This Month in Asia

All the news youre missing

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November 25

Kim Jong-un believed to be Worlds sexiest man by Peoples Daily. Read more on Oddities page 7.photo courtesy of Peoples Daily.

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Whats Inside

Barack Obama is re-elected as President of the United States over former Massachusetts Governor Mitt Romney.

China launches their /rst joint, /ve-day pa-trol in the South Chi-na Sea. 0e 1eet draws from Maritime Safety Administration ships based in the provinces of Guangxi, Guang-dong, Fujian and Hainan. 0e patrol marks Chinas latest move to bolster su-pervision of the South China Sea.

China sends a de-tachment of 558 troops to Liberia on a United Nations peace-keeping mis-sion.

A2er months of se-cretive negotiations, bargains, and myste-rious rumors, China reveals the group of seven leaders who will lead the coun-try for the coming decade. Xi Jinping becomes Hu Jintaos successor as the head of the Communist Party. Li Kequiang, Zhang Deijiang, Yu Zhengsheng, Liu Yunshan, Wang Qis-han and Zhang Gaoli comprise the rest of the Politburo Stand-ing Committee.

In a proposed amendment to ease stipulations on per-manent residency in China, foreign-ers who have lived in China for more than 10 years may now be eligible for a green card. Such green cards would provide interna-tional individuals with a sense of se-curity and belong-ing, China hopes.

A shaky cease-/re agreement between Isra-el and Hamas is reached af-ter eight days of /ghting. 0e agreement stip-ulates that rock-et /re from the Gaza Strip into Israel will cease, and Israel will not launch a ground invasion into Gaza terri-tory.

0e Kuomintang Party celebrates its 118thanniversary.

November 26

Ai Jing becomes the /rst Chinese contemporary art-ist to hold an ex-hibition at the Na-tional Museum of China. Jing is also a renowned singer in the region.

Over 100,000 peo-ple gather in Cai-ros Tahrir Square protesting against Egypts president. 0ey demand the revoking of decrees granting himself near autocratic power.

November 27

Conservative candidates elected in South Korea and Japan; bilateral relationship at a low point

Philippe MaugerMilitary Editor

South Koreas new president Park Geun-Hye pictured with Condoleezza Rice in 2007. Photo courtesy of US Department of State.

Over a decade ago, U.S. o7cials discovered highly sophisticated counterfeit bills which could only be identi/ed by advanced detection technology at the U.S. Federal Re-serve Banks. Investigators believe there is overwhelming evidence that these superdollars, as they have been nicknamed by the U.S. Secret Service, are made in North Korea with the same printing presses, fabric, and ink as genuine U.S. bills. 0ey are be-lieved to have been in existence since the 1970s, when they were developed under the instruction of the late Kim Jong Il. Over the years, North Kore-an diplomats have been caught car-rying hundreds of thousands of su-perdollars; such an incident occured in Hong Kong and Macau in 1994. Experts speculate that there will be a possible increase in North Korean counterfeiting activities under the

new leadership of Kim Jong-un.While the bills had been detected

abroad in years prior, North Korean superdollars were /rst found on U.S. soil within a shipment of commercial goods from Yantai, China, aboard a container ship sailing under a Pana-manian 1ag. Federal agents contin-ued the search and seizure of suspect shipments, /nding $3 million of these superdollars on shipments across the U.S., including $700,000 in Long Beach, California. A man named Chen Chiang Liu, originally from Taiwan but with ties to North Korea, was also sentenced to more than 12 years in prison for the laundering of several millions of superdollars in Vegas slot machines. Fearing possible retribution, he declined to trade in-formation about North Koreas coun-terfeiting program in exchange for a lighter sentence.

As such, investigators still do not know exactly how the North Korean government has obtained the exper-

tise, technology, and materials re-quired to produce such high-quality counterfeits. Sales of the speci/c type of intaglio printing press used by the U.S. are highly restricted. Many ex-perts believe that such a device had been operating in East Germany be-fore it made its way to North Korea prior to the collapse of the Berlin Wall. 0e common counterfeiting practice of washing the ink from $1 or other low denomination bills and printing over them may account for the accurate mixture of cotton and linen in the superdollars. As for the ink, North Korea is able to purchase it from the same /rm as the U.S. in internationally neutral Switzerland.

Naturally, North Korea has nev-er publically admitted a role in the counterfeiting of U.S. bank notes. Ex-perts believe that the nation has two probable motives. 0e /rst aligns it-self nicely with North Koreas stated

continued on page 6

North Korea continues to print perfect USD counterfeitsJuli GitelmanStaff Writer

photos courtesy of www.wikimediacommons.org

Cambodian T-55 tanks will not upset regional balance. Read more on Military page 8. Photocourtesy of www.wikimedia-commons.org.

Nuclear energy promises to play a large role in Japans upcoming elections. Read more on Politics page 3. Photocourtesy of www.wikimedia-commons.org.

Made In Asia

Conservative candidates elected in South Korea and Japan; bilateral relationship at a low point 0e recent election of conservative leaders in South Korea and Japan theoretically leaves both countries with a shared top-level outlook on the region. However, the current Japanese prime ministers hardline stance on historical issues, and both candidates nationalistic line on territorial issues has proven highly divisive, sinking bilateral relations. On January 4th, 2013, Japan sent an envoy in order to re-establish working relations between both countries, following Park Geun-hyes refusal to meet with her Japanese counterpart in December.

Shinzo Abe was elected as prime minister of Japan on December 26th, 2012. He ran on a conservative /scal, foreign relations, and cultural platform. He has vowed to extirpate Japan from its long-lasting economic depression through a $120 billion stimulus package, and has promised an aggressive central bank policy in order to devalue the yen and help Japanese exports stay competitive. Such a devaluation would risk setting o9 a trade war with South Korea, which competes against Japan for regional and global economic markets. Shinzo Abe has presented himself as a hawk on foreign policy issues, notably in opposing China. During the internal party election in September, Shinzo Abe took the hardest foreign policy line amongst the /ve candidates, calling for the

creation of a full-1edged Japanese army. Whether he is able to overturn Japans peace constitutions limits on Japanese armaments will have to be seen, but it appears he is serious about this intention, having picked a known hardliner, Itsunori Onodera, as defense minister. 0is has been met with protests in South Korea, notably during the envoys visit, due to the disputed nature of the Dokdo/Takeshima Islands as well as memories of Japanese imperialism. Shinzo Abe has fanned historical tensions by visiting the controversial Yasukuni Shrine, which pays tribute to Class A war criminals alongside Japans war dead. 0e internal party debates in September also saw Shinzo Abe support patriotic education,

continued on page 3

News BriefsMade in Asia: All the news youre missing

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Increased Chinese student enrollment in colleges and universities has contributed nearly $5 billion to the US economy in the 2011-12 academic year. Wang Huiyao, director of the Center for China and Globalization, not-ed, the increase of global communication has driven the needs of talented people who are familiar with both cultures. As bilingualism and multicul-turalism become more highly rated skills, the attractions of studying abroad have risen drastically. Rahul Choudaha, Director of Research and Advisory Services at the World Education Services, acknowledges, 1e rise of Chi-na as a contributor to the economies of many US institutions mirrors the increasing in2uence of China in the global economy. 1ere were 61,765 Chinese students enrolled in the US in 2003. By 2011, there were 192,029 students. 1e Open Door Report, published by the Institute of Internation-al Education, said that, 60% of US-bound Chinese students were indexed high in terms of 3nancial resources. Many international students, including Chinese students, are self-funded and pay full tuition, contributing enor-mously to university funds. Choudaha noted, Public institutions have been facing budget cuts and many have been looking to recruit more self-funded students.

story by Libba King

Students from China add $5 billion to US economy Graphite tubes seized in busan alarm international securityHundreds of graphite tubes suitable for use in ballistic missiles were found in a Chinese

ship bound for Syria while the ship was transitioning through the port of Busan, South Korea on November 15. 1e source of the cylinders is said to be a North Korean trading 3rm. 1e case is currently under investigation by the United Nations Special Committee. 1ee possible implications of this incident for international authority in the region are sig-ni3cant. If North Korea and Chinas involvement in the delivery of the weapons is proved, it will represent a direct challenge to UN authority. A4er North Koreas testing of ballistic missiles in 2006, the UN imposed sanctions upon North Korea prohibiting its export of nu-clear weaponry or technology. According to South Korean o5cials, North Korea has violated the UN sanctions multiple times in the past, but it has not been internationally prosecuted for these violations. Whether the UN will impose additional sanctions on North Korea or change its approach in the region in light of the recent incident remains to be seen. China recently encouraged its neighboring states to invest in nuclear nonproliferation projects and restarted talks with a new North Korean regime about denuclearization, positioning itself as a regional leader for peace promotion. Yet Chinas alleged involvement in the recent ship-ment calls into question her commitment to past promise as well as future intentions. 1e 3nal U.N. decision on the case will be made in December.

story by Hye Yeon Park

Dalai Lamas visit to Japan escalates tension in China-Japan Relations

A 10-day visit to Japan by the Dalai Lama has fueled Chinese hostility toward Japan. Tensions have recently escalated between the two countries, particularly in light of a recent escalation of the Diaoyu/Senkaku Islands con-2ict. Labeling the Dalai Lama as a political exile, Chinas Foreign Ministry spokesman, Hong Lei, condemned Japan for infringing upon Chinas internal a5airs. He em-phasized Chinas intentions to oppose any international movement in support of the Tibetan leader-in-exiles secessionist activities. During his November 4th visit, the Dalai Lama delivered a speech criticizing Chinas ethnic policy and territorial sovereignty in front of the Japanese Parliament. His speech gained the Parliaments favor; reportedly, several participants even bantered about forming an o6cial coalition

to support Tibetan independence. Analysts have spec-ulated that the Dalai Lama has deliberately employed the Sino-Japanese territorial dispute to gain Japanese support for his cause, a tactic arguably corroborated by his usage of the Japanese name- Senkaku- for the disputed islands.1e international community is concerned that the recent escalation of tension may hurt the prospect of diplomatic

talks between China and Japan and methods to re-solve the issue of the disputed islands through nonviolent means.

story by HyeYeon Park !rone awaiting the Dalai Lama in Nechung Lhasa Mu-nicipality. John Hill, January 8, 2007. (photo taken in 1993). GNU Free Docu-mentation License.

