Chinese Journal of International Law-2002-Qiang-328-86.pdf

Chinese Practice in International Law: 2001

CHENQiang&HUQian**

I. International Peace and SecurityII. Territorial IssuesIII. China and International OrganizationsIV. JurisdictionV. Law of the SeaVI. Human RightsVII. International Economic Law

I. International Peace and Security

LA. China's Principal Position Against International Terrorism

On September 25, 2001, China released a Position Paper AgainstInternational Terrorism. From this paper and various other officialstatements made by China against international terrorism, one cansummarize the principal position of China as follows:

China condemns and opposes all forms of terrorist violence. Terrorism isa major threat to world peace and stability. It has become a seriouscommon danger to the international community. China supports tostrengthen international cooperation at all levels and establish an

Note by the Editors: This survey is provided only for information. The readers areadvised to consult the official documents themselves in dieir research.Peking University Law School. Parts I, II, IV and V were completed by HU Qian,Parts III, VI and VII by CHEN Qiang.See China's Position Paper Against International Terrorism (Sept. 25, 2001), at<http://www.fmprc.gov.cn/eng/18635.html>.Chinese President Jiang Zemin and Foreign Minister Tang Jiaxuan of China senttelegraphs to President Bush and Secretary of State Powell respectively, expressingprofound sympathy with the American government and people as well ascondolences to the bereaved families. See Statements by Foreign Ministryspokesperson Zhu Bangzao, <http://vvww.fmprc.gov.cn/eng/17827.html>; byForeign Minister Tang, <http://www.fmprc.gov.cn/eng/17826.html>; byAmbassador Wang Yingfan, Permanent Representative of China to the UN at theSecurity Council, <http://un.frnprc.gov.cn/eng/21699.html>. The position of theChinese Government against terrorism was reiterated again on September 20, seeForeign Ministry Spokesman's Press Conference (Sept. 20, 2001), at<http://www.fmprc.gov.cn/eng/18281.html>.

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Chen & Hu, Chinese Practice in International Law 329

international anti-terrorism mechanism under the auspices of the UnitedNations in accordance with the Charter of the United Nations, relevantSecurity Council resolutions, all conventions against internationalterrorism as well as documents adopted by the UN General Assembly inthis regard. China emphasizes that the United Nations and its SecurityCouncil should play a leading role in the fight against terrorism. At thesame time, the fight against terrorism should have concrete evidence andspecific targets, and avoid harming innocent civilians. It should alsoabide by the purposes and principles of the UN Charter and therecognized norms of international law. All actions should be conduciveto the long-term interests of safeguarding world peace and development.

I.B. The Comments of China on the Military Action in Afghanistan outside the Framework

of UN

On September 11, 2001, New York City and Washington D.C. cameunder severe attacks. On September 19 and 20, when the military action ofthe US was still only a hypothesis, the Chinese Foreign Ministry spokesmanmainly made three points as to the prospective military action taken by the USin Afghanistan outside the framework of the UN. First, China opposes all sortsof terrorism and supports attacks on terrorists. Secondly, the attacks onterrorists should be built upon valid evidence. The action should have cleartargets, without harming innocent civilians. Thirdly, it should follow the UNCharter and help strengthen the role of the UN and its Security Council.China is ready to discuss any proposals at the Security Council that will beconducive to the fight against terrorism.

After the US and UK took military action against Afghanistan onOctober 8 (Beijing Time), a similar position was repeated.4 In addition, Chinastated that Afghanistan's sovereignty and territorial integrity should besafeguarded; that it would be up to the Afghans themselves to independentlycome up with a solution to their problems; that the future government of

See Chinese Ministry of Foreign Affairs Press Release on Foreign Ministry RegularPress Conference by Spokesman Zhu Bangzao (Sept. 18, 2001), at<http://www.fmprc.gov.cn/eng/18183.html> and Chinese Ministry of ForeignAffairs Press Release on Foreign Ministry Spokesman's Press Conference (Sept. 20,2001), at <http://www.fmprc.gov.cn/eng/18281.html>.See Foreign Minister Spokesman on US Military Strike on Targets in Afghanistan(Oct. 8, 2001), at <http://www.fmprc.gov.cn/eng/18768.html>; Foreign MinistrySpokesman Sun Yuxi Gives a Press Conference (Oct. 9, 2001), at<http://www.fmprc.gov.cn/eng/18774.html>; Chinese Ministry of Foreign AffairsPress Release on Foreign Ministry Spokesman's Press Conference (Nov. 27, 2001),at <http://www.fmprc.gov.cn/eng/21620.html>.



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Afghanistan should be widely based and represent the interests of variousethnic groups, and that Afghanistan should live in harmony with the othercountries, especially its neighboring countries. The settlement should be in theinterest of safeguarding regional peace and stability. The UN should have amore active role to play in the political settlement of the Afghan issue.

China makes it clear that the relevant military actions should not spreadto other countries and regions.6 As to the speculation the Untied States mayexpand its anti-terrorist war to other countries, such as Iraq and Somali, theChinese spokesperson said:

We are in favor of the fight against terrorism. At the same time, we holdthat the combat should be based on concrete evidence, aimed at specifictargets and avoid harming the innocent. The fight against terrorism is along-term, arduous and complicated task. International efforts should bestepped up. The UN should play a leading role. In this fight,comprehensive measures should be adopted, dealing not only with thesymptoms, but also the root-causes. Efforts should be made to eradicatethe international terrorist forces.

I.C. China's Contributions to International Counter-terrorism Efforts

In this year, China joined Russia, Kazakstan, Kirgizstan, Tajikistan andUzbekistan in inaugurating the Shanghai Cooperation Organization (SCO),giving birth to a new type of regional cooperation organization that pursuessecurity through mutual trust and seeks cooperation on the basis of mutualbenefit.8 In June, member States of the SCO signed the Shanghai Conventionon Combating Terrorism, Separatism and Extremism. This has demonstratedthe common aspiration of the nations of the region to fight against terrorism,separatism and extremism. The parties concerned will establish an anti-terrorist center in Bishkek to carry out concrete cooperation in this field.

See Chinese Ministry of Foreign Affairs Press Release on ForeignMinistry Spokesman's Press Conference (Oct. 25, 2001), at<http://www.ftnprc.gov.cn/eng/19426.html>.See Chinese Ministry of Foreign Affairs Press Release on Foreign Ministry PressConference by Spokesman Sun Yuxi (Oct. 16, 2001), at<http://www.fmprc.gov.cn/eng/18845.html>.See Chinese Ministry of Foreign Affairs Press Release on Foreign MinistrySpokesman's Press Conference (Nov. 27, 2001), at<http://www.fmprc.gov.cn/eng/21620.html>.For further information, see Section HI.See Chinese Ministry of Foreign Affairs Press Release on Foreign MinistrySpokesman's Press Conference (Sept. 20, 2001), at



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On January 7, 2002, foreign ministers of the SCO gathered in Beijingfor a non-regular meeting. Among the three tasks facing the SCO mentionedby Foreign Minister of China Tang Jiaxuan, the first one is "to continue tokeep close coordination and cooperation in Afghan and regional issues" andthe second, "to further cooperate in combating the 'three vices,' so as to speedup die approval process of the Shanghai treaty on the crackdown on the 'threevices' and the preparatory work to set up an anti-terrorism organ in Bishkek,and to enhance cooperation in combating such terrorist organizations orgroups as 'East Turkistan,' Chechen terrorists, and the Uzbek Islamicmovement.

The First Session of the Symposium on ASEM Law EnforcementOrgans Cooperation in Combating Transnational Crime was held fromSeptember 17 to 19 in Beijing." The Symposium aimed at enhancingcooperation among law enforcement agencies from Asia and Europe toeffectively crack down on increasing rampant transnational crime andmaintain regional and international peace and stability.

On October 21, 2001, APEC leaders made a statement on counter-terrorism in Shanghai.

The leaders deemed it imperative to strengthen internationalcooperation at all levels in combating terrorism. The measures include variousmeasures to prevent the flow of funds to terrorists; adherence by all economiesto relevant international requirements for the security of air and maritimetransportation; strengthening of energy security in the region through themechanism of the APEC Energy Security Initiative; strengthening of APECactivities in the area of critical sector protection; enhancement of customscommunication networks and expeditious development of a global integratedelectronic customs network; cooperation to develop electronic movementrecords systems; strengthening capacity building and economic and technicalcooperation to enable member economies to put into place and enforce

<http://www.fmprc.gov.cn/eng/18281.html>.See SCO Foreign Ministers Hold a Non-regular Meeting in Beijing (Jan. 7, 2001), at<http://www.fmprc.gov.cn/eng/23373.html>.Nearly 200 delegates from 25 member countries of the Asia Europe Meeting(ASEM) and the EU attended the meeting. The meeting mainly sought ways toprevent and fight transnational economic crimes, international terrorism, illegalsmuggling and trafficking. The meeting also explored effective mechanism andmeasures of cooperation against transnational crimes and sought bettercoordination among the law enforcement agencies among the member states.See Chinese Ministry of Foreign Affairs Press Release on ForeignMinistry Regular Press Conference by Spokesman Zhu Bangzao (Sept. 18, 2001), at<http://www.fmprc.gov.cn/eng/18183.html>.



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effective counter-terrorism measures; and cooperation to limit the economicfallout from the attacks and move to restore economic confidence in the

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region.They affirmed that the UN should play a major role in this regard,

especially taking into account the importance of all relevant UN resolutions.Leaders pledged to implement faithfully UN Security Council Resolutions1368 and 1373 and called for early signing and ratification of all basicuniversal anti-terrorism conventions including the International Conventionfor the Suppression of the Financing of Terrorism. Leaders also pledged tocooperate fully to ensure that international terrorism does not disrupteconomies and markets, through close communication and cooperationamong economic policy and financial authorities.'3

ID. China in International Cooperation on Combating Terrorism

China has always been against terrorism in all forms and has takensubstantial measures in several areas in this regard.

I.D.i. Participation of China in International Anti-terrorism Conventions

China has acceded to all the international anti-terrorism conventionsnow in force.4 In recent years, China has participated in the whole process ofdrafting the International Convention on the Suppression of Incidents ofTerrorist Explosions, the International Convention on the Suppression of theActs of Nuclear Terrorism, and the International Convention on theSuppression of the Funding of Terrorism. China also completed the domesticlegal procedures for joining the International Convention for the Suppression

See APEC Leaders Statement on Counter-terrorism (Oct. 21, 2001), at<http://un.fmprc.gov.en/eng/217O2.html>.See APEC Leaders Statement on Counter-terrorism (Oct. 21, 2001), at<http://un.fmprc.gov.en/eng/217O2.html>.The conventions conclude Tokyo Convention, Hague Convention, MontrealConvention and the Convention on Prevention and Punishment against Crimes ofInfringement to Internationally Protected Personnel and DiplomaticRepresentatives, etc. See Chinese Ministry of Foreign Affairs Press Release onForeign Ministry Regular Press Conference by Spokesman Zhu Bangzao (Sept. 18,2001), at <http://www.fmprc.gov.cn/eng/18183.html>.See China and Anti-International Terrorism, at<http://www.fmprc.gov.cn/eng/14685.html>.



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of Terrorist Bombings and will soon sign the International Convention for theSuppression of Financing Terrorism.16

ID.ii. Domestic Legislation against Terrorism

China has also increased the momentum of combating terrorism by wayof domestic legislation. The Criminal Law of China contains explicit andconcrete provisions on various types of crimes of terrorist nature. The CivilAviation Law of China contains explicit provisions on combating terrorist acts,including aircraft highjacking. The Standing Committee of the NationalPeople's Congress formulated, in the form of a separate ordinance, specialprovisions on certain crimes of terrorist nature, providing a powerful legalfoundation and guarantee for preventing, combating and suppressinginternational terrorist acts.

LD.iii. Mutual Cooperation against Terrorism

China has also stepped up counter-terrorism consultation andcooperation with the countries concerned and established various forms ofcounter-terrorism cooperation mechanisms.

During the APEC meeting, China and Russia agreed to establish ananti-terrorism working group between the two sides to exchange views andexpand cooperation in the fields of combating terrorism. The first meeting ofthe Sino-Russian anti-terrorism working group was held in Beijing onNovember 28 and 29.20

See Statement by Foreign Minister Tang Jiaxuan at the UN SecurityCouncil Ministerial Meeting on Counter-Terrorism (Nov. 12, 2001), at<http://un.fmprc.gov.cn/eng/21748.html>.See V. China and Anti-International Terrorism, at<http://www.fmprc.gov.cn/eng/14685.html> and Chinese Ministry of ForeignAffairs Press Release on Foreign Ministry Regular Press Conference by SpokesmanZhu Bangzao (Sept. 18, 2001), at<http://www.fmprc.gov.cn/eng/18183.html>.See Statement by Foreign Minister Tang Jiaxuan at the UN Security CouncilMinisterial Meeting on Counter-Terrorism (Nov. 12, 2001), at<http://un.fmprc.gov.cn/eng/21748.html> and Section I.C., above, "China'sContribution to International Counter-terrorism Efforts."See Chinese Ministry of Foreign Affairs Press Release on Foreign MinistrySpokesman's Press Conference (Nov. 22, 2001), at<http://www.fmprc.gov.en/eng/21351 .html>.See Foreign Ministry Spokesman's Press Conference (Nov. 27, 2001), at<http://www.fmprc.gov.cn/eng/21620.html>.



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During their bilateral meeting around the October APEC EconomicLeaders' Conference in Shanghai, Chinese President Jiang Zemin and USPresident Bush reached an agreement on the formation of a medium andlong-term bilateral mechanism for exchanges and cooperation in the fightagainst terrorism.

As an important follow-up to the above agreement between the twoleaders, US Coordinator for Counter-terrorism Issues Ambassador Taylorvisited Beijing on December 4, 2001 to have consultations. The two sides hadan in-depth exchange of views on the regional and international anti-terrorismsituation, the situation in Afghanistan and Sino-US cooperation againstterrorism. They agreed to the establishment of a medium and long-termbilateral mechanism for anti-terrorism exchanges and cooperation serves thetwo countries' common interests.

I.D.iv. Other Activities of China

Soon after the Security Council adopted Resolution No. 1373, theChinese Government issued a circular calling for strict implementation of allthe provisions of the resolution.23

After becoming a member of the Interpol, China has made full use ofthis channel to exchange information and conduct international cooperationin the prevention and investigation of clues for international terrorist cases andthe issuing of notices against violent criminals and hijackers.

In order to properly settle Afghan refugees, the Chinese Government hasdecided to provide commodities worth one million RMB to the emergencyassistance program of the UNHCR. In addition, China's Red Cross willprovide donations to Afghan's refugees through the Red Cross Society and theRed Crescent. In January 2002, China promised to offer another assistanceworth of 150 million to Afghanistan as to its post-war reconstruction.

