China Economy DA

China attracting foreign experts now- energy key to competitiveness

Vasilenkov 12 Sergei Vasilenkov, journalist for Pravda, Russian news service,
World'sbrightestmindsmigratetoChina,http://english.pravda.ru/business/companies/03-102012/122332-china_brain_drain-0/, 3-10-12
China actively took up the issue of attracting highly skilled professionals, scientists and
managers to the country. Foreigners are offered attractive conditions, and observers are already talking of this
trend as the "brain drain" into the PRC. China that does not shy away from learning from other countries intends to create
the "Chinese dream". The deputy head of the State Administration for Foreign Professionals Liu Yanguo in an
interview with China Daily said that China

was in a full swing campaign to attract foreign specialists to

active participation in the various scientific and economic areas in China. The project designed for 10
years seeks to bring to the country 1,000 highly skilled professionals from around the world. The program was launched

Major
areas and disciplines where professionals from abroad will work is mathematics, physics, research in the
field of chemistry, environment, engineering, energy, life sciences, and business
management.Liu Yanguo said that China was very serious about the selection of candidates to work in China.
last year, and of 40 experts attracted 30 started working, and the rest will be employed by the end of September.

Among the requirements are age under 65, ability to work in China for at least 3 years, as well as living at least 9 months
of the year in the country along with high qualifications of the candidate to be monitored by a special commission. Since
the beginning of the program 530 applications from candidates to work in China have been submitted. Mostly the
interest comes from the countries

that have close economic and technological ties with China - the
U.S., Japan, UK, Germany and Russia. Yanguo also points out that, in contrast to the "American Dream", the
time has come for the "Chinese Dream", which may look attractive to the best talent from around the world. Due to
globalization and the rapid development of China, the country is willing to invest in the importation of foreign professional
expertise, and create favorable conditions for foreigners qualified for the job. Foreign workers coming to work in China
under the project are given a grant in the amount of 1 million yuan (157,700 U.S. dollars) from the government of the
PRC. Foreign researchers may also receive grants to conduct research in the amount of 3 to 5 million yuan. China's

experience in attracting highly skilled professionals from other countries will be able to raise
the country's economy to a new level. Others countries, obviously, can follow the example of China in
attracting the world's knowledge and technology. Attracting professionals from abroad, China is focused primarily on
the accumulation of knowledge in the most advanced fields in order to effectively use them for the benefit of the
economic, military and technological power of China. The idea to attract foreign experts to China is not new. Back in the
1990s, scientists from other countries have come to China. Jeffrey Lehman, rector and professor at the Institute of
jurisprudence, University of Michigan, began organizing trips of scientists from Michigan to work at Beijing University.

This trend is relevant in light of budget cuts in many Western universities - scientists are
forced to seek work in other scientific centers of the world, and China in this regard offers
attractive prospects. In 2008, the Chinese Government has also launched a project to attract foreign specialists
called "Program thousand talents." As part of the program 1,600 people came into the country, many of whom, however,
were ethnic Chinese living abroad. Li Jun, Associate Professor of HK Institute of Education, believes that because the
Chinese universities receive major funding from the government, they are able to bring highly skilled scientific work from
abroad. Foreign staff working in the universities in China increases their competitiveness and reputation, which is
important in terms of competition among universities. This, in turn, contributes to obtaining university research funding.
Chinese universities attract mostly professionals from applied scientific fields - mathematics, engineering, and various
process industries. The country

in the era of technological breakthroughs needs such specialists,

providing further technological and economic development of China.

Foreign expertise key to Chinas energy policyCullinane 11 Scott, Staff at House Foreign Affairs Committee, America Falling Behind: The
Strategic Dimensions of Chinese Commercial Nuclear Energy, Sept.
28, http://www.ensec.org/index.php?option=com_contentandview=articleandid=319:americafalling-behind-the-strategic-dimensions-of-chinese-commercial- nuclearenergyandcatid=118:contentandItemid=376
While Americas nuclear industry has languished, current changes in the worlds strategic layout no longer allow America the option of

maintaining the status quo without being surpassed. The drive for research, development, and scientific progress that grew out of the Cold
War propelled America forward, but those priorities have long since been downgraded by the US government. The economic development
of formerly impoverished countries means that the US cannot assume continued dominance by default. The

rapidly
industrializing PRC is seeking its own place among the major powers of the world and is vying
for hegemony in Asia; nuclear power is an example of their larger efforts to marshal their
scientific and economic forces as instruments of national power. The rise of China is a phrase that
connotes images of a backwards country getting rich off of exporting cheap goods at great social and environmental costs. Yet, this
understanding of the PRC has lead many in the United States to underestimate Chinas capabilities. The

