Notes: Newsletter of the National Committee on U.S.-China Relations, Summer 2013

7/29/2019 Notes: Newsletter of the National Committee on U.S.-China Relations, Summer 2013

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National Committee on

United States-China Relations

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U.S.-ChinaTrack IIEconommicDialogue

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PublicIntellectualsProgram

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NationwideCHINA TownHall programfeaturesAmbassadorGary Locke

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America and

Chinas Dream

Spring / Summer 2013

Volume 40, Number 1


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Cover:NCUSCRPresidentStephen Orlinswith then VicePresident Xiinping at a

NationalCommittee co-hosted event inWashington,D.C. inanuary 2012

Photo:Kaveh Sardari

Forty five years ago as a high school senior, I stoodon street corners handing out literature for SenatorRobert F. Kennedys run for president. I listened to him

quote Shaw and say, Some see things as they are andsay why, I dream things that never were and say whynot. I believed that his vision would bring a prosper-ous and peaceful America.

Last February I stood with Chinese President XiJinping - he was then vice president - at a luncheon andI experienced a new kind of Chinese leader. I presentedhim with a photo album of his fathers 1980 Americanvisit hosted by our organization. The photos showed aChinese delegation of provincial governors and partysecretaries, led by his father, visiting the United Statesright after the historic opening of China and eager tounderstand the American dream as they met with lead-

ers and ordinary Americans across the United States.Rather than simply saying thanks and putting the

book aside, he opened it and we discussed eachpicture. He told me who each Chinese leader was,asked where the pictures were taken and who eachAmerican was. It was unscripted, human, extended farbeyond the allocated time and showed a Chineseleader willing to expose his human side. Today whenPresident Xi speaks of his Chinese dream, Imreminded of that time 45 years ago when RFK talkedabout that dream. Like RFK, President Xi dreams ofpoverty alleviation, national rejuvenation, and freedomfrom corruption.

His message is to not repeat the mistakes of history,to not allow historic great power rivalries to dictate ourfuture. This weekend, when President Obama meetsPresident Xi in California, they will have the firstopportunity to define that concept together and see ifthey can dream things that never were and ask whynot.

We have already begun to see the outlines of XisChina dream. On the domestic front, Premier LiKeqiang, in a speech delivered to senior party leaders,committed to an aggressive agenda for economicreform, pledging to reduce government involvementin the economy and allowing market forces to play a

greater role in guiding economic growth and increas-ing investment and innovation.

The National Development and ReformCommission proposed an absolute cap on greenhousegas emissions, as well as a cap on coal consumption.Additionally, Xis elevation of substance over form, hisdecision to follow in the footsteps of Deng Xiaopings1992 Southern trip by visiting Shenzhen (whichrelaunched economic reform), and his anti-corruption

drive, all combine to demonstrate his commitment toreform.

Internationally, China is becoming the responsible

stakeholder that Robert Zoellick called for in his speechbefore our National Committee in 2005. Unequivocalstatements that a denuclearized Korean peninsula isChinas first priority, vastly improved military-to-military relations between our countries, commitmentto establish standards for cyber hacking and progresson long-stalled discussions regarding diligence byauditors on Chinese listed companies show progresson issues long stalled.

Xis dream is about reform, and Obama should doall that he can do to help him achieve the reform heseeks. As a first step, Obama and Xi should announcethe commencement of negotiations for a free trade

agreement with a three-year deadline for conclusion.Just as WTO accession helped Jiang Zemin and ZhuRongji reform China, a free trade pact would do thesame, as well as add jobs here in America.

They should also enliven the negotiations for abilateral investment treaty and set a one-year deadlinefor completion. Bilateral investment will play anincreasingly important role in this new great powerrelationship. To jump start a major Chinese investmentin the U.S., Obama should also pledge to authorizeexports of shale gas to China. Construction of theterminals and extraction of the gas will createAmerican jobs, reduce Chinas reliance on imported

energy and coal, reduce Chinas CO2 emissions, andimprove its environment.

The protection of intellectual property must be a toppriority in a new great power relationship because bothsides require it. In order to achieve an innovation soci-ety, China knows it must protect intellectual propertyFor the United States, theft of its citizens intellectualproperty makes it difficult to believe that China iscommitted to a truly new relationship. The presidentsshould establish a bilateral task force to agree onspecific policies that will ensure greater protection forintellectual property.

Finally, the presidents should announce that

Obama will visit China within the next twelve monthsand during that visit he will directly address theChinese people about his vision of the future forAmerica and U.S.-China relations. Let the two presi-dents lay the foundation for this new great powerrelationship and dream things that never were and askwhy not. n

Adapted from an op-ed published in POLITICO onJune 7, 2013

A Message from the PresidentAmerica and Chinas Dream


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Forum on Chinas Economy at NYSEForecast for 2013 from Chinas Leading Economists

The National Committees fourth annual forum onChinas economy in the coming year brought some of

Chinas leading economists to a capacity audience of300, including nearly 50 journalists, at the New YorkStock Exchange on January 7. Conducted in cooper-ation with Peking Universitys China Center forEconomic Research (CCER), the programs speakersincluded Dr. Justin Yifu Lin, former chief economistand senior vice president of the World Bank; Dr. QinXiao, former chair of China Merchants Bank andcurrent chair of the Boyuan Foundation; as well asCCER Director Yao Yang and economist HuangYiping, among others. The visiting economists, aswell as other leading specialists and business leaderswere in New York for this event and to participate inthe National Committees U.S.-China Track IIEconomic Dialogue (see page 4).

The forum was introduced by NYSE EuronextCEO Duncan Niederauer and included keynotes onlong-term growth in China by Dr. Lin and on Chinasnew leadership and reform agenda by Dr. Qin. Paneldiscussions featured analyses of Chinas capitalmarkets and investment strategy, financial marketsand monetary policy and projections for financialreform and real estate in China. Video of the fullprogram and presentation slides are available on theNational Committees web site.

The National Committee is grateful for the gener-ous support from Xcoal Energy & Resources, Van EckGlobal, The Starr Foundation and NYSE Euronextthat made this years forum possible. n

National Committee President Stephen Orlins andWang Jianye, Chief Economist, the Export-ImportBank of China

Justin Yifu Lin, Professor and Honorary Dean,National School of Development, Peking University

Yao Yang, Director, China Center for EconomicResearch (CCER), Peking University (left); Qin Xiao,Chairman of the Board, Boyuan Foundation; formerChairman, China Merchants Group

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Forum attendees at the New York Stock Exchange


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The U.S.-China Track II Economic Dialogueprovides opportunities for leading economists fromboth sides of the Pacific to collaborate in developingsuggestions to inform policy decisions. The sixthround of the dialogue was held in New York City

January 8-9, 2013. The frank and productive meetingsproduced a consensus document of recommendations(see below) that was delivered to senior U.S. andChinese leaders.

The Track II initiative was launched by theNational Committee in 2010 in partnership withPeking Universitys China Center for EconomicResearch (CCER); five prior meetings have beenconducted in China and the United states since itsinception. Many dialogue participants (see page 5)

have been involved from the start of this initiative andthe talks have remained substantive, open andproductive. In 2013 the dialogue focused on risks andchallenges faced by both countries, reforms neededon both sides to address these challenges and recom-mendations for collaborative efforts to improve trustbetween the two countries.

Following the dialogue in New York, the Chineseparticipants visited Washington, D.C., for meetingswith Assistant to the President and Deputy NationalSecurity Advisor Michael Froman, Under Secretary ofState Robert Hormats and Acting Secretary ofCommerce Rebecca Blank, among others. The consen-

sus document was given to those officials, as well asto Secretary of State John Kerry and to incomingChinese President Xi Jinping, Premier Wen Jiabao andVice Premier Wang Qishan.

The National Committee is grateful to XcoalEnergy & Resources, Van Eck Global and The Starr

U.S.-China Track II Economic Dialogue

Foundation for their support of the dialogue.

Consensus View of the SixthU.S.-China Track II Economic Dialogue

January 8-9, 2013 New YorkThis year, a leadership transition in China and the

reelection of Obama in the United States present bothnew opportunities and challenges in improving theeconomic relationship and building trust between thetwo countries. Chinese economic growth stabilized inlate 2012 and will likely improve modestly in 2013.However, three favorable economic factors that drovegrowth in the past unlimited labor supply, lowproduction costs and rapid export expansion are

diminishing rapidly. Future growth in China willdepend more on reforms, innovation and industrialupgrading. The U.S. economy narrowly escaped thefiscal cliff at the start of 2013, but near-term legislativedeadlines on key fiscal issues still pose significantrisks that could disrupt markets. Despite progress byhouseholds in deleveraging their balance sheets, arecovery in housing and a modest resumption in jobcreation, the U.S. unemployment rate remains highand economic growth is well below its long-termpotential.

