U.S.-China Strategic & Economic Dialogue Will Be Anything Less than Dull

Only a handful of the 200 U..S. officials at today's Strategic & Economic Dialogue in Beijing

Only a handful of the 200 U..S. officials at today's Strategic & Economic Dialogue in Beijing

The second U.S-China Strategic & Economic Dialogue (S&ED) is off to an interesting start in Beijing.  The U.S.’ agenda for the talks – agreement on Iran sanctions, change in China’s currency policy, and greater openness of China’s procurement market for foreign companies – was largely overshadowed this morning by South Korea’s announcement that it will hold North Korea responsible for the torpedo attack on a South Korean war ship, the Cheonan, in March 2010 which resulted in the death of 46 sailors.

As the S&ED was set to open in Beijing, South Korea’s president, Lee

Chinese President Hu Jintao greets U.S. Secretary of State Hillary Clinton at Monday's opening of the S&ED

Chinese President Hu Jintao greets U.S. Secretary of State Hillary Clinton at Monday's opening of the S&ED

Myung-Bok, issued the strongest statement against North Korea in decades and announced that all trade between the Koreas would be suspended, investment would be stopped, and North Koreans would not be permitted to visit South Korea.  Additionally, South Korea will also reinstall megaphones at the border between the two countries and resume anti-North Korean broadcasting, a practiced it stopped in 2004 when tensions were easing between the two Koreas.  Previously, North Korea stated that any retaliation by South Korea in response to the Cheonam incident would be seen as an act of war; today it announced planned attacks on any South Korean megaphones at the border.

In her remarks during the S&ED’s opening ceremony, Secretary of State Hillary Clinton, who is accompanied by 200 U.S. officials on this trip, brought up the issue of North Korea’s increasing “belligerent” actions and the need for the U.S. and China to work together in regards to North Korea.  Chinese President Hu Jintao did not mention North Korea in his speech.

But President Hu did bring up the currency issue in his remarks, to the surprise of most.  In his speech, President Hu promised that China would continue to reform its currency policy, but noted it would be on China’s terms and such reform would be gradual.

With the delay of the Treasury Department’s report on China’s currency policy and recent op-eds in the state-controlled Chinese press regarding the need to give more flexibility to China’s currency — the yuan — it appeared that China would make some sort of concession on the currency issue.  However, the recent crisis in Greece and the European Union, which has resulted in a 20% drop in the value of the Euro against the dollar, changed that opinion.  By effectively tying the yuan to the dollar, as the dollar gets stronger against the Euro, Chinese goods become more expensive in the European Union, China’s largest export market.  So President Hu’s promise to do something about China’s currency policy was a bit of a surprise.  And the public nature of the comment was even more surprising since the revaluation of the yuan is a hot-button issue for the Chinese domestically: Beijing does not want to appear to be placating to U.S. demands.

But what remains to be seen is when: when will China adjust its currency policy.  Don’t expect that question to be answered at the S&ED which concludes Tuesday afternoon.

Recent Violence in China – A Reflection of Income Inequalities

childrenRegular China Law & Policy blogger, Marcy Nicks Moody, just posted an interesting piece over at Foreign Policy Digest.  In the past three months, China has seen a spate of killings of children, mostly kindergarteners while attending school.  Why this sudden rise in gruesome murders in a society that places so much emphasis on “social stability” and seeks to establish a “harmonious society”?  In ‘Some Got Rich First–and Richer Later: The Uneven Nature of China’s Economic Development,’ Marcy looks at these horrific incidents, contemplates possible causes and finds the growing income inequality in China as a possible reason.