Communist Party of
China (CPC) has undertaken a comprehensive long-term strategy to transition from a weak
state that lags behind the West to a country that is a peer-competitor to the United States.
Nuclear technology provides a clear example of this. In 1978, General Secretary Deng Xiaoping began to move
China out of the destructive Mao era with his policies of 'reform and opening.' As part of these changes during the 1980s, the CPC began a
concerted and ongoing effort to modernize the PRC and acquire advanced technology including nuclear technology from abroad. This effort
was named Program 863 and included both legal methods and espionage. By doing this, the PRC has managed to rapidly catch up to the
West on some fronts. In order to eventually surpass the West in scientific development the PRC launched the follow-on Program 973 to
build the foundations of basic scientific research within China to meet the nations major strategic needs. These steps have brought China
to the cusp of the next stage of technological development, a stage known as indigenous innovation. In 2006 the PRC published their
science and technology plan out to 2020 and defined indigenous innovation as enhancing original innovation, integrated innovation, and reinnovation based on assimilation and absorption of imported technology in order improve national innovation capability. The Chinese seek
to internalize and understand technological developments from around the world so that they can copy the equipment and use it as a point

The PRC sees

this process of absorbing foreign technology coupled with indigenous innovation as a way of
leapfrogging forward in development to gain the upper hand over the West. The PRCs official
statement on energy policy lists nuclear power as one of their target fields. When viewed within this context, the full
to build off in their own research. This is a step beyond merely copying and reverse engineering a piece of technology.

range of implications from Chinas development of nuclear technology becomes evident. The PRC is now competing with the United States
in the areas of innovation and high-technology, two fields that have driven American power since World War Two. Chinas economic appeal
is no longer merely the fact that it has cheap labor, but is expanding its economic power in a purposeful way that directly challenges
Americas position in the world. The

CPC uses the market to their advantage to attract nuclear

technology and intellectual capital to China. The PRC has incentivized the process and encouraged new domestic
nuclear power plant construction with the goal of having 20 nuclear power plants operational by 2020. The Chinese Ministry of Electrical
Power has described PRC policy to reach this goal as encouraging joint investment between State Owned Corporations and foreign
companies. 13 reactors are already operating in China, 25 more are under construction and even more reactors are in the planning stages.
In line with this economic policy, China has bought nuclear reactors from Westinghouse and Areva and is cooperating with a Russian
company to build nuclear power plants in Taiwan. By stipulating that Chinese companies and personnel be involved in the construction
process, China is building up its own domestic capabilities and expects to become self-sufficient. Chinas State Nuclear Power Technology
Corporation has partnered with Westinghouse to build a new and larger reactor based on the existing Westinghouse AP 1000 reactor. This
will give the PRC a reactor design of its own to then export. If the CPC is able to combine their control over raw materials, growing technical
know-how, and manufacturing base, China will not only be a powerful economy, but be able to leverage this power to service its foreign
policy goals as well. Even though the PRC is still working to master third generation technology, their scientists are already working on
what they think will be the nuclear reactor of the future. China is developing Fourth Generation Fast Neutron Reactors and wants to have
one operational by 2030. Additionally, a Chinese

nuclear development company has announced its intentions to

build the worlds first high-temperature, gas-cooled reactor in Shandong province which offers to possibility
of a reactor that is nearly meltdown proof. A design, which if proved successful, could potentially redefine the
commercial nuclear energy trade.

This expertise key to Chinese economy

World Nuclear Association 2-13 http://www.world-nuclear.org/info/inf63.html

Nuclear power has an

important role, especially in the coastal areas remote from the coalfields
and where the economy is developing rapidly. Generally, nuclear plants can be built close to
centres of demand, whereas suitable wind and hydro sites are remote from demand. Moves to build nuclear power
commenced in 1970 and about 2005 the industry moved into a rapid development phase. Technology has been drawn
from France, Canada and Russia, with local development based largely on the French element. The latest technology
acquisition has been from the USA (via Westinghouse, owned by Japan's Toshiba) and France. The Westinghouse
AP1000 is the main basis of technology development in the immediate future.

China economic collapse leads to war with US

Lewis 8 Dan, Research Director Economic Research Council, The Nightmare of a Chinese
Economic Collapse, World Finance,
5/13,http://www.worldfinance.com/news/home/finalbell/article117.html
In 2001, Gordon Chang authored a global bestseller The Coming Collapse of China. To suggest that the