Googles history in China indicative of future trends

On January 27, 2006, Google China went live with great hopes and expectations. Almost seven years later, the search engines foothold in China has dropped to a mere 4.72% of Chinas Search Engine Tra6c Market Share. Tensions between the company and the Chinese government have plagued Googles operations. 1e com-pany was unwilling to install any functions on its website applications, such as Gmail or Picassa, which might share personal user data with the Chinese government. Similar logic at the leadership level led to Google China restrict-ing Chinese employee access to its production code base, further limiting possibilities for cooperation and innova-tion and hurting its relations with China. Despite experi-mental concessions to Chinas demands and a continuing desire to be 2exible within the countrys cultural norms, Google China has su5ered a serious market value drop, 3rst seen in the poor reception of the Google Maps App and then in the companys stock value. Between Q2 and Q3 of this year, the Maps App lost half of its market value despite no outstanding change in the so4ware. Googles failure in China seems to re2ect a nationalistic inclination of the Chinese to use domestic search engines. 1e three most popular search engines, all of which are Chinese, hold almost 90% of the market share. American search engines hold about 5.5% of this market in total. Although Google has near universal control of the search engine market elsewhere in the world, its strategy for market domination has been unexpectedly ine5ective in China.

story by Diana Macguire

On November 1, 2012, Japanese space-2yer Akihiko Hoshide, accompa-nied by NASA astronaut Sunita Williams, began a spacewalk outside of the Interna-tional Space Station to repair an ammonia leak that originated in the orbiting labs cooling center. Hoshide, along with Wil-liams, was able to replace a vital power unit over the course of two spacewalks in late August and early September. 1e success of their mission must be seen in relation to the time it took to complete. Hoshides four month mission set a new record for the number of spacewalks per-formed by a Japanese astronaut, the total time of which was 21 hours and 23 min-utes. 1e previous record, held by Soichi Noguchi, was 20 hours and 5 minutes. In addition to repairing the ammonia leak on the International Space Station, Hoshide ran several experimentsincluding rais-ing a school of killi3sh and discharging several small satellites into spacein Ja-pans Kibo Laboratory module. No one can say for certain what lies ahead for the now legendary Hoshide; the International Space Station has not released any infor-mation suggesting that he will be involved in future missions. Hoshide returned to Earth on November 19 to his countrys praise and adoration. He humbly tweeted before undocking, 1anks to all of you for your support. Im glad I was born on this beautiful planet Earth. His experi-ence is a testimony to Japans strong posi-tion in international cooperation for space exploration.

story by Diana Macguire

Japanese astronaut sets record for longest space walk

Aki Hoshide exposes a photo of his helmet visor during the missions third session of extravehicular activity (EVA). photo courtesy of NASA

ASEAN nations propose new regional trading bloc

Barak Obama became the 3rst sitting president to visit Burma, a country which has historically had a problem-atic relationship with the United States, on November 19. 1is visit was signi3cant for several reasons. It marked the 3rst post-election trip taken by the newly re-elected president; that Obama chose Asia, and more speci3cally, this country to visit points to the continuing importance of the pivot to Asia in American foreign policy. To some observers, the visit represents a continuation of American attempts to draw smaller Asian nations outside of Chi-nas in2uence. In a speech at Yangon University, Obama was cautiously optimistic about the countrys recent prog-ress. He cautioned about continued di6culties regarding reform and human rights issues, notably with regards to the Muslim Rohingya minority. At the same time, he praised the achievements of Aung San Suu Kyi as well as that of the new government direction. 1e U.S. has just recently removed trade sanctions on Burma. On the Burmese side, Obamas visit represents a new level of con3dence for the government, according to local historian U 1ant Myint-U. Protestors o4en referenced America as a bastion of democracy in symbolic criticism of the then-au-tocratic government; before the new regime, speaking of the United States could be grounds for imprisonment. 1at the government is now con3dent enough to allow and organize an o6cial visit of the president of the United States reveals the depths of the countrys about-face. Obama was greeted with both o6cial and public fanfare; outside the university where he spoke, a former political prisoner held up a sign reading, Welcome AmericansWe need and want democracy. Do help. 1e U.S. presidents visit signi3es possible increased future cooperation between the two countries in economic and human rights issues. story by Liz Chen

Obama becomes !rst president to visit Burma

Obama meets with Myanmars president !ein Sein. photo courtesy of www.whitehouse.gov

1e Association of Southeast Asian nations announced a new trade pact, the Regional Comprehensive Economic Partnership, which would include China and other major regional trading partners, but not the United States, on November 20. 1e founding nations, all ASEAN mem-bers, solidi3ed the agreement at the close of the ASEAN summit meeting in Cambodia. 1is new coalition is seen by analysts as a potential rival to the Obama administra-tions Trans-Paci3c Partnership, a similar trade initiative that is part of the pivot to Asia and excludes China. Some see this partnership as a means of containing Chinas economic dominance in the region. A key issue of con-tention for the Regional Comprehensive Economic Part-nership is the issue of the South China Sea territorial dis-pute: Singapore, the Philippines, Brunei, Indonesia, and Vietnam have contested Chinas position in the area. Sim-ilarly, other Asian countries have o4en voiced concerns over Chinas intervention in the economies and politics of countries such as Cambodia and Burma.

PoliticsMade in Asia: All the news youre missing

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Japan: Shale Gas, Nuclear Disasters, and Upcoming ElectionsHana RudolphStaff Writer

Since the disasters of March 2011, when three reactors at the Fukushima Nuclear Power Plant went through full meltdowns from the shock of a 9.0 earthquake o3 the coast of Japan, much of Japans populace has been actively engaged in protests against the continued commercial usage of civilian nucle-ar reactors. 4e consequences of the nuclear incident, assessed to be Level 7 (the maximum number) on the In-ternational Nuclear Event Scale, are still detectable in the form of the high levels of radioactive particles that re-main in the atmosphere. Moreover, though there were no immediate deaths from radiation exposure, predictions for cancer deaths in the region have grown as high as 1,000 people. 4is is an extremely signi5-cant development for a country that has already struggled with, and been marked by, the cancerous a6ermaths of the atomic bombs dropped on Hi-roshima and Nagasaki. As a result,

statistics show that more than 80 percent of Japanese are now anti-nu-clear. 4e Japanese government and relevant corporations have expressed e3orts to 5nd alternative sources of energy; shale gas has been a recent consideration in this respect. In-deed, the shale gas revolution in the United States has inspired Japan to investigate the potential of shale gas as an energy source in Japan. As of now, Japan has begun purchasing shale gas at U.S. market prices, and hopes abound for the continued ex-ploration of non-conventional ener-gy sources. However, this is a day-by-day attempt to tackle the energy problems that the nuclear rejection has caused, and the instability of these tentative solutions has raised serious concerns. In light of this is-sue, much of the electoral debate be-tween the two primary partiesthe just-defeated Democratic Party of Japan (DPJ) and the newly elected ruling party, the Liberal Democratic Party (LDP) was focused around the question of nuclear energy. 4e dissolution of the lower house of Parliament, which constitutional-

ly requires national party elections within forty days, was called as a result of heavy LDP pressure on the DPJ government. While elections had not been scheduled until the summer of 2013, it was considered largely advantageous for the LDP to precipitate the elections, because of the DPJs lack of popularity. 4e LDPs rather pro-nuclear stance was seen as a political risk in these elec-tions; this turned out to be unfound-ed, however, as they won a landslide victory. In its pre-election pledges published on November 27th, the DPJ announced its commitment to end nuclear energy in the 2030s. 4e LDP, on the other hand, has made public its stance to continue nuclear energy usage for the sake of the Japanese economy and standing within the global market. Indeed, the LDP has vowed to restart all re-actors within the next three years. It remains to be seen whether the DPJ will be able to overcome Japanese civil societys widespread mistrust of nuclear energy.