See Foreign Ministry Spokesperson's Press Conference Pec. 7, 2001), at<http://www.fmprc.gov.cn/eng/22037.html>.See Foreign Ministry Spokesperson's Press Conference (Dec. 7, 2001), at<http://www.frnprc.gov.cn/eng/22037.html>.See Statement by Foreign Minister Tang Jiaxuan at the UN SecurityCouncil Ministerial Meeting on Counter-Terrorism (Nov. 12, 2001), at<http://un.fmprc.gov.cn/eng/21748.htm]>.See Chinese Ministry of Foreign Affairs Press Release on Foreign Ministry RegularPress Conference by Spokesman Zhu Bangzao (Sept. 18, 2001), at<http://www.fmprc.gov.cn/eng/18183.html>.See The Chinese Government decided to provide commodities in order to properlysettle Afghan refugees (Oct. 2, 2001),



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I.E. Attitude of China to "Eastern Turkistan" Organizations'

China has been threatened by terrorism, as the "East Turkistan"terrorist forces have launched all kinds of terrorist activities in XinjiangAutonomous Region of China and other countries and brutally slaughteredinnocent people. These forces have a close relationship with the Taliban inAfghanistan and Osama bin Laden. Osama bin Laden and the Taliban inAfghanistan have provided the "Eastern Turkistan" terrorist organizationswith equipments and financial resources and trained their personnel.28 Chinastates that the "East Turkistan" is downright terrorism and a part ofinternational terrorism and should be resolutely fought against.29

The European Parliament allowed the East Turkistan NationalConference to hold a seminar on its premises on October 17, 2001. Chinareleased a statement to expressed its strong indignation and dissatisfactiontowards this act of providing venue for anti-China activities on 19 October:

at<http://www.fmprc.gov.cn/eng/18626.html>.See Official of the Foreign Ministry Briefs the Resident Journalists in Beijing aboutthe Visit of Afghan Interim Government Chairman Karzai (Jan. 25, 2002), at<http://www.fmprc.gov.cn/eng/24381 .html>.The "Eastern Turkistan" force has a total of over 40 organizations. They haveengaged themselves in terrorist violence to varying degrees, both overtly andcovertly. Among these organizations, eight openly advocate violence in theirpolitical platforms. They are: "Eastern Turkistan Islamic Resistance Movement" inTurkey; "Eastern Turkistan Liberation Organization," "Eastern TurkistanInternational Committee," "United Committee of Uygurs' Organizations" incentral Asia, and "Central Asian Uygur Hezbollah" in Kazakhstan; "TurkistanParty" in Pakistan; "Eastern Turkistan Islamic Movement" in Afghanistan; and"Eastern Turkistan Youth League" in Switzerland. Over the past ten years,"Eastern Turkistan" elements perpetrated several incidents of terrorist violence inthe Chinese territory. Osama bin Laden and the Taliban in Afghanistanhave provided the "Eastern Turkistan" terrorist organizations with equipmentand financial resources and trained their personnel. See TerroristActivities Perpetrated by "Eastern Turkistan" Organizations and Their Linkswith Osama bin Laden and the Taliban (Nov. 29, 2001),at<http://un.fmprc.gov.cn/eng/21705.html>.See Terrorist Activities Perpetrated by "Eastern Turkistan" Organizations andTheir Links with Osama bin Laden and the Taliban (Nov. 29, 2001), at<http://un.fmprc.gov.en/eng/217O5.html>.See Statement by Foreign Minister Tang Jiaxuan at the UN Security CouncilMinisterial Meeting on Counter-Terrorism (Nov. 12, 2001),at<http://un.fmprc.gov.cn/eng/21748.html>.



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The force for East Turkistan is a terrorist force with the objective ofsplitting China. It has closely colluded with the international terroristorganizations to undertake numerous horrible violent terrorist acts inChina and its neighboring countries, leading to great casualties Theso-called seminar on East Turkistan is nothing but a farce

It runs against the international trend for enhanced anti-terroristcooperation for the European Parliament to bent on providing a forumfor such a terrorist organization.... We call on the European side toearnestly follow the spirit of international cooperation against terrorism,adopt effective measures to put an end to the activities of the EastTurkistan terrorist organizations in the EU countries, so as to enable thehealthy and smooth development of Sino-European relations.

IF. China's Comments on the US National Missile Defense Program

On March 14, 2001, Ambassador Sha Zukang gave a speech at theNMD Briefing in Beijing, intensively expressing the opinion of China onNMD. He repeated the attitude of China against NMD" and stated that theUS NMD program would have a series of far-reaching negative consequencesfor the international security environment. He said:

Firstly, the US NMD program will jeopardize the global strategicbalance and stability, and undermine the mutual trust and cooperationamong major powers.

Secondly, the US NMD program will hamper the internationalarms control and disarmament process and even trigger a new round ofarms race.

Thirdly, the US NMD program will undermine the internationalnon-proliferation regime and efforts.

Fourthly, the US NMD program will increase the weight of themilitary factor in international relations in detriment to internationalpeace and security.

Fifthly, the US NMD is not conducive to peace and security in theAsia-Pacific region.

30

See Spokesperson on East Turkistan National Conference's seminar held on EP'spremises (Oct. 19, 2001), at <http://www.fmprc.gov.cn/eng/18929.html>.See also Statement by H.E. Ambassador Hu Xiaodi on ABM Treaty at theFirst Committee of the 55th General Assembly (Oct. 18, 2000), at<http://un.fmprc.gov.cn/eng/7271.html>.See Speech at the NMD Briefing by Ambassador Sha Zukang, March 14, 2001,Beijing, at <http://www.fmprc.gov.cn/eng/9186.honl>.



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In addition, China always is of the opinion that the US program toestablish NMD is prohibited under the 1972 Treaty on the Limitation of Anti-Ballistic Missile Systems (hereinafter referred to as the ABM Treaty). Chinasees the ABM treaty as the cornerstone of the global strategic balance andinternational security, and the basis of further reduction of offensive strategicweapons and prevention of mass destruction weapon proliferation. It is in thecommon interest of the entire international community to safeguard theintegrity and validity of the ABM Treaty and urge the relevant country toabandon its NMD Plan.33

I.G. Treaty ofGoodNeighborliness and Friendly Cooperation and Joint Statement Signed

by the China and Russia

On July 16, 2001, Chinese and Russian heads of states signed the"Treaty of Good Neighborliness and Friendly Cooperation Between thePeople's Republic of China and the Russian Federation" and a JointStatement.

In the Joint Statement, the Chinese and Russian heads of states reiteratetheir stand as manifested in their Joint Statement on Anti-Missile Defensesigned in Beijing on July 18, 2000.34 They stress that the ABM Treaty is ofextreme importance. They both endorse that the treaty should be maintainedas it is in its present form. They both advocate under the premise of upholdingand abiding by the ABM Treaty to further reduce offensive strategic

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weapons.As to the other issues in the field of international security and peace, that

statement says, in part:

It is the view of the Chinese and Russian heads of states that theinternational community should redouble their efforts to prevent theproliferation of missiles and missile technology and further explore thepossibility of establishing a global regime for the prevention of missiles

See Statement by H.E. Ambassador Hu Xiaodi on ABM Treaty at the FirstCommittee of the 55th General Assembly (Oct. 18, 2000), at<http://un.fmprc.gov.cn/eng/7271.html>.See Joint Statement by the Presidents of the People's Republic of China and theRussian Federation on Anti-Missile Defense signed by President Jiang Zemin &President Vladimir Putin, Beijing, China, July 18, 2000, at<www.acronym.org.uk/48nmd.htm>.See Joint Statement Signed by the Chinese and Russian Heads of States (July 16,2001), at <http://www.fmprc.gov.cn/eng/15723.html>.



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proliferation on the basis of equality and non-discrimination and withthe participation of all states....

The Chinese and Russian heads of states hold that the deploymentof weapons in outer space must be strongly prevented and aninternational legal document must be concluded to prohibit thedeployment of weapons in outer space. To this end, China and Russiaadvocate multi-lateral talks on this issue at the Committee onDisarmament, set up a special ad hoc committee on the prevention ofarms race in outer space and to grant such committee with the functionof holding talks....

The Chinese and Russian heads of states reiterate that they willadhere to the "Final Document" of the 2000 Review Conference of the"Treaty on the Non-Proliferation of Nuclear Weapons" and willstrengthen cooperation in the areas of nuclear non-proliferation anddisarmament, including urging all members of the internationalcommunity to accede to the "Treaty on the Non-Proliferation of NuclearWeapons."...

The Chinese and Russian heads of states stand for the speedyrestarting of the work of the Disarmament Committee includinginitiating talks as quick as possible on the formulation of a treaty on theprohibition of the production of fission material in manufacturingnuclear weapons and other explosive devices.

I.H. China and Peace-keeping Operations

Peacekeeping initially developed as a means of dealing with inter-stateconflict and involved the deployment of military personnel from a number ofcountries, under UN command, to help control and resolve armed conflict.Today, peacekeeping is increasingly applied to intra-state conflicts and civilwars. Its tasks range from keeping hostile parties peacefully apart to helpingthem work peacefully together. It is the Security Council of UN that createsand defines peacekeeping missions."

In 2001, China has actively participated in discussions on the question ofpeacekeeping operations and made constructive efforts and contributions inthis field. The Representative of China to the UN made several important

See Joint Statement Signed by the Chinese and Russian Heads of States {July 16,2001), at <http://www.fmprc.gov.cn/eng/15723.html>.Although peacekeeping is not specifically mentioned in the United Nations Charter,the Charter gives the Security Council primary responsibility for the maintenance ofinternational peace and security. Thus the Council is in charge of peacekeeping. SeeUNITED NATIONS PEACEKEEPING: Some questions and answers, at<http://www.un.org/Depts/dpko/dpko/ques.htm>.



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Chen & Hu, Chinese Practice in Jntemational Law 339

statements on peace-keeping, which can be summarized as follows: In general,China thinks UN shall follow some basic norms in conflict prevention, such as"United Nations efforts in conflict prevention must be in conformity with thepurposes and principles of the Charter" and "To be successful, the UnitedNations must have the consent and support of the Government concerned andother key national actors." China also emphasizes the principles of mutualrespect for state sovereignty and territorial integrity, mutual non-aggression,non-interference in each other's internal affairs, mutual benefit and peacefulcoexistence.38

Considering the fact that in recent years, UN peacekeeping operations,conflict prevention and post-conflict peace-building activities have becomeincreasingly intertwined with each other, China emphasizes the need to havegood coordination and cooperation with the host country, and to encourageits government and people to play a leading role in the process. At the sametime, the capacity and initiative of Member States and relevant regionalorganizations should be fully tapped to enable them to work hand in handwith the United Nations.9

Considering the fact that the success of UN peacekeeping operationslargely depends on the sufficient political support and contribution ofresources from Member States, China states that it is essential to strengthencommunication and coordination among the Security Council, the troop-contributing countries (TCCs) and the Secretariat, to implement SecurityCouncil Resolution 1353 which has made detailed provisions as to how toimprove the meeting of TCCs, and to explore the unused potentials of theexisting mechanisms of the Security Council.

Considering the most fundamental root cause of armed conflicts isextreme poverty, China calls on to help developing countries, especially the

See Statement by Ambassador Wang Yingfan, Permanent Representative of Chinato the UN, at the Security Council Open Debate on the Review of the Report of theSecretary-General on the Prevention of Armed Conflict (June 21, 2001), at<http://un.fmprc.gov.cn/eng/13543.html>.See Statement by Ambassador Shen Guofang, Deputy Permanent Representative ofChina to the United Nations, at the Fourth Committee of the 56th Session of theGeneral Assembly on Agenda Item 89: Comprehensive review of the whole questionof peacekeeping operations in all their aspects (Nov. 20, 2001), at<http://un.fmprc.gov.cn/eng/21244.html>.See Statement by Ambassador Shen Guofang, Deputy Permanent Representative ofChina to the United Nations, at the Fourth Committee of the 56th Session of theGeneral Assembly on Agenda Item 89: Comprehensive review of the whole questionof peacekeeping operations in all their aspects (Nov. 20, 2001), at<http://un.fmprc.gov.cn/eng/21244.html>.



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least-developed countries, to seek economic development, eradicate poverty,curb diseases, improve the environment and fight against social injustices,which is a more active way of preventive peace-building, as compared withpost-conflict peace-building.

As to the reform of Department on Peacekeeping Operation (DPKO),China hopes that in the recruiting process for new posts in the Secretariat,there can be more transparency and that the principles of equitablegeographical distribution and balance between developing countries anddeveloped countries will be faithfully observed. Most importantly, specialattention should be paid to the concerns of countries that areunderrepresented in some departments. In this regard, China thinks what theSecretariat has done is far from enough.42

As to the issue of protection of civilians in armed conflict, Chinaemphasizes the importance of the Security Council as well as other regionaland inter-governmental organizations. It states the most fundamental andeffective means for the protection of civilians in armed conflict is conflictprevention or seeking earliest possible solutions if conflicts do take place.

As to the issue of peace-building, China states the Security Councilshould provide political guidance and coordination in this regard, especiallyconsidering how to transform peacekeeping into peace-building, since there isno applicable model for peace-building till now. China holds that all peace-building and peace-consolidating measures should conform to the purposesand principles of the United Nations Charter and have due respect for the

See Statement by Ambassador Shen Guofang, Deputy PermanentRepresentative of China to UN at the Security Council on the Topic of"Peace-Building: towards a Comprehensive Approach" (Feb. 5, 2001),<http://un.fmprc.gov.cn/eng/8082.html>. In this statement, China also mentionsthe early realization of the disarmament, demobilization and re-integration of ex-combatants and the promotion of the repatriation, resettlement and the economicrecovery of refugees and displaced persons constitute the short-term objectives ofpeace-building. The long-term objectives, however, are the eradication of poverty,development of economy as well as a peaceful and rewarding life for people in thepost-conflict countries and regions. China calls on the capable countries to maketheir due contributions.See Statement by Ambassador Shen Guofang, Deputy Permanent Representative ofChina to the United Nations, at the Fourth Committee of the 56th Session of theGeneral Assembly on Agenda Item 89: Comprehensive review of the whole questionof peacekeeping operations in all their aspects (Nov. 20, 2001), at<http://un.fmprc.gov.cn/eng/21244.html>.See Statement by Ambassador Wang Yingfan, Permanent Representative of Chinato the UN, on the Protection of Civilians in Armed Conflict (Apr. 23, 2001), at<http://un.fmprc.gov.cn/eng/10034.html>.



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political independence, sovereignty and territorial integrity of countriesconcerned as well as for the wills of their governments and people.

II. Territorial Issues

11.A. Taiwan Issue

II.A.i. US Arm Sales to TaiwanThe US- Taiwan arms sale meeting was held in Washington on April 24

and on April 25. The US government announced that it would sell advancedweapons and equipment worth billions of US dollars to Taiwan, includingfour Kidd-class destroyers, eight diesel-powered submarines, and 12 P-3COrion submarine-hunting aircraft.

China stated that the US act constituted a flagrant violation of the threeSino-US joint communiques, especially the one signed on August 17, 1982,and "an open provocation to China's sovereignty and territorial integrity.'

Concretely speaking, in the Shanghai Communique signed on February28, 1972, the US Government declared: "The United States acknowledgesthat all Chinese on either side of the Taiwan Straits maintain there is but oneChina and that Taiwan is a part of China. The US Government does notchallenge that position."

In the "Joint Communique on the Establishment of DiplomaticRelations between the People's Republic of China and the United States ofAmerica" signed in 1978, the US Government stated: "The United States ofAmerica recognizes the Government of the People's Republic of China as thesole legal Government of China. Within this context, the people of the UnitedStates will maintain cultural, commercial, and other unofficial relations withthe people of Taiwan." Furthermore, "The Government of the United States

See Statement by Ambassador Shen Guofang, Deputy Permanent Representative ofChina to UN at the Security Council on the Topic of "Peace-Building: towards aComprehensive Approach" (Feb.5, 2001), at<http://un.fmprc.gov.cn/eng/8082.html>.See Spokesperson on the US-Taiwan Arms Sale Meeting (Apr. 24, 2001), at<http://www.fmprc.gov.cn/eng/9988.html> and China Strongly Protests USArms Sales to Taiwan (Apr. 25, 2001), at<http://www.fmprc.gov.cn/eng/10015.htrnl>.See China Strongly Protests US Arms Sales to Taiwan (Apr. 25, 2001), at<http://www.fmprc.gov.cn/eng/10015.html>.See Text of Shanghai Communique (28 February, 1972), at< http: //www. taiwandocuments.org/communiqueO 1. htm>.



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of America acknowledges the Chinese position that there is but one China andTaiwan is part of China."

In the China-US August 17 Joint Communique issued on August 17,1982, the US Government reiterates that it has no intention to pursue a policyof "two Chinas" or "one China, one Taiwan," and it "does not seek to carryout a long-term policy of arms sales to Taiwan, that its arms sales to Taiwanwill not exceed, either in qualitative or in quantitative terms, the level of thosesupplied in recent years since the establishment of diplomatic relationsbetween China and the United States, and it intends gradually to reduce itssale of arms to Taiwan, leading, over a period of time, to a final resolution."4

On the basis of the three communiques, China states US Governmenthas broken its words and demands that US revoke its erroneous decision andgive up arms sales to Taiwan.3

While the US states it decides what to sell to Taiwan on the basis of thethree Communiques and the Taiwan Relations Act.51 The Taiwan RelationsAct states: "It is the policy of the United States to consider any effort todetermine the future of Taiwan by other than peaceful means, including byboycotts or embargoes, a threat to the peace and security of the WesternPacific area and of grave concern to the United States."52 Under the TaiwanRelations Act, "of course, the United States has always believed that it isproper and in our interest, in some cases, to promote arms transfers toTaiwan."53

In the view of China, the Taiwan Relations Act seriously breaches thefundamental principles enshrined in international law and the China-US Joint

See Text of Joint Communique on the Establishment of Diplomatic Relationsbetween the People's Republic of China and the United States of America at<http://www.fmprc.gov.cn/eng/7152.html>.See Text of Joint Communique of the People's Republic of China and theUnited States of America (August 17, 1982), at <http://www.china-embassy.org/eng/20555.html>.See China Strongly Protests US Arms Sales to Taiwan (Apr. 25, 2001), at<http://www.fmprc.gov.cn/eng/10015.html>.See Remarks to the Press by Secretary of State Colin L. Powell (Apr. 13, 2001), at<http://www.state.gov/secretary/rm/2001/2169pf.htm>.See Taiwan Relations Act, enacted on Apr. 10, 1979, at<http://www.taiwandocuments.org/tra01.htm>.See Daily Briefing Excerpt on China by US Department of State, February 15:Shipments from China to Pakistan/US Arms Transfers to Taiwan, at<http://www.state.gov/www/current/debate/febl5.html>.



