Nightly Business Report . Video #10 - President Bush Visits Japan - An Advanced Look

Video #10 - President Bush Visits Japan - An Advanced Look

Monday, January 09, 2006

BACKGROUND INFORMATION:

President George W. Bush's visit to China in February 2002 planned to focus on China's implementation of World Trade Organization rules after China's entry to the WTO in December 2001. Also at the top of the agenda were China's planned restrictions on genetically modified foods, which could affect U.S. soybean sales. An additional issue was the protection of intellectual property, which China pledged to do. However, piracy of movies, music and software seems to be widespread in the country.

Despite these potential irritants, it is a time when new generations of U.S. and Chinese leaders are working with each other; the ties between the two nations continue to grow and people-to-people contacts are blossoming. China's support of the war on terrorism after the September 11 attacks on the United States has also helped the business relationship. Still Bates Gill, a China expert at the Brookings Institution, says the relationship is fragile. Difficulties continue over issues such as U.S. plans to build a missile defense system and China's poor record on human rights and religious freedom.

U.S.-China economic relations have come a long way since 1972, when U.S. law forbade American companies from trading with China. Now China is the U.S.'s fourth-largest trading partner. During his stay in Beijing, President Bush visited the Cummins Bus Engine factory, a branch of an American owned company, to highlight growing trade relations. Americans' enthusiasm for buying low-cost Chinese toys and other goods and Chinese barriers to U.S. products caused China to overtake Japan as the country with the largest trade surplus with the United States in 2000.

General Motor's $750 million investment in a car factory in Shanghai is the single biggest U.S. contribution to the Chinese economy, and Motorola has announced plans to become the largest foreign capital enterprise in China. It is planning to produce $10 billion in parts and services there over the next five years. Additionally, every major American company has a presence in manufacturing or is trying to develop the Chinese market. Two good examples are Hewlett Packard's Asian research and development center in Beijing and Microsoft's Asian call-in service center in Shanghai.

Consequently, tens of thousands of Americans and Chinese live in each other's countries today. There are thousands of mixed marriages. Thousands of Chinese go to the United States every year for graduate school. Chinese sports stars play pro basketball and women's soccer in the United States. A few Americans play pro Chinese basketball. Chinese actors such as Joan Chen, Jet Li and Vivian Wu have migrated to Hollywood. Some Americans work in China's film industry. Last year, however, a number of Chinese-born academics, writers and entrepreneurs with American ties were detained in China, straining relations with Washington and giving cause for concern to academics. Despite great progress, U.S.-China relations continue to be delicate and complicated.

At a hearing of the U.S.-China commission in January, U.S. officials spoke about the status of selling high-technology devices to China. The United States doesn't want to sell China anything that could help boost that country's nuclear weapons program or find its way to nations where U.S. sales are barred, such as Iran and North Korea. On the other hand, some feared that excessive restrictions could prompt China to buy from other countries and cause the loss of U.S. jobs.

Assistant Secretary of Commerce for Export Administration, James J. Jochum said that China faces greater scrutiny than other U.S. trading partners. It accounts for 12-percent of all the export licenses handled by the Commerce Department. Most license requests are approved, but they contain strict conditions, such as requiring follow-up inspections to make sure the equipment is being used for the approved purpose.

Some commissioners wondered if U.S. officials are more concerned with trade than with security since there is only one full-time person in China following export controls and dozens pursuing trade. Still, other participants at the hearing were divided about how relevant this technology would be to China's military modernization.

In an Asia Info Services report issued April 3, 2002, Shi Guangsheng, China's Minister of Foreign Trade and Economic Cooperation, said that China and America had become each other's largest trading partners. In addition, he noted, America was also one of China's largest investors, while American enterprises had earned a large share of the Chinese market-providing a great boost to America's economy. Therefore, he claimed healthy Sino-U.S. trading relations would be mutually beneficial.

The status of Taiwan was another issue during the President's visit. As Bush began his two-day visit to Beijing, Taiwanese Premier Yu Shyi-kun told reporters that the U.S. president had given "firm assurances" that Washington will help preserve stability in the 160 kilometer-wide (100 mile-wide) Taiwan Strait. Interestingly, Taiwanese business leaders have been building factories and investing in new ventures in China during the past decade. President Bush said he favored a "peaceful settlement" of this very delicate issue between Taiwan and China.

SOURCES:

"Motorola Becomes The Largest Foreign Capital Enterprise In China," China Enterprise News, Page 1, January 14, 2002, AsiaInfo Services, January 16, 2002. www.elibrary.com.

"Shi: Healthy Development of Sino-U.S. Sino-US Trade Relations is Needed," AsiaInfo Services, April 3, 2002. www.elibrary.com.

Benac Nancy and Joe McDonald, "U.S., China Starting on Stronger Ties," AP Online, February 20, 2002. www.elibrary.com.

Foreman, William, "As U.S. President Visits China, Taiwanese Premier Thanks America for its Support," AP Worldstream, February 21, 2002. www.elibrary.com.

Guggenheim, Ken, "More Scrutiny for U.S.-China Trade," AP Online, January 17, 2002. www.elibrary.com. U.S.-China Commission www.uscc.gov

Salvatore, Bill, "Beans, Bootlegs Top Bush Business Agenda For China," Reuters, February 18, 2002. www.elibrary.com.

