DTC - Investment in China: Different Financial Terrain/Wall Street Embraces Sovereign Wealth Funds
Segment 1: Investment in China: Different Financial Terrain
Is China’s economy a bubble that’s poised to pop at any moment, or is it poised to continue its remarkable run? Fixed-asset investment as a percentage of GDP has reached nearly 50%. Rapid growth requires huge amounts of capital investment. Investors in China expect to make a lot of money from the “Rise of the East.â. The conventional wisdom is this: Initial investors in a new trend often do well. They are able to choose the best opportunities at the best prices. Those who come along later have progressively less and less choice and higher and higher prices. As prices rise, so do expectations. But as expectations rise, thinking declines.
Guest: Stephen L. Norris, Co-founder/ Former President, The Carlyle Group
Segment 2: Wall Street Embraces Sovereign Wealth Funds
Sovereign wealth funds, which act as a country’s investment arm, have long been investing money gained through exports or from the sale of commodities such as oil. With $1.4 trillion in foreign-exchange reserves and the pool growing by more than $1 billion every day, China casts a giant’s shadow over the global financial markets. In May 2007, China Investment Corp or CIC, with a price tag of $3 billion, took a 9.9% stake in private equity titan Blackstone Group. The recent credit crisis has left several Wall Street heavy-weights financially strapped for cash. It created more opportunities for sovereign wealth funds. In December 2007, Morgan Stanley received a $5 billion injection from CIC. It joined the ranks of Citigroup, UBS and Bear Stearns, which all have received infusions from foreign players in recent months. Economists argue that investments by sovereign funds are important to the U.S. economy, providing capital to firms and supporting the dollar. At the same time, the funds have faced plenty of criticism.
Guest: Robert Sherretta, President, International Investors, Inc.
DTC - Letter from “China’s Conscience”: An Unpleasant Reality
Known as “China’s Conscience”, Lawyer Gao Zhisheng was recently featured on the cover of the New York Times. He was named one of China’s top-ten lawyers in 2001 and has worked for China’s vulnerable groups: coal miners, home-demolition victims, and house church members. In August 2006, Mr. Gao was arrested, and a few months later, the U.S. Congress unanimously passed a resolution supporting him. He has been forbidden by the communist regime to communicate with the outside world since. While facing surveillance, house arrest, detention, and even attempts on his life, Mr. Gao managed to rally China’s activists and legal community around human rights causes like never before. On September 20th, 2007, Lawyer Gao Zhisheng sent a 9-page letter to the U.S. Congress expressing his concern over the Beijing Olympics. It stated that human rights in China have deteriorated even more ahead of the Olympic Games.
DTC - China and U.S. cyber war
In 2005, the Pentagon logged more than 79,000 attempted intrusions into their network. About 1,300 were successful, including the penetration of computers linked to the Army’s 101st and 82nd airborne Divisions and the 4th Infantry Division. In August and September that year, Chinese hackers penetrated US State Department computers in several parts of the world. Hundreds of computers had to be replaced or taken offline for months. Jim Melnick, a retired Pentagon computer network analyst, told Time magazine that the Chinese military holds hacking competitions to identify and recruit talented members for its cyber army.
DTC - Making of “Milarepa: Magician, Murderer, Saint”
Born into a wealthy merchant family, Thopaga’s life was suddenly turned upside down after his father died. On his death bed, Thopaga’s father entrusted his fortune and his family to his brother who promised to give his fortune back to Thopaga when he came of age.
But, the uncle and aunt subjected Thopaga and his mother to slavery and near-starvation. They denied his inheritance when he came of age. Vowing revenge, Thopaga was sent by his mother to study with the master sorcerer. He returned, killed his oppressors and destroyed the village. Knowing that his revenge was wrong, Thopaga set out to find a lama to help him redeem himself and was led to Marpa the translator.
After enduring much pain and hardship, and practicing diligently, he reached the state of complete enlightenment and then became known as Milarepa, one of Tibet’s most revered saints. One thousand years after his death, he is still regarded as one of Tibet’s greatest spiritual leaders. Now this ancient Buddhist legend is cinematized in the movie “Milarepa: Magician, Murderer, Saint”.
Guest: Lama Neten Chokling, Director. Greg Kruglak, Executive Producer.
DTC - Taiwan’s entrance to the U.N.
On July 20, 2007, the Taiwanese government announced that is has applied for U.N. membership under the name Taiwan, which drew an immediate condemnation from mainland China. This move by President Chen Shui-bian is the latest tactic in a long campaign to promote Taiwan’s sovereignty. The decision to apply for U.N. membership under the name Taiwan has little practical effect, Taiwan has failed repeatedly to gain admittance under its current official name, Republic of China, because the U.N. seat for China has belonged to the mainland since 1971. But the symbolic power of Chen’s gesture raises tensions in the Taiwan Strait. China has never recognized Taiwan as an independent country and has pledged to return the island to Beijing rule, even by force.
DTC - Freedom First, Olympics Second
The opening ceremonies of the 2008 Summer Olympic games is less than a year away, and the Chinese government is trying very hard to deliver a flawless Olympic spectacle, which is widely viewed as a metaphor for China’s rising power.
Beijing is well ahead in preparing for the influx of more than two million Olympics spectators form China and abroad. All but one of the 37 new or refurbished hosting structures are on track to be completed by year end. But this preparation process also highlights many tricky variables, such as air pollution, open media access, and human rights.
Digging to China lands on the SOH Network
We are pleased to announce that the SOH Network has entered an exclusive agreement with NTDTV for the rights to distribute an audio podcast of their popular show, Digging to China.
Digging to China specializes in interviewing national scholars, writers and politicians on China’s issues of state, economics, foreign policy and culture. The show provides a public service to the community by providing a detailed view into the issues surrounding modern-day China.
New Tang Dynasty TV (NTDTV) is an independent, nonprofit Chinese language TV broadcaster established by overseas Chinese. NTDTV began broadcasting via satellite in North America in February 2002 and extended its 24/7 programming to cover Asia, Europe, and Australia in July 2003. Headquartered in New York City, NTDTV currently has reporters and correspondents in over fifty cities worldwide.