Both China and the United States require impor-tant structural reforms to sustain growth and support

stability. As new teams take over economic leadershipin both governments, they should move expeditiouslyto implement needed reforms, rather than await acrisis to act. Reforms in China and the United Statescombined with collaboration between the two largesteconomies, can underpin prosperity for both countriesand support the global economy.

The new leaders in China have made firm commit-ments to re-accelerate economic reforms, with thecentral theme of urbanization. They will likely intro-duce or deepen reforms in several areas, such as thehousehold registration (hukou) system, extension ofexperiments on service VAT, property tax andresource tax, and income distribution policy. Incoming months, the Obama administration will haveto work with Congress to raise the debt ceiling, avoidsequestration by agreeing on a plan to cut spendingand pass a continuing resolution to keep the U.S.government operating. Over time, the United Stateswill also need to revitalize its tradables sector, rebuild

Leading Economists Develop Consensus View

Justin Yifu Lin and Robert E. Rubin continued on page 22


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Track II Economic Dialogue Participants

Chinese Participants

Qin Xiao Chairman of the Board, BoyuanFoundation, Dialogue Co-Chair; Member, 11thChinese Peoples Political Consultative Conference;Former Chairman, China Merchants Group

Justin Yifu Lin Professor and Honorary Dean,National School of Development (NSD), PekingUniversity (PKU); Senior Vice President and ChiefEconomist, World Bank

Gao Shanwen Chief Economist, Essence SecuritiesCo., Ltd

Huang Haizhou Chief Strategist, Managing Directorand Co-Head, Research Department, China

International Capital Corporation (CICC)

Huang YipingProfessor, Deputy Director, ChinaMacroeconomic Research Center (CMRC), PKU

Lu FengDeputy Dean, NSD; Director, CMRC, PKU

Wang Jianye Chief Economist, the Export-ImportBank of China

YAO YangDeputy Dean, NSD; Director, ChinaCenter for Economic Research (CCER), PKU

Zha DaojiongProfessor, School of InternationalStudies, PKU

Chen Xi Coordinator, CCER

American Participants

Maurice R. GreenbergChairman and CEO, C.V.Starr & Company

Carla A. Hills Chair, National Committee on UnitedStates - China Relations; Co-Chair, Council onForeign Relations; Chair and CEO, Hills & Company

Trevor Houser Partner, Rhodium Group; VisitingFellow, Peterson Institute for InternationalEconomics

Constance Hunter Senior Advisor, InternationalSolutions Network

Dino Kos Managing Director, HamiltonianAssociates, Ltd.

Nicholas R. Lardy Senior Fellow, Peterson Institutefor International Economics

Edward Matthews (Observer) President and

Director, C.V. Starr & CompanyRobert Millard Managing Director, Realm Partners

Stephen A. Orlins President, National Committeeon United States - China Relations

Daniel H. Rosen Founder, China Practice Leader,Rhodium Group

Robert E. Rubin Co-Chair, Council on ForeignRelations; Former U.S. Treasury Secretary

Kim Schoenholtz Professor of ManagementPractice, Economics Department, New YorkUniversity

Jeffrey Shafer Former Vice Chairman, GlobalBanking, Senior Asia Pacific Officer in New York,Citigroup

Jan van Eck Principal and Director, Van Eck Global


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The education of senior policy makers about the realitiesof the U.S.-China relationship is central to the National

Committees mission. The National Committee sent thefirst delegation of Congressional staffers to China in 1976and sent its first group of members in 1996. After severalyears hiatus, member and staff delegations were resumedin 2006, the latter under the Mutual Education andCultural Exchange Act of 1961 (MECEA). Since then, theNational Committee has taken 14 members of the House ofRepresentatives to China, most of whom belong to theCongressional U.S.-China Working Group (with which wework closely), as well as 24 Senate and 51 House staffmembers. The program promotes informed decision-makingby enabling members and staffers to speak directly with keyPRC officials and learn firsthand about Chinas accom-

plishments and challenges. We also run a program fornewly elected Congressmen about China.

Congressional U.S.-China Working GroupMembers Delegation to China

National Committee President Stephen Orlins leda bipartisan delegation of five Congressionalmembers to China for an informative series of high-level meetings and site visits in Shanghai, Beijing andHong Kong from January 24 to February 1, 2013. Thegroup included U.S.-China Working Group Co-ChairRick Larsen (D-WA) and Representatives Jim Costa

(D-CA), Leonard Lance (R-NJ), Billy Long (R-MO),and Mike Turner (R-OH), accompanied by Rep.Larsens legislative assistant Marc Numedahl andscholar escort Mary Gallagher, associate professor ofpolitical science, director of the University of

Taking Congress to China

Michigans Center for Chinese Studies and a fellow inthe National Committees Public IntellectualsProgram.

The overall agenda focused on several issuesaffecting American interactions with China that wereof specific interest to the Congressmen, including theleadership transitions in both countries, Chinaseconomic reforms, U.S. business in China, regionalsecurity issues, American and Chinese domestic chal-lenges, and Hong Kongs relations with the UnitedStates and China.

The program began in Shanghai with a busy week-end stay. In fact, immediately upon arrival at theShanghai Pudong International Airport, the delega-tion went first to meetings/briefings at the BoeingShanghai Aviation Services and then Fed Ex (both ofwhich are situated quite close to the airport), and onlythen proceeded into the city and to their hotel. Aroundtable organized by AmCham-Shanghai and theUS-China Business Council that focused on economicand trade issues began the next days program. Thiswas followed by three programs held in conjunctionwith the U.S. Consulate: a luncheon hosted by Consu

General Robert Griffiths that included a very interest-ing and eclectic mix of Americans living in Shanghaiinvolved in a broad range of activities; a briefing fromthe Consul General and his senior staff; and a panelof leading Shanghai-based academics focused on thepotential for political and economic reform under theincoming Chinese leadership, and its impact onSino-American relations. The group also had an

NCUSCR Member and Staff Delegations

Members of the Congressional Members Delegationwith State Councilor Yang Jiechi in Beijing

U.S.-China Working Group Co-Chair Rep. Rick Larsen(D-WA) meeting with Vice Premier Wang Qishan

continued on page 14


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NCUSCR Gala Dinner3M and PepsiCo Honored for Roles in China

More than 500 guests attended the NationalCommittees Gala Dinner honoring 3M and PepsiCo,held at the Plaza in New York on October 8, 2012. Thecelebration coincided with the fortieth anniversary ofthe National Committees role in Ping PongDiplomacy. The $1.4 million raised will provide crit-ical funding for many National Committee programsthroughout the year.

The evenings honorees, Inge G. Thulin, chairman,president and CEO of 3M, and Indra K. Nooyi, chair-man and CEO of PepsiCo, both delivered remarks onthe work of their companies in China and their aspi-rations for Sino-American relations. The honoreeswere each presented with a large scroll painting byrenowned Chinese artist Zhao Wei, president of the

China National Academy of Painting.Special congratulatory messages to the National

Committee came from President Obama andPresident Hu Jintao and were read, respectively, byNational Committee Chair Carla A. Hills and PRCAmbassador to the United States Zhang Yesui.Award-winning jazz trombonist and Young LeadersForum alum Wycliffe Gordon and his jazz comboentertained guests with several compositions on theYLF theme of person-to-person dialogue and friend-ship.

This years honorees were selected for the excep-tional contribution their companies have made to the

U.S.-China relationship. Established in 1984, 3MChina Limited was the first wholly foreign-ownedenterprise in China outside the Shenzen SpecialEconomic Zone. Renowned for innovation, researchand development, 3M China employs more than 8,200people and has brought thousands of products andtechnologies to the people of China through customercenters in 27 cities and more than 40 laboratories. Inaddition, the companys exemplary corporate citizen-

ship, highlighted by 3Ms placement on Chinas Top10 Green Foreign Enterprises list for a fourth year ina row, has significantly benefited U.S.-China ties.

In 1981, PepsiCo was one of the first U.S.-basedcompanies to invest in China after the countrysreform and opening up, and PepsiCo has sincegrown to become one of the most successful food andbeverage companies there. For more than thirty years,it has distinguished itself through the development ofa diverse range of products to meet local tastes,including Mirinda, the top-selling flavored soft drinkin the country. PepsiCo was honored for its commit-

ment to innovation, stringent safety standards, localsourcing, sustainable agricultural practices and envi-ronmentally sound operations in China.