GRADE LEVEL/SUBJECT: 10-12/Economics, International Relations, World History, International Baccalaureate Programs (IB), Current Events

LESSON PLAN

PURPOSE:

To present activities to be used in a variety of classroom situations in order to enhance student understanding of the Asian economy and its significance globally.

OBJECTIVES:

Students will be able to:

Trace the history of U.S.-Sino relations.

Illustrate the economic interdependence of the United States and China.
Evaluate the accomplishments of President Bush's visit to China.

Forecast the future of Sino-U.S. relations

MATERIALS:

Background information provided.

Resources on China available at your school's Media Center and the Public Library System in your area.

Background information available through Internet "search engines".

ACTIVITIES:

May be assigned as group activities or as individual tasks. They may also be designed as preparation for related presentations either by individuals or groups.

Create a time line of events linking the United States with China.

Use charts and graphs to illustrate the economic interdependence of the United States and China.
Write an editorial expressing your views on the guidelines the United States government should follow as American companies continue to do business in China. Use facts to support your opinion.

Research the results of Mr. Bush's trip to China. Make a list of pros and cons related to the effects of the negotiations.

Use the information gathered above to hold a class debate on the issues in favor and against trade with China.

EVALUATION:

Individual assignments should be graded by the teacher using established criteria.

Group activities, presentations and projects may be evaluated by teachers and students using the following criteria and scale:

Content Creativity Clarity

1 = Superior (A) 2 = Excellent (B) 3 = Good (C) 4 = Fair (D) 5 = Poor (F)

To print this lesson plan: If your browser does not print frames, try this -- click the right button on your mouse and select "Open Frame In New Window." Then use your browser's print function to print that page. Another option -- choose "Select All" from your browser's pull-down Edit menu. "Copy" the highlighted text and then "Paste" it into any text editor. You can then print it from the text editor. The Japanese Island of Okinawa is located in the East China Sea, in a subtropical zone of islands. Okinawa was known as the Ryukyu Kingdom, a trading nation with a distinct culture. For 400 years, starting during the late 1300's, this island nation was ruled by royalty and developed a flourishing trade with China, Japan, Korea and the East Indies. Consequently, Okinawans have their own distinctive music, a unique language, and their own steadfast traditions that began hundreds of years ago. Its inhabitants built a reputation as sugar cane growers, fishermen and weavers.

But throughout its history, Okinawa has been a pawn in global power politics. Ryukyu was first influenced by China and later annexed by Japan in 1879. Okinawa was the scene of ferocious fighting in the later stages of World War II and has served as a major base for the U.S. military ever since. 47,000 American troops are still stationed there.

The literature on Okinawa is divided on the subject of the U.S. military. Many articles blame accidents and crimes related to American GIs as an obstacle to the island's tourist industry. They claim that a diversified economy is not possible where prime real estate is used by the Pentagon. Others claim that islanders see the American presence as a trade-off. The heavy infusion of subsidies from Tokyo (to compensate for the bases) is welcome where the unemployment rate is 9% and the living standard is far below that of the mainland. These articles claim that when Okinawan Governor Masahide Ota challenged both Tokyo and Washington about the Marines' presence in Okinawa, he was voted out of office in late 1998. His successor, Keiichi Inamine, turned out to be a willing partner for Tokyo and Washington. As a result, on top of the $80 million set aside in 1998 to promote economic development in the region, local towns willing to accommodate U.S. troops and facilities can count on an additional $20 million annually through 2003. Additionally, in July of 2000, Okinawa beat out other Japanese cities to host the G7 economic summit (of the leaders of major industrial nations). This event brought considerable profits to local resorts, retailers and taxi drivers.

Critics claim that Okinawa would be far better off recovering its status as a prime resort destination, (it boasts some of the best coral reefs in the Pacific) and allowing foreign investment to make its economy self-sustaining. They assert that for every concession made to Tokyo, Okinawa should pressure for more money to make the economic transition it justly deserves.

There are other potential sources of income. The Japanese government says 457 Okinawans are at least 100 years old - 34.7 centenarians for every 100,000 islanders, the highest ratio in the world. The U.S.A has about 10 centenarians for every 100,000 people. On Okinawa, life expectancy is 81.2 years, the longest in the world. Statistics show that the average Okinawan woman lives to 86 years of age and the average man to 78. Recent studies show that Okinawans not only live longer, they also live better--with elderly suffering far lower rates of dementia than their U.S. counterparts and less than half the rate of hip fractures. Okinawan entrepreneurs believe these traits can be reproduced in other parts of the world. They will attempt to do so by marketing the mixture of diet and exercise that has kept Okinawans living longer and better.

?Chapter Four: The Economic History of Postwar Okinawa,? www.niraikanai.wwma.net/pages/base/chp4-1.html (Lengthy and detailed)

Ashitani, Tetsuo, ?Japan Marks 25th anniversary of Okinawa?s return,? Kyodo News International, Inc., November 21, 1997. (NewsBank Search)

Bremner, Brian, ?How Okinawa Can Outmaneuver Its Masters,?BusinessWeek Online, July, 11 2000. www.businessweek.com

Lee, May, ?Okinawa?s culture not well-known to outsiders,? CNN World News, November 3, 1995. www.cnn.com/WORLD/9511/okinawa/index.html

Wiseman, Paul, ?Fabric of a long life,? USA Today, January 3, 2002. (NewsBank Search)