, and in 1995 net horticultural exports reached $3.3 billion. Chinese consumer demand for horticultural products is the world’s largest and continues to drive its large horticultural economy. Thousands of farmers throughout China are expanding production to meet increased demand from Chinese consumers. In the past three years the demand for U.S. horticultural products has also shown significant growth, with citrus, grapes, apples, and tree nuts accounting for the bulk of U.S. horticultural exports to China. Real GDP continues to grow at a significant and sustained rate, translating into increased disposable income and greater demand for higher quality horticultural products. This trend bodes well for U.S. exporters because U.S. agricultural products are widely recognized in China for their quality. The market for horticultural products should continue to grow, and evolve into a substantial market for a number of U.S. horticultural products.

References:

Presentation by Maurice House, Minister CounselorHorticulture in China: The Big PictureU.S. Department of AgricultureOutlook Conference, Feb. 17, 2006

GAIN Report Number: CH6417H17USDA Foreign Agricultural Service China, Peoples Republic ofMarket Development ReportsHorticultural Product Market2006

Mr Weisheng LiuSouth Australian Research and Development Institute 2001 Liaoning Institute of Pomology, Xiongyue, Gaizhou, Liaoning, 115214, China

Crook, Frederick W. “Vegetable Production and Trade in China,” China: Agriculture and Trade Report,Situation and Outlook Series, U.S. Department

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Grain Production in ChinaJoey Meibergen

Corn ProductionCorn production for MY06/07 is estimated at 142 MMT, up 5 percent from previous year. Favorable weather and increased acreage contributed to the high yield. Corn acreage in MY06/07 is estimated at 27 million Ha. Corn production in MY07/08 is forecast at 143 MMT, 1 MMT higher than the previous year. Yields are forecast to be higher than average but lower than the previous year. Corn area for MY07/08 is forecast to up slightly over the previous year as farmers shift to corn in response to higher corn prices. According to the USDA post analysis concludes that MY05/06 crop was down slightly from the previous year and has adjusted post's previous estimate up 1 MMT to 135 MMT. The USDA does not accept Chinese official reporting of 139.3 MMT. According to the official report, this record production increase was the result of a 2.5 percent increase in yield, favorable weather conditions and increased acreage. Based on intelligence, conclusions were made that actual production was down from the previous year and the increased production number reflects an adjustment based on reporting of previously unreported acreage (black land). USDA/Foreign Agricultural Service: Peoples Republic of China Grain and Feed Annual 2007

Corn ConsumptionCorn is used in China as feed, for industrial production of sugar, starch and biofuel, and for food, accounting for 72, 20, and less than one percent of domestic use, respectively. The rest is seed and losses. Historically, exports have provided a relief valve for excess production. USDA/Foreign Agricultural Service: Peoples Republic of China Grain and Feed Annual 2007

Corn TradeImports of corn are estimated at 100,000 metric tons (MT) in MY06/07. The USDA forecasts 800,000 MT of imports driven by increased feed consumption from the meat and poultry sectors and increased demand from industrial sectors. Corn exports during October-December 2006 were 800,000 MT. Corn exports for MY06/07 are estimated at 4 MMT. Corn exports for MY07/08 are forecast at 1 MMT. USDA/Foreign Agricultural Service: Peoples Republic of China Grain and Feed Annual 2007

Soybean ProductionChina is the world’s 4th largest soybean producer, accounting for just over 8 percent of global supplies in 2005. The U.S., Brazil and Argentina hold firm the first three places at 40, 24 and 18 percent, respectively. Today, the U.S. plants 1/3 of the world’s harvested soybean area while China is just over 10 percent. Globally, soybeans amount to approximately 57 percent of oilseed production, of which nearly 2/3 are processed into soy meal and used as a protein source in animal feeds and 15 percent into soy oil (byproduct) for higher value uses such as leicithin1 and biodiesel. Soybeans have very high protein content and almost 80 percent of the bean can be processed into meal, nearly half of which is protein; correspondingly, the oil content is relatively low at around 18 percent. Rabobank China in the Global Market for Soy and Wheat

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In 2004, soybeans were planted on 8.3 percent of China’s total crop area, or some 9.6 mln hectares. In the past decade, China’s soybean acreage as well as production has remained fairly flat at CAGRs of less than 1 percent (see Figures 2 and 4 below). By 2015, production is expected to grow only modestly at around 4 percent to reach 17.7 mln MT2, with imports continuing to meet the majority of domestic demand. Rabobank China in the Global Market for Soy and Wheat

Most provinces in China have soybean plantations, though production is mainly concentrated in the northern part of the country, led by heavyweight Heilongjiang (37%) and Jilin, Anhui, Henan, Inner Mongolia and Shandong provinces which together make up around 2/3 of total output. For marketing year 2006/07, soybean production is forecast to reach 16.146 mln MT, 5 percent below estimates for the 05/06 crop. Lower than expected post harvest soybean prices combined with limited upside from the agriculture tax elimination, insufficient seed and machinery subsidies (amounting to USD 20~25 per hectare) and the increased costs of crop inputs namely fertilizers and chemicals are primarily responsible for this anticipated decline, led by farmers in the major producing provinces in the north. In place of soybeans, these farmers may choose to plant relatively more profitable crops such as cotton and grain. Significant and sustained shifts in the production of soybeans is not expected however as a healthy crush demand persists and costs, both financial and practical, are involved. However, on 6 July the China National Grain and Oils Information Center said corn acreages climbed 2.1 percent due to a shift from soybeans in the major corn growing northeastern provinces. Rabobank China in the Global Market for Soy and Wheat

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Soybean ConsumptionDemand for soybeans can be separated into four basic forms: feed use, food use, crushing and stocks (for purposes of both storage and seed for the next crop year). Recently, a new and potentially significant market for soybeans, specifically its oil, has begun to sprout in many parts of the world including China, biodiesel.3 Today, this developing demand segment accounts for a relatively small portion of soybean consumption in China and the same is true even in more mature biodiesel markets such as Europe where rapeseed and palm oil are the major inputs. However, with increasing political will emphasizing renewable energy backed by available technology and capital, biodiesel will enter the demand equation as a major consumer of soybean oil, likely driving up crushing margins. Rabobank China in the Global Market for Soy and Wheat

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Soybean TradeChina is the world’s largest importer and second largest consumer of soybeans. In 2005, China accounted for 63 percent (USD 7.8 bln) of the global import value of soybeans and 3 percent (USD 170 mln) of export value. Unsurprisingly, the U.S. dominates the world soybean export market at 95 percent of last year’s total traded value. About one-third of the U.S. soybean crop is exported to China and Europe for cheaper and more efficient crushing. Significant downsizing of the U.S. crushing capacity has resulted. Soy oil and meal exports amount to around 16 and 7 percent, respectively, of the U.S. crop. Brazil exports nearly half its soybeans and soy oil and 60 percent of its soy meal. Argentina on the other hand has achieved economies of scale in soy processing and the result is clear in the numbers with exports over 95 percent for soy oil and meal. China’s soybean import partners are large and few with the U.S., Brazil and Argentina together accounting for 99 percent of the total value and volume in 2005. Imports make up nearly 62 percent of domestic supply (production + imports + beginning stocks – exports) and 80 percent of domestic crush. China’s soybean trade deficit widened to USD 6.4 bln in 2005. Rabobank China in the Global Market for Soy and Wheat

Wheat Production

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China is the world’s largest supplier of wheat accounting for 15 percent (96 mln MT) of the total in 2005. Followed by India, the U.S., Russia and France, these top five wheat producers account for half of global stocks. China’s wheat crop in 2005/06 is estimated to be 97 mln MT, up 5 percent y-o-y, planted on 22.8 mln hectares, up 6 percent y-o-y. Production in 2006/07 is forecast to increase slightly to 97.5 mln MT though industry sources expect closer to 100 mln MT. Forecasted planting acreage of 22.9 mln hectares in 2006/07 is behind this anticipated production increase. Despite lower wheat prices in production regions in recent years (down 5 percent by 2005), wheat’s reliability as a lower risk, stable income crop as compared to vegetables, rapeseed and cotton, has contributed to increased planting. The major wheat production provinces are Henan, Shandong, Hebei, Anhui and Jiangsu. The total production of these five provinces accounts for approximately 72 percent of China’s wheat production and 60 percent of the planted area. Domestic wheat production makes up about 70 percent of total supply in China. Self sufficiency measures managed by the government are expected to maintain this adequacy ratio at around 70 percent going forward. Production and wheat storage are the two main ways in which grain self sufficiency is kept in check which is expected to continue as more of the same. In fact, the government classifies data on all grain stocks as a national secret. However, the USDA estimates that stocks at the beginning of 2005/06 and 2006/07 to be 39 and 37 mln MT. Rabobank China in the Global Market for Soy and Wheat

Wheat ConsumptionWith the open-door policy introduced by Mr. Deng Xiaoping in 1978, substantial reforms have taken place to liberalise China’s grain6 system. However, as the Chinese government’s definition of food security encompasses grain security, government intervention in the whole grain system, including grain production, distribution and trade, has remained significant. Rabobank China in the Global Market for Soy and Wheat

Food use accounts for 70 percent of wheat demand in China. With consumers in China demanding greater convenience and quality in their foods, millers use higher-quality imported wheat mixed with varied quality stocks from the local market, to meet quality and consistency specs being demand by the food industry. Some steps have been taken to cut the production of low-quality wheat, mostly spring wheat, and encourage high-quality wheat. Rabobank China in the Global Market for Soy and Wheat

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As would be expected, rice is the major cereal grain consumed in both urban and rural households in China. Wheat makes up a mere 1/3 of per capita consumption. As consumer incomes rise and eating habits shift to a more protein/meat-based diet, consumption of grains in general and wheat in particular have been declining gradually. The National Statistical Bureau reports that per capita grain consumption has dropped from 250 kg to 218 kg in the past four years in rural households and from 82 kg to 78.2 kg in urban households. This decline is expected to continue though at a gradual pace. Rabobank China in the Global Market for Soy and Wheat

Wheat TradeChina is the world’s 3rd largest importer and 12th largest exporter of wheat, accounting for 11 and 0.3 percent of trade in value in 2005, respectively. Global wheat exports are dominated by the U.S., Australia, Canada, France and Argentina which together make up for 70 percent of total export value. Rabobank China in the Global Market for Soy and Wheat

Nearly half of China’s wheat imports by value origin from Canada. Australia, France and the U.S. account for most all the remaining portion. China is not a significant wheat exporter. In 2005, exports amounted to only USD 36 mln and primarily to neighboring Asian countries led by the Philippines at nearly 2/3 of the total. Wheat exports for 2006/07 are forecasted at 800,000 MT. Rabobank China in the Global Market for Soy and Wheat

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Amidst rising demand for higher-quality imported wheat, China is poised to increasingly become a bigger player in the import market. China’s net import of wheat is projected to increase substantially in the coming years and then hold steady at around 2.5 mln MT. Rabobank China in the Global Market for Soy and Wheat

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LAND OWNERSHIP AND AGRICULTURAL LENDING IN CHINAKEVIN PROPPS

China’s land –ownership is called a collective land ownership. This type of land ownership is one of the core principals of the Communist Party rule. Farmland is owned collectively by villages and distributed on an equal basis among village members. It cannot be bought or sold, although some villages allow the renting of land to other farmers. In reality, the land generally winds up in the hands of a few representatives who can easily expropriate it for lucrative private development. (1) This has become such a practice that this will endanger the country’s food supply and lead to social unrest.(1) China faces the need to modernize its agriculture to become more efficient in producing food for its people.

Currently, some areas of China are trying to push for private ownership of land. Most analysts think that this push will be for naught. A senior party official announced the week of January 3, 2008 that Beijing will continue to support collective land ownership and will oppose any form of privatization of rural land.(1)

The majority of the farms are small averaging two acres of cropland that is split into several plots. The two acres of farmland averages 3 workers per acre. Only 10% of China’s land is considered crop able. Nearly half of the China population is employed in agriculture. China is the largest cereal grains producer in the world. In 2003, China produced 18% of the world’s grain production. (2) This is very impressive due to only 10% of the land being able to be cultivated.

Lending to farmers in China is hampered by the collective land ownership system. The lack of land ownership leaves the farmer with little collateral to secure long-term loans. The absence of land markets prevents most farmers from consolidating land into large operations that can achieve economies of scales. (3) The lack of land ownership tends to lead to very low levels of capital investments. The value of fixed assets per farm in China averages about $500. (3) Capital items consist mainly of small items such as chemical sprayers, small tractors, and tools. The large capital items are usually purchased by the villages or entrepreneurs who specialize in custom farming operations. In 2004, China began to offer subsidies for purchase of farm machinery in selected counties. (3)

China is trying to inject more money into the agricultural by doubling loans to farmers between 2001 to 2005. The balance of agricultural loans has reached $145 billion in September of 2005. (3) The increase in farm lending is one of several policy initiatives to aid farmers. A large supply of domestic savings and large inflows of foreign investment has allowed China to inject large amounts of capital into their farm lending. This is being done to try to boost the incomes of rural households. The large rise in agricultural lending is one of many measures taken in recent years to solve China’s three rural problems.