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Communique on the Establishment of Diplomatic Relations, encroaches uponChina's sovereignty, and interferes with China's internal affairs.

IlA.ii. Response to Chen Shuibian's "Transit Stop" in US

In May 2001, US allowed Chen Shuibian, leader of the Taiwanauthorities to have a "transit stop" in New York and Houston and meet someUS congressmen on his way to Latin America.

China expressed its strong opposition to US, stating that US hadviolated the three Sino-US Joint Communiques and its relevant commitments,boosted the arrogance of "Taiwan independent forces" and interfered inChina's internal affairs. China strongly demanded the US side seriously takethe solemn representation of the Chinese side, strictly observe the one-Chinapolicy, the three China-US Joint Communiques and its relevantcommitments, and correct its erroneous acts.3

IlA.iii. Taiwan's Attempt to Squeeze into International Organizations

(a) United Nations. Since 1993, each year before the General Assemblysession started, there was a routine wrangle over Taiwan's participation in theUN, which China had eight straight wins. For the year 2001, there was noexception to this rule. On August 8, 2001, a handful of member statesintroduced a motion requesting the inclusion in the agenda of the fifty-sixthsession of a supplementary item entitled "Need to examine the exceptionalinternational situation pertaining to the Republic of China on Taiwan, toensure that the fundamental right of its twenty-three million people toparticipate in the work and activities of the United Nations is fully respected".56

As expected, the motion was rejected by the General Affairs Committee of the56th Session of the UN General Assembly on September 15." In response tothis issue, China made the following observations:

There is only one China in the world. Taiwan is an inalienable part ofChinese territory and the People's Republic of China is the sole legal

See The Taiwan Question, at <http://www.fmprc.gov.cn/eng/5351.html>.See Spokesperson on Chen Shuibian's "Transit Stop" in New York, US (May 22,2001), at <http://www.fmprc.gov.cn/eng/10515.html> and Spokesperson onChen Shuibian's Stopover in Houston in the U.S (June. 5, 2001) at<http://www.fmprc.gov.cn/eng/12141.html>.See UN document A/56/193, at< http://www.un.org/ga/56/document.htm >.See Spokesperson on the Rejected Motion Concerning the So-called Question ofTaiwan's "Participation" in the United Nations (15/09/2001), at<http://www.fmprc.gov.cn/eng/1798O.html>.



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government representing the entire Chinese people. This is anindisputable fact universally recognized by the international community.Thirty years ago, Resolution No. 2758 was adopted by a overwhelmingmajority at the 26th Session of the UN General Assembly, resolvingonce and for all the question of China's representation at the UNpolitically, legally and in terms of the procedures. The United Nations isan international inter-governmental organization made up of sovereignstates. Taiwan, as a province of China, is by no means qualified toparticipate in the UN and its specialized agencies.58

China further pointed out that the final resolution of the Taiwan issue shouldfollow the guidelines enshrined in the state policy of "peaceful reunificationand one country, two systems" and the Eight-point Propositions on theDevelopment of Cross-Straits Relations and the Promotion of theReunification of the Motherland, put forward respectively by late Chineseleader Deng Xiaoping and current President Jiang Zemin.59

(b) WHO. On May 15, the 54th World Health Assembly decided byconsensus not to include in the agenda of the Assembly the proposal of"inviting the Republic of China (Taiwan) to participate in the World HealthAssembly (WHA) as an observer," which once again frustrated the attempt bythe Taiwan authorities to attend WHA sessions and get into the World HealthOrganization (WHO).60 This result was welcomed by China.6'

58 See Remarks by Spokesperson Zhang Qiyue on the Motion by a Handfulof Countries on Taiwan's "Participation" in the UN (09/08/2001), at<http://www.fmprc.gov.cn/eng/16788.html>. For more information on theposition of China, see Statement by Ambassador Wang Yingfan, PermanentRepresentative of China to the UN, At the General Committee of the 56th Sessionof the GA (14/09/01), at <http://un.fmprc.gov.cn/eng/17970.html>; Letterby Ambassdor Wang Yingfan, Permanent Representative of China to theUnited Nations, to the Secretary-General Regarding the Proposed Item of theSo-called "Taiwan's Participation in the United Nations",at <http://un.fmprc.gov.cn/eng/16947.htrnl>; White Paper: The One-ChinaPrinciple and the Taiwan Issue, at <http://www.china-embassy.org/eng/7128.html>.See Letter by Ambassdor Wang Yingfan, Permanent Representative of Chinato the United Nations, to the Secretary-General Regarding the Proposed Itemof the So-called "Taiwan's Participation in the United Nations", at<http://un.fmprc.gov.cn/eng/16947.html>See Remarks by Foreign Ministry Spokesperson on Taiwan's Attempt to Squeezeinto WHO Being once again Frustrated (May 14, 2001), at<http://www.fmprc.gov.cn/eng/10263.html>.See above.



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II.B. The Tibet Issue

On October 24, 2001, the Dalai Lama gave a speech at the EuropeanParliament's General Assembly.

On October 27, the Foreign Affairs Committee of the National People'sCongress (NPC) issued a statement on the Dalai Lama's Speech at the EPGeneral Assembly.

In the statement, China reiterated that its problem with the Dalai Lamawas not religious, but political.

The statement says that a central government of one country is perfectlyjustified in excerising jurisdiction upon its own territory, as China does withTibet. But the Dalai Lama wrongly claims that China has "invaded Tibet"and he refuses to recognize Tibet as part of China. His desire to split themotherland is very clear, the statement says. In his speech, the Dalai Lamaalso declares tiiat he wants a "referendum" for Tibet. The statement also saysthat since Tibet is an inseparable part of Chinese territory and an autonomousregion under the jurisdiction of China, there is no need to conduct a"referendum" on Tibet's future.

Before the liberation, the old Tibet was one of the places in the worldwhere human rights were violated most seriously during the 20th century.Now it is one of the fastest developed and most improved areas of thecontemporary world in terms of various kinds of social undertakings andhuman rights. The "genuine autonomy" put forward by the Dalai Lama isnothing but a synonym for "separation" and "independence," the statementsays.

Moreover, the Dalai Lama in his speech said that his "initiatives andovertures to engage the Chinese leadership in a dialogue remainunreciprocated," and that "Beijing's attitude has hardened significantlycompared to the 80s." The statement notes this again is an out-and out lie.

China's policy towards the Dalai Lama is consistent and explicit. Thestatement expresses the hope that he could renounce his separatist stand of"Tibetan independence" and come back to the position of patriotism, addingthat the door will always be open to contacts between the CentralGovernment and the Dalai Lama.

The statement says that looking back upon more than twenty years ofcontact between the Central Government and the Dalai Lama, it is clear thatalthough the Dalai Lama kept on changing his tricks, his stand of "Tibetan

See Statement by Foreign Affairs Committee of NPC on Dalai Lama's Speech at EPgeneral Assembly (October 27, 2001), at<www.chinaembassy.cz/czech/22213.html>.



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Independence" still remains unchanged. It also notes that even when he is incontact with the Central Government, he never relinquishes his separatistactivities both at home and abroad.

The statement also stresses that China expresses its indignation andopposition to any country or international organization that renders aninvitation to meet with the Dalai Lama in any name or style or provide theDalai clique with venues for doing separatist political activities.

"We would rather hope that the EP members could put aside prejudiceand learn the true picture of Tibet by visiting there themselves, and in this waythey will be able to avoid making erroneous judgments and conclusions basedon biased opinions and information and avoid hampering the sounddevelopment of Sino-European relations," the statement says at the end.

II.C. Comment of China on Huang Tan Island (Scarborough Reef)

Vice President and Foreign Minister Guingona of the Philippinesclaimed in a statement issued on March 15, 2001, that the Huang Yan Islandis a part of the Philippine territory.

With respect to this statement, the Spokesperson of China said it iswidely respected by the international community that China has sovereignright and exercises jurisdiction over the Huang Yan Island. The Huang YanIsland has never been within the territorial limits of the Philippines. TheSpokesperson stated:

A series of treaties on the delimitation of the Philippine territory havestipulated explicitly that the demarcation line in the west of the territoriallimits of the Philippines is at 118 degree east longitude while the HuangYan Island is to the west of it and a component part of China'sZhongsha Islands. The map published by the government of thePhilippines also clearly indicates that the Huang Yan Island is not withinthe Philippine territorial limits.

Furthermore, China demanded that the Philippine side value the basic factsand principles of the international law, respect China's territorial sovereignty,and abide by the understanding and consensus reached by the two sides

See Foreign Affairs Committee of NPC Issued Statement on Dalai Lama's Speechat EP General Assembly (by China Daily), October 29, 2001, at<http://un.ftnprc.gov.cn/eng/20009.html>.See Spokesperson on the claim that the Huang Yan Island is a part of the Philippineterritory (March 20, 2001), at<http://www.fmprc.gov.cn/eng/9356.html>.



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through repeated negotiations so as to safeguard with concrete action thestability in the South China Sea and the overall situation of friendshipbetween China and the Philippines.

III. China and International Organizations

III.A. Establishment of the Shanghai Cooperation Organization

The Shanghai Cooperation Organization (SCO) was established on June15th, 2001 on the sixth summit of the heads of states of the "Shanghai Five,"66

the forerunner of the Organization. In addition to the members of the"Shanghai Five" mechanism, namely the People's Republic of China, theRepublic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, andthe Republic of Tajikistan, the Republic of Uzbekistan joined as a foundingmember.

At the inaugural meeting of the SCO, two important instruments weresigned, namely the Shanghai Convention on Combating Terrorism,Separatism and Extremism, and the Declaration on the Establishment of theShanghai Cooperation Organization.

After the launch of the SCO, cooperation among the member states wasconducted on several occasions. On September 14th, the first prime minister'smeeting of the Organization was held in Alma-Ata, Kazakhstan, during whichthe process of multilateral cooperation in economic fields was kicked off. Inaddition, the arrangement of establishing a regional anti-terrorism center, tobe based in Bishkek, capital of Kyrgyzstan, was under consideration and many

See above.The "Shanghai Five" mechanism originated in April 1996, when the top leaders ofChina, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan met for the first time inShanghai, PRC , signing the Treaty on Deepening Military Trust in BorderRegions. The next year, in Moscow, the leaders of the five states mentioned abovesigned the Treaty on Reducing Military Forces in Border Regions. After that, thesummit meetings of the five states were hosted regularly by the members in turn.And in July 2000, Uzbekistan President Islam Karimov attended the Dushanbesummit as an observer. See People's Daily Editorial Hails SCO Founding, at<http://english.peopledaily.com.cn/200106/15/eng20010615_72745.html>.See Joint declaration by the heads of states of the Peoples Republic of China, theRepublic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, theRepublic of Tajikistan and the Republic of Uzbekistan, at<http://missions.itu.int/~kazaks/eng/sco/sco01.htm>.See Foreign Minister Tangjiaxuan on the Achievements of Premier Zhu Rongji'sFour-Nation Tour (Sept. 15, 2001), at<http://wfww.ftnprc.gov.cn/eng/18086.html>.



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rounds of consultations at expert level were held.69 Moreover, for the purposeof enhancing cooperation among member states to fight terrorism, an ad hocmeeting of foreign ministers was held on January 7, 2002, during which thesituations in Afghanistan were discussed.

Several features of the newly born Organization are noteworthy. First,the Organization is an open one, which is not an ally against other states andregions. ' Second, the Organization is less institutionalized at present for thelack of a constitutional instrument (Charter of the SCO), which is beingdrafted for submission to signature at the second summit of heads of memberstates in 2002. Hence, it is not so much an institution than a kind ofconference in the process of transition to an institution, for at present there areno organs established other than a council of national coordinators. Third,the Organization conducts activities mainly in the fields of regional security,for it is established on the basis of the agreements on confidence-building inthe military field and on the mutual reduction of armed forces in the borderarea signed in Shanghai and Moscow in 1996 and 1997 respectively ,announcing fighting against "the Three Forces" (terrorism, extremism andseparatism) as one of its three tasks. For this purpose, the legal definition ofextremism and separatism was clearly set in the Convention on CombatingTerrorism, Separatism and Extremism. At the same time, however, theOrganization has been trying to expand cooperation among member states toother fields, which has been discussed at the first meeting of prime ministers.

See Foreign Ministry Spokesman's Press Conference (Sept. 20, 2001), at<http://www.fmprc.gov.cn/eng/18281.html> and Deputy Director-General ZhouLi of the Department of Eastern European and Central Asian Affairs of the ForeignMinistry gave a briefing on the just-concluded non-regular meeting of SCO ForeignMinisters (Jan. 8, 2001), at<http://www.fmprc.gov.cn/eng/23448.html>.

70 Ibid.See Paragraph 7, Declaration on the Establishment of the Shanghai CooperationOrganization, at <http://missions.itu.int/~kazaks/eng/sco/sco02.htm>.See Paragraph 11, the Declaration, at<http://missions.itu.int/~kazaks/eng/sco/sco02.htm>.See Paragraph 6, the Declaration, at<http://missions.itu.int/~kazaks/eng/sco/sco02.htm>.See SCO Foreign Ministers Hold a Non-regular Meeting in Beijing (Jan. 7, 2002), at<http://www.fmprc.gov.cn/eng/23373.html>.See People's Daily Editorial Hails SCO Founding, at<http://english.peopledaily.com.cn/200106/15/eng20010615_72745.html>.



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III.B. The APEC 2001 Summit in Shanghai6

The city of Shanghai, PRC witnessed another important event inaddition to the establishment of the Shanghai Cooperation Organization in2001. On October 20-21, 2001, the 9th Asia-Pacific Economic Cooperation(APEC) Leaders' Meeting was held in Shanghai," which was preceded by anAPEC Ministerial Meeting on October 17-18, 2001,™ an Informal SeniorOfficials' Meeting on October 15-16, 2001, and other related meetingsincluding the APEC Business Advisory Council Meeting on October 18-21,2001 and the CEO Summit on October 18-20, 2001.79

The theme for the APEC 2001 Summit was: "Meeting New Challengesin the New Century: Achieving Common Prosperity through Participationand Cooperation." The agenda of the meeting was structured to reflect thethree sub-themes of APEC 2001: a) Advancing Trade and Investment* and b)Sharing the Benefits of Globalization and the New Economy; and c)Promoting Sustainable Economic Growth.80

After an in-depth exchange of views on the above themes, a declaration,entided "Meeting New Challenges in the New Century," and a joint statementwere issued respectively by the APEC Economic Leader's Meeting (AELM)and the APEC Ministerial Meeting (AMM).

The APEC 2001 meetings made major achievements in several aspects,exemplified by the adoption of Shanghai Accord. First, they furtheradvanced trade and investment liberalization and facilitation process in theAsia-Pacific region by reviewing the implementation of the IAPs (IndividualAction Plans) and the CAP (Collective Action Plans), finishing the revision andupdate of the OAA (Osaka Action Agenda), and agreeing to strengthen theIAPs peer review process. Moreover, the members exchanged their views on,and expressed their support for, launching a new round of WTO negotiations.