November closed with the 21st an-nual Association of Southeast Asian Nations (ASEAN) summit hosted by Cambodia in its capital Phnom Penh. 4e topics of discussion, from trade to security, are of vital import to the regions development. 4e conference was attended by a U.S. delegation which included President Obama, Secretary of State Hillary Clinton, and Secretary of Defence Leon Panet-ta. 4is marks the 5rst time a sitting U.S. president has visited the small Asian nation which borders 4ai-land, Laos, and Vietnam. 4e goal of this visit, given the Obama adminis-trations strategic pivot towards Asia, was to foster ties with a nation amidst growing regional tensions. Howev-er, serious questions exist about the legitimacy of Prime Minister Hun Sens government, and the morality of strengthening relations between the two nations. A6er decades of civil wars, foreign invasions, and a genocide in which millions of Cambodians have died,

the nation currently exists as a con-stitutional monarchy with Prime Minister, and former Khmer Rouge commander, Hun Sen holding almost continuous o7ce since 1985. Despite popular elections, universal su3rage and international pressure, corrup-tion at high levels of government is endemic, and political oppression and violence against journalists, activists, and citizens is common. It therefore came as a surprise when U.S. defense secretary Leon Panetta met personally with Tea Banh, Cambodias minister of defense, to discuss the expansion of a counter-terrorism training pro-gram by U.S. special forces, despite no evidence of any Al-Qaeda or other terrorist group activity in Cambodia since 2003. In addition to the expansion of the battalion sized program, the U.S. has also held joint military exercises with Cambodia. Major-General Hun Manet, the Prime Ministers eldest son, serves as a deputy commander within the nations military. 4e ad-vanced military training of a Cambo-dian counter-terror unit in a nation without terrorists is unusual. 4at this unit would be under the direct

command of a member of a family with a history of human rights abuses is cause for concern. Moreover, this is by no means an isolated act. 4e US government has shown an increas-ing interest in fostering closer mili-tary ties with other Southeast Asian nations with less than stellar human right records such as Indonesia and Burma. 4e fear is that in its rush to win over potential allies in what is fore-casted to become a region of supreme global importance, the US is giving little thought to the domestic nature of the polities it is engaging with. US support of oppressive regimes for strategic reasons harms its credibility as leader of the free world. Support-ing Hun Sen, and leaders like him may contain the future rise of Chi-na or prevent the spread of regional terrorism, but the costs to American integrity are high, and as the US be-gins to mount a more active role in the region, perhaps we should spare a thought to how ordinary people in these nations and not just their politi-cians will be a3ected.

Friendship trumps human rights concerns in US-Cambodia Summit

Alexandre Mason-SharmaStaff Writer

Obama meets with leaders at the US-Cambodia Summit. photo courtesy of whitehouse.gov

continued from page 1

which would likely deny, downplay, or omit mentions of Japanese war crimes during the occupation of Korea and the Second World War. He has denied the existence of Korean women enslaved by the Japanese as comfort women, a euphemism for sexual servitude. More broadly, he has stated that Japan should re-think its 1995 apology for war su3ering. 4ese factors help explain Park Geun-hyes unwillingness to meet her counterpart. 4e daughter of South Koreas longest-ruling dictator, Park Geun-hye was elected as president of South Korea on December 19, 2012. She ran on a campaign of stability and conservative action with regards to the economy and North Korean provocations. In the economic sphere, she promised cautious reform of the chaebol in order to address deepening inequality. 4e chaebol are family-run conglomerates which had been supported by the South Korean state as part of their economic development model, but have been increasingly contested by civil society for deepening inequality and for the decay of traditional morality. Regarding foreign policy, her opponent, Moon Jae-in, had promised a return to the Sunshine Policy- diplomatic overture, investment, and aid- towards North Korea. Park Geun-hye proposed a more wary approach, but declared herself willing to consider non-politicized humanitarian aid and a meeting with the new North Korean leader, Kim Jong-un. If Park Geun-hyes stance on North Korea is favourable towards dialogue, she holds a tough, nationalistic stance regarding the Dokdo/Takeshima island dispute. In sum, the current diplomatic low is the result of two nationalistic candidates seeking to better their regional economies- sometimes in zero-sum fashion- as well as hold on to rival territorial claims which are reviving deep historical tensions. 4at Shinzo Abe is so outspoken about his controversial stance on these historical issues can only exacerbate the current situation.

At the same time, several economic and foreign policy issues would bene5t greatly from a concerted South Korea-Japan policy. In the economic realm, coordinating Japanese monetary policy with the region would help prevent hostile tit-for-tat devaluations. Regarding foreign policy, a revival of the intelligence sharing agreement 9oated in June 2012 would be mutually bene5cial. Opportunities for such bilateral ties given the two candidates stances are at an all-time low. And yet, they may provide South Korea and Japan the tools necessary to revive their economies and prevent North Korean escalations, a threat for both countries.

An aerial view of nuclear reactor 1 of the Fukushima power plant that was e!ected during Japans March 2011 disaster. Photo courtesy of wikimedia commons.

New East Asian Leaders fuel poor Korea-Japan relations

Japanese Prime Minister Shinzo Abe. Photo courtesy of wikimediacommons.

BusinessMade in Asia: All the news youre missing

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A1er recent in-spection by the Hu-nan provincial qual-

ity supervisor, liquor produced by the Chinese

company JiuGuiJiu was found to contain exces-sive levels of plasticizer.

In a statement released to the Shenzhen stock ex-

change, the company said that it is complying with requests from quality control to strictly monitor its distribution and packaging processes in order to identify and remedy the issue. 2e Xinhua News Agency reported that some

drinks produced by JiuGuiJiu were discovered to contain three times the

permitted level of dibutyl phthalate, a chemical found in plastic containers

and o1en used to 3avor drinks. On the day of the news re-

port, the company stated that its products met

national standards and that there was

no health risk posed to con-sumers. 2e c o m p a n y continues to s t rengthen its quality supervision infrastruc-ture in order to p r o d u c e safe and high qual-

ity products for buyers,

JiuGuiJiu, in a statement re-

leased to the public, said. At the

same time, we extend our sincere apologies

to consumers and investors

over this recent issue. Inspections of JiuGuiJiu product by the General Administration of Quali-ty Supervision, Inspection and Quarantine found that some samples contained as much as 1.04 mil-ligrams of dibutyl phthalate for every kilogram of the beverage. 2e health ministry has set a 0.3 milligrams per kilogram limit on this chemical. However, according to the China Alcoholic Drinks Association, tests reveal that most Chinese liquor products contain plasticizers, with an average of 0.537 milligrams per kilogram. 2e same agency stated that Chinas alcohol industry is currently discussing national limits on plasticizers con-tained in alcoholic beverages. On November 21st, following news of JiuGuiJius contaminated bev-erages, shares of stock in liquor fell in Shenzhen and Shanghai. In Shenzhen, share price of Chinas largest liquor maker, Wuliangye Yibin Co., fell by 4.7 percent to 27.46 yuan. 2is drop in share price marks the lowest price for Wuliangye Yibin Co. stock in more than two years. Additionally, shares in Jiangsu Yanghe Brewery Joint-Stock Company, Chinas third largest distiller, dropped 3.4 percent to 96 yuan. On the Shanghai trading scene, shares in Kweichow Moutai Co., the worlds second-larg-est distiller, dropped 0.6 percent to 217.29 yuan. Shares of JiuGuiJiu, owner of Xiangquan and Jiu-gui spirit brands, resumed trading on November 21st a1er a four-day trading halt. JiuGuiJiu stock plunged 10 percent in the a1ermath of the chem-ical incident, to a price of 38.54 yuan per share. 2e recent chemical debacle has unequivocally a4ected how consumers perceive the company. Its a blow to consumer con5dence, said Liu Hui, a Shanghai-based analyst at CSC Securities HK Ltd. 2e whole sector will be under pressure in the short term. 2e fall in share price for Chinese alcohol makers mimics the overall pattern of de-clining Chinese stock. 2e market is approaching the 2,000 benchmark index, which will have neg-ative signi5cance for investment in China. 2e 2,000 level is an important gateway for investors, said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co. Once its approached, some money will buy on dips on expectations about possible government support. But theres no big room for the index to go up either as theres a lack of positive macroeconomic news.

story by Ari Multak

Amid intense anti-Japanese sentiment among Chinese con-sumers due to the Diaoyu Islands dispute, Japanese car compa-nies made a 3ashy showing and bold claims at the 10th China International (Guangzhou) Automobile Exhibition, Chinas biggest auto event of the fall season.

According to analysts, the decline of Japanese car sales in China has predated the Islands dispute. Intense competition in the largest auto market in the world had made it di6cult for even Toyota, the largest car company in Asia. Once the Islands dispute began in September, the problems for the Japanese car companies were compounded. Widespread protest and boycott against Japanese products culminated in violence against Japa-nese cars, torched dealerships, and the beating of a Japanese car driver in Xian. Consequently, Japanese car sales plummeted in China, the largest auto market in the world. 2e combined sales of Japanese companies are 59% lower in October than that same time last year. 2eir market share also dropped from the 22% pre-Island dispute to the current 9%.

However, Zeng Qinghong, general manager of Guangzhou Automobile Group Co. which operates joint ventures with Toyota and Honda, believes that the worst is over. While con-sumers are hesitating, Toyota has presented an aggressive and optimistic strategy to recoup its heavy fourth quarter losses in China. According to Namrita Chow, an analyst at IHS Auto-

motaive, such a push is necessary.In 2013 Japanese brands will go all out to regain any lost ground encountered in the fourth quarter of this year ... 2is will mean new model launches, dis-counts and good service packages as well as an increased lineup of models on o4er to consumers in China, he concludes.

Echoing this sentiment, Dong Changzheng, executive vice president of Toyota (China) Investment, said 2ere is no change in Toyotas development plan in China, at Guangzhou despite the opposition in China. 2e plan was for Toyota to move 1 million vehicles in China in 2012, which is 13% more than last year. Analysts now 5nd this highly unlikely, but not for a lack of trying on Toyotas part.