Some Got Rich First—and Richer Later: The Uneven Nature of China’s Economic Development

By Marcy Nicks Moody

Over the last two months, a spate of violent attacks against schoolchildren in China’s eastern provinces have heightened authorities’ concerns about the instability of China’s poor and mentally ill, many of whom feel left behind as the rest of China gets wealthier.   On March 23, a retired doctor, reportedly driven by a desire to take revenge on the rich, stormed a local elementary school in the southeastern province of Fujian and stabbed eight children to death, injuring five others.  The shocking incident inspired four copycat killing sprees by unemployed or under-employed adult males, most of whom reportedly suffered from mental illness.  The killings highlight the need for a better social safety net and social welfare services for the mentally ill, and put into sharp focus the uneven nature of China’s economic development and its concomitant social pressures.  Soaring income inequality, widespread perceptions of helplessness and the corrupt, self-seeking behavior of some Chinese government officials have become part of the public debate as the world seeks to understand these tragedies and China seeks to prevent future ones.

….CLICK HERE TO READ MORE….

The U.S.-China Human Rights Dialogue: There is News to Report!

us20and20china20flagsAfter a two year hiatus, the U.S. and China resumed their human rights dialogue last Thursday and Friday in Washington, D.C.  Don’t be alarmed if this is the first you heard of the Dialogue; the U.S. mainstream press barely covered it.

The U.S-China Human Rights Dialogue is subject to criticism and much of it viable.  China doesn’t send anyone with much power to negotiate (for last week’s Dialogue the highest official was Chen Xu, Director General of the Department of International Organization of the Ministry of Foreign Affairs); the Dialogue itself is conducted largely behind closed doors and it is unclear what is accomplished; and there are never benchmarks set to determine if these dialogues actually produce any results.

But last week’s U.S.-China Human Rights Dialogue, even with the little that is

Assistant Secretary, DRL, Michael Posner

Assistant Secretary, DRL, Michael Posner

known about it, is newsworthy; it reflects a changing interpretation of human rights in the U.S.-China relationship.  From what can be gleaned from Department of State press conference, the new emphasis in human rights appears to be almost exclusively rule of law.  While Mike Posner, Assistant Secretary of State for the Bureau of Democracy, Human Rights and Labor, highlighted five different topics which were discussed at the dialogue (religious freedom, labor rights, freedom of expression, rule of law, and racial discrimination), the focus of the Chinese delegation’s field trip on Friday was largely legal.  On Friday, the Chinese delegation made the following visits: a meeting with Justice Sandra Day O’Connor to discuss rule of law and an independent judiciary; a talk with Cardinal McCarrisk at Catholic Charities’ Anchor Mental Health Center to discuss the relationship between the religious community and government as it pertains to human and social services; discussions with the Federal Mediation and Conciliation Services concerning labor rights and collective bargaining; and a talk with Thomas Crothers at the Carnegie Endowment for International Peace regarding the interplay among law, human rights and food safety.

In addition to the focus of an effective legal system as a part of human rights, here are some other interesting takeaways:

Why discuss with delegates from an atheist country the role of religious organizations?

This is perhaps the most interesting and most puzzling aspect of the talks.  China, run by the Communist Party, is a self-declared atheist country.  In fact, all of the Chinese delegates from last week are admitted atheists.  To be a Chinese official, Communist Party membership is a prerequisite; to be a member of the Chinese Communist Party renunciation of religion (Buddhist, Islam, Christianity, etc) is necessary.   So given this fact, the State Department trip to Catholic Charities offers an interesting insight into the U.S.’ policy toward religion, human rights, and China, particularly in regards to Christianity.

ChristianWhile ostensibly atheist, China is one of the fastest growing Christian nations.  Even based on the Chinese government’s official numbers –which are likely low-balled—from 1997 to 2006, China saw a 50% rise in the number of Christians.  The number, including those that attend the government-run churches as well as the underground, unofficial churches, is around 70 million.  Although this seems like a large number, population wise, it is only around 5%.  So for many Western Christian missionaries, the name of the game is China.  Western Catholics and Protestants both know this and are in China, albeit undercover, in large numbers.

While China has a growing Christian population, the Chinese government remains ambivalent about its development – sometimes seeing it as buttressing its authority and sometimes seeing it as a threat.  Although religious groups and charities have been important in the U.S.’ civil society development, China is a long way from having any sort of religious charities that could support human rights or rule of law.