China began to participate in the APEC in 1991.For further information aboutChinese activities relating to the APEC, see China's Participation in APEC'sImportant Activities, at <http://www.fmprc.gov.cn/eng/4488.html>.The first APEC economic leader's meeting was held on November 20-21, 1993 inSeattle, the US. See A Brief Introduction of Asia-Pacific Economic Cooperation(APEC), at <http://www.fmprc.gov.cn/eng/4080.htm>.The first APEC ministerial meeting was held on November 6-7, 1989 in Canberra,Australia. Ibid.See <http://www.apecsec.org.sg/>.See Paragraph 2, Joint Statement of The 13th APEC Ministerial Meeting, at<http://www.fmprc.gov.cn/eng/18921.html>.See Appendix I, APEC Economic Leaders' Declaration: Meeting New Challengesin the New Century, at <http://www.fmprc.gov.cn/eng/19019.html>.



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Second, they cemented the cooperation within APEC in the fields of Ecotech(APEC Economic and Technical Cooperation) and human resources capacitybuilding. Moreover, the e-APEC Strategy was approved and a blueprint forthe development of E-commerce was mapped out. Third, they emphasizedthat by ways of strengthening macro economic dialogue and cooperation,efforts should be made in order to create conditions favorable for thesustainable economic growth in Asia-Pacific.

Different from the previous APEC meetings, the leaders did not confinethemselves to economic issues. Considering that the September 11 Incidenthas not only brought disasters to the American people, but also adverselyaffected the stable development of the world economy and that in the AsiaPacific, they held discussions upon that question and expressed theirdetermination to fight individually and jointly against terrorism in the APECLeader Statement on Counter-terrorism.4 However, there was no consensuson the definition of terrorism.85

Taiwan's participation is a sensitive question for every member of theAPEC. Fortunately, there has been a specific MOU and established practiceto address this problem, the content of which is that Taiwan is an economicentity of APEC and only leaders from its economic section can participate inthe meeting in the name of Chinese Taipei.

IRC. China's Accession to WTO

In late 2001, the marathonian process of China's accession to the WTO(World Trade Organization) came to an end. On November 10th, the 4thMinisterial Conference of the WTO approved by consensus the text of theagreement for China's entry into the WTO. On the next day, the case was

82

See Foreign Minister Tang Jiaxuan on the Remarkable Achievements of the APECMinisterial Meeting (AMM) (Oct. 18, 2001), at<http://www.fmprc.gov.cn/eng/18927.html>.See Foreign Ministry Press Conference (Oct.23, 2001), at<http://www.fmprc.gov.cn/eng/19223.html>.See APEC Leaders Statement on Counter-terrorism (Oct.21, 2001), at<http://www.fmprc.gov.cn/eng/19018.html>.

85 See Foreign Ministry Press Conference (Oct.23, 2001), at<http://www.finprc.gov.cn/eng/19223.htmJ>.See Foreign Ministry Press Conference by Spokesman Sun Yuxi (Oct.l 1, 2001), at<http://www.fmprc.gov.cn/eng/18793.html>.See WTO Ministerial Conference approves China's accession, at<http://www.wto.org/english/news_e/pres01_e/pr252_e.htm>.



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the same for Chinese Taipei. Since then, every jurisdiction of China has beena Party to the Organization.

China was one of the 23 original signatories of the General Agreementon Tariffs and Trade (GATT) in 1948. After China's revolution in 1949, thegovernment in Taiwan announced that China would leave the GATT system,which was never recognized by the government in Beijing. In 1986, Chinaexpressed her wishes to resume her membership to, instead of joining, theGATT, the forerunner of the WTO, and took active part in the UruguayRound of negotiation. Although China became one of signatories of theUruguay Round Final Act, she was denied an original membership to theprogeny of the GATT, the WTO. After that, China started another longmarch for her membership. The Sino-US agreement and Sino-EU agreementreached respectively in 1999 and 2000 marked decisive breakthroughs, pavingthe way for China's accession. On September 17, the 18th Session of theWorking Party on China's entry into the WTO approved the legal documentson China's entry, namely the protocol, the report of the Working Party andthe annex of the protocol, which include concession lists of commodity tradeand service trade. The meeting decided to present these documents to theGeneral Council of the WTO. Thus, the Working Party of the WTO onChina's entry finally finished its 15-year long historical mission. Thenegotiations on China's entry into the WTO were completely concluded.9

China's entry presents several questions, as discussed below.(1) The relationship between WTO rules and Chinese domestic laws. This issue

falls into the category of relationship between international law and municipallaw, which is generally addressed by the constitution of a specific state.However, there are no such provisions in the Constitution of the PRC. As aresult, it is indispensable to make some necessary arrangements betweenChina and WTO to deal with this problem. The Government of China is ofthe view that the WTO rules are not directly applicable in Chinese legalsystem unless by revising the existing domestic laws and enacting new ones.This views seems to find support in the Report of the Working Party on theAccession of China, which states, in part:

See WTO Ministerial Conference approves accession of Chinese Taipei, at<http://www.wto.org/english/news_e/pres01_e/pr253_e.htm>.See WTO successfully concludes negotiations on China's entry, at<http://www.wto. org/english/news_e/pres01_e/pr243_e.htm>.See Foreign Ministry Regular Press Conference by Spokesman Zhu Bangzao(Sept.18, 2001), at <http://www.fmprc.gov.cn/eng/18183.html>.



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67. The representative of China stated that China had been consistentlyperforming its international treaty obligations in good faith. Accordingto the Constitution and the Law on the Procedures of Conclusion ofTreaties, the WTO Agreement fell within the category of "importantinternational agreements" subject to the ratification by the StandingCommittee of the National People's Congress. China would ensure thatits laws and regulations pertaining to or affecting trade were inconformity with the WTO Agreement and with its commitments so as tofully perform its international obligations. For this purpose, China hadcommenced a plan to systematically revise its relevant domestic laws.Therefore, the WTO Agreement would be implemented by China in aneffective and uniform manner through revising its existing domestic lawsand enacting new ones fully in compliance with the WTO Agreement.

To fulfill her commitments under the WTO framework, China in 2001adopted the approaches laid down in the Report of the Working Party,making great efforts to bring her statutes and regulations in line with relevantWTO rules. For instance, the 9th NPC and the Standing Committee thereofapproved respectively the amendments to the Law on Chinese-Foreign EquityJoint Ventures, the Trademark Law and the Copy Right Law. Along with therevision of the Law on Chinese-Foreign Contractual Joint Ventures, the Lawon Foreign-Capital Enterprises and the Patent Law in 2000, China hasrectified six statues, making them all conforming to the WTO rules.92

Similarly, the Executive Branch has done its part. On August 1, 2001, theState Council issued the Amended Rules for Implementation of the Law onChinese-Foreign Equity Joint Ventures. As a result of arduous work, theState Council has approved amendments to 140 foreign-trade-relatedregulations, and is ready to abolish 570 other administrative regulations.94

(2) The domestic procedure for China's accession. This issue is addressed by the

Law on the Procedure for the Conclusion of Treaties, Article 7 of whichprovides:

91

See Paragraph 67, Report of the Working Party on the Accession of China, at<http://www.moftec.gov.cn/moftec_cn/wto/wtolaw.html>.See China Completes Rectification of WTO-related Laws, at<http://english.peopledaily.com.cn/200112/25/eng20011225_87450.shtml>.See China Issues Amended Detailed Rules on Implementing JV Law, at<http://ce.cei.gov.cn/frame_2.htm>.See China Nearly Completes Amending of Administrative Rules according to WTORules, at<http://english.peopledaily.com.cn/200103/04/eng20010304_64024.html>.



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The ratification of treaties and important agreements shall be decidedupon by the Standing Committee of the National People's Congress.

The treaties and important agreements referred to in the precedingparagraph are as follows:

(1) treaties of friendship and cooperation, treaties of peace andsimilar treaties of a political nature;

(2) treaties and agreements relating to territory and delimitationof boundary lines;

(3) treaties and agreements relating to judicial assistance andextradition;

(4) treaties and agreements which contain stipulations inconsistentwith the laws of the People's Republic of China;

(5) treaties and agreements which are subject to ratification asagreed by the contracting parties; and

(6) other treaties and agreements subject to ratification.After the signing of a treaty or an important agreement, the Ministry ofForeign Affairs or the department concerned under the State Council inconjunction with the Ministry of Foreign Affairs shall submit it to theState Council for examination and verification; the State Council shallthen refer it to the Standing Committee of the National People'sCongress for decision on ratification; the President of the People'sRepublic of China shall ratify it in accordance with the decision of theStanding Committee of the National People's Congress.D

Examination of the above provisions will lead to the conclusion that thePresident shall not ratify after signature of the treaty at issue (Protocol ofAccession) unless the Standing Committee of the National People's Congress,after reviewing the treaty at its sessions, renders a Decision to that effect. In aword, the power of ratification is vested in the Standing Committee ratherthan the President, whose power on this occasion is no more than nominal.This conclusion is supported by the statement of the Foreign Ministryspokesman that:

The representative of the Chinese Government will officially sign theprotocol of accession. After ratification by the NPC, the instruments ofratification will be formally presented to the WTO. Thirty days after the

95

Law and Regulations on Foreign-Related Matters (1991), complied by the Bureau ofLegislative Affairs of the State Council of PRC, published by China Legal SystemPublishing House.



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deposit of the instruments of ratification, China will become a memberof the WTO.96

However, things did not always develop as what they should be. As earlyas on the second day after signature, the Government of China deposited theinstrument of ratification with the Organization, which is definitely impossibleunder the procedure described above because the Standing Committee wasnot in session at that time, let alone review the Protocol and render aDecision. The explanation from the Chinese Government is that the StandingCommittee has authorized the President to do so in a Decision dated August25, 2000, which provides that:

In the light of the latest development in the negotiations on China'saccession to the W T O following the 15th Session, this Session decides toagree that the State Council, in accordance with the afore-mentionedprinciples, conclude the W T O accession negotiations and designate itsrepresentative to sign the Protocol on China's Accession to the WorldTrade Organization, thus completing the procedures on China's WTOaccession subject to the ratification of the President of the country.

According to this Decision, the Standing Committee waived its power ofratification to some extent. It is not clear whether the decision is a departurefrom the law or represents the emergence of a new convention, but itsconstitutionality is open to debate.

(3) Discrepancies between the Protocol of Accession and Uruguay Round Final Act.

Since China is defined as a transitional economy rather than an absolutelymarket-oriented one, which forms the basis of the Organization, there aresome special arrangements for China. The Transitional Review Mechanismserves as an example. According to the Protocol of Accession, review of tradepolices will take place after accession in each year for eight years. Thereafterthere will be a final review in year 10 or at an earlier date decided by theGeneral Council.98 However, Annex 3 to Agreement Establishing the WorldTrade Organization entitled Trade Policy Review Mechanism gives anotherformula, which provides that:

See Foreign Ministry Regular Press Conference by Spokesman Zhu Bangzao (Sept.18, 2001), at <http://www.fmprc.gov.cn/eng/18183.html>.See Decision on NPC Standing Committee on China's Accession to WTO, at<http://english.peopledaily.com.cn/20011 l/10/eng20011110_84252.shtml>.See Section 18, Protocol on the Accession of the People's Republic of China, at<http://www.moftec.gov.cn/moftec_cn/wto/wtolaw.html>.



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The trade policies and practices of all Members shall be subject toperiodic review. The impact of individual Members on the functioningof the multilateral trading system, defined in terms of their share ofworld trade in a recent representative period, will be the determiningfactor in deciding on the frequency of reviews. The first four tradingentities so identified (counting the European Communities as one) shallbe subject to review every two years. The next 16 shall be reviewedevery four years. Other Members shall be reviewed every six years,except that a longer period may be fixed for least-developed countryMembers.99

Under diis regime, China falls into the category whose trade policies aresubject to review every four years. Thus, the Protocol of Accession has set amore rigorous standard for China in respect of review of trade policies.

(4) Chinese Taipei's Accession. The Government of PRC takes the stancethat Taiwan may join the WTO as a Separate Customs Territory of Taiwan,Penghu, Kinmen and Matsu (Chinese Taipei), but that it should not accede tothe GATT (and WTO) before PRC herself.1 This position was acknowledgedby all the contracting parties as early as in 1992 when the Working Party onChinese Taipei's Accession was established.1 Furthermore, the Governmentof PRC holds that Chinese Taipei has no right to host WTO-relatedconferences.102 Moreover, the Government of PRC contended that being bothmembers of the WTO, the two sides across the straits should strictly abide bythe rules of the WTO. According to the principles of non-discrimination andtrade facilitation of the WTO, the Taipei authorities should open the "threedirect links" of transportation, post and trade across the straits and lift allunreasonable restrictions on economic and trade exchanges across the

. . 103

straits.(5) The relationship between Hong Kong, Macaos and the WTO. Hong Kong

became a contracting party of the GATT on April 23rd, 1986. It fullyparticipated in the Uruguay Round Negotiations and assumed all thecorresponding rights and obligations by formally accepting the Uruguay

See Annex 3 to Agreement Establishing the World Trade Organization, at<http://www.wto.org/english/docs_e/legal_e/29-tprrn.wpf>.See Foreign Ministry Spokesman's Press Conference (November 6, 2001), at<http://www.fmprc.gov.cn/eng/20383.html>.See WTO successfully concludes negotiations on China's entry, at

102<http://www.wto.org/english/news_e/pres01_e/pr243_e.htm>.See Foreign Ministry Spokesman's Press Conference (November 13, 2001), at<http://www.fmprc.gov.cn/eng/21141.html>.

103 T i . iIbid.



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Round Final Act. By virtue of Article 6 of the Agreement Establishing theWorld Organization, Hong Kong became an original member of the WTO.After the PRC resumed the exercise of sovereignty over Hong Kong, itcontinues its WTO membership in the name of "Hong Kong, China" as aseparate custom territory.1 The case is almost the same in respect of Macaowith the exception that Macao became a contracting party of the GATT onJanuary 11th 1991.105

IV. Jurisdiction

IV.A. Treaties on Mutual Judicial Assistance and Treaties of Extradition between China

and Foreign Countries

Mutual request for assistance and offering assistance is China's majorform of unfolding mutual judicial assistance and extradition cooperation withforeign countries. These treaties touch upon the three fields of mutual judicialassistance in civil and commercial matters, mutual judicial assistance incriminal matters and extradition.

In 2001, China signed the treaties of extradition in Beijing withPhilippines on October 30, Peru on November 5, Tunis on November 19 andSouth Africa on December 10.

China also signed the Treaty on Mutual Judicial Assistance in Civil andCommercial Matters with Argentina on April 9, 2001 in Buenos Aires.

The treaties of mutual judicial assistance ratified by China in 2001were "The Treaty between the People's Republic of China and the Republicof Indonesia on Mutual Judicial Assistance in Criminal Matters" m and "The

104

See WTO successfully concludes negotiations on China's entry, at<http://www.wto.org/english/news_e/pres01_e/pr243_e.htm>.

105 T , . ,

Ibid.See Judicial Assistance Treaties between China and Foreign Countries, at<http://www.fmprc.gov.cn/chn/premade/24468/biao.htm> and The JudicialAssistance and Legal Cooperation Between China and Foreign Countries, at<http://www.fmprc.gov.cn/chn/2944.html>.See The Judicial Assistance and Legal Cooperation Between China and ForeignCountries, at <http://www.fmprc.gov.cn/chn/2944.html>.See Judicial Assistance Treaties between China and Foreign Countries , at<http://www.fmprc.gov.cn/chn/premade/24468/biao.htm>.

109 On July 24, 2000, Ambassador Chen Shiqiu of the People's Republic of China toIndonesia and Romli Atnasasmita, Representative of Indonesia signed the treaty inJakarta, see The General Survey of Treaties on Mutual Judicial Assistance andTreaties of Extradition Signed between China and Foreign Countries, at<http://www.fmprc.gov.cn/eng/14700.html>.



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Treaty between the People's Republic of China and the Republic of thePhilippines on Mutual Judicial Assistance in Criminal Matters." "°

Finally, the agreement between the China and the United States onmutual Judicial assistance in criminal matters went into effect on March 8,2001, and the treaty between China and Laos on mutual judicial assistancein civil and criminal matters went into force on December 15, 2001.

IV. B. Execution of Korean Criminal

On September 25, 2001, a 41-year-old Korean, identified as Shin wasexecuted in China. He was sentenced to death in August 1999 at a Chinesecourt for manufacturing and smuggling methamphetamine, a highly addictivedrug.