The Gala Dinner is an important source of incomefor the National Committees many programs andactivities. The Committee is grateful for the generousfinancial assistance from companies and individualsin support of its mission to foster productive andcooperative Sino-American relations. n

Helene Thulin, National Committee Chair Carla Hills,3M Chairman, President and CEO Inge Thulin andNational Committee President Stephen Orlins (l to r)

Chinese Ambassador to the United States ZhangYesuiwith PepsiCo Chairman and CEO Indra Nooyi


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The Public Intellectuals Program (PIP) nurtures a newgeneration of American China specialists who have the

potential to serve as leading public intellectuals. Each twoand a half year program helps twenty scholars and special-ists establish relationships with their academic peers andwith policy makers on both sides of the Pacific; deepen andbroaden their knowledge about Chinas politics, economics,and society; and use this knowledge to inform policy andpublic opinion. PIP includes meetings in Washington,D.C., focusing on the China policy community; a meetingin San Francisco to interact with specialists on the westcoast; trips to Greater China as a cohort; participation inNational Committee exchanges as scholar-escorts; and arequirement that fellows organize local public educationprograms. PIP Rounds I (2005-07), II (2008-10) and III

(2011-13) have been generously funded by The Henry LuceFoundation and The Starr Foundation.

The third round of the Public IntellectualsProgram is going into its final months and since lastreported on in this newsletter has included twofellows delegations to Greater China, a workshop inSan Francisco, several public outreach projectsconducted by fellows, gatherings at the March 2012and 2013 Association for Asian Studies annual meet-ings, the publication of numerous articles with theassistance of our PIP media coach, and a U.S.-China

relations refresher workshop for Rounds I and II ofPIP fellows. Some highlights from these activities arenoted below.

Public Intellectuals Program III

Fellows Trip to Mainland China and Taiwan

Each round of PIP includes two cohort trips to

Greater China for groups of about ten fellows each.The two-fold goal is to introduce these promisingChina specialists to people, places and institutionsthey might not otherwise meet and to provide timefor focused interaction and bonding among thefellows. The host organization in China is the ChinaForeign Affairs University. Dr. Thomas B. Gold, aNational Committee director, professor of sociologyat the University of California, Berkeley, and PIP advi-sory committee member, was the senior scholar-escortfor the July, 2012 Mainland/Taiwan trip and formerNational Committee president and director of theChina Studies Program at SAIS, David M. Lampton,served in that capacity on the June, 2013Mainland/Hong Kong trip. NCUSCR Vice President

Jan Berris and Director of Special Initiatives DanMurphy accompanied the first delegation and JanBerris, the second.

Both groups had fully-packed three-day programsin Beijing that included many of the same meetingsand people: at the Foreign Ministry (in 2012 with nowAmbassador to the United States and then ViceForeign Minister Cui Tiankai); officials at theAmerican Embassy; Kaiser Kuo, Baidus director ofinternational communication, on social media and the

Internet in China; Tong Lihua, Chinas leading legaladvocate for migrant workers; He Liliang, formerdiplomat and widow of Chinese foreign ministerHuang Hua, who provided her first-hand perspectiveon life as a revolutionary in Yanan and her later workas a senior diplomat at the United Nations; editorsand correspondents from various western mediaoutlets to hear their perspectives on reporting fromChina; the Beijing Urban Planning Museum with MaLiangwei, deputy director of the city planning depart-ment (and an NCUSCR Young Leaders Forummember); and Hanban, with its director, Xu Lin, andher senior deputies. Other long-time Committee

friends saw one or the other group: among these wereWu Qing, director of the Beijing CulturalDevelopment Center for Rural Women, an outspokenrepresentative of Haidian Districts PeoplesCongress, and longtime professor at Beijing ForeignStudies University; Tian Yuan, the founder of YabuliChina Entrepreneurs Forum and member of a 1984NCUSCR-hosted economic delegation; Lu Feng,

Engaging Next-Generation China Specialists

Dr. Tashi Rabgey speaking during a PIP fellowsvisit to the Liaoning China Youth Federation

continued on page 24


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Public Intellectuals Program Fellows 2011 - 2013

Dr. Gardner BovingdonAssociate Professor and Director of Graduate Studies,Central Eurasian Studies, Indiana University atBloomington

Dr. James CarterProfessor of History and Director, InternationalRelations Program, Saint Josephs University

Dr. Michael ChangAssociate Professor of Chinese History, Departmentof History and Art History, George Mason University

Dr. Martin DimitrovAssociate Professor of Political Science, Tulane

University

Dr. Taylor FravelAssociate Professor, Political Science and Member,Security Studies Program, Massachusetts Institute ofTechnology

Mr. Keith J. HandAssociate Professor of Law, University of CaliforniaHastings College of the Law

Dr. Yinan HeAssociate Professor, Whitehead School of Diplomacy,

Seton Hall University

Mr. Thomas KelloggProgram Officer, Open Society Institute and AdjunctProfessor of Law, Fordham University

Dr. Sabina KnightAssociate Professor, Chinese and ComparativeLiterature, Smith College

Dr. Joanna LewisAssistant Professor, Science Technology andInternational Affairs, Edmund A. Walsh School ofForeign Service, Georgetown University

Dr. Darrin MageeAssistant Professor, Environmental Studies, Hobartand William Smith Colleges

Mr. Carl MinznerProfessor, Fordham University School of Law

Dr. Tashi RabgeyResearch Professor of International Affairs, ElliottSchool of International Affairs, The GeorgeWashington University

Dr. Kay ShimizuAssistant Professor, Department of Political Science,Columbia University

Dr. Anthony J. SpiresAssistant Professor, Sociology, The ChineseUniversity of Hong Kong; Associate Director, Centrefor Civil Society Studies, The CUHK Hong Kong

Institute of Asia-Pacific Studies

Dr. Phillip StalleyAssistant Professor, Political Science, DePaulUniversity

Dr. Jessica TeetsAssistant Professor, Political Science, MiddleburyCollege

Dr. Janet TheissAssociate Professor, History and Director, AsiaCenter, University of Utah

Dr. Elanah UretskyAssistant Professor, Global Health, Anthropology,and International Affairs, The George WashingtonUniversity

Dr. Jessica WeissAssistant Professor, Department of Political Science,Yale University

Public Intellectuals Program fellows meeting in SanFrancisco

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NOTES

Each year since 2004, the National Committee hasselected a group of twelve Presidential Scholars (a designa-tion conferred annually upon 141 American graduatinghigh school seniors by the U.S. Department of Education)to participate in its annual U.S.-China Student LeadersExchange to China. In the spring of 2013, the NationalCommittee welcomed a delegation of outstanding Chinesehigh school students to the United States the third timesince the founding of the program for a reciprocal visitthat exposed these future leaders to a wide range of experi-ences and people.

Both directions of the exchange provide rare opportuni-ties for these students to learn about the other country andignite a passion and curiosity they often continue to explorein college and beyond. The April 2013 program for Chinese

students included stops in Boston, New York City,Washington, D.C., and North Sutton, New Hampshire; thetwo-week June-July 2013 American visit included Beijing,Xian, and Changsha. Both groups had the unique experi-ence of staying in local homes, providing an intimatewindow into life and culture in the host country.

The Student Leaders Exchange serves as a first steptoward ensuring that the next generation of Chinese andAmericans has a deep understanding of one another, andthe reflections from participants of the 2012 program,excerpted below, show the depth and impact of theirexperiences.

Kenan JiaXian, ChinaYale University

In April 2012, I was very lucky to participate in theStudent Leaders Exchange to the United States. Thetwo-week trip left me with warm, fun and inspiringpersonal memories that I really cherish. This amazingprogram provided me with great opportunities togain insights into two main aspects that really makeme think deeper about U.S.-China relations: the dailylives of typical Americans and the differences in ourrespective education systems, both at the high schooland college levels.

One of my favorite parts of this trip was stayingwith host families in each of the places we visited. InNew Hampshire, I stayed with a family with twokids: a boy my own age and his younger sister.During the three days I lived with them, I got a smalltaste of what family life in a small, beautiful, andpeaceful American town is like.

Importantly, I also got a glimpse of what its liketo grow up with a sibling. This is kind of a big deal to

Student Leaders Exchange

me and most of my contemporaries growing up inChina under a one-child policy: we have no idea whathaving a sibling feels like. When my American hostbrother went off to school in the morning, I spent timeat home with my little host sister, who loved to regaleme with stories about her and her brothers lives: howthey bathe their dog Angel together; how they bakecookies for the holidays together; and how her brotherteaches her to solve easy math problems.

Chinese kids, especially when theyre young, canbe very clingy with their parents. I feel that havingsiblings is part of what makes American kids moreindependent than Chinese kids, or at least morereliant on their siblings than their parents. Having asibling means more love and responsibility. I remem-

ber the way my 10-year-old New Hampshire hostsister talked to her younger cousins at the birthdaycelebration for their grandma; she was like a leader,telling them to present their gifts to grandma in turnto put the toys in order, and to help their parents washdishes after dinner. She told me her brother alwaystaught her to do these things and she just wanted tobe an influential adult like her brother.