worlds largest

nation of 1.3 billion people is on the brink of collapse is understandably for many, a deeply unnerving
theme.And many seasoned China Hands rejected Changs thesis outright. In a very real sense, they were of course right. Chinas
expansion has continued over the last six years without a hitch. After notching up a staggering 10.7 percent growth last year, it is
now the 4th largest economy in the world with a nominal GDP of $2.68trn.Yet there are two Chinas that concern us here; the 800
million who live in the cities, coastal and southern regions and the 500 million who live in the countryside and are mainly engaged in
agriculture. The latter which we in the West hear very little about are still very poor and much less happy. Their poverty and
misery do not necessarily spell an impending cataclysm after all, that is how they have always have been.But it does illustrate
the inequity of Chinese monetary policy. For many years, the Chinese yen has been held at an artificially low value to boost
manufacturing exports. This has clearly worked for one side of the economy, but not for the purchasing power of consumers and the
rural poor, some of who are getting even poorer. The central reason for this has been the inability of Chinese monetary policy to
adequately support both Chinas.Meanwhile, rural unrest in China is on the rise fuelled not only by an accelerating
income gap with the coastal cities, but by an oft-reported appropriation of their land for little or no compensation by the
state.According to Professor David B. Smith, one of the Citys most accurate and respected economists in recent years, potentially
far more serious though is the impact that Chinese monetary policy could have on many Western nations such as the UK. Quite
simply, Chinas undervalued currency has enabled Western governments to maintain artificially strong currencies, reduce inflation
and keep interest rates lower than they might otherwise be. We should therefore be very worried about how vulnerable Western
economic growth is to an upward revaluation of the Chinese yuan. Should that revaluation happen to appease Chinas rural poor, at
a stroke, the dollar, sterling and the euro would quickly depreciate, rates in those currencies would have to rise substantially and the
yield on government bonds would follow suit. This would add greatly to the debt servicing cost of budget deficits in the USA, the UK
and much of Euro land.A reduction in demand for imported Chinese goods would quickly entail a decline in Chinas economic
growth rate. That is alarming. It has been calculated that to

keep Chinas society stable ie to manage the transition

from a rural to an urban society without devastating unemployment the minimum growth rate is 7.2 percent.
Anything less than that and unemployment will rise and the massive shift in population from
the country to the cities becomes unsustainable. This is when real discontent with communist party rule
becomes vocal and hard to ignore.It doesnt end there. That will at best bring a global recession. The
crucial point is that communist authoritarian states have at least had some success in keeping a lid on ethnic tensions so far. But

when multi-ethnic communist countries fall apart from economic stress and the implosion of
central power, history suggests that they dont become successful democracies overnight . Far
from it. Theres a very real chance that China might go the way of Yugoloslavia or the Soviet Union chaos,
civil unrest and internecine war. In the very worst case scenario, a Chinese government might seek to
maintain national cohesion by going to war with Taiwan whom America is pledged to
defend.

Specific Links

China is by and far the world leader in clean energy investments, and the US is
lagging behind because of a lack of a national energy policy
Harris and Isikow 12
(ABC News' Dan Harris and Judy Isikow contributed to this report. June 16, 2010 http://abcnews.go.com/Technology/clean-energychina-ahead-us/story?id=10934443)

Since 2005, investments in the clean energy sector have grown 230 percent, according to the Pew
Environment Group Climate and Energy Program. In 2009, $162 billion was invested in clean energy globally and analysts
forecast that investments will climb 25 percent to $200 billion in 2010. But despite the opportunities in the fast-growing
industry, experts say the

United States continues to lag behind countries such as China, Brazil, the United
Kingdom, Germany and Spain. "The U.S. is missing the boat," said Phyllis Cuttino, director of the Pew Environment
Group Climate and Energy Program in Washington. In 2009, she said, China attracted $34.6 billion in clean
energy investments, more than any other country. The United States attracted $18.6 billion,
about half of China's total, she said. When you look at the winners in this race, Cuttino said, they all
have one key feature in common: a national clean energy policy. The countries dominating the clean energy
landscape have national policies to reduce global warming pollution and provide incentives for companies to use renewable
energy, such as solar and wind power, but she said the

United States only had a "patchwork" of state

policies.

China is investing in clean energy to take the lead for economic reasons
Rapoza 11
(Kenneth Rapoza, April 27, 2011, China Taking Lead Ahead of US on Clean Energy, Sen. Reid Says,
http://www.forbes.com/sites/kenrapoza/2011/04/27/china-taking-lead-ahead-of-us-on-clean-energy-sen-reid-says/)

China is fast establishing itself as the worlds leader in clean energy and if the US doesnt take
this sector of the global economy seriously, it risks being left behind, US Senate Majority Leader Harry Reid said
Wednesday during a conference call with the press. China is investing heavily in clean energy and they
are not just doing it for the environment. They are doing it for the economy, and for job
creation. We need to understand in this country that if we do not want to be dependent on foreign oil, we must develop this
sector of our economy. To say that China is leading in this market would be an understatement,
Reid said. All of the top solar panel manufacturers are Chinese companies. Around 90% of the rare
earth mines, used for making new high powered batteries that can power automobiles instead of gasoline, are in
China. Reid said that the US should be the global innovator and leader in clean energy, but noted
that China was building and investing in this market faster than we are. Reid and nine US
senators, most of them Democrats, returned Tuesday from a week long trip to China to meet with Central Bank and other
officials, including some business leaders. It was the largest delegation of US elected officials ever to visit China. Reids trip was
also his first to the country in 25 years. The word understatement was used a number of times during the call when Reid
discussed his trip. Reid is a Democratic Senator from Nevada. Our trip there was an unmistakable reminder how hard this US
has to work if it wants to remain competitive. To see how much China has changed in 25 years was incredible. Chinas

growth and all that is being said about it is an understatement, he said.