Toyota showed 46 models at Guangzhou this year, using up 12.5% more exhibition space than last year. At the Auto Ex-hibition, Toyotas head of China operations, Hiroji Onishi an-nounced that Toyota would be unveiling 20 models in China over the next three years. Two brands would be independently launched by joint ventures FAW Toyota and Guangqi Toyota next year. Toyota will also be pursuing its Cloud-Action plan, which would include huge investments in the construction of what will be its largest R&D department in the world, just out-side of Shanghai, in order to create more e6cient energy saving technology for hybrid cars. Toyota hopes that these new energy cars will eventually make up at least 20% of sales in China.

Other Japanese car companies, such as Honda and Nissan plan to launch more models as well and employ sales strategies unique to the situation in China. One such strategy is to insure

cars against any damage, including anti-Japanese violence.

2is scramble re3ects Chinas importance. With China expected to account for 5% of glob-al auto-market growth by volume between 2011 and 2020, according to McKinsey, and be one of the worlds largest markets for new-energy vehi-cles, no car company can a4ord to fail in China. 2e pressure is increased by the competition in the Chinese auto market. 2e longer Japanese car companies are out of commission, the more likely it becomes that their market shares will be lost to other companies, such as South Koreas Hyundai.

Without a resolution to the Diaoyu Islands dispute, Japanese car companies may contin-ue to su4er through 2014. Chow puts it bluntly: Growth for Japanese brands will depend on how quickly the two countries solve the territorial dis-pute peacefully.

Angela PyoAsst. Layout Editor

Anti-Japanese sentiment creates trouble for Toyota sales

Plastic chemicals found in Chinese liquor, industry feels negative e!ects

2e European Commission decided on November 27th to cease anti-dumping duties imposed on Chinese lighters, a ruling which came into e4ect on December 12th. 2e case against Chinese lighters was initially made on May 14, 2002, when the European Federation of Lighter Manufac-turers claimed that imports of lighters pro-duced in China violated anti-dumping laws; China vehemently denied the charges, but was faced with anti-dumping duties. BIC, a disposable lighter manufacturer located in France, recently 5led with the European Commission to extend the anti-dumping measures imposed on China for another 5ve years. BICs petition was denied.

Xinhua News reports: the EC said that Chinese lighter makers do not pose a threat to their counterparts in the EU, citing the fact that BICs pro5ts enjoyed its biggest surge on record this year. Accord-ing to Xinhua News, global annual sales of lighters amounts to 11 billion, about $4 US dollars. Chinese lighter manufacturers, mainly based in East Chinas Zhejiang and Central Chinas Hunan provinces, said can-celing the anti-dumping duty would bene5t the whole industry, reports Guangming Online.

Currently, the industry exports mainly to Southeast Asia and the Middle East. We will increase exports to Europebecause of the European markets higher pro5t margins and large client base, said Liu Junxiang, manager of Xingda Lighter Manufacturer Co. in Hunan.

2e new ruling in this anti-dumping case will speci5cally a4ect Chinas industry for disposable pocket lighters. Lighter manufacturers in Wenzhou, Zhejiang Province will be less a4ected, because they mainly produce mid and high-end re5llable lighters, said Huang Fajing, head of Wen-zhou Lighter Producers Association.

2e European Union began its an-ti-dumping probe on Chinese producers of lighters in April 1990 and made a ruling in November 1991, meaning that the punitive measures against China have now been in e4ect for 21 years. In 2003, major manufacturers of lighters in China won an anti-dumping suit against the European Federation of Lighter Manufacturers. 2is victory marked the 5rst time China came out on top when charged for dumping since the country joined the World Trade Organization in 2001. Chinas Ministry of Commerce advises that the European Commission should avoid the overuse of trade remedy measures because of the potential negative impact on trade ties be-tween China and countries within the Eu-ropean Union. 2e ministry also expressed the wish that the European Commission deal with other anti-dumping cases against China in an unbiased and just fashion.

Ari MultakBusiness Editor

Anti-dump-ing duties on lighters li1ed in China

art by Alessandra Felloni

art by Alessandra Felloni

EconomicsMade in Asia: All the news youre missing

5

1e 18th National Congress wrapped up on November 15th and with its conclusion, China overhauled its leadership. Out went President Hu Jintao and Premier Wen Ji-abao; Xi Jinping and Li Keqiang stepped into their respective positions. While these changes are not yet o2cial, they are expect-ed to be rubber-stamped at the 12th Na-tional Peoples Congress, which is sched-uled to take place in early March 2013. One of the main issues that has been highlighted during this transition is the type of change this new leadership will bring to the coun-trys economy. 1e recent slowdown in the nations GDP growth has stirred expecta-tions for the new leadership to rejuvenate the countrys markets.

China is vulnerable to 3uctuations in for-eign demands for goods due to its GDPs heavy dependence on exports. 1is has re-cently hurt Chinas economic growth as for-eign demand for goods has been stagnating due to the worldwide recession since 2008. Nonetheless, since 2009, Chinas exports has consistently rose to become 31% of its GDP in 2011, while domestic consumption fell from 44% to 35.4% from 2002 to 2011. While exports rose 11.6% in October 2012 compared to a year ago, China is still sus-ceptible to worldwide shocks. 1e looming 4scal cli5 in the United States also presents itself as a threat to Chinas economic sta-bility, as the US is Chinas second largest trade partner behind the European Union, accounting for around 20% of Chinese exports. Even if the 4scal cli5 is averted through a bipartisan solution, repercus-sions for the worldwide economy could still be foreseen.

Chinas leadership transition thus comes at an opportune time for the economy. Two main priorities for the economy have been articulated as 1) transitioning from a man-ufacturing economy to one of innovation and 2) shi6ing the economys driver from exports to domestic consumption. As seen from its falling percentage of consumer

demand and its rising export percentage, China must change its strategy and pro-mote consumer and domestic spending in order to prevent itself from becoming over reliant on export-based growth. 1is is a prudent thing to do as by looking at the events of the past few years, one can see that the intertwining of the world economy has made export-based countries highly susceptible to the demand of other coun-tries. 1ankfully, Xi and Li are both pro-re-form. Li in particular has been a staunch advocate for reforming Chinas economy and focusing on domestic consumption. In October 2010, Li stated that it was im-portant for China to achieve a modern industrial structure in order expanding its domestic consumption. 1is could be achieved through industrialization and urbanization, according to Li. Technolog-ical and scienti4c innovation were also two keys for modernization and increasing local demand. Even earlier, in a February 2010 speech, Li stressed the importance of changing Chinas economic structure in or-der for the country to continue its growth by boosting domestic consumption. Xi is

also no stranger to economic reform. A son of an economic reformer, Xi is now faced with tough choices. 1e Resolution of the 18th National Congress stated that one of Chinas primary goals would be to develop domestic demand by prioritizing service and other industries. However, shi6ing all the focus away from export goods would be unreasonable as it still account for a large portion of Chinas GDP. China can still undertake large investment projects in order to arti4cially stimulate demand. 1ese projects would have to take place in lower-tier cities though, as Chinas main cities have become oversaturated with con-struction projects, resulting in rising pric-es. Slight changes in reserve and interest rates could also help to stimulate domestic consumption. Furthermore, by nurturing and growing the middle class, China would be able to attract more foreign investment, which would help decrease the reliance on exports. In its current state, China is in need of economic reform in order to in-sulate itself from lagging international de-mand. But with Xi and Li, China has two leaders who seem to be suitable for the job.

With Chinas decreasing GDP growth, the Chinese government is turning to private investment to rejuvenate its economic growth. Local governments are eagerly inviting private investors to fund local projects, as they themselves face decreasing 4scal revenue and rising debt. In the third quarter alone, private Chinese investors have poured nearly $50 billion worth of funds into local government projects. Sichuan,Guandong, Zhejiang, Hubei, and Wuhan are among the provinces in which local governments have introduced policies to support such private investments, and more are turning to private investments as the economy deteriorates. Private investment at 4rst seems like a reasonable and promising method for revitalizing the economy. A6er all, Mitt Romney stated during his 2012 election campaign,A temporary funding package can give an economy a boost, but it cant sustain an economy - not for long. It cant pull the whole cart because at some point, the money runs out. Well couple aid with trade and private investment and partnerships to empower individuals, encourage innovators and reward entrepreneurs. However, is such private investment the right alternative for China? 1e Chinese economic stimulus package injected US $586 billion into the Chinese economy over 2008-2010, and was considered by many to be successful due to Chinas subsequent GDP growth. 1e success of the past stimulus suggests that another stimulus

Rise in shadow bank-ing as China favors private investment

Chinas politically fueled economic transition

package would be a viable alternative to large amounts of private investment.More importantly, encouragement of private investment brings another problem unique to Chinas economic system: shadow banking. Shadow banking involves 4nancial intermediaries creating credit across the 4nancial system. However these intermediaries are not subject to regulatory oversight. Due to this lack of regulation, these institutions can excessively leverage their investments. By taking more risky investments, there is a larger chance that shadow banks would default on its depositors.In the context of China, however, shadow banking is a problem that is much more serious than may be implied by its de4nition. In China, more than 90 percent of the nations 42 million small businesses are unable to get bank loans, while such investments o5er returns at least several times higher than deposits. 1is makes shadow banking extremely

common in China, and lending from shadow banking-system totals as much as $2.4 trillion, about one-third of Chinas o2cial loan market. In China, a common process involves Chinese banks collecting capital from retail investors and calling the loans wealth management products, leaving them o5 the balance sheet. Banks themselves are o6en directly involved in buying or issuing a lot of bonds and shadow bank debt. Such o5 balance sheet activities allow lending institutions to lend more than the typical commercial banks

due to lack of supervision, thereby having a higher risk of default. Shadow banking in China has mostly been concealed, and the encouragement of private investment will o5er a rare peak of such activities. 1e prevalence of shadow banking in China explains the large risks involved in boosting private investment. Without strict regulatory supervisions enjoyed by commercial banks, shadow banking has signi4cant repayment risks. Such lack of regulations could lead to defaults in thousands of investment projects, causing

turmoil in the Chinese 4nancial system. Along with shadow banking risks, the falling tax revenue and land sales combined with rising expenses and interest costs from previous borrowing could pinch cities and counties. 1e risks associated with the prevalence of shadow banking in China, and the alternatives such as the stimulus package that proved to be successful in 2008 brings to question how e5ective encouraging private investment will be.