The execution triggered a war of words between the two countries.Korea accused China of not giving any prior notice to the Koreangovernment on the progress of court trials and execution despite Seoul'srepeated request. "China has no legal obligation to inform us of theexecution before it takes place, if the man didn't request Chinese authorities tomake such a notice," a Foreign Affairs - Trade Ministry official of South

From August 30 to September 1, 2000, the Chinese Delegation and the PhilippineDelegation held negotiations in Manila on the conclusion of the treaty and reachedunanimity on all articles of the treaty. On October 16, Minister Gao Changli of theMinistry of Justice of the People's Republic of China and Artemio Tuguero,Representative of the Republic of the Philippines signed the treaty in Beijing. SeeThe General Survey of Treaties on Mutual Judicial Assistance and Treaties ofExtradition Signed between China and Foreign Countries, at<http://www.fmprc.gov.cn/eng/14700.html>.This agreement was signed on June 19, 2000 in Beijing. See The General Survey ofTreaties on Mutual Judicial Assistance and Treaties of Extradition Signed betweenChina and Foreign Countries, at<http://www.fmprc.gov.cn/eng/14700.html>.See The Judicial Assistance and Legal Cooperation Between China and ForeignCountries, at <http://www.fmprc.gov.cn/chn/2944.html> and Judicial AssistanceTreaties between China and Foreign Countries, at<http://www.fmprc.gov.cn/chn/premade/24468/biao.htm>.See Seoul protests Beijing's Execution of Drug Trafficker, by Son Key-young, StaffReporter (Oct. 28, 2001), at<http://www.korealink.co.kr/times/200110A2001102816442040110.htm>.See Seoul protests Beijing's Execution of Drug Trafficker, by Son Key-young, StaffReporter (Oct. 28, 2001), at<http://www.korealink.co.kr/times/200110A2001102816442040110.htm>.



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Korea said on October 27, 2001, "It, however, is beyond diplomatic practicesfor China to turn a deaf ear to our requests for prior notification."

Then top Chinese envoys were summoned in protest and South KoreanPresident Kim Dae-Jung accused Beijing of neglecting the spirit of the ViennaConvention on Consular Relations.

China responded that the accusation of South Korea is groundless. Andafter the investigation into the incident, China confirmed that Korea had beeninformed within the relevant time after the Shin and his accomplice weredetained. Information of the time and place of the court trial was also given toKorean Embassy one week in advance. After the sentence of death wasapproved by the Supreme Court of China, Foreign Affairs Office ofHeilongjiang Province sent the judgment to Korean Consulate in Shenyang.China demanded that South Korea conduct a thorough and comprehensiveinvestigation into this incident and stop the groundless accusation towardChina.

On November 2, 2001, South Korea retracted its earlier claim andacknowledged it had received notifications from China about the execution ofa convicted South Korean drug trafficker.

V. Law of the Sea

V.A. Sino-USAir Collision Incident

On the morning of April 1, 2001, a US military surveillance planeapproached China's airspace south-east of China's island province of Hainan,and two Chinese military airplanes tracked it. In the flight, the US planesuddenly turned towards the Chinese airplanes, resulting in its bumping intoand damaging one of the two Chinese airplanes. The pilot of the Chinese jetwas missing with no possibility of survival. Soon after the collision, the US

D See Seoul protests Beijing's Execution of Drug Trafficker, by Son Key-young, StaffReporter (Oct. 28, 2001), at<http://www.korealink.co.kr/times/200110/t2001102816442040110.htm>.See China, S Korea resolve execution row in Brunei, athttp://www.brudirect.com/DailyInfo/News/Archive/Nov01/051101 /bbO 1 .htm.See Spokesperson on the Execution of Korean Criminal Shin (Nov. 1, 2001), inChinese, at <http://www.fmprc.gov.cn/chn/20140.html> and Foreign MinistrySpokesman's Press Conference (Nov. 6, 2001), at<http://www.fmprc.gov.cn/eng/20383.html>.See South Korea Admits Gaffe, at<http://latelinenews.com/ll/english/1100909.shtml>.



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plane intruded into the Chinese airspace and landed at the Lingshui MilitaryAirport on the Hainan Island without permission from the Chinese side.

According to China, the US side should take full responsibility for thisserious incident.'20 The act of the US plane constitutes a violation of the UNConvention on the Law of the Sea (UNCLOS), which provides, among others,that the sovereign rights and jurisdiction of a coastal State over its ExclusiveEconomic Zone, particularly its right to maintain peace, security and goodorder in the waters of the Zone, shall all be respected and that a country shallconform to the UNCLOS and other rules of international law when exercisingits rights. According to international practice and law, when a foreign

119

See Chinese Ministry of Foreign Affairs Press Release on Spokesman on ChineseMilitary Airplane Bumped by a US Military Surveillance Plane (Apr. 1, 2001), at<http://www.fmprc.gov.cn/eng/9519.html> and Chinese Ministry of ForeignAffairs Press Release on Spokesman Zhu Bangzao Gives Full Account of theCollision between US and Chinese Military Planes (Apr. 4. 2001), at<http://www.fmprc.gov.cn/eng/9576.html>.See Chinese Ministry of Foreign Affairs Press Release on Spokesman Zhu BangzaoGives Full Account of the Collision between US and Chinese Military Planes (Apr.4. 2001), at <http://www.fmprc.gov.cn/eng/9576.html> and China's SolemnPosition on the US Military Reconnaissance Plane Ramming into and destroying aChinese Military Plane (Apr. 3. 2001), at<http://www.fmprc.gov.cn/eng/9607.html>The incident occurred in the airspace above the waters merely 104 kilometers to thesoutheast of the Hainan Island, which is above the exclusive economic zone ofChina. Under the UN Convention on the Law of the Sea (to which China, but notthe United States, is a party), Arts. 55-59 provide that a coastal state has the right toestablish an exclusive economic zone to the maximum breadth of 200 nautical milesfrom the baselines from which the breadth of the territorial sea is measured. Article58 provides that "all State...enjoy...the freedoms referred to in article 87[of theUNCLOS] of navigation and overflight." Article 87 is mainly about the freedomsover high sea, which include "(a) freedom of navigation; (b) freedom of overflight."But Section 3 of Article 58 makes it clear that foreign planes, while enjoying thefreedom of overflight over an exclusive economic zone of other countries, "shallhave due regard to the rights and duties of the coastal state and shall comply withthe laws and regulations adopted by the coastal state in accordance with theprovisions of this Convention and other rules of international law in so far as theyare not incompatible with this part." According to Article 56 of the Convention, thecoastal country concerned not only has the right to exploit, utilize, maintain andadminister natural resources in its exclusive economic zone, but also enjoys otherrights concerning exclusive economic zones laid down by the Convention. Inaccordance with Article 301 of the Convention, a certain country, while enjoying itsrights or carrying out its duties stipulated by the Convention, "shall refrain from anythreat or use of force against the territorial integrity or political independence of anyState, or in any other manner inconsistent with the principles of international law



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military plane is engaged in activities which could threaten a state's nationalsecurity in the airspace over coastal waters of a coastal country, the coastalstate has the right to take relevant defense measures, including sending planesto track and monitor the foreign plane.122 After the collision, evidence showsthat it is the US plane that violated the flight rules and caused the crash.The US has also undermined the consensus that China and the US reached in

124May 2000 on preventing dangerous maritime military activities. Aftercausing the incident, the US plane forced its way into the Chinese territorial

embodied in the Charter of United Nations." Some author argues that the "otherrights" concerning exclusive economic zone of coastal states include that thesovereignty and territorial integrity of these countries should not be infringed upon,and they have the right to safeguard its national security and maintain peacefulorder as stipulated in international law. Then a plane of a state, while it exercisesfreedom of overflight in the air over the exclusive economic zone of the other state,should respect the sovereignty and territorial integrity of the coastal state. It can'tinfringe upon national security and peaceful order of the coastal state, and any actignoring the above rights of the coastal country will abuse the freedom of overflight.See Li Qin, A Look at Plane Collision Incident From Perspective of InternationalLaw, at <http://news.xinhuanet.com/news/20010415/500276.htm>.Furthermore the article expounds that the above provisions, stipulated in the UnitedNations Convention on the Law of the Sea, are the generally acknowledgedprinciples of international law. Even the non-signatory countries must also abide bythese principles, because they have become customary international law principles.See Li Qin, A Look at Plane Collision Incident From Perspective of InternationalLaw, at <http://news.xinhuanet.com/news/20010415/500276.htm>. The articlepoints out, it is the common practice for all countries of the world to track andmonitor a foreign military aircraft when it flies into a country's territorial airspace,and the US practice in this regard is particularly obvious. The article says that theUS has designated an Air Defense Identification Zone in the airspace over its coastalwaters, and the sphere of the zone in some areas is much wider than that of theexclusive economic zone of 200 nautical miles. The US demands that any foreignplanes in the Air Defense Identification Zone should fly according to the USstipulated course, and should obey the procedures the US has prescribed, and if anyforeign plane violates these rules, the US will send its planes to intercept it.It was stated that the front part of the nose of the US jet dropped off, and theairscrew of its second left engine was deformed, demonstrating that the US planeveered into, approached and collided abruptly with the Chinese plane. See ChineseMinistry of Foreign Affairs Press Release on Spokesman Zhu Bangzao Gives FullAccount of the Collision between US and Chinese Military Planes (Apr. 4. 2001), at<http://www.fmprc.gov.cn/eng/9576.html>.

See Chinese Ministry of Foreign Affairs Press Release on China's Solemn Positionon the US Military Reconnaissance Plane Ramming into and Destroying a ChineseMilitary Plane (Apr. 3. 2001), at<http://www.frnprc.gov.cn/eng/9607.html>.



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airspace and landed at a Chinese airfield without permission from the Chineseside. It has thus further breached international law and the relevant provisionsof the Chinese law.'25 China also claims the right to investigate the plane thatcaused all this trouble, and the incident as a whole, as China is the victim, thecountry where die incident occurred and the country where the culprit aircraftlanded. China also needs sufficient time to make the investigation.According to these arguments, the Chinese side strongly urged the USGovernment to take full responsibility, provide convincing explanations to theChinese people on this incident, stop sending aircraft to the vicinity of theChinese coast for reconnaissance activities, and take effective measures toavert the recurrence of similar incidents.'27

The United States responded that the airplane had been operatingoutside Chinese territorial waters, that the EP-3 was flying straight and leveland it did not deviate from a straight and level path until it had been hit by theChinese fighter aircraft, that the EP-3E Aries II had not made a turn into thefighter aircraft, that the Chinese jets had become increasingly aggressive in

According to the article 12 of the Law on China's Territorial Waters and TheirContiguous Areas, foreign aircraft may enter the airspace over China's territorialwaters only in accordance with agreements or regulations signed between thegovernment of the People's Republic of China (PRC) and the governments offoreign countries. Otherwise, such entry should be approved or accepted by thegovernment of the PRC or its authorized organizations. Article 3 of the Conventionon International Civil Aviation adopted in 1944 clearly states that the militaryaircraft of a country may not fly over another country's territory or land on itsterritory without permission. The US military surveillance plane did not issue anyrequest or notice to the Chinese side to enter Chinese airspace or land on Chineseterritory during the whole process. (Facts show that after the collisionthe US plane had the time and technical ability to issue such a request ornotice, however the US plane failed to do so.) See Chinese Ministry ofForeign Affairs Press Release on Spokesman Zhu Bangzao Gives Full Accountof the Collision between US and Chinese Military Planes (Apr. 4. 2001), at<http://www.fmprc.gov.cn/eng/9576.html>.

See Chinese Ministry of Foreign Affairs Press Release on Spokesman Zhu BangzaoGives Full Account of the Collision between US and Chinese Military Planes (Apr.4. 2001), at <http://www.fmprc.gov.cn/eng/9576.html>.See Chinese Ministry of Foreign Affairs Press Release on Spokesman Zhu BangzaoGives Full Account of the Collision between US and Chinese Military Planes (Apr.4. 2001), at <http://www.fmprc.gov.cn/eng/9576.html>; China's Solemn Positionon the US Military Reconnaissance Plane Ramming into and destroying a ChineseMilitary Plane (Apr. 3. 2001), at<http://www.fmprc.gov.cn/eng/9607.html>; Vice-Premier Qian Qichen:The US side should apologize to the Chinese People (Apr. 7, 2001), at<http://www.fmprc.gov.cn/eng/9650.html>.



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approaching and tailing US reconnaissance airplanes, that the crew had madesome 25 to 30 attempts to broadcast Mayday and distress signals to alert theworld, as well as the Hainan Island, and that the EP-3 had landed indistress. The statement also gives some instances where one nation's aircraftlanded at another nation's airport, but without permission and because ofsome sort of emergency. In similar situations, nations have not detained crewsand they have not kept aircraft.

On April 11, Mr. Joseph Prueher, US Ambassador to China and therepresentative plenipotentiary of the US Government for handling theincident of a US military reconnaissance plane ramming into and destroying aChinese military aircraft, handed a letter to Chinese Foreign Minister TangJiaxuan at the Ministry of Foreign Affairs of the People's Republic of China,to say "very sorry" for the incident. In the letter, the US Government said"very sorry" to the Chinese people and the family of pilot Wang Wei for themissing pilot and aircraft. The US side also said "very sorry" to the Chineseside for its plane entering China's airspace and landing at a Chinese airfieldwithout acquiring a verbal clearance.'30 Additionally, the US side expressed itsappreciation of "China's efforts to see to the well being" of its crew.131

As a response to this letter, the Chinese Government decided to allowthe American crew members to leave China after completing the necessaryprocedures. But this was not the conclusion of the dispute and the two sideswould continue the negotiations on the matter and other related issues.132

On April 18, according to relevant understanding of the two sides,China and the US started to hold negotiations on the incident that a US

128 On Apr. 13, 2001, US Secretary of Defense Donald H. Rumsfeldmade a statement about the incident and the practice of statesregarding such matters. See US Dep't of Defense Press Release onSecretary Rumsfeld Brief on EP-3 Collision (Apr. 13, 2001), at<http://www.defenselink.mil/news/Apr2001/tO413200 l_tO413ep3.html>.See Chinese Ministry of Foreign Affairs Press Release on Ambassador PrueherHanded a Letter to Minister Tang Saying "Very Sorry" (Apr. 11, 2001) at<http://www.fmprc.gov.cn/eng/9703.html>.See Spokesperson on the Letter from the US Government Saying "Very Sorry"to the Chinese People (Apr. 11, 2001), at<http://www.finprc.gov.cn/eng/9702.html>.See Chinese Ministry of Foreign Affairs Press Release on Ambassador PrueherHanded a Letter to Minister Tang Saying "Very Sorry" (Apr. 11, 2001) at<http://www.fmprc.gov.cn/eng/9703 .html>.See Tangjiaxuan Receives a Letter From the US Government Saying "Very Sorry"to the Chinese People (Apr. 11, 2001), at<http://www.fmprc.gov.cn/eng/9700.html>.



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reconnaissance plane rammed into and destroyed a Chinese plane and relatedissues in Beijing.

After several rounds of consultations on the US EP-3 reconnaissanceplane in Beijing, the US side agreed to consider making a payment to theChinese side. The two sides agreed to conduct another round of negotiationson the specific amount of the US payment and the items to be covered anddiscuss ways to avoid similar incidents in the future through enhancedconsultation mechanism on military maritime safety.

On July 3, according to the agreement reached between China and US,the US airplane was dismantled and returned to the United States.Thereafter, the US side informed the Chinese side through its embassy inChina of its decision on the payment related to the April 1 incident, but it wasrejected by China as inadequate.