The three rurals refer to rural people, rural areas, and agriculture. This phrase refers to closing the widening gap between urban and rural incomes. China has tried to push banks to make more loans to small farmers.

Sources of capital for farmers include individual savings, RCC’s, Agricultural Bank of China, & Agricultural Development Bank of China. The last bank listed only lends to state enterprises for storage of grain. The majority (more than 80%) (3) of agricultural loans are made by Rural Credit Cooperatives (RCCs). In 2003, China began a major reform of the RCCs to allow more lending to farmers. Ultimately, the Bank of China sets all interest rates for the RCCs.

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RCCs are a cooperative in name only. They can only operate in their home township or county. Ownership is unclear and members do not have any say in management.

One of the main problems with lending to farmers in China is the non-performing percentage or default rate. The default rate in 2005 averaged from 15 to 20%. (3) One of the reasons for the high default rate could be that all applicants to the RCCs usually are approved. Credit standards are usually not analyzed for a loan to be approved. Also, China had hopes of putting a lot of cash in to lending to farmers to enable farmers to invest in fixed assets and make their operation more efficient. Instead, the economic research service indicates that most of the loans were not spent on agricultural production. They indicate that most loans were used for house construction, school fees, health care costs, and or nonfarm business expenses. (3)

The RCCs do resemble commercial banks in the United States, but the rural China financial market is not driven by market forces. Many barriers to intermediation of funds remain. (3) Interest rates on loans do not reflect capital scarcity and the amount of risk in the operation. Rates are set by the Bank of China. RCCs used to have to follow the rates set by the Bank of China. Now, they can charge up to double the amount of the officially set rate. Studies have shown that all RCCs are charging the maximum interest rate possible. (3) Interest rates to farm loans in 2005 averaged 10%.

Competition does not exist between lenders in China. The rural market is segmented by type of borrower and geography. New banks cannot be established in a geographic area where a RCC already exists. RCCs are not allowed to fail.

In conclusion, China continues to encourage RCCs to make more agriculture loans to boost the rural farmer’s incomes and boost grain production. Due to overall growing population, China will have to find ways to increase agriculture production. Non-performing loans will remain high due to lack of lending standards set forth for RCCs. As long as China has a substantial growing pool of capital to draw upon, injections of cash will continue into the rural economy. The farming sector has a whole will continue to be behind the U.S. and other developing companies due to the small-scale, labor intensive operations. The short-term nature and small size of nearly all agricultural loans preclude use of loans to make investments in large fixed assets with a long payback period. (3)

1.) China faces a second land revolution January 3, 2008 by Kent Ewing2.) Agriculture in the People’s Republic of China from Wikipedia3.) New Directions in China’s Agricultural Lending by Fred Gale & Robert Collender

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China and South KoreaGovernment

Submissions by:

Thad Doye,Doug Ritter,

and Curtis Vap

The Government of South KoreaThad Doye

The South Korean Government that we think of is a modern form that has been applied since the Korean war. People have lived in Korea for over half a million years. The country has been ruled by a single government since the year 668. Korea maintained its political independence and cultural and ethnic identity for most of known time. Late in the 19th century Korea became a prize that China, Russia and Japan were competing to acquire. Japan annexed Korea in 1910 and instituted colonial rule, which ended what we know of as traditional Korea. The country was united until 1945 at the end of WWII. The proposal in the aftermath of WWII had the United States occupying the southern part of Korea and the Soviet Union, the north. The plan was for a short time period but both countries had different plans and installed their own forms of government. The split of the governments created the Republic of Korea (ROK) in the south and the Democratic People’s Republic of Korea (DPRK) in the north. Both territories claimed to have power over the other, which helped prompt the Korean war. North Korea invaded the south in 1950 in their attempt to reunify the country. The United States and United Nations troops fought with the ROK during the Korean War (1950-1953). They helped defend South Korea against DPRK’s aggressions, which were supported by the Soviet Union and China. A treaty was signed following the war in 1953, which split the headland at the thirty-eighth parallel. The Republic of Korea never signed the treaty, so technically the countries are still at war.

The Constitution of the Republic of Korea has been rewritten or revised nine times. The country is now on its sixth constitution from the original created in 1948. The constitution has mainly changed around terms of office and powers held by offices. The president is elected for a five year term. Most Koren presidents derive from the military. The Republic of Korea has always maintained its commitment to democratize its political process and have struggled to do this through the years. Not until 1997 after an economic crisis did the transfer of power in the government between parties happen by peaceful means.

The actual government of The Republic of Korea is divided into three branches. The branches are as follows: executive, judiciary, and legislative. The executive branch is headed up by the president. The president is elected by the people for only one five-year term. The president is the head of government, head of state and the commander and chief of the military. The president is solely responsible for deciding all important government policies. The president appoints a prime minister. The prime minister supervises the administrative ministries and manages the Office for Government Policy Coordination under the direction of the president. The prime minister is similar to the vice-president of the United States. The president performs his executive functions through the State Council. Members of the State Council are appointed by the president upon recommendation by the prime minister. The15 to 30 members of the council act on behalf of the president and are responsible to him. The Council members have the right to lead their administrative ministries, deliberate major state affairs, act on behalf of the president and appear at the National Assembly and express their opinions.

The president also has several agencies under his direct control that can formulate and carry out national policies. The agencies directly under the president are the National Intelligence Service, the Civil Service Commission, the Presidential Commission Small and Medium Enterprises, the Ombudsman of Korea, the Korea Independent Commission Against Corruption, and the Board of Audit. The Board of Audit is the only appointment that is subject to approval of the National Assembly.

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The second branch of the government is the National Assembly. This assembly is a unicameral legislature which means that the upper and lower legislatures mirror one another to increase efficiencies of the government. The assembly is composed of 299 members. Fifty-six of the members are appointments while 243 are elected by popular vote from local constituencies. The system is aimed at reflecting the voices of all the people and various political groups. The National Assembly is charged with a number of functions, the main one being to make laws. Other functions include approval of the national budget, matters relating to foreign policy, declaration of war, and the stationing of Korean troops abroad. Other functions of the national assembly are the foreign forces within the country, inspecting or investigating specific matters of state affairs and impeachment. The national assembly oversees many things; however, assembly members cannot be held responsible, outside the assembly, for any opinions expressed or votes cast in the legislative chamber.

The judiciary branch makes up the third group of the government. The judiciary consists of the Supreme Court, High Courts, District Courts, Patent Court, administrative and local courts. The courts exercise jurisdiction over civil, criminal, administrative, electoral, and judicial matters. Along with these duties, the court also oversees affairs related to real estate registrations, family registrations, financial holdings, and court officials.

The local government is supposed to deal with matters pertaining to the well being of local residents, even though they depend very heavily on the central government for decisions and funding. The main function is to implement centrally determined policies and programs as directed by central government ministries and agencies. The local governments do not have their own judicial, police, or education systems. The programs listed belong to and are operated only by the central government. Highly centralized governments have been very strong in Korea throughout history. Decentralized and elected officials are just beginning to have any power or authority of their own relating to local problems.

History has been very influential in the Republic of Korea. The past centuries have been dominated by very strong central governments. The country as a whole has not moved into a democracy similar to the United States up until the last two decades. It appears that the government is trying to downsize and let the people have more control of their society. The concept is new to the country, and is slowly taking effect.

The following flow charts are the technical flow of the Republic of Korea government.

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31

Works Cited:

Korea.net, The official homepage of South Korean Government.South Korea, US Department of State.South Korea, Wikipeda encyclopedia.South Korea, World Factbook, CIA of the United States.

THE GOVERNMENT OF THE PEOPLE’S REBUPLIC OF CHINADouglas Ritter

Type: Communist party-led stateConstitution: December 4, 1982Independence: Qing (Ch’ing or Manchu Dynasty) replaced by a republic in 1912; People’s Republic established in 1949.Branches of Government: Executive – president – Hu Jintao, vice president – Zeng Qinghong, State Council – Zhou Youngkang, Cao Gangchuan, Tang Jiaxuan, Ha Jianmin, Chen Zhili, premier – Wen Jiabo. Legislative - unicameral National People’s Congress. Judicial - Supreme People’s Court.State Power: divided amount three bodies; the Communist Party of China, the State, and the Liberation Army.Administrative Divisions : 23 provinces; 5 autonomous regions, municipalities directly under the State Council.Political Parties: Chinese Communist Party; 8 minor parties under communist supervision.Suffrage : Universal at 18.

A nation’s anthem reveals a great deal of a country’s government including the rights of its people. The Chinese anthem is no exception. The Anthem is titled the March of the Volunteers and speaks of a nation that has waged numerous struggles for national independence and liberation. The Anthem was adopted by the Constitution of the People’s Republic of China in 2004, and is translated as follows:

Arise, ye who refuse to be slaves!With our flesh and blood, let us build our new Great Wall!

The Chinese nationality has come to its time of greatest danger.Each person must send out a final roar.

Arise! Arise! Arise!Our greatest masses are of one heart,

Braving the enemy’s gunfire, March on!Braving the enemy’s gunfire, March on!

March on! March on! March on!

A Chronology of Key Events

Dynastic PeriodChina is the oldest continuous major world civilization with records dating back about three thousand five hundred (3,500) years. Successive dynasties developed a system of bureaucratic control that gave the agrarian based Chinese an advantage over neighboring nomadic and hill cultures. Chinese civilization was also strengthened by the development of a Confucian state ideology and a common written language that bridged the gaps around the country’s many local languages and dialects. The last dynasty was established in 1644 when the Manchus overthrew the Ming dynasty and established the Qing (Ch’ing) dynasty with Beijing as its capital. The success of the early Qing period was based on the combination of the Manchu martial prowess and traditional Chinese bureaucratic skills. During the 19th century, Qing control weakened and prosperity diminished. China suffered massive social strife, economic stagnation, explosive population growth, and Western penetration and influence.

The People’s Republic of ChinaIn 1911, inspired by the revolutionary ideas of Sun-Yat-sen, young officials, military officers and students overthrew the Qing Dynasty. To avoid civil war, the revolutionaries allowed high Qing officials to retain prominent positions in the new republic. Turmoil continued ushering in the era of the “warlords” during which China was ruled and ravaged by the shifting collations of competing provincial military leaders.

In the 1920, Sun-Yat-sen organized the Kuomintange (KMT or Chinese Nationalist Party) and entered into an alliance with the Chinese Communist Party (CCP). After Sun’s death in 1925, one of his protégés, Chiang turned on the CCP and executed many of its leaders which resulted in the beginning of civil war. The CCP forces fled to the mountains of eastern China and embarked on a “Long March” across China to the northwestern province of Shaanxi, where they established a guerilla base. During the “Long March” the communists reorganized under, Mao Zedong (Mao Tse-tung). In 1949, Mao Zedong led the Communist to victory after twenty (20) years of civil war and proclaimed the founding of the People’s Republic of China. A new political and economic order was established and modeled after the Soviet Union.

The Cultural RevolutionUnder the leadership of Mao Zeodong, China undertook massive economic and social reconstruction aimed at restoring the economy, curbing inflation and rebuilding many war-damaged industrial plants. These economic reforms proved unsuccessful and cause strife within the party. The Party General Secretary Deng Ziaoping took over direction of the party and adopted pragmatic economic policies at odds with Mao’s vision. Mao launched a massive political attack on his opposition called the “Great Proletarian Cultural Revolution” to rally opposition against other leadership groups. “Red Guards” attacked party and state organizations at all levels seeking out those with radical beliefs. Deng was stripped of his position. The political and social anarchy continued and Mao’s death in 1976 lead to more political turmoil. A struggle for power between the reformist and the veteran party continued. Deng was reinstated and his reform policies brought great improvements in the standard of living. Inflation, urban migration and prostitution emerged. Students and intellectuals staged protests at Tiananmen Square in Beijing urging for greater reforms. Hu Yaobang, a protégé of Deng was a leading advocate of reform was accused of staging the protests and was forced to resign from the CCP.

1989 Student Movement and Tiananmen SquareEconomic hardship and political strife continued. The death of Hu fueled the large-scale movement by students and intellectuals. On June 4, 1989 protestors camped out in Beijing’s Tiananmen Square. Chinese military troops and tanks entered Beijing massacring an estimated two hundred protestors. Others were arrested, sentenced without a trial, and tortured. Today, the Chinese government has yet to provide an accounting of those still incarcerated, killed or missing and continues to receive criticism from the United States for this event.