Chinese Monetary policy impeded by con3icting goals and agendas

Ever since Deng Xiaoping thrust China onto the international stage, Chinese policymakers have long dreamed of the day when the Yuan would replace the Dollar as the worlds dominant currency. Starting in 2009, Chinese leaders began to loosen controls over their currency in pursuance of this goal, as well as encouraging its use in trade settlements and by 4nancial institutions. However, despite decreasing their control of the Yuans 3ow into foreign markets, Chinese policy makers remain wary of allowing the value of the Yuan to rise, which limits its ability to compete with the Euro and Dollar that can be converted to other currencies without government interference. In early November of 2012, a6er allowing the Yuan to appreciate for weeks, Chinese government o2cials capped the value of their currency against the dollar, breaking their pledge to allow market forces greater control the currencys fate. While bene4cial to Chinese exporters, this will harm the investors Beijing has tried to use to help push the Yuan as a global currency, as investors had bet on the Yuans continual rise. 1is move crystallizes the con3ict in Chinese monetary policy: torn

between Policymakers desire for global prestige for the Yuan, and their desire to control the currency to the advantage of exports, especially in US markets.

To understand this con3ict it is necessary to understand why China pursues the monetary policy it does. Saying that China has a 4xed currency is something of a misnomer, as Chinese o2cials instead allow the Yuan to 3uctuate in value compared to the dollar within a band of permissible value. Since 2005, the value of the Yuan has actually appreciated about 6%(10% in China when adjusted to in3ation). Most critics of this policy focus on how Chinese currency manipulation creates a balance of trade problem for the US, by keeping Chinese products cheaper than US products. Since the Yuan is 4xed to the dollar, as Chinese goods increase in US markets, the Yuan does not appreciate as much as it would if both currencies were 3oating. However, most Chinese policymakers instead cite their desire

to avoid the destabilizing e5ects of high in3ation which might slow down Chinas growth and lead to civil unrest. Premier Wen has defended this policy emphasizing Chinas devotion to trade balance rather than surplus, and gradual appreciation of the Yuan. He suggests that, Chinas e5orts to maintain a stable yuan-dollar exchange rate [despite pressure to devalue] during

the 1998 Asian 4nancial crisis helped the world. By keeping its currency stable, he explains, China was able to maintain con4dence in its currency and promote 4nancial stability, which prevented the crisis from having

wider repercussions. Critics of Chinese monetary policy

claim that the value of the Yuan should be anywhere from 20-30% higher. 1ey also suggest that one of the side-e5ects of Chinese currency policy is low-interest rates due to lack of competition between banks, and capital controls that limit the 3ow of Chinese capital outside of the country. Facing this repressive 4nancial

environment, and fearful of investing in Chinas highly overvalued housing market, many Chinese have found ways to take their 4nancial capital out of the country to 4nd better markets. Over the summer of 2012, it is suggested that as much as 80 billion dollars of capital 3owed out of the country illictly through various means. While these out3ows probably stopped in September, it demonstrates acute problems in Chinas 4nancial sector, and a strong 4nancial sector in China is key if the Yuan is to compete with other currencys internationally.

If the Yuan is to compete with the dollar as an international currency China will need to address both the domestic concerns of investors seeking better 4nancial markets at home as well as the worries of investors abroad wary of currency manipulation. Recent evidence suggests China still has a long way to go to 4nd a viable middle ground between its dual goals of currency stability and international reach for the Yuan. Its continued vacillation will only further dissuade investors from placing their faith in the Yuan instead of the dollar as a store of their wealth.

Ethan WooStaff Writer

Ethan WooStaff Writer

Kenko UeyamaStaff Writer

the value of the Yuan should be anywhere from 20-30% higher

Generally speaking, there are two golden ways to advertise ones product today: sexualized images or comedy. A recently

opened Chinese fashion store called Yuekou and an auto

show in Wuhan, China are prime examples of the

industrys use of both these methods.

In China, as well as the US, auto shows are o!en accompa-nied by models in bikinis, providing eye-candy for many viewers and thereby, a d v e r t i s e r s hope, in-creasing de-sire for the cars. Due to the s c a n t i -l y - c l a d m o d -

els, many Chinese neti-

zens refer to auto shows as boob shows,

but this terminology can make a person rather uncomfortable when di-rected at the 2012 Chutian Automobile Culture Festi-val, which kicked o" No-vember 16 in Wuhan. #e show shocked some view-ers and may have crossed the line into downright inappropriate territory by featuring a number of little girls strutting their stu" in fur boots and bikinis. Is it cute, or just creepy? Is it, like many beauty pag-eants in the US claim to

be, a lesson in con$-dence, or is it instead a harmful sexualization of young girls?

On the completely opposite end of the spectrum one $nds Liu Xianping, a 72 year-old Chinese man who has been posing in womens clothing for Yuekou, a closing store opened by his granddaughter and four other recent Chi-nese college gradu-ates. Chinese netizens were immediately taken with Liu, prais-ing him for his great $gure and slim legs; the pictures have also been circulated on so-cial media worldwide. In an interview, Lius granddaughter re-vealed that the mod-eling gig came about a!er Liu gave advice about the mixing and matching of the cloth-ing, and many of the looks in the photos are actually his idea. Even before the over-whelming praise, Liu was hardly worried about public percep-tion, stating that he was old with nothing to lose, and only cared about being happy. In a country with comparatively conservative family ideals, Lius modeling performance could point to a growing openness towards non-heteronormative gender roles.

Little girls in bikinis and a

cross-dressing grandfather are two advertising methods that would have been unheard of a few short decades ago in China, but the countrys rapid econom-ic development has, inevitably, also spurred numerous social transformations. For better or worse, there will certainly be more changes to come as China continues to evolve.

Humor is one of the hardest things to translate cross culturally, and this could not have been more evident when Peo-ples Daily, a state-run Chinese news-paper, published an article November 27th, honoring Kim Jong Un for being named Sexiest Man Alive by satirical news website #e Onion. With West-ern media so bere! of anything positive about North Korea, one can certainly imagine why China would want to em-phasize something nice $nally being said about their neighboring commu-nist countrys leader. Its too bad, then, that this nice thing was not meant to be

taken seriously. Completely missing the sarcasm pervasive throughout all of #e Onions stories, the Peoples Daily pub-lished not one, not two, but 55 photos showering praise and admiration on North Koreas top leader for the dubi-ous honor of being named #e Onions Sexiest Man Alive. #e Onion, basking in the glory of what may become one of their most legendary fake stories, posted an update on the article with a link to Peoples Daily, praising them for their exemplary reportage. While #e Onion says it did not intend to fool the Peoples Daily, the prank has certainly caused a good deal of embarrassment for the Chinese newspaper, which, a!er their mistake had been pointed out by numerous Western media outlets, has now removed the article from their site.

Even more embarrassing than this particular blunder is the fact that it is not the $rst time a state-run Chinese newspaper fell victim to #e Onions ruthless sarcasm. In 2002 the Beijing Evening News published a story from the Onion about how the US Congress was demanding a new building under the threat they might leave Washing-ton DC. Even though China has twice misconstrued #e Onions satirical hu-mor to humiliating results, it is not the sole foreign nation to have done so. In September of this year, Irans semi-of-$cial Fars News Agency was fooled by an article that claimed Iranian President Mahmoud Ahmadinejad was more popular among rural white Americans than President Obama. Oops. In the fu-ture, perhaps stories should have more than one (reliable) source before publi-cation.

Hopefully these incidents serve as a lesson to foreign media outlets who might $nd an interesting story or two on #e Onion. Because of Chinas spe-cial relationship with North Korea, it is understandable that they would want to help portray a positive image of Kim Jong Un, but its still surprising that such a large and professional newspaper as the Peoples Daily could be fooled so easily.

Breaking news: #e Peoples Daily later removed the article and refused to comment on the blunder. Proud of their accomplishment, #e Onion directed their readers towards the Peoples Daily website saying, Please visit our friends at the Peoples Daily in China, a proud Communist subsidiary of #e Onion, Inc. Exemplary reportage, comrades.