Chinas economy is slowing now, but needs to stay strong

Xinhua 12
(November 25, 2012, http://europe.chinadaily.com.cn/business/2012-11/25/content_15956424.htm)
BEIJING - The government

needs to carry out "bold and resolute" reforms in order to meet the
target of doubling its GDP and residential income by 2020, according to Chinese
economists. The Communist Party of China (CPC) outlined development objectives for the country for the next eight
years at the recently concluded 18th National Congress of the Communist Party of China. It vowed to double China's 2010
gross domestic product (GDP) and per capita income for both of urban and rural residents by 2020. Yuan Zhigang, head of the
School of Economics at Fudan University in Shanghai said, "It is an arduous task and the

government will have to

take bold and resolute actions to provide enough momentum for the growth." China has to
maintain an average annual growth rate of at least 7.5 percent in the coming years in order to achieve
the goal set by the government, Yuan said. Yuan believed that reforms of the factor market, or the marketplace for basic
production inputs like land, labor and capital, will play a major role in boosting China's future development. Reasonable prices
and pricing systems for different factors will help rectify the overall industrial structure and steer the economy towards growth
driven by efficiency and innovation, according to Yuan. Yin Xingmin, professor with Fudan University, said a market-oriented
mechanism will help mobilize productive resources and help secure steady economic growth. China's

economy grew
by 7.4 percent year-on-year in the third quarter, slowing for the seventh straight quarter
and down from 7.6 percent in the second quarter and 8.1 percent in the first quarter, according to the National Bureau of
Statistics.

China is investing in wind and solar energy to promote economic growth

Washington Times 09
(The Washington Times, December 11, 2009, China races ahead of U.S. to invest in green energy,
http://www.washingtontimes.com/news/2009/dec/11/china-races-to-invest-in-green-energy/?page=all)
BEIJING | Regardless of the outcome of this months climate talks in Copenhagen, China

is sprinting ahead in an
effort to develop renewable energy sources - especially solar and wind power - to ease its
reliance on carbon-rich coal. Chinas need to sustain strong economic growth means its
reliance on fossil fuels will continue to grow, as will its position as the worlds biggest emitter of carbon,
analysts say. But it is also investing heavily in windmills, solar panels and hydroelectric power ,
having doubled its wind generating capacity every year since 2005. China is already the worlds leading
manufacturer of solar panels, Dinghuan Shi, chairman of the governments China Renewable Energy Society, said at
an energy conference in Beijing earlier this month. Julian Wong, senior policy analyst at the Center for American Progress, said
solar power looks especially promising. It hasnt

even been a full year since the [Chinese] government

made domestic solar deployment a priority. We have seen how government support of
wind helped it take off. It could be the same for solar, Mr. Wong said. Chinas rapid industrial
development in the past three decades has been fueled by coal, which supplies 76 percent of Chinas electric-generating needs.

Impact ext

Chinese economy key to global economic stability

Lewis 8 Dan, Research Director Economic Research Council, The Nightmare of a Chinese
Economic Collapse, World Finance,
5/13,http://www.worldfinance.com/news/home/finalbell/article117.html
But it does illustrate the inequity of Chinese monetary policy. For

many years, the Chinese yen has been held at an

artificially low value to boost manufacturing exports. This has clearly worked for one side of the economy,
but not for the purchasing power of consumers and the rural poor, some of who are getting
even poorer. The central reason for this has been the inability of Chinese monetary policy to adequately support both Chinas.Meanwhile,
rural unrest in China is on the rise fuelled not only by an accelerating income gap with the coastal cities, but by an oft-reported
appropriation of their land for little or no compensation by the state.According to Professor David B. Smith, one of the Citys most accurate and
respected economists in recent years, potentially far more serious though is

the impact that Chinese monetary policy

could have on many Western nations such as the UK. Quite simply, Chinas undervalued currency has
enabled Western governments to maintain artificially strong currencies, reduce inflation and
keep interest rates lower than they might otherwise be. We should therefore be very worried about how vulnerable
Western economic growth is to an upward revaluation of the Chinese yuan. Should that revaluation happen to appease
Chinas rural poor, at a stroke, the dollar, sterling and the euro would quickly depreciate, rates in
those currencies would have to rise substantially and the yield on government bonds would
follow suit. This would add greatly to the debt servicing cost of budget deficits in the USA, the
UK and much of Euro land.