Today’s GovernmentThe 70.8 million member CCP continues to dominate government. Nevertheless, China’s massive population, geographical vastness, and social diversity frustrates the parties attempt to rule by fiat from Beijing. The CCP monitors all important government, economic, and cultural institutions to assure strict compliance with party policy and suppresses any organizations that could challenge the CCP rule.

State StructureThe Chinese Government is subordinate to the CCP; with the role of the government to enact or implement party policies. The primary officials are the National People’s Congress which has been called a rubber stamp legislature; the President, and the State Council. Members of the State Council comprise of Premier, (head of government), a variable number of vice premiers (currently four (4), five state councilors, twenty two (22) ministers and four (4) State Council commission directors.

Legal SystemIn the aftermath of “Cultural Revolution”, the Chinese leaders strived to develop a legal system to restrain abuses of official authority and revolutionary excesses. On the 4th day of December, 1982, the Constitution of the People’s Republic of China was adopted. The Constitution and the Amendments provide for fundamental rights including due process

rights. Even with the Constitution, criticism continues that these basic fundamental rights are often ignored.

Human RightsChina’s economic growth and reform has improved certain social freedoms of the Chinese people thereby substantially improving their lives. Since 1978, the Chinese have increased personal freedom to travel; seek employment, education and cultural pursuits; and to obtain information. China has also passed new criminal and civil laws to provide additional protection to its citizens.Other fundamental rights continue to be violated by the Chinese Government. These violations include arbitrary and lengthy incommunicado detention, forced confessions, torture, and mistreatment of prisoners. In addition there are severe restrictions on freedom of speech, the press, assembly, association, religion, privacy, workers rights, and coercive birth limitation. The United States of America continues to raise human right concerns with the Chinese Government at all levels. ______________________________________________________________________________

Sources:

Constitution of the People’s Republic of China, adopted on December 4, 1982.BBC NEWS, Country profile: China, http:// newsvote.bbc.co.ukEconomist.com, Country Briefing, China, Nov. 7, 2007 http;//www.economist.comDealing With China in the Coming Years, Ross Terrill, Harvard University, July 2007, Volume 36, No. 7.U.S. Department of State, Background Note: China, Bureau of East Asian and Pacific Affairs, October 2007.Message on the Eighteenth Anniversary of Tiananmen Square, Press statement, Tom Casey, Deputy Spokesman, Washington D.C., June 1, 2007.

The Constitution of the People's Republic of ChinaCurtis Vap

"China is one of the countries with the longest histories in the world."1 The history of China goes back several thousand years. However the current government, the People's Republic of China, was established in 1949. At that time the Communist Party of China led by Mao Zedong overthrew the previous government. In 1954 a constitution was written with newer versions adopted in 1975 and 1978. The current version of the Chinese constitution was adopted in 1982 with amendments in 1988, 1993, 1999, and 2004. The constitution of the People's Republic of China is a lengthy document consisting of a preamble followed by four chapters; general principles, the fundemental rights and duties of citizens, the structure of the state, and the national flag, the national anthem, the national emblem, and the capital. These four chapters are further broken down into a total of 138 articles. Chapter 1 (General Principles) immediately establishes that "the People's Republic of China is a socialist state under the peoples democratic dictatorship led by the working class and based on the alliance of workers and peasants. The socialist system is the basic system of the Peoples Republic of China" (article 1). "All power in the People's Republic of China belongs to the people. The organs through which the people exercise state power are the National People's Congress and the local people's congresses at different levels" (article 2). "The state organs of the People's Republic of China apply the principle of democratic centralism. The National People's Congress and the local people's congresses at different levels are instituted through democratic election" (article 3). Other articles further establish a socialist system for China. Article 6 states that "the basis of the socialist economic system of the People's Republic of China is socialist public ownership of the means of production, namely, ownership by the whole people and collective ownership by the working people." "The state economy is the sector of socialist economy under ownership by the whole people; it is the leading force in the national economy" (article 7). Other articles establish state ownership of land and other natural resources. According to article 10 "land in the cities is owned by the state. Land in the rural and suburban areas is owned by collectives". Additional articles in chapter 1 deal with other aspects of a socialist society. Article 19 discusses education policy, article 21 deals with medical services, and in article 22 "the state promotes the development of literature and art...". In article 26 "the state protects and improves the ecological environment, and prevents and controls pollution and and other public hazards". In article 29 "the armed forces of the People's Republic of China belong to the people". This article discusses the tasks of the Chinese military. A more controversial article is number 25. In it "the state promotes family planning so that population growth may fit the plans for economic and social development". This topic is also discussed in chapter 2, article 49 where "both husband and wife have the duty to practise family planning". Of interest to foreign travelers and businesses are articles 18 and 32. In the first "the People's Republic of China permits foreign enterprises, other foreign economic organizations and individual foreigners to invest in China and to enter into various forms of economic co-operation with Chinese enterprises and other economic organizations in accordance with the law of the People's Republic of China". In the second "the People's Republic of China protects the lawful rights and interests of foreigners within Chinese territory, and while on Chinese territory foreigners must abide by the law of the People's Republic of China". Additionally, article 32 states that foreigners may be granted asylum for political reasons. Chapter 2 deals with the rights and, also, the duties of the citizens of China. Article 33, the first of this chapter illustrates this dual reference. "Every citizen enjoys the rights and at the

same time must perform the duties prescribed by the Constitution and the law". So what are the rights of the people of China? According to article 34 "all citizens of the People's Republic of China who have reached the age of 18 have the right to vote and stand for election, regardless of nationality, race, sex, occupation, family background, religious belief, education, property status, or length of residence, except persons deprived of political rights according to law". Article 35 states that "citizens of the People's Republic of China enjoy the freedom of speech, of the press, of assembly, of association, of procession, and of demonstration". By article 36, "citizens of the People's Republic of China enjoy freedom of religious belief". The next several articles deal with other personal freedoms. Article 37 protects citizens against unlawful arrest and detention. "No citizen may be arrested except with the approval or by decision of a people's procuratorate or by decision of a people's court, and arrests must be made by a public security organ". According to article 38 " insult, libel, false charge or frame-up directed against citizens by any means is prohibited". Article 39 protects citizens from unlawful search of their homes. Article 40 gives citizens "the freedom and privacy of correspondence". Finally, "citizens of the People's Republic of China have the right to criticize and make suggestions to any state organ or functionary" (article 41). However, "fabrication or distortion of facts with the intention of libel or frame-up is prohibited". Next are some articles dealing with work related issues. According to article 42 citizens "have the right as well as the duty to work. Using various channels, the state creates conditions for employment, strengthens labor protection, improves working conditions and, on the basis of expanded production, increases remuneration for work and social benefits. Work is the glorious duty of every able-bodied citizen". Article 43 gives workers "the right to rest. The state expands facilities for rest and recuperation of working people, and prescribes working hours and vacations for workers and staff". Article 44 establishes a state retirement system. "The livelihood of retired personnel is ensured by the state and society". Article 45 says citizens "have the right to material assistance from the state and society when they are old, ill or disabled". Article 48 promotes gender equality. "Women in the People's Republic of China enjoy equal rights with men in all spheres of life, political, economic, cultural and social, and family life". All of these rights are tempered by article 51. "The exercise by citizens of the People's Republic of China of their freedoms and rights may not infringe upon the interests of the state, of society and of the collective, or upon the lawful freedoms and rights of other citizens". As previously mentioned, along with the people's rights are their duties. In article 52, citizens have the duty "to safeguard the unity of the country and the unity of all its nationalities". "Citizens of the People's Republic of China must abide by the constitution and the law, keep state secrets, protect public property and observe labour discipline and public order and respect social ethics" (article 53). Citizens have the duty to "safeguard the security, honour and interests of the motherland; they must not commit acts detrimental to the security, honour and interests of the motherland" (article 54). "It is the honourable duty of citizens of the People's Republic of China to perform military service and join the militia in accordance with the law" (article 55). Finally, according to article 56, it is the citizens duty "to pay taxes in accordance with the law". The structure of the Chinese government is addressed in chapter three of the constitution. According to article 57, the "National People's Congress of the People's Republic of China is the highest organ of state power. Its permanent body is the Standing Committee of the National People's Congress". "The National People's Congress and its Standing committee exercise the legislative power of the state" (article 58). "The National People's Congress is composed of deputies elected by the provinces, autonomous regions and municipalities directly under the Central Government, and by the armed forces" (article 59). Deputies are elected for five year terms (article 60).

Besides its legislative duties, the National People's Congress is responsible for the election of officials to several government positions. Two of these are the President and Vice-President of China (article 62). The Standing Committee is also elected by the National People's Congress (article 65). The Standing Committee is a permanent body which means it continues to perform duties when the National People's Congress is out of session. The duties of the Standing Committee are discussed in article 67. According to article 79, citizens "who have the right to vote and to stand for election and who have reached the age of 45 are eligible for election as President or Vice-President of the People's Republic of China". Their terms are for five years and they are limited to two terms. Duties of the two offices are discussed in articles 80 through 84. Keep in mind though, that the President and Vice-President are elected by and answer to the National People's Congress. The next several articles (85-92) address the workings and duties of the State Council. "The State Council, that is, the Central People's Government of the People's Republic of China, is the executive body of the highest organ of state power; it is the highest organ of state administration" (article 85). So, while the National People's Congress is the legislative body of the Chinese government, the State Council is responsible for administrating government. Two articles of the constitution address the military. "The Central Military Commission of the People's Republic of China directs the armed forces of the country" article 93. "The chairman of the Central Military Commission is responsible to the National People's Congress and its Standing committee" (article 94). The remainder of chapter three deals with other areas of government. Articles 95 through 111 discusses the organization and duties of local government. Articles 112 through 122 deal with government in the national autonomous areas. The last several articles of the chapter address the judicial system. "The people's courts in the People's Republic of China are the judicial organs of the state" (article 123). "All cases handled by the people's courts, except for those involving special circumstances as specified by law, shall be heard in public. The accused has the right of defence" (article 126). The remaining articles, 127- 135, discuss the organization and duties of the court system. The last chapter of the constitution consists of only three articles. According to article 136, "the national flag of the People's Republic of China is a red flag five stars". This article was amended in 2004 and "the national anthem of the People's Republic of China is the March of the Volunteers" was added. "The national emblem of the People's Republic of China isTian'anmen in the centre illuminated by five stars an encircled by ears of grain and a cogwheel" (article 137). "The capital of the People's Republic of China is Beijing" (article 138).

1) Taken from the preamble of the Constitution of the People's Republic of China, as shown in Wikepedia, the free encyclopedia.

China and South KoreaCulture of the People

Submissions by:

Julie Fitzgerald,Summer Kemp,

Kevin Long,and Cody White

Chinese and Korean Cultures: A ComparisonJulie Fitzgerald

There are many similarities to the two cultures, however from the research I have conducted; Korea’s openness to the west has broken down these similarities. In South Korea, many foods, technologies and ideas have been imported from Western countries, in particular the United States.

For example, Koreans have adopted many U.S. phrases and words in their vocabulary, yet China has individual Chinese names for every item around them. The two countries have entirely different writing systems. Koreans use a phonetic alphabet which allows them to transliterate, or write foreign words phonetically. Chinese have a character-based system.

China has always felt itself to be the most civilized of nations, being aware of lesser cultures but never allowing itself to be changed by them. Korea, a much smaller country, never had such ideas. They happily adopted many aspects of Chinese culture, including Chinese writing, until they adopted their own.

LifestyleFamilyThe stereotyped view of the Chinese family was that of a large extended family, with several generations and immediate families all living under one roof, being a self sufficient and self-help institution for its members, providing child care and the care of the elderly. This is no longer true for the modern Chinese family.

This is also the case for today’s typical Korean family. Traditional customs have undergone a great deal of change due to the rapid modernization of society. The traditional ways of the past and the long-cherished customs continue to influence Koreans’ newly acquired modern ways.

CuisineTwo foods that are most common in Korea are kimchi, a fermented vegetable dish and bulgogi, a marinated meat dish. Kimchi is a staple dish that is eaten at every meal, bulgogi or Korean barbeque, is more like a party food that is generally eaten on special occasions and when dining out or entertaining guests. The literal translation of bulgogi means “fire meat.”

Kimchi is a pungent, fermented dish generally consisting of cabbage or turnip seasoned with salt, garlic, green onions, ginger, red pepper and shellfish. It is low in calories and cholesterol and very high in fiber. In addition to being eaten as a staple side dish, kimchi is also used in a variety of cooked dishes. The most common is kimchi jjigae, a hot, fiery stew made by boiling kimchi with pork. Kimchi is also stir-fried with thin strips of pork and eaten with fresh tofu. It is also dipped in a flour-based flour and fried.