Fashion-forward grandpa and Chinese Honey Boo BoosJuli GittelmanStaff Writer

Last year, I hiked Emeishan. Id tagged along on my laowai friends version of chaosheng, a pilgrimage to one of the sacred mountains. China has a lot of these sacred mountains, each with their own story. Emeishan is one of the Four Sacred Mountains of Buddhism, not to be confused with the Five Great Mountains or the Four Sacred Mountains of Daoism. It is traditionally thought to be the seat of the Pux-ian bodhisattva, who is associated with some of the earliest records of martial arts in China. Its located in Sichuan province, quite close to the gigantic Leshan Buddha and the Jiuzhai-gou national park. Today, Emeishan is known for its golden statue of Puxian and the view of the sunrise at the peak. #e mountain is about 3000 meters high (10,000 !. for non-metric users), populated with a speckling of villages and roughly 76 temples. During our two-day hike, we passed endless misty cli" faces, pic-ture-perfect bubbling streams, densely quiet forests and stately temples. #e mountain is also home to an astonishing number of what we learnt to be Tibetan macaques, monkeys who have adapted well to the tourist in/ux and are expert at literally shaking down passersby for food. Its funny to watch until it happens to you.

You can avoid the monkeys by taking a bus and then a cable car up to the summit (it is a major tourist site a!er all), but if you have the time I would recommend walking it. #e chance to get increasingly lost over the course of two hours a!er losing your map, eventually stumbling on an abandoned Buddhist ceme-tery, is, while creepy, not to be missed. Sim-ilarly, neither is the experience of bargaining for beds in a monastery, then waking up earlier than the sun and panting your way up the $rst steep incline of the day, only to be passed by a grandfatherly $gure carrying a basket larger than he is. It is a fairytale sort of China, alter-nately idyllic and surreal, peaceful and terrify-ing. (i.e. monkeys. I cant stress this enough.) Emeishan is a big tourist destination today, with a lot of the drawbacks that Chinese tour-ist sites havemegaphone wielding guides, same-hatted tour groups, and aggressive ven-dors. Taking the proverbial scenic route takes some time and yields a little more hardship, but it avoids a lot of the aforementioned has-sles and provides time for the re/ection and appreciation that the mountain ultimately de-serves.

Exploring East Asia

Emeishan, one of the Four Sacred Mountains of Buddhism, is a peaceful hiking spot. !e mountain is adorned with monkeys, a great view, temples, villages, and its famous golden statue of Puxian. Photo courtesy of Liz Chen.

Liz ChenStaff Writer

A lesson in sarcasm: embarrassment at Chinese newspaper Peoples Daily

Juli GittelmanStaff Writer

OdditiesMade in Asia: All the news youre missing

6

Little girls in bikinis and cross-dressing grandfathers advertise fashion. photos courtesy of Yueko and www.o"eatchina.com via Weibo.

Monkeys and hiking Emeishan

Kim Jong Un waves to his fans as !e Onions Sexiest Man Alive. photo courtesy of !e Peoples Daily.

OdditiesMade in Asia: All the news youre missing

7

North Koreans spend fake Franklins

Continued from page 1anti-American, anti-Imperialism

goals: to destabilize the US economy and 1ght US hegemony. 2e presence of these superdollars certainly detracts from international faith in US curren-cy, but with international electronic and cash money circulation in the trillions of dollars, the total amount of super-dollars in circulation, which analysts estimate to be between $15 to $25 mil-lion (some estimates do go up to several hundred million), hardly makes a dent. 2e second motive therefore seems more important, and is also support-ed by o3cials who have spoken with high-level North Korean defectors, in-cluding Hwang Jang Yop, a former Sec-retary of the Korean Workers Party and tutor to the late Kim Jong Il. North Ko-rea is a nation badly in need of funds,

and printing their own US dollars is an easy way of purchasing food as well as missile parts for their nuclear program. Specialists say counterfeiting became especially important to North Korea in the 1980s as the planned economy began to disintegrate, and again in the past few years a4er the disastrous deval-uation of the countrys currency. More speci1c uses are harder to prove, though they certainly paint the North Korean government as a corrupt entity, a vision in line with Western perceptions of the nation. 2e fake bills have supposedly been used to keep the elite supplied with 5ashy foreign-made cars and liberal quantities of cognac. Counterfeiting is also believed to support many illicit ac-tivities on which many claim the North Korean economy depends, including methamphetamine production and ivo-ry smuggling.

While these counterfeiting activ-ities and North Koreas supposed in-

volvement in an international network of organized crime are enough to get ones head spinning in a tangled web of conspiracy theories, they also present a diplomatic puzzle for US o3cials. How is the US government supposed to 1ght counterfeiting in a nation with which it has no direct diplomatic ties, and who has already stubbornly continued its nuclear program despite strong interna-tional condemnation and UN sanctions? Some have proposed the idea of simply discontinuing the $100 bill altogether; it is, a4er all, the most counterfeit bill (American readers might be aware that many US convenient stores and gas sta-tions o4en refuse to accept hundreds for this reason) in addition to being used in other crimes like the drug trade. How the US decides to handle this issue in the future could have wide-reaching implications for diplomacy, organized crime, and international peace.

Juli GitelmanStaff Writer

Photo courtesy of commons.wikimedia.org

Mochi ice cream creator dies

Mochi ice cream: six 5avors of ice cream balls wrapped in a thin layer of gooey rice cake. We all know and love this famed Japanese delicacy. 2e ice cream on the inside is bitingly cold, the mochi wrapping is chewy, and together, they transform into a treat that is both unique and delicious.

However, the mochi ice cream loving community recently su7ered a great loss. Frances Hashimoto, the most widely-credited inventor of mochi ice cream, lost her battle with lung cancer in early November at the young age of 69. Survived by her husband, two sons, and sister, Hashimoto remains a legend in the world of Japanese confectionery in the United States.

Born in a World War II intern-ment camp in Arizona, Hashimoto took over Mikawaya, her familys confection-ary business based in Los Angeless Lit-tle Tokyo district, in 1970. One day, she had the novel idea to wrap balls of ice cream in mochi, and soon therea4er the

companys most well-known treat was brought to market.

Some credit the invention to a South Korean company called Lotte, which claims that it 1rst began selling the product in the 1990s, but regard-less, Hashimoto is still an icon. But no matter which of these two parties 1rst dreamed up this delectable indulgence, its important to remember that the Jap-anese themselves had no part in it.

2is $13 million-a-year busi-ness has become an American staple, making its products out of materials which are, contrary to popular belief, 100% sourced from the USA, not Japan. And what makes mochi ice cream even better, is that while you might typical-ly have to hop on a 5ight to Narita to 1nd some authentic Taiyaki, Yatsuhashi or any other Wagashi (Japanese con-fectionery), boxes of mochi ice cream can be purchased in scores at your local Trader Joes! So the next time you get your hands on one of these treats, eat up and remember to celebrate the life of Frances Hashimoto, mother of our be-loved mochi ice cream.

Danielle SternStaff Writer

!e six "avors of colorful mochi ice cream make a rainbow. Photo courtesy of Kimonobox.com

Edible Asia

When its so cold that I can see the steam seeping out of my mouth as I exhale in the con1nes of my apartment, my only source of warmth being my overheating laptop, I like to eat my stale Krispy Kreme doughnut from Char Mar and think back to better times. And by better times, I mean the times when I was this cold, but in Korea and in front of a street food stall that was selling my favorite winter street foods. Somehow, eating those delicacies always helped me ignore the fact that I could no longer feel my lips or 1ngers.

One street food that holds a dear place in my heart is called bbopki. Bbopki is a hard caramel candy made from sugar and a little bit of bak-ing soda that is sold in any metropolitan area in South Korea. It is usually 5at, very brittle, and sometimes fashioned into a sort of lollipop on a stick. While not exactly 1lling, it is some-thing good to get when you are standing at a bus stop or waiting to meet a friend, because it takes time to eat bbopki. It is not the kind of snack that you just mindlessly chow down on. Oh, no. Eating bbopki requires endurance and a certain skill.

2ere is a reason why the snack is called bbopki. 2e word bbopa means to pick out. And imprinted into the brittle caramel are out-lines of shapes, usually a heart or a star. 2e eater is supposed to cut out these little shapes as he or she eats the candy, trying not to break the design. And be warned, this feat is not for the impatient. 2at irritating but delicious snack always manages to break right down the center of the star or heart youre trying to cut out, right when you think youve almost achieved your goal. However, if you manage to successfully break out the imprinted shape, you get anoth-er one on the house as recompense for all your hard e7ort!

Now, technically, bbopki is not considered a street food exclusive to wintertime. However, I always enjoyed eating bbopki in the winter because the sheer pride I felt from getting that free bbopki a4er painstakingly cutting out the shape with my numb 1ngers always seemed to make my otherwise cold day a little warmer. Or, it could have just been heat from my an-ger over the candy not cooperating. But next time youre in Korea and facing ungodly winter weather, try to 1nd the food stands that sell this treat. Its sure to make you happier, or at least warmer from frustration!

Frosty Caramel FrustrationsAlex LeeStaff Writer

Bbopki is a com-mon snack sold in the streetsof any metropolitan area in South Korea. Here, a man makes some bbopki at his food stall by heating up sugar and a little bit of baking soda into the circles of the caramel snack.

!e man presses hearts before the bbopki hardens and becomes brittle. Another popular shape imprinted into bbopkis are stars.