So why the trip to Catholic Charities?   Perhaps the Chinese officials requested this because they are sincerely interested in learning more about the role religious groups can play in society.  Or perhaps U.S. policymakers’ idea of human rights, at least in China, is becoming less secular and more religious-based, particularly Christian.  Unfortunately, Assistant Secretary Posner did not explain why the Human Rights Dialogue with atheist China focused on the role of religious organizations in supporting human rights and we are left merely to speculate.

U.S. Raises Issue of Liu Xiaobo’s Imprisonment, the Disappearance of Gao Zhisheng, and likely the Disbarment of Tang Jitian and Liu Wei

Assistant Secretary Posner informed the press that U.S. officials discussed many specific Chinese dissents’ cases during the Dialogue.  However, the only two cases he named were those of Liu Xiaobo and the very odd case of Gao Zhisheng.

Liu Xiaobo has a long history of human rights activism in China.  In 1989, he

Activist Liu Xiaobo

Activist Liu Xiaobo

participated in the Tiananmen protests and has repeatedly criticized the Chinese government.  His activism has received many accolades from the West, including Reporters Without Borders’ Foundation de France Prize.  In December 2008, Liu Xiaobo was one of the organizers of the Charter ’08 movement, a movement calling for more democracy, less corruption and greater accountability of the Chinese government.  For these activities, Liu was arrested and sentenced to a very harsh 11-year prison term for inciting subversion of state power.  Even for China, the sentence is particularly long.

Although Liu’s sentence was harsh, the outcome was not surprising from

An emaciated Gao Zhisheng in March 2010 after a year in police custody

An emaciated Gao Zhisheng in March 2010 after a year in police custody

China.  Gao Zhisheng’s case however is just downright bizarre and Kafkaesque.  Gao is a self-taught lawyer and received much praise by the Chinese government for his work in public interest law.  But that was back in 2001.  By 2006, Gao had fallen out of favor and his work, particularly the representation of the repressed religious organization Falun Gong, was seen as a threat to the Chinese government.  In 2006, Gao was detained, arrested and eventually found guilty of subversion.  His three year prison sentence was converted to five year probation and he was allowed to remain at home.  After harassment, physical abuse and threats to his life, in February 2009, one month after his wife and child fled China for the United States, Gao was mysteriously abducted by Chinese police.  His whereabouts remained unknown.  The Chinese government remained largely silent in regards to Gao’s whereabouts until January of this year when in response to questions regarding Gao’s disappearance, Foreign Ministry spokesman Ma Zhaoxu retorted that Gao was “where he should be.” Although ominous, Gao eventually reemerged in March 2010 at Wutai Mountain, hundreds of miles from his home.  Announcing that he was giving up rights activism for the opportunity to be reunited with his family, Gao went to Xinjiang Autonomous Region at the beginning of April to visit his in-laws.  After one night there, Gao was abducted a second time and to this day, his whereabouts are unknown.

In addition to Liu and Gao, Posner also mentioned that the cases if recently disbarred public interest lawyers were also raised.  This likely means Tang Jitian and Liu Wei, two public interest lawyers who were recently stripped of the right to practice law.  Both Tang and Liu merely represented

China’s increasingly hard-line stance against rights activists and public interest lawyers reflects a country that may not be interested in establishing the rule of law, at least at it pertains to non-economic spheres.  Raising these issues is important not just for the people being detained or harassed, but also to see how China moves forward in response to the issues.  For example, President Obama, in his trip to China last November, reportedly raised the issue of Liu Xiaobo’s detention.  However, the Chinese government did not lighten Liu’s sentence in response.  Instead, the Chinese government sentenced Liu to the overly harsh term of 11 years in December, a month after President Obama’s visit.  It will be interesting to see what happens to Liu Xiaobo, Gao, Tang and Liu Wei after the Human Rights Dialogue.  Does China care anymore about the U.S.’ criticism?