Much emphasis is placed on food in both Korea and China. When greeting someone, instead of asking, “How are you?” You will more than likely be asked, “Have you eaten yet?” China’s fascination with food stems from the ancient worship of gods and spirits. Today, any event can prompt a feast where families can bond, relationships can grow and business deals reached. For the Chinese, food isn’t just a social accessory, but the cornerstone of their culture.

In China, the diversity of geography, climate, costumes and products have led to the evolution of what are called the “Eight Cuisines”. Shandong Cuisine, Sichuan Cuisine, Guangdong Cuisine, Fujian Cuisine, Jiangsu Cuisine, Zhejiang Cuisine, Hunan Cuisine, and Anhui Cuisine. Cuisines from different regions are so distinctive that sometimes despite the fact that two areas are geographical neighbors their styles are completely different.

CustomsSocial OrderThe Confucian social order is based upon the five human relationships and it is this concept that has long shaped Korean behavior to a large extent. At meetings or social gatherings, social order becomes an immediate question: who should greet whom first, who should sit where, who should sit down first, etc. Among close friends, those born earlier are treated as older brothers and sisters. However, if the difference in age is less than 10 years, people address one another as equals.

The friendliness of the Chinese people is very often displayed. The Chinese are for the most part, friendly people, and their warm welcome is a reflection of their wish to make a good impression for themselves, their families and for their country.

Business EtiquetteAs far as business is concerned, having “connections” in China is crucial. A friendly, sincere relationship established over a period of time and based on mutual respect is an integral part of Chinese culture. The foreign business person is advised to establish such relationships.

In business situations, when offering business cards, the Chinese do so politely by offering cards with both hands and receive cards in the same way.

While shaking hands is not customary in China, Chinese men may shake your hand or expect their hand to be shaken by foreign visitors. Chinese people can be very direct and will not hesitate by asking you how much you earn, how old you are or whether you are married. Such questions are seen as nothing but taking a friendly interest in a new acquaintance.

LanguageThe Chinese language, although not unique, is one of a very small group of languages in which the written form does not vary with different spoken forms. In total, there are over 45,000 Chinese characters; however, a vocabulary of 4,000 would be good and a vocabulary of 9,000 unlikely in anyone without a university degree.

If the written form of the language is complex, the spoken variations are just as complicated. All Chinese languages use tones to distinguish different words. For all its complexity, the Chinese language has one saving grace – its grammar is fairly straight forward.

Many people visiting China for the first time, like many of us, will be in for a big surprise. Chinese conversations in public tend to be in loud voices. It may sound as though they are arguing. Chinese etiquette states that the best way to speak is softly and with one’s head slightly bowed. It is considered rude to answer back to those that are older than yourself. Chinese men speaking loud are not considered bad mannered, however a woman speaking loudly is considered rude.

Unlike China, Koreans all speak and write the same language. Koreans have developed several different dialects in addition to the standard used in Seoul.

Korean language is spoken by about 70 million people. Although most speakers live on the Korean peninsula and its adjacent islands, more than 5 million are scattered throughout the world.

In closing, the similarities and differences between the two countries are quite apparent. To a visiting tourist, their culture may appear to be quite different than the normal day to day life of Americans. However, both China and Korea place great emphasis on the institution of family and traditions, which are two things that are held very close to the hearts of Americans.

ReferencesDK Eyewitness Travel Guides – China, Main Contributors: Donald Bedford, Deh-Ta Hsiung, Christopher Knowles, David Leffman, Simon Lewis, Peter Neville-Hadley, Andrew Stonewww.chinatown-online.comwww.Korea.net

China’s One-Child Policy and

United States Adoption RatesSummer Kemp

The People’s Republic of China adopted their One Child Policy in 1979. It was designed to be a one-generation policy preventing both rural and urban families from having more than one child in the name of population control. Now, the Policy approaches its 30th anniversary and though the government attempts to clean up the Policy’s image, unofficial enforcement draws the attention of the United Nations and international human rights groups. Improvements to the policy are slow in coming but highly desired, both in China and abroad.

An outcome of this 30-year old attempt at population control is the availability of adoptable Chinese children, both domestically and abroad. This essay will examine i.) the One Child Policy and the nation’s attempts to comply, ii.) child treatment, particularly of girls, and iii.) the increase in adoption rates since the late 1980s when world-wide awareness spiked.

The Policy ItselfThe Peoples Republic of China has 1.3 billion people. In the interests of orderly economic development, the nation has vowed to keep its population under 1.45 billion by 2020. The One Child Policy was hoped to be the answer to an exploding country and during its early years, was strictly enforced.

Today, the laws surrounding the Policy have changed but society has been slow to adapt. As recent as September 2007, Canadian newspaper Toronto Star told the story of several Guangxi women collected and taken for forced abortions. Most villagers thought that enforcement had relaxed and that they would be able to keep their second children by paying a family planning fine or simply losing work benefits.

Rural hospitals have reputations for being filled with such women though urban areas find this a rare occasion. Once a government-endorsed act, the PRC outlawed forced abortions in 2002. Larger cities such as Beijing and Shanghi have been receptive to the changes but rural communities are slower to respond. Despite the improvement, the government efficiently keeps such incidents out of the limelight. Chinese lawyer Chen Guangchen is serving a hefty prison term after drawing international attention to government-endorsed forced abortions in his home province of Shandong. 1

China's population-control practices have long had the attention of human rights groups but recent incidents like this tell tale of government setback and draw world reprimand. "There isn't much hope," Guangchen’s wife told The Washington Post. "Everything that has happened runs counter to (President) Hu Jintao's talk of democracy and governing by law. We live in a nation without law, a nation without morality." 2

Abandoned or Orphaned ChildrenForced abortions aren’t the only side effect of China’s attempt at population control. Over the last 30 years, communities have burned through catalogues of compliance methods including forced sterilization, gender-selective abortion, bribery, child sale/abandonment and infanticide. Complicating the issue is a national preference for boys. The view is that sons are more successful at taking care of parents and grandparents when they can no longer

1 Schiller Bill, “Government Still Forces Abortion Despite Ban,” in World and Comment Section of Toronto Star. Toronto, Canada. (September 9, 2007), pg AA05.2 Philip P. Pan, “Chinese to Prosecute Peasant Who Resisted One-Child Policy,” in The Washington Post. Washington DC, (July 8, 2006), pg A12.

work. The pressure to have one son is high and as a result, girls make up an overwhelmingly large percentage of children cast aside. 3

Those who are lucky end up in orphanages or are offered up for informal adoption. In some cases, Chinese couples that cannot have children or that already have a son do chose to adopt a daughter. 4 Foreign countries have also taken interest in Chinese children over the last 20 years as a response to created public awareness. In the U.S. foreign adoptions amount to 64% female.

The United States carries the gold in overseas adoption. U.S. foreign adoption rates doubled during the 90s as seen in Figure 1 below. Overseas adoption is appealing to Americans for several reasons. Adoption in the U.S. demands treading seas of red tape, can take several years and is very expensive. Foreign adoption has a quick and financially leaner reputation, though that is sometimes an illusion. However, adoption standards are typically more forgiving. Single adults and families with lower incomes are not so quickly rejected in the application process. Parental-birth rights are also terminated more easily which is a great appeal to adopting parents. 5

Figure 1Number of International Adoptions by U.S. Parents, Fiscal Years 1989-2002

Source: U.S. State Department, "Immigrant Visas Issued to Orphans Coming to the U.S." (www.travel.state.gov/orphan_numbers.html).

According to the U.S. State Department and Figure 2 below, 66% of foreign-born children adopted by U.S. parents were from China, Russia and Guatemala in 2002. The supply of adoptable children in the U.S. is slowly receeding. Single motherhood is finally overcoming its once-daunting stigma and legal abortions are becoming a more common practice. This leaves families wanting to adopt children looking abroad at countries who are grasping at straws for solutions to their population, poverty and disease crisis. As long as fertility rates drop and/or philanthropic families take interest, the foreign adoption trend will continue to rise. 6

Figure 2National Origin of Foreign-Born Children Adopted by U.S. Parents, 2002

3 Li Lu Therese Hasketh and Zhu Wei Xing. “The Effects of China’s One-Child Family Policy After 25 Years,” in New England Journal of Medicine, 353, No. 11 (September 15, 2005), 1171-1176.4 Wikipedia.org/wiki/One_child_policy 5 Allisson Tarmann, In "What Drives U.S. Population Growth?” Population Reference Bureau. January 2003. 6 Office of Children’s Issues, U.S. State Department, "Immigrant Visas Issued to Orphans Coming to the U.S.: Top Countries of Origin.”

Source: U.S. State Department, "Immigrant Visas Issued to Orphans Coming to the U.S." (www.travel.state.gov/ orphan_numbers.html).Bibliography

Schiller, Bill. “Government Still Forces Abortions Despite Ban,” in The Toronto Star, World and Comment Section, Toronto, Canada. September 13, 2007.

Pan, Philip, “Chinese to Prosecute Peasant Who Resisted One-Child Policy,” in The Washington Post. Washington DC. July 8, 2006.

Tarmann, Allisson. "What Drives U.S. Population Growth?” Population Reference Bureau. Found online at: http://www.prb.org/Publications/PopulationBulletins/2002/WhatDrivesUSPopulationGrowthPDF540KB.aspx accessed January 10, 2008.

Hasketh, Li Lu Therese and Zhu Wei Xing. “The Effects of China’s One-Child Family Policy After 25 Years,” in New England Journal of Medicine, 353, No. 11. September 15, 2005.

Wikipedia.org/wiki/One_child_policy

Office of Children’s Issues: U.S. State Department. "Immigrant Visas Issued to Orphans Coming to the U.S.: Top Countries of Origin.” March 16, 2004.

China - Freedom of Religion: Fact or FictionKevin Long

In doing my research for Religion in China; I have found many interesting facts on the subject which lead me to this title. The People’s Republic of China was established in 1949. Its government is officially atheist, because they viewed religion as emblematic of feudalism and foreign colonialism. Religious belief or practice was banned because it was regarded as backward and superstitious by some of the communist leaders. Communist party members are directed by doctrine to be atheists. The Chinese Communist Party has said that religious belief and membership are incompatible. Party membership is a necessity for many high level careers and posts. From 1949 until 1966 the existing churches, pagodas, temples, and mosques were converted into non-religious buildings for secular use. Sometime in 1966 the Cultural Revolution led to a policy of elimination of religions and a large number of places of worship were destroyed. This policy was relaxed at the end of the Cultural Revolution and a little more tolerance of religious expression has been allowed since about 1980. In 1978 they changed the constitution to guarantee “freedom of religion” with several restrictions.

Basically, Chinese law requires religious groups to register “places of worship”. Any spiritual activities in places that have not registered are considered illegal and participants can be punished. There are six requirements for the registration for places of worship: 1) possession of a physical site, 2) citizens who are religious believers and regularly take part in religious activity, 3) an organized governing board, 4) a minimum number of followers, 5) a set of operating rules, and 6) a legal source of income. There are five “official” religions in China: 1) Buddhism, 2) Islam, 3) Taoism, 4) Catholicism, and 5) Protestantism. For each of the five officially recognized religions, there is a government-affiliated association that monitors and supervises its activities. It is interesting to note that the Catholic Church has government appointed Bishops. Most of the churches that get their registration register as government-controlled “patriotic” religious bodies of the Three-Self Patriotic Movement. The Three-Self Patriotic Movement began in the 1950’s in order to promote the ideas that the Chinese Church is not dependent on or controlled by foreign mission bodies, that it is possible to be both a Christian and a good patriotic citizen, and that Christians should identify themselves with the aspirations of the Chinese people.

The United States Department of State International Religious Freedom Report 2004 states that the Chinese Government’s respect for freedom of religion and freedom of conscience remained poor. The Chinese Law states that governmental officials who deprive citizens of religious freedom may, in serious cases, be sentenced to up to two years in prison; however, there were no known cases of persons being punished under this statute. The report also talks of numerous reports of intimidation, harassment, and varying degrees of interference to members of unregistered religious groups mainly Protestant and Catholic. The Chinese Government is very worried about foreign infiltration under the guise of religion. By Chinese law, foreigners are not allowed to proselytize.

According to a leaked internal document, the Chinese Communist party waged a secret campaign against unregistered “house churches,” for nearly six months. From mid June until mid November of 2007, central leading government officials called for a crackdown to “fight against infiltration by hostile overseas forces under the guise of Christianity and to safeguard the stability of society in the religious field.” All of the next few examples I’m going to give about this crackdown are from the past few months and one from last week. There have been about 45 million bibles printed in China since 1987 and they are available at state registered churches and at some small Christian bookstores. However two of these bookstores were shutdown and the owners arrested for selling or giving bibles to unregistered churches. During this past Christmas there were hardly any Catholics Masses in any of the unregistered churches because most of the bishops and priest were under house arrest. Christians across China are reporting a shortage of bibles, even in cites where bibles previously were readily available. Some of the underground churches are sharing one bible.