!e goal is to be able to bbopa the imprinted shape. Bringing an unbroken shape back to the food stand will get you another bbopki on the house. Photos courtesy of Bionic-Bites.com

KoreanBeginnerumma, momappa, dadannyung, hiIntermediateSGsoo up, classgwa je, homeworkAdvancedsoo ryum, gather opinionsman mool, every objectgyo tae, coquette or 5irt

JapaneseBeginnerotoshidama, allow-ance parents give kids on Jan. 1chanto, regularly, neatly, properly, carefully, punctu-ally, etc.Intermediateichinen no kee, New Years resolutionoosooji, [the end of year] cleaning [the house]gaman, patienceAdvancedshuukatsu, job huntingkinroo kansha, appre-ciation of labor (11/23 in Japan)

ChineseBeginnerxian1sheng, mister or sirjin3zhang1, nervous, tensesha2, What? (colloquial)Intermediatequ1bie2, di7erence wu2wei4, bland or tastelessnan2guai4, no wonderAdvancedao1tu1, bumpy or unevenkong1xue2lai2feng1, wind from an empty cave;

Words this Week

MilitaryMade in Asia: All the news youre missing

8

Pictures of a ship under construction, identi1ed as the new destroyer class 052D, surfaced at a Chinese naval yard this August.2e estimated year of deployment for Chinas 052D class destroyers is 2014. 2is article lays out what the 052D means for China, cross-straits stability, and the broader implications for the regional balance of power now that more information on the ship is available.

2e 052D class improves on the 052C class currently in service, 1elding a more powerful radar, a 130mm instead of 100mm gun, and a total of 64 vertical launch system cells (used to launch cruise missiles) to the 052Cs 48. 2is allows for greater anti-air coverage, which expands the range of action that PLAN submarines can safely operate in from air-based anti-submarine systems. Two hulls were spotted at China State Shipbuilding Corporations Jiangnan Changxing shipyard, fuelling speculation over the number of 052D ships being simultaneously built. Standard naval building procedure in China involves the construction of one or two hulls followed by testing of the subsystems before further construction, but Chinese military enthu-siasts and Professor James Holmes of the U.S. War Col-lege have reported that up to ten such hulls might be in production at the same time. Mass production of ships is highly cost-e3ective, because workers become familiarized with their tasks and are more e3ective in reproducing the same subsystem multiple times; a RAND report on mass construction in the U.S. navy found that a 10% cost re-duction had been achieved thanks to such techniques. In light of with reports on the mass-manufacture of Chinas Type 022 Fast Attack Cra4, mass production of a ship of such size would signal further improvements in Chinese navy-building capabilities.

2e 1elding of the 052D will not radically alter the cross-straits balance of power. It will, however, force strategic adaptation by other regional powers. Tactically speaking, the 052D out-performs all Taiwanese models of comparable class. Strategically speaking, this should force Taiwans hand, leading them to abandon direct class-to-class competition. Taiwan has already made moves to counter the mainlands naval buildup through the deploy-ment of heavily armed fast attack boats and the 1elding of advanced anti-ship cruise missiles. 2e technical and logistical advantage that the mainland is now demonstrat-ing through military projects such as the 052D will likely

accelerate this trend.Other regional powers- particularly those with con-

5icting naval claims with China such as Vietnam, the Phil-ippines, and Japan- will need to counter the 052Ds capa-bilities. Japan in particular will not be le4 behind, having 40 5eet escorts (guided missile destroyers and frigates) to Chinas 50; Japans Kongo class and the Atago class guided missile destroyers in particular sport high level technology. Vietnam will rely on lighter ships, such as its two Gepard-3

frigates and its small but well-equipped Project-12418/Ta-rantul-5 missile frigates. 2e Philippines Navy will have the most trouble; while they have expressed strong inter-est in overhauling their naval forces, it remains to be seen what they will be able to acquire in the coming years. In summary, the regions ability to cope with a rising Chinese navy will depend in part on the magnitude of Chinas abili-ty to simultaneously produce 052D class ships.

Current relations between Cambodia and 2ailand are rather tense. 2ere have been multiple border clash-es- notably in 2011- which caused deaths on both sides. 2e balance of power between both countries, then, is worth studying closely. Cambodias 2010 order of 50 to 60 T-55 main battle tanks from Serbia will, by now, have had the time to be incorporated into its 1ghting force. 2ese were supposed to be supplemented by many more, in the words of Koy Kuong, the foreign minis-try spokesman who discussed the deal back in 2010, al-though no purchases have so far been announced. What exactly do these old Soviet tanks bring to the table, and would additional units really alter the simmering con-5ict?

2e T-55 is a development of the Soviet T-54, and was produced by the thousands during the 1950s. It mounts a 100mm main cannon and sports two 7.62mm machine guns as secondary armament. As for range, its diesel powerplant will keep it running for over 700km when the conditions are right. Like most Soviet equip-ment, it is rugged and designed to be operated e3ec-tively by relatively poorly trained soldiers; training new T-55 crews should therefore not be an issue for the Roy-al Cambodian Army, especially if one considers the fact that T-55s are very similar to the Chinese Type 59 tanks that Cambodia already operates. 2ese T-55s have been given modern ammunition and 1re control technology by the Serbian military, and there is a possibility that they have been out1tted with explosive reactive armor, which can signi1cantly increase a tanks survivability. When compared to the rest of Cambodias rather out-dated armor corps, it seems as though the T-55s could give the Cambodians much needed strength.

2ese speci1cations are only good, however, when compared to the rest of Cambodias military. 2ai-land is far better equipped when it comes to armored warfare. 2ey have far more modern tanks, including over 150 American M60 Pattons. 2e M60 has proven to be incredibly e3ective against T-55s in the past; so e3ective, in fact, that the Soviets designed the T-72 to combat the M60. Simply put, the M60 can out-shoot,

out-maneuver, and out-survive a numerically superior force of T-55s. Further pushing the balance of power in 2ailands favour, the latter has ordered 40 T-84U tanks, with the possibility of ordering upwards of 150 more. If the M60 is bad news for Cambodian armor, the T-84 is catastrophic. It packs a powerful 125mm main gun, next-generation explosive reactive armor, and thor-oughly modern 1re control and optics systems. 2ose are the sort of options a T-55 operator can only dream about.

So while the order of T-55s does strengthen Cam-bodias military, it really does not do much to combat the numerical or technological advantage of 2ailand. One could argue that the terrain in southeast Asia does not lend itself to armored warfare, so open battles pit-ting both tanks against one another would be uncom-mon. 2is, while true to some extent, ends up tipping the scales further in 2ailands favor. 2e T-55 was de-signed around the Soviet strategy of quantity over qual-ity, and in large formations the T-55 would be a force to be reckoned with. Cambodia does not have nearly enough T-55s to overcome 2ailands quality, nor the

Philippe MaugerMilitary Editor

Jack HayworthStaff Writier

New class of destroyers raise naval stakes

Rumble in the jungle: New Cambodian tanks pose little threat Editor-In-Chief

Lauren Bovard

Managing EditorJade Hsiao

Editorial DirectorJennifer Hui

Chief-of-Sta!Ellie Hong

News EditorLiz Chen

Politics EditorPaxon Wallace

Economics EditorDiana Xu

Business Editor & FundraisingAri Multak

Oddities EditorLauren Bovard

Assistant Oddities EditorJuli Gittelman

EAS Corner Ed-itorJade Hsiao

Military EditorPhillip Mauger

Layout EditorKatie Botto

Assistant Layout EditorAngela Pyo

Timeline EditorVictoria Lee

Sta! WritersHenry ChenTian Tian ChenChristopher Con-nellyJuli GittelmanJack HayworthLibba KingAlex LeeTae Kyoung LeeAlexandre Ma-son-SharmaKlay McGuireAaron NicholsonMizuha OgawaHye Yeon ParkAngela PyoQueenie QiuHana RudolfShawn ShinDanielle SternKenko UeyamaSean WhiteLizzy YangChiaki YamagamiEthan WooKatherine Wu

Treasurer & Speaker Series ChairLauren Yeh

Sta!

Photo courtesy of Alessandra Felloni

T-55 or Type 59 tank from the recently ended cambodian civil war at the war museum in Siam Reap, Cambodia. courtesy of www.wikimedi-acommons.org via Kyle Simound.

EAS CornerMade in Asia: All the news youre missing

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Works CitedMade in Asia: All the news youre missing

NEWSIn order of appearance:

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Kim, Young-jin, NK Missile Parts Seized in Busan En Route to Syria, Korea Times, November 14, 2012, ac-cessed November 26, 2012.

Shengnan, Zhao. China Opposes Support for Dalai Lama. China Daily, November 14, 2012. Accessed No-vember 20, 2012.

C.J., Henderson. China Lodges Protest over Dalai Lamas Japan Visit. China Daily, November 6, 2012. Accessed November 20, 2012.

Millward, Steven. Qihoos New Search Engine Surges to 10% Share in China, Google Drops to 4th Place. TechinA-sia, November 5, 2012. Accessed November 26, 2012.

Millward, Steven. Google Maps App is Lost in China, Loses Half Market Share in Q3. TechinAsia, November 5, 2012. Accessed November 26, 2012.

Levy, Steven. Inside Googles China Misfortune, excerp-ted from In the Plex, Steven Levy, reprinted in CNNMo-ney by permission of Simon & Schuster Inc., April 15, 2011. Accessed November 26, 2012. Kyodo News. Hoshide Back on Earth A1er Record Spacewalks. 2e Japan Times, November 20, 2012. Ac-cessed November 26, 2012.