Having a sibling makes children be aware of theinfluence of their actions on their sisters and brothersand thus start to act maturely earlier. Due to the one-child policy in China, Chinese parents are more likelyto spoil their kids by doing a lot of things for them

rather than letting them to try and be challenged,which in turn make children what we call in Chinesepop culture little emperors and little empressesof the family. My experiences with my dear host fami-lies let me feel the love and bonds among familymembers in American families. I still keep in touchwith these families now and I will certainly visit themsometime during my college years.

During the visit we also visited many differentschools and even attended classes, through which Igained a better understanding of the differencebetween the Chinese and American educational

systems. When we stayed with students attending theSt. Albans School, one of the best private high schoolsin the U.S., I attended my host siblings world historyseminar where students are encouraged to interactwith their teacher.

Students in that class surprised me most with theirbravery to challenge their teachers, standing up andexplicitly pointing out a loophole in a statement theteacher made. This behavior is unlike Chinese

Reflections by American and Chinese Students


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students who, most of the time, acknowledge theirteachers as the authorities with the correct answers.The relationship in the United States is perhaps morelike a friendship; students seem more at ease withtheir teachers and are more willing to challenge them.

But at the same time, what struck me the most was

the unruliness of the classroom: students seemed tosay whatever they wanted whenever they wanted to.Sometimes they chatted with each other or walkeddirectly out of classroom without notifying theteacher. This too is quite different from the situationin China, where students need to first raise theirhands and be called upon by the teacher; then theystand up to raise or answer a question. I feel thatChinese students are more respectful to their teachersthan American students. I think Chinese students andAmerican students may find a balance: respectingteachers but at the same time challenging them, theirauthority, if necessary.

Visiting Harvard was another fantastic experience.For two days, I was hosted by an econ major in her

junior year. On the night we arrived, we went outwith our hosts for dinner, and didnt get back to thedormitories until 3 a.m. What surprised me most wasthat no one in my hosts suite was asleep! My hostsister stayed up to prepare for an interview the next

day with Goldman Sachs and her suitemate was upwriting a research paper. Everyone seemed to bereally busy but at the same time very happy. I reallyenjoy talking to her about her college life: taking diffi-cult but rewarding classes, going to fun parties, andattending guest lectures.

The environment is quite different from college lifein China, where students may care more about theirGPAs in advanced calculus than attending a lectureby the founder of an NGO. Liberal arts educationoffers students more opportunities outside academicsfor them to explore what they are truly passionateabout and become a more versatile person.

I appreciate the opportunities and experiences thatSLE provided me. From a personal perspective, I feelthis is a great chance for me, a Chinese student withtraditional Chinese background, to experienceAmerican life and explore American culture in thewell-planned two-week trip. From a long-term

perspective, SLE is a significant platform for outstand-ing American and Chinese high school students, thefuture leaders, to communicate with each other andfind the opportunities and problems in U.S.-Chinarelations and further work on them when they growup. We may not contribute to this relationship rightafter the trip, but the influence SLE had on us is theincentive for us to be aware of the things we can do inthe future, and to enrich ourselves with a deeperunderstanding of China, the United States, and theirsignificant relationship. I hope more and morestudents can participate in this amazing program andmake a difference in U.S.-China relations.

Emma Townley-SmithAliso Viejo, CAStanford University

It was during the homestays with our Chinesefamilies that I felt the most hesitant to venture out ofmy comfort zone. My host mother in Changsha spokeabout as much English as I did Chinese, which, to begenerous, was not much. As I stared out the windowof their car, bringing me to their home for the firsttime, and watched the cranes, taxis, and omnipresentpoplar trees go by, my host sibling and mother talked,

and I understood nothing but my name weaving inand out of the conversation. I wasnt sure what theyknew about our schedule, or my allergies, and Ilonged for an opportunity to start the deep, cultural-exchange sort of conversations that I had perceived asbeing the most important part of the trip. As it was,we had a smartphone translator application and a fewnouns. After some short introductions, we ate dinnerKenan Jia learning firsthand about television produc-

tion at CCTV Americas Washington, D.C. studio continued on page 21


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The National Committees Policy Leaders OrientationProgram builds on the Scholar Orientation Program andthe Consular Orientation Program that the National ranfrom 1980 through the early 2000s. The revived version ofthe program occurs in two iterations: one for Chinese diplo-mats posted in the United States at the Chinese Embassy,Mission to the U.N., and the five Consulates General; andthe other for their counterparts who work at variousministry-level offices in Beijing.

A Policy Leaders Orientation Program delegationof officials based in China was scheduled to arrive inNorfolk, Virginia on October 28, 2012, the eveningbefore Hurricane Sandy was expected to make land-fall on the east coast. Flight cancellations and office

closures up and down the Eastern Seaboard forcedthe visit to be postponed, but on February 24, 2013,the delegation finally arrived in the States. Memberswere selected by the Chinese Peoples Institute forForeign Affairs, our Chinese partner on this and manyother programs, and hailed from government officesranging from the Ministry of Commerce to theMinistry of National Defense, the CentralOrganization Department, the National Developmentand Reform Commission, and the Industrial andCommercial Bank of China. This was the most seniordelegation we have received in the seven years of theprogram.

The program began in the historic Virginia sites ofWilliamsburg and Jamestown, followed by

Washington, D.C.; Lancaster, Harrisburg, andPhiladelphia, Pennsylvania; West Point and NewYork City. Activities in each location were designedto expose the delegation to diverse elements ofAmerican society and in many cases to connect themwith Americans both inside and outside their profes-sional network. Some of the many highlights aredescribed below.

Washington, D.C., featured meetings at severalgovernment offices, many of which gave the the dele-gation members a chance to interact with theircounterparts and discuss issues of mutual concernand areas for cooperation. The first meeting at theDepartment of Commerce with Nicole Melcher, direc-tor of the Office of China and Mongolia, was

particularly lively and candid, with discussion onU.S.-China trade matters and the potential tradeagenda during the second Obama administrationNational Committee member and former Commerceofficial Henry Levine joined the conversation tocontribute a perspective gleaned from his many yearsof work with American companies doing business inChina. A subsequent meeting at the CongressionalResearch Service with another Committee member,Susan Lawrence, specialist in Asian affairs, wasequally well-received. Ms. Lawrence briefed thegroup and fielded questions in Chinese about themethods by which members of Congress gain infor-

mation on certain issues, a meeting that severalmembers of the delegation wished were twice as long

Though the Washington itinerary was rich withengaging briefings and site visits, the stays in thehomes of D.C.-area residents was perhaps the experi-ence that left the most lasting impression. As has beenour tradition for all such programs, we askedmembers and friends of the National Committee toopen their homes to one or two delegation membersNot only were we delighted to have severalCommittee members agree to be hosts, but this yearwe had a number of new families, all of whom have

children attending the Yuying Public Charter School,which offers a Chinese language immersion programFor these families, the experience of having a memberof the delegation stay with them, share meals and sitaround at night talking provided their children anexciting opportunity to put their Chinese skills to useand practice with a native Chinese speaker. But itwasnt just the families that benefited; the home stayswere consistently cited by the Chinese visitors as an

The Policy Leaders Orientation delegation visited theBrandt family dairy farm in Annville, Pennsylvania

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Policy Leaders Orientation ProgramFor Chinese Officials


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invaluable experience and the most memorablewindow into American life they garnered on the trip.

Lancaster County provided the most eclectic daysof the itinerary. The group began a Sunday morningat St. Pauls Lutheran Church in Hummelstown,where the pastor and several members of the congre-

gation hosted a reception and informal conversationafter services. They quickly changed out of theirSunday best and traveled to Brandt-View Farm,where owner Dan Brandt showed the group aroundhis 120-plus head of dairy cattle farm that he and histwo sons run and talked about the challenges offamily farming. The final stop of the day was theheadquarters of the Pennsylvania National Guard atFort Indiantown Gap, where Adjutant GeneralWesley Craig briefed the group on the Guard, hispersonal history, and the concept of citizen-soldiers.When the group arrived in the meeting room with theMajor General, his aide remarked, with a grin on his

face, Smells like you were just on a farm. Takes meback home.

The following day included visits to U.S.Congressman Joe Pitts district office in Lancaster anda meeting with Pennsylvania State Senator MikeBrubaker at the Capitol in Harrisburg, which helpedthe delegation members better understand the inter-action between local and national political structures.All of the days activities, as well as the NationalGuard the day before, were arranged by the state anddistrict directors for U.S. Senator Pat Toomey andRepresentative Pitts, both of whom participated inNational Committee-organized delegations to China

for Senate and Congressional staffers.