A secretary within the communist party spoke with someone about Christian views and was arrested and sent to re-education (hard labor) camp for one year.

On March 22, 2007 the Associated Press reported the plans of several mission organizations to “send thousands of volunteer evangelists” to the games because Visa’s will be easier to get during the games. Chinese officials have reacted negatively to these reports. Chinese government have allowed foreign Christians to work in universities, hospitals, orphanages, and business ventures throughout China with no problems in past few years. They have now revoked visas and deported over one hundred foreign Christians that the Chinese suspect of sharing their faith with Chinese citizens.

China has mostly left practioners of Buddhism and Taoism alone, because these religions date back 2,000 and 1,700 years in China history. The Islam has been left alone, as well, and has been in China since the 7th century. The Islam religion is in isolated areas of China in a minority group of Chinese and has showed very little growth. The Christians groups have had the harshest treatment, I think, because of two main factors. Chinese government view the Christian religion as western influence on their culture, and the government is against any kind of outside influence. I feel the Chinese officials are feeling very threatened by the huge growth of Christianity within China. A internal government report revealed that the Christian numbers could be as many as 130 million people now. This report shocked the officials.

According to Wikipedia, “Religion in China has been characterized by pluralism since the beginning of Chinese history.” This same article goes on to list the percentages of population which adhere to which religion.

The majority of Chinese people follow Buddhism (between 660 million, 50%, and over 1 billion, 80%) and or Taoism (400million, 30%). Number of adherents to these religions can be overlaid in percentage due to the fact that some Chinese consider themselves both Buddhist and Taoist. Minority religions are Christianity (between 40 million 3% and 54 million 4%), Islam (20 million, 1.5%), Hinduism, Dongbaism, Bon, and a number of new religions and sects.

The article implies that understanding religion in China is difficult because most of what people actually believe also has roots in “folk religion, Confucianism and ancestor worship.”

The mixture of family ancestral beliefs, and the long history of the people, as opposed to the relatively newly created state, and the introduction of communism, make for an interesting mix, and a very amalgamated and confusing belief system, mixing together some organized religious type activities with superstition and folklore, and then throwing in the governmental influence to top it all off.

Of course, it is not that different in this country. To attempt to describe the “religion of America,” would be very difficult. Some would say they are Christian. Others would define it more strictly to say maybe a Baptist or Lutheran, but what do they actually believe? Many would be hard pressed to really define their belief system. Many, if we really looked at them on a day to day basis might put more stock in “not walking under a ladder,” or not crossing the path of a “black cat,” than they would their baptism or lack thereof.

The official statement is that China enjoys freedom of religion. But it seems to me that the people of China are certainly not free in this area of their culture. Tied one way by the old sayings of Confucius, and bound another way to family traditions and customs, whether successful or dysfunctional, the people may be hobbled by the pressure of believing or not believing, depending on their ambition to serve the party and be a good Communist. I think the county has made great progress over the last 27 years, from none to some religion, but they have taken a few steps back in the last few months.

References:Wikipedia, the free encyclopedia

Compass Direct NewsAsiaNews.itBaptist PressMonitor.orgBBC NewsChina Christian CouncilU.S. Department of StateEmbassy of the People’s Republic of China in the United States of America

China/Korea: Culture of the PeopleCody J. White

History and Background: Approximately 2000 B.C. marked the beginning of a civilized society in China. The first Dynasty Xia began the era of dynasties. The Xia Dynasty was the slave era, followed by a feudal era. The first emperor was Shi Huang Di (Ying Zheng) of the Qin Dynasty (221-207 BC), who standardized the script, currencies, weights & measures, constructed the Great Wall in addition to a large palace, mausoleum and the terra cotta armies. In 1206, Genghis Khan unified all the tribes in Mongolia and founded the Mongol Khanate. In 1271, Khan’s grandson Kublai Khan, conquered the Central Plain, founded the Yuan Dyanasty (1271-1368), and made Dadu (Beijing) the capital. The Opium War of 1840 marked a turning point in Chinese history. The corrupt and incompetent Qing government capitulated to the foreign invaders time and again, and finally signed the Treaty of Nanjin with Britain, a treaty of national betrayal and humiliation. From then on, China was reduced to a semi-colonial and semi-feudal country. In the Revolution of 1911, a revolution led by Dr. Sun Yat-sen, ended the rule of the Qing Dynasty.

The Communist Party of China has led the People’s Republic of China under a single-party system since the state's establishment in 1949. Since this most recent conquest, the Communist Party has realigned the nation along Marxist lines. The Cultural Revolution (1966-76) was the culmination of Mao's policy. It caused immeasurable suffering and economic chaos. Intellectuals and religious believers were cruelly persecuted. It is estimated that 20 million Chinese lost their lives during that time. The death of Mao Zedong in 1976 and discrediting of radical leftists in 1978 was followed by a more pragmatic leadership under Deng. He initiated a series of economic, political and cultural reforms as well as developing links with other nations, but all within the limits set by Deng. The crushing of the 1989 student protest in Tiananmen Square in Beijing and also the collapse of communism in Europe and the USSR left China diplomatically isolated as the oldest surviving Communist regime.

The threatened government responded with a reversion to a strict ideological position and repressed all political, ethnic and religious dissent. Economic reform with tight political control emerged as government policy for the 1990's. In 1997, Hong Kong once again became part of China as a Special Administrative Region with Macau also reverting back to Chinese control in 1999. China pressures continues to remain intense on Taiwan to follow the peaceful example set by Hong Kong and Macau and unite all Chinese under the People's Republic of China. Once again, world attention is focused on China as it receives the Most Favored Nation status. This unleashes economic limitations previously set, and now poises it to become an economic world power.

Under Jiang Zemin's ten years of administration, China's economic performance pulled an estimated 150 million peasants out of poverty and sustained an average annual GDP growth rate of 11.2%. The country formally joined the World Trade Organization in 2001.

The current economic boom has negatively impacted the country's resources and environment. Current President Hu Jintao and Premier Wen Jiabao, the People’s Republic of

China have initiated policies to address these issues of equitable distribution of resources, but the outcome remains to be seen. For much of China's population, living standards have seen extremely large improvements, and freedom continues to expand, but political controls remain tight.

In China's group-oriented society, the family is more important than the individual. Family ties survived the upheavals of the Cultural Revolution and loyalty to family is still a hallmark of Chinese society. Family-planning policies include mandatory birth control, fines for violators and other pressure tactics. The elderly are still highly respected.

Han Chinese make up 92% of the population, with ethnolinguistic people groups comprising the remainder. Sixty-five percent (65%) of the population lives in rural areas. The Chinese government is encouraging rural dwellers to move to the cities and millions are moving there yearly. Today, there are over 150 cities with more than one million in population, but each year twenty more cities cross into the one million-plus category.

Language: The national language is Standard Chinese (Putonghua). It is the native language of more than 70% of the population. However, people might also speak the dialects or languages of their geographical regions. Chinese words are written in symbolic configurations called characters. Each character is a word in itself, and sometimes is part of a compound word. It makes no difference if you write the characters from right to left, left to right, or top to bottom, because you can read and understand them in any order. The four most common ways in which Chinese characters reflect meanings and sounds are: •Pictographs: Characters formed according to the shape of the objects themselves, such as the sun and moon.

•Ideographs: Characters that represent more abstract concepts: i.e. characters for “above” and “below” each have a horizontal line representing the horizon and another stroke leading out away above or below the horizon.

•Complex ideographs: These characters are combinations of simpler characters, such as the sun and moon together which mean “bright”.

•Phonetic compounds (or logographs): these compound characters are formed by two graphic elements, one hinting at the meaning of the word and the other providing a clue to the sound. Phonetic compounds account for more than 80 percent of all Chinese characters.

Christianity in China While atheism is the official postition in China, Confucianism, still influences attitudes and encourages a group consciousness, even today. Pluralism is the underlying concept, while most religious Chinese are pantheists. According to Wikipedia, between 660 million and over 1 billion Chinese are Buddhists or Taoists.

In 1950, when Christian missionaries withdrew from China, there were an estimated 920,000 believers in China. In an attempt to eliminate Christianity, the government engineered the infiltration, subversion and control of all organized Christianity. By 1958 this had been achieved through the Three Self Patriotic Movement (TSPM). During the Cultural Revolution even the TSPM was banned and all religious activity was forced underground, giving rise to the house church movement. Today, the conservative estimate is 60 million believers. The Registered Church in China claims at various times between 12 and 20 million believers in the churches. House church networks claim membership between eight to 20 million believers per network. The overall total is probably 45 million believers within the house church networks.

These house church network leaders are challenging their people to go as missionaries, and have stated that it is their desire and intention to send at least 100,000 church planting missionaries in the next ten years both domestically and internationally. In September 2000, simultaneous raids in three separate sections of China were conducted to arrest key house church leaders.

The communist government continues to oppose the rapid growth of Christianity in China. By controlling the number of church buildings, limiting the number of seminary students and persecuting the unregistered house churches, they try to control the growth of the church. Yet the church continues to grow at the amazing pace of doubling every few years. There are some reports of as many as 3,000 new Christian converts in China every day. Recently, the government has increased the persecution, suppression and arrests of house church participants, declaring that they are dangerous enemies of the State. The government opposition forces the house churches to not institutionalize, but use homes for meeting places and they rely on non-professional house church leaders thus removing frequent obstacles to rapid expansion.

Chinese Festivals Primary festivals in China include The Spring Festival (Chinese New Year), The lantern festival, Clear and Bright Festival, Dragon Boat Festival, Double Seventh, Mid-Autumn Festival, Double Ninth Festival, and National Day.

The Spring Festival (Chinese New Year) is the biggest festival of the year in China. The Spring Festival is held on the first day of the first month of the lunar calendar and will last for 15 days, usually in late January or mid February. People will travel long distances to be with their family at this time. There are many traditions associated with Chinese New Year. In the days leading up to Chinese New Year, people will thoroughly clean their houses, repay debts, cut their hair, and buy new clothes. On the last day of the old year, families get together for a large meal. In many parts of China a sticky-sweet glutinous rice pudding is served (nian gao), and in other parts they serve steamed dumplings (jiaozi). The family stays up late talking and at midnight, they will set off firecrackers to drive away evil spirits and greet the New Year.

References

Websites: www.asianinfo.org www.easia.imb.org www.wikipedia.org

Books: Chinese Phrases for Dummies, Dr. Wendy Abraham, 2005, Wiley Publishing, Inc.

China Health and Education Issues

Submissions by:

Rob Bauter,Bill Farris,

and Jean Williams

Education in China

An OverviewRobert Bauter

When studying the Chinese education system, you quickly see that the post World War II era brought about great changes in the education system and the accessibility to education for the working class. Prior to 1949, education was available only to the most wealthy and privileged in Chinese society, and consisted of the study of literary and “classical” Chinese traditions, and had little if any practical applications. However, with the overthrow of the Guomindang regime in 1949 and the Marxist ideology of the post 1949 government came a new focus on the practical application of education, and making education available to all, provided they were willing to follow the Communist government guidelines. Despite the increased availability of common education, higher education was still not encouraged until after the death of Mao in 1976 that resulted in the end of the Cultural Revolution (1966-1976). The post Mao government, seeing the need to modernize their society and desiring to compete in a global market, began putting a greater emphasis on higher education, resulting in a great increase in the number of schools, students and teachers from primary schools all the way through universities as evidenced by the chart below.

¡@ Higher Learning Middle schools Primary schools

Year No.Student(*)

Teacher(*)

No.Student(*)

Teacher(*)

No.Student(*)

Teacher(*)

1949 205 11.7 1.6 5,216 126.8 8.3 346,769 2,439.1 83.61952 201 19.1 2.7 6,059 314.5 13.0 526,964 5,110.0 143.51957 229 44.1 7.0 12,474 708.1 29.4 547,306 6,428.3 188.4

1965 434 67.4 13.8 80,993 1,431.8 70.9 1,681,939

11,620.9 385.7

1978 589 85.6 20.6 165,105 6,637.2 328.1 949,323 14,624.

0 522.6

1985 1,016 170.3 34.4 104,84

8 5,092.6 296.7 832,309 13,370.2 537.7

1990 1,075 206.3 39.5 100,77

7 5,105.4 349.2 766,072 12,241.4 558.2

1995 1,054 290.6 40.1 95,216 6,191.5 388.3 668,685 13,195.