V.B. China and the Law of the Sea

V.B.i The if Conference of the State Parties to the UNCLOS

From May 14-18, 2001, the 11th Conference of the State Parties to theUNCLOS was held in New York. In a decision adopted at this meeting, a newdate from which the ten-year deadline for submitting delimitation cases to theCommission on the Delimitation of Continental Shelf begins was determinedon this session in accordance with Article 4 of Annex II. The decision providesthat, for a State for which the Convention entered into force before 13 May1999, the date of commencement of the 10-year time period for making

See China and the US Held Negotiations on the Incident that a US ReconnaissancePlane Rammed into and Destroyed a Chinese Plane and Related Issues (Apr. 18,2001), at <http://www.fmprc.gov.cn/eng/9892.html> and Chinese Ministry ofForeign Affairs Press Release on Sino-US negotiation on the Air-collision Incident(Apr. 20, 2001), at<http://www.fmprc.gov.cn/eng/9946.html>.See Chinese Ministry of Foreign Affairs Press Release on US Inspection of Its PlaneAllowed (Apr. 29, 2001), at <http://www.fmprc.gov.cn/eng/ 10078.html>.See <http://www.fmprc.gov.cn/eng/13130.html>;<http://www.fmprc.gov.cn/eng/14324.html>.See <http://www.fmprc.gov.cn/eng/16920.html>. The United States offered topay $34,567 in compensation for costs relating to the emergency landing, which isfar short of the $1,000,000 China had requested. See Steven Mufson, US to PayChina S34,567 for Costs of Downed Plane, WASH. POST, Aug. 10, 2001; ElisabethRosenthal, China Spurns % Plane Offer as Inadequate, N.Y. TIMES, Aug. 13, 2001;American Journal of International Law, vol. 95, 2001, p. 633.



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137submissions to the Commission is 13 May 1999. China welcomes the newdevelopment.1

V.B.ii The Second UN Meeting of the Informal Consultation Process on Maritime Affairs

and the Law of the Sea

On May 7-11, the second UN Meeting of the Informal ConsultationProcess on Maritime Affairs and the Law of the Sea was held. The delegationof China addressed the meeting on marine science and technology, givingsuggestions to promote the marine science and technology, emphasizing somepriority areas and presenting measures taken by China in internationalcooperation. China also introduced the effective measures it has taken incombating piracy and armed robbery and made significant suggestions on this

140

question.

V.B.iii The 7 th Session of the International Seabed Authority

From July 2-12, the International Seabed Authority held its 7th session.Chinese government supports the Authority to start work on the formulationof regulations on the exploration of resources other than poly metallic nodules,such as polymetallic sulphides and cobalt-rich crusts on the ocean floor, and

See Decision regarding the Date of Commencement of the Ten-year Periodfor Making Submissions to the Commission on the Limits of the ContinentalShelf Set out in Article 4 of Annex II to the United Nations Conventionon the Law of the Sea (SPLOS/72), New York, 14-18 May 2001, at<http://www.un.org/Depts/los/meeting_states_parties/documents/SPLOS_72.htm>.See Statement by H.E. Ambassador Shen Guofang, Deputy PermanentRepresentative of the People's Republic of China, at the 65th Plenary of the 56thSession of the UN General Assembly on Item 30: Oceans and the Law of the Sea(Nov. 28, 2001), at <http://un.fmprc.gov.cn/eng/21744.html>. Under article 4 ofannex II to the Convention, a coastal State intending to establish the outer limits toits continental shelf beyond 200 nautical miles is obligated to submit particulars ofsuch limits to the Commission on the Limits of the Continental Shelf along withsupporting scientific and technical data as soon as possible but in any case within 10years of the entry into force of the Convention for that State.See Views on Marine Science and Technology by the Delegation of the People'sRepublic of China in UN Informal Consultative Process on Oceans and the Law ofthe Sea (07-11/05/01), May 7-11, 2001, New York, at<http://un.fmprc.gov.cn/eng/14647.html>.See Statement by Mr. Liu Zhenmin Head of the Delegation of China at Panel B,the Second Meeting of the UN Opened Informal Consultative Process on Oceansand the Law of the Sea (May 10, 2001, New York), at<http://un.frnprc.gov.cn/eng/14649.html>.



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believes that this is one of the practical steps in the implementation of the UNConvention on the Law of the Sea and an important measure to strengthenthe management of the resources in the international seabed area.14'

V. C. China and the Regional Fishery Management

This year, China sent delegations to international conferences on fisherymanagement, such as the 24th Session of the Committee on Fisheries of Foodand Agriculture Organization in February, 53rd Annual Meeting of theInternational Commission on Whaling in July, the 6th Annual Meeting of theIndian Ocean Tuna Commission in December, etc. China also participatedactively in the preparation for the Convention on the Conservation andManagement of the Highly Migratory Fish Stocks in the Central and WesternPacific and Southwest Indian Ocean Fisheries Commission.

V.D. Maritime Boundary Delimitation and Fishery Affairs

V.D.i The 6th Sino-ROKConsultation on the Law of the Sea and the Sino-ROK Fishery

Agreement in Operation

In March 2000, China and ROK held the 5th consultation on the Lawof the Sea. The Chinese side advocated delimitation in the principle of fairnessand comprehensive consideration of all the circumstances and elementsrelating to delimitation, while the ROK side advocated delimitation in themedian line.'43 In May 2001, the two sides held the 6thconsultation to continuethe in-depth exchange of views on the delimitation.

On June 30, 2001, the Fishery Agreement between China and Korea,signed on August 3, 2000, entered into force.to This agreement is ofsignificance in the protection of the fishery resources in the Yellow Sea,

See Statement by H.E. Ambassador Shen Guofang, Deputy PermanentRepresentative of the People's Republic of China, at the 65th Plenary of the 56thSession of the UN General Assembly on Item 30: Oceans and the Law of the Sea(Nov. 28, 2001), at <http://un.fmprc.gov.cn/eng/21744.html>.See China in the Field of the Law of the Sea (in Chinese), at<http://www.fmprc.gov.cn/chn/3132.html>.See China's Maritime Demarcation and Bilateral Fishery Affairs, at<http://www.fmprc.gov.cn/eng/14698.html>.See China in the Field of the Law of the Sea (in Chinese), at<http://www.fmprc.gov.cn/chn/3132.html>.The fishery agreement between the two governments is a provisional arrangementon fisheries before the delimitation of the Exclusive Economic Zones (EEZ) betweenthe two countries with opposite coasts. See China and ROK Signed a FisheryAgreement, at <http://www.fmprc.gov.cn/eng/4417.html>.



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safeguarding the fishery interests of the two countries and ensuring themaintenance of normal and orderly fishery relations between the twocountries before the completion of the delimitation of maritime boundaries.

V.D.ii The Sino-Japanese Consultation on the Law of the Sea

In January and September 2000, the Chinese and Japanese sides heldthe 9th and 10th consultations on the Law of the Sea. The Chinese sideexpounded the principle of fairness in delimitation, the natural extension ofChina's continental shelf to the Okinawa sea trough and the sovereignty of theDiaoyu Island. Whereas the Japanese side stressed its proposition on themedian line and explained in detail the co-existence of China and Japan onone continental shelf. The Japanese side also expressed its grave concern overthe activities of the Chinese scientific exploration vessels in the East Chinac 147

Sea.In December 2001, the two sides continued to exchange opinions on

148these questions in the 12th mutual consultation on the Law of Sea.

V.D. Sunken Ship in East China Sea

On December 22, the Japanese Maritime Safety Agency chased andexchanged fire with an unidentified ship that later sank in the East China Sea.The location where the crossfire and sinking of the boat occurred onDecember 22 is on the Chinese side beyond the overlapping seawatersclaimed by both sides. The Chinese side has expressed its serious concern overthe use of force of the Japanese side in chasing the unidentified ship as well asthe sinking of the ship within the exclusive economic zone of China and askedJapan to further inform it of the incident.'49

See China's Maritime Demarcation and Bilateral Fishery Affairs, at<http://www.fmprc.gov.cn/eng/14698.html>.See China's Maritime Demarcation and Bilateral Fishery Affairs, at<http://www.fmprc.gov.cn/eng/14698.html>.See China in the Field of the Law of the Sea (in Chinese), at<http://www.fmprc.gov.cn/chn/3132.html>.See Spokesperson on the Report that the Japanese Maritime Safety Agency Chasedand Exchanged Fire with an Unidentified Suspicious Ship (Dec. 23, 2001), at<http://www.fmprc.gov.cn/eng/22666.html> and Chinese Ministry of ForeignAffairs Press Release on Foreign Ministry Spokesperson's Press Conference (Dec.25, 2001), at <http://www.fmprc.gov.cn/eng/2281 l.html>.



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VI. Human Rights

VIA. Policies and Practices In General

The policies and practices of China in human rights field in a generalsense may be traced from the statements made by Chinese Representatives atthe 57th session of the Commission on Human Rights, which was held fromMarch 19 to April 27, 2001,15° and the White Paper on China's HumanRights issued by the Information Office of the State Council on April 9, 2001.

VlA.i. Civil and Political Rights

In the Statement by the Chinese Delegation under Item 11 on Civil andPolitical Rights, the Chinese Representative identified the steps taken and thesuccess achieved by Chinese Government. First, great efforts have been madeby the legislature to improve legislation and enhance its supervisory role byenacting new statutes and carrying out the examination of implementation oflaws, which resulted in 2000 alone the passage of 14 laws, the acceptance of12 bills for consideration and the completion of examination ofimplementation of the Law On Criminal Procedure. In 2001, the StandingCommittee of the National People's Congress has placed the drafting of thelaw of supervision in its legislative agenda and will carry out another round ofexamination of implementation of laws, the noticeable one of which isOrganizational Law of Village Committees.

Second, judicial reform has been under way to provide legal guaranteefor the protection of human rights. Emphasis has been laid on promotion ofprocedural justice by strictly abiding by the procedural rules, improving thesystem of burden of proof and legal assistance procedure. Moreover, measureshave been taken to promote the transparency in the court system.

Third, freedom of speech is effectively guaranteed by the Constitutionand the government practice, which may be exemplified by establishment ofspecial offices attached to governments at all levels to handle complaints fromthe public. Furthermore, the media, especially rapidly-developing internet, hasbeen playing an important role in expanding the freedom of speech forcitizens.

Fourth, the achievements in protecting freedom of religious belief maybe demonstrated by the steadily increase of religious believers, which currentlyadds up to over 100 million believers of Buddhism, Taoism, Islam,Catholicism and other Christian religions. Moreover, their influence has been

ISO

See <http://www.unhchr.en/html/menu2/2/57chr/57mam.htJii>.



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improved as more than 17,000 religious personalities are elected deputies tothe people's congress and political consultative conference at various levels.

Fifth, the rights of the detained are respected and protected, who areentitled to protection granted by the Criminal law, Criminal Procedural Law,Prison Law, People's Police Law, Law on Judges and State CompensationLaw, according to which torture and other inhumane treatments are strictlyprohibited.151

VLA.ii.a. Economic Social and Cultural Rights

On April 2, 2001, Mr. Shen Yongxiang, Alternate Representative of theChinese Delegation delivered his speech under Item 10 on Economic Socialand Cultural Rights. After recalling this category of rights as an indivisiblepart of fundamental freedom, and the deteriorating situations for developingcountries owing to irrational international economic order, he put forwardChinese observations in three respects. First, new rules should be created onthe basis of full participation and democratic consultation formulated toensure that economic globalization benefit all states especially the developingstates, and that the developing countries enjoy equal right to decision-makingand rule-formulating process in international economy.

Second, the developed countries and relevant international financialinstitutions should join their hands with China, who has started to implementits last year's commitment to reduce and cancel the debts owed by someAfrican countries to China to the volume of 10 billion RMB Yuan, in relievingdeveloping countries from the burden of heavy debts.

Third, the international community and the United Nations shouldstress equal treatment at two levels: (a) to treat equally all human rights andfundamental freedoms, rather than valuing more civil and political rights atthe expense of economic, social and cultural rights, and (b) to treat equally allmembers of the international community, and to refrain from exaggeratingthose less desirable problems in the developing countries with a microscopewhile covering up those of their own and other countries widi a fig leaf.

VlA.iii Right to Development

Under Item 7 on die Right to Development, Ambassador Wang Shijie,Advisor to the Chinese Delegation, stated, in part:

See the full text of the statement, at

152<http://www.fmprc.gov.cn/eng/12258.html>.See the full text of the statement, at<http://www.fmprc.gov.cn/eng/12257.html>.



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In order to realize the right to development, all countries should, underthe guidance of the principles and purposes of the UN Charter, respectthe principle of the state sovereignty and equality, recognize thediversified nature of the world, respect the right of every country tochoose its social system and path of development on its own initiativeand in the light of its specific national conditions, and ensure commondevelopment of different nationalities and civilizations. In the newcentury, various countries should promote the democratization ofinternational relations, establish a fair and equitable internationalpolitical and economic order, and guarantee the right of equalparticipation of developing countries in the decision-making of globaleconomic affairs. The international community should also create afavorable international environment for development through variousmeasures such as adjusting the system of international financialinstitutions, opening up of the markets of developed countries todeveloping countries, and the expansion of trade with and the transfer ofnew and high tech to the latter. At the same time, the developedcountries should pay close attention to the special difficulties of thedeveloping countries and actively engage in international cooperation.They should adopt measures such as the provision of ODA and debtrelief to help the developing countries develop their economy, eliminatepoverty as early as possible and realize the right to subsistence anddevelopment.

In respect of the Working Group on the Right to Development, Chinaexpressed her satisfaction with and support for the work done and for thefollow-up process.

VlA.iv. International Mechanism, the Commission and the Sub-Commission

Under relevant items, China made statements respectively uponEffective Function of International Human Rights Mechanism, Organizationof Work of the Commission and Sub-Commissions. In respect of treaty bodies,China observed:

When considering the reports submitted by the contracting parties, thetreaty bodies should take into full account the different circumstances, levels ofeconomic development and social-cultural backgrounds of different countriesand should establish a relationship of mutual respect, cooperation anddialogue on an equal footing with them. The treaty bodies should work in

See the full text of the statement, at<http://www.frnprc.gov.cn/eng/12268.html>.

154 Ibid.



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strict compliance with their mandates and adhere to the principle of fairnessand objectivity. In recent years various problems have emerged in thereporting system, such as delayed submission of reports, backlogs of reports tobe considered and postponement of considerations. We hope that the treatybodies concerned will consider the following suggestions: that the repetitivecontents required by different treaty bodies be avoided so as to reduce theburden of the contracting parties; that study be conducted on the possibility ofsubmitting consolidated reports by contracting parties on the implementationof several conventions; that a code of conduct for the treaty bodies beformulated; and that exchanges and dialogues between the treaty bodies andthe contracting parties be increased.

With regard to organization of work of the Commission, China providedfive proposals: (1) advocating the principle of equality, democracy and mutualrespect; (2) eschewing "Cold War" mentality and replacing confrontation withdialogue; (3) putting more emphasis on social, economic and cultural rights; (4)improving the preparation for the meeting, namely, resolving the problem oflate issuance of Commission documents and reducing the session from 6 weeksto 4 weeks; and (5) regulating the activities of the NGOs to prevent the abuseof consultant status.

As for the Sub-Commission, China maintained that the Sub-Commission should undergo constant reform to adapt to the new situation,the direction of which should be: (1) replacing political confrontation withinternational cooperation; (2) increasing efficiency; and (3) effectivelyperforming its function as an expert and consultative body. Furthermore,China made several concrete expectations: (1) the Sub-Commission become aforum for intensifying cooperation and dialogue in human rights field; (2) theSub-Commission carry on its work on thematic studies by giving specialattention to the problems confronting developing countries; and (3) the Sub-Commission further improve its efficiency.157

See the full text of the statement, at<http://wvw.fmprc.gov.cn/eng/12263.html>.See the full text of the statement, at<http://www.fmprc.gov.cn/eng/12264.html>.See the full text of the statement, at<http://www.fmprc.gov.cn/eng/12262 .html>.



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158VlA.v. The 2001 Chinese White Paper on Human Rights in China

The practice of issuing white paper on human rights dated back in 1991,when the first document on human rights entitled "Human Rights in China"was published in October by Information Office of the State Council.Afterwards, a series of white papers on this issue came out. As a result, therehave been 21 write papers published on human rights. Seven of these dealwith comprehensive situations and the rest focus on a specific aspect such asgender issues, Tibet or freedom of religious belief.159

The latest comprehensive white paper on human right entided "Progressin China's Human Rights Cause in 2000" was published in April 2001, whichaddressed the human rights situations in China in seven parts.

In Part I, "The Improvement of the People's Rights to Subsistence andDevelopment," after emphasizing pride of place enjoyed by the right tosubsistence and development, the Paper identified the efforts by ChineseGovernment to guarantee the full enjoyment of this fundamental right, whichlied in (1) accelerating economic development and raising the living standardof people and (2) eliminating poverty.

In Part II, "The Guarantee of Citizens' Political Rights," the Paperspecified the Chinese efforts to perfect the People's Congress System and theMulti-Party Cooperation and Consultation System, which are thefundamental components of Chinese political system. Moreover, according tothe Paper, the democracy at the grass-root level was promoted in rural area bycarrying out direct election and making the villages affairs transparent.