A visit to the U.S. Military Academy at West Point

was another highlight, particularly the level of accessafforded the group thanks to the assistance of long-time Committee friend and member Sherwood(Woody) Goldberg, who had also hosted the groupfor an evening of dinner and music at his home inPhiladelphia. A former civilian aide to the secretaryof the army and former professor of international rela-tions at West Point, Woody helped arrange aroundtable discussion with international relationsprofessors and classroom visits for the delegationmembers to observe the cadets learning about anddebating the ethics of a just war. The Chinese wereimpressed by the candor of the students and their

thoughtfulness in the class discussion.Two highlights from the groups final stop in New

York City were a lively discussion with AssociateManaging Editor Larry Ingrassia at The New YorkTimes, and a bike tour through Central Park andManhattans west side on the groups last day in thecountry, led by Teachers Exchange Program alumRichard Sanford. It was a fitting end to a two weekexcursion that exposed the group to a wide range ofexperiences and people and helped provide a deeperfoundation of knowledge about this country on whichthey will draw in their future work. Two more Policy

Leaders Orientation Programs are scheduled for 2013,one for China-based officials and their diplomaticcounterparts posted in this country and another forofficials based in China. n

Jiang Xudong, CCP Central Committee OrganizationDepartment Division Chief, with social science andhistory teacher Ted Domers and students at FurnessHigh School in Philadelphia, Pennsylvania

Briefing on the role of the citizen soldier by by MajorGeneral Wesley E. Craig, Pennsylvania Army NationalGuard


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opportunity for informal discussions with municipal

officials at a dinner hosted by the Shanghai MunicipalPeoples Congress.

In Beijing, the delegation met with several seniorgovernment leaders responsible for the areas of mostinterest to the group. Vice Premier Wang Qishandiscussed the upcoming leadership transition and itsimpact on the U.S.-China relationship, along with hisnew role overseeing the anti-corruption movement;key foreign policy issues were covered in a meetingwith Foreign Minister Yang Jiechi and one with repre-sentatives of the National Peoples Congress ForeignAffairs Committee; Deputy Chief of the PeoplesLiberation Army General Staff Qi Jianguo gave anoverview of the PRCs military concerns; members ofthe Development Research Center of the State Councilfocused on economic issues, while a discussion at theRailway Ministry focused on domestic challenges aswell as external ones, such as the Chinese experiencein bidding for California high-speed rail projects.

There were very interesting meetings with friendsof the National Committee: C.H. Tung, former chiefexecutive of Hong Kong, who was in Beijing for aseries of meetings, discussed the leadership transition;Ma Jun, who founded and runs the influentialInstitute of Public and Environmental Affairs, talked

about his organizations goal of raising awareness,increasing transparency and providing informationand data on air and water pollution; and Linda Wong,an energetic real estate entrepreneur, briefed thegroup on her companys development.

The Congressmen also spent time with fellowAmericans. Ambassador Gary Locke and other seniorEmbassy officials provided a briefing, as didAmCham China and US-China Business Council offi-

cers and American corporate representatives as wellas several American Beijing-based journalists.

The delegation essentially had only one programday in Hong Kong, and it, too, was jam-packed, begin-ning with a breakfast meeting with AmChamdirectors for a discussion of economic and business

conditions in Hong Kong and Greater China; meet-ings with the financial secretary and the head of theHong Kong Monetary Authority, both of whichconcentrated on the internationalization of therenminbi, a subject of particular interest to the group;a luncheon with the deputy secretary for environmen-tal affairs; and culminating in a very interesting andin-depth discussion with C.Y. Leung, the chief execu-tive of Hong Kong. The groups farewell dinnerhosted by Victor Fung, vice chair of the China-U.SExchange Foundation, was held at the famous HongKong Jockey Club on the grounds of the HappyValley Racetrack.

The busy agenda of high-level meetings and wide-ranging discussions with a variety of people in thethree cities provided the Congressmen with insightsthat will inform their decision making and enhancetheir understanding of issues relating to the U.S.-China relationship.

Senate Staff Delegation to ChinaFor the last few years, the National Committee has

provided opportunities for staff members fromCongressional districts to visit China. FromDecember 5 to December 13, 2012, we took a biparti-san group of eleven Senate district office directors andsenior staff members to China, accompanied by ourPublic Intellectuals Program Fellow Janet Theiss, asso-ciate professor of history and director of the AsiaCenter at the University of Utah, and NationalCommittee Senior Director for Leadership Initiatives

Jonathan Lowet.The schedule, which was designed to introduce

the delegation members to Chinese politics, society,and culture, as well as to focus on particular issuesrelevant to their work, took the group to Beijing,Xishuangbanna, and Kunming, the latter two inYunnan Province, in southwest China.

In Beijing the focus was on Chinas domestic issuesand international relations, including the overall U.S.-China relationship, especially economic tiesMeetings were held with representatives from theMinistry of Foreign Affairs, the China PeoplesInstitute of Foreign Affairs and the China ReformForum. At a meeting with managing directors of theChina International Capital Corporation, the discus-sion centered on the challenges faced by Chinese

Sharon Garn, Deputy State Director for U.S. SenatorOrrin Hatch (R-UT) at Yunjinghong Primary School

Congressiional Delegationscontinued from page 6


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companies seeking to invest in the United States.Useful insights into Chinas media environment wereexplored at several places: with the internationaleditor Huang Shan and the editorial staff at CaixinMedia, a leader in financial and business news; withmultimedia expert Kaiser Kuo, prominent blogger,

musician, and director of international communica-tions at Baidu, Inc., Chinas leading web searchcompany; and at an informal meeting with severalAmerican journalists based in China. At the Instituteof Public and Environmental Affairs, the delegationreceived an informative overview of environmentalissues and the Institutes influential corporate pollu-tion monitoring program.

The delegation spent two days in XishuangbannaPrefecture learning about developing areas of China,regional administration, minority populations, andborder issues. Activities included a meeting with thegovernor of the Xishuangbanna Dai Nationality

Autonomous Prefecture, a visit to a Dai minorityvillage, and a trip to the China-Laos border.

In Kunming, the staffers received an overview ofthe work of NGOs in China in a round table meetingwith local leaders from Population ServicesInternational and The Nature Conservancy. They alsotoured a manufacturing facility and met with theleadership of a successful 20-year-old U.S.-China jointventure producing cellulose fiber used in filters, amodel of constructive business cooperation betweenthe two countries.

Briefing for Freshman Members of Congress &

Members of the U.S.-China Working GroupFor the fourth time in as many U.S. House election

cycles, the National Committee organized a dinner

discussion on critical issues in the U.S.-China relation-ship for newly elected members of the House ofRepresentatives and members of the CongressionalU.S.-China Working Group (USCWG). Our speakerfor the March 19, 2013, program was new boardmember and former ambassador to China, Jon M.

Huntsman, Jr. Fourteen members attended: six fresh-men, seven USCWG members, and one USCWGprospect.

Following brief remarks by USCWG co-chairsCharles Boustany (R, LA) and Rick Larsen (D, WA),Stephen Orlins and Governor Huntsman discussedcritical issues in the relationship. Governor Huntsmanoffered remarks about the new Chinese leadership,indicating that he thought President Xi Jinping couldbe Chinas most important reform leader since DengXiaoping. Concerned that the U.S. executive branchoften acts too timidly, not showing enough bold lead-ership to come up with a sound, comprehensive

strategy to deal with an emerging China, he suggestedthat Congress could blaze the trail, provided that itsparts and factions could avoid excessive partisanship.

During the Q&A, Members asked GovernorHuntsman a variety of questions, most of whchrevolved around Chinas rise and its ability to chal-lenge the United States. There were also questionsabout Chinas ability to keep its own house in order.(Is there a real estate bubble? What is the impact of thegrowing disparity between the Chinese haves andhave-nots? How far up in the Chinese governmentdoes corruption reach?) And there were questionsabout whether China truly poses a threat to U.S. secu-

rity.With his measured responses, Governor

Huntsman provided plenty of fodder for furtherthinking, and encouraged the attendees to supportCongressional initiatives that focus on the sizeablecommon interests in the bilateral relationship, insteadof the differences: actions that can enhance nearlynon-existent military-to-military relations; that canencourage the construction of basic cyber rules of theroad; and that can backstop a Chinese governmentlooking to reform its own state-owned sectors andincrease market access. He also suggested that

Congress do what it can to tackle visa issues, to allowmore Chinese to come to the United States morequickly and easily and thereby strengthen our busi-ness and tourist economies. n

Chinese Peoples Institute for Foreign Affairs (CPIFA)Vice President Zhang Ping speaks with MaryConnelly, State Director for Senate Majority LeaderHarry Reid (D-NV), at CPIFAs welcome banquet


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Since 1981, the National Committee has administeredstudy tours for educators in the United States and Chinaon behalf of the U.S. Department of Education and ChinasMinistry of Education, under a Memorandum ofUnderstanding signed by the two countries. These studytours provide valuable insights to senior educators andadministrators, who in turn enhance their schools, districtsand universities and colleges by helping to adapt andpromote successful innovations and best practices. The twomost recent study tours for Chinese educators, coveredbelow, focused on K-12 physical and arts education anduniversity international student services.