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Wall, Mike. Astronauts Begin Spacewalk to Fix Space Station Cooling System. Space.com, November 1, 2012. Accessed November 26, 2012.

Moe,Wai. Obama Receives Warm Welcome in Myan-mar. 2e New York Times, November 19, 2012. Accessed November 25, 2012.

Spetalnick, Matt, and Je3 Mason. Obama to balance praise, pressure in historic Myanmar Visit. Reuters, No-vember 18, 2012. Accessed November 26, 2012.

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POLITICSConservative candidates elected in South Korea and Japan; bilateral relationship at a low point(In order of appearance)

Alpert, Emily. Japan Sends Envoy to South Korea in Bid to Dial Down Tensions. Los Angeles Times, January 4, 2013. Accessed January 4, 2013.

Martin Fackler. Ex-Premier is Chosen to Govern Japan Again. 2e New York Times, December 26, 2012. Accessed January 4, 2012.

Shinzo Abe. 2e New York Times, December 27, 2012. Accessed January 4, 2012.

Fackler, Martin. Japanese Politicians Visit to Shrine Raises Worries. 2e New York Times, October 17, 2012. Accessed January 4, 2012.

Chinese Press Urges Hawk Abe to So1en Stand on Foreign Policy. BBC News, December 27, 2012. Accessed January 4, 2013.

Demick, Barbara. Japanese Leader Wants to Revisit Apology for Wartime Su3ering. Los Angeles Times, December 31, 2012. Accessed January 4, 2012.

Sang-Hun, Choe. Ex-Dictators Daughter Elected Pre-sident as South Korea Rejects Sharp Change. December 19, 2012. Accessed January 4, 2012.

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Powel, Bill. Why South Korea is in an Uproar over Intelligence Sharing with Japan. Time World, July 2, 2012. Accessed January 4, 2013.

Friendship trumps human rights concerns in US-Cambodia SummitIn order of appearance:

Asean Summit 2012. Ministry of Foreign A3airs and International Cooperation of Cambodia. Accessed No-vember 18, 2012,

Whitlock, Craig. U.S. expands counterterrorism assis-tance in Cambodia in spite of human rights concerns. Washington Post, November 15, 2012. Accessed November 18, 2012.

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Rainsy, Sam. Obama Should Stay Away From Cam-bodia. New York Times Op-Ed, October 30, 2012. Accessed November 18, 2012.

Kinnock, Gladys. Cambodias Brazen UN Bid. New York Times Op-Ed, October 16, 2012. Accessed November 18, 2012.

Human Rights in Cambodia. Human Rights Watch, last updated November 18, 2012. Accessed November 18, 2012.

Japan: shale gas, disasters, and upcoming elections

2 Parties to Merge with Governors Anti-Nuclear Group; Your Party Snubs Ishihara. 2e Asahi Shimbun. 27 Nov. 2012. Web. URL: http://ajw.asahi.com/article/behind_news/politics/AJ 201211270050

Aoyama, Naoatsu and Dai Narusawa. 2e U.S. to Help meet Japans Gas Needs. 2e Asahi Shimbun. 25 Nov. 2012. Web. URL: http://ajw.asahi.com/article/globe/feature/shale/ AJ201211250025

Goto, Shihoko. Japans Post-Fukushima Nuclear Energy Conundrum. World Politics Review. 13 Nov. 2012. Web. URL: http://www.worldpoliticsreview.com/articles/12 493/japans-post-fukushima-nuclear-ener-gy-conundrum

Japans Ruling Party to Phase Out Nuclear Power. Austra-lia Network News. 27 Nov. 2012. Web. URL: http://www.abc.net.au/news/2012-11-28/an-japan-nuclear/4395782

Reynolds, Isabel and Takashi Hirokawa. Japans Opposi-tion Hosoda Calls for Restarting Nuclear Reactors. Bloomberg Businessweek. 26 Nov. 2012. Web. URL: http://www. businessweek.com/news/2012-11-26/japan-opposition-s-ho-soda-calls-for-restarting-nuclear-reactors

Sieg, Linda. Analysis: Japan Politics Could Fragment Further on Road to Two-Party System. Reuters. 18 Nov. 2012. Web. URL: http://www.reuters.com/article/2012/ 11/18/us-japan-election-future-idUS-BRE8AH0IS20121118

Small Parties Join Push for Nuclear-Free Society. Yomiu-ri Shimbun. 27 Nov. 2012. Web. URL: http://www.yomiuri.co.jp/dy/national/T121126004153.htm.

Survey: LDP Remains the Most Popular Party / Ishin no Kai 2nd, while DPJ Sips to 3rd. Yomiuri Shimbun. 17 Nov. 2012. Web. URL: http://www.yomiuri.co.jp/dy/national/ T121126004155.htm

Zolbert, Alex and Yoko Wakatsuki. Japan Dissolves Lower House of Parliament, Sets Stage for Elections. CNN. 17 Nov. 2012. Web. URL: http://www.cnn.com/2012/11/16/world/asia/ japan-politics/index.html

BUSINESSPlastic chemicals found in Chinese liquor, industry feels negative e!ects Wong, Stephanie (ed.). Liquor-maker JiuGuiJiu Apo-logizes for Chemicals in Drink. Bloomberg News, November 22, 2012.

Boey, Darren (ed.). Chinas Stocks Decline Before Pro4ts Data; JuiGuiJiu Slumps. Bloomberg News, November 26, 2012.

Vinicy Chan. China Liquor-maker JiuGuiJiu Declines 10 percent: Shenzhen Mover. Bloomberg News, November 23, 2012.

Anti-dumping duties on lighters li"ed in ChinaEU to cancel anti-dumping duties on Chinese lighters. Xinhua Net News, November 28, 2012.

Global Times. EU may li1 duty on Chinese lighters. Guangming Online, November 28, 2012.

EU stops anti-dumping duties on Chinese lighters. China Daily, November 29, 2012.

China urges EU to cancel anti-dumping duty on Chinese-made lighters. Morning Whistle, November 30, 2012.

Anti-Japanese sentiment creates trouble for Toyota sales2e Province, Toyota, Honda vie to regain sales in China. Bloomberg, November 26, 2012.

Murphy, Colum. Japan Car Gloom Li1s in China. 2e

Wall Street Journal, November 22, 2012. Accessed No-vember 27, 2012.

China Daily, Toyota exec: Closer long-term relationship. Gasgoo Automotive News, November 27, 2012. Accessed November 27, 2012.

Waldmeir, Patti. Japanese carmakers: staying the course in China, come what may. Financial Times, sec. Beyondbrics, November 23, 2012.

ECONOMICSChinas politically fueled economic transitionAP. China exports accelerate in October, imports weak - Businessweek. Businessweek - Business News, Stock Market & Financial Advice. http://www.businessweek.com/ap/2012-11-09/chinas-october-export-growth-accelerates-to-11-dot-6-percent-imports-weak-at-2-dot-4-percent (accessed November 27, 2012).

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Ruan, Victoria. Chinese exports on edge but not likely to tumble | South China Morning Post. Home | South China Morning Post. http://www.scmp.com/business/economy/article/1086277/chinese-exports-edge-not-likely-tumble (accessed November 27, 2012).

Xuequan, Mu. Chinas vice premier urges accelerating industrialization, urbanization. Xinhua. http://news.xin-huanet.com/english2010/china/2010-10/11/c_13550478.htm (accessed November 27, 2012).

Rise in shadow banking as China favours private investmentChina is plagued by shadowing banks amid deteriorating economy. MorningWhistle. N.p., n.d. Web. 22Nov. 2012.

China Private Funds Bolster Local Government Projects, Raise Risks. 2e Wall Street Journal Online. N.p., n.d. Web. 22 Nov. 2012. .

Chinese local governments invite private investment in monopoly industries. MorningWhistle. N.p., n.d. Web. 22 Nov. 2012.

Easley, Jonathan. Romney touts foreign aid overhaul in appearance at Clinton Global Initiative. 2e Hill. N.p., n.d. Web. 22 Nov. 2012. .

Govt turns to private capital. Global Times. N.p., n.d. Web. 22 Nov. 2012.

McIntrye, Douglas A. A Stimulus Package 2at Works: Chinas 7.9% GDP Growth. 24/7 Wall St.. N.p., n.d. Web. 22 Nov.2012. .

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2e Flight of the Renminbi 2e Economist. 27 Oct. 2012. Web. 3 Dec. 2012.

ODDITIESNorth Korea continues to print perfect USD counterfeitsRooney, Ben. Warning: Counterfeit Dollars from N. Korea. CNN Money, June 18, 2009.

Mihm, Stephen. No Ordinary Counterfeit. 2e New York Times, July 23, 2006.

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Brown, Greg. Expert: North Korea can Flood World With Fake U.S. Cash. Money News, February 28, 2012.

Rose, David. North Koreas Dollar Store. Vanity Fair, August 5, 2009.

MILITARYNew class of destroyers raise naval stakes(In order of appearance)

Cole, J. Michael. China Building New Type 052D Guided Missile Destroyer. Taipei Times, August 29, 2012. Ac-cessed November 16, 2012.

China Building New Type 052D Destroyer. China.org.cn, August 31, 2012. Accessed November 16, 2012.

Feng. 052C and Beyond. July 21, 2012. Accessed November 16, 2012.

Feng. 2e Emergence of 052D. September 1, 2012. Accessed November 16, 2012.

Fisher, Richard D. Jr. Chinas Military Modernization: Building for Regional and