See the full text of the white paper, at<http://english.peopledaUy.com.cn/200104/09/eng20010409_67254.html> and<http://english.peopledaUy.com.cn/200104/09/eng20010409_67255.html>.These documents are: (1) comprehensive ones: Human Rights in China (1991); TheProgress of Human Rights in China (1995); Progress in China's Human RightsCause in 1996 (1997); Progress in China's Human Rights Cause in 1998 (1999);Fifty Years of Progress in China's Human Rights (2000); Progress in China'sHuman Rights Cause b 2000 (2001); (2) the ones on Tibet: Tibet: Its Ownershipand Human Rights Situation (1992); New Progress in Human Rights in the TibetAutonomous Region (1998); National Minorities Policy and Its Practice in China(1999); The Development of Tibetan Culture (2000); Tibet's March TowardModernization (2001); (3) others: China's Population and Development in the 21stCentury (1991); Criminal Reform in China (1992); Intellectual Property Protectionin China (1994); The Situation Of Chinese Women (1994); Family Planning inChina (1995); The Grain Issue in China (1996); Environmental Protection in China(1996); The Situation of Children in China (1996); Freedom of Religious Belief inChina (1997); White Paper on Narcotics Control (2000). See<http://www.humanrights-china.org/ whitepapers/menu_w.htm>.



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In Part III, "Judicial Guarantee for Human Rights," the Paper saidChinese Government had never spared her efforts to achieve this sacred goalby establishing a complete legal system, punishing the outlaws, deepening thejudicial system, providing judicial assistance for parties in financialdifficulty,160 accelerating the development of lawyer system, and protecting therights of the detained.

Part IV discussed the economic, social and cultural rights of citizens,detailing the Government's effort to protect among others worker's rights, andto enforce the right to education. In respect of worker's rights, China hasplaced great emphasis on the right to work and right to social security byregulating the job market,'6' providing job training,'62 establishing a socialinsurance system, and ensuring a minimum standard of living for urbanresidents. As regards to education, the achievements are attested to by the risein investment and the attempt to provide state loans for students.

The rights of women and children, as weaker groups in need ofprotection, have drawn special attention from all over the world. This wasaddressed in Part V, "Protection of Women and Children's Rights." As aresult of the unremitting efforts taken by Chinese Government, according tothe Paper, women take active part in every sector of society and their socialstatus has gready improved. Moreover, there has been great progress inwomen's educational level and health conditions. The Government also tooklegal measures to protect women's rights against infringement, which led tothe ratification of the Law on Marriage. ' In respect of Children's rights,attention was paid to children's health such as reducing the infant mortalityand immunizing them from fatal diseases. In addition, favorable conditionswere created for the up-bringing of children.'64

The issue of minorities is critical for the unity and stability of a multi-national state and there is no exception to China. In Part VI, "Equal Rights

In July 2000, the Supreme Court of China promulgated the Regulations onProviding Judicial Assistance for Litigants Actually in Financial Difficulty, in aneffort to guarantee that poor people can exercise their rights in litigation.The Regulations on the Administration of the Labor Market in accordance with theLabor Law was promulgated by Chinese government in 2002.In 2000, the Chinese government formulated the Regulations on Employing SkilledWorkers and the Procedures for Implementation of the Training of Labor Reserves.The amendments to the Law On Marriage were approved by the 4th session of the9th National People's Congress in March, 2001.A program for the safe and healthy development of Chinese children was launchedin October 2000, aimed at forging a healthy social climate for children, helpingthem stay away from dropout, disease, injury and crime.



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and Special Protection for Ethnic Minorities," the policies and practices in thisrespect were expounded. China's efforts to protect minority rights are two-fold. The first, the recognition of such rights by means of legislation such asthe Constitution and the Law Governing Regional Ethnic Autonomy, thelatter just being amended in February 2001 to upgrade the system of regionalethnic autonomy as part of the basic political system of China. Second, therealization of these rights through the adoption and implementation of anassistance policy in economic, social, educational and cultural fields.

In the last part on the international cooperation between China andother international organizations and states, the Paper highlighted the numberof international conventions on human rights to which China is a party, thecooperation between China and the UN and the human rights dialogues withother states or group of states. In conclusion, the Paper noted that the progressof human rights, a historical one of continuous advance, was an importantaspect of the social development of all countries. China will continue herefforts to build democracy and rule of law in the light of her own conditionsand at the same time carry out wide-ranging cooperation and exchanges withother countries.

VLB. Actions in Specific Fields

Vl.B.i. Ratification of International Covenant on Economic, Social and Cultural Right

On February 28, 2001, the Standing Committee of the NationalPeople's Congress adopted the decision of the NPC Standing Committee OnRatifying the International Covenant on Economic, Social and CulturalRights,166 which was signed by China on October 27, 1997.

Upon ratification, Chinese Government confirmed a statement madeupon signature on the invalidity of Taipei authorities's accession in the nameof China in 1967 and made another two statements respectively on the rightto trade union and the applicability of the Covenant to Hong Kong andMacao Special Administrative Regions. These states are as follows:

Statement made upon signature and confirmed upon ratification:

China has approved or acceded to 18 international conventions on human rights atthe issuance of this white paper.See Spokesperson on the ratification of International Covenant on Economic, Socialand Cultural Rights by NPC (March 1, 2001), at<http://www.fmprc.gov.cn/eng/8733.html>.



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The signature that the Taiwan authorities affixed, by usurping thename of "China," to the [said Covenant] on 5 October 1967, is illegaland null and void.

Statement made upon ratification:

In accordance with the Decision made by the Standing Committee ofthe Ninth National People's Congress of the People's Republic ofChina at its Twentieth Session, the President of the People's Republicof China hereby ratified the International Covenant on Economic,Social and Cultural Rights, which was signed by Mr. Qin Huasun onbehalf of the People's Republic of China on 27 October 1997, anddeclares the following:

1. The application of Article 8.1 (a) of the Covenant to the People'sRepublic of China shall be consistent with the relevant provisions ofthe Constitution of the People's Republic of China, Trade UnionLaw of the People's Republic of China and Labor Law of the People'sRepublic of China;

2. In accordance with the official notes addressed to the Secretary-General of the United Nations by the Permanent Representative ofthe People's Republic of China to the United Nations on 20 June1997 and 2 December 1999 respectively, the International Covenanton Economic, Social and Cultural Rights shall be applicable to theHong Kong Special Administrative Region of the People's Republicof China and the Macao Special Administrative Region of thePeople's Republic of China and shall, pursuant to the provisions ofthe Basic Law of the Hong Kong Special Administrative Region ofthe People's Republic of China and the Basic Law of the MacaoSpecial Administrative Region of the People's Republic of China, beimplemented through the respective laws of the two specialadministrative regions.

The applicability of the Covenant to Hong Kong needs furtherillustration. Before China's ratification of the Covenant, it had been applicableto Hong Kong according to a notification to that effect from the UnitedKingdom in 1976. After the resumption of exercise of sovereignty overHong Kong by the Government of China on July 1, 1997, the Covenantcontinued to be applied in this region according to an official note addressed

See <http://www.unhchr.ch/html/menu3/b/treaty4_asp.htm>.See <http://wvvw.unhchr.ch/html/menu3/b/treaty4_asp.htm>.



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to the Secretary General of the United Nations on June 20, 1997. On April20, 2001, the Secretary-General received from the Government of China thefollowing communication:

1. Article 6 of the Covenant does not preclude the formulation ofregulations by the HKSAR for employment restrictions, based on placeof birth or residence qualifications, for the purpose of safeguarding theemployment opportunities of local workers in the HKSAR.

2. "National federations or confederations" in Article 8.1(b) of theCovenant shall be interpreted, in this case, as "federations orconfederations in the HKSAR," and this Article does not imply the rightof trade union federations or confederations to form or join politicalorganizations or bodies established outside the HKSAR.19

According to a HKSAR spokesman, the two statements are directed tosafeguard the employment opportunities of local workers and clarifyinterpretation on the right of trade unions to establish federations orconfederations in Hong Kong.

VLB.ii. Convening of National Religious Working Conference

Freedom of religious belief in China was a much-debated issue in Year 2001,on which both the US and the EU expressed their concerns and China madeher corresponding responses (see subsection VLC). To clarify Chinesepositions on this problem, the National Religious Working Conference washeld in Beijing by the Central Committee of the Communist Party of China(CPC) and the State Council between December 10-12, 2001.m Chinese topleaders Jiang Zemin, Li Peng, Zhu Rongji, Li Ruihuan, Hu Jintao, WeiJianxing and Li Lanqing all took part in the meeting, together with seniorregional and ministerial officials. President Jiang Zemin and Premier ZhuRongji made remarks respectively on Chinese policies of religion. In hisspeech, the President called for the faithful implementation of the party'spolicy of religious freedom and administering religious affairs in accordancewith the law. He also spoke of the necessity of guiding religious beliefs so thatthey can fit in with China's socialist society. While reiterating China's policy ofprotecting religious freedom, he warned that nobody would be allowed to

See <http://wvw.unhchr.en/htinl/rnenu3/b/treaty4_asp.htm>.170 See ICESCR to Continue to Apply to HKSAR , at

171<http://english.peopledaily.com.cn/200104/28/eng20010428_68798.html>.See Editorial from People's Daily, at<http://english.peopledaily.com.cn/200112/13/eng20011213_86580.shtml>.



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abuse religion in order to sabotage the party, socialism or national security. Inaddition, the President expressed China's wishes to encourage and support theexchanges between Chinese and foreign religious societies with a view toenhance mutual understanding and friendship. But he also made it clear thatinfiltration by overseas forces under the cloak of religion shall be resolutelyresisted by China. At last, the President pledged closer consultations betweenthe Party and the government on one side, and religious circles on the other,especially on major issues concerning religion.

The Premier discussed the management of religious affairs. He stressedthe importance of administering religious affairs in accordance with the law,and vowed to crack down on all forms of evil cults. At the same time, he calledfor the establishment of management networks pertaining to religions at thecounty, town and village levels, in addition to better training of grassrootsofficials in religious policies.

Upon conclusion of the meeting, the official newspaper People's Dailyissued an editorial entitled "Closely Uniting With Religious Believers In TheJoint Effort For The Great Cause of Building Socialism With ChineseCharacteristics," detailing the basic tasks for the religious work in the earlynew century as follows:

Comprehensively implementing the Party's policy on the freedom ofreligious beliefs, administering religious affairs according to law, activelyguiding religions to adapt themselves to the socialist society, persisting inthe principle of independent administration, consolidating anddeveloping the patriotic united front of the Party with the religious circle,maintaining stability and enhancing unity, and exerting ourselves topromote the socialist modernization drive, realize the completereunification of the motherland, and defend world peace and boostcommon development.

VI. C Relationship With Other States and International Organizations

Vl.C.i. Sino-UN Cooperation

The year 2001 witnessed progress in cooperation in the field of humanrights between China and UN, especially with UN High Commissioner forHuman Rights. To fulfill the Memorandum of Understanding concluded in

172

See Meeting Outlines China's Policy on Religion for the New Century, at<http://english.peopledaUy.com.cn/200112/13/eng20011213_86542.shtml>.

'"ibid.174See the Editorial, at<http://english.peopledaUy.com.cn/200112/13/eng20011213_86580.shtml>.



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2000 between the two parties on technical cooperation in the field of humanrights, three workshops were conducted in February, July and October, 2001,with each focusing on the punishment of minor crimes, the police, and humanrights education in primary and secondary schools. To promote furthercooperation with China, the High Commissioner Mrs. Robinson paid twovisits to China in February and October, holding talks with Chinese leadersand signing an agreement with Chinese authorities concerning activities to beundertaken in 2002 under the framework of the Memorandum ofUnderstanding.

VI.C .ii. Sino-USRelationship

Both trading with fires and peaceful exchange of views could be seen inthe past year in respect of Sino-US relationship in the field of human rights.On February 26, 2001 the US state department released its annual humanrights report for 2000, which included criticism of China's human rightssituation. In addition to expressing strong displeasure with and resoluteopposition to the US practice, and clarifying Chinese positions, China onthe next day issued an article entitled "US Human Rights Record in 2000."This is the second consecutive year that the Information Office of the StateCouncil has done so.1 The six-part article alleged that there existed seriousinfringement of human rights in the US and featured many aspects such ashypocrisy of American democracy, rampant violence, arbitrary judicialsystem, polarization of the society, deterioration of worker's economic andsocial rights, gender and racial discrimination, indifference to children andminority rights, infringement upon human rights of other states. Inconclusion, the article expressed the wishes of Chinese Government:

175 See the UNHCHR press release, at<http://www.unhchr.ch/huricane/huricane.nsf/newsroom>.See Spokesperson on US annual human rights report (Feb.20, 2001), at<http://www.fmprc.gov.cn/eng/8606.html>.See China Issues Article on US Human Rights Conditions (Feb.27, 2001), at<http://www.fmprc.gov.cn/eng/8476.hunl>.The heading of each part is respectively: American Democracy—a Myth, PoliticalRights Infringed; Rampant Violence and Arbitrary Judicial System AreJeopardizing the freedom and lives of US citizens; Widening Gap Between Rich andPoor and Deteriorating Situation of Worker's Economic and Social Rights; GenderDiscrimination & Ill-treatment of Children; Racial Discrimination Prevails,Minorities Ill-Treated; Waging War Frequendy and Rampandy Infringing UponHuman Rights of Other Countries. See<http://english.peopledaily.com.cn/200102/27/eng20010227_63578.htm>and<http://english.peopledaily.com.cn/200102/27/eng20010227_63579.html>.



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China would like to offer this advice to the US government: abandonyour old ways and make a new start, take effective measures to improvethe human rights record in your own country, take steps to promoteinternational cooperation in human rights, and stop ordering othercountries on the pretext of safeguarding human rights.

Another US report refuted by China was The International Religious FreedomReport for 2001, which was released on October 26, 2001. Upon the partconcerning China, Chinese Government made the following comments:

The 2001 Report on International Religious Freedom by the USDepartment of State, in its chapter on China, distorted facts and madegroundless allegations upon China's religious policy and the banning ofthe Falungong cult by the Chinese Government according to law. TheUS action is an outright violation of the norms of international relationsand a gross interference in China's internal affairs. China wishes toexpress its strong indignation and resolute opposition.

The Chinese Government protects the freedom of religious beliefaccording to law. At the same time, it prohibits any organization orindividual to engage in criminal activities under the pretext of religion.Since the founding of the PRC, especially since the adoption of thepolicies of reform and opening-up more than two decades ago, there hasbeen marked progress in China's religious undertaking. The UnitedStates is not in a position to issue its so-called report on internationalreligious freedom. Furthermore, it has no right to invent a story andmake irresponsible allegations upon and point fingers at the religioussituation in other countries.

We call on the United States to abide by the norms of internationalrelations, including that of mutual respect and non-interference in othercountries' internal affairs. The United States should stop interfering inChina's internal affairs under the pretext of religion, so as to free Sino-US ties from further damage.'80

As usual, the US and China crossed their swords at Geneva in the springof 2001 when the 57 session of Commission on Human Rights was held. TheUS introduced a draft resolution on the human rights situations in China.China moved that the Commission take no action on this draft resolution,which was granted by the Commission. This was the 10th time that the UN

See full text of the article, ibid.See Foreign Spokesman's Press Conference (Oct.30, 2001), at<http://www.fmprc.gov.cn/eng/19980.html>.



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Human Rights Commission had rejected an anti-China motion on humanrights since 1990.'8'

The atmosphere appeared to improved somewhat. During Secretary ofState Mr. Powell's visit to China in July, the two sides agreed in principle toresume the human rights dialogue between China and the US.'82 InSeptember when Foreign Minister Mr. Tang Jiaxuan paid a return visit to theUS, the two sides further agreed that China and the US would hold inter-governmental human rights dialogue in the near future. From October 9-11,the dialogue was held as scheduled at the State Department in Washington.The possibility of holding another round of the dialogue was discussed, but nofinal decision or dates had been set.184

VI. C.iii. Sino-EU Relationship

The Sino-EU case was similar to what was going on between China andthe US in 2001. However, the EU took a more cooperative attitude and thecooperation outweighed the confrontation.

