Building new countryside, China's historic choice
3/3/2006 15:03
Zang Min, a 43-year-old beekeeper, used to lead a merry life, but smiles are
fading away from his face since he can hardly make a profit from his honey
export to the United States as before. Zang, a native of Hushan village in
Feidong County of East China's Anhui Province, could score a net income of
50,000 yuan ( about US$6,210) each year before the US imposed an anti-dumping
tariff as high as 183 percent on China's honey products. "I was traveling
with my bees and collecting honey around the country last year, but I eventually
failed to recover my expenses after selling the honey to the United States ,"
Zang said. The sudden changes in the external environment have plunged Zang's
life into an predicament. Zang, who has been in the trade for eight years, is
raising only 100 hives of bees as against 150 in the past, since "the more you
raise, the more you loose," he complained. However, Zang's life is likely to
have a turn for the better, thanks to the historic decision of the central
government to rally all possible resources to change the backward situation in
the vast rural areas. The participants to the annual sessions of China's top
legislature and advisory body will mull over the hot topic of building a new
countryside. Zang hopes that the decision will help many poverty-stricken
areas including his native village become prosperous and rich like many parts of
the country. The fourth sessions of the National People's Congress (NPC) and
Chinese People's Political Consultative Conference (CPPCC), which are taken as
significant political events in China, will be held on March 3 and March 5
successively. "My family and I are expecting good news from the NPC and CPPCC
annual sessions," Zang said. The ruling Communist Party of China (CPC) hopes
to boost rural productivity, improve infrastructure construction, promote social
development and deepen democracy in the countryside as well as increase the
living standards of farmers, Chen Xiwen, deputy director of the Office of the
Central Financial Work Leading Group said. Kang Shaobang, a research fellow
with the Research Institute of International Strategies under the Party School
of the CPC Central Committee, said international background and other factors
were also taken into consideration when the Party was considering a making such
a decision. Chinese President Hu Jintao said in the opening remarks at the
seminar for provincial and central government ministers on building a new
countryside that the global economic development is becoming more unbalanced,
the competition for resources, markets, technologies and talented personnel is
turning scorching, and trade protectionism is a common thing. All these are
posing new threats to China's economic and social development. According to a
report recently published by the Organization for European Economic Cooperation
(OEEC), the assistance and subsidies granted to farmers by EU countries account
for 34 percent of farmers' total income, those by the United States 20 percent,
and 58 percent and 64 percent respectively in Japan and the Republic of Korea,
but only 6 percent in China. Experts said that trade protectionism has forced
many Chinese including beekeeper Zang fall to become victims. The losses of
China's agricultural products have run up to billions of dollars due to green
and technology barriers set by some foreign countries. Therefore, China is
making hard efforts to reduce its heavy dependence on investment and export and
is set to maintain steady and rapid development by fueling more domestic demand,
experts said. China's dependence on foreign trade was high as 60 percent last
year, but consumption only contributed 33 percent to economic
development. Lan Haitao, an expert from the Macroeconomics Research Academy
under the State Development and Reform Commission, said that the goal (of
building socialist countryside) can not be reached without significant
improvement in rural consumption power. "The rural market is the stabilizer
of China's economy in the future," he said. Tang Min, chief economist with
the Asian Development Bank's China office, echoed his view, saying the
construction of a new countryside can help solve the problem. In China's
rural areas, where the population accounts for 72 percent of the country's
total, the proportion of retail sales of consumer goods in the total retail
sales of consumer goods has dropped from 65.7 percent in 1980 to 32.9 percent in
2005. The expanding income disparity between urban and rural areas, which is
3.22: 1, constitutes the main factor in this regard. Peace, development and
cooperation remain the irresistible trend of the times, but the international
environment is changing rapidly and unpredictably. Factors leading to
instability and uncertainty in peace and development are on the rise, and are
posing new challenges to China's security. "Only when the problems relating
to agriculture, rural areas and farmers have been solved properly, can China's
economy develop in the correct direction," said a CPC document. "It is an
important historic mission China must accomplish on its road toward
modernization," it said. "This should become a common understanding of the
entire Party and the whole society."
Xinhua news
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