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Week of November 3, 2000

Week of July 6, 2001

The U.S. and China This Week

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DOMESTIC: Chinese Entrepreneurs Can Join Communist Party

SUMMARY: (7/2/01) Chinese President Jiang Zemin announced in a speech commemorating the 80th anniversary of the Chinese Communist Party (CCP) that private businessmen could join the Party. According to CCP estimates, 113,000 Party members currently run businesses, which most created after joining the Party.  Whether or not to allow businessmen to join the Party has been debated vigorously within the CCP in the past year, a senior theoretician indicated. Under Mao Zedong, certain “red capitalists?were protected, but few of them were permitted to become Communist Party members.

The Party banned businessmen from joining after the Tiananmen Square incident of June 1989. The theoretician said the ban occurred because the leaders of private companies were seen as “exploiters? and their employees as being taken advantage of. Private businessmen also played a large role in the latter stages of the Tiananmen incident, organizing motor cycle-riding entrepreneurs who informed leading protesters of the movements of the military.

“This is a path-breaking speech in redefining the role of the party and its relationship to the rest of society,?commented Dali Yang, a political science professor at the University of Chicago. “It will be seen as a fundamental document setting the tone for rebuilding the party.?#060;/font>

Yang said the CCP could prolong its dominance for a long time if it could “accommodate the best and brightest and most economically influential and at the same time curb corruption??But Lin Yanzhi, deputy secretary of Jilin province and the son of a revolutionary leader, wrote in the Pursuit of Truth magazine, “If these people really join the party they will use their strength to first seize power within the party and then to change the party’s nature.?#060;/font>

Private firms make up more than 20 percent of China’s $1 trillion gross domestic product. The Party reform package maintains that the Party, made up of 64.5 million members, should be representative of all walks of life in China, not just the proletariat.

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INTERNATIONAL: North Korean Asylum Seekers Allowed Into South Korea

SUMMARY:  (6/30/01) The seven members of an extended family that showed up in a United Nations office in Beijing have left China and have been
granted entry into South Korea, where they are seeking asylum. “China had no objection to their departure,?said Colin Mitchell, chief representative of the
U.N. High Commissioner for Refugees in Beijing. The family left China June 29 and went to Singapore before arriving in South Korea June 30 to lessen the
embarrassment for the North Koreans. They also spent a night in transit in the Philippines, which refused to formally admit them into the country out of
deference to North Korea.

China has an agreement with North Korea to send back North Korean refugees. It is estimated that between 150,000-300,000 such individuals reside in
China and Mongolia. They get help from Chinese Koreans as well as clandestine South Korean aid agencies. In January 2000, China angered the U.N. by
returning seven North Koreans to their native country even after the U.N. deemed them refugees. China said the North Koreans were economic migrants. It
has also returned thousands of other North Koreans on those grounds.

The seven refugees now in South Korea had been living underground in China since 1999.  A Japanese journalist said there were 10 others in the group
originally. Some went to Mongolia, the whereabouts of a few more are unknown, and one couple was sent back to North Korea by China. China let the
seven family members leave on humanitarian grounds after intense talks with the U.N. High Commissioner for Refugees.

North Korea lambasted the U.N. for its handling of the refugees. “The UNHCR official illegally dealt with the issue ?beyond its authority, (and) thus laid
obstacles in the process of inter-Korean reconciliation,?the government said in a statement communicated by the official Korean Central News Agency.

South Korean political parties welcomed the family into the country. The main opposition Grand National Party released a statement calling on the
government to help escaping North Koreans to live in South Korea.

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DOMESTIC: Dispute Arises Over Death of Falun Gong Prisoners

SUMMARY: U.S. Secretary of State Colin Powell and Chinese Foreign Minister Tang Jiaxuan agreed over the phone to strengthen U.S.-China ties June 28,
according to Xinhua news agency. The official agency reported Tang invited Powell to visit China following an ASEAN Regional Forum meeting in Hanoi,
Vietnam at the end of July.

Tang reportedly told Powell he was glad U.S.-China relations “have seen improvement recently after experiencing difficulties? he was most likely referring
to the controversy over the April 1 collision of the U.S. EP-3E spy plane with the Chinese F-8 fighter jet. China detained the crew of the damaged
American plane for 11 days before releasing them after the U.S. expressed regret over the loss of the life of the Chinese pilot, the loss of the Chinese plane
and the fact that the Americans landed in China without permission.

Tang also was said to have told Powell that China was readying for October’s meeting between Chinese President Jiang Zemin and U.S. President George
W. Bush when Bush visits China in October. Bush will attend the Asia-Pacific Economic Cooperation (APEC) annual informal meeting of leaders in
Shanghai and then visit Beijing. Tang and Powell also were said to have discussed Iraq. No date has been set for Powell’s trip to China.

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