K-12 Physical and Arts Education Delegation

Despite high levels of academic achievement inChina, in the opinion of Chinese experts and officials,scholastic excellence has compromised health andfitness, with an increase in overweight children. Inaddition, China faces challenges in arts education;although instruction in music and visual arts isincluded in primary and middle school, the emphasisplaced on examination results for college-boundstudents has meant that the arts receive little attentionin many Chinese high schools.

In response to these trends, the NationalCommittee developed a study tour focusing on K-12physical and arts education for a seven-person dele-

gation that included officials from the ChineseMinistry of Education (MOE), representatives frommunicipal education departments, and an elementaryschool principal. The itinerary included Washington,D.C.; Austin, Texas; Los Angeles, California; and

Education Delegations

Portland, Oregon and ran from November 4 through16, 2012.

Meetings in Washington, D.C., provided anoverview of the U.S. education system and pre-colle-giate physical education and arts initiatives. Briefingswere provided by the Department of Education; theAmerican Alliance for Health and Physical Education,Recreation and Dance; the Afterschool Alliance,which focused on after-school programs at aWashington, D.C. arts center; and the Center onSchool, Family and Community Partnerships at JohnsHopkins University, where the group learned aboutthe practical application of research in educationpolicy, issues with implementation, and the use ofcommunity partnerships by teachers and administra-

tors.In Austin, the delegation attended an informative

round table discussion with the executive director ofthe Texas Music Association, the past president of theTexas Educational Theater Association, and the exec-utive director of the Texas State Organization on Artsand Disability. They also visited two high schools anda middle school, where they observed programs inart, music, physical education and after school activi-ties, including a bilingual school play.

The delegation members were keenly interested inlearning about the integration of facilities design andconstruction in academic planning through a visit to

the recently built Playa Vista Elementary School inLos Angeles with representatives of the OsbornArchitecture Company, the schools designer. Thisafforded a first-hand look at and explanation ofdesign features, new technology, environmentalmeasures, safety codes, and general dimensions of theschool infrastructure.

Through an introduction by 2011-2012 TeachersExchange Program (TEP) participant Iraise Garcia, thedelegation went to Jefferson Middle School in LosAngeles. They met with the principal and facultymembers, learned about the schools 90 percentminority population, and discussed areas such ascurriculum design and how cooperative support bythe Parent Teachers Association and a local commu-nity-based foundation supplements the educationprocess. In Portland, the following day, the group metwith another TEP alum, Kevin Crotchett, principal ofArleta School, who also offered useful insights on theU.S. and Chinese education systems informed by hisyear of teaching in China.

International Student Services, Arts & Physical Education

Gao Jun with an Arleta School student in Portland,Oregon


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International Student Services DelegationTo support Chinas development of effective serv-

ices for international students, particularly in light ofthe 100,000 Strong Educational Exchange Initiative, aproject to increase the number of American studentsstudying in China, the National Committee

welcomed a delegation of twelve Chinese universityadministrators, provincial Department of Educationofficers and international education specialists toWashington, D.C., Louisville, Phoenix, and Seattlefrom January 20 to February 2, 2013.

In Washington, D.C., meetings at the U.S.Department of Education, the Institute ofInternational Education (IIE), the College Board, andthe International Student Exchange Programprovided a full overview of the U.S. education systemwith supplemental information on exchangeprograms. Discussions at IIE provided an overviewof trends in Chinese students at American institu-

tions, steps being taken to promote the 100,000 StrongInitiative, and challenges that U.S. institutions havemet in the creation of branch campuses and partner-ships in China.

Discussions at the University of Kentucky inLexington and the University of Louisville exploredadmissions, financial aid, internships, ESL training,and the integration of international students intocampus life. The Louisville visit also included severalopportunities for our Chinese visitors to learn aboutAmerica through prisms other than education: Theywent to two museums, the Portland History Museumand the Asia Institute-Crane House.

The highlight of Louisville was meeting KatyChristopherson, long-time National Committee direc-tor and former secretary. She and a friend of herswelcomed the delegation members into their apart-ments in the retirement home where they both live.They discussed retirement benefits, the cost of livingfor retirees, and the range of services available to resi-dents of retirement homes. Additionally a friend ofKatys invited the entire delegation to her home fordinner along with several prominent local citizens.

The delegations three days in Phoenix includedvisits to a skills center and two campuses within the

Maricopa Community College system that gave thegroup an appreciation for the value of communitycolleges, and provided insights into issues of credittransfer, diversity, continuing education, and work-force development. The delegation was particularlyinterested in the process of assigning credit for lifeexperience. Meetings at Arizona State Universityincluded a long discussion of the universitys over-seas programs and initiatives to integrate foreign

students (including nearly 1,000 from China) into thecampus community, such as creating student associ-ations, social clubs, and a buddy system. A meetingat the Thunderbird School of Global Management alsoprovided an overview of admissions criteria, theschools full-immersion study abroad program(including programs in Shanghai and Beijing), and aninternational women entrepreneurs program.

In Seattle, the group was very interested in theChief Sealth International High School, which has

partnerships with schools in other countries thatinclude student and faculty exchanges: serendipi-tously this included seven Chinese teachers who arecurrently at the school for the academic year andcould talk personally about the advantages of theprogram.

A highlight of the time in Seattle was a visit to OneWorld Now (OWN), a small NGO focusing on highschool exchanges. The executive director, who hadlived in China, briefed the group on OWNs programsin Chinese, and introduced a 21-year-old Eritrean-American alumnus of the program who dazzled the

delegation with a fifteen-minute presentation in fluentMandarin on his experiences with the program in ahigh school in Heilongjiang Province.

The most recent education delegation completed aU.S. visit in April 2013 and the next is scheduled forthe fall of 2013. n

The International Student Services Delegation visitingthe Asia Institute Crane House in Louisville


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Rule of Law & Human Rights DialogueTo promote the exchange of ideas on the rule of

law and human rights issues in the United States andChina, the National Committee has partnered withthe China Foundation for Human RightsDevelopment to conduct an annual Sino-AmericanDialogue on the Rule of Law and Human Rights. Themost recent meeting of the dialogue, which has beenheld in both China and the United States since 2009,took place December 3-5, 2012, in Haikou, HainanProvince.

The dialogue fosters candid discussion amongexperts from the American and Chinese governments.These include representatives from Chinas NationalPeoples Congress, State Council, Supreme Peoples

Court, Supreme Peoples Procuratorate, and Ministryof Justice and from the U.S. federal judiciary, thedepartments of commerce and justice, academia andthe legal field, who gather to discuss developments inareas of law that affect human rights. The expertsbring multiple institutional perspectives to the topicsunder consideration, adding greater focus and depthto the discussions.

Topics discussed at the December meetingincluded open government and public access to infor-mation about government officials; law enforcement,rule of law, police detention and re-education throughlabor; the role of judges and courts, focusing on the

role of judges in balancing power among police, pros-ecutors and defense, as well as media and publicopinion; and the role of lawyers and impact of the

Track II Dialogues

new criminal procedure law, effective January 1, 2013This was the fourth such meeting. While the

discussions are often difficult, we are very pleasedthat they generate much greater mutual understand-ing and respect among participants, and enableprominent experts from both countries to reflect ontheir own legal practices and consider alternateapproaches to addressing issues in legal reform.

The National Committee is grateful to The StarrFoundation for its ongoing and generous support ofthe dialogue.

U.S.-China Dialogue onEast and South China Seas Issues

As part of its mission to promote high-level

constructive dialogue on critical and emerging topics,the National Committee partnered with the U.S.-AsiaLaw Institute at New York University School of Lawto conduct the U.S.-China Informal Dialogue on Eastand South China Seas Issues October 15-16, 2012, inNew York City. The dialogue brought togetherAmerican and Chinese legal experts to explore issuessurrounding Chinas maritime disputes and assesstheir impact on Chinas relationships with its neigh-bors and the United States.