2 566.4

(*)Number of student and full-time teacher in 10,000Tiglion Consultancy Company Limited

Starting in 1984 discussion regarding changes in law pertaining to education led to a May, 1985 education reform plan calling for nine years of compulsory education and the formation of the State Education Commission. The government’s official commitment was to increase funding for education to levels never before seen in China. By 1986 16.8% of the state budget was earmarked for education, compared to 10.4% in 1984. China has long been criticized for under funding education, instead favoring military might, however, education spending as a percent of the overall state budget has increased by one percentage point every year since 1998. Even though spending on education has increased, much of those resources do not reach the rural areas of China, which also contains some of the poorest of China’s population. Still, with the government call for nine years of

compulsory education for every citizen, only the first five years are fully paid for by the government.

“Although children in China have equal rights to education, the increasing disparity between industry and agriculture, and between cities and the countryside, has led to disparities in educational quality (T. Chen, 1994). Tsang and Ding (2003), for example, carried out a comprehensive analysis of governmental-funding patterns across different regions of China in the late 1990s. They found that (a) the national government spent less money on rural than urban areas and that the gap in urban/rural spending increased from 1997 to 1999; (b) nationally designated poor counties had lower enrollment rates, more poorly qualified teachers, higher dropout rates, more rundown buildings, and less school equipment than wealthier counties; and (c) the surcharges and miscellaneous fees paid by parents placed a disproportionate burden on families in rural areas, which contributed to lower school attendance in those communities.”

In addition to differences in funding (urban vs. rural) there is also a measurable difference in the number of males vs. females that have the opportunity to complete their education and/or go on to post-secondary educational institutions. In primary schools females account for 47.6% of students, but only 45.9% in secondary schools and 39.7% in higher education. Reasons for these differences have been attributed to a job market that favors males, lack of transportation to and from schools (parents not wanting their daughters to walk to school unescorted) and higher learning expectations for males. Males are also often expected to take over or carry on a family business or farm and support aging parents, while females are expected to marry and leave the custodial family. These reasons combined with the economic burden of paying for extended education placed on families with low-income levels results in girls being shortchanged in their education opportunities.

1. Finland 100% 9. France 99.00%2. Georgia 100% 10. Canada 99.00%3. Cuba 99.80% 11. Australia 99.00%4. Russian Federation 99.40% 12. South Korea 97.90%5. Japan 99.00% 13. Vietnam 96.00%6. United States 99.00% 14. Hong Kong 93.50%7. United Kingdom 99.00% 15. Thailand 92.60%8. Germany 99.00% 16. Peoples Republic of China 90.90%

As could be expected with the lack of available education for all citizens, China’s literacy rate is lower than many surrounding nations and nations that China competes with as well as trades with.

If China expects to be able to continue to compete in the global market of today’s economy, they are going to have to improve 1. Funding for rural education and 2. Access to education both from a rural vs. urban perspective and a male vs. female perspective. These things will have to happen if China expects to be able to provide trained, skilled workers for their expanding economy and to continue to be able to provide food and agricultural products to their growing population.

ReferencesPeverly, Stephen T. (2005) Moving Past Cultural Homogeneity: Suggestions for Comparisons of Students’ Educational Outcomes in the United States and China, 242, 245-246

Davis, Deborah; Landry, Pierre; Peng, Yusheng; Xiao, Jin (2007) Gendered Pathways to Rural Schooling: The Interplay of Wealth and Local Institutions, 72

Dongpoing, Yang (2003) China’s Education in 2003 (Chinese Education and Society) (July/August 2005)

Wikipedia, Education in the Peoples Republic of China

Wikipedia, List of Countries by Literacy Rate Lizhou Overseas, Living in China, The Education System

Traditional Chinese MedicineBill Farris

Thousands of years before, what we know as “modern medicine”came to be, the Chinese people practiced what is today commonly called “Traditional Chinese Medicine” or “T.C.M”. Traditional Chinese Medicine is an English term of which there is no equivalent term in the Chinese language. Today, Traditional Chinese Medicine is regulated by the State Administration of Traditional Chinese Medicine and Pharmacology. There are administration rules and regulations in place to guide and promote research and development in this industry.

Hospitals in China are classified as specializing in T.C.M., Modern Medicine or both. Universities in China provide programs in T.C.M. It takes seven years to complete a Doctoral program.

T.C.M. includes Chinese medication, pharmacology/herbology, acupuncture, massage and Qigong. The T.C.M. theory asserts that the processes of the human body are interrelated and in constant interaction with the environment and has been effective in the treatment of many diseases while both research and clinical trials are ongoing.

The origins of Chinese medicine come from the philosophies of Daoism. Daoism is based on observations of the natural world and the way it operates. In Chinese medicine metaphoric views of the body are based on observations of nature and are articulated in the theory of Yin and Yang.

T.C.M. philosophy treats the organs or “zang-fu” as the core of the body. Zang-fu and other body tissue are connected by blood vessels and a network of channels. Qi acts as a carrier of information between various parts of the body. A disease or improper function of a zang-fu organ may be reflected on the surface of the body and, likewise, a disease of the skin or surface of the body may affect the zang-fu organs. Traditional Chinese doctors will begin treatment with an analysis of the entire system and then readjust the functions of the zang-fu organs to correct problems. Yin and Yang are opposites, or in conflict, but mutually dependant. Traditional Chinese medical philosophy holds that human life is a constantly changing process. Under normal conditions the waxing and waning of Yin and Yang are kept within certain boundaries. It is when this balance is disrupted that disease occurs.

Qigong Therapy is an exercise to regulate the mind and breathing in order to promote and/or control ‘Qi’ or vital energy. There are five major Qigong traditions; Taoist (Daoist), Buddhist, Confucian, Martial Arts and Medical. Medical Qi combines Qi exercises with Meditation.

Acupuncture is based on the theory of meridians. According to the theory Qi (vital energy) and blood circulate through the body in a system of channels called Meridians. By stimulating particular areas of the body surface that are connected to the meridians the flow of Qi and blood are stimulated and diseases are treated. These stimulated areas are called acupressure points, or acupoints. Acupoints reside along more than a dozen meridians. The very fine, thin stainless steel needles vary in length from one half inch to three inches and are are usually left in at the acupoint for fifteen to thirty minutes. Acupuncture is generally considered to be a safe procedure although rare cases of infection and nerve damage have occurred. These cases were found to be due to practitioner negligence.

Tui Na is a form of massage often used in conjunction with acupuncture, herbalism and Qigong. Tui Na is an integral part of T.C.M. and is taught in Traditional Chinese Medicine schools.

There are about six hundred herbs used in Chinese medicine today. More than eight hundred pharmaceutical factories and thirteen thousand farms produce more than four hundred thousand tons of T.C.M. drugs and herbs. The Chinese Pharmacopia lists more than six thousand medicinal substances and their properties and uses. Contrary to Western herbal use where herbs are generally prescribed singularly, the Chinese herbalist will prescribe formulas often containing four to twenty herbs. Some plant based herbal medicines may have the risk of allergic reaction for patients. Potentially toxic compounds like Arsnic and Cinnabar, sometimes used in medicinal mixtures, can cause poisoning. Most of these cases are due to self medication. Continuing research, stricter regulations regarding growing, processing and prescriptions are increasing the safety of herbal medicines. The United States banned the Chinese herb Mahuang, known as Ephedra in the West, in 2004. There were no known cases of Ephedra causing fatalities with patients using the traditional Asian herbal preparation but the FDA ruled that Ephedra posed an unreasonable risk.

In China, practitioners of Western medicine and T.C.M. work cooperatively. Outside China, medical doctors and scientists are skeptical of the benefits of T.C.M., dismissing it as psuedo science and superstition, while T.C.M. practitioners criticize Western doctors for focusing on lab tests and dismissing the overall feelings of the patient. On September 6th.2007 Abraham Chan, President of the Modernized Chinese Medicine International Association, announced that T.C.M. is getting a dose of modernization by packaging about six hundred and seventy-five plant and fungi ingredients and about twenty-five non-plant ingredients, such as snakes, geckos, toads, bees and earthworms, in pill form.

1/15/2008References:www.TCMpage.comwww.indexchina.comwww.wikipedia.org

CURRENT STATUS OF HEALTHCARE AND EDUCATION IN CHINA

JEAN WILLIAMS

The healthcare system in China reflects the current mood of China which is one of significant change. The effort to change and modernize is reflected in business, industry and healthcare. For fifty (50) years the Chinese Marxist government took care of the healthcare needs of the nation. The government dictated what was necessary and paid for the care. The central, provincial, and local governments funded hospitals and medical care was provided at either no charge or very little charge to patients.

Now, China has moved into a more capitalistic entrepreneurial era. Hospitals have been told that they must fund some of their own costs. Patients, therefore, are being asked to pay for some of their own care. There is currently no system for private health insurance.

The alarming thing in China is that there is an almost total absence of primary care. Even in the cities, there are no independent doctor’s offices or clinics. People have to go to the hospital for every health care need. Crowding and confusion occur because there is no system for appointments. In a country of over 1.4 billion people it would currently require an additional half a million family doctors to provide service comparable to many western countries.

Hospitals are structured differently from place to place. Large cities, such as Beijing, are served with both general and specialty hospitals. Specialty hospitals, much like in the West, have excellent equipment and technology performing such care as cardiac surgery angioplasty and transplant surgery. In rural areas, there is a structured system of local and county hospitals with increasing levels of expertise as you go up through the system. There are still areas of extreme poverty where hospitals may have little in the way of modern equipment or even modern plumbing.

Despite there being no private health care system, patients can pay an additional amount of money to see a physician of their choice, at a more convenient time, or to receive more individual care. Many of these payments are unofficial, but the newly affluent Chinese are demanding a better level of service, including private rooms and special nursing care.

Another element of the system is traditional Chinese medicine. Many of the Chinese physicians use a few of these techniques and medications along with more modern medical practices.

Training of doctors in China is divided into three levels, being high, middle and basic. Forty percent of the secondary students selected for medical school become high-level doctors. Training varies from four to as much as eight years. The remaining sixty percent of children selected for medical school become middle-level doctors. They attend a three year school at one of 550 medical colleges focusing on practical clinical work. Most of these doctors work in the rural areas in the provincial hospitals. The basic level doctors is a legacy of the “cultural revolution” and have a minimal level of training. These basic doctors practice in rural areas where the majority of the population resides. Their training varies from as little as three weeks to one year.

Regarding basic education in China, the development of the educational system has been dramatic and far reaching. Before the founding of the Peoples Republic of China in 1949, basic education in China was extremely backward. The country had only 1,300 kindergartens, 289,000 primary schools and 4,266 secondary schools. Currently, there are 112,000 kindergartens, with an enrollment of over 20 million children. There are 457,000 primary schools with an enrollment of 122 million students, with a net enrollment rate of primary schools reaching almost 99 percent of the children. Full time teachers in the

primary schools have reached six million. There are 66,000 junior secondary schools with an enrollment of 67 million children and a net enrollment rate of junior secondary schools at 90 percent.

In China, primary and secondary education takes twelve years to complete. A nine year schooling program in primary and junior secondary schools is required compulsory education. General senior secondary education lasts three years.

The Chinese government has promoted universal compulsory education in rural, poor and minority areas. The Chinese seek to integrate the development of education with the upgrading of the quality of the labor force in order to develop local economies and improve the standard of living of the people. The Ministry of Education also promotes after-school education in the development of the primary and secondary school students. After school programs have the children taking part in scientific, cultural, and recreational activities organized by the many children’s clubs, scientific and technological centers.

There are over two thousand higher education institutions, serving over 12 million students. The total enrollment for graduate students exceeds 500,000. The higher education system is primarily financed by the government, but is now obtaining resources from the private sector, as well as charging student fees. Vocational education is a recent development started in 1991. In light of the economic and social development of the 1990's. The Chinese central committee continued to develop the vocational education system and enacted the first vocational education law in 1996. Vocational education in China is provided at three levels being the junior-vocational, senior-vocational and tertiary level. The junior-vocational is aimed at training workers, peasants and employees from other sectors with basic professional knowledge and skills. Junior vocational education refers to the vocational technical education after primary school education and is a part of the nine year compulsory education. To meet the needs of labor forces for the development of the rural economy, junior vocational schools are mainly located in rural areas where the economy is least developed. The secondary level refers to the vocational education in the senior high school stage. Composed of specialized secondary schools, skilled worker schools and vocational high schools are the mainstay of vocational education of China. These schools provide training in practical skills needed by the developing production, service, technology and management industry. There are over 18,000 secondary vocational schools with an enrollment of over 12 million students.

Tertiary vocational schools last 2-3 years and enroll graduates from regular high schools and secondary vocational schools. These schools train the students for high level technical and management positions.