In early 2001, the European Parliament adopted a resolution on China'sfreedom of religious belief, to which China expressed her strongdissatisfaction:

The resolution adopted by the European Parliament has distorted factsand wantonly slandered China's religious situation, to which we expressstrong dissatisfaction. China's Constitution guarantees its citizensreligious freedom. It is the long-term basic policy of the ChineseGovernment to respect and guarantee citizens' religious freedom.Thanks to the efforts of the governments at various levels, religiousactivities all over China including Tibet are going normally. Thereligious undertakings are further developed. This is a fact that no onecan deny. "Falun Gong" is a thorough cult that goes against humanities,society and science. The Chinese Government has banned and crackeddown on "Falun Gong" in accordance with law, which is to safeguardcitizens' fundamental religious freedom and protect human rights. Ahandful of people in the European Parliament clamored in favor of such

See Spokeswoman on China's Victory over US Anti-China Motion on Human

182Rights (Apr. 18, 2001), at <http://www.fmprc.gov.cn/eng/9888.html>.See Foreign Minister Tang Jiaxuan Held Talks with US Secretary of State Powell(July 28, 2001), at <http://www.fmprc.gov.cn/eng/16140.html>.See Foreign Ministry Spokesperson's Press Conference (Sept.25, 2001), at

184<http://www.frnprc.gov.cn/eng/18404.html>.See State Department press release, at<http://www.state.gOv/r/pa/prs/dpb/2001 /5361 .htm>.



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a cult, which cannot but arouse the indignation and opposition of theChinese people.

However, different from the US, the EU adopted a more pragmaticapproach on the relationship between China in human rights field. InFebruary 2001, a session of Sino-EU dialogue on human rights was held inStockholm. The dialogue meetings are generally held in an atmosphere ofopenness, allowing a frank exchange on issues including disregard forfundamental freedoms, arbitrary detention and re-education through labor,torture, the crackdown on pro-democracy activists, the situation of minoritiesand capital punishment. Moreover, on March 19, 2001, the EuropeanCouncil of Foreign Ministers made a decision that it would not join the UnitedStates in sponsoring the anti-China draft resolution in the UN Human RightsCommission Session that year, which was appreciated by China. To push thecooperation forward, a seminar on human rights took place in Beijing on May10-12, 2001. The seminar, which was co-sponsored by the EU SwedishPresidency and the European Commission, focused on the death penalty andthe right to education.

The above efforts were appreciated at the fourth EU-China summit inSeptember, with the joint press statement stating:

The two sides agreed to continue their dialogue on human rights andreaffirmed their commitment to work towards meaningful and positiveresults. Both sides reaffirmed that the dialogue would continue on thebasis of mutual respect and equality, and agreed that the dialogue shouldhelp promote their compliance with international human rightsstandards and co-operation with UN bodies and mechanisms in thisfield.

VII. International Economic Law

According to the arrangement made between China and the WTO, theWTO Agreement would be implemented by China in an effective anduniform manner through revising its existing domestic laws and enacting new

185

See Spokesperson on the resolution on China's religious freedom adopted by TheEuropean Parliament (February 20,2001), at<http://www.fmprc.gov.cn/eng/8264.html>.

186 See <http://europa.eu.int/abc/doc/oflF/rg/en/2001/ptl073.htm>.See <http://www.ecd.org.cn/n010518.htm>.See Joint Press Statement of the Fourth China-EU Summit (September 5, 2001), at<http://www.fmprc.gov.cn/eng/17606.html>.



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ones fully in compliance with the WTO Agreement. To pave the way forher membership, China in 2001 continued her effort to bring the relevantdomestic laws in line with the WTO rules, including the rectification of theLaw on Chinese-Foreign Equity Joint Ventures and the revision of DetailedRegulations on the Implementation of the Law on Sino-Foreign JointVentures.

VII.A. Ratification of the Law On Chinese-Foreign Equity Joint Ventures

The decision on revising the Law on Chinese-Foreign Equity JointVentures was adopted by the National People's Congress on March 15,2001.191 The direction of this revision is to lift the restrictions imposed uponJoint Ventures which are inconsistent with Chinese commitments under theWTO framework, although this is not the whole picture.

There were eight amendments made to then-existing law, which may beplaced into three categories. The first category of amendments (Article 2, 8, 9,10, 14) is a reaction to WTO rules.

Before it was revised, Clause 2 of Article 2 reads: "All activities of thejoint venture shall be carried out in accordance with the stipulations of thelaws, decrees and relevant regulations of the People's Republic of China." Asamended, the same clause reads: "All activities of the joint venture shall becarried out in accordance with the stipulations of the laws and regulations ofthe People's Republic of China."' The deletion of the word "decrees" mayserve as an echo to the requirement under WTO framework of removal ofinterference from the government with the activities of enterprises.

Another example is Article 9(4) (former Article 8(4)). The old languagewas: "Various items of insurance of a joint venture shall be covered in thePeople's Insurance Company of China." As revised, the clause reads: "Thevarious items of insurance of a joint venture shall be covered in any insurancecompanies within Chinese territory." The amendment aims to eliminate the

See Paragraph 67, Report of the Working Party on the Accession of China, at<http://www.moftec.gov.cn/moftec_cn/wto/wtolaw.html>. Also see subsectionIII.C of this survey.The Law was adopted on July 1st 1979 by the 2nd session of the 5th NPC, asamended on April 4th 1990 by the 3rd session of the 7th NPC.See Amendments to Law on CFEJV: Comparison of Its Articles Before & AfterRevision, at<http://english.peopledaily.com.cn/200103/22/eng20010322_65696.html>.See Amendments to Law on CFEJV: Comparison of Its Articles Before & AfterRevision, at<http://english.peopledaily.com.cn/200103/22/eng20010322_65696.html>.



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193conflict between the said provision and relevant ones of the Insurance Law.A further consideration may be that the old provision granted a monopoly tothe People's Insurance Company of China, which would run counter to therequirement under the GATS of granting national treatment to foreign serviceproviders.

The revision has deleted Clause 1 of the original Article 9, whichprovided that "The production and operation plan of a joint venture shallbe reported to the competent department for the record and be executedin the form of an economic contract." According to Mr. Gu Angran,director of legal system working committee of NPC Standing Committee, thedeletion aimed mainly at enabling joint ventures to enjoy more independentright in operation, which is the fundamental component of market economyforming the basis of the WTO.'9+

In the amended Law, the original Article 9 is changed into Article 10,Clause 2 of the original Article 9 is altered into Clause 1 of Article 10, theoriginal Clause reads: "The raw and semi-finished materials, fuels, parts andauxiliary equipment needed by the joint venture shall be first bought in Chinaas far as possible, they can also be bought directly in the international marketwith foreign exchange raised by the joint venture itself." The amendedprovision now stipulates: "The raw and semi-finished materials, fuels andother materials needed by the joint venture within its approved scope ofbusiness shall either be bought in the domestic market or in the internationalmarket in accordance with the principle of fairness and reasonableness." Thisamendment is a direct response to TRIMs, according to which any local

195

content requirement is prohibited.

193

Article 6 of the Insurance Law provided that: Any person or entity within theterritory of the PRC that needs insurance coverage within the PRC territory shallinsure himself/herself/itself with insurance companies established within theterritory of the PRC. See <http://www.chubb.com/china/laws/inslawl.htm>See Joint Ventures to Enjoy More Rights (amendments to the JV law), at<http://ce.cei.s;ov.cn/frame_2.htm>.

195

Annex to TRIMS, the illustrative list provides, in part: "TRIMs that are inconsistentwith the obligation of national treatment provided for in paragraph 4 of Article IIIof GATT 1994 include those which are mandatory or enforceable under domesticlaw or under administrative rulings, or compliance with which is necessary to obtainan advantage, and which require: (a) the purchase or use by an enterprise ofproducts of domestic origin or from any domestic source, whether specified in termsof particular products, in terms of volume or value of products, or in terms of aproportion of volume or value of its local production." See<http://www. wto.org/english/docs_e/legal_e/18-trims.wpf>.



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After revision, the original Article 14 is changed into Article 15 to whicha new clause is added. The new clause provides: "The various parties to a jointventure, which do not include arbitration clauses in their contract, or whichfail to reach a written arbitration agreement, may sue to the people's court."This amendment is to correct the loophole in the then-existing law and at thesame time afford the joint ventures sufficient domestic remedies.

The second category of amendments (Article 6, 7) concerns theprotection of the rights of workers in the joint ventures.

Before it was revised, Clause 4 of Article 6 provided: "The employmentand dismissal of workers and staff members of a joint venture shall bestipulated in the agreement or contract between various parties to the jointventure according to law." After revision, the new version reads: "Theemployment, dismissal, remuneration, welfare, labor protection, laborinsurance and other matters relating to workers and staff members of a jointventure shall be stipulated through concluding contract according to law."

Furthermore, another new article has been adopted as Article 7, whichprovides: "Workers and staff members of a joint venture establish a tradeunion organization according to law, and carry out trade union activities tosafeguard their lawful rights and interests. The joint venture shall providenecessary conditions for the activities of its trade union."

These two amendments were proposed by the deputies to the NPC, whoexpressed deep concern on many reported cases of the infringement ofworkers' rights in the joint ventures.'96

The third category (Article 15) deals with the procedure for revision. Inthe revised law, the power to make the decision revising the Law is removedfrom the NPC and invested with the Standing Committee thereof. Thelanguage that "The power of amendment to this Law is vested with theNational People's Congress" is deleted from the original Article 15. Mr. GuAngran, Director of Legal System Working Committee of NPC StandingCommittee commented that this stipulation, which was made in the earlyyears when China began to open its door to the outside world, was intended toensure the stability of the country's investment environment.'97

The action taken by the NPC in 2001 is the last part of the campaign torevise the laws governing foreign investments, following the actions in October

See More Changes Made in Draft Amendments to Joint Venture Law, at<http://english.peopledaily.com.cn/200103/14/eng20010314_65000.html>.See Amendments to Law on Chinese-Foreign Equity Joint Ventures Submitted toNPC, at<http://english.peopledaily.com.cn/200103/09/eng20010309_64556.html>.



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2000 when the amendments were made to Law on Chinese-ForeignCooperative Joint Ventures and the Law on Wholly Foreign-Owned

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enterprises.

VII.B. Revision of the Detailed Regulations on the Implementation of the Law on Sino-199

Foreign Joint Ventures

On July 22, 2001, the State Council amended the Detailed RegulationsOn The Implementation Of The Law On Sino-Foreign Joint Ventures.

The 2001 amendments are not simply a follow-up to the amendmentsmade in March to the Law on Chinese-Foreign Equity Joint Ventures.Rather, the revision is a comprehensive one. More than one third of thearticles were amended. Some of these amendments are made to give effect tothe Chinese commitments under the WTO framework. Another group ofamendments is introduced to eliminate the conflicts between the then-existingDetailed Regulation and current laws and regulations. Others are simply tocorrect the legislation loopholes.200

These amendments deal with many aspects, including criteria for settingup an equity joint venture, supervising authority of an equity joint venture,export radio of products, reduction of registered capital, in-kind capitalcontribution, technology contribution, chairman and vice-chairman, purchaseof equipment and raw materials, foreign exchange balancing, andinterpretation authority and arbitration.20'

VII.C. China-ASEAM Free Trade Area

At the 5th leadership meeting of ASEAN (Association Southeast AsianNations) Plus China held in Bandar Seri Begawan, capital of Brunei onNovember 6, 2001,202 the leaders from both sides gave green-light to a report

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After revision, the local content requirement, foreign exchange balancingrequirement and export requirement were brought to an end. See China, on Door-Step of WTO Accession, Amends Laws on Foreign Investment, at<http://english.peopledaily.com.cn/200010/26/eng20001026_53609.html>.The Detailed Regulation was promulgated by the State Council on 20 September1983 and amended by the State Council on 15 January 1986 and on 21 December1987.See <http://www.ssd.com/libraiy/pdf/china_update-08-2001 .pdf>.Ibid. For more materials, see <http://www.seafront.com.cn/publications.htm>.

202 The first ASEAN plus China (ASEAN Plus One) meeting was held in 1997, whichin practice is preceded by ASEAN summit and the leadership meeting of ASEANplus China, Japan and Republic of Korea (ASEAN Plus Three). See<http://embassy-philippines.fmprc.gov.cn/eng/20279.hunl>.



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submitted by the Expert Group for China-ASEAN Economic Co-operationsuggesting that China and ASEAN countries establish a free trade area withinthe next 10 years. At the same time, they authorized their ministers andother senior officials from the relevant sectors to start Free Trade Agreementnegotiations at an earlier date.

The idea of establishing a free trade area between China and ASEANwas first put forward at last ASEAN summit in 2000 by Chinese Premier ZhuRongji,203 which got positive reactions from his counterparts of ASEAN states.After that, concrete measures were taken by both sides to achieve the goal. InMarch 2001, the third meeting of ASEAN-China Joint CooperationCommittee was held in Chengdu, China, at which the ASEAN-China ExpertGroup on Economic Cooperation was established, whose function is to studythe feasibility of establishment of a free trade area between China andASEAN. After thorough consultations, the Expert Group submitted a reportseconding Chinese suggestions, which got the approvals successively from theeconomic ministers and the state leaders. At present, contacts at working levelhave begun. China has sent a special delegation to some ASEAN states tostudy the situations there; at the same time, ASEAN held the economic seniorofficials' meeting, conducting initial research on launching Free Trade Areanegotiations with China.

The next step will be to formulate a road map for negotiations throughconsultation so as to launch negotiations.

China attached great importance to and expressed her firm support forthe establishment of the free trade area between China and ASEAN onvarious occasions. At the leadership meeting between China and ASEAN in2001, Chinese Premier Zhu Rongji in his speech entitled Working Together

See Free Trade Zone to Promote Regional Economy, at<http://english.peopledaily.com.cn/20011 l/07/eng20011107_84086.html>.See Spokesman on the Improvements in Preparing to Establish the Free Trade Areabetween China and ASEAN (Feb.20; 2002), at<http://icelandembassy.fmprc.gov.cn/eng/25166.html>.

3 See Free Trade Zone to Promote Regional Economy, at<http://english.peopledaUy.com.cn/20011 l/07/eng20011107_84086.html>.See Speech by Chinese Foreign Minister Tang Jiaxuan at the Meeting of China-ASEAN Dialogue July, 26, 2001), at<http://www.fmprc.gov.cn/eng/16043.html>.See Spokesman on the Improvements in Preparing to Establish the Free Trade Areabetween China and ASEAN (Feb.20, 2002), at<http://icelandembassy.fmprc.gov.cn/eng/25166.html>.



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to Create a New Phase of China-ASEAN Cooperation, voiced theappreciation of and the commitment to the goal:

[T]o promote the establishment of a China-ASEAN free trade area. Atpresent, the Expert Group for China-ASEAN Economic Cooperationhas submitted a report suggesting that China and ASEAN countriesestablish a free trade area within 10 years. This is a major event forpromoting the long-term development of China-ASEAN relations. TheChinese Government gives it full support. China is ready to work withASEAN to launch negotiations on the free trade area as soon as possible.

In order to promote the establishment of China-ASEAN free tradearea and support ASEAN's efforts to narrow the development gapamong its members, China will grant special preferential tariff treatmentto three underdeveloped countries of ASEAN—Laos, Cambodia andMyanmar in good time. Relevant details could be discussed throughbilateral channels."

According to Mr. Shi Guangsheng, Minister of Foreign Trade andEconomic Cooperation, the envisaged free trade zone will be the first regionalfree trade arrangement made by China and other countries, which willembrace 1.7 billion consumers, nearly US$2,000 billion worth of GDP and atrade total of US$ 1,200 billion. Calculated in accordance with population, thiswill be the largest free trade zone in the world. From the perspective ofeconomic scale, the China-ASEAN free trade zone will be the largest freetrade zone formed among the developing countries (except Singapore).

See Working Together to Create a New Phase of China-ASEAN Cooperation—Address by Premier Zhu Rongji at 5th China-ASEAN Summit, at<http://www.fmprc.gov.cn/eng/21860.html>.See Seize Opportunity, Meet Challenge, and Participate in EconomicGlobalization, at<http://english.peopledaily.com.cn/200112/ 19/eng20011219_87044.shtml>.



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Chinese Journal of International Law-2002-Qiang-328-86.pdf

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