Even the Chinese know what the real purpose of Arizona’s new law

To create a feeling of mutual respect, the U.S. usually voluntarily discusses design-swappableits own human rights issues during these dialogues.  In last week’s Dialogue, Assistant Secretary Posner volunteered Arizona’s new law against illegal immigrants as an example of a potential human rights violation in the United States.  However, according to Posner, the Chinese were not concerned about the law as it may apply to their citizens visiting the U.S.  Even the Chinese know that the law’s likely racial profiling will be for Mexicans, not Chinese.

How to Move Forward

Last week’s Human Rights Dialogue was only the second since 2002, after China suspended the talks.  Actually having the Dialogue itself is a major accomplishment.  Additionally, at the end both sides agreed to have another session in 2011, making the Dialogue an annual event.  For purposes of a continuing conversation, this is a good sign.  But the criticism that China merely plays lip service to the Dialogue is apt.  That is why it is important that during this month’s Strategic & Economic Dialogue (S&ED), to be held in China May 24 and 25, that high level officials, including the Secretary of State, raise human rights.  China places more emphasis on the S&ED compared to the Human Rights Dialogue.  But if the U.S. really wants China to move forward in human rights and rule of law, the topic must also be raised at the S&ED.

Congressional Testimony of China Law & Policy – With Link to full Webcast

capital_building_threequarterLink here for webcast (or go through the House website here).

Click here for CL&P’s Written Testimony Submitted to the Committee

Yesterday, the Committee  on House Administration held a hearing to discuss  and analyze the DISCLOSE Act (H.R. 5175), the legislation drafted to deal with some of the issues raised by the Supreme Court’s decision in Citizens United v. Federal Election Committee.  Most of the new legislation deals with what disclosure should be made when a corporation runs a commercial or ad as part of its political activity.  But Section 102 of the proposed legislation seeks to close the loophole that enables foreign corporations, operating through U.S. subsidiaries, to fund “electionteering communications.”

China Law & Policy’s article, “Citizens United: U.S. Politics with Chinese Characteristics” was picked up by the Committee’s staff and I was invited to testify about potential foreign government influence in our elections post-Citizens United.  On the panel also included former Federal Election Committee (FEC) chair and lead staffer on the McCain-Feingold, Trevor Potter of Campaign Legal Center; Prof. John C. Coates of the Harvard Law School and expert in corporate governance; Michael Toner, partner at Bryan Cave and former FEC Chair; and William McGinley an attorney at Patton Boggs.  The House Committee is to vote on the legislation on Thursday, May 13.

The full webcast can be watched here (or here).  It was a very interesting discussion and I recommend watching all of it (total time is 1 hour 31 minutes), but for those just interested in the discussion on foreign influence (or the parts where I speak), below is a breakdown by time of the discussion.  Thank you for watching!

Discussion on Foreign Influence in U.S. Elections:

14:45 – 16:45 Trevor Potter, Opening Statement

21:49 – 22:27 John C. Coates, Opening Statement

22:38 – 27:45 Elizabeth M. Lynch, Opening Statement

29:28 – 31:05 Michael Toner, Opening Statement

34:03 – 34:32 William McGinley, Opening Statement

42:56 – 46:14 Rep. Lungren, Question for the Panel

  • 46:15 – 47:12 Coates, Response to Rep. Lungren
  • 47:13 – 48:47 Lynch, Response to Rep. Lungren
  • 48:48 – 49:46 Lungren Conclusion

1:02:59 – 1:03:21 – Toner, Response to Rep. Harper

1:05:45 – 1:10:22 – Rep. Capuano, Questions for the Panel, Back-forth with Toner, and China issue Lynch

China Law & Policy to Testify Before Congress

US House sealChina Law & Policy will be appearing before Congress tomorrow.  The Committee on House Administration, which has jurisdiction over federal elections, is seeking testimony on the potential for foreign influence in U.S. elections post-Citizens United.  I have been invited to testify.  Congress is seeking to pass legislation, called the DISCLOSE Act, to rectify some of the issues caused by the Supreme Court’s Citizens United decision.

The hearing  will be at 5 PM at 1310 Longworth House Office Building in Washington DC.

The hearing will also be shown LIVE on the web: http://cha.house.gov/ (on the left-hand hand side will be a link for live webcast)

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