The Chinese government has devoted much attention to guaranteeing the rights and interests of disabled children. There are over 9 million disabled children under the age of 14, accounting for 2.66 percent of the children of this age group in China. China has established the national rehabilitation research center. In addition, the Chinese have 26 provincial level rehabilitation centers and over 1000 rehabilitation stations, kindergartens and training classes for disabled children. The compulsory education law requires that disabled children obtain education through special education schools. In rural areas the national average enrollment rate for disabled children has reached 60 percent of the disabled children. In economically developed areas enrollment has reached 80 percent of the disabled children. The Chinese are making progress in the fields of healthcare and education. In a country of 1.4 billion people and a vast expanse of territory, the challenges are great. The leaders in the Chinese government recognize that in order to bring the country into the modern era,

the health care and education must be improved and developed to reach, not only the urban areas, but the rural areas where most of the population still reside.

REFERENCES:

Healthcare in China, IBM Business consulting Services; Author: Chee Hew

http://www.edu.cm/20010101/21782.shtmlhttp://www.medhunters.comarticleshealthcareInChina.htmlhttp://www.pacificbridgemedical.com/publications/html/ChinaNov1993.htmhttp://www.moe.edu.cn/english/basic_b.htmhttp://www/china.org.cn.e-white/children/c-5.htmhttp://www.moe.edu.cn/english/vocational_v.htmhttp://blog.case.edu/ccrhd/2008/09/09the_state_of_healthcare_in_chinahttp://www.chinaculture.org/gb/en_aboutchina/2003-09/24/content_24144.htm

China and South KoreaEconomics

Submissions by:

Galynn Beer,JD Elwood,

and Hope Pjesky

The Economics of ChinaGalynn Beer

How does a country as old as China lay in relative economic obscurity for thousands of years, and then seemingly out of nowhere emerge as a force with which to be reckoned? An OALP class alum that made the trip to China several years ago, Jarrod Stewart, has said that he is actually surprised by the emergence of China onto the economic scene. Even though on his trip to China there were indications that things were changing, he felt that under their political structure that it would be difficult to motivate the citizens of China to excel, and to maintain long term growth if motivation for growth did occur. And would the government of China be comfortable with this growth and the influences on the citizens of the country? I think if we are honest with ourselves, all of us probably have the same opinion. We may be wiser to their influence today, but knowing that China that has existed for thousands of years, it is difficult to envision that after all of this time, a country can change its philosophies and also implement those philosophies to produce an economic powerhouse on the global economy. The Chinese Communist Party was once considered the most radical and fearsome enemy of private enterprise that the world has known after all. However, a change in that China is exactly what is happening. What I will attempt to do over the next page and a half is try to explain how this is occurring. From the shift in policies, to how they are utilizing the diversity of nearly 1.5 billion people to be able to not only have a sector of the population with a very high knowledge base but also a nearly endless supply of cheap labor to accomplish many things at a price that is inconceivable to most of the world. Let’s proceed to take a look at this change.

The free market system in China really began at the agricultural level. The system in China that existed was that land was allocated to farmers for them to grow crops on. The crops were then collected by the Government, known as the ‘grain tax’. The government would then redistribute the grain throughout the country. Ironically, much of the starvation in the country actually existed in the communities in which the grain was being produced. At this time in the 1970s, the average annual income of Chinese farmers was 20 Yuan, which converts to about $2.50 per year in U.S. dollars. Some were desperate for a better life. So a group of eighteen farmers secretly divided up their land in a manner that allowed them to grow crops and pay the expected ‘grain tax’ that would typically be produced from this land. But they would each have some plots that were designed for production over and above the ‘grain tax’ for them to market separately at a farmer’s market. This was an extremely dangerous endeavor and absolutely not endorsed by the government. In fact, they knew that if caught that imprisonment or death was a possibility and accounted for in the pact. They had decided that if one of them was caught and punished that the others would take care of his family. As generally happens when there is incentive to succeed, the production went up significantly. The farmers had grain to pay the tax and leftover produce to sell on the open market. As word of this leaked to the Government, they decided to allow it to continue and allow other similar situations to exist on an experimental basis. The success led to the Chinese Government instituting the House Responsibility System which officially allowed farmers to grow crops for sale on the open market as long as they met their quota responsibility to the state. The program was considered a success and by 2003 had increased the annual income of the Chinese farmer to over 2600 Yuan/year which converts to $313 U.S. dollars per year. While this still seems like a small income, it was an increase of 130X. While versions of this scenario vary, it is widely accepted that the House Responsibility System kick-started the free market system in China. This resulted in a shift in philosophy in China and gave the Government a glimpse of what could happen if you allowed the citizens the opportunity to benefit from a free market system.

The next step was that the Chinese Government decided to test market capitalism on a wider scale. They established Special Economic Zones, known as SEZs, in which the

Government infused money and also allowed businesses to operate under a different set of rules than the rest of the country. As the advantages for a free market system became apparent, more leniencies were allowed in the previously strictly controlled economy of China. Foreign money began streaming in to take advantage of a more business-friendly climate that had an endless supply of cheap labor. Originally, China began attracting outside investment by providing a source of cheap labor, and that still exists. However, China has made it clear that it intends to compete with the rest of the world by using the more intellectual and educated portion of its population to compliment the supply of cheap labor to be able to become innovators and builders of consumer products. The sudden growth of the free enterprise system has really resulted in many hodge-podge type businesses. In the early stages, Government officials agreed to turn a blind eye to illegal enterprises as long as they had the opportunity to invest and benefit from the businesses. This practice continued to the point that there is strong mingling of government in many of the businesses that exist. The free enterprise system was also so much more efficient that many government entities that existed to provide products prior to the capitalistic economy existed could no longer compete. The bureaucracy that existed was so inefficient that its culture could not adapt. Failure of those businesses resulted in a shift of employment from the government to newer, more efficient private sector businesses.

The cheap labor impact has been chronicled in many instances. Companies like Wal-Mart have benefited from the new China, and have used this to force their suppliers to provide cheaper products. One supplier to Wal-Mart that manufactures fans had demands placed on them by Wal-Mart that left them no option but to move operations to China where they could employ factory workers for 25 cents per hour. This move was reportedly viewed favorably by Wal-Mart. One of the impacts of China has no doubt been to hold down world wages, and with such a large supply of labor, that is not likely to change. The import structure that has existed between China and the United States has contained built in quotas that required that the U.S. purchase textiles from other countries as well. As trade restrictions have been relaxed, the U.S. is purchasing more from China at the expense of other countries. Politics and sanctions will also have an impact. As an example, in 2003 the U.S. put sanctions on bra manufacturing in China because of labor practices. China retaliated by backing out of an agreement to purchase 300 million tons of U.S. wheat. The politics inside and outside the country will play a significant role in the future.

The resources needed to feed the free market system economy of China that has been growing at a rate 3 times the U.S. growth rate will put pressure on many resources on a world-wide basis. The fossil fuel needs of the country has caused it to go from an oil exporting country to one that imports 7 million barrels/day and is projected to increase to 14 million barrels/day by 2012. The economic growth has increased the disposable income of China’s citizens, especially in the urban areas. With the increased income comes an increased desire for consumer goods. Car sales for the month of April in 2004 numbered 43,000---that’s just for the city of Beijing. That means in excess of 1300 cars/day are being added to the streets of Beijing. That explains the new thirst for fossil fuels. And it is estimated that China currently is only able to produce 80% of its energy needs. This causes the need for rolling blackouts, with some areas going without electricity for 2 days at a time during these temporary blackouts. Other needs of the country are driving up prices of everything from fertilizer inputs to ocean freight rates, which have as much as tripled in some instances. So while there is an aspect of China that results in lower prices of many finished products, there is a demand side of China and its need for raw materials that also results in increased prices of raw materials trickling back to the U.S. As a result, China’s economy in some aspects provides cheaper products to American consumers, but on the other hand drives up the prices of other products at the same time. It is unlikely that we would have seen $100/barrel oil without the influence of the Chinese economy. The demand for fossil fuels could actually cause conflict in a world that is suddenly trading on friendly terms.

The Communist China still flexes its muscle when necessary. All land in China is owned by the Government. So when land that is currently occupied by sub-standard housing or other undesirable enterprises is leased to a new tenant at an attractive rate, the bulldozers come

rolling through people’s homes with very little warning. If resistance is met, the military is sometimes used to force people from their homes. The ‘old China’ is used to usher in the ‘new China’!

China will be a huge factor for generations to come. The last census put China’s population at 1.3 billion people. The work force and rural population is constantly moving and so an accurate count of that many people is difficult to peg. An estimate based on grain consumption/person puts the population closer to 1.5 billion people. That would make the uncounted population of China the sixth largest country in the world and would be about 70% as big as the United States. And that is the uncounted portion of China!!! The buying appetite for one and a half billion people will burden supplies of a wide range of raw materials that is unparalleled. China’s hunger for steel and cement for new construction cannot currently be met; the result of hundreds of new skyscrapers under construction at the same time in the urban areas of China. A problem like this would not likely occur in other countries where labor would likely be a limiting factor…but labor is certainly not limiting in China.

There will be many challenges and obstacles as the free enterprise system of China continues to take shape and grow, and the impact will be far reaching and produce consequences that will be both positive and negative. The disparity in wages from top to bottom, the insatiable appetite for various raw materials and the odd intermingling of the Government in free enterprise will certainly pose challenges for years and probably decades to come. However, the emergence of China as an economic power will push the work force in the United States to be creative and will reshape the future of businesses throughout the World. Nothing pushes creativity and excellence like a ‘China’ nipping at your heels.

References:‘The World is Flat’ by Thomas L. Friedman‘China * Inc.’ by Ted C. Fishman

China’s Agricultural Economy and Rural PolicyJ.D. Elwood, Jr.

China's policies on agriculture and agricultural trade have changed dramatically over the last 20 years, reducing the role of government intervention and centralized planning and simultaneously increasing the role of market forces. China's membership in the World Trade Organization (WTO) will further increase reliance on market forces, and will enhance opportunities for U.S. agricultural exports. As the incomes of China's 1.3 billion people continue to rise, demand for more and higher quality food products will grow. Domestic production will be unable to meet all of this demand, and in the future China will be a key market for agricultural exports.7

 China-United States statistical comparison

Item                                                                         China               U.S. Population, 2004 (million) 1/                                    1,300                 294Cropland, 1997 (million acres) 1/                                321               430Cropland per agricultural worker, 1997 (acres) 2/           1                 140Agricultural gross receipts, 2004 (billion dollars) 3/      366                  241Agricultural exports, 2004 (billion dollars) 4/                 15.8                 62.4Agricultural imports, 2004 (billion dollars) 4/                 25.9                52.7

1/ Census data.2/ Calculations based on census data and labor force statistics. 3/ Gross value of crop and livestock receipts. 4/ China and U.S. customs data analyzed by ERS.

Demand for Food Quantity and Quality in ChinaAs their incomes rise, Chinese consumers are changing their diets and demanding greater quality, convenience, and safety in food. Food expenditures grow faster than quantities purchased as income rises, suggesting that consumers with higher incomes purchase more expensive foods. The top-earning Chinese households appear to have reached a point where the income elasticity of demand for quantity of most foods is near zero. China’s food market is becoming segmented. The demand for quality by high-income households has fueled recent growth in modern food retail and sales of premium-priced food and beverage products. Food expenditures and incomes have grown much more slowly for rural and low-income urban households.8

 TradeFarmers, agribusiness managers, and policymakers around the world will need to carefully watch the complex process of development in order to assess China’s likely policy changes and their impacts on world markets for agricultural products. With a rapidly growing economy and WTO membership as the latest step in the march toward global integration, China is poised to becoming a larger market for imported agricultural products.9 

China's trade pattern in agricultural commodities follows its comparative advantage: it tends to import land-intensive commodities (grains, soybeans, cotton) and export labor-intensive commodities (fish, fruits, vegetables, poultry, and processed agricultural goods). China is also a major exporter of corn. In 2006, China's agricultural imports totaled an estimated U.S. $30.6 billion and its agricultural exports totaled U.S. $20.9 billion. Most of its exports go to neighboring countries in Asia.

7 United States Department of Agriculture: Briefing Rooms/China, By Fred Gale, November 2007.8 Economic Research Report No. (ERR-32) 40 pp, By Fred Gale and Kuo Huang, January 2007.9 Economic Research Service/USDA: Agricultural Outlook, By Fred Gale and Bryan Lohmar, May 2002.

Historically, the United States has supplied a significant (although varying) portion of China's imports of soybeans, cotton, and wheat. Bilateral agricultural trade in 2006 consisted of U.S. $6.7 billion in U.S. exports to China, and U.S. $2.3 billion in imports from China. The United States is a net exporter of bulk commodities (primarily soybeans) to China. The United States is a net importer of fish, forest products, vegetables, and various processed foods from China.10

China has often been a major player in international markets. It has been a major source of growth in world demand for soybeans since the mid-1990s. Soybeans now account for about half of U.S. agricultural exports to China.

