This Week in China

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Earthquake

Last Monday’s Sichuan earthquake was the worst natural disaster in China in 30 years. An estimated 5 million people were left homeless from the quake and today marked the end of an official three day mourning period for those lost, now numbering above 40,000. Though reports are still coming in of some rescues, the end of the mourning period marks a shift of national priorities away from the rescue effort.

Rescue stories include one of western tourists being evacuated from a panda research center by heroic staff, and another of a Chinese couple trapped in rubble for 28 hours who were forced to take turns breathing, saying “It was more terrifying than facing the god of death.”

Politics

The state is re-tightening the reins on the media after relatively open reporting on the disaster.  As for criticism of officials and building practices, a Shanghai newspaper editor said it’s still too early.

Private charity is on the rise in China to help the quake victims: “The public outpouring is so overwhelming that analysts are debating whether it will create political aftershocks and place pressure on China’s authoritarian state to allow more space for civil society,” the International Herald Tribune reports.

Growing lore about Chinese Prime Minister Wen Jiabao’s softspot for the common people includes an incident where he allegedly slammed the phone down on a general after commanding him to do whatever it takes to save quake victims. Technically he doesn’t even command the military which is taken as evidence of a passion that is stirring more than a few to call him “Grandpa Wen.” 

In an “unprecedented step,” U.S. aid to China included the first-ever disclosure of satellite imagery to China by the National Geospatial Intelligence Agency. The imagery of Chinese infrastructure will allow China to better assess the state of its reservoirs, roads, and bridges. Japan also released satellite imagery (translated) that shows the dramatic devastation from the quake.

Ma Ying-jeou took power as Taiwan’s president on Tuesday, saying Taiwan and China “can use this rare historical opportunity. Let’s open a new page of peace and prosperity.” As a first step, China has invited Ma’s KMT party chairman Wu Poh-hsiung for a six day visit to the mainland starting on Monday during which he will meet with Chinese President Hu Jintao.

The pandas from Wolong and Chengdu appear to be fine, though two are still missing and some are still acting nervous. Eight pandas will make a trip to Beijing later this week to go on display at the Olympics.

Economy

Chinese government agencies have been asked to cut spending by 5% this year to create a $10 billion earthquake reconstruction fund. Ways to cut back include a freeze on approval of new government buildings, strict control of new car purchases on the part of officials, and less spending on dinners, according to Prime Minister Wen.

Total losses from the earthquake to Chinese companies are estimated at $9.5 billion, about $4.3 billion of which is state-owned. The Agricultural Bank of China, the leading rural lender, expects an increase in $850 million of bad loans, and PetroChina, China’s largest oil company in terms of assets, placed damages at $255 million. The government has ordered price freezes in the disaster zone, but inflationary pressure is being felt in surrounding provinces.

Quake reconstruction could lead to a shift toward investment and away from consumption. Analysts see some parallels in China’s ambitious plans to rebuild and the Kobe earthquake in Japan which likely contributed to a reversal in the structural decline of investment in the 1990s.

Analysis

NPR looks more at the “unprecedented” free media reporting environment in China surrounding the earthquake coverage including the increased professionalism of journalists.

The Carnegie Endowment’s China program director, Douglas H. Paal, talks to BBC about the political implications of the earthquake. On the tension between addressing public outcry and avoiding political fallout, Paal says “finding a balance point is going to be a very tough challenge for [the Chinese leadership] on such a highly emotional issue.”

Daniel Bell, a teacher of political theory at TsinghuaUniversity, describes his experiences in the classroom after the earthquake in an op-ed for the New York Times.