The delegation of Chinese legal experts, led by GaoFeng, legal counsel of the Department of Treaty andLaw at the Ministry of Foreign Affairs (MOFA),

included representatives from the State OceanicAdministration, Shanghai Maritime University andDepartment of Boundary and Oceanic Affairs at

Human Rights & Rule of Law and East & South China Seas

Participants of the fourth annual dialogue on rule of law and human rights in Haikou, Hainan Province


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MOFA. The American side was chaired by NationalCommittee President Stephen Orlins and includedCommittee director Jerome Cohen, professor of lawand founder and co-director of the U.S.-Asia Law

Institute at New York University School of Law, alongwith representatives from the U.S. Naval War Collegeand a former member of the Office of the LegalAdvisor in the U.S. Department of State.

Discussions centered on territorial sovereigntyand maritime jurisdiction in the East and South ChinaSeas. The meetings gave all of the participants agreater understanding of the motivations of the manyplayers involved in these issues, provided insightsthat can help inform decision-making on both sidesand served as an opportunity to hear a clear articula-tion of Chinas legal claims in these regions.

The National Committee is grateful to The StarrFoundation for funding the dialogue. n

National Committee Director Jerome Cohen, Founderand Co-Director of the U.S.-Asia Law Institute at NewYork University Law School with Gao Feng, LegalCounsel of the Department of Treaty and Law,

Ministry of Foreign Affairs, at the U.S.-ChinaDialogue on East and South China Seas Issues

________________________________

_________________________________________________________________________________________

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CHINA Town HallLocal Connections, National Reflections

CHINATown Hallnationalreflectionsspeaker

AmbassadorGary Locke

Public understanding of the Sino-American rela-tionship is essential to the development of sound U.S.policies that serve our countrys interests andpromote cooperation on critical issues such as climatechange, energy security, economic stability and publichealth. To help educate Americans about the realitiesof their countrys complex relationship with China,the National Committee conducted the sixth annualnationwide CHINA Town Hall: Local Connections,National Reflections, on October 29, 2012. U.S.Ambassador to China Gary Locke was the featuredspeaker.

The program, scheduled to be held in sixty loca-tions, featured a live webcast from Beijing withAmbassador Locke in conversation with National

Committee President Stephen Orlins. The formatoffered the opportunity for the national audience tosubmit questions to the Ambassador. The programalso included leading specialists on-site at each of thevenues to discuss issues of importance to the localcommunity and answer questions from the audience.Unfortunately, Hurricane Sandy struck the EasternSeaboard the night of the program, forcing 22 venuesfrom Virginia to Maine to cancel their local programs;38 programs went forward, including one in Beijing.CHINA Town Hall is a rare opportunity forAmericans around the country to join an informedand balanced discussion on the U.S. relationship with

China and learn about its connections with their ownlives. Ambassador Lockes presentation and Q&A areavailable on the National Committees web site

China Town Hall 2013 is scheduled for October 28and will feature National Committee director andformer Secretary of State Madeleine K. Albright.

The National Committee is grateful to the localhost organizations, Ambassador Locke and the expertspeakers upon whom we depend for the program-matic content, as well as to The Starr Foundation formaking CHINA Town Hall possible. n


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Members of the American Armed Forces whose workinvolves China are highly informed about the intricacies

and nuances of our bilateral security relationship.However, there are often few opportunities for them to gaina broader understanding of China outside the militarysector its history, culture, politics, economics and devel-opment. To address this gap, the National Committee hasbeen running a series of programs for the various servicesover the past five years. The most recent in this series weretwo programs, one in Washington, D.C. and the other inHonolulu.

The National Committee convened its secondseminar for U.S. Navy officers in October 2012. (Thefirst was held in September of 2007.) Fourteen men

and women, with a wide range in rank and China-experience met for 15 sessions over four days ontopics as diverse as Chinas economic policies, minor-ity relations, resource development, the rule of law,leadership politics, and innovation initiatives. Theslate of presenters comprised a veritable whos whoof China scholars, including several NationalCommittee Board members and fellows in theCommittees Public Intellectuals Program.

Each session was conducted informally andincluded ample time for discussion between thepresenters and Navy officers. The participantsbrought their considerable knowledge and experience

in military-to-military relations to bear on the discus-sions, which enhanced the quality of questions anddepth of material covered.

One evaluation from the program read, This was

a turning point professionally. This seminar gave mea greater understanding of China and its issues,

whether political, historical, environmental, resource-based, or cultural. This better understanding willhopefully translate into a more informed perspectivenot only shaping my own analysis, but also that of theOffice of Navy Intelligence. Another stated, anextraordinary group of lecturers, the likes of which Ihave not encountered anywhere in the internationalpolicy realm.

Having heard about this series of very successfulseminars, the office of the commander of the U.SPacific Command contacted the National Committeeabout organizing a similar briefing for its senior offi-cers in Hawaii. This was done February 12 15, 2013

Given the expense in transporting all fifteen special-ists to Honolulu, we put together a three-day programthat entailed six China scholars going to Honololu andsix others participating via videoconference, allowingthe participants to learn from and interact with a widerange of experts on the non-security elements of therelationship. A special half-day session was arrangedfor Admiral Samuel Locklear, comander of the PacificCommand, and sixty of his most senior staff, includ-ing the component commander of each of the services,the Admirals subordinate commanders and flag offe-icers holding key positions in either planning oroperations throughout PACOM.

National Committee vice chair and former U.S.ambassador to China J. Stapleton Roy also delivereda lecture on current trends in U.S.-China relations ata public program co-sponsored by the East-WestCenter in Honolulu.

The NCUSCR plans to expand its programmingfor the Armed Forces to continue providing theseunique opportunities to better equip our nations mili-tary to manage the complex and nuanced U.S.-Chinarelationship.n

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U.S. Navy China BriefingsEducating Senior Officers About the U.S.-China Relationship

Henry Levine, senior director, Albright StonebridgeGroup (center) and National Committee DirectorNicholas Lardy, senior fellow at the Peterson Institutefor International Economics (right) with an officer atthe Washington, D.C. briefing


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in near silence, because we had already exhausted ourlimited vocabulary in each others languages. Iworried about all the ways in which I might offendthem without knowing what I said, what I didntsay, or the way I excused myself from the table. Mostof all, I braced myself for disappointment, because I

concluded that no real cultural exchange could comefrom a situation where we couldnt even comment onour differences in experience.

Fortunately, connecting with people doesnt haveto be about sharing words. There can be a certainkindness and intimacy in feeding the turtles together,or in sharing an umbrella in an unexpected rain. Weput much emphasis on language and culture as ourprimary means of understanding each other, and Iwrongly assumed that the disparity between uswould leave us staring at each other blankly for thethree days we shared. Forced to adapt, I learned toopen myself to this community that welcomed me so

kindly into their home, and into their country. Iprepared dishes with my family, joined them for awalk by the river and played piano duets with theirdaughter. In the evening, I had tea with my hostmother, and though she could not explain the tradi-tion in English, she poured tea over clay sculptures ofanimals and people and let the steam rise around us.For you, she said, and added a bird to the Buddha,frog, and person bathed in chamomile. On a field tripto the Yuelu Academy, a local woman saw how muchI enjoyed playing with children, and gave me herbaby boy to hold, reassuring him that I was anotherone of his sisters. We explored the renowned acad-

emy, learning about the Confucian principles thatinfluenced its development, and I got as much frominteracting with locals as I did from listening to theSong dynasty history lectures of our tour guide. Onthe last night, as my host mother and I watched shirtsdance on clotheslines from the fourteenth floor

window of the high-rise, I marveled at just how muchat home I could feel on the other side of the world.

In Beijing, as representatives of top Americanstudents, we met with Chinese government officialsin ministries analogous to the U.S. Departments ofState and Education. We were able to discuss the

issues of U.S.-China exchange students, North Koreanpolicy, education for migrant children, and pollutionand environmental challenges, among others.Regardless of our own political views, listening to thefull rationale behind some domestic and foreign poli-cies helped explain their necessity in the eyes of theChinese government. Understanding more about theinternal challenges that China faces and the percep-tion of this growing world power from the insidehelped us to understand the logic behind currentpolicy and, as in America, the slow and steady pathto betterment that is aided by people like us.