Sudden and dramatic policy shifts, and their subsequent effect on China's international trade profile, make the country a relatively volatile player. In 1994 and 1995, China abruptly increased its grain imports and cut off corn exports as concerns about grain shortages and inflation became widespread. China stopped importing wheat and boosted grain exports from 1997 to 2003.

10 United States Department of Agriculture: Briefing Rooms/China/Trade, By Fred Gale, June 2007.

PolicyChina's agricultural and rural policy is evolving rapidly. Strict central planning and taxation of agriculture (1950s to 1970s) has been replaced by reliance on markets and agricultural subsidies in the 21st century. China has an ambitious and challenging set of objectives. The government is using an array of subsidies, tax cuts, and infrastructure spending policies to boost lagging rural incomes, preserve social and political stability, encourage grain production, improve food safety, prevent environmental degradation, and increase agricultural productivity. The following summary provides a brief overview of the main agricultural policy measures used by the Chinese government.11

Summary of China's agricultural policy measures

Direct subsidies------------------------------Provide small payments to grain farmers based on historical grain acreage; introduced in 2004. Subsidize purchase of high-quality seeds and agricultural machinery.

Agricultural tax cuts-------------------------Eliminate taxes on farmers.

Improved market infrastructure-----------Establish and support wholesale markets, commodity exchanges, and futures markets. Promote   e-commerce and improve cold storage and transportation facilities.

Rural infrastructure investment-----------Fund water-efficient irrigation, drinking water, electrification projects, methane plants, a rural road network, antipoverty efforts, and develop "production bases" for grain or other commodities.

Loans for farmers and agribusinesses---Direct rural credit cooperatives to extend more loans to farm households. Give preferential bank loans to selected agribusinesses that contract with farmers.

Land protection------------------------------Strictly enforce rules regarding conversion or sale of cropland for nonagricultural use.

11 United States Department of Agriculture: Briefing Rooms/China/Policy, By Fred Gale, March 2005.

Research--------------------------------------Consolidate and increase funding for research institutes developing crop and livestock varieties with improved quality and yields.

Food safety standards----------------------Establish and enforce standards for chemical residues and other harmful substances in food. Establish animal disease monitoring and control systems and safe livestock feed production. Promote organic and "green" agriculture.

SummaryChina’s impact on world agricultural markets in coming decades will depend on many factors. Growing income and transition to modern urban lifestyles will increase demand for all foods, but demand will shift toward meat and high-value products. WTO accession may increase openness of China’s agricultural trade and allow more imports. An understanding of geographic variations of consumption, production, trade, and policy is critical to understanding the vast China market. Development of transportation infrastructure and market channels will make it easier for food products to reach consumers. China’s approach to biotechnology and its reform of institutions for allocating land, labor, and water inputs have important implications for agricultural productive capacity.12

References:Agricultural Outlook.  Fred Gale and Bryan Lohmar, May 2002, Economic Research Service/USDA.China’s Food and Agriculture: Issues for the 21st Century.  Fred Gale, editor, Market and Trade Economic Research Service, U.S. Department of Agriculture. Agriculture Information Bulletin No. 775.United States Department of Agriculture. Economic Research Service.

Websites:www.ers.usda.gov/ 

12 China’s Food and Agriculture: Issues for the 21st Century. Fred Gale, Editor, April 2002.

The United States-Korea Free Trade AgreementHope Pjesky

On June 30, 2007 the United States and Korea signed an historic free trade agreement that will expand bilateral trade and investment ties and create new economic opportunities for people in both the U.S. and South Korea.

“This day is a milestone in the enduring economic and security alliance between the United States and Korea. Today we look ahead to building on a half century of friendship and cooperation to promote the greater prosperity of the people of both our nations,” said U.S. Trade Representative Susan C. Schwab.  “The United States-Korea Free Trade Agreement is the most commercially significant free trade agreement the United States has concluded in nearly 20 years.  I look forward to continuing to work with Members of Congress of both parties on the approval of this important agreement.”

The KORUS FTA was concluded on April 1, 2007, after eight formal rounds of negotiations that took place over ten months.  It will build on an already robust bilateral trade and investment relationship between the United States and Korea.  Korea is the world’s tenth largest economy, with a GDP of nearly $1 trillion.  Korea is the United States’ seventh largest goods trading partner, with two-way goods trade in 2006 valued at approximately $78 billion.  When implemented, the KORUS FTA will expand trade and investment flows between the two countries.13

The U.S.-Korea Free Trade Agreement (KORUS FTA) will provide America’s farmers, ranchers, food processors, and the businesses they support with improved access to the Republic of Korea’s 49 million consumers. If approved by Congress, this would be the most economically significant trade agreement for the U.S. agricultural sector in 15 years.

The United States is already Korea’s top supplier of a broad variety of agricultural exports at $2.85 billion ($3.4 billion including fish and forest products) in 2006, making Korea the sixth largest export market for U.S. farm products. The new agreement is expected to expand those sales even further. The United States is the No. 1 supplier to Korea of many farm products including almonds, beef, fresh cherries, hides and skins, poultry, soybeans, corn, and wheat. Lower tariffs benefit both U.S. suppliers and Korea’s consumers. The tariff reductions will help the United States compete against China and Australia, which have increased their presence in Korea’s $12 billion agriculture market. The KORUS FTA will help the United States compete against Korea’s other major agriculture suppliers and help keep the United States on a level playing field with Korea’s current free trade partners, such as Chile, and any future FTA partners.

Almost two-thirds of Korean imports of U.S. farm products will become duty free immediately. These include wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine. Other farm products that will benefit from immediate duty-free access within new tariff-rate quotas (TRQs) and safeguards include skim and whole milk powder, whey for food use, cheese, dextrins and modified starches, barley, popcorn, soybeans for food use, dehydrated and table potatoes, honey, oranges, and hay.

U.S. farm products benefiting from expanded market opportunities with 5-year tariff phase outs include grapefruit, a broad range of processed food products, chocolate and chocolate confectionery, sweet corn, sauces and preparations, alfalfa, breads and pastry, orange juice, dried mushrooms, sausage, and cucumbers. These products represented 12 percent of Korean imports of U.S. farm products. Market access for beef and pork will be improved with

13 USTR Press Release - 06/30/07 – United States and Republic of Korea Sign Landmark Free Trade Agreement

tariffs for the most important pork products phased out by 2014, and those for beef products, by year 15 of the agreement.14

I found the article “Successful Talks lead to U.S.-Korean Pact” in the September 24, 2007 edition of FB News very interesting it said. “While attention over the last six months focused on the WTO negotiations, U.S and Korean negotiators put together a far-reaching bilateral trade agreement. Although the Korea-U.S. Free Trade Agreement (KORUS) still has to be approved by both countries’ legislatures and has a 20-year implementation period, it represents a win-win for both sides.”

“U.S. gains are concentrated in agriculture and the service sectors, while Korean gains are concentrated in the manufacturing sector. U.S. agriculture could be the major sectoral winner in this agreement. Why? Several factors are at work to boost potential U.S. agricultural export gains with the new agreement.”

“First, while Korea’s agricultural production potential is extremely limited, growth in demand for agricultural products has been robust. Korea ranks in the bottom 10 countries in the world in terms of arable acreage per capita. The country’s natural resource endowment is limited enough to put it in a class with China.”

“Conversely, Korea’s demand for agricultural products is strong, with growth averaging between 2 percent and 2.5 percent per year for the last decade. This has been due to population growth but, more importantly, to sustained growth in per capita incomes among its 50 million consumers. This has generated more consumption of agricultural products and a shift in consumption toward livestock and special products.”

“Second, the Korean market is one of the most protected markets in the world, with trade barriers keeping imports from growing faster than the 6 percent to 8 percent pace of the last decade. Korea’s bound tariffs are high—over 400 percent for corn and soybeans, 40 percent for beef, and 45 percent to 55 percent for produce. This ranks Korea among the top 25 countries in the world in terms of tariffs. These tariff rates would normally be prohibitive but for Korea’s practice of levying much lower applied rates for the items and the volumes that it wants to import at specific times of the year.”

“Korea also uses non-tariff barriers (NTB’s) such as sanitary and phytosanitary restrictions that are not based on sound science. Hence, Korea is both a large and growing market and a highly protected market subject to large-scale government intervention to “manage imports.”

Third, the U.S. has not done well in the Korean market. Our sales have expanded steadily, but the U.S. share of the Korean market is generally below the U.S.’s share of the world market for many commodities.”

“U.S. performance in the Korean market is the result of several factors. “Local” exporters such as Australia (wheat, cotton, beef, etc.) and China (corn, vegetables, etc.) face substantially lower transportation costs. Even when landed U.S. prices are competitive, the Koreans often use “understandings” with other countries to undercut market prices and displace U.S. sales.” “The terms of the KORUS address many of these concerns. While stopping short of free trade in some products such as rice, the agreement makes the U.S. the preferred supplier for a broad range of agricultural products. Korea’s high trade barriers and willingness to “work the market” through NTBs and informal understandings now work to the competitive advantage of U.S. suppliers facing lower or no tariffs and more limited NTBs.”

“What did U.S. agriculture give up in return for this special access to the Korean market? Korea’s agricultural products are afforded similar treatment in the U.S. market. However, with Korea a large net importer of virtually all the major agricultural commodities and with

14 USTR FTA Fact Sheet – July 2007 – U.S.-Korea Free Trade Agreement – Benefits for Agriculture

Korean prices well above U.S. prices even before transportation costs are considered, any increase in Korean exports to the U.S. is likely to be small at best.”

“What does all this mean in dollars and cents? AFBF analysis suggests that by 2028, when the agreement is fully implemented, U.S. agricultural exports will be $1.6 billion higher (assuming constant commodity prices). That’s $5.6 billion rather than the $3.9 billion they would be without the agreement. This assumes a modest 10-point increase in the U.S. share of the faster growing Korean market.”“Aggressive marketing by the U.S. to realize the full potential of the agreement could translate into even larger U.S. gains.”

During remarks on U.S. Trade Relations with Asia before the Washington International Trade Association on July 24, 2007 Deputy U.S. Trade Representative, Karan K. Bhatia, said “On June 30th here in Washington, we took perhaps the biggest step yet toward ensuring long-term U.S. competitiveness in Asia when we signed the U.S.-Korea Free Trade Agreement. Other than a successful conclusion to the Doha Round, enactment of the KORUS FTA may be the single most important action that can be taken today to further U.S. trade objectives in the region.”

“As our country’s most commercially significant bilateral trade deal in the past 15 years, KORUS eliminates tariff and non-tariff barriers to provide American businesses access to the world’s 11th largest economy. Nearly 95% of bilateral trade in consumer and industrial products becomes duty-free within three years of entry into force, while more than half ($1.6 billion) of current U.S. farm exports go duty-free immediately. Studies have estimated that, all told, KORUS will add between $17-$43 billion of income to the U.S. economy.”

“But the fact is, KORUS is about much more than numbers. This is a gold standard FTA that boasts state-of-the-art rights and protection for investors, landmark commitments by Korea on market access for services, substantial new protections for intellectual property rights and, in spite of what some critics contend, unprecedented provisions that level the playing field for U.S. automakers in a market in which their ability to compete fairly has long been thwarted.”

“In short, the KORUS FTA possesses the potential to be a template from which other high-quality free trade agreements in Asia can be concluded. With this agreement, Korea has taken a giant step down the path of economic liberalization and reform, and I firmly believe others in the region are prepared to follow. To offer you a quick anecdote, following the conclusion of KORUS negotiations in April, Ambassador Schwab and I received a number of calls from counterparts around Asia communicating their congratulations. In a number of cases, immediately after conveying their good tidings, these officials urged us to consider taking our bilateral relations with their respective countries “to the next level”, so to speak. So it is clear that the Asians understand the significance of this accomplishment -- now the question is, do we?”

“If we succumb to protectionism within our own borders, and allow KORUS to fail – or not even receive – a Congressional vote, the repercussions promise to be severe and enduring. If unable to effectuate a strong and comprehensive FTA that clearly benefits the United States, U.S. credibility in Asia will be dealt a serious blow as trading partners will be left to question our commitment to our vital relationships in the region. Fearing U.S. disengagement from Asia, Korea and other emerging-market economies of the region will approach more willing trading partners and establish preferential agreements with them. Indeed, Korea is not standing still – it is already negotiating FTAs with the EU, Canada and India, and may be contemplating launching with China as well. The true losers in this scenario stand to be the millions of American workers with export-dependent jobs who would face the consequences of this country competing on an un-level playing field in one-third of the global economy. In short, failure to ratify this agreement would be to fail them – in the Korean market and beyond. It is for all these reasons that I am ultimately confident that Congress will see the critical importance of KORUS, and it will be ratified.”