I think everyone is skeptical at some level when

told that a mere two-week trip will change their lives.I assumed that I would learn a little more about inter-national relations, pocket a few stories to tell myfamily and friends, and take some pictures on theGreat Wall. The Student Leaders Exchange was somuch more than that. No history textbook can quiteexplain the hum of a dozen traditional Chinese yo-yoson a Saturday morning, the cascade of camera flashesin Tiananmen Square after dark, or the quiet rever-ence with which some Chinese tourists wait, for hourson end, for a glimpse of the face of Mao Zedong in hismausoleum. The trip piqued my interests in politics,cultural studies, and the Chinese language in ways I

never could have anticipated.In its way, SLE impacts more than just a handful

of American students and Chinese families. Thestudents of both nations bring home fresh perspec-tives on our international relationship, which isshared in their families, classrooms, and communities.The trip may inspire them to keep in touch, form part-nerships, seek internships, and find opportunities tobuild upon the connections that SLE helped establish.Several students who participated in our exchangethis year expressed a desire to return to China duringcollege, study Mandarin, or volunteer in educational

programs that would help spread in the United Statesthe insights we gained during our travels. On thewhole, SLE is setting the stage for hundreds of small,person-to-person connections to grow into the strongand vital international partnerships that will be influ-encing our countries in years to come. n

Student Leaders Exchangecontinued from page 11

Emma Townley-Smith with host sister in Changsha


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NOTES

its infrastructure and educational system, reduceprojected increases in health care spending and putits entitlement outlays on a sustainable path as it seeksto reduce unemployment. These will help to createrobust growth on a sustainable basis.

The dialogue discussed the respective concernsChina and the United States have for the other coun-

try in the economic arena, the needed reforms toaddress these concerns and recommendations forcollaborative efforts to improve the trust between thetwo countries.

American Concerns About andSuggested Reforms for China

From a U.S. perspective, China appears to haveslowed the pace of reform in recent years. The criticalshift toward reliance on market forces has graduallylost steam. That is seen in the continued state controlof interest rates, energy prices, and the exchange rateas well as the continuing presence of state-controlled

monopolies, the lack of transparency and lack of intel-lectual property protection. Increasing disclosure andtransparency will be critical to make the market forprivate securities function effectively as a capital allo-cation mechanism. Thus required reforms includeliberalization of factor markets (for capital and labor)as well as liberalization of entry into sectors wherestate-owned firms have extensive market power. Inaddition, to make the system robust, China needs adeposit insurance scheme that can sustain confidencein a liberalized banking system. Expedite Interest Rate Liberalization: Interest rateliberalization in China, which began in the late 1990s

but slowed substantially after 2004, should resumeand accelerate. The next round of reform should focuson liberalization of medium- and long-term bankdeposit rates and later short-term deposit rates aswell. Likely this will lead to higher rates, whichwould increase household income and thuscontribute to increased consumption expenditure, akey objective of the governments rebalancing policy.Banks undoubtedly would pass on in part theirhigher cost of funds and this would tend to reduceChinas extraordinarily high rate of investment.Liberalization of interest rates should also include the

corporate bond market, which would lead to thedevelopment of a yield curve that would improve theallocation of capital. Market-Determined Value of Currency: In orderfor the value of its currency to become even moremarket determined, China should further reduce itsintervention in the foreign currency market and allowgreater flexibility of the exchange rate. Hukou Reform: China should consider acceleratingthe reform of its household registration (hukou)

system. This liberalization of the labor market wouldlead to a more efficient allocation of labor and helpreduce income inequality, a major concern not only ofChinas citizens but its leadership as well. State Sector Reform: Chinas private businesseshave become an important source of Chinaseconomic growth but their contribution would be

further enhanced by reducing barriers to entry insectors where state-owned firms exercise monopolypower and by improving private firm access to capi-tal. These reforms will allow private firms to competeon a level playing field with state companies anddrive innovation in Chinas next wave of growth. One-Child Policy Reform: China also needs toreform its one-child policy given the potentially gravepopulation aging issue and the related health care andwelfare problems.

Chinese Concerns About and Suggested Reformsfor the United States

There are four key areas of policy concern: fiscal,monetary, trade, and bilateral relations with China. Fiscal Sustainability: The fiscal situation in theUnited States continues to deteriorate with no agree-ment on spending cuts. The U.S. Administration andthe Congress need to compromise on a long-term planfor expenditures and outlays that restores the sustain-ability of the federal debt path and ends the periodiccrises that result from policy stalemate. Federal Reserves Quantitative Easing (QE): TheFed has conducted three rounds of QE. While there isconsiderable doubt that QE has done much to spuroutput growth or job creation, repeated rounds of QE

introduce distortions into the U.S. and globaleconomies by injecting excessive liquidity that placesupward pressures on commodity prices and, as aresult, price levels in emerging economies. The FedsQE policies also risk the creation of new asset bubblesthat will lead to future disruptions. Protectionism: Rising protectionism in the UnitedStates is evidenced by the number of anti-dumpingcases against Chinese companies. Some of the puni-tive actions adopted by the U.S. government havetriggered retaliatory actions by the Chinese govern-ment. Although the volume of trade involved has

been relatively small, this exchange of punitiveactions influences public opinion in both countriesand is detrimental to building mutual trust. Free tradehas been one of the key elements of American successand one of the cornerstones of American foreignpolicy. The U.S. government should put up a strongfirewall between its trade policy and populistdemands, so that trade continues to serve the coun-trys long-term interests. Hedging on China: Before the financial crisis, the

Economic Dialogue Consensus - continued from page 4


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U.S. foreign policy toward China was one of engage-ment. Since 2010, however, this policy has beenincreasingly replaced by one of caution and hedging.China and the United States have different politicalsystems; but history shows that this need not andshould not be an obstacle for the two countries toimprove their relations. While the U.S. caution is most

evident in the political and security arena, the shiftalso affects the U.S. economic policy toward China.One example is the Trans-Pacific Partnership (TPP)proposal. This proposal for free trade sets standardsfor membership that China will not be able to meetover the medium term, but its impact on theeconomies of the Pacific region will be severelylimited if China is excluded. Another example is theU.S. governments tighter security check on Chineseacquisitions and greenfield investment in the UnitedStates. The earlier U.S. engagement policy broughtpositive changes in China that are in the U.S. interest.The U.S. government needs a policy toward China

that is based on coexistence and cooperation. Reform of the Financial Sector: The United Statesshould strive to further enhance real reform of thefinancial sector, expand/revive its tradable sector andreduce external imbalance in order for its economicrecovery to continue.

Building Mutual Trust throughCollaborative Efforts

Trust between the United States and China hasbeen faltering in the strategic and economic arenas.This dialogue has identified the following areas ofpossible collaborative efforts between the two coun-tries that are not only mutually beneficialeconomically, but would also help rebuild trust. Open Trade Environment: Both countries benefitfrom an open trade environment and therefore bothgovernments should institute an open trade regimethat allows for natural resources to move back andforth with fewer restrictions. The promotion of bilat-eral energy trade can be a fruitful foundation forcooperative policy making. Bilateral Investment Treaty (BIT): Chinese invest-ment in the United States is increasing rapidly whileU.S. investment in China should increase as China

implements its 12th Five Year Plan and moves to aconsumption-driven economy. Increased investmentcreates jobs, helps both economies and strengthensUS-China relations. Both the process of negotiatingand the actual establishment of a BIT would facilitateinvestment, so joint efforts to move towards a BITshould be a high priority in both countries. In theinterim, each country should appoint a publicombudsman to help resolve investment problems thatthe other countrys investors encounter.

Free Trade Agreement (FTA): A free trade agree-ment between the United States and China willrequire many years to negotiate and build politicalsupport to ensure approval. Nonetheless, commence-ment of negotiations on an FTA would symbolizeboth countries desire to build an even more mutuallybeneficial economic relationship. In addition, the

discussions would help China anticipate what domes-tic economic reforms it would need to undertake toconclude an FTA. The same discussions would allowthe United States to understand Chinese concernsabout impediments for deepening entry into theAmerican markets. Restructure the Strategic and Economic Dialogue:The two governments need to revitalize the structureof bilateral economic dialogues away from the large-scale media event that the Strategic and EconomicDialogue has become and return to smaller, morefrequent (at least twice a year) gatherings where topleaders from both countries devote at least two days

to the economic issues at each meeting. Groups of 10-12 persons on each side will accomplish more than the200 participants on each side that have met in the past.In addition to leading discussions on the importantissues, this more focused process will foster strongworking relationships that build trust over time. Protection of Intellectual Property Rights (IPR):China needs to enhance its protection of intellectualproperty, both to foster continued foreign investmentand to promote domestic innovation. Foreigners willinvest in and export more advanced technologieswhen they have confidence that those technologieswill be protected. A stronger IPR regime also is impor-tant for China because domestic entrepreneurs willneed the same protections as the economy shiftstoward services and away from manufacturing. Chinacan build on its progress in IPR protection that hasencouraged domestic companies to use IPR lawsuitsto secure their interests. There is ample room forimprovement. For example, both sides of thisdialogue acknowledge that the Chinese governmentshould implement more vigorous enforcement of theintellectual property laws. One way to expedite thisproce

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Notes: Newsletter of the National Committee on U.S.-China Relations, Summer 2013

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